Getting Out Of Debt In September 2013 - Mothering Forums

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Old 09-04-2013, 07:10 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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Old 09-04-2013, 07:39 PM
 
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Thanks trekkingirl for the new thread.

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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Old 09-04-2013, 07:47 PM
 
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just subcribing

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Old 09-05-2013, 08:58 AM
 
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Saw this link to Dave Ramsey's blog on budgeting, thought it might be useful for some of us. http://www.daveramsey.com/blog/budgeting-for-september


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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Old 09-05-2013, 09:59 AM
 
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Thanks for starting the new thread trekkingirl - how's your back doing?

 

thanks for the link lilac! It was helpful for my planning for the next few months.

 

Here's a story of how the universe thwarted my plans and for which I am thankful.  I needed to buy something on line - I can't even remember what. I thought I should use my credit card to pay (why?? I don't know why I thought this would be a good idea??) So I dug out the card and entered in my numbers etc... and it wouldn't accept my card! There's no logical reason - there was room on the card and my payments are current - but no go - the website just wouldn't take my card.

So instead, I had to use my debit card and adjust my budget accordingly - all worked out fine, better than fine really.

 

Don't know what that was about but thank you universe!


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Old 09-06-2013, 04:07 AM
 
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That is too funny, orangemomma. Glad it worked out in the end to keep you on a "cash" system rather than depending on credit.


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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Old 09-06-2013, 08:05 PM
 
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Old 09-07-2013, 12:36 PM
 
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well I started the envelope system and doing the 0 budget this month. last week I budgeted 50 dollars for food and ended up with 17 dollars left over this week I did another 50 dollars in the envelope and spent less so far. what should I do with money left over in the envelope? obviously 200/m might have been an over budget spending but having money left every week leftover isn't what is supposed to happen either.

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Old 09-07-2013, 01:03 PM
 
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I would save that food money to stock up on non-perishable foods when they are on sale or for buying something in bulk that you might freeze or can or preserve in some way.

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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Old 09-07-2013, 01:39 PM
 
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thanks, i just might have to stock up. I used most of my stock up this summer when I cut my budget.

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Old 09-07-2013, 07:42 PM - Thread Starter
 
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Orange, my back is doing ok, I'm back at work. Thanks for asking.

 

I second lilac about using the extra money to stock up on sale items.


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Old 09-15-2013, 05:31 AM
 
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So this morning when I logged on, I was curious about how long I have been trying to do the DR plan. It's been a year and I am really in the same spot in some ways that I was in Sept of 2012.

 

Same - still on pre-baby step1 - mostly current on all of my bills but not exactly, my emergency fund has $60 in it, have not been able to snowball any of my debts, took on a new payment but it's for my son's tuition and I feel it is definitely worth it.

 

What's different -  went back to work full time in June 2013 - so hopefully I will eventually catch up, there has been no new borrowing, I am trying to stick to a budget, a few of the smaller debts have disappeared simply because I have paid them off over time.

 

Not feeling too positive about all of this right now - I am going to go brew myself some coffee(here at home) and read a book (from the library lol)


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Old 09-17-2013, 07:26 PM - Thread Starter
 
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keep it up orange, they are not called baby steps for nothing! Good job!


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Old 09-17-2013, 09:31 PM
 
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orange I think your doing great. you paid off a couple bills. and have an emergency fund. it is small win but still a win. your telling your money where to go.

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Old 09-18-2013, 02:02 PM
 
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Orange you are doing great because you haven't fallen back into the habits that got you into debt in the first place. I think the hardest thing is to keep going even though our pace is slow. You have paid off some debts so you are further ahead than you were.

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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Old 09-19-2013, 07:55 AM
 
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I had to use some of my baby EF (about half). Would I stop all other savings to get it back to $1000? Even then, it will take me months to do it. I would be stopping saving for car tires (I drive about 500-600 miles per week) and business expenses (web hosting, domain names, stamps, etc). I have an item for sale on craigslist ($80) but haven't found anything else except for my single collection that might be worth any money. I live very rurally and am not in a good place to do a yard sale for little stuff.

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Old 09-19-2013, 07:58 AM
 
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Quote:
Originally Posted by pollyanna02 View Post
 

well I started the envelope system and doing the 0 budget this month. last week I budgeted 50 dollars for food and ended up with 17 dollars left over this week I did another 50 dollars in the envelope and spent less so far. what should I do with money left over in the envelope? obviously 200/m might have been an over budget spending but having money left every week leftover isn't what is supposed to happen either.

 

I just wanted to bump this question because I think it needs some attention. :wink

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Old 09-19-2013, 05:46 PM
 
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shh I should have posted I found where it goes. LOL I had to buy cat food the following week. it is for those not so regular shopping items.

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Old 09-20-2013, 06:17 AM
 
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I had to use some of my baby EF (about half). Would I stop all other savings to get it back to $1000? Even then, it will take me months to do it. I would be stopping saving for car tires (I drive about 500-600 miles per week) and business expenses (web hosting, domain names, stamps, etc). I have an item for sale on craigslist ($80) but haven't found anything else except for my single collection that might be worth any money. I live very rurally and am not in a good place to do a yard sale for little stuff.

I would say yes stop funding your sinking funds which are for expenses you know are coming but have not quite arrived until your EF is back up because otherwise your EF could go broke because of another emergency.

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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Old 09-20-2013, 03:56 PM
 
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Thanks for all of your encouragement ladies!


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Old 09-20-2013, 07:09 PM
 
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3 months is almost up at work. next month I will start receiving an extra 100/m at work. it will certainly help. dec will be my last debt payment so in jan I will be on BS3

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Old 09-20-2013, 07:34 PM
 
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3 months is almost up at work. next month I will start receiving an extra 100/m at work. it will certainly help. dec will be my last debt payment so in jan I will be on BS3

Awesome! carrot.gif

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Old 09-25-2013, 09:03 AM
 
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Haven't posted in this thread in a long time, but I had to come by to say... I just paid off our last credit card! We paid off around $60,000 in debt in the last 4 years. It sucked (a LOT at times!) but it's gone now and will NEVER be coming back! Next we are moving on to paying off our minivan. Shouldn't take long at all, thankfully. 


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Old 09-25-2013, 11:17 AM
 
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Great job!

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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Old 10-01-2013, 01:59 AM
 
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Back was a rough week of not being able to post anything here. Some guy broke into my house and stole my laptop. came through the livingroom window took laptop and son's DS and never went anywhere else in the house. Someone was watching over my house, because of the dave ramsey plan i had my emergancy fund in cash. 1100 in the house with emergancy fund and rent money along with my christmas fund. i like to thank AdrianL for helping me recover my password so i could get back in here :)

oh and just so everyone knows i did not break into my emergancy fund to buy a new laptop. Right now I am sharing my son's computer which also wasn't taken. and put the laptop i'm getting on layaway will be mine in 10 weeks just in time for christmas :).

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Old 10-01-2013, 02:34 AM
 
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where is that darn edit button when you need it ;) adinaL not adrianL sorry I'm just in a great mood being my birthday felt like i got the best present of all being able to log back in :D jumpers.gif

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Old 10-02-2013, 08:41 AM
 
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Pollyanna, so sorry to hear of that breakin. Glad that your money wasn't taken.


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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Old 10-04-2013, 03:30 AM
 
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it is ok about the laptop. the loss of peice of mind is what isn't easy to replace. :( I look at it as a test to see if i have the will power to stick to the plan. Though i haven't cut up my creditcard i haven't used it in 3 months and it is a 0 balance. so i need to get on that :D only 10 more payments til i can get the laptop off layaway.

no news is goodnews i hope everyone is doing well.

 

pollyanna

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Old 10-04-2013, 07:22 PM
 
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it is ok about the laptop. the loss of peice of mind is what isn't easy to replace. :( I look at it as a test to see if i have the will power to stick to the plan. Though i haven't cut up my creditcard i haven't used it in 3 months and it is a 0 balance. so i need to get on that :D only 10 more payments til i can get the laptop off layaway.

no news is goodnews i hope everyone is doing well.

 

pollyanna

That is the hardest thing. That truly sucks. I feel for you. :Hug

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Old 10-04-2013, 11:34 PM
 
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i feel i'm changing my whole way of thinking. i just can't believe how much my family is into debt. i posted dave's daily quote on my FB today and my aunt said well you can't get a new car without a credit score. well thanks but my plan was to save for a nwer car. the one i have now will probally last for a few more yrs. and i am hoping to have a 20% down for a house sometime next yr.

i live in a very low cost area for housing so don't think the 20% is alot ;)

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