Getting out of Debt in JULY!! - Mothering Forums

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#1 of 30 Old 07-08-2012, 07:22 PM - Thread Starter
 
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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

 


Married 12/08 to Chilean DH and mama to DD 2/2/10. We're a bilingual home and we familybed1.gif and toddler.gif

 

Expecting #2 in late June!

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#2 of 30 Old 07-08-2012, 07:32 PM - Thread Starter
 
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OK guys, we are now a solid week into JULY! Time to declare our independence from the debilitating effects of Debt!

 

How is everyone doing so far?

 

I managed to find a VERY last-minute Summer job that I'm really really happy with and excited about. I'm hoping that this job can help to build my resume and provide networking possibilities for me, as well as making us some good money. They are paying me more than I expected, and close to $4/hour more than I make at my regular job. So that is a nice surprise!

 

I'm not sure what this will do to the unemployment that I was receiving while working part-time at my regular job. I'm not even 6 months into my EDD claim, and I really NEED that extra boost to our income during the school year. I'm making too much to get any benefits over most of the summer, but I'm hoping that once summer is over I can re-open my current claim (if it closes due to high earnings, it has not yet.) The Summer job hired me on as a seasonal employee, so I don't think that should be a problem, but we will see.

 

Savings is currently at $5,500 and we are hoping to have it close to $7,000 by September, when we start TTC #2. I can't believe that is right around the corner already! We are hoping to have between 10k and 12k in savings by the time that #2 is born.

 

Oh, and I also took and passed a bilingual oral exam for my job at the school, which could potentially open up some opportunities for more $$ at my regular job, fingers crossed.
 


Married 12/08 to Chilean DH and mama to DD 2/2/10. We're a bilingual home and we familybed1.gif and toddler.gif

 

Expecting #2 in late June!

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#3 of 30 Old 07-09-2012, 12:31 PM
 
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I'm on bs2, but really sucking at the gazelle intensity.  My husband is on board in theory, but when we work out our budget we don't really have a ton that we have left over, despite making a fairly good amount.  I need to be in here and also on the no-spend one, I suppose. 

 

I listen to dave daily, though...

 

I should also probably go through our actual situation.  We moved to a new house in February.  It's kind of a fixer upper (had some definite MUST-DOs before we could move in) we had our last house about half paid off, so we had a fair amount of equity, so we ended up putting down less so that we could cover the necessary fixes.  We should have about $5k left after we have those desperate fixes done, so before doing the "would be nice" fixes (like, the rusting out bathroom sink and tub), we're going to pay off the camper we bought last year, which will leave us a $1k "emergency fund" while we pay down the minivan (which is about $14k left on it, I think?).  Our only other debt is the house, but at the rate we're going, with the lack of intensity, it'll take us about a year to blow through that $14k on the van.  *sigh*  We have some dietary needs (gluten is a no-no, here, for instance, along with a lot of other things), so that makes our costs go up, but I'm trying to finagle our food budget down as far as I can.  My husband's autoimmune disease makes us worry about giving too much on our food, though.


Jenna ~ mommy to Sophia Elise idea.gif  (1/06), Oliver Matthew  blahblah.gif (7/07) and Avery Michael fly-by-nursing1.gif(3/10)

 

dizzy.gif Wading slowly and nervously into this homeschooling thing.

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#4 of 30 Old 07-09-2012, 05:22 PM
 
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Hi! I am new to this thread, and actually haven't been in the forums for a while.


So here's our story:

 

Most of our debt stems directly from my husbands choice of work. 4 years of medical school and 5 years of surgical residency...equals a lot of debt! Of course, job stability and decent income (and the fact that he LOVES what he does) all make up for it. I follow some of Dave Ramsey's tips (especially the snowballing and building an emergency fund), and deviate in other areas (I don't sacrifice everything to pay off debt faster, we still take vacations at least once a year).

 

Exactly one year ago, he finished residency. The last 12 months of residency, our credit card really took a hit with flying to job interviews, the cost of taking the boards, getting a new state medical license, etc. This is where our finances were then, in the order that we are targeting them:

 

Debt 1: $7,000 on credit card

Debt 2: $7600 left on car loan

Debt 3: $180,000 in DH student loans

Debt 4: $9,000 left on my student loans

Debt 5: mortgage

 

$2,000 left in savings, after shelling out the downpayment on our first home!

 

One year later, I am happy with our progress:

 

Debt 1: PAID

Debt 2: $23.12 remaining (woohoo!)

Debt 3: $175,667 remaining (ugh, this one makes me ill!)

Debt 4: not sure right now, I make minimum payments that come out automatically, this student loan is the lowest interest rate, and therefore lowest priority

Debt 5: mortgage still there, no extra payments

 

Savings: $8,374, close to our goal of $10,000.

Retirement: added an addition $4,000 since January.

 

My goal this month? Pay off the rest of the car loan when the next paycheck comes in. Then we tackle the monster. I'm not looking forward to that. It is so huge that I'm afraid it will take a long time before it looks any smaller.


 

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#5 of 30 Old 07-11-2012, 04:55 AM
 
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I'm still here. Still in the midst of trying to figure out our budget since we've moved (waiting for the first month's utility bills so we know how much we can expect to pay) and also waiting for Employment Inusrance to be processed so I can know how much I'll be bringing in on Mat. Leave.

 

In the mean time, we're trying to be good (and are doing much better this month than last so far).


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

 

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#6 of 30 Old 07-11-2012, 05:06 AM
 
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I should probably confess that after being on BS3 for a couple of years, putting DH through school on cash and paying for 2 cross-country moves, we're now back to BS2.

 

We had to borrow some money from my dad in order to make this house happen (since we were planning on staying in our 1BR apartment for another year, but this house came on the market at a good price in the neighbourhood we wanted). So, the plan was to save over the summer and pay him back by August, but we'll have to see if we make that goal and if all of our "IFs" fall into place for the fall (i.e. we rent out a room and do some childcare on the side) so we can come out in the black and survive our year of living on only 55% of an income.


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

 

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#7 of 30 Old 07-14-2012, 05:31 PM
 
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Summer is such a hard time to stay on the debt snowball.  That and wanting to start IVF treatments as soon as possible.  We made a trip to Wisconsin in May for a family baby shower, another trip to Wisconsin for a family wedding/camping weekend in June, trip to Canada in July for a visit with MIL/FIL/SIL (MIL has recurrent cancer and SIL is telling DH that MIL wants to see him more often and we live 9 hours away), another trip to Wisconsin for huge family reunion next weekend, and DH wants to go back to Canada again at Labor Day weekend to see him mom while she is still doing well/not bothered too much by her recurrent cancer.  So far we have been able to cash flow all of the trips because of my extra work this summer but I was hoping to get that money in the IVF fund.  But being with family is important too.  At least we had no new debt.

 

Looks like DH will finally get reimbursed from work for the coursework he has taken over the last 1.5 years.  Yeah!  Should be enough to pay for IVF fees that we have to pay upfront.  Thankfully our insurance is going to cover most of the procedures and meds so we need about $2300 out of pocket. 

 

Keeping inspired is what I need and keeping DH focused as well.  I want to see our lives free of debt and it is hard with so much between us and the end.  Every little bit helps.


Crafty Geeky lady (37, hypothyroid) married 7/2010 love of my life (42, azoospermia). I believe in MIRACLES! Twin boys born 12/21/13 at 40 weeks 2 days! 3/52 crafts in 2014 Ramsey's BS1: Done! 2/17/12 BS 2 goal: 6/7/17 no sperm initial DX 3/23/12 BFP 4/7/13!
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#8 of 30 Old 07-19-2012, 08:59 AM
 
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Quote:

One year later, I am happy with our progress:

 

Debt 1: PAID

Debt 2: $23.12 remaining (woohoo!)

Debt 3: $175,667 remaining (ugh, this one makes me ill!)

Debt 4: not sure right now, I make minimum payments that come out automatically, this student loan is the lowest interest rate, and therefore lowest priority

Debt 5: mortgage still there, no extra payments

 

Savings: $8,374, close to our goal of $10,000.

Retirement: added an addition $4,000 since January.

 

My goal this month? Pay off the rest of the car loan when the next paycheck comes in. Then we tackle the monster. I'm not looking forward to that. It is so huge that I'm afraid it will take a long time before it looks any smaller.

 

Debt 2 is now paid off! We are officially car loan free. :-)


 

I am also a lover of books reading.gif, treehugger treehugger.gif, and occasional soapbox stander! soapbox.gif

 

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#9 of 30 Old 07-19-2012, 11:01 AM
 
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Quote:
Originally Posted by nyssaneala View Post

 

Debt 2 is now paid off! We are officially car loan free. :-)

Congratulations! That is a wonderful feeling.

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#10 of 30 Old 07-19-2012, 07:05 PM
 
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Quote:
Originally Posted by nyssaneala View Post

 

Debt 2 is now paid off! We are officially car loan free. :-)

 

That is excellent!  I am so looking forward to having DH's car paid off. 


Crafty Geeky lady (37, hypothyroid) married 7/2010 love of my life (42, azoospermia). I believe in MIRACLES! Twin boys born 12/21/13 at 40 weeks 2 days! 3/52 crafts in 2014 Ramsey's BS1: Done! 2/17/12 BS 2 goal: 6/7/17 no sperm initial DX 3/23/12 BFP 4/7/13!
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#11 of 30 Old 07-23-2012, 01:36 PM
 
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Hello, I am new here. Is there any possible way to skip the baby step one for a bit while I pay off debt to be able to get to baby step one? I know it sounds backwards but we are about to be between 300-500 in the hole each month possibly more because there is a 95% chance my husband is going to lose his 2nd job at the end of the month. We have 10 credit cards that need to be paid off, if I can pay just half of them off we will be able to buy food and put money into savings, but there is no way I can put money into savings and pay for anything else like food. I would like to keep my credit score as high as I can because within 5 years we are going to need to sell our house and buy a new one. My credit score is at 710, or I would just quit paying some of the cards (like walmart - I HATE the company as it is, I hate even more that I owe them $1500!) But that will trash my credit score.

 

 

Pre-Step 1: Get current on your debts and do a budget
0.1 No new borrowing. - I wont lie, I was hoping to get a 2nd mortgage or a debt consolidation loan but it looks like we wont be able to do this so we will have to dig our way out of debt instead of taking the easy way out buy getting a loan to pay off all the credit cards
0.2 Talk with spouse and get him/her on the same page as you concerning finances. - This will never happen, but I am going to do my best to get it done anyway, my DH HATES Dave Ramsey - he says he is the devil and well he just hates him
0.3 Do a written budget - I have done this, but the problem is there is not enough money at the end of the month to pay all the bills, let alone food and gas money (we live way out in the boonies so gas is a huge cost for us)
0.4 Temporarily stop all retirement contributions - Never have done this anyway.
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing) - All bills are current - we do have enough food to last a few weeks then I will need to figure out how to get food for next month, but I am working on it.
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball - We don't own any of these anyway - I do have 2 trailers, 2 water tanks and some wheels and tires I need to get sold though.
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF. - We have no way to get home phones so we have cell phones that are $179 a month for both of them. DH uses one for his business and we are on a family plan. But we cant get phone where we live without paying almost $900 for lines to be run to the house. 
0.8 Get current on ALL bills - Right now no bills are past due, but they will be soon unless I figure out how to do this.

BS1 $1,000 to start an Emergency Fund - This is where my question comes from, can I skip this until I can get my 5 smallest credit cards paid off? The 5 smallest ones equal somewhere close to $1,530 by then I can either put money away hopefully each month into a Emergency Fund, OR it will be tax time so that I can just take $900 from that and put it into the fund, we had a $1000 fund but its now down to $100. 
1.1 Chop up/freeze CC's (You have an EF now) - Most are maxed out so we cant use them anyway, but I did get DH to agree to not use them until they are paid off, and the ones in my name will be cut up and canceled as soon as they are paid off.
1.2 Get Health insurance NOW if in the US - I dont even know how to do this. We are on a local indigent program right now, DH has a pre-existing condition so I don't know if anyone will insure him for anything we can afford at all. My in laws pay all our dental bills, and my pregnancy and birth is already fully paid for.
1.3 Get Life insurance NOW if you have considerable debt/your family couldn't make it financially if you died. - We do have life insuarnace, $175,000 each. I got this last time we did Dave Ramsey a few years ago.
1.4 Amputate cars that you can't pay off within 24 months - we only have one car payment left and have 15 more payments on it, I would like to pay it off quicker, but first I need to get 10 credit cards paid off.

BS2 Pay off all debt using the Debt Snowball - This is the step I feel I need to take before I can save money, we have 10 Credit Cards right now with balances from $80 (hopefully can pay off when bill comes in mail next) all the way up to $3,710ish
2.0 Do the debt snowball, paying all your debts from lowest BALANCE to highest.

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#12 of 30 Old 07-23-2012, 05:12 PM
 
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Welcome, Pogo!

 

Have you read Total Money Makeover? DR addresses the "can I skip BS1" question. ...and his answer is NO!!

 

I have to admit, I agree with him. This is an issue i fought with DH over because it does seem so ass-backwards when you just want to make headway and move forward. This is where DR is so much more than financial advice. He takes into account the psychology and behavioural aspects. That never-going-to-borrow-again-because-it's-bad-and-evil-and-I-freaking-hate-debt-and-debtors-are-slaves-to-their-lenders mentality is necessary. Knowing that you CAN handle what life throws your way on your own, with your own money is POWER and security and awesome.

 

Save your BEF first and keep it all yours.

 

With your DH losing his second job, is there any way else you can bring in extra money? Child care? You get a second job? Sell stuff (DR says "everything but the kids")?

 

....may I ask what your DH dislikes about DR? I know my DH wasn't his biggest fan, but I asked him to give me a month since it couldn't do any harm, and clearly his (dh's) methods weren't getting us anywhere.


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

 

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#13 of 30 Old 07-23-2012, 09:16 PM
 
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I have read it, although it was a few years ago so I should probably reread it, I have a log thread posted about debt consolidation or a 2nd mortgage that e,plains everything but I just don't see how I am going to be able to save any money when everything plus money we don't have goes to bills and that's before food. It's not just the 2nd job he is losing but also the 3rd that he was making a few hundred dollars a month from (the person he was helping works for said company that is closing, and I was cleaning his house every once in a while for extra money also) and also we sold a car to pay for a car, we were using the payments that we were getting for old car to pay for new car and that person also will lose his job if the company closes. It's a huge mess all around. DH has a computer repair business that he puts a lot of time into trying to get clients, the business that was closing used him the most out of anyone so he is trying to find people to replace them but its slow going. I make and sell stuff at flea markets for my second job because we live so far away Rom town I can't do child care or a garage sell or anything like that for extra money. I do think I might have an order that will make me around $100 in a week or so though, probably less because I will need to buy materials for it. And DH possibly has a lead on a part time job that an out of state uncle is trying to get him so we will see.

I honestly don't know the real reason why he hates him so much other than he likes to buy thugs NOW not wait a week for payday, not wait a month to save for it he wants its now. I joke with my brother that he is like that because he is an only child and he has always got his way. If he wants something he calls his mom and she struggles to find a way to get him money even though she is on a limited income herself. We got in a huge fight today and he told me we can't live without credit cards because all I'm going to do is spend more on groceries and I will never save any money at all. It really hurt my feelings because I really want to get out of debt and do this. If we could pay off the credit cards and the tahoe we would have almost $700 extra dollars a month. Yes I plan to put some more in our groceries because I would like to actually be able to go to the store and buy what we need not just say ok we have 50 what can we not live without. But I don't plan on spending an extra 700 a month. Its not helping that I am 4 months pregnant and freaking out about how I'm going to get the few things we are going to need for this baby. I just don't really know what to do about any of it. I know I would have a better chance of success if he were on board but he is just so different in the way he deals with money than I am. He also feels he deserves to get money every week for him, it has caused a lot of fights because here I am thinking we have like $300 in the bank to last 2 weeks and he has a few hundred stashed away in his wallet that I don't know where it came from or when but then I start feeling like he is lying to me and hiding things. Sorry for the rant I just hate being so stressed over money and how to pay bills.

Sorry for any typos on my phone
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#14 of 30 Old 07-24-2012, 03:23 AM
 
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Pogo, I agree with eiraul you need that $1000 first in the bank for emergencies so you don't see the credit cards as the salvation when the emergencies come, and they will! Even if you are just putting in $1 per pay period, you know you are getting closer to your goal of $1000.  Having that $1000 psychologically has helped me to cut the credit cards from my life, even though they are still intact, frozen into a block of ice in my freezer.  I hear you about getting that money there though.  It was really tough for us.  If it hadn't been for our tax return it likely would have taken us a year to save that money. I am a teacher and can't really take an extra job and my DH was already working 10 hours a week overtime.  Any more work would have put us over the edge.

 

I need to get on the "sell everything" plan again.  I have some items I could sell on ebay that need to go.  I sold a couple hundred dollars worth of clothes online back in Jan and Feb when I started DR's plan.

 

My DH sounds a bit like yours in the "let's buy it now!" attitude.  He has gotten more on board over the last 7 months with, "okay we don't have to buy it today, but I worked overtime so I deserve something extra." We have finally gotten to an agreement that $20 every two weeks for "wallet cash" is sufficient but that has been particularly hard.  We both work and get our checks directly deposited into our bank accounts so we rarely see the "cash".

 

I need to get back to paying cash for gas and food.  When I got my enveloped wallet out (I sewed it together with different zippered compartments instead of the paper envelopes) and I knew I only had $50 for groceries, it made me use my calculator to determine if I had money for that food item, or was it going to have to stay at the store.  A pad of paper to write a list for the grocery store, a calculator, and a pencil have gone a long way in helping me fight the food budget monster.

 

AFM, thankfully DH and I were able to cash flow our family reunion this last weekend because I got my cell phone reimbursement and my pay increase this month.  Except for the unexpected $40 toll replenishment for my RFID car toll transponder, we did excellent - staying on budget for gas, food, and lodging.  Had a blast with the family and a bunch of people I had never met before.  I am hoping that my DH gets his reimbursement for last year's educational expenses next week.  I really want to get the IVF ball rolling faster, but we need $978 to book our month of treatment plus some other fees that they require up front before they will start the procedures or give us the meds. Bummed that our BS2 goal is getting pushed back a month because of our saving for IVF.  I want a baby but I also want to be out of debt.  It is so hard for me to see two things I want so much that both involve a lot of money.


Crafty Geeky lady (37, hypothyroid) married 7/2010 love of my life (42, azoospermia). I believe in MIRACLES! Twin boys born 12/21/13 at 40 weeks 2 days! 3/52 crafts in 2014 Ramsey's BS1: Done! 2/17/12 BS 2 goal: 6/7/17 no sperm initial DX 3/23/12 BFP 4/7/13!
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#15 of 30 Old 07-24-2012, 05:41 AM
 
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My husband and I are finally ready to get serious about this.  Scary!  I've read Dave Ramsey a few years back, and Suze Orman more recently.  I think I'm more on Suze's page, but DR has some good thoughts too...

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#16 of 30 Old 07-24-2012, 05:53 AM
 
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I find listening to the Dave Ramsey show helps me remember to not spend.  I listen to it on his website (daveramsey.com) and there's tons of archives there.  I feel like it's sort of easier to hear his voice in my head saying "Why are you buying that on credit?  You don't have any money."

 

Re: the baby emergency fund.  DR's usual advice if you KNOW there's going to be a job loss is to put your debt snowball on hold and just stockpile money because that *IS* the rainy day and you know it's coming.  During that time, you stop paying on your credit cards if you have to.  He always says this: your first responsibility is a roof over your heads, utilities, food, clothing (and gas so you can get to work).  During an emergency (i.e. job loss) everything else has to go until you get back on your feet again.  That said, if he's expecting a job loss, looks like it's time for him to start looking for a second job (dave always suggests delivering pizzas...)

 

If you don't know, you  just think there'll be a job loss somewhere down the line, you keep working on the baby steps (1. emergency fund of $1000, 2. debt snowball), and start looking for a more stable job.

 

I may be a little addicted to that show, but really, it does help to have an idea of which direction is the right direction... or you could call in and ask him what he thinks!  It's a free call :)


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#17 of 30 Old 07-24-2012, 07:54 AM
 
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When I had to drive to work (I now work from home 3 days a week) I listened to him all the time, but now that im home I dont and cant listen online because I have wild blue internet and have a very limited connection. 

 

The job loss is up in the air still, a week ago there was no doubt they were closing, now they are going to try to restructure and try to stay open. I really really hope they can restructure and stay open, but only time will tell.

 

I am still trying to figure out how to figure out how to make it all work to put money in the savings first, but I just dont see how its going to work right now. I am still keeping my fingers crossed that we can sell the trailers, water tanks and wheels on craigslist. And am hoping the lady that told DH she wanted 2 websites will hurry up and get on it so he can make them and get money for them. He was nice enough to work with her but its going on over a month now that she said she would get him what he needs and she wont return his calls or anything so I dont know whats going on. I dont care if she changed her mind but tell him so that he can move on and work on another project. So I am working on it as much as I can, if I do get the order for $100 all of what I make off it in the end will be put into savings, but that might only be $80-90 dollars, but its something I guess.

 

Next months bills are starting to come, so I am going to start the budget today for next month so I know whats due when and we can see what we can do. 

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#18 of 30 Old 07-24-2012, 08:26 AM
 
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There's a downloadable podcast, too...

 

And $80-90 is better than nothing :-D


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#19 of 30 Old 07-24-2012, 08:50 AM
 
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1.1 Chop up/freeze CC's (You have an EF now) - Most are maxed out so we cant use them anyway, but I did get DH to agree to not use them until they are paid off, and the ones in my name will be cut up and canceled as soon as they are paid off.

 

I like Dave Ramsey, but I disagree with him on a few points. One is in regards to cancelling credit cards. You mention that you are trying to keep your credit score as high as possible, cancelling them could lower your score slightly. The best option IMO is to keep them open, but at a zero balance. If you want them out of sight, you can always hide them somewhere, or cut them up but don't actually cancel them.


 

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#20 of 30 Old 07-25-2012, 11:01 AM
 
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Hi,

 

I know it's late in the month, but better late than never, huh?

 

I'm Anka, wife of my wonderful DH and mother of my now 1 year old.  We paid off >70% of our >100k student loan debt over the past year, but moved last month and totally lost all our focus -- eating out, frivolous spending, etc.  The thing is, we're taking a huge income hit at the end of the year, so we really need to power through the rest of our debt before then.  At the same time, I just became eligable for matching for retirement from my employer, so I think I'm going to max that out, even though it's not strictly DR style.  I'm not turning down free money.  Another thing we deviated on was we put aside our FFEF because I'm trying to get pregnant and am the only source of income for our family.  While I'm hoping to work through pregnancy, we all know that stuff happens.

 

Anyway, here's to getting gazelle intense again!!!

 

Anka


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#21 of 30 Old 07-25-2012, 02:58 PM
 
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 We paid off >70% of our >100k student loan debt over the past year, but moved last month and totally lost all our focus -- eating out, frivolous spending, etc. 

Anyway, here's to getting gazelle intense again!!!

 

Anka

 

That's awesome! Congrats! Our goal for student loans is to pay off one loan each year, which would take 4 years, since there is one loan for each year of medical school! Although I'm hoping it will happen a little faster than that. We are just at the point now that we can start making payments on top of the minimum monthly payment. We also plan on doing the matching retirement contributions, we will be eligible starting in January. I disagree with DR on that front as well.


 

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#22 of 30 Old 07-26-2012, 07:32 AM
 
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Pogo,

 

In regards to DH. Some approaches to consider, if you haven't already:

 

  • Put a concrete number on all of your debt and break it down over 3-5 years to see how much that means you have to put towards it per month.
  • Calculate your net worths (value of everything you own - total of debt = net worth)
  • Ask him what his goals are/where he'd like to be in 3 or 5 years and work the numbers so he has a roadmap to get there....even if you go astray/fall short, you're still heading in the right direction. If he doesn't have any goals, share yours.
  • Let him know explicity that this is important to you and you want his help (this was no meek discussion for us, I was so frustrated with DH's lack of care and flawed thinking in regards to finances that it amounted to a full-blown argument and finished with him agreeing to try it just for a month....3 years later we're still doing it)
  • Compromise on the side-job/personal spending money (in breaking down the funds, you could even do Plan A where you put away a bit less, but have more for personal fun and a Plan B where you go gazelle). DH has side-jobs and easily feels entitled to that money. I consent to some small splurges as long as the bulk of it has gone towards bills and what NEEDS to be paid.
  • Create a visual chart...a pathway or road or rocket or flower or whatever with where you are now to where you want to be, with the spaces equally divided so you can colour in and visually represent your progress and goals.
  • Ask for a one-month trial run doing it your way.

 

I hope you can find a way to make this all work, because it does sound awfully messy for now. Just remember even if you can't make everything work perfectly, you can still work towards the goals you set for yourself. Some years, just not incurring more debt is all we can do. Good Luck, mama!

 

I'll look into your other consolodation posts to get a better idea of where you stand. I don't think it's wrong to consolodate as long as you make a commitment to stop borrowing and have a plan to attack that monster figure (lots of baby goals so you can still feel that success).


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#23 of 30 Old 07-26-2012, 06:37 PM
 
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Ok, after two years of financial rollercoastering, dh has a new job that will increase our household income by about $1400/month. This will almost double our take-home. Yay!

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#24 of 30 Old 07-26-2012, 07:29 PM
 
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that's awesome news wolfcat!

 

$1564.74 in my EF! Pretty happy to finally have a savings for the first time in 10 years of marriage.

 

Wish I could say that I've been focused on paying down debt. I have been focusing more on saving for a house. Although being debt free will free the grip of the mortgage so I will try to pay down the debt before I get locked into a house.


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#25 of 30 Old 07-27-2012, 07:10 AM
 
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Pogo,

 

In regards to DH. Some approaches to consider, if you haven't already:

 

  • Put a concrete number on all of your debt and break it down over 3-5 years to see how much that means you have to put towards it per month.
  • Calculate your net worths (value of everything you own - total of debt = net worth)
  • Ask him what his goals are/where he'd like to be in 3 or 5 years and work the numbers so he has a roadmap to get there....even if you go astray/fall short, you're still heading in the right direction. If he doesn't have any goals, share yours.
  • Let him know explicity that this is important to you and you want his help (this was no meek discussion for us, I was so frustrated with DH's lack of care and flawed thinking in regards to finances that it amounted to a full-blown argument and finished with him agreeing to try it just for a month....3 years later we're still doing it)
  • Compromise on the side-job/personal spending money (in breaking down the funds, you could even do Plan A where you put away a bit less, but have more for personal fun and a Plan B where you go gazelle). DH has side-jobs and easily feels entitled to that money. I consent to some small splurges as long as the bulk of it has gone towards bills and what NEEDS to be paid.
  • Create a visual chart...a pathway or road or rocket or flower or whatever with where you are now to where you want to be, with the spaces equally divided so you can colour in and visually represent your progress and goals.
  • Ask for a one-month trial run doing it your way.

 

I hope you can find a way to make this all work, because it does sound awfully messy for now. Just remember even if you can't make everything work perfectly, you can still work towards the goals you set for yourself. Some years, just not incurring more debt is all we can do. Good Luck, mama!

 

I'll look into your other consolodation posts to get a better idea of where you stand. I don't think it's wrong to consolodate as long as you make a commitment to stop borrowing and have a plan to attack that monster figure (lots of baby goals so you can still feel that success).

Some of this I have tried, some I have not. I don't even know how to calculate what the value of what we own is. I am sure its not going to be a lot though. We have slowly been making headway on it, last night he actually asked me if I could find a way for him to buy some brewing supplies he needs so he can make some beer for when my Aunt comes to visit next month. And because of the nice way he asked I told him that as long as it was under $50 I would figure out a way to make it work (partly because he did a side job yesterday and made at least $40 so far and is going back today to do more) and then he asked if there was any way I could figure out how to let him have $100 in October so he can but something he needs at a gun show. I told him I would work on it. So I feel that because he is asking nicely and actually asking me he is starting to come around. But then yesterday we also got into an arguement because I traded for a bird cage that I know he loved, and it cost me no money at all, with the thought of we would get birds for it sometime in the next 6 months to a year, at the earliest December and I told him this when I got it but he wants the birds NOW. He has been bugging me every day about when we are going to get them and what kind we are going to get. I feel we have enough on our plate right now with the animals we have and with me expecting a baby, and I do almost all of the animals care myself so I don't want to add birds to the mix. He feels that they are only going to cost a few dollars a month for food and that I should just let him go buy them. And while it may only cost $10 a month for food, the birds are $20 each and we will probably get 5 or 6 because its a HUGE cage so thats $100 or more we dont have plus the fact of me having to feed and water them daily and clean their cages. So we are making some progress and then we go back to the "but I want it NOW". I have made the calendar for next month that shows all the bills and when they are due, and I started putting how much is actually owed and the minimum payment so hopefully he will see that as motivation instead of just saying oh $25 isnt a lot of money and instead he will hopefully see and say to himself "OMG $25 a month will never pay off this $1,222 balance". So we will see how that works out. 

 

AnkaJones - Oh my gosh that is so inspiring that you paid off so much! 

 

WolfCat - That is wonderful news! the great thing about being smart with your money is that instead of blowing your extra money you will now be able to save even more!

 

Trekkinggirl - That is quite a big chunk of money you have saved up! Congratulations! I hope to have a savings by the time I am married for 10 years! We will be married for 4 years next month, so I have a few years to go.

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#26 of 30 Old 07-28-2012, 04:50 AM
 
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Pogo, doesn't always seem like one step forward, two steps back somedays? I bought a used smart phone the other day because of a convention I am going to where using one will be super handy. Now DH wants one now too.  Our cell phone contract won't allow an upgrade until middle September so he was looking on craigslist like I had been.  Just wait DH until you are working some more overtime again. I paid for mine from some extra teaching I did this summer.  Balance is probably the most important thing and it is good to see that your DH is getting just a little bit better at that with some of his other wants.

 

AFM, Big chunk of money sent to the U.S. Department of Homeland Security and yes I had to spell it out exactly on our check - no "USDHS or DHS".  Getting DH his ten year green card and saving for his citizenship paperwork (hopefully next summer so I am no longer required to sponsor him, which if I quit my job to stay home with kids gets a little dicey).  Such a relief to have that paperwork out the door.  Hoping that all goes well with immigration and we don't have to go for an interview.


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#27 of 30 Old 07-28-2012, 08:19 AM - Thread Starter
 
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lilacviolet, I thought that once you have the first permanent resident card, you no longer have to have a sponsor? DH just got his10 year green card a few months ago, and I was unemployed for about 6 months while we were going through removal of conditions and it was no problem. DH wants to go for citizenship right away. I think he was hoping that it would somehow magically work out so that he could vote in the November elections, but that time frame is totally unrealistic. So I think we are going to wait until our finances are in much better order before throwing more money at the US government.

 

We are still plugging away. We have just under $2,000 on a credit card at 0% interest and I'd love to just pay it all off with savings to be rid of it, but that doesn't make any sense because we're not paying interest. So instead we continue to pay about $250/month toward it and it should be gone by early next year.

 

Other than that debt, we've got my student loans to pay off, which are over 20k. I'm kind of ignoring those right now, paying on the IBR and hoping to use the loan forgiveness program for teachers to help reduce the amount we owe. I just hate having this debt still.

 

Currently have $6,000 in savings and hopefully we'll be able to pump up the monthly contribution so that we are at or above $12k by next summer. Just gotta keep plugging away.


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#28 of 30 Old 07-28-2012, 08:21 AM
 
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Congrats, Wofcat, that's awesome news!! I'm hoping I'll be able to report the same in a year's time once DH is done school (come on, income jump!!...I really hope his schooling pays off!)

 

One other thing I thought of, Pogo: I heard DR talking last month about what to do if you have a sporatic income. Even if you don't, I still love his suggested method. He suggests ranking your bills in priority (i.e. you NEED a roof over your head, you NEED food, from there decide if you need most heat, savings, water, cable, internet, cell phones, new shoes, etc....want a trip to Hawaii?? Sure! Put it on the list, but it may be number 97 in the line of priorities.) Then, depending on what you bring in that month, you work your way as far down the list as you can until your money runs out. Some rough months you may only pay your rent/mortgage, other months you may make it half-way down your list. We don't have a variable income, but thinking through my priorities has helped me control all my wants. I dont' have a physical list made, but it's in my head. I've encouraged DS to do the same (instead of wanting 15 different items now and adding new ones everytime h'es at a store, he's created a list of his top wants, and then when we're at the store and he wants something new I ask him "well, right now you're saving for x, then y....is this more important or should we add it to the list and come back for it later?"

 

Perhaps a Wish List for your DH would help him prioritize his wants...so sure, you can have some birds, but then we won't be able to afford your brew equipment until September. It might give him some control to see his wants get ticked off the list and goals to work towards.

 

It definitely does sound like you're making some great progress though, so here's to hoping he sees the light and gets motivated to attack your debts and get moving forward.


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#29 of 30 Old 07-29-2012, 07:39 AM
 
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kitteh, glad to hear you didn't have issues with Removal of Conditions while you were unemployed. From what I understand that Affidavit of Support that I signed for my DH is in force until he becomes a US citizen or he has 40 quarters of work (usually 10 years) in the U.S.

http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=720b0a5659083210VgnVCM100000082ca60aRCRD&vgnextchannel=720b0a5659083210VgnVCM100000082ca60aRCRD

 

We have created a savings account for the $680 dollars needed to become a naturalized citizen for him.  We will apply July 2013 after we have been married 3 years.  DH isn't even concerned about voting, strangely.  He says he will, but that he thinks the politicians down here only attack each other rather than have legitimate directions for new policies.

 

 

eiraul, I love the idea of a prioritized list. It is helpful to decide what comes next for any "extra" money we have that hasn't already been ear marked to pay off debt.


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#30 of 30 Old 07-30-2012, 10:11 AM
 
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eirual - that is a good idea with the list. I will have to give him the idea and see if he likes it. 

 

I did really good yesterday and stayed under budget with groceries ($100). The food I bought will last 2 weeks if I can do it right, I might need to go buy some more fruit this weekend, but I already have that thought out and have planned on spending $20 on it.

 

I did spend $12 that was not in the budget, but I made $10 they day before at the flea market and pulled the other $2 from my change jar. I bought the knitting needles I needed to finish my DS's Christmas present that I am working on. I also bought the size I will need to do the hats I am making for my DH and my Mom for Christmas so I figure the $12 was worth it, and I am sure I will be able to use them over and over again to make me some warm socks for this winter, as long as I can figure out exactly HOW to make socks....

 

So my planned budget for the next week is this, right now we have $426 payday is tomorrow and I plan to get about $400, we should get more but until I know for SURE we will just plan at $400 extra, so I will then have $826, house payment comes out on the 1st, that will bring us down to $167, we have one bill due before the next payday ($25) and I have budgeted $40 in gas for the week, and then the $20 for fruit so that will leave us with about $82. DH should be getting a check from his second job on the first, but I don't know how much that will be, and he has been helping a friend for extra money so he should be getting about $80 on Friday for that, and he is going out of town this weekend to help said friend at a gun show and he told me he was going to tell him he needs cash instead of being paid with products this time (last time he got paid with a keg of gunpowder... nice to have as we are re-loaders and shoot a lot but gunpowder is not going to pay the Chase off) so we will see on Sunday how much he makes from that. If all this works out like I have it in my head I will be able with no problems to pay the next 2 weeks of relentless bills that come. Is it just our household or does anyone else notice that 90% of their bills are due in the 2nd and 3rd week of the month?? I hope to be able to add $25 to my emergency fund by the end of this month. I also got the kinda good news that I will be able to work 35 hours a week now instead of the 33 I was getting, so while not really much of an increase, over the period of a month it can pay at least one bill, I figure its about an extra $80 before taxes in a month, so overall its about $50 after taxes.

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