Getting out of debt in MARCH! - Mothering Forums
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Frugality & Finances > Getting out of debt in MARCH!
eirual's Avatar eirual 01:44 PM 03-05-2012

Do you want to get out of debt? Start living on a budget? Be able to start saving? Then this is the thread for you! Some of us use Dave Ramsey's method but please join us even if you're following someone else/your own plan. All are welcome!

 

Here's DR's plan:

Pre-Step 1: Get current on your debts and do a budget
0.1 No new borrowing.
0.2 Talk with spouse and get him/her on the same page as you concerning finances.
0.3 Do a written budget
0.4 Temporarily stop all retirement contributions
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing)
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF.
0.8 Get current on ALL bills

BS1 $1,000 to start an Emergency Fund
1.1 Chop up/freeze CC's (You have an EF now)
1.2 Get Health insurance NOW if in the US
1.3 Get Life insurance NOW if you have considerable debt/your family couldn't make it financially if you died.
1.4 Amputate cars that you can't pay off within 24 months

BS2 Pay off all debt using the Debt Snowball
2.0 Do the debt snowball, paying all your debts from lowest BALANCE to highest.

BS3 Three to six months of expenses in savings
3.1 Start car replacement fund
3.2 Save up 20% for home purchase OR pay down existing mortgage to the point you can drop PMI.
3.3 Start furniture or other non-essential stuff replacement fund

BS4 Invest 15 percent of household income for retirement

BS5 College funding for children

BS6 Pay off home early

BS7 Build wealth and give! Invest in mutual funds and real estate

Here's the link to Dave Ramsey's website: http://www.daveramsey.com or if you want a good DR discussion forum, http://www.llnoe.com is good but hardcore. Gail vax Oxlade's Til Debt do Us Part is great tv show, very motivating. Her website is: http://gailvazoxlade.com/blog Others like Suze Orman or Mary Hunt, really doesn't matter whose method you use, just start the process to getting out of debt

 

Welcome.gif



eirual's Avatar eirual 01:50 PM 03-05-2012

Sorry I'm late posting March's thread...I've been too busy/stressed breaking all the DR rules nono.gif.

 

 


mylilmonkeys's Avatar mylilmonkeys 05:02 PM 03-05-2012

Subbing.  We're back to re-establishing our emergency fund since having a few extra expenses after the purchase of our new vehicle.  There were a few maintenance issues we needed to fix, and ate up most of our fund.  My plan is to save $600 a month which is split between our EF and sinking funds.  It is not a good feeling to see the EF so low right now.  EEK!


Contrariety's Avatar Contrariety 05:40 PM 03-05-2012

Ooooo! Me!  I seem to join this thread once or twice a year.  Hopefully it will stick this time. 

 

DH and I have about $4000 in an account that we are saving incase he can't work through student teaching next year.  I am hoping to add at least $2000 more to that account by December.  We have $300 in our base emergency fund which should be up to $1000 in April.  Additionally, we will hopefully be able to start making double payments on our car loan, and I am hoping to put an extra $1500 toward that this year.

 

I WOULD be following DR's plan if it weren't for the unknown of DH's student teaching. We are pretty sure he will be able to keep his job, but just drop down some hours while student teaching, but we can't bank on it, so we have to sock away money instead. Hopefully he will be able to work enough to pay the bills and we will be able to apply that savings to the car and get it paid off. 

 

THEN it's student loan payoff time and save up for a house time.  Someday we'll get there...

 

So far this month, I put $15 toward the EF.  Not much, but honestly, it's HARDER to put small amounts in savings than large amounts for us, so it was really huge to actually save that $15 instead of belittling the amount and grabbing a burger for dinner instead.


lilacvioletiris's Avatar lilacvioletiris 04:07 AM 03-06-2012

Contrariety, I think you better plan on him not working.  When I student taught, my university had us sign an agreement requiring me (and all other student teachers) not to work during the student teaching period (along with all the things required to do student teaching well).  You should be able to get that information from his department.  I know it seriously sucked for me back then because I had a nice salaried job at the time working as a lab assistant.  Good luck finding out what you will need to do next.

 

AFM, the wash machine won't start.  I think the little electronic panel has shorted out.  I go to push a button to pick a cycle and press start and nothing.  $$$ coming out of EF.  Ugh.

 

Then there is the mortgage escrow shortage of a couple hundred dollars.  I guess the city upped its taxes this last year.  Thankful for our EF, just wishing we didn't have to use it.


Contrariety's Avatar Contrariety 02:00 PM 03-06-2012

He has talked about it with some of his advisors, and certainly they don't recommend working full time, but none have mentioned being required NOT to work at all.  We live in a *very* family oriented community where the majority of students have families to support, so I would be surprised about any such requirement.  But I will have him look into it, for sure.  He has three weeks of vacation that he is saving for that time.  Student teaching is 10 weeks, so he can take one vacation day a each week, and two vacation days the other weeks.  He will ideally only be working 3 days a week the whole time, and only two days during the week, so work would (hopefully) have minimal impact on school.  He does have a flexible work schedule so he can stay late at school if he has to.  We'll see.  It's a tricky situation because I can't get another job to support us without quitting my current job, and I work my current job in exchange for a place to live AND it's a job I can keep the kids with me all day so we have no childcare costs.... so we're just keeping our fingers crossed that everything will work out. We are planning to live here until we can save up to buy a house so I would be really really sad if it didn't work out.

 

Oh, man if DH can't work that just sucks SO much!  He has worked his job for 5 years, they have awesome benefits, and who knows if he would be able to find a temp job between student teaching ending and real teaching starting.... assuming he's able to find a teaching position, that is! 

 

I do not like uncertainty!


lilacvioletiris's Avatar lilacvioletiris 03:26 PM 03-06-2012

Contrariety, hopefully you can keep your job (because being able to keep your kids with you is priceless!) and your DH is able to work out his during Student Teaching.  When I student taught we had to teach for 16 weeks but 10 weeks were full time instruction but before and after that 10 weeks I taught one class and worked up to teaching all the classes, then weaned off one class at a time until the end of the semester.  I think each state or location is different in their requirements but definitely look into it sooner rather than later.  The unknown in that area might be over the top.  What is your DH training to teach?  I teach high school math, chemistry, and computer science (although right now I just teach math and I am a school counselor).  Keeps me on my toes!


zebra15's Avatar zebra15 03:32 PM 03-06-2012

Just popping in about the student teaching issue... when I student taught it was 'school' hours plus a bit on either end.  I was doing high school so basically  645-3pm M-F for x amount of weeks.  I was able to work another job, the university didn't make us sign anything and I had plenty of 'planning' time built into my schedule (I only had 3 classes each day, reg teachers had 6) so that helped alot.  However I paired with a mentor from he!! and mentally I was about to break and couldn't handle working a 2nd job.  I could barely handle finishing up ST.   I really got off lucky with time to plan during the school day, not having to stay late, come in super early etc. 

I would count on your DH not being able to work during ST.  ST is very stressful and does not leave time for much else.


nstewart's Avatar nstewart 03:50 PM 03-06-2012

Hi all, I'd like to join if I could please.

 

DH and I had previously done Gail's "'till debt do us part" and stuck with it until I went on Mat leave (I'm the primary bread-winner in our home).  I REALLY want to get on track and DH and I have been talking about going back on a strict budget again.  I feel that we are fortunate because we don't have consumer debt besides our car.  We own a home and have a low interest rate on our mortgage.  We don't have credit card debt and we aren't behind on any bills, mortgage payments, etc.  However, we do have a line of credit (secured Home Line, so also a relatively low interest rate at 3%) with around $100G on it (the car is on there, some school debt and our major renovation to our house).  We have two mortgages both with low interest rates (2.5% and 2.9% respectively).  I'd like to pay off the line of credit and get working on the mortgages.  At the same time, I know I need to start investing and saving for retirement.  I have an automatic savings plan at work and so I have money going into a registered account there.  I also have a small RRSP, and I have a pension through work but if I change jobs it doesn't go with me.  DH has NO savings at all for retirement and no benefits at his job at all (health, pension, etc.)

 

So, does anyone have any good resources to suggest in terms of how to balance paying down debt with investing for the future?  Or any advice?  This is especially timely as I just received a small bonus at work and am thinking it might be best spent on an RRSP for DH but I am so tempted to just pay down the LOC.


laohaire's Avatar laohaire 04:18 PM 03-06-2012

nstewart, of course you're welcome!

 

The question you've asked about debt versus investing does not have an easy, straightforward answer. The most common answer you will receive is that you should invest the money and forget about repaying that debt on an accelerated schedule, especially given the low interest rates you have.

 

Personally, I think it's more complicated than that, but even with my anti-debt views I can't say that it's a no-brainer. I am about to begin a long campaign of paying off my mortgage despite all the advice against it, and I feel like making a 5.625% "return" (that's my mortgage rate) is a solid choice. But 3% - I am not completely sure. So instead of giving you any advice, let me just throw out some questions for you to consider:

 

1) If you don't aggressively repay your debt, will you indeed invest that extra money? As opposed to increasing your lifestyle, which is so easy to do? Whatever you choose will be a brilliant move, as long as it's not just expanding your lifestyle and wondering where the money went.

2) Do you feel comfortable that you will be almost guaranteed at least a 3.whatever percent return on your investments? For example, if you've made crappy investment decisions in the past (hey, a lot of people have), you might prefer to stick with an absolute guaranteed 3% "return" via repaying the debt. On the other hand, if you are an investment guru, 3% is probably not too hard to beat. (And that's coming from a person who believes the 10% average return on the stock market is misleading at best).

3) Assuming you put everything into debt repayment, how long will it take you? It's a different prospect to be completely free in, say, 4 years versus 18. If it's a shorter period, I'd be more inclined to do it and be FREEEEE! If it's a longer term, I might be more inclined to hedge my bets.

4) How important is it to you to be debt free? Clearly it's of at least some importance to you or you wouldn't even be thinking about it, but just explore it a bit more. If it's very motivating, I think it's a good move, even at your low rates. Why? Because you will do it faster. Because the rewards are more when you're done (that is, you will really enjoy your security). You will stay motivated and not just drift away and experience Lifestyle Creep. If it's just more of a "wouldn't it be nice if" kind of thing, you might consider investing it instead.


laohaire's Avatar laohaire 04:22 PM 03-06-2012

You know what, I'm an eejit anyway.

 

DR says: Put 15% of your income into retirement.

Then, are you going to save for your kids' college? If yes, do that too.

Then whatever (if anything) is left over goes to the mortgage.

That's what he says, and I can't argue with it. shrug.gif

 

Supposedly I am a Dave Ramsey guru (odd, isn't it? I just read his book once three years ago, shouldn't make me a guru, but I seem to remember his guidelines so I post on these threads answering such questions) but for some reason the way the question was phrased got me off into a sideline.


laohaire's Avatar laohaire 04:25 PM 03-06-2012

Sheepish.gif One more post and I'm DONE!!! I swear!!!

 

BACK THE TRUCK UP.

 

1) Do you have a $1000 emergency fund? If no, start here. If yes...

2) Pay off your car note. Then...

3) Save 3-6 months expenses in some very liquid form.

4) Put 15% income into retirement.

5) Save for kiddo's college but I can't tell you how much because I'm not doing it. Thbbbb.

6) Pay off the LOC and mortgage.

7) Enjoy.


nstewart's Avatar nstewart 04:47 PM 03-06-2012


Quote:
Originally Posted by laohaire View Post

nstewart, of course you're welcome!

 

The question you've asked about debt versus investing does not have an easy, straightforward answer. The most common answer you will receive is that you should invest the money and forget about repaying that debt on an accelerated schedule, especially given the low interest rates you have.

 

Personally, I think it's more complicated than that, but even with my anti-debt views I can't say that it's a no-brainer. I am about to begin a long campaign of paying off my mortgage despite all the advice against it, and I feel like making a 5.625% "return" (that's my mortgage rate) is a solid choice.  I agree, that is a good return.  But 3%, I don't know.  I can probably do better investing than the 3% (following the principles in "The Intelligent Investor" which I am in the process of reading). But 3% - I am not completely sure. So instead of giving you any advice, let me just throw out some questions for you to consider:

 

1) If you don't aggressively repay your debt, will you indeed invest that extra money? As opposed to increasing your lifestyle, which is so easy to do? Whatever you choose will be a brilliant move, as long as it's not just expanding your lifestyle and wondering where the money went.  DH and I are pretty committed to getting "smarter" about money, and my plan is to make either/both automatic so that I don't think about it at all.

2) Do you feel comfortable that you will be almost guaranteed at least a 3.whatever percent return on your investments? For example, if you've made crappy investment decisions in the past (hey, a lot of people have), you might prefer to stick with an absolute guaranteed 3% "return" via repaying the debt. On the other hand, if you are an investment guru, 3% is probably not too hard to beat. (And that's coming from a person who believes the 10% average return on the stock market is misleading at best). I think over a LOONNG term around 6% return is reasonable.  I haven't done much investing before, but I am in the process of doing some learning and am committed to continuing to learn about wise, long term investing and not "speculating" or "trading".

3) Assuming you put everything into debt repayment, how long will it take you? It's a different prospect to be completely free in, say, 4 years versus 18. If it's a shorter period, I'd be more inclined to do it and be FREEEEE! If it's a longer term, I might be more inclined to hedge my bets.  While I don't think 4 years would be do-able 10-12 likely would be unless I put every extra penny towards debt repayment (every yearly bonus, every tax refund, etc.) then maybe 8-10.

4) How important is it to you to be debt free? Clearly it's of at least some importance to you or you wouldn't even be thinking about it, but just explore it a bit more. If it's very motivating, I think it's a good move, even at your low rates. Why? Because you will do it faster. Because the rewards are more when you're done (that is, you will really enjoy your security). You will stay motivated and not just drift away and experience Lifestyle Creep. If it's just more of a "wouldn't it be nice if" kind of thing, you might consider investing it instead. For me, being debt free is all about security.  I know I can make all my payments now, but what if I or DH lost our jobs or couldn't work?  What if interest rates go up?  Money for me generally is about security and being debt free would just make me feel "safe".



 


nstewart's Avatar nstewart 04:54 PM 03-06-2012


Quote:
Originally Posted by laohaire View Post

 

Sheepish.gif One more post and I'm DONE!!! I swear!!!

 

BACK THE TRUCK UP.

 

1) Do you have a $1000 emergency fund? If no, start here. If yes... We have a couple thousand bucks in a savings account that we've used for emergencies in the past, but it isn't a dedicated "Emergency Fund" (although to be honest we don't use it for anything else, so maybe the answer is "yes"??)

2) Pay off your car note. Then... It's on the LOC, so 3%, but I could committ to getting that "amount" payed off first before anything else

3) Save 3-6 months expenses in some very liquid form. This would give me peace of mind for sure!  Given the low interest rate on the car I might be tempted to do this first just for the peace of mind.

4) Put 15% income into retirement.

5) Save for kiddo's college but I can't tell you how much because I'm not doing it. Thbbbb. My parents gave DS a gift of some $$ to be put in an RESP, so at least I do have that set up for him and the money in the RESP so even if I can't contribute for a few years he has a starting point that will grow over time.

6) Pay off the LOC and mortgage.

7) Enjoy.



Thanks for the advice!!  Being on the "2012 in 2012" thread has made me really accountable and motivated to de-clutter so I'm hopeful that this thread will likewise motivate me to take some action.  Next steps: (1) Build a budget with DH and make debt repayment happen automatically; (2) get caught up and file tax returns for the last 4 years (thank goodness we have a ton of tuition credits and I was on mat leave for a full year, so hopefully we don't OWE money!) uhoh3.gif

 


Contrariety's Avatar Contrariety 05:26 PM 03-06-2012

Thanks for the advice about student teaching.  I talked to DH about it and he said he is not required to sign anything, but working is strongly discouraged.  blech.  He's still going to try and work the three days, but the fact is that his employer may not be down with it anyway, so we'll see. 

 

It does make me rethink doubling my car payments for the rest of the year, though. I think I will just sock it away in savings after all.  It could be a very tumultuous year for us so I think I'd feel better having a bigger safety net rather than less time left on my car loan.  I mean, I really think we'll be fine even if he has to quit working, as we should have at LEAST $6000-$7000 stocked away and we will be getting another tax return in the middle of his student teaching.   Our monthly costs right now are about $1200, but I could defer my student loans if we absolutely had to, and could also cancel our cell phones, and I'm sure I could get our food costs down as well. I am also planning to can more than I have ever before and squirrel, squirrel, squirrel food away in the mean time.  We'll see!

 

Thanks for the help, ladies!

 

ETA:  DH will be teaching secondary English/Creative Writing.  He's really excited about it.  He's already had unsolicited  offers of an internship, but unfortunately we can't  afford for him to take the position.  We're hoping there's a job for him at the end of all this, but it seems that education is still pretty volatile in general.  All we can do is prepare in the meantime, I guess.


lilacvioletiris's Avatar lilacvioletiris 04:07 AM 03-07-2012

nstewart, since you were talking about RRSP, I figure you are in Canada.  My DH is Canadian and he has some money socked away in an RRSP even though he has immigrated to the U.S.  We stopped contributing to the RRSP because he moved.  For now we are just leaving it alone because we don't know if we will retire in Canada or not, but I digress.  I agree with laohaire on her previous posts.  I am going to expand on the budget and debt snowball.  Once you have a budget that works for you, use a spread sheet to see how long it will really take to pay off your $100K debt.  DH and I have $82K debt and it is going to take 5 years of a debt snowball to get it paid off.  Freeing up those monthly payments that are currently going to your line of credit gives you opportunity to sock away the 3-6 months savings and then put money in retirement.  You want to make sure that all your eggs aren't in one basket for retirement - either through your job or your RRSPs.  What other financial instruments are available to you in Canada to put your retirement money into?  Does your employer match any contributions you make to your RRSPs?  Since DH and I are at the start of our debt snowball, I am only contributing $10 to my retirement plan so that my employer will contribute to it as well.  Once my debt snowball is done in 2017 and DH and I have 3-6 months savings, then we will look at mutual funds and other financial instruments to put our retirement money into.


my2girlz's Avatar my2girlz 08:39 AM 03-07-2012

Can I join?

 

I'm currently in BS2 and am going after our citicard with a balance of a little over 10k. We just paid off our minivan last month so this month is our first month with a sizeable snowball. I'm ready to get moving and dh is more than ready to get rid of this debt. DH is paid salary plus commission. The commission varies a lot, it just depends on when customers pay. We can live comfortably on just his salary and the plan is to put all of the commission towards debt. We don't find out what the monthly commission check looks like until the Tuesday before the check arrives and that is always mid month. After looking over everything I should be making a substantial payment this month (over 1k). Hoping this thread gives me the motivation to not fall off the wagon again. 

 


lilgreenmama's Avatar lilgreenmama 09:56 AM 03-07-2012

Do any of you guys have tips to get DH on board? I'm saving and scrimping but he makes more $$ than I do, and I feel like I'm not getting anywhere. :(


Contrariety's Avatar Contrariety 12:10 PM 03-07-2012

Harp about it for five years!  Lol!  DH is still only kind of on board.  He knows its someting we need to do, but just has a hard time committing to it. 


CeciMami's Avatar CeciMami 12:11 PM 03-07-2012

I'd like to join in too!  Several years ago we successfully used Dave's Baby steps to get out of debt but shortly thereafter my DH's hours were cut, we ran the CC's up again, and we lost our house. We're in a different house now (with a much lower payment), DH's work has picked up, and we're in great shape to start chipping away at the debt once again. I'd love to be able to actually get to the "put 3-6mos savings away" point this time around! LOL! I'm going to take the next couple of days to look at our budget and discuss with DH and I'll be back to lay out our plan so I can get your opinions. :)


eirual's Avatar eirual 04:45 PM 03-07-2012


Quote:
Originally Posted by lilgreenmama View Post

Do any of you guys have tips to get DH on board? I'm saving and scrimping but he makes more $$ than I do, and I feel like I'm not getting anywhere. :(



I told him we had being doing it his way for forever, so to give me ONE month.

 

In that month a lot of good stuff happened (created a budget, reduced spending, and came out ahead at the end) and we put in place all the ground work (i.e. goals and budget) so to continue with it the folllowing month was easy. Talking about those ideal goals and just aiming for them (even if you fall short) at least gets you moving towards a target instead of drifting aimlessly and getting nowhere but backwards.

 

 

 


lilacvioletiris's Avatar lilacvioletiris 04:56 PM 03-07-2012

I found that DH got more on board each time we had "budget committee meetings".  We do so each time he gets paid (every two weeks) and when I get paid (the 20th of each month).  I try to keep them short and make sure there is something we change to keep him involved.  We haven't over drafted our checking account in several months and that is the best part so far as we have just started our debt snowball.


laohaire's Avatar laohaire 06:57 AM 03-08-2012

Men seem to respond well to books left quietly on the toilet. 2whistle.gif

 

Total Money Makeover is very motivating.


tiqa's Avatar tiqa 07:22 AM 03-08-2012

For me what's helped me with DH most is not bailing him out.  I've always been in charge of the budget, but he's always been sort of, spoiled, I guess.  He knew how much he had to spend that month, but if he didn't stick in the budget, oh well.  I'd take it out of my allowance.  Or if he wanted an extravagent gift for himself (like a new computer or a Lazy Boy or something) I'd shift things around the budget so it could happen.  It wouldn't work like that for ME, but I guess I was trying to... well, it's hard for me to admit, but I guess on some level I thought he would love me more if I let him get the "stuff" he wanted.  I even let him talk me into buying a money-sink SUV instead of a more economical car because his face just lit up when he saw it.  He has severe depression so it's rare that he ever registers as happy.  I think this played into it a lot.


It also helped that if DH's toys used up our savings, my mom would help us out financially if there was something we needed, like a medical treatment or something.  That wasn't cool and it was a cycle I was trying to break.  Finally I convinced her to stop throwing money at us and let us grow up, sort of, and she did.  Now DH and I have more money coming in but also more bills, and no mental safety net of, well, my mother will bail us out if anything gets TOO bad.  It helped when I sat him down and went through the budget with him.  Before, he was of the mindset that "poor people don't budget" - an attitude he grew up with.  If there wasn't enough money to pay the bills, then why bother being frugal at all, get what you can when you can because you might not be able to tomorrow, etc.  Money in the bank can evaporate faster than a sofa can, or whatever.  But now that he sees that we ARE capable of paying our way, and that we just need some self-discipline, but it is do-able, and we can work as a team to get things done... he's a lot better about things.  He actually sticks within budget.  Yay.  (Now if he'd only give up his cigarettes he could actually spend his "allowance" on other things than his addiction, but whatever, that's his choice to make.)


lavatea's Avatar lavatea 08:44 AM 03-08-2012
Here's DR's plan:

Pre-Step 1: Get current on your debts and do a budget
0.1 No new borrowing. check
0.2 Talk with spouse and get him/her on the same page as you concerning finances. sort of
0.3 Do a written budget check
0.4 Temporarily stop all retirement contributions disagree with this one - contributing 5%
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing) check
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball never had
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF. still have satellite (DH doesn't want to cut it), cell is partially paid by my mom plus we don't have a land line, any eating out (which has been drastically cut) is rolled into the food budget
0.8 Get current on ALL bills check

BS1 $1,000 to start an Emergency Fund ate it up during maternity leave, rebuilding now but bumping it up to $3000 due to the nature of my position at work
1.1 Chop up/freeze CC's (You have an EF now) don't have any
1.2 Get Health insurance NOW if in the US check
1.3 Get Life insurance NOW if you have considerable debt/your family couldn't make it financially if you died. check
1.4 Amputate cars that you can't pay off within 24 months not doing this - have one new car (financed) and a 10 1/2 year old beater

BS2 Pay off all debt using the Debt Snowball on hold while rebuilding EF
2.0 Do the debt snowball, paying all your debts from lowest BALANCE to highest. don't have bills sorted exactly this way but close

BS3 Three to six months of expenses in savings
3.1 Start car replacement fund have a small amount going to this, also used for maintenance
3.2 Save up 20% for home purchase OR pay down existing mortgage to the point you can drop PMI. probably going to use our tax refunds for a down payment (if the IRS ever gives them to us)
3.3 Start furniture or other non-essential stuff replacement fund not there yet

BS4 Invest 15 percent of household income for retirement currently contribute 5%

BS5 College funding for children put a little away randomly

BS6 Pay off home early currently rent

BS7 Build wealth and give! Invest in mutual funds and real estate




Anyone else feel panicky about money even when following a plan? I'm so stressed about money right now. Part of it is b/c we're behind from my maternity leave. And part of it is b/c we could really use some things (like new clothes, new work shoes for DH, etc) that I just don't have room in the budget for without cutting something else. Also DH is constantly bugging me to rearrange the budget so he can buy alcohol, baseball tickets, money to use to go camping for his brother's birthday, etc.

Just not feeling good about the money.


dziejen's Avatar dziejen 06:13 AM 03-10-2012

Anyone else feel panicky about money even when following a plan? I'm so stressed about money right now. Part of it is b/c we're behind from my maternity leave. And part of it is b/c we could really use some things (like new clothes, new work shoes for DH, etc) that I just don't have room in the budget for without cutting something else. Also DH is constantly bugging me to rearrange the budget so he can buy alcohol, baseball tickets, money to use to go camping for his brother's birthday, etc.
Just not feeling good about the money.



Lavatea, I can relate! I tend to feel more nervous when we have money because when we are poor and the bank balance is at $0 there is nothing more we can do but when we have cash in the bank, I get nervous that it is going to get spent or not put towards the right goals.  Hopefully over time this will change.  Also dh has gotten a lot better but still not feeling 100% commitment.

 

 

 


laohaire's Avatar laohaire 07:40 AM 03-10-2012

I felt panicky for a while, yeah. Basically, I was not involved in the money and just was trying to hope it was all ok and just not think about it. But when I got the keys to the finances, I was acutely aware of what shape we were in and I felt panic for a while.

 

It's good, though. It's motivating.

 

Best of all, it ends.

 

I felt a lot of "what are we doing wrong?? we're doing ALL THE RIGHT THINGS!!!!" for a while. But it's a process; you don't just jump on a plan and then reach security in a month or two. But at some point the tide turned and suddenly we were getting ahead.


nstewart's Avatar nstewart 11:59 AM 03-12-2012

This weekend I started on a budget that I need to work with DH on to finilize (so that he's involved in the process, although I think the numbers are close to final) using the build a budget worksheet from Gail's (from 'Till Debt Do Us Part) website.  I also did some calculations and have determined that we can reasonably pay off all of our debt (line of credit and two mortgages) in 10 years.  That seems like a LONG time, but this is if we stick to the same payments from today for the next 10 years, without contributing any extra money.  This means that salary increases or any bonuses, etc. could either go to lifestyle or to paying down our debt faster, or to retirement savings and likely would go to a combo of those items.  This re-payment schedule also means that we can still build an emergency fund and put some savings towards retirement while paying down our debt.  It also means that I'll be debt free (including mortgages) by the time I'm 40.

 

While the time-line is longer than I'd like, at least I know it's do-able and realistic.


eirual's Avatar eirual 07:21 AM 03-13-2012

That's AMAZING!!! joy.gif

 

I hope your DH realizes just how awesome that freedom will be and jumps on board whole-heartedly.

 

 


eirual's Avatar eirual 07:28 AM 03-13-2012

We have one week left in our budget cycle and I just blew it by grocery shopping without a calculator (I SUCK at grocery shopping when I don't have a calculator to add things up as I go). Part of the problem was that I had a very bare-bones list so I knew I'd be throwing in some snacks and extras....I did not think I threw in an extra $70 (!!!!!) worth of randomness.

 

I was feeling done and rushed and curfuffled so just debited the extra (where would you even start in putting back $70 worth of stuff?) and was thankful that this was the exception not the rule for how I typically grocery shop. It re-affirmed how much I need a DETAILED list and CALCULATOR!!! ....no trying to grocery shop in the midst of two other tasks, bad things happen.


Tags: Finances
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