Dumping Debt and Building Wealth with Dave Ramsey ~ May - Page 3 - Mothering Forums

Forum Jump: 
 
Thread Tools
Old 05-05-2008, 02:47 AM
 
mumkenna&lucas's Avatar
 
Join Date: Aug 2007
Posts: 900
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We wont be getting our rebate until the paper checks come out (darn TurboTax ) But when we do it is going straight to our efund, and a medical bill!
mumkenna&lucas is offline  
Sponsored Links
Advertisement
 
Old 05-05-2008, 10:39 AM
 
TattooedMama's Avatar
 
Join Date: Aug 2005
Location: knitting,cooking,laundry,rinse,repeat
Posts: 1,764
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Hey I'm Jessica in Iowa. RN, CBE, doula turned SAHM to 3 boys We started the TMM in Oct. 07
Here is where we are:
BS1 $1,000 to start an Emergency Fund DONE
BS2 Pay off all debt using the Debt Snowball WORKING ON

My DH paid off $566 already this month to close out a small business debt of his. It was $275 a month, so that is ahead of schedule. Yeah! We will get a paper economic stimulus check at the end of May, and we'll be endorsing it and sending it right back! Well, OK we will cash it but then we will be paying down our 2007 taxes with it. I think our expected stimulus is $2100.
My DH is self employed so we have between $500 to $1000 "extra" potentially coming in this month, it should all be going toward 07 taxes for a while. That is our debt at the top of the snowball pile. We will have to buy a refurbished lawn mower this month, ours died at the end of last summer. :
I had my first sale on Craigslist! It was only $5 but I did take pictures of a bunch of my nursing uniforms and some toys and things to list.
TattooedMama is offline  
Old 05-05-2008, 12:38 PM
 
RoadWorkAhead's Avatar
 
Join Date: Sep 2005
Location: Florida
Posts: 1,995
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Woot! It's a 5 paycheck month for DH this month. That means 2 paychecks straight into our EF...I'm so thrilled. We'll be 2/3 down with 3 months expenses. And DH is calling today about going straight to a new job from this one (Contract work as a welder) that is 30 days straight, 7 days a week paying major $$...Enough to justify the no time off thing. It would complete our FFEF and then put about 3k towards our motorhome fund. I'm really hoping to avoid haivng to buy the MH on credit if we can....Depends on how the start of next school year goes for DH
RoadWorkAhead is offline  
Old 05-05-2008, 12:51 PM
 
KaliShanti's Avatar
 
Join Date: Mar 2008
Location: Lindale,TX
Posts: 2,284
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Hi! I'm Kali, SAHM to Tor (1 year).

My DH and I have been doing Baby Steps little by little since February 06.

We have paid off over 11K in debt (one credit card, our AC/Heat replacement, carpet replacement, and one student loan).

We have a little over 3K in our Emergency Fund and will just leave it there for now.

Debt we still have:
-DH's student loan is $31,924 at 4.25% interest (minimum is $144/month)
-2nd mortgage being $20,422 15 year balloon loan at 9% interest

I decided we are going to attack the 2nd mortgage first because it is a lower amount, a higher interest rate, and if something drastic were to happen, the SL could be defferred but the mortgage could not. Plus we'd be build equity in the house.

I wish we could knock all this out in a couple of years, but I think it's going to take a lot longer than that, though I really wish to have these gone by 2011 (my 30th birthday).

I make a bit extra money designing the occasional webpage, working one night a week at Starbucks, and working the occasional promotion event.

Jesus-loving Doula/Birth Photographer Mama to Tor 4/2007, Zion 11/2009, Enoch 11/2011, and Zephyr due 12/13/2013

KaliShanti is offline  
Old 05-05-2008, 01:58 PM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)


Welcome TattooedMama and Kali!

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 05-05-2008, 03:50 PM
 
mumkenna&lucas's Avatar
 
Join Date: Aug 2007
Posts: 900
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by mumkenna&lucas View Post
BS1 $1,000 to start an Emergency Fund Still here $75.72/1000
BS2 Pay off all debt using the Debt Snowball
BS3 Three to six months of expenses in savings
BS4 Invest 15 percent of household income into Roth IRAs and pre-tax retirement
BS5 College funding for children
BS6 Pay off home early
BS7 Build wealth and give! Invest in mutual funds and real estate
I didn't see my update on the role call, so I wanted to bump it up..Although with as tired as I am I could have just missed it. We just started fpu at church on Sunday! it was awesome! We did a mini-FPU a few weeks ago and it went over sooo well they brought the whole program to the church! Very exciting! And they got us the class kits for $45!!! Wooohoo!
mumkenna&lucas is offline  
Old 05-05-2008, 03:58 PM
Banned
 
llamalluv's Avatar
 
Join Date: Aug 2007
Location: Southwest Chicago suburbs
Posts: 2,550
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by TanyaS View Post
Yes, but that could happen without the card. They are currently carrying $4000 in expenses and would not see a penny of it reimbursed if he lost his job tomorrow.
But if the companies would just switch to paying expenses and a reasonable per diem, the whole problem would be solved. Except for AMEX, of course. :
llamalluv is offline  
Old 05-05-2008, 08:42 PM
 
crazyeight's Avatar
 
Join Date: Mar 2006
Posts: 2,766
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
well heres where we are. i still need to go to food city for some fresh veggies and maybe go back to frys for some sale items (not sure yet) so i don't know if $15 is going to cover it. i shouldn't have gotten those darn motz. sticks today at the commisary! :

Get Paid 1359.84
Mortg. 1055/1055
Food 115.45/130
Directv 0??/70 (any day now i should get my rebates applied eta: i got $75 back in gift cards today so thts a start!)
Dh car pmt 270/270
gas 0/50
water/sewer 58.40/58.40 (somehow last month got missed
eating out 10.46/40 (is it cheating if i use a gift card to go out more??)
auto savings 50/50
crazyeight is offline  
Old 05-06-2008, 12:53 AM
 
JackieR's Avatar
 
Join Date: Sep 2006
Posts: 182
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by dhinderliter View Post
(is it cheating if i use a gift card to go out more??)
If it was a gift given to you by someone else, then nope! If it was a gift card that you got from returning something that you originally spent money on, then yep!
JackieR is offline  
Old 05-06-2008, 01:21 AM
 
crazyeight's Avatar
 
Join Date: Mar 2006
Posts: 2,766
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by JackieR View Post
If it was a gift given to you by someone else, then nope! If it was a gift card that you got from returning something that you originally spent money on, then yep!
no it was a rebate for becoming a customer of directv
crazyeight is offline  
Old 05-06-2008, 01:42 AM
 
JackieR's Avatar
 
Join Date: Sep 2006
Posts: 182
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Well then spend without guilt, my dear. Gotta enjoy some stuff on the road to financial freedom.

Quote:
Originally Posted by dhinderliter View Post
no it was a rebate for becoming a customer of directv
JackieR is offline  
Old 05-06-2008, 01:59 AM
 
crazyeight's Avatar
 
Join Date: Mar 2006
Posts: 2,766
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by JackieR View Post
Well then spend without guilt, my dear. Gotta enjoy some stuff on the road to financial freedom.
great! i have just under $150 in gift cards and should be getting another $25...i have been keeping them for times when i just need a few more bucks but since i couldn't get cash i technically couldn't snowball them...woopee! a [financial] cushion...haha!
crazyeight is offline  
Old 05-06-2008, 11:00 AM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
You could use the gift cards for stuff you need (gas, food) and then put the same amount of money towards debts.

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 05-06-2008, 04:25 PM
 
woo27ks's Avatar
 
Join Date: Jan 2003
Posts: 656
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I'm a newbie. I've been listening to Dave Ramsey on the radio for the last few weeks.

I definitely need to do this. :-) Which book is the best to read first? I also downloaded the free forms - Monthly Cash Flow Plan and The Basic Quickie Budget.

Thanks - I am looking forward to reading your posts.
woo27ks is offline  
Old 05-06-2008, 04:30 PM
 
MyTwoAs's Avatar
 
Join Date: May 2004
Location: In my own little la-la land
Posts: 3,591
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by woo27ks View Post
I'm a newbie. I've been listening to Dave Ramsey on the radio for the last few weeks.

I definitely need to do this. :-) Which book is the best to read first? I also downloaded the free forms - Monthly Cash Flow Plan and The Basic Quickie Budget.

Thanks - I am looking forward to reading your posts.
I've only read his Total Money Makeover but it details all of the snowball information that people discuss here so I'd start there.
MyTwoAs is offline  
Old 05-07-2008, 12:09 PM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
woo27ks,

I'd also recommend reading The Total Money Makeover first.

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 05-07-2008, 12:29 PM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
QOTD: If you had to come up with $1000 by Monday, how would you do it?

(Then why not do it and apply it to your Baby Step?)

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 05-07-2008, 12:49 PM
 
brandyshea's Avatar
 
Join Date: Oct 2007
Posts: 109
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phathui5 View Post
Welcome to a new month ladies! This thread is for anyone who is following the Baby Steps outlined in the book The Total Money Makeover by Dave Ramsey. New people are welcomed to join us on our journey to financial peace.

Jaime has asked me to run the thread for her this month because of her super slow internet connection. (I know what a pain that can be).

I'm going to start off this month with a roll call so we know who's still with us and get a chance to meet any newbies.

These are the Baby Steps:

BS1 $1,000 to start an Emergency Fund
BS2 Pay off all debt using the Debt Snowball
BS3 Three to six months of expenses in savings
BS4 Invest 15 percent of household income into Roth IRAs and pre-tax retirement
BS5 College funding for children
BS6 Pay off home early
BS7 Build wealth and give! Invest in mutual funds and real estate

Hi all, can I join here? I’m afraid I don’t have time to read the whole thread, but I’ll just jump in where I can.

Short intro for me: I’m Brandy, married to Eric, no kids yet, but trying for number 1. (We’re on month two, 8dpo right now). Here we are with regards to the steps:

1.Saved $600 of $1000.
2.Just paid off all of our credit cards. The highest balance was $12,000, now it’s zero! I still have a student loan of $50,000. We’re paying $600 a month to pay it off in ten years, but obviously I would like to pay it off quicker.
3.We have around $10,000 in a mutual fund, but this normally goes in a money market account since it’s more liquid right?
4.My husband and I are currently both investing in our 401k plans at work. He has Roth IRA, I need to start one.
5.No kids yet, so no college funding. Would like to start one as soon as they’re born, but we might wait until I get school loan paid off.
6.Second year of 30 year mortgage.
7.Long time away!

I need to do a bit more research. We just started a budget this month. I’ve been in school for the past 7 years so we were living paycheck to paycheck. Now I’m out, and we’re excited about finally being in the “real world”.

Ok, this has gotten way too long. Glad to have found you all! Any and all advice would be appreciated!
brandyshea is offline  
Old 05-07-2008, 02:54 PM
 
Mama Rana's Avatar
 
Join Date: Aug 2004
Location: hanging out with the sinners
Posts: 939
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phathui5 View Post
QOTD: If you had to come up with $1000 by Monday, how would you do it?

(Then why not do it and apply it to your Baby Step?)
If I HAD to come up with $1000 by Monday.... I would take it out of my EF.
:

Good thought though. You definitely help us get GAZELLE. I spent the morning watching some DR youtube vids.... Very inspiring. My only "problem" was that most of them talked generally or about getting out of debt, and I'm on step 3: build full EF, so it wasn't as applicable. I need more help sticking to a budget. It might be time to get out the envelopes. I just spent $160 at Target buying stuff for the house: new hand towels cuz mine are all cruddy, some cloth "swiffer" pads, some spray bottles for home-made cleaners, a new body pillow [I need this to sleep comfortably because of my back problems and mine is SO flat it's not doing it's job anymore], a birthday present for DS's friend, diapers, toilet paper, toothbrushes, razors, flossers for DS, a new doormat for our newly finished basement...
The only "fun" things I bought was a new purse for me and a yoga strap [though I felt that was a need since mine is a little too short]. *sigh* So yeah. I picked up the cheapest version of each thing that I could find, and the TP, dipes, dental stuff, etc. was cheaper at Target than it would have been at the grocery store, but yeah. Frustrating.
Mama Rana is offline  
Old 05-07-2008, 05:29 PM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
brandyshea!

Have you read The Total Money Makeover?

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 05-08-2008, 12:05 AM
 
MyTwoAs's Avatar
 
Join Date: May 2004
Location: In my own little la-la land
Posts: 3,591
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phathui5 View Post
QOTD: If you had to come up with $1000 by Monday, how would you do it?

(Then why not do it and apply it to your Baby Step?)
Hmm, not sure I could, I've pretty much sold everything but the kids already hehe.

I could probably come up with a few hundred. Thanks for the motivation!
MyTwoAs is offline  
Old 05-08-2008, 01:26 AM
 
shanetedissac's Avatar
 
Join Date: Apr 2002
Location: Sandy Hook, CT
Posts: 797
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
So, I finally took the van in for repairs. As of last June it needed a new blower and such for the AC/heating unit. Well, as of yesterday it now needs: Brakes, rack and pinion, lots of pumps things, tires, timing belt, and the AC/heating unit stuff. They quoted me over $4500 of repairs. The van is worth $4000. It is not looking pretty so not in great condition. Good thing is that is is still running great. I don't see, hear, or feel any of these defects. Well, so I told the dealer that I don't want any of it done and called the local car shop. They said they could do it for less. I'm taking it in tomorrow and we are hoping that with the $1000 that we have save for the van that we can at least get the brakes done. Though we are not sure if we should do the timing belt first. I don't know what to put ahead of what. So, we get to fix our beater until we can save for a newer car. We are thinking about three years. We also need to do the roof on the house. It is great that we don't have to deal with bs#2 but this sucks.

Be well,

Shane

Shane - Homeschooling mom to three boys (12, 1-, 8) and living the open life with my husband.

shanetedissac is offline  
Old 05-08-2008, 01:45 AM
 
p1gg1e's Avatar
 
Join Date: Apr 2004
Location: Ohio
Posts: 2,217
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Hum...well we might be moving. We actually got an offer on our house LOL

Not sure if we will take it we would have to go into debt a bit to get out of debt more so after LOL...hum...( yes this is why I'm up so late ) :
p1gg1e is offline  
Old 05-08-2008, 11:27 AM
 
dex_millie's Avatar
 
Join Date: Oct 2006
Location: MD
Posts: 1,604
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by shanetedissac View Post
So, I finally took the van in for repairs. As of last June it needed a new blower and such for the AC/heating unit. Well, as of yesterday it now needs: Brakes, rack and pinion, lots of pumps things, tires, timing belt, and the AC/heating unit stuff. They quoted me over $4500 of repairs. The van is worth $4000. It is not looking pretty so not in great condition. Good thing is that is is still running great. I don't see, hear, or feel any of these defects. Well, so I told the dealer that I don't want any of it done and called the local car shop. They said they could do it for less. I'm taking it in tomorrow and we are hoping that with the $1000 that we have save for the van that we can at least get the brakes done. Though we are not sure if we should do the timing belt first. I don't know what to put ahead of what. ..................................
Be well,

Shane
Not sure about the the other stuff mentioned but I would suggest the brakes and timing belt if you can do them both. It is always good to have brakes working of course and worse case senerio if the timing belt broke(like what happened to me a few years back) the car well basically 'cut out' or not respond to the gas pedal but it should have enough movement that you can pull over.

I was lucky when mine burst, It was around a blind corner, then it just went and my car slowed, then a big concrete truck came around the corner saw me, blew his horn and tried to stop, thank goodness it had a very small dirt path to the side that I turned the car onto and parked. I was close to home so I just walk home(20-25mins up a steep hill) and my father took care of the rest.
dex_millie is offline  
Old 05-08-2008, 11:31 AM
 
brandyshea's Avatar
 
Join Date: Oct 2007
Posts: 109
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phathui5 View Post
brandyshea!

Have you read The Total Money Makeover?
I haven't, but I've read a lot on his website. I have a finance degree and an MBA and interned with a financial advisor, so I'm not really sure if there's anything the book can teach me that I don't already know. I just need to start putting the steps into action! We already live pretty frugally. I'm going to start cleaning out and ebaying things!
brandyshea is offline  
Old 05-08-2008, 12:10 PM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
QOTD: Why do you want to be debt-free?

I want to be debt free because I want to actually have money left over at the end of the month. I'm tired of having a zillion bills to pay. I'm tired of knowing that most of the payment that I send is going to interest. I want dh and I to feel like we're free to pursue other things if we want to, school, different careers, etc.

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 05-08-2008, 12:14 PM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,019
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Oh, and I paid off Best Buy yesterday and sent $600 to the Room Store, so now we look like this:

BS1: DONE!!
BS2:
$466 Capital One- killed!!!
$614 Van loan - killed!!!
$1091 Best Buy- killed!!!

$700/$1770 Midwife
$600/$2184 HSBC Retail Services
$4249.63 Needed to get out of Truck loan- sitting in savings until we decide whether to sell it or keep it

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
phathui5 is offline  
Old 05-08-2008, 01:11 PM
 
RoadWorkAhead's Avatar
 
Join Date: Sep 2005
Location: Florida
Posts: 1,995
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phathui5 View Post
QOTD: Why do you want to be debt-free?
.
So we can realize a goal of homesteading in the mountains, so we don't feel tied to banks and lenders, etc., so we can look at life from a more "What do you want to do? " perspective than a "What do I have to do to survive?" one
RoadWorkAhead is offline  
Old 05-08-2008, 01:23 PM
 
TanyaS's Avatar
 
Join Date: Jun 2003
Location: in a people house
Posts: 3,347
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Quote:
Originally Posted by phathui5 View Post
QOTD: Why do you want to be debt-free?
So we can live like no one else.

Debt, even small debt, is a burden. It's weight I never want to carry again.
TanyaS is offline  
Old 05-08-2008, 01:26 PM
 
brandyshea's Avatar
 
Join Date: Oct 2007
Posts: 109
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phathui5 View Post
QOTD: Why do you want to be debt-free?
Because I hate the feeling of so many bills hanging over our heads every month. I want security to know that if my husband or I lose our job, we won't have to go into panic mode!
brandyshea 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