Dumping Debt and Building Wealth with Dave Ramsey ~ May - Page 9 - Mothering Forums

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Old 05-26-2008, 07:42 PM
 
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Sorry to jump in here, not really a member of your club, but I have a Dave Ramsey question I'm hoping you guys can answer for me real quick. We're not 100% TTMMing (I hate beans and rice) but we have been doing the debt snowball for the last few years and are paying off our last debt, probably next month. The question is, where in the baby step process is buying a house? Or where should it fall? We've been paying rent for the last several years and I feel like once we've knocked off our last debt and saved up enough for a down payment, we should buy a house. Dh was on board but seems to be loosing his nerve, saying we should rent for another year or two so we can have a down payment AND a bunch of savings. What do you think?? Thanks for any replies!
i don't know what DR would say exactly BUT if you have no debt then your basically just saving either way? DR i do know is an avid real estate "pusher" so he would recomend buying. as a personal opinion i would say that if you bought within the next 6-12 months your going to get the best deal on your house, decent interest rates AND having a down payment. i would start researching grants and down payment assistence in your area. its free or extrememly low interest money to help first time home buyers (which is really only if you haven't PURCHASED in 3 yrs...even if you already own!) and that can help make you even more stable.
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Old 05-26-2008, 07:53 PM
 
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Saving for a house is baby step 3b. So first you'd build your 3-6 month emergency fund and then save for a down payment (some save for 100% down) Congrats on getting out of debt!
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Old 05-26-2008, 08:35 PM
 
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i would start researching grants and down payment assistence in your area. its free or extrememly low interest money to help first time home buyers (which is really only if you haven't PURCHASED in 3 yrs...even if you already own!) and that can help make you even more stable.
Well, we have purchased a home before, but it was more than 3 years ago. I had NO IDEA we could get anything for first time home buyers! Any tips on how to start researching grants and down payment assistance? I don't know where to begin.

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Saving for a house is baby step 3b. So first you'd build your 3-6 month emergency fund and then save for a down payment (some save for 100% down) Congrats on getting out of debt!
Thanks for the info, and thanks for the congrats! It has been in the works a long time with many bumps in the road. I don't want to screw things up by buying too soon, but I also feel like the time is right, both economically with the housing market, and for us as a family, to buy a house. We have a lot to consider. Thanks again!

"If you only knew how many things I want to say and don't, you'd give me some credit."
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Old 05-26-2008, 09:30 PM
 
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As some of you got started did things just make you cry? We cancelled our home warranty in March and of course *now* we could use it. I only have about 1/3 of this repair in cash. I know that the DR plan would say to save for the repair but I don't understand how that is possible with this type of repair here in the desert in Arizona (it has already been 110). This is a total reality check though as we can't cash flow a $2300 home repair on my husband's engineer salary. I was just really down in the dumps this morning.

I'm so sorry! What a discouraging situation.
You could ask if the repair place will let you make monthly payments until you can pay it off. Your $800 down payment ought to be a good indicator to them that you're able to do it.

Sarah , Wife to DH , Mommy to DS 01/07 , DD 04/09 , and Due 04/11
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Old 05-26-2008, 09:45 PM
 
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Well, we have purchased a home before, but it was more than 3 years ago. I had NO IDEA we could get anything for first time home buyers! Any tips on how to start researching grants and down payment assistance? I don't know where to begin.



Thanks for the info, and thanks for the congrats! It has been in the works a long time with many bumps in the road. I don't want to screw things up by buying too soon, but I also feel like the time is right, both economically with the housing market, and for us as a family, to buy a house. We have a lot to consider. Thanks again!
don't worry i didn't know either. i started training for a mortg. loan position and learned that. i don't have much info so i just googled "federal grant first time home buyer" and got a seemingly good site that has all the states and websites. i would research and find out whats fake and whats REALLY a grant (as with everything else grant doesn't mean free money anymore like its supposed to). i had NEVER heard of a mortgage company that had offered this so asking just any company really won't help unfortuneatly.
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Old 05-27-2008, 01:27 PM
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woohoo, one more week and we'll be in june! I get paid on the weds for my first cheque since being off for a few months. Will hopefully inspire us to get a bit more hardcore. We've been dragging.
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Old 05-27-2008, 02:03 PM
 
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I'm so sorry! What a discouraging situation.
You could ask if the repair place will let you make monthly payments until you can pay it off. Your $800 down payment ought to be a good indicator to them that you're able to do it.
Thanks HappyHelpmate - I asked and their response was "we offer financing" - ugh. LOL I "cheated" and put it on my amex card. I just can't fathom waiting - thankfully the part is in stock and they'll be here today. I figured out if I bust my behind and work a bit more (I'm a freelance writer so it's an at-home job) I can make the $1500 in the next 30 days so I'll definitely be writing. Of course I still have $1000 to put back into the BEF but I should have the majority of that within two weeks not counting what I need for the $1500 (I've earmarked funds from earlier this month to replenish the BEF). I feel a bit better about things this morning.
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Old 05-27-2008, 02:03 PM
 
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woohoo, one more week and we'll be in june! I get paid on the weds for my first cheque since being off for a few months. Will hopefully inspire us to get a bit more hardcore. We've been dragging.
Yay! Good luck getting more intense, of course you'll get fantastic support here to help ya with that.
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Old 05-27-2008, 02:41 PM
 
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Well it is official, my blood pressure is finally under control. I will save money now because I don't have to go back to the doctor for 3 months, instead of every three weeks (those co pays add up!).

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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Old 05-27-2008, 02:55 PM
 
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Well it is official, my blood pressure is finally under control. I will save money now because I don't have to go back to the doctor for 3 months, instead of every three weeks (those co pays add up!).
Congrats!
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Old 05-27-2008, 04:03 PM - Thread Starter
 
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Has anyone made up their June budget yet? Anyone willing to post it?

Dh and I will be doing ours Thursday or Friday and then I'll put it up.

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Old 05-27-2008, 04:04 PM
 
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Well it is official, my blood pressure is finally under control. I will save money now because I don't have to go back to the doctor for 3 months, instead of every three weeks (those co pays add up!).
Thats great!!
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Old 05-27-2008, 04:05 PM
 
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Has anyone made up their June budget yet? Anyone willing to post it?

Dh and I will be doing ours Thursday or Friday and then I'll put it up.
I did ours last night..I don't mind posting it, but have a crazy day so I will try and get to it later tonight!
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Old 05-27-2008, 04:12 PM
 
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I have not done my June budget yet. : Mainly because every cent not devoted to the roof over our heads or the bills to make the house run are going straight to my $1800 deductable

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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Old 05-27-2008, 07:42 PM
 
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I have separate thread about this but...

could you talk me through how you do the envelope system? Do you put it in weekly, monthly, or when you are paid (in our case, every other week). What do you do if there is surplus - do you put that amount less in the next time or do you have more to spend. What do you have envelopes for? Talk me through it, even what seems obvious! Thanks!
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Old 05-27-2008, 07:43 PM
 
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Our budget doesn't really change from month to month. Does everyone else have a different budget every month?

That is great news, Jaime!

Carrie, mom to Johnathan (7-02), Brodie (2-04), Kate (12-06), Jordan (9-08), (4-09) & Maggie (3-10)
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Old 05-27-2008, 08:32 PM
 
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We do have a different budget every month because some months DH gets 2 paychecks and then twice a year he gets 3. Plus some months we have car registration, life insurance premiums, etc - basically things that are quarterly or annualized but not monthly. I'm also a freelance writer so my income varies quite a bit but it goes to the snowball so it makes it easier to budget it out.

Here's our June zero-based budget:

Spouse Income: 6382.00 - 2 paycheck month
My Income: 1830.00 - projected if I meet my writing goals, this is 100% in my control though
Total Income: 8212.00

1st Mortgage - 1786.00
2nd Mortgage - 230.00
Car payment - 382.00
Car insurance - 0.00 (made changes to insurance so no payment this month)
Groceries - 450.00
Gas - 250.00 (dh drives a company truck w/company gas card)
Dining Out - 150.00 (I know, I shouldn't see the inside of a restaurant, this is down a lot from where we started, still working on it hehe)
Blow - 100.00
Medical - 100.00 (medicine/doctor copays)
HOA - 20.00
Cell - 75.00
Gym - 25.00
Storage - 58.00 (need to clear out storage and cancel this)
Electricity - 185.00
Sewer - 61.00
Exterminator - 39.00
Garbage - 11.00
Alarm - 36.00
Phone/Cable/Internet - 175.00
Water - 100.00
Dance - 92.00
TD Ameritrade - 50.00
Entertainment - 50.00
Kids - 40.00 (sinking fund)
Clothing - 40.00 (sinking fund)
Household - 25.00 (sinking fund)
Misc. Auto - 30.00 (sinking fund)
Personal Care - 20.00 (sinking fund)
Re-fund BEF - 1000.00
Snowball - 2632.00
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Old 05-27-2008, 11:20 PM
 
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Our budget doesn't really change from month to month. Does everyone else have a different budget every month?

That is great news, Jaime!
Mine is always the same as well. But I sometimes write it out for each month so I can check things off as I pay them.

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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Old 05-28-2008, 02:02 AM
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Blow - 100.00
You are budgeting $100 a month for cocaine? Just a tip, file that under Misc Party Expenses just in case the cops are reading.
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Old 05-28-2008, 02:13 AM
 
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You are budgeting $100 a month for cocaine? Just a tip, file that under Misc Party Expenses just in case the cops are reading.
ooohhhh...its cause your selling and don't want the cops to know where your income comes from??!! ROFLMAO where was that tribe started??! :
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Old 05-28-2008, 02:17 AM
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ooohhhh...its cause your selling and don't want the cops to know where your income comes from??!! ROFLMAO where was that tribe started??! :
Well, duh... Then it would have to reported as taxable income.
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Old 05-28-2008, 02:19 AM
 
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You are budgeting $100 a month for cocaine? Just a tip, file that under Misc Party Expenses just in case the cops are reading.
ROFL. I don't think $100 a month would support much of a habit. I guess I hadn't thought of someone else unfamiliar popping in and wondering wth I was doing LOL.
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Old 05-28-2008, 02:23 AM
 
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You are budgeting $100 a month for cocaine? Just a tip, file that under Misc Party Expenses just in case the cops are reading.
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Old 05-28-2008, 02:43 AM
 
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You ladies crack me up. First it's receiving bills surly and now budgeting for blow. I love it.

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Old 05-28-2008, 04:11 AM
 
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Heres mine: I always round up so they are whole $ amounts And we are not zero-based at this time but we are pretty close DH has very irregular income, so we sometimes have extra $$ which we will put into savings ..

Homeowners ins. and tax $- $500
Savings 200.00
Tithe 100.00
Car payment - 386.00
Car insurance - 190.00
Groceries - 400.00
Gas - 400.00
Blow - 300.00
Medical - 20.00
Ballet - 45.00
PG&E- 170.00
Garbage - 33.00
Phone&DSL- 71.00
Water - 63.00
School- 235.00
Entertainment - 10.00
Clothes - 70.00
CCards - 100.00
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Old 05-28-2008, 12:18 PM
 
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You are budgeting $100 a month for cocaine? Just a tip, file that under Misc Party Expenses just in case the cops are reading.

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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Old 05-28-2008, 01:32 PM - Thread Starter
 
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Good Lord ladies, I'm away for a day and you're all doing drugs.

So, as we near the end of the month, how is everyone doing with the baby steps? Meet any goals? Make progress?

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Old 05-28-2008, 02:15 PM
 
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:*whine*: I'm scared, ya'll. I haven't entered any receipts into my budget tracker for ages, and I haven't taken a close look at the bills in a while. Most are paid automatically, but a few I still need to go hit the button on my bank website to send. And now I'm so scared and overwhelmed, that I'm avoiding it. I know it's not going to be HORRIBLE-we're-going-to-lose-our-home, but I have no idea how we've been doing on our budget. I really need to convince DH that envelopes are the way to go. The debit card is just too easy. He prefers it in the bank--can't remember why--but it's not safer there if it's so easy and tempting to spend, yk? Our checking account doesn't earn interest, and the savings account earns a pittance. so yeah. The question is how many envelopes to make..... When is the first? Sunday?
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Old 05-28-2008, 06:19 PM
 
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Hi Ladies!

My husband and I are huge fans of Dave Ramsey, but this is the first time I've written on this board. Over the past couple of years we've paid off both cars, paid down our student loans from $50000 down to $18000. I can't wait to get rid of these darn student loans!!!

This is what we have been doing, and doing this out of step. Please let me know what you ladies think. We have recently relocated and moved into a rental, the cheapest we could find.

We've stopped paying on our debt, and have been putting all of our "extra" money into savings. We've been saving for a downpayment, as we're hoping to be ready to buy a house before the market starts picking up.

What are your thoughts on this? My dh has started getting some overtime, so we're planning on using that money to throw toward my debt, but... it won't be anything significant. Bad move? Should be stick with Dave's plan and why?
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Old 05-28-2008, 06:37 PM - Thread Starter
 
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Here's the thing: You're paying more in interest than you'll earn by saving that money. You've come so far in paying everything off and getting to the point where you don't have any debt payments will not only make it easier to save up for a down payment but will make things easier on you all when you have all the home related expenses.

It's my understanding that saving for a house is Baby Step 3b. You would do it after you've paid off all your non-mortgage debt and saved up 3-6 months of expenses. I would say that it's especially important to have the bigger emergency fund after you buy a house, because unexpected things are bound to pop up when you own a house that you won't have a landlord around to fix.

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