Dumping Debt and Building Wealth w/Dave Ramsey *October* - Mothering Forums

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#1 of 130 Old 10-01-2008, 12:58 PM - Thread Starter
 
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I'm just copying this from the first post of last month so we can get going!

These are the Baby Steps:

BS1 $1,000 to start an Emergency Fund
BS2 Pay off all debt using the Debt Snowball
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 children
BS6 Pay off home early
BS7 Build wealth and give! Invest in mutual funds and real estate

Here's the link to Dave Ramsey's website:

www.daveramsey.com


Check out Dave's website for inspiration and read The Total Money Makeover
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#2 of 130 Old 10-01-2008, 01:02 PM - Thread Starter
 
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We are just chipping away at out TMMO.

Last month we started with nothing.

BS1: $300/$1000

We have a tight budget this month with a gazillion birthdays, car registration and halloween. We're trying to tighten the belt, though and if we really stick with it, we'll have our EF by mid November, just in time to start saving up to pay for DH's tuition and buy his text books in January. And THEN... let the snowball begin! Last month, I left a bit of a buffer in the budget so we'd have wiggle room and not feel strapped down... NOT THIS MONTH! I'm telling every last dollar where to go! It's scary, but also exciting!
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#3 of 130 Old 10-01-2008, 01:05 PM
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I have to sit down and do my budget today. Its a 3 pay month for dh so I'm hoping to hammer the cc and buy some more Christmas stuff. I just sent 600 to the cc this morning.
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#4 of 130 Old 10-01-2008, 01:13 PM - Thread Starter
 
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I have to sit down and do my budget today. Its a 3 pay month for dh so I'm hoping to hammer the cc and buy some more Christmas stuff. I just sent 600 to the cc this morning.
I just want this year to hurry and be over so we can really get going on this! I just want to fast forward to the time of no CC debt!

We should be able to have our only "bad" debt paid off with the tax return in Feb/March... *sigh* but student loan debt abounds in our household. I'd like to get my first degree paid off before attempting another, and we'd really like to start paying cash for DH's school next year, which we should be able to do since we should also be getting some pell grants.

But here's to October!
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#5 of 130 Old 10-01-2008, 02:22 PM
 
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Hi everyone I am still out of work so our EF is slowly being chipped away at. I will take all the job vibes I can get!

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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#6 of 130 Old 10-01-2008, 02:40 PM
 
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I finished setting up my budget spreadsheet through Dec. 2009 and am using the last months of this year to adjust it to reflect our actuals rather than my ideals. So far we spend a lot more on misc. than I ever thought and a lot less on groceries.

We're hoping DH will get a new part time job (and then he'll quit his old one) and that will make a difference in our budget.

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#7 of 130 Old 10-01-2008, 03:05 PM
 
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Jumping back in this month after falling away for a few months. I've been down a lot because we have had to use our emergency fund for some car repairs and extra expenses. Also for some stupid things like overspending. The great news is we did not use credit for any of it. I need some extra motivation right now, so here I am! :

I am seriously considering doing childcare in my home for one child. I think I could make $500 a month doing what I'm already doing. I also have room in my van for one more person, so one is all I could do logistically (and mentally). Right now I am trying to get my dh on board. Dh also applied for a new position that will be slightly more pay and higher pay increases. He has maxed out in his current position and has only received cost of living increases for at least a year. This position also has a company vehicle, which means no more fuel costs for going to work! That will be a huge savings for us.
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#8 of 130 Old 10-01-2008, 03:51 PM
 
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After a great Sept. with welcoming a new baby, October has hit us hard. Dh is getting a new crown today, and I'm saving for one myself. It'll take a few months, and we have dental insurance ( though not 100%). I'm thrilled to have been on the baby steps though. Back in the spring, we would have just done both, putting it on cc. No more! Cash is king, and we will make this happen the right way. I just look forward to getting back on the snowball in 2009. Thank heavens I paid off two cards early in the summer. I actually can save for it now.
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#9 of 130 Old 10-01-2008, 04:17 PM
 
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subbing

: Lots of job vibes to all that need them and hoping they come right back at us. DH is home now, which is nice that he can reconnect with our kids. Budget sure is tight though. I'm proud of us though we are sticking right to it!!! I think it's harder for DH than me. I grew up poor, wasn't so bad.

Baby step 1 - done
Baby step 2 - working on it
Baby step 3 - we actually are working on this one too since DH is now unemployed, it's more important than ever.

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#10 of 130 Old 10-01-2008, 05:11 PM
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October 1 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

Goal: Pay off $1500.
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#11 of 130 Old 10-01-2008, 05:20 PM
 
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Still working on BS3, half way done with my FFEF.

For all of you in BS1 & BS2, keep at it and work the plan it works!
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#12 of 130 Old 10-01-2008, 06:40 PM
 
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Hi, I'm Liz. We're on steps 4-6, but are currently at a standstill because dh is out of work. He was laid off at the end of July. We're living off of my income and unemployment. Because of his severance pay, we haven't had to tap the emergency fund yet.

Dh has job interviews this week on Thursday and Friday and he's been applying for jobs every day. I'm hoping something will come along soon.

Midwife (CPM, LDM) and homeschooling mama to:
13yo ds   10yo dd  8yo ds and 6yo ds and 1yo ds  
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#13 of 130 Old 10-01-2008, 06:40 PM
 
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Mama to 9 so far:Mother of Joey (20), Dominick (13), Abigail (11), Angelo (8), Mylee (6), Delainey (3), Colton (2) and Baby 8 and Baby 9 coming sometime in July 2013.   If evolution were true, mothers would have three arms!

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#14 of 130 Old 10-01-2008, 10:32 PM
 
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BS0 - My husband gets paid tomorrow, and we will be using that to catch up the last little bit on all our bills. Everything will be up to date (well, except the mortgage - I know, I know - but that's a whole nother post ).

BS1 - We will have our emergency fund in one go, because there is an extra pay period this month.

BS2 - We have a mortgage and about $10,000 on our car loan, no consumer debt and no student loans.

I'm thinking, at this point, I'm going to work out of order here, and start on BS3 before paying off our van. I'd feel safer having 3-6 months expenses sitting around.
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#15 of 130 Old 10-01-2008, 11:17 PM
 
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I'm still here. Plugging away on BS2. Still have $33,847 to go. I'm hoping to send off a $1500 payment, but I'll have to see what dh's commission check is like in the middle of the month. We have quite a few expenses this month that aren't normally there. I'm doing my best to hold on tight to the budget. Last year at this time we would have been struggling with these expected unexpecteds. I'm so glad I found Dave!!

SAHM to the munchkins (14.5, 11.5, 9.5, 3, and almost 2)
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#16 of 130 Old 10-02-2008, 10:16 AM
 
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MonkeyPrincess,

Your mortgage isn't considered part of baby step 2. BS2 is all non-house debt.

Midwife (CPM, LDM) and homeschooling mama to:
13yo ds   10yo dd  8yo ds and 6yo ds and 1yo ds  
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#17 of 130 Old 10-02-2008, 11:11 AM
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Originally Posted by MonkeyPrincess View Post
BS0 - My husband gets paid tomorrow, and we will be using that to catch up the last little bit on all our bills. Everything will be up to date (well, except the mortgage - I know, I know - but that's a whole nother post ).

BS1 - We will have our emergency fund in one go, because there is an extra pay period this month.

BS2 - We have a mortgage and about $10,000 on our car loan, no consumer debt and no student loans.

I'm thinking, at this point, I'm going to work out of order here, and start on BS3 before paying off our van. I'd feel safer having 3-6 months expenses sitting around.
If those are your only 2 debts, yeah, I would do the FFEF before paying off the car.

That's pretty good, too. You are doing better than a lot of Americans, having only house and car debt. That's like a 1960's lifestyle.
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#18 of 130 Old 10-02-2008, 11:12 AM
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MonkeyPrincess,

Your mortgage isn't considered part of baby step 2. BS2 is all non-house debt.
Actually, HELOCs and HELs of less than 50% of your annual income are part of BS2.
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#19 of 130 Old 10-02-2008, 01:23 PM
 
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We're doing billing tonight, and at that point I will be able to post where we are. subbing for october.....
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#20 of 130 Old 10-02-2008, 05:11 PM
 
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We're sortof working on BS1 and 2 simultaneously. When I got my student loan fall check, we paid off some major debt and put 1K in savings. Then the car broke down, but that's what the money in savings was for. (It was so nice to be able to pay for the repairs straight out--no borrowing money.) I'd already made my budget through Xmas, so I'm still paying off some debts and also putting the money from DH's raise, which wasn't in the budget, into savings to build the emergency fund back up. By Jan, our tax return should take care of the last bit of the car loan, and then it's just student loans and any left over hospital bills for this baby coming. I'm putting the spring student loan check in savings for our living expenses (with me not working, we may need it for rent over the next year, along with any unforeseen events), and then we'll be working on paying off the loans and the hospital.

So much better than it was this time last year!!! The cc's are paid and cut up, the old bills are done with, whew! It feels nice even though we still have a ways to go.
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#21 of 130 Old 10-03-2008, 01:03 PM
 
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BS1 $50/$1000

I now have DH FULLY on board :
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#22 of 130 Old 10-03-2008, 01:36 PM
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Originally Posted by p1gg1e View Post
BS1 $50/$1000

I now have DH FULLY on board :
That's great!
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#23 of 130 Old 10-03-2008, 01:41 PM
 
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I may have to dip into savings a little this paycheck to pay off 2 credit cards.
We are getting there! We still have a ways to go but so far on this debt pay-off that we started this year, we have saved almost $400 a month in minimum cc pmts. That is like real breathing room for us.
I also need to save some $$ for our holiday we are taking in November. After I squeeze these cards gone, things will be so much easier...there is a lot more room than ever before, it seems.
Subbing....

Where we are at:
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
(we still have quite a bit to go....10000 in cc debt and 8000 van loan)

BS3 Three to six months of expenses in savings
savings is at $400

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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#24 of 130 Old 10-03-2008, 01:42 PM
 
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forgot to sub...
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#25 of 130 Old 10-03-2008, 03:00 PM
 
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Husband and I have started following the baby steps.

BS1- $1000 in savings- DONE this month!
BS2- Debt- I paid off one card last month and will pay off another next month. We're really hitting the CCs hard. I can NOT wait until we have NO CC debt.
BS3- EF- Money automatically goes into savings every month, so now that we're over 1K, the extra money will go to the EF.
BS4- Invest- DH starts a new job next month. We will set up autmatic withdrawls into a 401k, even if it's only $20 a paycheck to start.

Adrienne belly.gif - Loving my DHguitar.gif, our daughter Harper Emaline ROTFLMAO.gif (3/2011), and maybe a baby?? jaw2.gif (5/2013)

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#26 of 130 Old 10-03-2008, 05:07 PM
 
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Do you ever struggle with a balance between spending time with your family and significant other, and maximizing your income to do the snowball faster?

DP works nights right now, and I work days, which saves us money on childcare and lets him work as a waiter, sometimes making pretty good money. I'm miserable with the situation because I miss him, I absolutely hate being alone so much with the kids, and in two weeks I will begin classes again and it is so hard for me to find time to do my schoolwork when I'm either with the kids or at work all the time.

I want him to quit this job and work days again, but I feel like I am doing the wrong thing to get out of debt faster.
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#27 of 130 Old 10-03-2008, 07:09 PM
 
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We're still just hanging out trying to get our snowball started again. We are stuck on BS2 with just under $50,000 in debt left to pay off Mostly student loans.

Rosie we struggle with that too. DH has been working a LOT and I understand your lonliness. We miss DH a lot here. I can't wait until we're debt free and he doesn't have to work so much!

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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#28 of 130 Old 10-03-2008, 10:24 PM
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P1gg1e, congrats on having your dh on board, that will help a lot!

lunamama, you are doing great on paying off the ccs! Won't be long before you are done.

Virginia884, welcome and congrats on finishing bs1 and getting a card paid off already. I'd take any extra money over 1k (or 2k if that makes you feel more comfortable) and put it straight onto your debt before adding to your ffef.

I'm still having trouble figuring out how to handle the third pay this month. Dh is paid biweekly so this is a 3 pay month. I will pay off this month's bills and do an early pay on some of next months then take the rest and slam the last cc I think. Is that how people do it with the 3rd cheque?
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#29 of 130 Old 10-04-2008, 12:16 AM
 
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We are doing pretty well this month, working on BS3.

Just trying to decide how much I should aim for to have a 'fully funded' emergency fund. I think we need to have 6 months, because in 11 months I know for certain that my DH's job will be changing and he is the only breadwinner.

Go Green I don't vax either, why mess with perfect?
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#30 of 130 Old 10-04-2008, 12:18 AM
 
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We have been trying to get serious about paying off debt for awhile and we always flounder......we like to live too comfortably. BUT, now that we have a little one and I'm a SAHM, we realize the error of our ways.

BS1 - Complete!
BS2 - Going to take all savings except $1000 and put toward car. That would equal $2600 to start.

Debt:
Car = $12,000
Student Loans = Something like $60K for three degrees. :

We don't have a lot of extra to get snowball moving.....I will be working from home as best I can with a 10 week old. We haven't been out to eat since Sunday. :

rosie_plus_one: I also struggle with this. My DH might be able to pick up some extra work, but I hate for him to be away from our little one any more than he has too.

Margie : & DH - Mom to sweet Avery Naoma : Our surprise breech homebirth! :
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