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

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Old 09-10-2008, 10:28 PM
 
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Originally Posted by Bunnyflakes View Post
I lost my job tonight. It is a long, painful story. I don't want to talk about it. I am trying to see the bright side in this, but it is very hard. I feel sick and I can't stop crying. Perhaps I have lost my ability to be rational at this point
Awww, shoot. I'm very sorry. Especially since it sounds *ugly*, I'd have to say that there is something better...much better for you!
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Old 09-11-2008, 12:16 AM
 
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to you bunnyflakes
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Old 09-11-2008, 12:20 AM
 
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oh Jaime --- My prayers are with you
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Old 09-11-2008, 03:59 AM - Thread Starter
 
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Yeah it was pretty unpleasant. I need a new job, ASAP. I know I will get a job, I will work at the grocery store if I have to, I am just going to miss the 30 hours of over time I got each week at my old job. It will make the snowball slow down, a lot. But maybe I can see my DH more than twice a week and go to church and have a life for a change. I wont be taking another 70 hour a week job, that is for sure!!

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 09-11-2008, 01:57 PM
 
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((((bunnyflakes))))

There is something better on the horizon! The door is open!
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Old 09-11-2008, 03:19 PM
 
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this was me in July:
BS0 get bills current => done
BS1 $1,000 Emergency Fund => done
BS2 Debt Snowball => ~ $1200 on Visa that just won't go away
BS3 goal of 6 months expenses in savings => 2.25% funded so far
BS4 Invest 15 percent into retirement => currently 12% of gross
BS5 College funding => 2 years of tuition credits purchased, buying Year 3 with monthly payment
BS6 Pay off home early => trying to figure out how to make an extra payment a year; so far, no brilliant ideas
BS7 Build wealth => small discount brokerage account; no regular contributions yet

this is me in September:
BS0 get bills current => done
BS1 $1,000 Emergency Fund => done
BS2 Debt Snowball => still trying to get tidbits of Visa bill paid off
BS3 goal of 6 mos. expenses in savings => 18% of the way there! I'm gearing up to list a bunch of stuff on eBay and Craigslist and the proceeds will go into this account
BS4 Invest 15 percent into retirement => same
BS5 College funding => same
BS6 Pay off home early => same
BS7 Build wealth => same

I'm completely invested in knocking out BS3 so I can start making some serious progress on my mortgage. It's bothering me like crazy.

I was getting a little lax with my budget and had a bunch of unexpected school expenses for DD, so I re-did the budget for September and re-committed to it. Packing a lunch and limiting to 1 latte a week doesn't seem like much, but it truly does make a difference. And Grocery Gaming has made me a much more savvy and conscientious shopper. Plus I try to watch Dave a few times a week which is a good nudge in the right direction.

Gotta start thinking about Christmas...

wild.gif  kickin' it old school
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Old 09-11-2008, 06:59 PM
 
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I wish I could watch Dave's show. I have no idea what it would cost to add Fox Business (that is what he's on, right?) to our plan. I do listen sometimes though...
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Old 09-11-2008, 07:52 PM
 
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I listen to the show archives online for free.

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
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Old 09-11-2008, 08:06 PM
 
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Originally Posted by Nora_SEA View Post
His site has you do it strictly by amt owed and doesn't factor in interest rates. The student loans are at 3% and the BOA loc is at 13%. So we will focus on loc instead.

Has anyone else done this? For most of the credit cards we are doing it as he suggests. Paying off the smallest amts first. Student loans are just so "different" in how they affect your credit worthiness...I think.
We will pay off all other debt before we start crunching on my student loan debt... The amount is obscene, but the interest is fairly low. Of course, once we start paying on that, we will have to make sure we stay on course. I'd like to have everything paid off by 2018.

We should have everything but the student loans paid off by May 2009. That is, we will if I can get dh to stop using his credit card. :

My family: me jog.gif, dh geek.gif, ds reading.gif (11), dd1 hearts.gif (9), and dd2 energy.gif(3).

Tout va s'arranger à la fin. Si elle ne fonctionne pas; ce n'est pas la fin.

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Old 09-11-2008, 08:17 PM
 
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Originally Posted by Bunnyflakes View Post
I lost my job tonight. It is a long, painful story. I don't want to talk about it. I am trying to see the bright side in this, but it is very hard. I feel sick and I can't stop crying. Perhaps I have lost my ability to be rational at this point
Hopefully this will open another door for you.

My family: me jog.gif, dh geek.gif, ds reading.gif (11), dd1 hearts.gif (9), and dd2 energy.gif(3).

Tout va s'arranger à la fin. Si elle ne fonctionne pas; ce n'est pas la fin.

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Old 09-11-2008, 08:26 PM
 
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I started the TMMO last month and am working on getting dh on board (with limited success).. I have a few random questions...

Background: we are a family of 4: me, dh, ds (7yo) and dd (5yo). We currently rent and will, most likely, for several more years. I'm working on the budget... We want 2 more kids, and I want to be out of cc hell before we try. so...

How much do you budget for groceries per month?
Do you go by amount owed strictly or by interest rate? (ignoring the issue of student loan debt here)
Do you work on one step at a time, or do you do a little on several?

I've got the $1000 EF done.
I'm working on the snowball. (should be able to pay off $800 on my cc this month)
Nothing is going to #3, but dh is putting some into his retirement with matching from his employer.

We are expecting/anticipating/praying for a bonus from his work in January for enough to pay off one of the cc's. We are planning on taking our tax refund (if we get one) and paying whatever remains on the cc debt. Once that bugger is gone, we'll have $ to start paying on my student loans (I'm on the 30 year repayment schedule). BUT, I'm really tempted to keep part of the lumps from the bonus and the tax refund to put into our BS#3... especially if I get pg before we intend. (*sigh*)

Help.

My family: me jog.gif, dh geek.gif, ds reading.gif (11), dd1 hearts.gif (9), and dd2 energy.gif(3).

Tout va s'arranger à la fin. Si elle ne fonctionne pas; ce n'est pas la fin.

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Old 09-11-2008, 08:32 PM
 
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We have a grocery budget of $400/mo but from what I hear that is pretty low. I think most people do about $500/mo. We pay strictly from lowest balance to highest for now. It gets rid of more debts and frees us more monthly income that way. But I do have 2 student loans that total $11,000 and a car loan that totals $11,000 and the student loans are a total of $100/mo while the car is $267/mo so I'm considering paying the car first to free up more money on a montly basis. I guess just working it all out on paper can show you which way to pay down your own debt is best.

Zen doula-mama to my spirited DS1 (2/03), my CHD (TAPVR) warrior DS2 (6/07) & a gentle baby girl (8/09)
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Old 09-12-2008, 06:41 PM
 
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YAY! We got to business this week and scrounged up a few bucks to finally start our emergency fund! Woot!

BS One: $200/$1,000!!

Only $800 more to go... that should only take us... oh, I don't know FOREVER! But I'm sticking to it!
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Old 09-12-2008, 08:12 PM
 
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Wow- somehow I fell off the map with the DR threads. I'm still here, still plugging along. DH is doing extra free lance stuff and is pretty busy this month. I seem to be writing checks for one child-related event after another (homeschool co-op, boy scouts, gym class, curriculum materials, and on and on.). That is a big money pit for us right now. And really honestly, we try to keep it simple.

I'll need to do some catching up on this thread.
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Old 09-12-2008, 09:25 PM
 
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How much do you budget for groceries per month?
Speaking as another family of four, I am aiming for $600 for gas/groceries this month. We also have WIC and live in a pretty high COL area so I'll let you know how it goes. This is the first month I am doing it in cash so I should really KNOW when I fail

Quote:
Do you go by amount owed strictly or by interest rate? (ignoring the issue of student loan debt here)
I think this really depends on what your debt looks like...if you owe say twenty different debts and are paying each every single month I could see how it would be very satisfying to pay the smallest off first and cross those suckers off your list! When we started we had three student loans to pay off--I paid the highest interest and lowest balance off first, but then paid off one that had a slightly lower balance than the one we still owe on, partly because it was a lower amount but mostly because I was annoyed that I was still paying for a degree that I will never use!

I think each family needs to look at their own debt to decide, Dave is not always "right", I will pay more interest this way in the long run--but then again I would not have been as motivated to pay them off early if we weren't doing the plan!


Quote:
Do you work on one step at a time, or do you do a little on several?
I really struggle with this as we do tend to jump ahead, for example we invest around 16% yearly, yet don't have the 3-6 month emergancy fund and still have a student loan! I can't seem to stop the investing, even though I would have much more peace with a good emergancy fund and no debt...I agree with him on the order, but can't seem to translate that into action IYKWIM?

Quote:
BUT, I'm really tempted to keep part of the lumps from the bonus and the tax refund to put into our BS#3... especially if I get pg before we intend.
I'll go against the grain and agree with you here! I think those of us who are pregnant or might get that way should have a bigger emergancy fund than others. We are having a surprise in Feb. and I know I will need at least $3000 at the time of delivery. Having a slightly larger emergancy fund would have helped me not stress about having to save for the baby now.

We also live overseas and *should* have at least $5000.00 on hand if we would need to fly back for a family emergancy/funeral, etc. Every family is different, IMO.

Stick with the thread, these ladies are awesome and I find such encouragement just reading it! Nice to meet you
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Old 09-12-2008, 09:37 PM
 
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Thanks for the answers.

We're trying for a grocery budget of $250 this month. We'll have to work to keep it that low, but so far so good. I've got food in the house for thru about the 20th, and still have about $80 in the envelope. Of course, if there's a good sale on non-perishables, I might blow my budget.

I'm really excited to work on paying off the backlog/debt we've been carrying forever. I just need to convince dh that we'll have more spending power once the cc bills are gone. We only have one each and my student loan debt. I paid off the car 2 years early last year. We will drive the ones we have until the die on us (hopefully not for at least 2-3 years).

Quote:
Originally Posted by Mommy&Will
I seem to be writing checks for one child-related event after another (homeschool co-op, boy scouts, gym class, curriculum materials, and on and on.). That is a big money pit for us right now. And really honestly, we try to keep it simple.
I feel your pain. This week was fundraiser week, school pictures and book fair week. Ack! And I had to come up with the funds for the kids after school activities... I'm asking the grandparents to give activities fees to the kids for Xmas instead of more stuff.

My family: me jog.gif, dh geek.gif, ds reading.gif (11), dd1 hearts.gif (9), and dd2 energy.gif(3).

Tout va s'arranger à la fin. Si elle ne fonctionne pas; ce n'est pas la fin.

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Old 09-12-2008, 09:51 PM
 
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Back from our summer away and we of course spent all our savings! America is expensive and I get sucked into the "but I can't buy this at home" disease so I am once again starting fresh

BS0 get bills current => done

BS1 $5,000 Emergency Fund => $1200/5000 (I really do need this much for emergancies!

BS1.5 $9,000 Summer travel/expenses fund 0/$9000 We will need this by June 2009, but do get a few large paychecks so I plan to mostly fund this out of these. Also I will be trying to fly non-rev (government flight) so I might only need $1000 of the $5000 I have budgeted for airfare. Any money saved will go to student loan or to house fund, please see below.

BS2 Debt Snowball => Paid $5000, and killed two student loans right before summer break:
=>Last Student loan $8226.21, will be paying min. until EF is funded

BS3 goal of 6 months expenses in savings => $0/$25,000, so very sad about this!

BS4 Invest 15 percent into retirement => currently 16% of gross (10% at work, 6% after I look at my tax return, seriously off track, I can't seem to resist the tax breaks every time I file--I think I am allergic to paying federal taxes. I promise to try to resist this year!

BS5 College funding => so not there yet!

BS6 Pay off home early => Home, what home? Would like to build in 2011, we would need $40,000 to do this comfortably. $1000/40,000.

BS7 Build wealth => not there.

So here's my dilema: do I just trudge ahead and pay off the student loan, interest rate 3.25%, or do I aggresively save for the house knowing that the higher the down payment the lower the total loan amount? My savings account earns 3.5%, and I would think home loans would be at least 7% by the time we can buy, so my impulse is to save the cash... but I would love to not have that student loan.

WWYD?
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Old 09-12-2008, 10:12 PM
 
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Well we made some progress and now we're taking a step back. But we're feeling pretty good about where we are.

Step 1: We are back here as of this moment due to Hurricane Ike and our truck dying. We will be rebuilding for a month or so.

Step 2: We killed off a card this payday and it feels great!! Two more to go!!

Step 3-6: Soon. Hopefully within the next 18 months.
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Old 09-13-2008, 03:36 AM
 
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Dmitrizmom
We went one step at a time until we hit Steps 4-7. Steps 1, 2, and 3 we did in order.

Midwife (CPM, LDM) and homeschooling mama to:
14yo ds   11yo dd  9yo ds and 7yo ds and 2yo ds  
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Old 09-13-2008, 12:12 PM
 
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I'm still here. Chugging along as usual. I'm currently on baby step 2 with $34,197.47 to go. I was at roughly $60,000 when we started in Dec. 07. DH just informed me that he finally got his raise. It turns out to be about $500 more a month after taxes!! That will help tremendously. The goal now is to be moving onto baby step 3 by this time next year. I've seen the light!

SAHM to the munchkins (14.5, 11.5, 9.5, 3, and almost 2)
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Old 09-13-2008, 01:00 PM
 
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Sarafi: I'd try to get the student loan paid in full before saving for a home. We have some massive student loans here and have decided to have them all paid before buying a home again. We want to be debt free with a large EF before buying again.

FlutterBee: I'm sorry Ike is affecting you. I hope you stay safe!

My2girlz: congrats on the raise!

Zen doula-mama to my spirited DS1 (2/03), my CHD (TAPVR) warrior DS2 (6/07) & a gentle baby girl (8/09)
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Old 09-13-2008, 01:21 PM
 
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My2girlz - congrats on the raise!

FlutterBee - s stinks to have nature wipe out savings. And congrats on killing the card.

My family: me jog.gif, dh geek.gif, ds reading.gif (11), dd1 hearts.gif (9), and dd2 energy.gif(3).

Tout va s'arranger à la fin. Si elle ne fonctionne pas; ce n'est pas la fin.

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Old 09-14-2008, 10:29 PM
 
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Here we are: September

BS1 $1,000 to start an Emergency Fund = DONE!
BS2 Pay off all debt using the Debt Snowball = only student loans, around $60K, not even started yet.
BS3 Three to six months of expenses in savings=not started
BS4 Invest 15 percent of household income into Roth IRAs and pre-tax retirement=starting with $300 per month in October
BS5 College funding for children=not started
BS6 Pay off home early=not started
BS7 Build wealth and give! Invest in mutual funds and real estate
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Old 09-15-2008, 08:30 PM
 
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I finally called and closed the 30% interest rate card today-I was worried that they would pester me, but they didn't do it very much. I also have a bed that we are selling that will add an extra 75.00 to the next cc.

On a sad note: We need a new washing machine-ours is no longer working on the spin cycle...waaaah!
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Old 09-16-2008, 01:26 AM
 
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I finally called and closed the 30% interest rate card today-I was worried that they would pester me, but they didn't do it very much. I also have a bed that we are selling that will add an extra 75.00 to the next cc.

On a sad note: We need a new washing machine-ours is no longer working on the spin cycle...waaaah!
Congrats on the cc and the bed!!!

Just an idea, I would check freecycle and don't forget to mention to friends/family that you are looking for a washer. You never know when someone is ready to upgrade and you would be doing them a favor taking their old machine--maybe you'll luck out?
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Old 09-16-2008, 04:02 PM
 
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We took our DR class sunday...just as Ike hit ohio :

But even without power DH will be doing homework with me...he has to admit we need to get organised

K back into lurkdom
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Old 09-16-2008, 06:55 PM
 
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Howdy mamas! I am Kim, WAH/PT WOH (own a small PR firm/consulting business, teach occasionally + do some freelance writing) mama to two kiddos. DH also works FT (luckily he can do this in (3) 12-hr days) and is in school FT. I have been a DR fan for awhile, but "officially" started the program this past February.

Checking in a tad late in the month with a few significant changes in tow. Signed a purchase & sale agreement for the rental property we wanted to sell; happily we were able to complete without a realtor commission. Today was my last day on someone else's payroll; resigned to allow more time for focus on my own business ventures. On a less positive note, DH's tuition and $650 in books added to sprucing up the house we are selling tore through our savings. Re-committed to getting uber focused, developing a budget that works (and we stick to), and blasting debt!

Our progress...

BS0 - Get current on bills - N/A
BS1 - $1,000 EF - let the replenishment begin...
BS2 - Pay off all debt - working the ol' snowball (see below)
BS3 - 3-4 mo. expenses in savings (not yet...)
BS4 - Invest 15% (not currently adding to existing retirement savings)
BS5 - College funding (both kids have 529s funded with gifts; not currently adding to the savings)
BS6 - Pay off home early
BS7 - Build wealth + give - invest in mutual funds + real estate (we are a little backwards here - own 3 rental properties right now; entered into a P&S agreement to sell one; also have existing retirement accounts from pre-snowball)

September's goals:
1. Sell (1) rental house (by 10/31)
2. Break $68,500 on the snowball!

SNOWBALL PROGRESS...

Since the official launch of our snowball on 2/15/08:
(Our payoffs include large chunks of LT debt (before ST debt is complete) b/c it was a requirement to partially pay off a mortgage with recent land sale)

Snowball - Phase 1 (BS2/short-term): $12,247.43 PAID OFF

Snowball - Phase 2 (BS6/long-term - mortgages for 3 properties, HELOC, + grad school loan): $52,750.28 PAID OFF

TOTAL PAID OFF: $64,997.71

Snowball Goal for September: break $68,500!

Kim :
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Old 09-16-2008, 11:53 PM
 
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Originally Posted by erikaa View Post
anyone here real estate and stock investment savvy? my DH and I have 2 major assests that we could liquidate.
One is some Bank of America Stock my grandfater gifted to me, it's worth abuot 33k today.
The other is a rental property we own in Myrtle Beach. We'd make about $35k if we sold it.
If we did either one we could accomplish BS 2 and probably cover a good part of BS 3.
We are unsure about tax implications and which option would be the smartest way to go.
any thoughts? thanks! erika
This is a really good time to own BOA stock. You'll see a really big jump in its value with this week's events on Wall Street. Do keep in mind that capital gains taxes can be pretty painful. Did your grandfather give you the tax-free gift of $10,000 with the stock?

Anyway, I'm just finishing up the Ramsey book and really liking it. As of tomorrow I'll have the $1,000 emergency fund in place. That's what started me on the whole kick; I realized how guilty we were of living month to month and spending whatever cash was there.
We finished paying off DP's credit card debt last week! Down from about $4,000 last year, we just made the last $700 payment. He was in pretty well over his head last year, getting totally reamed by late payments. He said he wants to frame the last statement.
He still has a small ($2,500) car loan left. I'm debt free except for a $52,000 mortgage with 14 years left. We want to sell this house and buy another one in a different city, hopefully in the same price range with about 60 percent down. But to do that, we'd have to have the sale lined up, as we have a lot of equity tied up in this house. It would be easier to find a way to get into another house first, then ready this house to sell. In our neighborhood and price range, other homes are selling quickly. So once we're settled into the new place, I'm excited to start being more rational with money, paying off that last car loan, getting the three month fund in place and aggressively saving for retirement and DS's college fund.

Jen, journalist, policy wonk, and formerly a proud single mama to my sweet little man Cyrus, born at home Dec. 2007 . Now married to my Incredibly Nice Guy and new mama to baby Arthur.
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Old 09-17-2008, 12:30 AM
 
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mamajean - congrats on your progress!
yes, i believe my gfather was gifting us $10,000 at a time. i thought our stock might go up too, but in today's paper it said it fell about $7 to $26 according to my DH.
we spoke to a few people about cashing in the stock vs. selling our rental property and we were told the rental prop. is the better way to go. we forgot about the taxes!
in the meantime we are cutting back on expenses and trying to avoid CCs at all costs. i'd like to adopt the envelope program but havn't had enough to put in the envelopes at one time.
do most people do envelopes for the entire month or do some go weekly?
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Old 09-17-2008, 12:31 AM - Thread Starter
 
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Hey ladies I am still job hunting. I applied for two online yesterday and sent out three more resumes. I have not heard back on anything yet. We still have not had to dip in to the EF but that is coming really soon.

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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