March Getting Out of Debt - Page 4 - Mothering Forums

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#91 of 97 Old 03-23-2011, 03:45 PM
 
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Congrats again on BS4 Turquesa!

 

We had a Roth IRA and went through an investment advisor to set it up (Edward Jones).  When we were able to fund it we did so through an automatic monthly withdrawal from our checking account and then had the option to make lump-sum deposits as well.  As far as asset allocation, since it was so small at the start we just put it into one fund.  We only funded it for a very short time ($400 in deposits, ea) and then stopped to do the debt snowball.  We don't qualify for a Roth anymore so we cashed it out and put the lump sum on our debt last year.  Since it was post-tax contributions, we only paid tax on the growth (I think a total of $60 in growth between the two so only a few dollars in tax).

 

Here's a quick primer on the Roth - http://www.daveramsey.com/article/roth-ira-101/lifeandmoney_investing/

 

My husband's company added a Roth 401k option this year and so we'll be taking advantage of that once we get to BS4!  :)

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#92 of 97 Old 03-28-2011, 02:19 PM
 
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Just checking in...good to see so much good news.

 

Just put another $1400 into savings....$1400 more next month and I've hit my 3 month FFEF goal of $15,000 before my maternity leave!

 

YIPEEEE!

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#93 of 97 Old 03-28-2011, 04:15 PM
 
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Awesome, Sarah!! 

 

Here's hoping there are no surprises between now and then. That's gotta be record time for BS3!

 

We're moving out from my parents' house and into our 1BR apt tonight (down from a 3BR house to a 2BR condo, to this- hello, simplifying!)

 

 


Laurie, wife to guitar.gifDH (Aug/04), mom tobikenew.gifDS1 (Nov/05) and bfinfant.gifDS2 (June/12).

 

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#94 of 97 Old 03-29-2011, 11:57 AM - Thread Starter
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imamomx2, I think the key to not opening up the spending once you're in bs3/4 is to make sure you automate the savings just like its a bs2 debt. It is, in fact, a debt, just one that you owe yourself. We did a few planned splurges but had the automated payment ready that next month so we didn't see the money in the bank and blow it.
 

beansmama, you're doing great on that ffef. You're over half way already!


MyTwoAs, congrats! Welcome to bs3.


Ragana, yay on the tax refund and sending it to debt. I'm hoping when we file, we don't owe. I'd love to use that money we've put aside for home renos.
 

kitteh, glad to see you posting. You sound like you're doing well with the debt repayment so once you've found a new job, you'll rebound quickly.


chely7425, great attitude on not wanting to put the move on your cc.


eirual, how is the new apt?  I hope the tax refund is yours to keep, that would be awesome.


turquesa, congrats on reaching bs4. I'm Canadian so no help on the roth stuff but I like the advice on getrichslowly and thesimpledollar

 so maybe check them for how to get started? We went into the bank to set up our rrsps (Canadian retirement). We do direct deposit and have a mutual fund mix. I'm not the biggest fan of Dave's investment advice I have to admit
 

sarah1122, great job building up the ffef.

 

We're about to file our taxes, all the prep work is done and the file is en route to the accountant. I'm hoping we don't owe but ready if we do. I spent too much on spring/summer kids programs/camps but a bit of belt tightening should help.


 

 

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#95 of 97 Old 03-29-2011, 07:15 PM
 
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Hi,

This thread is so fascinating!  I've heard of David Ramsey, but never really looked into his method.  It sounds very similar to what I have been doing, which has worked out really well for us.  I just ran the numbers, and we have paid off $11,265 in cc debt since Jan '10 on a single income of roughly $35,000 gross (very gross pinktongue.gif).  Now, about half of that came from last year's tax refund, which gave us the jump start by paying off two cc, and using those payments to add to the next targeted card.  I didn't always pay off the smallest balance cards first, but sort of did my own assessment including the minimum payments and interest rates when deciding which card I'd pay off next.  So, I might hold onto a smaller balance card if I could free up a larger minimum payment to be able to use on the next, etc.  We also ran into an unexpected expense when we discovered our surprise pregnancy was TWINS! and were able to pay our midwife fully in cash, as well as some necessary related expenses (new infant car seats...).

 

I have a few questions for the experienced here:

 

1.  We have one card left, with a $4400 balance, and $4000 left from this years' refund.  I'd like to keep $1000 for savings.  We are also fixing up our house to hopefully be able to put on the market so that we can move closer to dh's work/school.  He won't have time to work on the house until summer when he is off of school.  I'm nervous about the money just sitting there, but if I put $3000 towards the card, I'm not certain we will fully pay off the card by June and be able to buy supplies with the extra money from the freed up payments.  We could probably get by with $500 in savings, putting $3500 to the card which would allow me to pay off the thing in time.  Then I'd refund our savings starting in Aug when the fall semester starts.  What would you do?

 

2.  Which of DR's books would you start with?  Being so close to having eliminated all this CC debt, I am now starting to think about how much we should be saving.  I'm excited to see a plan to work from rather than figure it out by myself!

 

3.  I don't really have a budget.  Dh's income fluctuates with him being on an hourly plus commission wage.  Every check is kind of a surprise, sometimes good, sometimes not. LOL  He delivers water and we should be moving from the low commission time of year into a higher commission, provided he doesn't lose more accounts in this economy.  I've done amazingly well without a strict budget, but I need some help to work one out.  I'd like to be able to know that school supplies and clothes for the kids are not going to be big hits to the finances, etc.  I've been tracking our expenses with our credit union's finance software, which does include a budgeting tool, but every budget we've tried to work out in the past has been a massive fail.  Where do I start?  

 

I am so addicted to all the new little $0 balances in my accounts.  Nice to find a group of people who understand!!  We don't have a whole lot of wiggle room, but finally we are spending less than we make, and soon will be saving!  Woohoo.


Mom to eight!!  Our twin girls arrived 3-3-2011.

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#96 of 97 Old 03-31-2011, 03:44 PM
 
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Quote:

Originally Posted by mylilmonkeys

We have one card left, with a $4400 balance, and $4000 left from this years' refund.  I'd like to keep $1000 for savings.  We are also fixing up our house to hopefully be able to put on the market so that we can move closer to dh's work/school.  He won't have time to work on the house until summer when he is off of school.  I'm nervous about the money just sitting there, but if I put $3000 towards the card, I'm not certain we will fully pay off the card by June and be able to buy supplies with the extra money from the freed up payments.  We could probably get by with $500 in savings, putting $3500 to the card which would allow me to pay off the thing in time.  Then I'd refund our savings starting in Aug when the fall semester starts.  What would you do?

What would *I* do?  I’d stick with the 1000 as the emergency fund.  But I’m personally not much of a gambler.  Chances are low that you’ll have a financial emergency between now and August.  But there’s still a chance.  If you did need more than 500 before August, assuming that going in to further debt would be self-defeating and a non-option, what would you do?

 

Quote:
Originally Posted by mylilmonkeys View Post

 

 

2.  Which of DR's books would you start with?  Being so close to having eliminated all this CC debt, I am now starting to think about how much we should be saving.  I'm excited to see a plan to work from rather than figure it out by myself!

 


Total Money Makeover.  thumb.gif

 

 

Quote:

3.  I don't really have a budget.  Dh's income fluctuates with him being on an hourly plus commission wage.  Every check is kind of a surprise, sometimes good, sometimes not. LOL  He delivers water and we should be moving from the low commission time of year into a higher commission, provided he doesn't lose more accounts in this economy.  I've done amazingly well without a strict budget, but I need some help to work one out.  I'd like to be able to know that school supplies and clothes for the kids are not going to be big hits to the finances, etc.  I've been tracking our expenses with our credit union's finance software, which does include a budgeting tool, but every budget we've tried to work out in the past has been a massive fail.  Where do I start?  

 

 

DR has a budgeting sheet for those with irregular income.

 

Hopefully that helps.

 

Welcome aboard!  smile.gif


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#97 of 97 Old 04-01-2011, 09:27 AM
 
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Quote:
Originally Posted by Turquesa View Post

 

 

What would *I* do?  I’d stick with the 1000 as the emergency fund.  But I’m personally not much of a gambler.  Chances are low that you’ll have a financial emergency between now and August.  But there’s still a chance.  If you did need more than 500 before August, assuming that going in to further debt would be self-defeating and a non-option, what would you do?

 


That is an excellent question!  I would only pay the minimum on the remaining card, which should be quite small as the card minimum on this card is calculated according to the balance remaining, and skip the second payment I have been making in the middle of the month.  Those combined would almost make up the difference, roughly $400-500 depending on what dh actually brings home.  The rest would come from what's left of my husband's paycheck for discretionary spending, whatever remains of his financial aid, and what he has in his "blood money" account.  I don't think I'll wait until August to start building the savings account, but what I put in it will vary allowing us to finish buying the materials we need for the house in the meantime.  I just paid bills this morning, and actually had already transferred the $3500 before reading your post.  

 

Thank you for the link to the budgeting guide!  I've been looking at the area libraries for Ramsey's books, and they either don't have them or are all checked out.  Dh might be able to get to the bookstore to purchase a copy today.  Thanks for the recommendation. 

 


Mom to eight!!  Our twin girls arrived 3-3-2011.

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