Dumping Debt and Building Wealth with Dave Ramsey ~ May - Page 7 - Mothering Forums
Forum Jump: 
Reply
 
Thread Tools
#181 of 309 Old 05-21-2008, 12:28 AM
 
Purple*Lotus's Avatar
 
Join Date: Nov 2007
Location: Fluffyville
Posts: 5,734
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
*pokes TattooedMama because I feel like poking someone*

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
   
Purple*Lotus is offline  
#182 of 309 Old 05-21-2008, 12:43 AM
 
rosie_plus_one's Avatar
 
Join Date: Aug 2005
Posts: 562
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I keep noticing on people's reports of their baby steps that they are working on Baby Step 3 (fully funded emergency fund) before they are finished with Baby Step 2. I've also seen several people contributing to retirement and college savings for kids.

While I understand why you are doing that, I did want to make sure that you know that Dave Ramsey does not advocate jumping ahead. He recommends postponing retirement contributions until you are completely out of debt. He would most likely tell you to cash out any savings you have over $1,000 and put it straight onto your smallest debt.

Just an FYI ....
rosie_plus_one is offline  
#183 of 309 Old 05-21-2008, 05:52 AM
 
sarafi's Avatar
 
Join Date: Feb 2008
Posts: 468
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by rosie_plus_one View Post
I keep noticing on people's reports of their baby steps that they are working on Baby Step 3 (fully funded emergency fund) before they are finished with Baby Step 2. I've also seen several people contributing to retirement and college savings for kids.

While I understand why you are doing that, I did want to make sure that you know that Dave Ramsey does not advocate jumping ahead. He recommends postponing retirement contributions until you are completely out of debt. He would most likely tell you to cash out any savings you have over $1,000 and put it straight onto your smallest debt.

Just an FYI ....
You are totally right! We are out of step, and I get where he is coming from but.....

If I didn't take off the top for my husbands IRA we would look like we had more money, and if I didn't take out money monthly for IRA's it would look the same and I would have a much harder time convincing my husband to stick to any reasonable budget.

We'll see what happens later this month if I can convince him to actually read the book! I do all the budgetting and bill paying alone now and it would be nice not to have to be the bad-cop anymore.

That said I really do like the plan and think we will be out of debt much sooner this way. Good call though on the fact that some of us are doing it out of order.
sarafi is offline  
#184 of 309 Old 05-21-2008, 09:20 AM
 
TattooedMama's Avatar
 
Join Date: Aug 2005
Location: knitting,cooking,laundry,rinse,repeat
Posts: 1,824
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by ~*Jaime View Post
*pokes TattooedMama because I feel like poking someone*
You must have been at work, lol. :
TattooedMama is offline  
#185 of 309 Old 05-21-2008, 09:50 AM
 
StrawberryFields's Avatar
 
Join Date: Apr 2005
Posts: 4,455
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by rosie_plus_one View Post
I keep noticing on people's reports of their baby steps that they are working on Baby Step 3 (fully funded emergency fund) before they are finished with Baby Step 2. I've also seen several people contributing to retirement and college savings for kids.

While I understand why you are doing that, I did want to make sure that you know that Dave Ramsey does not advocate jumping ahead. He recommends postponing retirement contributions until you are completely out of debt. He would most likely tell you to cash out any savings you have over $1,000 and put it straight onto your smallest debt.

Just an FYI ....
I can only speak for myself when it comes to the retirement contributions. While it is true that we are still working on paying down our debts (car loans), I just can't agree with Dave Ramsey if he suggests postponing ALL contributions at this time. We are continuing to make our pre-tax contributions to our 401 (k) in order to get the maximum employer match. I don't see how passing up "free" money in order to get a much smaller, taxed amount to put toward debt would be the better choice.

mommy to ds 11/05, dd1 01/08, and dd2 01/10!
StrawberryFields is offline  
#186 of 309 Old 05-21-2008, 10:31 AM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,471
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by rosie_plus_one View Post
I keep noticing on people's reports of their baby steps that they are working on Baby Step 3 (fully funded emergency fund) before they are finished with Baby Step 2. I've also seen several people contributing to retirement and college savings for kids.

While I understand why you are doing that, I did want to make sure that you know that Dave Ramsey does not advocate jumping ahead. He recommends postponing retirement contributions until you are completely out of debt. He would most likely tell you to cash out any savings you have over $1,000 and put it straight onto your smallest debt.

Just an FYI ....
I'm in baby step 2 and contributing just enough to dh's 401K to get the employer match. We aren't doing college savings for kids until we're done step 3 and up to 15% on step 4.

I don't understand doing step 3 before step 2 either. Not only are you paying more in interest on debt than your money would make in savings, but once those debt payments are gone, then you're free to really save.

Midwife (CPM, LDM) and homeschooling mama to:
13yo ds   10yo dd  8yo ds and 6yo ds and 1yo ds  
phathui5 is offline  
#187 of 309 Old 05-21-2008, 10:45 AM
 
TattooedMama's Avatar
 
Join Date: Aug 2005
Location: knitting,cooking,laundry,rinse,repeat
Posts: 1,824
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We too have only the BEF of $1000 and are not skipping steps by working on our bigger savings of 3-6 months of expenses. We do contribute $100 monthly to a ROTH IRA because DH is self employed and there is no one else (company match) saving for our retirement. We had talked about halting it, but it works for us. We do not have a huge amount of debt in the grand scheme of things and we would probably be using that hundred on other non-necessary lattes and blow money honestly.
TattooedMama is offline  
#188 of 309 Old 05-21-2008, 11:42 AM
 
crazyeight's Avatar
 
Join Date: Mar 2006
Posts: 2,850
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
its never been on my list since we just started it but our TSP was FORCEABLY started for us. its only $50/mo though.
crazyeight is offline  
#189 of 309 Old 05-21-2008, 12:20 PM
 
Purple*Lotus's Avatar
 
Join Date: Nov 2007
Location: Fluffyville
Posts: 5,734
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by TattooedMama View Post
You must have been at work, lol. :
Actually no We are losing out net connection at work. I am bummed about it

We also contribute to retirement. DH wont budge on it. I have asked him about a million times. I pick my battles though.


Right now I am slowing working through my $1800 insurance deductable : So far the bills have been the smallest debt, so I have been knocking them out as they have come in.

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
   
Purple*Lotus is offline  
#190 of 309 Old 05-21-2008, 01:22 PM
 
willowbean's Avatar
 
Join Date: Apr 2008
Location: Spokane, WA
Posts: 127
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
For us the chunk that's in the BS3 is a temporary vital safety net.
My DP becomes officially unemployed in the 31st of this month, and while she's actively job hunting we have some uncertainty how next month is going to play out.

That second EF is out buffer so that even if she doesn't have a stable job and can't temp for a few weeks we're still able to make the payments on all our debts.
willowbean is offline  
#191 of 309 Old 05-21-2008, 01:33 PM
 
MyTwoAs's Avatar
 
Join Date: May 2004
Location: In my own little la-la land
Posts: 3,608
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
So Murphy visited us in a most unusual way and some people would perhaps not consider it worthy of tapping into the emergency fund but hey, it's my emergency fund - right? hehe

My husband is out of town on business (again) - he's used about 50% of his line of credit on a card in the last month all on business trips (I mentioned my issue with this previously). Well evidently it freaked the credit card company out so they lowered his line of credit to like $900 over his current balance. Uhh...he's in New Orleans with only that credit card (his stripe on his debit card doesn't work and the new one didn't come in in time). Hotel is going to run about $800 then he's got parking, the rental car, etc, etc. Nice. Grr....

He called them to explain that he's out of town on business and that all of the charges will be paid off but they aren't budging so I took $1k of our BEF (we have a bit more than that saved because our expenses/income are a bit higher) and made a payment on his card so that he can get home from his business trip.

We'll have the BEF re-funded within 30 days but the whole scenario just has me going GRRRR, so glad I "found" this concept of no debt and am working on getting out from under the snakes.
MyTwoAs is offline  
#192 of 309 Old 05-21-2008, 02:32 PM
 
lauriem33's Avatar
 
Join Date: Nov 2005
Location: Western WI
Posts: 611
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
For us, doing bs3 before 2 is in part to make ME feel more secure psychologically. I just don't feel that having $1000 in saving for emergencies is enough. Granted, our debt is only student loan debt so there is that tax deduction and some financial people consider it ok debt, like a mortgage. We contribute to retirement up to matching. When we had a ton of cc debt we didn't contribute at all and it kills me that we were so far in the hole that we couldn't afford to do that and passed up all that free money like a pp mentioned.

dhinderliter, we have TSP too, you or dh must be another gov. worker? :-)

read.gif mama to 2 dust.gifhomeschool.giftreehugger.gifsaynovax.gifRainbow.gif
lauriem33 is offline  
#193 of 309 Old 05-21-2008, 03:14 PM
 
crazyeight's Avatar
 
Join Date: Mar 2006
Posts: 2,850
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
yeah dh is military.

i downloaded quicken! now to play...hehe. i added in all my bills and income and accounts. what else can i do??!!! hehe...i will admit i am a bit of a software nerd...
crazyeight is offline  
#194 of 309 Old 05-21-2008, 03:14 PM
mtm
 
mtm's Avatar
 
Join Date: Dec 2003
Posts: 1,481
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
we do education fund and retirement fund for dh at the same time we pay off our ccs b/c dh's employer matches his contributions and b/c the kids gran helps with their education fund. Dave is great but I don't think its an all or nothing plan.
mtm is offline  
#195 of 309 Old 05-21-2008, 04:15 PM
 
TattooedMama's Avatar
 
Join Date: Aug 2005
Location: knitting,cooking,laundry,rinse,repeat
Posts: 1,824
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by willowbean View Post
For us the chunk that's in the BS3 is a temporary vital safety net.
My DP becomes officially unemployed in the 31st of this month, and while she's actively job hunting we have some uncertainty how next month is going to play out.

That second EF is out buffer so that even if she doesn't have a stable job and can't temp for a few weeks we're still able to make the payments on all our debts.
Willowbean, this is what DR calls "the storm on the horizon" and is a perfectly acceptable thing to do under the circumstances. Best wishes on your DP"s job hunting.
TattooedMama is offline  
#196 of 309 Old 05-21-2008, 04:18 PM
 
TattooedMama's Avatar
 
Join Date: Aug 2005
Location: knitting,cooking,laundry,rinse,repeat
Posts: 1,824
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by mtm View Post
we do education fund and retirement fund for dh at the same time we pay off our ccs b/c dh's employer matches his contributions and b/c the kids gran helps with their education fund. Dave is great but I don't think its an all or nothing plan.
No, everyone is free to do what they feel is best for them. Heck even Dave Ramsey says not to blindly listen to anyone, to do you homework.
But it is a Total Money Makeover thread so we try and point out the inconsistencies sometimes when they crop up so we can all learn together.
Best, :
Jessica
TattooedMama is offline  
#197 of 309 Old 05-21-2008, 05:27 PM
 
dex_millie's Avatar
 
Join Date: Oct 2006
Location: MD
Posts: 1,643
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by rosie_plus_one View Post
I keep noticing on people's reports of their baby steps that they are working on Baby Step 3 (fully funded emergency fund) before they are finished with Baby Step 2. I've also seen several people contributing to retirement and college savings for kids.

While I understand why you are doing that, I did want to make sure that you know that Dave Ramsey does not advocate jumping ahead. He recommends postponing retirement contributions until you are completely out of debt. He would most likely tell you to cash out any savings you have over $1,000 and put it straight onto your smallest debt.

Just an FYI ....
I see your point as I also agree and would want to just put all our extra on debt. I have a husband who all of a sudden when hearing we will be CC debt free this friday, decided he wanted us to start saving more since we just owe his family next and most people don't see Student loans as such a big deal to hurry pay it off. I have to compromise w/ him too, I cannot make him feel like Dave says this so it is this way and you have NO say. So he agreed with me giving $800 a month to his family and saving $500(which I guess will go to the Fully Funded). He just wants that security.

My plan was to have his family paid off this year, according to the new plan now I may be $1000 short. But DH did say depending on our situation at the time we could take out the $1000 at the end to finish the payment.
dex_millie is offline  
#198 of 309 Old 05-21-2008, 11:25 PM
 
lauriem33's Avatar
 
Join Date: Nov 2005
Location: Western WI
Posts: 611
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by dhinderliter View Post
i downloaded quicken! now to play...hehe. i added in all my bills and income and accounts. what else can i do??!!! hehe...i will admit i am a bit of a software nerd...
Which version did you get? You'll have to let me know how you like it because this is what I'm thinking of getting for us too. I checked out Amazon and none of the money software gets very good reviews except YNAB but I'm thinking a simple version of quicken is the best fit for us.

read.gif mama to 2 dust.gifhomeschool.giftreehugger.gifsaynovax.gifRainbow.gif
lauriem33 is offline  
#199 of 309 Old 05-22-2008, 12:02 AM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,471
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
For us, doing bs3 before 2 is in part to make ME feel more secure psychologically. I just don't feel that having $1000 in saving for emergencies is enough.
I don't think it's enough either. I think the idea behind the $1000 BEF is that it's enough to cover most small emergencies (car repair, doctor bill) and not having "enough" in savings while you pay off debt will light a fire under your butt to get it done quickly.

Also, for many people, saving the $1000 BEF is more than they've saved ever. I think we'd be suprised (or not suprised) at how many people don't even have that in savings somewhere.

Midwife (CPM, LDM) and homeschooling mama to:
13yo ds   10yo dd  8yo ds and 6yo ds and 1yo ds  
phathui5 is offline  
#200 of 309 Old 05-22-2008, 12:21 AM
 
crazyeight's Avatar
 
Join Date: Mar 2006
Posts: 2,850
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by lauriem33 View Post
Which version did you get? You'll have to let me know how you like it because this is what I'm thinking of getting for us too. I checked out Amazon and none of the money software gets very good reviews except YNAB but I'm thinking a simple version of quicken is the best fit for us.
i got the newest one...not sure which. a friend sent it to me so i didn't get all the specs
crazyeight is offline  
#201 of 309 Old 05-22-2008, 08:35 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 StrawberryFields View Post
I can only speak for myself when it comes to the retirement contributions. While it is true that we are still working on paying down our debts (car loans), I just can't agree with Dave Ramsey if he suggests postponing ALL contributions at this time. We are continuing to make our pre-tax contributions to our 401 (k) in order to get the maximum employer match. I don't see how passing up "free" money in order to get a much smaller, taxed amount to put toward debt would be the better choice.
I totally agree. I joined this list not because I'm a Dave Ramsey fanatic, but because he's got clearly defined goals and this is a group of wonderful people who are working toward something positive (and all of you help me work toward something positive, too!). His steps work for a lot of people, but not for everyone. We don't view credit cards as awful as long as they're paid off every month, and we are generally disciplined enough to do it. Since joining this thread, we've done it. As far as skipping ahead to retirement savings, we get 100% employer match up to 10% so it would be idiotic for us not to take advantage of that. Add the compound interest factor that we'd lose out on if we waited and this is a no brainer for us. My husband feels better about putting $100/mo into college savings for our kids (even though I financially disagree with this choice, like Jaime said, pick your battles, ha ha). So I don't think that any of us need to do everything in order to keep supporting each other on our own paths to financial freedom and wealth!
JackieR is offline  
#202 of 309 Old 05-22-2008, 10:14 AM
 
dex_millie's Avatar
 
Join Date: Oct 2006
Location: MD
Posts: 1,643
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
So I just sent the last payment to our WaMu card. This payment will make us Credit Card debt free. But I do not feel excited at all. DH wants to buy a scooter and put it on a CC. First he thought that it was 0% APR I told him no it is only 0% that was for balance transfer. Now he is thinking we should get a NEXT CC with a 0% intro just to buy a freaking scooter that we can raise the money in a month and a half for:. I just don't get it. He thinks it is worth it in the long run(yeah a month and a half) and there is no difference between putting it on a 0% CC and saving up. The thing is that he was agreeing w/ what I was saying about no CC only in Emergencies and to save up for what we need. Know all of a sudden, I am in a bubble and in this instant it is better to do.

Am I missing something. Is it worth it, with gas prices and stuff?

How do you keep motivated with crap like this keep happening. I just feel like NOT paying his family as soon as I planned since he seemed to not care. Maybe I should just pay my student loans and let him decide were his family fit in.
dex_millie is offline  
#203 of 309 Old 05-22-2008, 11:57 AM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,471
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
How much is the scooter? Have you talked to him about setting aside money and paying for it in cash? Maybe even put the snowball on hold and use that money (while still paying the minimums) to save up.

Midwife (CPM, LDM) and homeschooling mama to:
13yo ds   10yo dd  8yo ds and 6yo ds and 1yo ds  
phathui5 is offline  
#204 of 309 Old 05-22-2008, 12:02 PM
 
crazyeight's Avatar
 
Join Date: Mar 2006
Posts: 2,850
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
you can easily trick him! (not meanly) say "OK! we'll get you a scooter for fathers day!" course then he has to wait for it but it gives you about a month before you have to buy it and then you can put the rest on the credit card and that gives you another 30 days of no interest. VOILA everyone gets what they want.

honestly if MY dh were to say he wanted a scooter (or any other super gas saver) i would jump for joy. i suggested a scooter but no go. he spends about $250/mo on gas (possibly more) and i would be so happy to spend $100 or less.
crazyeight is offline  
#205 of 309 Old 05-22-2008, 12:22 PM
 
dex_millie's Avatar
 
Join Date: Oct 2006
Location: MD
Posts: 1,643
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phathui5 View Post
How much is the scooter? Have you talked to him about setting aside money and paying for it in cash? Maybe even put the snowball on hold and use that money (while still paying the minimums) to save up.
It is $1500. Yes I talked to him about setting the money aside. He thinks it is better to get it now. By tommorrow we will be CC debt-free. Only the Student loans will be kept on a min. payment. And we was already not making payments to his family, I was going to start that w/ my next paycheck.

I am just stunned that he would want to get a NEXT CC just to get a 0% APR for this scooter which will only take us a month and a half to get.

Quote:
Originally Posted by dhinderliter View Post
you can easily trick him! (not meanly) say "OK! we'll get you a scooter for fathers day!" course then he has to wait for it but it gives you about a month before you have to buy it and then you can put the rest on the credit card and that gives you another 30 days of no interest. VOILA everyone gets what they want.

honestly if MY dh were to say he wanted a scooter (or any other super gas saver) i would jump for joy. i suggested a scooter but no go. he spends about $250/mo on gas (possibly more) and i would be so happy to spend $100 or less.
Dh wouldn't buy the father's day thing and he would know what I am trying to do. He is not big on ANY of those types of holidays or birthdays. It is a good thing is mother is born on Christmas day or he would forget that just like he does his brother own(Every year I have to tell him his brother birth day, yes he forgets what day his brother was born on EVERY YEAR).

But in his defense I do see where he is coming from. We spend about $70 a month for the metro. I also have to get up every morning to drop him to the metro and pick him up(it is about a 5min drive). And he also was taking a class on Tuesday nights(he will resume in the fall).
dex_millie is offline  
#206 of 309 Old 05-22-2008, 02:24 PM
 
althara's Avatar
 
Join Date: Jan 2007
Location: Oakland, CA
Posts: 452
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Hi everyone. I just finished reading TMMO a few days ago. I'm itching to be able to sit down with DH and create a zero balance budget.

The zero balance budget kind of scares me though because we have such a high food expense (due to laziness and eating out) I'm not sure how to budget that line item.

BS0: Need DH to come back into town, but I'm working on a outline. Including all the things we should have like wills, life insurance, etc..
BS1: $1,000 to start an Emergency Fund
I think we have the money, need to find a safe place to put it.
BS2: Pay off all debt using the Debt Snowball
84/84 CC1 PAID
184/184 CC2 PAID
196 CC3
1766 CC4
2094 CC5
2883 CC6
6641 CC7
4463 Loan
16736 Car
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 child
BS6: Pay off home early N/A
BS7: Build wealth and give!

Working mama treehugger.gif to K energy.gif (2/2007) and A diaper.gif (6/2013). Expecting stork-suprise.gif EDD 10/7/2014.
althara is offline  
#207 of 309 Old 05-22-2008, 02:30 PM - Thread Starter
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,471
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
althara

Midwife (CPM, LDM) and homeschooling mama to:
13yo ds   10yo dd  8yo ds and 6yo ds and 1yo ds  
phathui5 is offline  
#208 of 309 Old 05-22-2008, 04:50 PM
 
rosie_plus_one's Avatar
 
Join Date: Aug 2005
Posts: 562
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I was in no way trying to say that any of you were doing this "wrong" - you're paying down debt, that's AWESOME!! I had just noticed it quite a few times on people's "reports," and wanted to clarify the idea behind the steps - finish one completely before moving on to the next.

With that said, if I contribute $25 a week to my Roth, my boss gives me $50. Like many of you, this deal is too good for me to pass up, so I spend the $25 while I am still working on paying down my debt.

I could also see that if we were saving for a downpayment on a house, we may do half to that and half to the debt.

For the "storm on the horizon" situation - like at the end of a pregnancy, when you know you are going to have some time off work - I would save every penny and go back to making minimums on CCs.

On the scooter issue - we are dealing with the EXACT same debate in our household right now! "But I'd be saving so much in gas it would make the payment each month." UUUUGGGGHHH. I'd honestly rather pay for the gas for his commute right now and experience the value of paying CASH for something and actually owning it when you use it for the first time. We finally *own* our vacuum cleaner, our chest freezer, and our laptop.
rosie_plus_one is offline  
#209 of 309 Old 05-22-2008, 07:51 PM
 
dex_millie's Avatar
 
Join Date: Oct 2006
Location: MD
Posts: 1,643
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by rosie_plus_one View Post

..........................

On the scooter issue - we are dealing with the EXACT same debate in our household right now! "But I'd be saving so much in gas it would make the payment each month." UUUUGGGGHHH. I'd honestly rather pay for the gas for his commute right now and experience the value of paying CASH for something and actually owning it when you use it for the first time. We finally *own* our vacuum cleaner, our chest freezer, and our laptop.
That is how I feel too. Oh well...tommorrow he and a co-worker is going to buy one.
dex_millie is offline  
#210 of 309 Old 05-23-2008, 12:34 AM
 
mackysmama's Avatar
 
Join Date: Jan 2005
Location: SHHH... I'm reading Harry Potter
Posts: 1,699
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I've lurked on this thread for a while. I have his book on hold at the library but I'm hoping you can answer a few questions for me about the BS so I don't have to wait for the book to be available.

What should the $1000 emergency fund be used for and where should it be kept? It seems our monthly budget is always shot by unexpected expenses. We have the money to cover them but it is at the expense of paying down debt. For example, the toilet breaks, the garage door opener breaks, an unexpected medical bill, etc. (that was just this month).

Also, I'm not sure how to budget for all the unbudgeted things that come up - "oh, it's time to renew the museum membership - $75. Oh, it's time for the car registration - $75. Oh, it's time for the summer pool membership -$100".

I think we'd eat through our emergency fund in one month!

On paper, we should have enough money to put a good chunk down on debt every month. But, then all these things come up and I don't know how to deal with them. And then I get in the "oh, screw it" mode and get take out for lunch every day.

Also, is a home equity loan in the category of debt or mortgage?

I'd really appreciate some advice.
mackysmama is offline  
Reply

Quick Reply
Message:
Options

Register Now

In order to be able to post messages on the Mothering Forums forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
If you do not want to register, fill this field only and the name will be used as user name for your post.
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page


Forum Jump: 

Posting Rules  
You may post new threads
You may 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