Getting Out Of Debt In January 2013! - Mothering Forums

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#1 of 155 Old 01-01-2013, 03:44 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


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#2 of 155 Old 01-01-2013, 03:47 PM - Thread Starter
 
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Happy New Year! Here's to a debt free or serious debt reducing 2013! champagne.gif


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#3 of 155 Old 01-01-2013, 05:40 PM
 
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Here is looking forward to a great path to freedom from debt!  I can't wait to see what this year will bring to my family financially.


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#4 of 155 Old 01-02-2013, 05:43 AM
 
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Looking forward to being on track and making great strides this year! Happy New Year everyone!

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#5 of 155 Old 01-02-2013, 07:23 PM
 
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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 arggh!
0.1 No new borrowing. used my lowe's card last month to get 5% off and paying extra to cover it is not in budget this month due to school being out and me not being paid.
0.2 Talk with spouse and get him/her on the same page as you concerning finances. N/A
0.3 Do a written budget done
0.4 Temporarily stop all retirement contributions no problem! don't have any!
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing) working on this.
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball trying to get myself up to listing my Windstone Editions dragon collection on ebay. i've collected them for over 20 years and it's tearing me up to think of selling them, but i don't have much else to sell.
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF. netflix cut off for the time being and only driving to central office 1x/week instead of 2. sometimes i might not have to drive at all! i only make $8/hour and gas for the trip is $3 so i'm not down by much and get to leave an hour later for work.
0.8 Get current on ALL bills done.


no car payment, no house payment, i tried to request a home insurance quote from one company but did not get a response. i'll have to try another company, i guess.

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#6 of 155 Old 01-03-2013, 08:48 AM
 
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Subbing.

 

Have been missing in action due to a nasty virus that I seem to have had for forever now (actually just 14 days but feels like forever!)

Will update how December ended up for me and my plan for January soon.

 

Happy New Year Everyone!


 Breastfeeding, babywearing, homeschooling momma to two. 341/2014 items in decluttering challenge (643 items gone last year 2013, 625 gone in 2012) Ramsey's BS1 $18.31
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#7 of 155 Old 01-03-2013, 09:07 AM
 
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Subbing!

Still chugging along here. Getting the EF back to where it needs to be and then back to paying down DH's student loans. Happy to hear the fiscal cliff was resolved because I need that tax money to pay for tuition!

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#8 of 155 Old 01-03-2013, 01:06 PM
 
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#9 of 155 Old 01-03-2013, 01:44 PM
 
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Welcome Annie! I also waitress and while it is inconsistent at times, we also rely on what I make for our family of 5 too. Can be stressful but usually works out just fine. It seems like our older kids are the same age and my son is 5 - life is probably never dull for you either wink1.gif Glad you could join us. I find just reading everyone's posts very motivating.
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#10 of 155 Old 01-03-2013, 03:04 PM - Thread Starter
 
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welcome Annie! The more the merrier. wanted to also FYI that this is a public forum so in other words, a quick google search can pull up this thread. If you aren't comfortable with anyone knowing your bills you could contact an admin to get a more annonomous user name. Or you can just start a new MDC user. I made this same slip up when I was first on MDC and it caused some problems for me IRL.

 

 

my DH was at a friends house the other day google searching brake parts for the RV and up popped the MDC RV group. He called me on the phone and said "hey I was searching for brake parts for the RV and a picture of our kids popped up! Who is Trekkingirl?" funny story! He said wow, you're a senior member! I said hey, I worked hard for that title.....

 

meandk wow no car payment and no mortgage/rent!!!!!?????!!!!! That's golden, hold on to that for dear life! I got my rent down to $400 a month and have been able to accomplish so much more since I made that change. I was paying $1625 plus utilities. Of course now we're in our RV instead of a real house but it's a really cozy temporary spot and we live right down town of a beautiful victorian/western town. Walking distance to all the posh establishments ;)


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#11 of 155 Old 01-03-2013, 03:44 PM
 
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trekkingirl, good advice, i took it and started a new acct., as i couldn't figure out how to change my name :) i guess, i will go delete my other acct. and start fresh! thanks for the info!

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#12 of 155 Old 01-04-2013, 02:13 AM
 
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Quote:
Originally Posted by meandk0610 View Post

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 arggh!
0.1 No new borrowing. used my lowe's card last month to get 5% off and paying extra to cover it is not in budget this month due to school being out and me not being paid.
0.2 Talk with spouse and get him/her on the same page as you concerning finances. N/A
0.3 Do a written budget done
0.4 Temporarily stop all retirement contributions no problem! don't have any!
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing) working on this.
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball trying to get myself up to listing my Windstone Editions dragon collection on ebay. i've collected them for over 20 years and it's tearing me up to think of selling them, but i don't have much else to sell.
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF. netflix cut off for the time being and only driving to central office 1x/week instead of 2. sometimes i might not have to drive at all! i only make $8/hour and gas for the trip is $3 so i'm not down by much and get to leave an hour later for work.
0.8 Get current on ALL bills done.


no car payment, no house payment, i tried to request a home insurance quote from one company but did not get a response. i'll have to try another company, i guess.

 

I know you didn't ask, so I hope it's okay to chime in with my thoughts.. I wouldn't sell the collection unless I was absolutely, positively desperate. It's one thing to part with or sell items that are unused *and* unloved, but if it tears you up to sell them and you haven't even listed them yet, then I would simply keep them. You don't have to part with a much loved collection just because dave ramsey thinks it's the only way to be on a better financial path.

 

hug2.gif

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#13 of 155 Old 01-04-2013, 08:17 AM
 
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Quote:
Originally Posted by LoveOurBabies View Post

 

I know you didn't ask, so I hope it's okay to chime in with my thoughts.. I wouldn't sell the collection unless I was absolutely, positively desperate. It's one thing to part with or sell items that are unused *and* unloved, but if it tears you up to sell them and you haven't even listed them yet, then I would simply keep them. You don't have to part with a much loved collection just because dave ramsey thinks it's the only way to be on a better financial path.

 

hug2.gif


maybe i'll think about it a little while longer before i list any of them. it just feels like i can't get ahead and selling them would give me a jumpstart on my emergency fund. thanks for the hugs. maybe slow and steady can win the race but i wish i could see the future. redface.gif

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#14 of 155 Old 01-04-2013, 01:14 PM
 
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I'm back for January (not that I've gone anywhere).

 

DH is starting his work term next week and our plan is to save every penny he makes. That means our budget will be taking a hit since he won't be doing his part-time gig.

 

Come on, let's keep January in the black!

 

....oh, and a question:

 

After 4 years of budgeting, I still suck at it.

 

What do you do when your month ends in the middle of the week or when you have a 3 day pay-month (but also have a weekly mortgage payment and groceries to buy, and then don't get paid until almost 2 weeks into the next month?) are there rules for this? Budgetting gets us thinking about our finances and having a loosey-goosey plan, but I'm no accountant.


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

 

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#15 of 155 Old 01-04-2013, 01:40 PM
 
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#16 of 155 Old 01-04-2013, 02:33 PM
 
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hi all, i hope its ok for me to join in! i am relatively new here at mdc, but have been reading quite a bit lately about frugality etc... i haven't read Dave Ramsey yet, but i plan to. i have no written budget, as i am confused about where to start. i work 20 hours a week at a restaurant. i make anywhere from 4-600, i also get CS for my older DS deposited into my checking acct. weekly, an that covers the bills i have automatically withdrawn, which are phone, car ins. , and charity. i am also responsible for half the rent 675 and the groceries 150-200 weekly. my SO has a decent saving acct. but i am slowly but surely talking him in to paying his student loan off with that money. i have 0 debt, but also 0 savings., actually up until today i had 150 bucks in my saving acct., but on my way home from work i stopped an put all the money i made today an my last 2 paycheck s in, so i now have just over 300! that will be the beginning of my EF.

my short term goals are EF and car repair fund.
my mid term goal i car replacement fund (i refuse to ever hav a car pymt. again.)
my long term goal is to buy some acerage up north with my family, my mom and sister and do some homesteading.

i have 2 DS 16 and 11, from a PR and a 13 mo DD. we are on the fence about having a sibling close in age to DD, because of money and because i am not getting any younger greensad.gif
anyway, sorry for the ramble, i didn' t want to leave anything out a i hope you all can givee an idea of where to start, as i have been reading along and you seem like a good group of knowledge able and kind women
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ooops, it kept saying error so i kept pressing submit:)
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#20 of 155 Old 01-05-2013, 10:43 AM
 
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This is my goal for 2013.  Just put my fancy car up for sale and bought an older car with cash.  I am so excited to get out of that massive car debt so I can start using that money to pay down other debts.  thumb.gif  I'm hoping to greet 2014 with a positive net worth instead of a negative one.

 

We have our emergency fund, so we are in the amputating stage.  Go away expensive toys!  The best part is after years of cajoling, DH is finally on board so now I feel like we will make some real progress.


CD'ing, homebirthing, milk making school teacher. Supporting my family on my income and trying to get out of debt in 2013!
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#21 of 155 Old 01-05-2013, 04:12 PM
 
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Happy 2013!  Im still here and will be looking at my budget in a week or so, when I return from visiting family. I know I didn't meet all my 2012 goals, some will have to be met with Jan. income (maxing ira, a little short on cash savings goal, but made huge strides, and have to pay off the rest of kitchen reno $ in Jan too, etc), but over all good.  I may have a huge change coming my way, but I dont want to jinx it so wont say anything yet.


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#22 of 155 Old 01-06-2013, 12:39 AM
 
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Welcome, Veganmama! It sounds like you have some great plans and are heading in the right direction!

Lunar, what a great leap to make quick progress! Was selling your car an obvious/easy thing to do or was it challenging emotionally?

Sunrise, that all sounds like good stuff. Good luck with the upcoming shift, whatever it is! I love the idea that even if you stray from the plan and maybe fall short, at least you're heading in the right general direction; that's definitely our M.O..

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

 

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#23 of 155 Old 01-06-2013, 04:05 PM
 
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Here's how I did with my December goals and thoughts for January and the New Year:

 

1. Keep current on ALL bills - this one is the hardest for me. I realize that I should look for full time work - but at this point in my life I am unwilling to pursue this option for personal reasons. So my plan is to take any additional shifts that come my way at work. (I am only guaranteed a certain number of hours at one of my part-time jobs - some months that is all I get - others I am offered shifts for people's vacations etc... My second part time job is salaried - no room to make more there - family business)

(I did have a 3rd part time job that helped me to keep current on my bills. However, when I was ready to return to it after maternity leave - it no longer existed.) - I was able to keep current for the month of December! Yea!

 

2. Contribute 1% income to charity - done with great happiness

 

3. Add another $50 to my EF - this month I am going to try to see if I can sell some things from around the house. - Nix on this one. At this point my emergency fund has $2 in it. I don't see how I am going to add to it for January unless something sells that I have put up on Craigslist.

 

4. Continue to work on ways to cut lifestyle/trim budget - Nothing different for December but I have ideas for January..

 

 

For January and the New Year - I am thinking that I am going to be modifying my DR plan a bit. I know that he says $1,000 to the EF  before the debt snowball but my debts are CRUSHING me. I have many small debts that if I pay them off - they won't reoccur. For example, I have a CC that has been closed by the issuing party -it's at $290 now. If I pay it off, I can't charge anything on it............................ I owe the IRS money and they charge big fees every month of my payment plan. I won't get into trouble with them again because I changed my withholding and built in a cushion.

I will work on my EF at the same time - but after 3 months of budgeting and working at it - I have only $2 in it. I am WAY discouraged and thought that perhaps I might give this way a try.

Anyone do the DR plan this way? How did it work?  Thoughts??

Thanks


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#24 of 155 Old 01-07-2013, 03:49 AM
 
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orangemomma, congratulations on staying current with your Dec. bills and making your charitable contributions.  Feels good doesn't it?  With the IRS, you said you have added a cushion in this year.  Do you think you will get a refund or will the IRS be garnishing that to pay your back taxes?  I know for my DH and me, the irs tax return was the only thing that bumped us over the top to have $1000 in our savings and we have been struggling to get back up to $1000 since we had to pay out to fix my tires on my car.  Saving doesn't come easy when I have a salaried job and his work is putting a limit on overtime.

 

I saw this idea on pinterest about the 52 Week Saving Challenge.

 

http://pinchthisstretchthat.com/52-week-savings-challenge-week-1/

 

Where a person saves a $1 for each week of the year and by the end of the year they have over $1378 or something like that.

 

You say you have $2 in your emergency fund. You want to increase your fund.  Maybe a dollar a week is more than you will be able to handle by mid year but increasing your emergency fund by any amount will give you a sense of satisfaction and accomplishment.  How about if you only added a penny for each week?  You could probably find that as change dropped on the street or parking lot or in your couch cushions.

 

By the end of the year, you would have this:

    Contribute 1 penny each week    Money saved by the end of the year
1/7/2013    $0.01    $0.01
1/14/2013    $0.02    $0.03
1/21/2013    $0.03    $0.06
1/28/2013    $0.04    $0.10
2/4/2013    $0.05    $0.15
2/11/2013    $0.06    $0.21
2/18/2013    $0.07    $0.28
2/25/2013    $0.08    $0.36
3/4/2013    $0.09    $0.45
3/11/2013    $0.10    $0.55
3/18/2013    $0.11    $0.66
3/25/2013    $0.12    $0.78
4/1/2013    $0.13    $0.91
4/8/2013    $0.14    $1.05
4/15/2013    $0.15    $1.20
4/22/2013    $0.16    $1.36
4/29/2013    $0.17    $1.53
5/6/2013    $0.18    $1.71
5/13/2013    $0.19    $1.90
5/20/2013    $0.20    $2.10
5/27/2013    $0.21    $2.31
6/3/2013    $0.22    $2.53
6/10/2013    $0.23    $2.76
6/17/2013    $0.24    $3.00
6/24/2013    $0.25    $3.25
7/1/2013    $0.26    $3.51
7/8/2013    $0.27    $3.78
7/15/2013    $0.28    $4.06
7/22/2013    $0.29    $4.35
7/29/2013    $0.30    $4.65
8/5/2013    $0.31    $4.96
8/12/2013    $0.32    $5.28
8/19/2013    $0.33    $5.61
8/26/2013    $0.34    $5.95
9/2/2013    $0.35    $6.30
9/9/2013    $0.36    $6.66
9/16/2013    $0.37    $7.03
9/23/2013    $0.38    $7.41
9/30/2013    $0.39    $7.80
10/7/2013    $0.40    $8.20
10/14/2013    $0.41    $8.61
10/21/2013    $0.42    $9.03
10/28/2013    $0.43    $9.46
11/4/2013    $0.44    $9.90
11/11/2013    $0.45    $10.35
11/18/2013    $0.46    $10.81
11/25/2013    $0.47    $11.28
12/2/2013    $0.48    $11.76
12/9/2013    $0.49    $12.25
12/16/2013    $0.50    $12.75
12/23/2013    $0.51    $13.26
12/30/2013    $0.52    $13.78

 

That is 7 times what you have in savings right now and finding 52 cents or less per week is possible without getting a new job or working overtime.

 

What if you could add 73 cents per week all year long?  You would have $1000 by the end of they year!

 

Week    Contribute 73 cents each week    Money saved by the end of the year
1/7/2013    $0.73    $0.73
1/14/2013    $1.46    $2.19
1/21/2013    $2.19    $4.38
1/28/2013    $2.92    $7.30
2/4/2013    $3.65    $10.95
2/11/2013    $4.38    $15.33
2/18/2013    $5.11    $20.44
2/25/2013    $5.84    $26.28
3/4/2013    $6.57    $32.85
3/11/2013    $7.30    $40.15
3/18/2013    $8.03    $48.18
3/25/2013    $8.76    $56.94
4/1/2013    $9.49    $66.43
4/8/2013    $10.22    $76.65
4/15/2013    $10.95    $87.60
4/22/2013    $11.68    $99.28
4/29/2013    $12.41    $111.69
5/6/2013    $13.14    $124.83
5/13/2013    $13.87    $138.70
5/20/2013    $14.60    $153.30
5/27/2013    $15.33    $168.63
6/3/2013    $16.06    $184.69
6/10/2013    $16.79    $201.48
6/17/2013    $17.52    $219.00
6/24/2013    $18.25    $237.25
7/1/2013    $18.98    $256.23
7/8/2013    $19.71    $275.94
7/15/2013    $20.44    $296.38
7/22/2013    $21.17    $317.55
7/29/2013    $21.90    $339.45
8/5/2013    $22.63    $362.08
8/12/2013    $23.36    $385.44
8/19/2013    $24.09    $409.53
8/26/2013    $24.82    $434.35
9/2/2013    $25.55    $459.90
9/9/2013    $26.28    $486.18
9/16/2013    $27.01    $513.19
9/23/2013    $27.74    $540.93
9/30/2013    $28.47    $569.40
10/7/2013    $29.20    $598.60
10/14/2013    $29.93    $628.53
10/21/2013    $30.66    $659.19
10/28/2013    $31.39    $690.58
11/4/2013    $32.12    $722.70
11/11/2013    $32.85    $755.55
11/18/2013    $33.58    $789.13
11/25/2013    $34.31    $823.44
12/2/2013    $35.04    $858.48
12/9/2013    $35.77    $894.25
12/16/2013    $36.50    $930.75
12/23/2013    $37.23    $967.98
12/30/2013    $37.96    $1,005.94

 

Do you think you could find that much money each week this year to get you to your savings goal?

 

Check out this spreadsheet for other amounts that could be saved https://docs.google.com/spreadsheet/ccc?key=0Avkkz2Vwt_UrdE5FUUo5b0o5TlpFY29fYjh2XzB4NXc


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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#25 of 155 Old 01-07-2013, 10:27 AM
 
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lilac, that is pretty cool smile.gif makes it clear that the pennies really do add up!

eirual, thanks for the welcome. i am feeling pretty motivated, which is good. and doing all this reading and research is keeping my mind off of my other NY resolution, which is giving up sugar. orngtongue.gif

i went grocery shopping today for the first time this month and managed to stay under budget even with my weekly 6pk of mikes hard lemonade.

i also found a budget site that is pretty simple, so i set up that. www.budgetworksheets.org i have one for my income because it varies so much, and one for expenses. so my goal is to keep them both pretty close.

i am wondering if you all have thoughts on improving credit scores. i am not sure what exactly mine is, but i know its bad. i currently have no cc and no loans, should i get a cc an buil my credit, or just concentrate on saving?
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#26 of 155 Old 01-07-2013, 10:49 AM
 
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I think I've joined before but I'm committed this year to working on getting our family healthy both physically and financially. Last year was a very expensive year for us. We're talking new job, separate living situations, travel, long distance move, new house, more travel and a big Christmas with lots of guests... We also had to buy a lot of stuff to prepare for a long long cold winter as we've never had to deal with that before.

 

This year I am hoping we can figure out a long term and short term savings accounts and just go back to living simpler and more frugal. We'd like to take 1-3 vacations this year and figure out retirement funds. I realize that we're not in the dire straits that some are but we have been there for most of our married life and are suddenly and recently in a category where we are doing more than fine. But I'm scared of times becoming lean again and so I'd like to prepare for everything and I need help!

 

We are in Canada so our retirement and such works different but I'll put where we are in the quote below... I'm not a huge Dave follower but I like his steps. I much prefer Gail's way of doing things but with a bit of Dave thrown in, so I jump back and forth a lot and some of it probably doesn't work with others here. What I really need is a kick to stay accountable and on track to our goals. I've lurked on these threads for a couple years now and I'm committed to making our goals both short and long work out. My DH works really long and hard and while he usually enjoys his job it's hard work. I'd like for us to be able to be in a place where we can have him enjoy the fruits of his labour so to say while still being financially responsible. We went from both laid off for the last two months of 2011 with no end in sight to DH making double-triple his previous income in a matter of days. I really want to hold onto my frugal roots as much as possible. 

 

 

Quote:
Originally Posted by trekkingirl View Post

 

Here's DR's plan:

Pre-Step 1: Get current on your debts and do a budget I know how much we owe and where... It's the budget part I'm having a hard time with.
0.1 No new borrowing. We won't be borrowing anything big, but we will be looking into a new credit card. Reasons? I don't have a credit card in my name, DH's credit card limit is so low we can't usually book flights on it (should be a good thing but we're so far from family that we need the resource) and currently I tend to travel long distances with the kids for Dr's Appts and to visit family and I would feel more comfortable with a CC for backup. Anytime I need to book a hotel I have to search to find ones that will let me put a deposit in cash and it's worked out so far but we're only going to travel more. 
0.2 Talk with spouse and get him/her on the same page as you concerning finances. He's on board. He *really* wants to go to Vegas and drive to visit our family this year. We'd most likely combine that trip (but would count for 2 of our trips). We'd also like to take the kids to DL sooner than later as we'd also like to plan to have another baby sooner than later but after we do a bit of traveling. 
0.3 Do a written budget Working on this. But I struggle with budgets. I'm working on meal planning and going to look into going to the jar/envelope system
0.4 Temporarily stop all retirement contributions Done since we've never really started. Something we're looking into.
0.5 Get current on all the basics (Shelter, Food, Utilities, Basic clothing) We are current up to Dec. Only have gotten one bill for Jan so far and it will be paid on Thursday.
0.6 Amputate "toys" (bikes, boats, ATV's etc) to help snowball Don't have anything like that.
0.7 Cut lifestyle (Cut cable, cell, extras, eating out) and/or get a second job to raise $1000 EF. I'm babysitting and this money will be going straight to a EF. I'm also going to do a large declutter and all the profit will also go to this.
0.8 Get current on ALL bills Done 

BS1 $1,000 to start an Emergency Fund Working on this. Babysitting money, sold items and possibly a large chunk from DH's next couple paycheques will go to this.
1.1 Chop up/freeze CC's (You have an EF now) CC's aren't used often. Only for flights and a bit of online shopping which is rare. I will be hiding our current card, although I think it's put away anyways and I don't know where it is...
1.2 Get Health insurance NOW if in the US Live in Canada and our premiums are paid monthly, DH also has an extended health plan given to him through work.
1.3 Get Life insurance NOW if you have considerable debt/your family couldn't make it financially if you died. Have this, would also like to do a Will this year before we go away. 
1.4 Amputate cars that you can't pay off within 24 months We own our 'Trucksuv' outright and sold our other vehicle just after moving. DH drives a company vehicle.

BS2 Pay off all debt using the Debt Snowball 
2.0 Do the debt snowball, paying all your debts from lowest BALANCE to highest. Currently owe $3767. Would like to have the smaller debt of $930 paid off in the next two PC's. The $2837 is on our personal LOC and I'd like to have that paid off by end April. I'm hoping that I can put $350-550 per pay depending on how much DH works.

BS3 Three to six months of expenses in savings I'd like to start this by the middle-end of year. 
3.1 Start car replacement fund My goal for next year. Our vehicle now is great, but in a couple years something that can handle the winter roads a bit better would be nice. But if we do increase our family size it will make a difference in what we purchase.
3.2 Save up 20% for home purchase OR pay down existing mortgage to the point you can drop PMI. I don't know how this works in Canada. We had to payout Mortgage Insurance on this house when we bought as our Downpayment was too small but I don't think we can drop it. It was just a one time payment? If we do sell our other house *see last BS* then I'd like to take the money we make from that and put it straight to our mortgage. Either in one year or two depending on how much we make off of it. We had quite a large DPayment on it and have a lot of equity in it. While the market where it is, is down it's not horrible and is slowly starting to look up. 
3.3 Start furniture or other non-essential stuff replacement fund Yes! I'd like to start this in cash after the babyEF is done. There are a few things we are going to need for the house sooner than later but we're really good at making do and repurposing or scavenging. Most of our furniture has come to us through family, friends, gifts or cheap second hand. We have bought some new but very little comparatively. We inherited a bunch of the previous owners stuff when we bought this house and it's turned out really well for us too!

BS4 Invest 15 percent of household income for retirement Looking at Gail's chart we should be able to start this ASAP. The debt snowball numbers above are based on her 15% to debt repayment. I like Dave's steps, but I like Gail's pie better. Having under $5000 in debt has never worried me, we have always been able to pay it off. Of course I'd like to put the money into savings instead but we almost always live on a cash budget anyways. The money on the LOC and CC is mostly from moving, preparing for Winter (which was big as we've never really had winter before) and a too lenient Christmas (our first ever, usually Christmas is done on cash, and will be again in the future. But as I said to start, 2012 was waaaaay too crazy and by the end of it I kind of just gave up stressing.) So I'd like to start retirement contributions ASAP, I just need to figure out where to start. I have a small pension from my old job but I'm thinking it might only pay for a package of meat each month when I do get it, as it is quite small ;)

BS5 College funding for children I know family has money set aside for both of the children. Most likely what my parents put away alone will pay for a good chunk of school. I am not as worried about this as while I believe in helping my children with continuing education, I don't believe it has to be a college or uni degree and I also believe they should contribute to school themselves as well. I would like each of my children to first get themselves a skill or a trade before a degree so that they will have something to fall back on.

BS6 Pay off home early One day ;) but I think this is more a 5 year goal for us before we even start to look at it. 

BS7 Build wealth and give! Invest in mutual funds and real estate We actually own a separate rental property that we couldn't sell due to a down market and us having to move and the rental market where we moved to. The property fully funds itself (mortgage, property taxes, property manager, insurance) and leaves enough left over for a contingency fund. If the current tenants decide at 9 months that they will not stay past their 12 month lease then we will put it back on the market (both selling and renting). If they do decide to stay then we'll just keep renting it. I'd personally like to sell at this point, but if it's going to continue to fund itself then we might as well keep it :)


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#27 of 155 Old 01-07-2013, 12:23 PM
 
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subbing for inspiration
 


wash.gif  Me  + bikenew.gif Dh =  broc1.gif  Dd1(9 yrs) + hearts.gif  Dd2(6 yrs) and blowkiss.gif Ds(3.5 yrs)
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#28 of 155 Old 01-07-2013, 06:58 PM - Thread Starter
 
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veganmamma Dave Ramsey followers supposedly work towards a zero credit score! In other words, if you commit to never borrowing money ever again than there is no reason to have a credit score. It kind of goes along with a cash system as opposed to putting your money in the bank. Just another way to stick it to the man, so to speak!


living with alopecia universalis (google it), learning alongside my children DD 2003blahblah.gif DS 2007fencing.gifDD 2011jog.gif

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#29 of 155 Old 01-07-2013, 09:08 PM
 
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Quote:
Originally Posted by eirual View Post

Welcome, Veganmama! It sounds like you have some great plans and are heading in the right direction!
Lunar, what a great leap to make quick progress! Was selling your car an obvious/easy thing to do or was it challenging emotionally?
Sunrise, that all sounds like good stuff. Good luck with the upcoming shift, whatever it is! I love the idea that even if you stray from the plan and maybe fall short, at least you're heading in the right general direction; that's definitely our M.O..

It was emotionally challenging to sell my car. It was the one "luxury" item I thought we could afford, and it was great. Seating for seven, power tailgate, Bluetooth, satellite radio....I really loved that car. But you know what? My $6k car is actually pretty good too. And the extra $ every month will be worth it. I'm tired of watching our money like a hawk because we are so close to the line each month. Less debts means less stress, and that is more relaxing than any leather seat ever could be.

CD'ing, homebirthing, milk making school teacher. Supporting my family on my income and trying to get out of debt in 2013!
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#30 of 155 Old 01-08-2013, 08:38 AM
 
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I'm back for January!  I have some catching up to do as I did use my CC during Christmas shopping. I plan to pay it off this month as to not incur any interest.  I finally began reading DR!  I also decided to join the 52 week challenge starting with saving $1 dollar for week 1!     


Giving Love serves as a wonderful reminder that we already have an abundance of Love within, "it is in giving that we receive."
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