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IsaacsMom2009 02-18-2013 09:55 AM

Dave Ramsey Support Thread ~ Feb 18 - Feb 24
We are here to support each other now while we live like no one else, so that in the future we can live like no one else.

The Baby Steps:

Pre-Step 1: Get current on your debts and do a budget
Before you begin the baby steps, you must be current on your bills and, if you aren't doing one already, begin doing a monthly budget.

Baby Step 1: Save $1000 cash in the bank
Start your emergency fund. If your income is less than $20,000, make that $500.

Baby Step 2: Get out of debt
With Gazelle intensity and using the debt snowball, pay off all your debts.

Baby Step 3: Finish the emergency fund
With the money you were paying towards debt, now with no debts, you can save 3-6 months of expenses into a fully funded emergency fund.

Baby Step 4: Save for retirement
Saving 15% of your income didn't seem possible before, but with no payments, you'll be ready for retirement and not have to take a job as a Wal-Mart greeter.

Baby Step 5: Save for College
Instead of taking out student loans, your kids will be eternally grateful you thought ahead and had a plan for their higher education.

Baby Step 6: Pay off the house

Baby Step 7: Build Wealth and Give It Away

Expanded Baby Steps:
0.1 Commit to NEVER borrow $$$ EVER for ANYTHING other than possibly a house
0.2 Talk with spouse and get him/her on the same page as you concerning finances
0.3 Do a written budget
0.4 Temporarily stop all retirement contributions
0.5 Get current on the basics (You MUST have Food, Utilities, Shelter, Basic Transportation)
0.6 Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months
0.7 Cut lifestyle (Cut CATV, Cellphone, Regular phone "extras", Internet, Eating out, etc) and/or take a second job if $1000 EF will take more than 30-90 days. (depending on income)
0.8 Get current on ALL bills.
1.0 Save $1000 in Baby Emergency Fund (EF)
1.1 Chop up CC's. (You have an EF now, no NEED to keep those CC's!!!)
1.2 Get Health Insurance NOW (chances of getting sick w/major medical bills are larger than that of death), especially if you have children.
1.3 Get Life Insurance NOW if you have debt/your family couldn't make it financially if you died. Especially important if you have children! Social Insecurity only provides a small amount of coverage if you have dependents.
1.4 Amputate cars that you can't pay off within 24 months (you have an EF to fix "bondo buggy" if something should happen)
1.5 Consider raising insurance deductibles to $500 or $1000 and dropping full coverage on paid for "bondo buggy" (you have an EF ya know)
1.6 Draw up a will.
1.7 Get Long-Term Disability Insurance.
2.0 Do debt snowball, paying all your debts from lowest BALANCE to highest.
2.1 You can take your first vacation since finding Dave if you can pay cash for it. (no using the EF!!!)
3.0 Save 3-6 months EXPENSES in EF (FFEF)
3.1 Start replacement car fund.
3.2 Save up 20% for home purchase OR pay down existing mortgage to the point that you can drop PMI.
3.3 Start furniture or other non-essential stuff replacement fund.
3.4 Move up in car if you still feel the need to (must pay cash for it!, you can only buy NEW if you have a net worth over a million dollars)
4.0 Start contributing 15% of your paycheck to retirement.
5.0 Save for kids college fund.
6.0 Pay off the house early.
7.0 Live like no one else since you have lived like no one else! Give, Build Wealth and Have Fun!

Here's a link to some of Dave's budgeting forms - check them out if you need a place to start with creating a written "zero based" budget.

Some good quotes for motivation...

"If broke people are making fun of your financial plan, you’re on track." -Dave Ramsey

"Whenever you find yourself on the side of majority, it is time to pause and reflect." -Mark Twain-

"What can you do when you have no payments? Anything you want!" - Dave Ramsey

"Debt is dumb, cash is King, and the paid off mortgage has taken the place of the BMW as the status symbol of choice" - Dave Ramsey

"People often say that motivation doesn't last. Well, neither does bathing—that's why we recommend it daily." — Zig Ziglar

"We buy things we don't need with money we don't have to impress people we don't like." - Dave Ramsey

IsaacsMom2009 02-18-2013 09:56 AM

Re: Dave Ramsey Support Thread ~ Feb 18 - Feb 24
Good Morning!

A new week, a new chance to do better :D

How is everyone doing?

frugalmomof2 02-18-2013 10:07 AM

Re: Dave Ramsey Support Thread ~ Feb 18 - Feb 24
Kearson, are you guys feeling better? :hugs:

We're doing great here! We pay off the personal loan on Friday and then it's just the car note (I have SLs but they are in deferrment till 2015 so the car is the only focus for the next year).

We have some budget changes coming in the next few weeks (changes to cell phone service, internet service, grocery budget) and I need to work out a "new" budget for you guys to pick apart.:giggle: That's my today goal :)

IsaacsMom2009 02-18-2013 10:12 AM


Originally Posted by frugalmomof2
Kearson, are you guys feeling better? :hugs:

We're doing great here! We pay off the personal loan on Friday and then it's just the car note (I have SLs but they are in deferrment till 2015 so the car is the only focus for the next year).

We have some budget changes coming in the next few weeks (changes to cell phone service, internet service, grocery budget) and I need to work out a "new" budget for you guys to pick apart.:giggle: That's my today goal :)

Yes, we are doing a lot better. I'll be back to work tomorrow and DS is halfway through his mess and only has the phlegm in his throat left to get rid of :thumbsup:

deezee02 02-18-2013 11:04 AM view right?

So we ended up doing $50 for the wedding. If they are mad, so be it. My parents gave a nice amount, so I am not worried about it. Nice thing was we did a gift. And I had gift cards to cover the price of the gift so we did not spend anything oop.

W bought dh a pair of dress pants, tie, socks and shirt from kohls. I think it came up to around $60. Plus we had a 30% off coupon and I happened to have things I needed price adjusted in the I ended up with kohls cash too. And I finally found a winter coat (mine is 10 years old and totally dead and too big) so it worked out well. Not sure if he will ever wear it again (he has 7 suits tons of shirts and ties) as he always wears a least the tie and shirt will be worn again I guess. We typically get him 2 new suits a year, this year we may build on the pants we just got and do a sports coat and another pair of pants instead. Thankfully he did have his shoes and belt!

Now onto dh's accident. He was cited, , so we will have to pay that fine. Damage to her car, so we will either have the deductible (1000) or to pay for that. I am guessing around $1300 that we will be paying in the next few weeks. I just hope she is honest with the damage.

My dad should be filing my taxes soon...hopefully that helps.

AmberP 02-18-2013 12:28 PM

Re: Dave Ramsey Support Thread ~ Feb 18 - Feb 24
Nothing really new here. Going to pull cash out for the 2nd half of the month today. Grocery shopping is done until sunday.

Our first car payment isn't due until 3/18. I think they might be slightly confused when I go in with a check for almost half of what we owe LMAO.

lyn1270 02-18-2013 12:55 PM

Re: Dave Ramsey Support Thread ~ Feb 18 - Feb 24
glad to hear that those of you w/sick LOs are doing better. I have 2 of my 3 sick at the moment, so school was a total wash today :s. good news on the wedding gift & on the kohls cash and such. too bad about the car :/ maybe it will all work out.

things are just plugging along here. getting a few more things listed on our local garage sale FB site. i like these free sites as it's easier than me trying to have a huge yard sale. although, we may still have a yard sale sometime in march.

all bills are paid for the month....padding in the checking acct & enough to cover the first part of next month's bills just in case there is lag time in payment for DHs clients.

EmmaGM 02-18-2013 01:18 PM

Did the grocery shopping last night and I was about $15 over. I realize one of my huge issues is that we eat too much cheese. Cheese is expensive!

Part of that was 5lb of ground beef though which I'd like to last us a month.

I'm also not even counting the $27 we spent on chicken at Sam's club. Chicken is $3.99/lb at heb!! Sam's is a 30min drive but for $1.88/lb I'll do it, geez.

frugalmomof2 02-18-2013 01:24 PM

Re: Dave Ramsey Support Thread ~ Feb 18 - Feb 24
DH and I had a great budget meeting yesterday since we are making some changes to expenses. We made some great decisions based on the past couple months of expenses and income without any overtime.

1. When we moved here we signed up for a promo with the internet company for 1.7mbps for $24.99/month for 6 months. That was the cheapest rate out there without a contract, and we do not want a contract. Well, the promo expired and we were going to be paying $40/month for 1.7mbps. We really like the company and their awesome customer service and don't want to change to any other company even if they are slightly cheaper, so we stayed with them and upgraded to 12mbps for $50/month. Yes, it's $10 more expensive. But we have noticed a HUGE difference. I am on the computer a lot for my college classes and need a decent speed to download lectures etc. DH watches youtube constantly on his laptop. We don't have cable, we have a ROKU and when it's on our internet speed suffers badly and most of our shows take forever to load. It's well worth the extra $10 to us.

2. We are leaving Verizon and switching to a prepaid service which will cut out cell phone bill in half AND give DH some data (we have zero data now), which is something he's been begging for. We will save $50/month with this switch. He is using his "fun money" from the tax return to invest in a nice smartphone. I will use a smartphone I already got from a friend for cheap.

I like that both of these changes (internet/cell) keep us off contracts so we can terminate at any time or change if our needs change.

3. We are increasing the grocery/tolietry budget by $50/month. We are doing MUCH better since switching to monthly grocery shopping to elimate grocery leaks, but with DH taking his lunch 4/5 days a week and the kids snacking like ravenous monsters, it needs increased. We decided it's better to increase it then be frustrated when we go over it every month.

4. Since we will have all our small debts paid off after this month, we will have a pre-overtime snowball of $100 extra to the car payment each month. I've said it before but DH gets about $200-300 of overtime a month (this month he had $400+ in one week - which allows us to finish off the personal loan this week). ALL of the overtime (and bonuses) will go to the car note.

Ok, so no HUGE changes but some small changes that I wanted to share - it keeps me honest in terms of keeping our lifestyles at a minimum...but also helps me see that a cash paid vacation this year is ok.


Amycorn 02-18-2013 01:27 PM

Not sure if this is an open group or not but we also follow the total money makeover :)
We've been using the envelope system for almost 2 years with great success and are living around step 3 and saving up for a larger emergency fund and a house :)

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