Dumping Debt and Building Wealth with Dave Ramsey ~ May - Page 5 - Mothering Forums

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#121 of 309 Old 05-10-2008, 02:47 PM
 
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steps

1-done-current
2-done-1000
3-currently doing. plan to be done by 2015
4-someday
5-someday
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#122 of 309 Old 05-10-2008, 05:37 PM
 
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Well I'm done for now :P

We are in contract. We will be moving in less then a month, and then I'll come back
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#123 of 309 Old 05-10-2008, 07:20 PM
 
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QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
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#124 of 309 Old 05-10-2008, 07:20 PM
 
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BS 1: done!!
BS 2: 35,900 to go

Baby steps, right? Just baby steps...

Proud Catholic, homeschooling, RN-student mama of
DS 10 reading.gif  DS 8 fencing.gif DS 5, DD 3 energy.gif and a new DS  belly.gif 3/2011
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#125 of 309 Old 05-10-2008, 11:13 PM
 
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QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
Probably when I first realized and accepted that I am not entitled to anything, just by default of being alive. And the concept of my parents working for 35 years to have a nice house, so therefore, I should not expect to be handed the same nice house and furniture that they have after only working for 4 years

It all comes down to me being selfish and feeling entitled. I am really working on that. Trying not to be selfish and feeling entitlted to things has saved me so much money. You just can't imagine.

ribbonpurple.gif  "And the day came when the risk to remain tight in a bud was more than the risk it took to blossom." Anais Nin
   
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#126 of 309 Old 05-11-2008, 01:50 AM
 
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QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
i guess that never really happened. since we started with minimal debt its more of a "keeping myself accountable" goal than Aha! kind of thing. its just tightening the budget i already had in place and the purposeful movement of money to pay down our cars.
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#127 of 309 Old 05-11-2008, 04:36 PM
 
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QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
OK, I guess I asked a confusing question...
What I meant was what did it feel like when you "got it?"
I remember a year ago I was back at work from my maternity leave and we were trying to figure out if I could quit working my part time job or not. It is almost laughable to me now how ignorant we were. We had no written budget, we paid the bills, (mostly on time) and then "guessed" if we had enough money left over to eat out Thai food or whatever.
I quit work anyway and we prayed we would still be able to pay the mortgage and buy groceries, but we thought it was important enough for me to be home with our three boys to wing it.
We limped along and watched our money and paid the bills all summer and then started TTMM last Oct.
OMG! We are idiots! We have plenty of money. The A-HA! moment for me was when I realized we had paid all our bills, I had bought a week or two of groceries, the cars had gas and we would still have some money coming in later in the month. And that was a good feeling. I didn't feel like I needed to go buy things to fill myself or my house up. My paycheck from work used to go to Caribou coffee shop and Target. :
It was awesome to realize that we had paid off a small balance Best Buy card several months early and hadn't had to eat dog food to do it.
That's when I turned into a zealot. In a good way.
Anyone else have any stories????
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#128 of 309 Old 05-11-2008, 04:36 PM
 
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Oh, and Happy Mother's Day!
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#129 of 309 Old 05-12-2008, 01:20 AM
 
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QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
Umm, yesterday? hehe

In May of 2006 my husband and I purchased a brand new Infiniti G35 Coupe and then over the next twelve months put more than $10k into it to customize it for car shows. It was fun, not smart, but certainly fun.

As of yesterday I no longer drive an Infiniti. I still have a car loan but between insurance, car payment and maintenance on the G35 I'll be saving about $700/mo that I can put onto a snowball. I was a little nauseous when I sold it and that is when I realized how silly I was to have such an emotional attachment to a vehicle.

Now we'll be able to clear BS2 in about 18 months plus cash flow my college (going part-time, will graduate in two years).
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#130 of 309 Old 05-12-2008, 01:20 AM
 
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Oh, and Happy Mother's Day!
Yes Happy Mother's Day to all the moms.
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#131 of 309 Old 05-12-2008, 12:01 PM - Thread Starter
 
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QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
After dh read The Total Money Makeover and got on board with the idea of doing the budget together. After the first two months, we found that we had money for everything we needed with extra left over to snowball. Us thinking we were broke had come from us not communicating about money.

Midwife (CPM, LDM) and homeschooling mama to:
13yo ds   10yo dd  8yo ds and 6yo ds and 1yo ds  
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#132 of 309 Old 05-12-2008, 12:13 PM
 
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Today we decided to take our emergency fund and stimulus check down to $1000 and use the rest to pay off our credit card. So here we are:

StrawberryFields
BS1 $1,000 to start an Emergency Fund
DONE

*CURRENT STEP BS2* Pay off all debt using the Debt Snowball
Credit Card: $1,400.00 DONE
Car Loan #1: $5,000
Car Loan #2: $15,000

BS3 Three to six months of expenses in savings
BS4 Invest 15 percent of household income into Roth IRAs and pre-tax retirement (6% current /15% goal)
BS5 College funding for children
BS6 Pay off home early
BS7 Build wealth and give! Invest in mutual funds and real estate

mommy to ds 11/05, dd1 01/08, and dd2 01/10!
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#133 of 309 Old 05-12-2008, 04:41 PM
 
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QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
I'd say just in the last month I really got how powerful the snowball can be. We inherited a little bit of money from my grandmother, and used that as well as our tax return to pay off 4 of our credit cards. Realizing how much of a difference that made to our cash flow got me really excited, and I can't wait to knock out some more of them. Around the same time, I realized that I was writing our 25 checks a month just for bills - no wonder I felt like it was overwhelming, had a hard time getting everything paid on time, etc.

I would say those two things were the "A-HA!!" for me, and it has made it so much easier to continue with it.
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#134 of 309 Old 05-12-2008, 06:50 PM
 
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Awesome!!!
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#135 of 309 Old 05-12-2008, 07:16 PM
 
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Hi everyone! I'm new to this thread and I am very excited to jump in! My dh and I did the FPU several months ago, so we know all about Dave Ramsey and are looking forward to having FREEDOM! Anyway, I'll post more later. I have a sick child that needs her mama, AND we'll be working on our new budget tonight, so I'll post our baby steps and whatnot later.
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#136 of 309 Old 05-13-2008, 01:02 PM - Thread Starter
 
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Good news!

I got an email from a mom that I've babysat for asking me to watch her kids over summer break. It'll be $300 a week for 10 weeks and will give us a big shovel over the summer to work on this debt.

Midwife (CPM, LDM) and homeschooling mama to:
13yo ds   10yo dd  8yo ds and 6yo ds and 1yo ds  
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#137 of 309 Old 05-13-2008, 01:12 PM
 
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Great news!

My BP is finally under control! This will drastically reduce my medical bills because I wont have to go to the doctor so many times a month to get checked! I am so happy

ribbonpurple.gif  "And the day came when the risk to remain tight in a bud was more than the risk it took to blossom." Anais Nin
   
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#138 of 309 Old 05-13-2008, 01:18 PM
 
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Best news! - I couldn't help it.

Just saying I happy for you two

phathui5 - That is great. It is always good to get extra money. Good for you.

~*Jaime - This great your BP is under control and that you are feeling better. More money for you.
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#139 of 309 Old 05-13-2008, 01:25 PM
 
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Probably when I first realized and accepted that I am not entitled to anything, just by default of being alive. And the concept of my parents working for 35 years to have a nice house, so therefore, I should not expect to be handed the same nice house and furniture that they have after only working for 4 years

It all comes down to me being selfish and feeling entitled. I am really working on that. Trying not to be selfish and feeling entitlted to things has saved me so much money. You just can't imagine.
I found your post really insightful. It would be so helpful if our kids would learn this idea along with money management skill before they leave home. It is hard just starting out. Dh and I had our house reasonably done and furnished and then it burned down. So, now it is like we are starting over. We went ahead and made the place bigger-as our original house was not built with kids in mind. so, even though we had insurance we still didn't get this place all the way finished. So, now I find myself back in that place trying to restrain myself from wanting to finish everything at once. I could spend and spend and spend and still not have it all the way done. I just have to be patient and learn to appreciate the moment and be happy with what we have, before just moving on to wanting something else.

So, I am trying to keep this in mind as I am trying to keep the savings up high and spending as low as I can, all the while doing those household jobs a bit at a time. This year I have started sending money straight to the savings account. So, our savings account is doing well, but our checking account is down, so we will need to spend the next couple of months being "good" to get it back up again.



phathiu5- that is so awesome an extra $3000 will go a long ways, I bet you are so excited!

Jaime- that is great about your bp for your health and pocket book.

Happily Married to my : 11 yrs- Mama to wild-eyed monkey boy 7-04, fiery little girl 4-07, and the happy smiley baby that sleeps 11-09!
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#140 of 309 Old 05-13-2008, 01:25 PM
 
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I haven't posted in forever but just wanted to woohoo I paid off a card yesterday!!
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#141 of 309 Old 05-13-2008, 01:44 PM - Thread Starter
 
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jeca- Congratulations!

Jaime- I'm glad to hear you're doing better.

Midwife (CPM, LDM) and homeschooling mama to:
13yo ds   10yo dd  8yo ds and 6yo ds and 1yo ds  
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#142 of 309 Old 05-13-2008, 01:54 PM
 
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Good news!

I got an email from a mom that I've babysat for asking me to watch her kids over summer break. It'll be $300 a week for 10 weeks and will give us a big shovel over the summer to work on this debt.
Fantastic news! That is definitely a great shovel.

Quote:
Originally Posted by ~*Jaime View Post
Great news!

My BP is finally under control! This will drastically reduce my medical bills because I wont have to go to the doctor so many times a month to get checked! I am so happy
Woohooo, yay for better health and ultimately lower medical bills.

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I haven't posted in forever but just wanted to woohoo I paid off a card yesterday!!
Congrats! *jealous*
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#143 of 309 Old 05-14-2008, 10:44 PM
 
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We received our stimulus check and I have paid off a $1422.00 credit card and a $600.00 University bill plus funded our emergency fund!!! (My hubby worked extra this month as well) I'm so excited this will give us a great jump start!!
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#144 of 309 Old 05-14-2008, 11:12 PM
 
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Tomorrow is payday and I went over the budget and tentatively we should be putting $400 toward debt this week, 70 next week, and 50 the following week. We have never stuck to a plan before like this, I am really praying that we stay on the program. We are doing so good so far. Between this and the no-spend challenge I have really decided I am committed to this! If I make it to the end of the month and honestly put all the money I have budgeted toward our car loan, it will be the first time I made a plan and stuck to it!

mommy to ds 11/05, dd1 01/08, and dd2 01/10!
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#145 of 309 Old 05-14-2008, 11:18 PM
 
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our stimulus check is still MIA! waiting, waiting, waiting...not that its slated for anything....

so heres our budget for 15-29

Food 130
Gas 50
Car ins 205
HS int. 30
Elect. 67
Save for mortg. 550
Credit card 403
savings 50
Bills 1435
paid 1360
Cash Left over 204

leaves us $80 which will be 40 for eating out and hopefully i can save the rest but its there for a cushion for if (when?) i overspend. i ended up spending an extra $40 although it seems like it was more than that....well at least i am doing better!
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#146 of 309 Old 05-15-2008, 02:07 AM
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We are still working on BS2. I got our tax returns and paid off DH's cc. We will be able to pay off a few more small things I think, I am just deciding which ones.
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#147 of 309 Old 05-16-2008, 03:54 AM
 
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In a little less than 12 hours (after we close on a piece of land we are selling), the debt snowball will get an enormous boost. Just finished running all of the numbers, as I wanted all proceeds allocated before they were actually in hand. In addition to paying off some debt items, the 3-6 mo. EF will also get an infusion of cash. Very excited. Next step will be to sell a rental house over the summer.

SNOWBALL PROGRESS...

Since the official launch of our snowball on 2/15/08:

Snowball - Phase 1 (short-term): $9,249.26 PAID OFF

Snowball - Phase 2 (long-term - mortgages for 3 properties, HELOC, + grad school loan): $50,757 PAID OFF

TOTAL PAID OFF: $60,006.26

Snowball Goal for May: break $60K - DONE!

Kim
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#148 of 309 Old 05-16-2008, 03:59 AM
 
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QOTD: What was your "A-HA!" moment when you got the concept of the debt snowball and how you could use it to pay down your family's debt?
My "A-HA!" moment came a few months ago (February 15th, to be exact), when I finally got around to creating a Debt Snowball tracker in Excel. At that point, I had probably read TMM at least 3 times, and completely agreed with the concept of the Baby Steps. However, until I actually put it into Excel and began watching the "paid off" total grow, I really did not appreciate the power of the snowball. As an added bonus, the snowball has given me focus and security, knowing there is an end to this debt in sight.

Kim
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#149 of 309 Old 05-16-2008, 10:39 AM
 
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We got stimulated!!!!! $1477.70. Odd amount, but whatever. I put most of it towards our full EF, so we're now at $13,425/$15,000.
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#150 of 309 Old 05-16-2008, 10:50 AM
 
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I was on the April list but can't find my name on this list, can I be added? We paid off our Target card and our Home Depot Card!!

Bully_Lover
0: Get current on bills: Always done
1: $1,000 to start an Emergency Fund $2000/$2000
2: Pay off all debt: working on it! Our goal is to be debt free March 2009
Target - PAID OFF!!
Home Depot - PAID OFF!

Visa #1 - $1100 (Paid off by Sept)
Car Loan - $7200
Visa #2 - $7700

In the future....

3: Three to six months of expenses in savings Not Yet! $0/$15000
4: 15% income into retirement: Ongoing 401K
5: College funding for children: Transferring their accounts to Education IRAs but funding will be on hold until next year
6: Pay off home early Can't Wait!
7: Build wealth and give! Invest in mutual funds and real estate. Can't Wait!
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