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Dumping Debt and Building Wealth w/Dave Ramsey *October* - Page 5

post #81 of 130
Quote:
Originally Posted by llamalluv View Post
Well...your BS2's are out of order.

Once you get your $1,000 in the bank, you just work down that list, and you will start knocking them out.

My husband and I started our marriage with a combined debt of $59737. We are now down to the last $20K or so. We've been married less than 2 years.
They are in the order we will pay them off... I think I mentioned in my OP, but we have them in the order that makes the most sense for us based on what they are and what it'll mean for us to have them paid off. I realized they aren't smallest to highest (or even highest to lowest interest)... but it's the order we need to pay them off in.

Congratulations to you and your DH. That gives me such hope :
post #82 of 130
Quote:
Originally Posted by llamalluv View Post
That's some serious shopping!
Perhaps I should say approximately instead of approaching... I should specify - I haven't charged anything on the card in over 3 years. What is on there are some other bills that I didn't have cash for and didn't want sent to collections. If the interest rate on it were reasonable and the finance charges weren't huge, it would be below $2500 with what I've paid in the last year alone.

I've been slowly chipping away at it for a long time and really want to see it go bye-bye.
post #83 of 130
Sent some more money to my FFEF, I'm at about 3 months now, hoping to get to the full 6 months by X-mas but I think it will be mid January in all honestly.

Working the plan, working the plan.
post #84 of 130
Quote:
Originally Posted by Dmitrizmom View Post
Perhaps I should say approximately instead of approaching... I should specify - I haven't charged anything on the card in over 3 years. What is on there are some other bills that I didn't have cash for and didn't want sent to collections. If the interest rate on it were reasonable and the finance charges weren't huge, it would be below $2500 with what I've paid in the last year alone.

I've been slowly chipping away at it for a long time and really want to see it go bye-bye.
Is is a Sears card? Or something else? I thought you said it was a Sears card.
post #85 of 130
Quote:
Originally Posted by llamalluv View Post
Is is a Sears card? Or something else? I thought you said it was a Sears card.
It's a Sears Mastercard. Can be used anywhere, not just at Sears.
post #86 of 130
We finished BS2 a few weeks ago, woohoo!

I'm taking Oct. off from the plan, though we're not going crazy spending or anything. Just a month to reflect and study our budget and make a real plan for when we will finish BS3.

We're going to go for 3 mo, then a downpayment for a house, then the other 3 mo.
post #87 of 130
Quote:
Originally Posted by p1gg1e View Post
BS1 $50/$1000

I now have DH FULLY on board :
Bs1: $100/$1000
BS2: Approx $20,000 of debt ( including car)

Called about my student loan and found I only owed 74.00...so told my parents and they paid 60 :...so 15 is all we had to pay and now its paid off...so $50 bucks a month!!
post #88 of 130
Quote:
Originally Posted by lisa2976 View Post
We finished BS2 a few weeks ago, woohoo!

I'm taking Oct. off from the plan, though we're not going crazy spending or anything. Just a month to reflect and study our budget and make a real plan for when we will finish BS3.

We're going to go for 3 mo, then a downpayment for a house, then the other 3 mo.
Thats a great idea. I know that Dave says to save for kids college before a home but I think that having a home paid for helps you be able to pay for your kids education
post #89 of 130
For us, it's the way to go. We can afford to cashflow college if needed, but we're renting in a buyers market, and we feel we should be taking advantage of that. Our kids are still really tiny too, which works to our advantage.

TBH we'll probably go crazy working on the FFEF and then use most of it when the right house comes along, and start back at BS3. We're already doing BS4, so it'll even out in the end.
post #90 of 130
Hi mamas, I've been sulking a bit over our very expensive visit from Murphy. But I'm back to report that we've paid off the entire $1300 in cash and still have $300 left in our EF! It is a good feeling to have been able to take on our first murphy with cash but it really sucked to have to hand over so much hard-earned money. So now we're back at BS1 trying to build our EF back up. We're feeling back on track and motivated again. Hopefully Murphy stays away for a long time now!
post #91 of 130
October 1 debt numbers:
Mastercard 2...3,216.12
Student Ln 1...2,913.13
Student Ln 2...6,723.58
Auto Loan.......9,456.51
-----------------------
Balance......$22,309.34

October 20 debt numbers:
Mastercard 2...3,066.12
Student Ln 1...2,820.25
Student Ln 2...6,717.83
Auto Loan.......9,071.51
-----------------------
Balance......$21,675.21

Goal: Pay off $1500. To date: -$634.13.....................$865.87 to go
post #92 of 130
That is good news Jillian, glad Murphy was kicked to the curb without new debt. You'll have your bef again quick.

lisa2976, that's our plan too. 3 months ffef then hit the house fund hard then another 3 months ffef.
post #93 of 130
Quote:
Originally Posted by p1gg1e View Post
Thats a great idea. I know that Dave says to save for kids college before a home but I think that having a home paid for helps you be able to pay for your kids education
I thought saving for a home downpayment was step 3b (or 4a?). Am I missing something?

I don't have an update; just waiting for pay day to shuffle money into our FFEF.
post #94 of 130
Since the house issue has been brought up--is it awful if we just have no desire to buy a house? I know we should from a investment point of view, but we haven't found anywhere we want to settle down yet. *sigh* We will inherit property though, so will that count?
post #95 of 130
Well, we were plugging along on BS2. About 8k down, and 27k to go. But we just got hit by Murphy to the tune of $700 for a new radiator and water pump for the truck. I'm just thankful it's coming out of the EF and not going on CCs like we used to have to do. That's what it's there for right? But it sure is painful to dip into it. *sigh* Somebody pass me a pint...of cookie dough ice cream : :
post #96 of 130
I have a question if you all don't mind. (I do have Dave Ramsey's book on hold at the library, but since seeing him on Maxed Out, and reading through his website, I have begun to crunch numbers.) On BabyStep 4 regarding retirement, does he mean to invest 15% of your household income each year, or one time only? In other words, do we aim to make sure we get 15% of our income in retirement, and once we do that, then move onto step 5? Or each year are we supposed to be making sure we get 15% invested, and on top of that find extra money to fund college, pay off the house, and build wealth? I'm confused. Dh already contributes each month to his retirement (he's a teacher, so some is automatically done through the state, plus he has a 403b), but it's a whole bunch yet. (And actually, after the last month, we've lost quite a bit.) If you look at the amount we currently have invested, it would be right now 15% of our current household income. But, is Dave Ramsey's goal for you to make sure that you invest 15% every year into retirement? (I do hope my question makes sense. )
post #97 of 130
I imagine it's an each-year kind of thing. I haven't read the book, but it doesn't really make sense to just do it once, does it?
post #98 of 130
I've always thought of it as a 15% of each check/income kind of thing. So that once you get used to putting 15% in to an account, then you can go on to the next steps, but maybe someone else has a better idea?
post #99 of 130
Quote:
Originally Posted by MyLittleWonders View Post
On BabyStep 4 regarding retirement, does he mean to invest 15% of your household income each year, or one time only?
Most retirement planners recommend saving at least 10% of your income per year for retirement. I think DR's recommendation is right in line with what others say.

Like tuppence said, once you get used to putting 15% away you can move on. It may take a while to get up to 15%, but you can do it gradually.
post #100 of 130
Thread Starter 
Quote:
Originally Posted by tuppence View Post
Since the house issue has been brought up--is it awful if we just have no desire to buy a house? I know we should from a investment point of view, but we haven't found anywhere we want to settle down yet. *sigh* We will inherit property though, so will that count?
DH and have strongly resisted buying a house. We only want to buy ONE house, and we're not sure where we want to end up, so we're waiting.
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