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

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#121 of 145 Old 09-21-2008, 10:09 PM
 
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BS1 $1,000 to start an Emergency Fund done!
BS2 Pay off all debt using the Debt Snowball
paid off 1353.95 on 7/26
paid off 2358.20 on 8/9
paid off 1100 on 8/23
paid off 1826.99 on 9/7
paid off Home Depot card: $1716.46

FEELS SO GOOD!!!!

BS3 Three to six months of expenses in savings
savings is at $800

BS4 Invest 15 percent of household income into Roth IRAs and pre-tax retirement
we invest 10% right now
BS5 College funding for children

BS6 Pay off home early

BS7 Build wealth and give! Invest in mutual funds and real estate
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#122 of 145 Old 09-22-2008, 12:50 AM
 
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Originally Posted by lunamama View Post
BS1 $1,000 to start an Emergency Fund done!
BS2 Pay off all debt using the Debt Snowball
paid off 1353.95 on 7/26
paid off 2358.20 on 8/9
paid off 1100 on 8/23
paid off 1826.99 on 9/7
paid off Home Depot card: $1716.46

FEELS SO GOOD!!!!

BS3 Three to six months of expenses in savings
savings is at $800

BS4 Invest 15 percent of household income into Roth IRAs and pre-tax retirement
we invest 10% right now
BS5 College funding for children

BS6 Pay off home early

BS7 Build wealth and give! Invest in mutual funds and real estate

: So you are out of debt? Great job!!! I love killing those bills too!
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#123 of 145 Old 09-22-2008, 10:52 AM
 
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Yesterday, I had to put the weekly groceries on the dreaded cc. We are tapped out until the end of the month due to several unexpected--and therefore unbudgeted--school expenses for DD this month. I'll be able to pay it off right away, but still it really bummed me out. I suppose I could have taken it out of the emergency fund, but it didn't "qualify" in my mind since it was a result of poor planning rather than a real emergency.

Cheers to rebudgeting for October!

wild.gif  kickin' it old school
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#124 of 145 Old 09-22-2008, 12:54 PM
 
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YAY!

We put aside more than I thought possible this month!

BS One: $300/$1000

Next month is not looking so good. We have the extra expenses of 3 family birthdays, halloween, and registering a vehicle. bummer.
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#125 of 145 Old 09-22-2008, 01:13 PM
 
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: So you are out of debt? Great job!!! I love killing those bills too!
We are getting there....unfortunately we have a ways to go. My goal is $4000 more by years end. Then we will still have a bit and a van payment. We got into trouble when dh was injured and out of work for 6 months. That was 2 years ago and we have been scraping by since. He collected a piddly insurance but it didn't cover anything. So...digging out way out of living in the past feels really good to me. He is working so hard for this. I am super-proud of him.
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#126 of 145 Old 09-22-2008, 02:26 PM
 
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Okay, I'm hoping y'all can answer a question for me that I'm feeling a bit stumped about.

My MIL gave us TMMO this weekend and I read the whole thing and we're either on step 3 or 6 depending on the answer to this question.

When Dave talks about a FFEF, is that separate from all other savings? Does that include the longer term savings that are earmarked? For instance, we're saving up for future repairs to our home (so we can pay cash when the furnace dies) and I can't decide if that should be included as part of our FFEF or a separate amount. We don't expect to need that money for 15+ years (all heating/cooling systems as well as the roof are less than 3 years old). What about shorter term savings like medical savings? Does he have a cutoff about whether you plan to use that within a certain time period?

How are the rest of you handling/planning to handle this issue?

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#127 of 145 Old 09-22-2008, 08:09 PM
 
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You all are so inspirational!!! We had debt almost paid off up until student loans and then life whammied us and we are finding some debt again... I thought maybe DR would help us really seal the deal this time around.

So we are:

BS1 - done
BS2 - working on it

My questions for you are:

Early in paying down debt, do you allot for home repairs or let that fall into the EF? We have a home warranty so large repairs would be covered. I'd much rather put that $$ towards paying down debt.

Similar situation with things like furniture - we have furniture, we should have our debt paid off in 2 yrs - I don't forsee needing furniture in the next 2 years we've been just fine for the last 5 - 10 years. Wouldn't it be wiser to just allot the money towards the debt instead?

Any thing to share about how much prior planning you had in your early pay down budget?

Thanks!

Librarian & mommy to my jog.gif(2002) & jammin.gif (2005) married to superhero.gifsince 1999
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#128 of 145 Old 09-22-2008, 10:47 PM
 
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Originally Posted by kanga1622 View Post
Okay, I'm hoping y'all can answer a question for me that I'm feeling a bit stumped about.

My MIL gave us TMMO this weekend and I read the whole thing and we're either on step 3 or 6 depending on the answer to this question.

When Dave talks about a FFEF, is that separate from all other savings? Does that include the longer term savings that are earmarked? For instance, we're saving up for future repairs to our home (so we can pay cash when the furnace dies) and I can't decide if that should be included as part of our FFEF or a separate amount. We don't expect to need that money for 15+ years (all heating/cooling systems as well as the roof are less than 3 years old). What about shorter term savings like medical savings? Does he have a cutoff about whether you plan to use that within a certain time period?

How are the rest of you handling/planning to handle this issue?
I think that the FFEF is supposed to be for a dreaded job loss, or some other reason you could not work and therefor could not bring any income in for 3-6 months. So basically it should be for rent/mortgage and anything else that would have to be paid for those months with no income.

I save seperately (or will be trying to) for other things like future home repairs, or car repairs, etc.

I am not sure about your ? about a cutoff time, but what I get from his books are the more things you budget for, the less you are caught short with "emergancies" that we really should be planning for instead. Hope that helps!
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#129 of 145 Old 09-23-2008, 03:18 PM - Thread Starter
 
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This is a totally self centered rant. Just letting you know ahead of time :

I feel like my education, that I still owe $19,000 on, was totally wasted. The problem is is that if I move to get a teaching job, the places that are hard up for teachers don't need the field that my husband is in. So I feel kind of stuck. Either I am going to work or he is, but both in the same area might not happen.

So either way I feel, and excuse my choice of language, screwed.

The job interview was a total bust because I lack the right degree. They are going to pass my resume along to another section of their company so I am praying something pans out.

I am just very frustrated right now because I can't even get a minimum wage job here. It is maddening. I only made minimum wage at my last job, and they worked me to death at 70 hours a week. I am just praying for a nice, boring 40 hour a week office job. I don't care what I have to do, make coffee, answer phones, anything, just please let me find a job!

We have already had to dip in to the EF to buy gas. That $900 is only going to last so long I am upset right now.

But I know that God has a plan, and I am trying to stay positive, but it has been two weeks out of work. That is a long time when you need two incomes to get by.

Thanks for listening.

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#130 of 145 Old 09-23-2008, 06:17 PM
 
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I'm sorry Bunny, I hope something great appears for you soon. I can understand feeling like education $$ was wasted - DH still has $37,000 in student loans (Thanks Northeastern for charging so much!) and where we currently live his degree is pretty much useless. He swears his degree helped him get his current job but I don't agree. I loathe sending those huge student loan checks out each month! That is exactly why I am on the DR plan: so my kids don't have to take out astronomical student loans when they are old enough for college!

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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#131 of 145 Old 09-24-2008, 09:24 AM
 
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I'm so sorry Jamie. I felt exactly the same way after DH graduated from college and couldn't find a job (those loan payments sucked while he was unemployed). It took him over six months to find a minimum wage job working 15 hours a week. He couldn't even get a job at the grocery store because they didn't want to train him and have him move for a "real" job.

The job DH has now is completely based on the fact that he was available for a temp position when someone quit at the last minute. That's spiraled into an almost full time job with benefits.

Something will come up. The job you don't want or least expect will lead to a great future for you - I just know it! You're a good worker and dependable and that's what employers need.

WOHM: Married 2002. partners.gif Dog parents 2005. dog2.gif DS arrived 3/3/10. Newbie expected late June 2013. slingboy.gifbfinfant.gifcd.gif

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#132 of 145 Old 09-26-2008, 02:51 AM
 
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How much do you budget for groceries per month?
I budget $300 per month. It is just DH and I since DD is 4mo and not eating solids. We eat organic fruits and veggies. Lots of brown rice. Loooooooooot of rice. (Brown rice + chopped celery + chopped carrots + protein, chicken or egg + teriyaki sauce = YUM!!)

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Do you go by amount owed strictly or by interest rate? (ignoring the issue of student loan debt here)
We went by interest rate.

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Do you work on one step at a time, or do you do a little on several?
We worked on step 1 and 3 at the same time. We basically just kept adding to the emergency fund. We actually did #2 after completing #3.

#4 and #5 we did together. The Roths and college fund were all opened the exact same day.

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#133 of 145 Old 09-26-2008, 03:22 AM
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So I was laid off or will be next week. Fortunately I pre-planned a little and even though I am in BS#2 I kept aside about 2 months of expenses because my job wasn't that stable. So that is good news. My resume is together and I will send it out first thing tomorrow.

That's all I got. Back to paying the minimums and tomorrow I am going to look at the budget and see what I can cut.
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#134 of 145 Old 09-26-2008, 03:37 AM
 
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I am going to join in too
We are beginning Dave Ramsey! So excited! (except for the fact that we are on the get current step : ) But even at that, we see light at the end of the tunnel eventually (after my gazillion payments are made to my student loan I stayed home with my children for 4 years, and just went back to work last month. It was really hard, but we were digging ourselves into a hole financially with me not working, so it had to be done
Quoting myself here for an update.. We saved our BEF!! : (this is HUGE for us! We just started this month, and have never had a dime in savings before!) We actually saved a few hundred more, but had to use the extra, so we are at $1000 now!

"If we are to heal the planet, we must begin by healing birthing."
~Agnes Sallet Von Tannenberg
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#135 of 145 Old 09-26-2008, 10:01 AM
 
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Quoting myself here for an update.. We saved our BEF!! : (this is HUGE for us! We just started this month, and have never had a dime in savings before!) We actually saved a few hundred more, but had to use the extra, so we are at $1000 now!
WTG mama! Isn't it such a good feeling to feel like you are making real progress?! I hope it continues for you.

We're at a standstill. Our snowball has stopped and we're looking to make cuts once again so we make make more than we spend. Monday we are saying goodbye to cable. DH is heartbroken.

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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#136 of 145 Old 09-26-2008, 02:57 PM
 
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Weighing in late, but with big news: we had our baby debt-free! Considering that much of our remaining snowball is cc debt from the pregnancy of my first son (medical bills long since paid,) it's a joy to have had a debt-free experience. I'm still a bit in shock. We bulked up the emergency fund, thanks to Dave, but didn't need to go into the $1000. We're hitting the ground running in October. We even got to continue our snowball this month. We haven't missed a beat. I doubt Dave would have condoned an UC birth, but finances weren't a reason - just a great bonus. These kids are going to have a great future, and never remember what their parents did when they were little.

Plus, we're not spending the cash presents we're receiving this time. It's going to their ESAs - whooot! As someone who had to work her own way through college, and whose parents never saved a dime, this is huge for me to do for them.
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#137 of 145 Old 09-26-2008, 06:01 PM
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Contrariety, congrats on saving! Won't be long before you have that BEF all funded and start snowballing!

kanga1622. we're planning on an ING saving acct. Its 3 -3.5 per cent interest and can be accessed fairly easily. For us it will be separate, even in a separate bank so we don't touch it. Furnace will be a sub-account or separate acct since you know its coming but if you have 15 years I wouldn't start it now.

jlpumkin, I'd do debt repayment only at this point unless the home repairs are critical. Sinking funds for furniture should come after. My only sinking funds right now are Christmas and bdays.

lalaland42 I'm sorry to hear about your job loss. I hope you find something new fast!

lactivistmama, congrats on finishing your BEF.

AllieFaye, congrats on the new babe and especially on doing with no new debt!
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#138 of 145 Old 09-26-2008, 07:06 PM
 
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Thanks everyone for the input. We're saving everything we can right now and I'm trying to cut back our extraneous spending (not that it was too much). Since we don't have kids currently, I've budgeted what I would expect to pay for daycare and health insurance and use that for our home repair sinking fund. If/when we have a child, things will be doable but we won't have much wiggle room so I'd like to build up as much for savings now as possible.

We're not exactly following the DR plan but a more tailored version that I've had set up for a couple years.

I guess I should subscribe since I've been following along for months anyway.

BS1 $1,000 to start an Emergency Fund - Done
BS2 Pay off all debt using the Debt Snowball - Done
BS3 Three to six months of expenses in savings - Counting sinking funds done but without adding in sinking funds we have a ways to go
BS4 Invest 15 percent of household income into Roth IRAs and pre-tax retirement - 12% currently (including employer match)
BS5 College funding for children - N/A
BS6 Pay off home early - paying an extra $25ish every month but hope to increase that in 2009
BS7 Build wealth and give! Invest in mutual funds and real estate

WOHM: Married 2002. partners.gif Dog parents 2005. dog2.gif DS arrived 3/3/10. Newbie expected late June 2013. slingboy.gifbfinfant.gifcd.gif

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#139 of 145 Old 09-27-2008, 07:21 PM
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Here are our starting numbers for September:

September 1st debt numbers:
Mastercard 2...3,393.02
Student Ln 1...2,963.13
Student Ln 2...6,773.58
Auto Loan.......9,789.16
-----------------------
Balance......$22,918.89

September 30th debt numbers:
Mastercard 2...3,216.12
Student Ln 1...2,913.13
Student Ln 2...6,723.58
Auto Loan.......9,456.51
-----------------------
Balance......$22,309.34

Change (609.55) - 50% short of our goal of $1200.

I forgot to take into account that not only did we have vacation expenses, DH was racking up $0 in OT earnings. Yesterday's paycheck was a Reality Check on how dependent we are on the OT, and how much wasteful spending we've been guilty of. We saw a house today that we would love to buy - it's right across the street from a beautiful park in the neighborhood we hope to move to - and if we had been saving the money we've spent the last two years paying down debt with (about $30K in debt gone so far!), we could buy it. We are just kicking ourselves over the debt we have. But, in 2-3 years we will be able to shop and actually buy.
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#140 of 145 Old 09-27-2008, 07:53 PM
 
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I know how you feel about buying. We would love to buy a house here. The home we rent is for sale but we have no downpayment becasue we are paying down debt. I figure in 2 years, we will be shopping. Hopefully by then the market will have stabilized.
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#141 of 145 Old 09-27-2008, 08:06 PM
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I know how you feel about buying. We would love to buy a house here. The home we rent is for sale but we have no downpayment becasue we are paying down debt. I figure in 2 years, we will be shopping. Hopefully by then the market will have stabilized.
I actually hope that it will continue to tank, and that interest rates will start to rise. :

My grandmother cleaned up during the last big economic stumble - she had cash in hand (well, in MMA's) and locked in a bunch of CD's at 15% for 5 years and bought a few small houses to use as rental properties.

I will now take my selfish self back to the kitchen to get DH's supper.
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#142 of 145 Old 09-29-2008, 10:21 AM
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So....I was feeling really, really down about only paying off $600 this month (even though we also went on vacation and bought a new chest freezer debt free....) and happened to update our debt reduction spreadsheet.

So far this year (only 9 months in) we have paid off $20,000, which is already $6,000 more than we paid off in 2007. :

I don't feel so bad any more. $34,350 gone, $22,700 left to go.
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#143 of 145 Old 09-29-2008, 10:45 AM
 
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I can't believe that I have the nerve to even post on this thread after the month that we have had.

We started DR in August. We started our BEF and had about $450 in it. Then, we went on a short vaca to my grandfather's 99th B'day party. We had to leave before husband's check hit, so we took our BEF...KNOWING we had the $$ to pay it back.

And we did, JUST in time for husband to end up in teh hospital for FOUR HOURS with a kidney stone attack that SO FAR has cost us about $3,000! :

We are in the process of setting up payment plans with everyone to get stuff payed off. In the meantime, my eBay business was shut down : : : and I am having to start COMPLETELY over with my business. My income has gone to nill (at the moment).

This week, DH and I will sit down to do our October budget. I am going to need that entire bottle of Absolute!

Mrs B
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#144 of 145 Old 09-29-2008, 10:50 AM
 
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I'm sorry Mrsbernstein.

I am strongly considering taking a break from the debt snowball and building a bigger EF right now. The way the economy is right now makes me very nervous. Is anyone else feeling like their $1,000 EF is not enough right now?

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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#145 of 145 Old 09-30-2008, 08:51 AM
 
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Sorry Mrsbernstein!

We too are building a slightly larger EF. DH left his job yesterday. With the commute we were paying almost as much on gas as our mortgage. It just didn't make sense anymore - well and the fact that they treated him like crap. And he's retired so he's had enough of that.

So anyway, our budget is a little tighter and we are putting more in the EF than we are on paying down debt... but we are definitely still trucking along!

Librarian & mommy to my jog.gif(2002) & jammin.gif (2005) married to superhero.gifsince 1999
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