Dave Ramsey Support Thread Summer 2014 - Mothering Forums

Forum Jump: 
 1Likes
 
Thread Tools
Old 08-11-2014, 02:23 PM - Thread Starter
 
lilacvioletiris's Avatar
 
Join Date: Apr 2011
Location: Battle Creek, MI
Posts: 3,056
Mentioned: 17 Post(s)
Tagged: 0 Thread(s)
Quoted: 18 Post(s)
Dave Ramsey Support Thread Summer 2014

We are here to support each other now while we live like no one else, so that in the future we can live like no one else.

The Baby
Steps:

Pre-Step 1: Get current on your debts and do a budget
Before you begin the baby steps, you must be current on your bills and, if you aren't doing one already, begin doing a monthly budget.

Baby Step 1: Save $1000 cash in the bank
Start your emergency fund . If your income is less than $20,000, make that $500.

Baby Step 2: Get out of debt
With Gazelle intensity and using the debt snowball, pay off all your debts.

Baby Step 3: Finish the emergency fund
With the money you were paying towards debt, now with no debts, you can save 3-6 months of expenses into a fully funded emergency fund.

Baby Step 4: Save for retirement
Saving 15% of your income didn't seem possible before, but with no payments, you'll be ready for retirement and not have to take a job as a Wal-Mart greeter.

Baby Step 5: Save for College
Instead of taking out student loans, your kids will be eternally grateful you thought ahead and had a plan for their higher education.

Baby Step 6: Pay off the house

Baby Step 7: Build Wealth and Give It Away

---------------------------------------------
Expanded Baby Steps:
0.1 Commit to NEVER borrow $$$ EVER for ANYTHING other than possibly a house
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 the basics (You MUST have Food, Utilities, Shelter, Basic Transportation)
0.6 Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months
0.7 Cut lifestyle (Cut CATV, Cellphone, Regular phone "extras", Internet, Eating out, etc) and/or take a second job if $1000 EF will take more than 30-90 days. (depending on income)
0.8 Get current on ALL bills.

1.0 Save $1000 in Baby Emergency Fund (EF)
1.1 Chop up CC's. (You have an EF now, no NEED to keep those CC's!!!)
1.2 Get Health Insurance NOW (chances of getting sick w/major medical bills are larger than that of death), especially if you have children.
1.3 Get Life Insurance NOW if you have debt/your family couldn't make it financially if you died. Especially important if you have children! Social Insecurity only provides a small amount of coverage if you have dependents.
1.4 Amputate cars that you can't pay off within 24 months (you have an EF to fix "bondo buggy" if something should happen)
1.5 Consider raising insurance deductibles to $500 or $1000 and dropping full coverage on paid for "bondo buggy" (you have an EF ya know)
1.6 Draw up a will.
1.7 Get Long-Term Disability Insurance.

2.0 Do debt snowball, paying all your debts from lowest BALANCE to highest.
2.1 You can take your first vacation since finding Dave if you can pay cash for it. (no using the EF!!!)

3.0 Save 3-6 months EXPENSES in EF (FFEF)
3.1 Start replacement car fund.
3.2 Save up 20% for home purchase OR pay down existing mortgage to the point that you can drop PMI.
3.3 Start furniture or other non-essential stuff replacement fund.
3.4 Move up in car if you still feel the need to (must pay cash for it!, you can only buy NEW if you have a net worth over a million dollars)

4.0 Start contributing 15% of your paycheck to retirement.

5.0 Save for kids college fund.

6.0 Pay off the house early.

7.0 Live like no one else since you have lived like no one else! Give, Build Wealth and Have Fun!

Here's a link to some of Dave's budgeting forms - check them out if you need a place to start with creating a written "zero based" budget.
http://beta.daveramsey.com/tools/budgetForms

Some good quotes for motivation...

"If broke people are making fun of your financial plan, you’re on track." -Dave Ramsey

"Whenever you find yourself on the side of majority, it is time to pause and reflect." -Mark Twain-

"What can you do when you have no payments? Anything you want!" - Dave Ramsey

"Debt is dumb, cash is King, and the paid off mortgage has taken the place of the BMW as the status symbol of choice" - Dave Ramsey

"People often say that motivation doesn't last. Well, neither does bathing—that's why we recommend it daily." — Zig Ziglar

"We buy things we don't need with money we don't have to impress people we don't like." - Dave Ramsey

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!
lilacvioletiris is offline  
Sponsored Links
Advertisement
 
Old 08-11-2014, 02:32 PM - Thread Starter
 
lilacvioletiris's Avatar
 
Join Date: Apr 2011
Location: Battle Creek, MI
Posts: 3,056
Mentioned: 17 Post(s)
Tagged: 0 Thread(s)
Quoted: 18 Post(s)
So today I talked to my almost 25 year old brother about getting his finances in order. He is several months behind on his rent, student loans, and other credit cards and was asking our youngest brother, who lives with me and my DH and two sons, for money to get him through to next week. I think the conversation and google spreadsheet where we wrote down all his expenses went well. It is definitely at "pre-baby step" for him since he is behind on so many bills. The man makes $20K more than my family yet doesn't know where his money goes. Cash flow plan will be put in place as we talk out what he spends his money on.

What is your Dave Ramsey story?

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!
lilacvioletiris is offline  
Old 08-12-2014, 11:15 AM
 
eirual's Avatar
 
Join Date: Mar 2006
Location: GTA, Canada
Posts: 4,314
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 2 Post(s)
Thanks, LVI, I'm rarely on mothering these days, but I'm always happy to pop in and talk DR!

We've FINALLY made some progress by selling our second property, it was insta-BS3 accomplished so I'm happy to announce we're up to BS 5/6 ….where'd the dancing fruit go?!
eirual is offline  
Old 08-17-2014, 04:15 PM
 
MariesMama's Avatar
 
Join Date: Sep 2008
Location: in the dirty mitten
Posts: 1,034
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 2 Post(s)
I'll join! We're back to BS1 at the moment, as DH's car needs some repairs ... but I'm hoping to boost the BEF back up really quickly after a yard sale next month.

DD 2/08
MariesMama is offline  
Old 08-18-2014, 12:01 PM - Thread Starter
 
lilacvioletiris's Avatar
 
Join Date: Apr 2011
Location: Battle Creek, MI
Posts: 3,056
Mentioned: 17 Post(s)
Tagged: 0 Thread(s)
Quoted: 18 Post(s)
Need to post some stuff to our local facebook garage sale page. I just don't have time to wait outside my house hoping someone will pass by. I think I will post it on craigslist too. I have done pretty well with some things there. Still plugging away at the debt snowball for us.

Had a great conversation with my dear brother2 last Friday as I am helping him to get his finances in order. I just don't think my parents ever taught him anything about money and his one role model, our Uncle Reynold, spent his money as quickly as he made it and was always giving things away to people. Giving is good, but my DB2 needs to put his house in order first.
@eirual that is awesome that you have your property paid off! Glad you came back to talk DR. Always need encouragement from those who are a few steps ahead of us to remind us that yes, it is possible to cash flow our pay and eventually get our debts paid off so we can live like no one else.
@MariesMama sorry to hear about the back step. Seems to be the way of the game sometimes with money. Hope your yard sale goes well.

Hopefully some other mamas will come in and join us. I know I need the encouragement because now that we are a one income family and I am staying home with my twins, our debt snowball has dwindled and paying our debts off looks miles away. I am working to get some tutoring jobs in math and chemistry for the fall and maybe some college testing assistance. I worked part time 2 hours a day outside the home this summer and it was so much work to get the boys up and out the door at 7 a.m. I need something that I can schedule when it works well into a nap time for my boys.

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!
lilacvioletiris is offline  
Old 08-18-2014, 03:07 PM
 
orangemomma's Avatar
 
Join Date: Jan 2012
Location: East Coast United States
Posts: 325
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 6 Post(s)
Hi all,
Nice to see some of the same friendly faces from before! I know for myself that I stopped participating because it just seemed like I wasn't making any progress and I didn't like being reminded of that month after month..............

I have made some small progress though which I shall be glad to report. I am working on pre-step 1 (or is it step zero?) and baby step 1 at the same time. I have $423 in the BEF and have found a painless way to fund it. I use my twice monthly travel reimbursement for the BEF and have very faithfully saved that every month since January. The going is slow with this method though - it's August and my balance is less than $500.

Good luck to everyone!

Last edited by orangemomma; 08-18-2014 at 08:43 PM.
orangemomma is online now  
Old 08-25-2014, 04:00 AM - Thread Starter
 
lilacvioletiris's Avatar
 
Join Date: Apr 2011
Location: Battle Creek, MI
Posts: 3,056
Mentioned: 17 Post(s)
Tagged: 0 Thread(s)
Quoted: 18 Post(s)
@orangemomma I know about the slow progress. Glad to see you back. Slow but steady saving will mean you can support it into the long term, hopefully

AFM, I had every intention of putting some things for sale on craigslist to make a little extra money, but I haven't done it. Need to get more motivated to do that.

Working with my DB Jon. He uses his debit card which is attached to his checking account, but doesn't pay enough attention to it. Trying to work with him that cash is the only way for him so that when he has no more money in his pocket, he can't buy anything else. He gets paid weekly. We had talked about freezing up his debit cards in addition to his credit cards, but because of how he banks - mostly with ATMs - he has to have his debit cards. Any ideas on how to make his debit card a little bit more "hard to get" but still available?

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!
lilacvioletiris is offline  
Old 09-04-2014, 06:01 AM
 
orangemomma's Avatar
 
Join Date: Jan 2012
Location: East Coast United States
Posts: 325
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 6 Post(s)
lilac did you and your brother ever figure out a solution to help him keep his spending under control?

I have decided that I need to get gazelle intense about my debt - but the idea of working more than I do now is just overwhelming to me. I don't see any other way around it though.................... my DP is not on board with DR and will not be participating with me, so there are things that I can't do/make change around. Like his truck - it should go and be replaced with something more affordable but he refuses. Sigh.

I am going to make a list of things I will be able to spend my money on - once it's actually MY money and doesn't belong to the man.

Happy September!

 Breastfeeding, babywearing, homeschooling momma to two. 420/2014 items in decluttering challenge (643 items gone last year 2013, 625 gone in 2012) Ramsey's BS1 $86.88
orangemomma is online now  
Old 09-04-2014, 07:57 AM
 
Ragana's Avatar
 
Join Date: Oct 2002
Location: Chicago area
Posts: 1,984
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 24 Post(s)
This is technically a no-no in the DR world, but does anyone do the steps out of order? We have a bit more than the mini emergency fund in an account I can't access immediately (but can get the money in a day or two), so that is good, but we are already putting money toward retirement although we have debt. I guess psychologically it is more comfortable to me to see at least some money accumulating, even though our debt is going down more slowly.

Mom "D" to DD1 "Z" (15) and DD2 "I" (11) DH "M"

Ragana is online now  
Old 09-04-2014, 08:11 AM
 
MyFillingQuiver's Avatar
 
Join Date: Sep 2009
Location: Northern Idaho
Posts: 834
Mentioned: 7 Post(s)
Tagged: 0 Thread(s)
Quoted: 67 Post(s)
Hi Ladies! I was hoping to be a bit of encouragement to you all. You can do this! It is wonderful when you take control!

My husband and I started out years ago with the usual...student loans..he was advancing his education, I was staying home to raise children...we had 2 car payments, because you know..you gotta have nice cars...we had a home loan..a 2nd..nominal credit card debt, but we would use it, yes..not much if any savings, etc., etc. We decided to change.

It is hard when both folks are not on board. I was not fully on board for a while, but it is mostly a growing/communication issue we had to deal with..once we got passed it, like we must in marriage, it worked great.

We stayed committed to the plan, and for over 5 years ago, we've had no debt except for the 1 loan on our home which we have converted to a 15 year mortgage.

We have our emergency funds. We also tempered the gazelle intensity with the fact we already had several children, and my husband and I both were not willing for me to go to work and completely change their lives for debt that WE incurred. We just went a bit slower, and kept the dedication.

We tithe. We own a 4 year old really nice 12 passenger van, outright. We own a nice little commuter car. We have generous life insurance policies in the event one of us should die, so our children's lifestyle wouldn't be altered (homeschool, the home they live in, etc). We utilize a health care sharing ministry (that I absolutely love if anyone wishes to know about it) so we pay for any medical needs, like birth/homebirth out of pocket, and then it is reimbursed 100% by other Christian members, so we don't waste $ on insurance we will never use.

We are paying for a large family vacation in cash. We are doing a large addition on our home and upgrades outside slowly as we can afford it with cash in a budget for that purpose. We have no credit card debt, we stay on budget, and we have a growing savings. The only thing we don't do is save for our children's college as we personally do not agree with that philosophy. We are not paying for our children to go hang out there if they don't really want it. Our oldest son completed one semester of Bible college on his own, already. A college education is not necessarily a given for a good career today, as it once was, but I digress.

After many years of feeling so poor even though my husband made a great income, we can finally buy the things we need and some of the things we want, because we decided to live the right way and get there correctly, not as the rest of the Joneses do..on credit.

Best wishes to you on your journey to debt free living!

Blessed Christian Wife and Homeschooling Mother to 8: 17 (our 1st homeschool graduate!), 12, 11, 9, 5, 4, 2 and with blessing #9 and #10 due to arrive April 2015




Last edited by MyFillingQuiver; 09-04-2014 at 08:14 AM. Reason: adding something
MyFillingQuiver is offline  
Old 09-07-2014, 09:07 AM
 
orangemomma's Avatar
 
Join Date: Jan 2012
Location: East Coast United States
Posts: 325
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 6 Post(s)
myfillingquiver - thanks for sharing your inspiring story!

ragana - I am currently working on my debt snowball as I also fund my baby emergency fund......I found no motivation in funding my BEF but reducing that debt does have me trying to be gazelle intense. I say "go for it" if you feel it is going to help keep you motivated. Just my opinion tho'

 Breastfeeding, babywearing, homeschooling momma to two. 420/2014 items in decluttering challenge (643 items gone last year 2013, 625 gone in 2012) Ramsey's BS1 $86.88
orangemomma is online now  
Old 09-11-2014, 02:15 PM
 
kindofcrunchy82's Avatar
 
Join Date: Jan 2012
Posts: 60
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 6 Post(s)
I paid off my dental credit card this week!

So far in the past year I have paid down 2600 out of 12000 in debt. I am bummed I haven't paid down more but I am trying my best. I don't follow DR to the T but I try to follow the general rules. I have 1000$ in an EF but will increase that due to the source of my income (exh) Hoping to have 3000$ in savings by December. I am going to pay an extra 200$ on my debts per month but do now which one to pay next. I have techinically 5 student loans and 2 credit cards. 4 of the 5 students loans are fed loans and managed and paid all in one bill though they are seperate and have separate rates. the cc is huge 2800$ and 0 percent for another year. so I have to decided interest rate or size. DR would say pay down the 675$ student loan but it has the smallest interest rate. the one with the highest is 6.8% but it is the largest debt besides my cc

CC: 2800$ 0% for 12 months
Discover cc 170$ at 3.9%
SL 1: 2400 at 6.8
SL 2: 1027 at 5.0%
SL 3 1575$ at 2.19%
SL 4: 675% at 2.19
SL 5: 1000$ at 5.00

SAHM to DS 8, DSD 6, DD 3 and DSD 3. Happily in love with my Superman!
kindofcrunchy82 is offline  
Old 09-11-2014, 02:56 PM
 
crazyms's Avatar
 
Join Date: Jan 2010
Location: Way down south
Posts: 1,190
Mentioned: 4 Post(s)
Tagged: 0 Thread(s)
Quoted: 71 Post(s)
Depending on your monthly payments I would still probably follow the DR lowest amount first since the money from those monthly payments would then be extra money towards the larger amounts. I try to eliminate any payments that I can if possible.

Michelle mom to DD , DS , & lil DD plus and spending my days
crazyms is offline  
Old 09-16-2014, 09:36 AM - Thread Starter
 
lilacvioletiris's Avatar
 
Join Date: Apr 2011
Location: Battle Creek, MI
Posts: 3,056
Mentioned: 17 Post(s)
Tagged: 0 Thread(s)
Quoted: 18 Post(s)
Would you pay off the credit card with $2800 all in this year from minimum payments alone? If not, then follow the debt snowball method to start with lowest balance first. Then once that is paid off, put the amount you were paying as a minimum payment on the first debt and add it to the second debt until the second one is paid off, etc.

Great job paying off the dental work!
Discover cc 170$ at 3.9%
SL 4: 675% at 2.19
SL 5: 1000$ at 5.00
SL 2: 1027 at 5.0%
SL 3 1575$ at 2.19%
SL 1: 2400 at 6.8
CC: 2800$ 0% for 12 months



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!
lilacvioletiris is offline  
Old 09-24-2014, 01:42 PM
 
kindofcrunchy82's Avatar
 
Join Date: Jan 2012
Posts: 60
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 6 Post(s)
I have decided since 4 of the 5 student loans are essentially 1 payment I am going to work on paying off the one single 1000$ balance. I feel like it will give me the fastest turnaround and just view the gigantic SL payment of 118 as 1 payment and to simplify my life.

Discover is getting wiped out in october
I am going to pay 250$ on the 1000$ SL starting october and have it payed off in 4 months.
I am then going to move on to the CC at 2800 and then lastly the huge SL lump. It is weird but kind of DR style I have a hard time viewing 4 SL's as seperate since they all get paid in the same bill.

SAHM to DS 8, DSD 6, DD 3 and DSD 3. Happily in love with my Superman!
kindofcrunchy82 is offline  
Old 10-06-2014, 09:15 AM - Thread Starter
 
lilacvioletiris's Avatar
 
Join Date: Apr 2011
Location: Battle Creek, MI
Posts: 3,056
Mentioned: 17 Post(s)
Tagged: 0 Thread(s)
Quoted: 18 Post(s)
Yeah, student loans are tough to see separately, but I help my brother pay his and they do actually have them "line itemed" within his online payment program.

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!
lilacvioletiris is offline  
Old 10-15-2014, 08:21 PM
 
orangemomma's Avatar
 
Join Date: Jan 2012
Location: East Coast United States
Posts: 325
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 6 Post(s)
I am going backwards here - had to use the baby EF to pay towards a car repair bill. I now have $18 and change in savings. Sigh.

 Breastfeeding, babywearing, homeschooling momma to two. 420/2014 items in decluttering challenge (643 items gone last year 2013, 625 gone in 2012) Ramsey's BS1 $86.88
orangemomma is online now  
Old 10-29-2014, 02:02 PM
 
kindofcrunchy82's Avatar
 
Join Date: Jan 2012
Posts: 60
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 6 Post(s)
Progress for october:

Payed off discover balance
paid down state student loan balance is 803$
Paid the minimums on the 4 fed loans and my credit card

I have put 1000$ in savings which totals 3300$. 700$ for upcoming dental work, 500 for christmas, 100$ for dr visits/copays. 2000 is the EF fund.

Finishing out the month for 2000$ in checking plus 3300$ in savings. As a semi DR follower, I felt this month was awesome! I save more for my Ef because my income is in the form of child support 2000$ and while my ex is good about paying and DP could pay all bills alone with his income I still feel the need to live ahead!

Oh and I finally figured out how to invest my 5K that was locked in an ira so it is making money now!


Goals for november:

10% to savings
continue snowballing debt with making a large payment on the state loan and min on everything else
I hope to bring in 200-400$ in extra income to pay down on the deb more.

SAHM to DS 8, DSD 6, DD 3 and DSD 3. Happily in love with my Superman!
kindofcrunchy82 is offline  
 
User Tag List

Thread Tools


Forum Jump: 

Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off