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-   -   Forced to go with the Dave Ramsey Way.. lol (http://www.diaperswappers.com/forum/showthread.php?t=1450219)

jenn5388 10-03-2012 07:22 PM

Forced to go with the Dave Ramsey Way.. lol
 
Hey,

Actually, around 3 years ago, I Embraced DR. I really tried to follow most of his teachings and did get rid of my credit card debt.. but in the time we have gotten 2 new cars.. I call it falling off the wagon.. lol but we are getting rid of our home equity line AND our mortgage!!

We short saled the house.. Well, We're in the process anyway. :blush:

Not because we're in Foreclosure or we're not paying the mortgage anymore.. but because we've run out of room.. and found out that it would take like 10 years to break even on the loan. We don't want to be here another 10 years. Our realtor has advised us to go to a cash only plan.. and while I was never onboard with the cash only part of DR because I was afriad of loosing the money, running out of money in the grocery store, etc, I decided it's time I guess.

So I know the basics.. My question is, the people that went to the cash only plan, do you shop online still? Do you have Debit cards? should I do anything, or know anything that you think I might not know? Oh, what did you buy to keep your money in/organized? did it take awhile to get used to? we use our debit cards ALL THE TIME. I think this is going to be hard.

janellenowitzke 10-03-2012 07:57 PM

Re: Forced to go with the Dave Ramsey Way.. lol
 
Just wanted to say we are going through the exact same home issues. Ugh. There is not good answer, but we simply can't raise our growing family in this house.

KelseyH 10-03-2012 09:27 PM

Quote:

Originally Posted by jenn5388
So I know the basics.. My question is, the people that went to the cash only plan, do you shop online still? Do you have Debit cards? should I do anything, or know anything that you think I might not know? Oh, what did you buy to keep your money in/organized? did it take awhile to get used to? we use our debit cards ALL THE TIME. I think this is going to be hard.

We interpreted "cash only" as "only money we have, no credit", not "green money only".

We do 100% cash for groceries and my horses because we buy all of that locally/in person. About 50-60% of our clothing budget is cash because if I find a good deal online, I want to be able to order it (IF it fits in the budget). About 20-30% of my blow money is cash because most of my blow money gets spent on books at Amazon (or diapers, lol!) but all of DH's blow money is on his debit card. All of the gas budget is on a debit card because the cheapest place to fill up is Sams and they don't take cash.

Just start with one budget category in cash and go from there - and don't be afraid to tailor it to what works best for you! Good luck :)

happysmileylady 10-03-2012 10:04 PM

Re: Forced to go with the Dave Ramsey Way.. lol
 
Here's the thing about cash only...as in actual dollar bills cash only. One of the biggest reasons to go to that sort of budget is that having actual cash dollar bills and using actual cash dollar bills to pay for things really truly does make you think just a bit more about the dollars you are spending. And this becomes more true the longer you use the system.

We use cash for almost everything. And in fact, DH gets paid every week, and we often have to take part from week 1, part from week 2, etc each month, so we always take that in cash too.

Groceries are in cash.
Mortgage is in cash.
DH's gas is in cash.
My gas is on the debit card and the tank gets filled up on the way to the ATM
Car maint is in cash
The car insurance is an auto deduction from our bank account. If we have to budget for it on the off week (ie it comes out on the 15th but if we need it to come out of the check on the 5th) then I take the cash out on the fith, put it in it's envelop, then put it back in on the 15th. not a fabulous system with that, but it keeps me or DH from spending it.
Electric I pay online using my debit card as a CC. I pay it on pay day, in the morning before I hit the ATM for the cash. We budget weekly and sometimes I have to make a partial payment weekly, which is never a problem for our utility companies. I have had problems paying like that with debts, but never on utilities.
Natural gas is paid online just like the electric
Cell phones I pay in cash at the kiosk in the store...saves tax money that way actually
Sewer, water and trash are paid online, just like the electric. All are paid on the provider's website except water. That one is paid through my bank's online banking system.
Netflix is an auto debit on the debit card as a CC
Our misc envelop (meant to be an "expect the unexpected" fund)is cash and our blow money is cash
We have 3 debts with regular minimums, 2 are auto debits, and one is paid online like the utilities. They have to be budgeted to come out the week they are due to be debited.
Everything else is cash, like school fees, car registration, etc etc.

Now...I NEVER carry all that cash around with me. The only time I even have most of it is right when I take it out of the ATM. Often, I am taking the cash out of the ATM and then spending it or paying the bill with it within hours, or a few days at most. When I pay my daughter's book fees, I hit the ATM in the morning, and then pay the bill at the school in cash that afternoon when I am there picking her up anyway.

For the things that we do have to hold on to for awhile, like groceries or whatever, We have a binder system that includes envelopes that I can jsut pull out and take with when needed. Or DH can pull out and take with when needed, with no need to ask me for "permission." With the binder that we can both get to easily, it really is the BUDGET telling him no, and not me. Plus, no one has all the money all at once, and it's not at risk of being lost or stolen while out running errands. We can also bring back receipts and store them and track them in the binder, as well as goal sheets, records, etc. I am still working to get the binder organized just how I want so it's a work in progress.

We also TRACK every dollar and cash expense on excel sheets, that we also keep in our phones. Those are more for personal use, I don't mess with his spreadsheet, he doesn't mess with mine.

bluecandi 10-04-2012 06:20 AM

I do gas on the debit card because I go to castco because its cheaper, and I usually have my 2 and 4yo with me and I dont feel like schlepping them in and out of a gas station. So debit it is. I buy wipes and a few other things on amazon since its cheaper but its on the debit too. I like to pay cash for groceries because I ALWAYS spend less. :)

happysmileylady 10-04-2012 06:27 AM

Re: Forced to go with the Dave Ramsey Way.. lol
 
I do want to say, I don't shop online...because I just don't shop online all that much...not because I won't use my debit card. Occasionally, when it's necessary, we will buy something line, and when it's budgeted for, we do use the card for that...the money is generally left in the account the week we plan to buy it. Because it's already budgeted for, it's not hard to limit myself, only buy exactly what's planned fand budgeted for.

LadybugMonkey 10-04-2012 11:00 AM

Re: Forced to go with the Dave Ramsey Way.. lol
 
I use debit for pretty much everything.

I have my account hooked up to mint.com and have my budget categories on there. I keep a really close eye on my account on there and keep track of what I'm spending in my different categories. I am forgetful so carrying cash is very dangerous for me.

MamaJules 10-04-2012 11:14 AM

Re: Forced to go with the Dave Ramsey Way.. lol
 
Quote:

Originally Posted by happysmileylady (Post 15767275)
Here's the thing about cash only...as in actual dollar bills cash only. One of the biggest reasons to go to that sort of budget is that having actual cash dollar bills and using actual cash dollar bills to pay for things really truly does make you think just a bit more about the dollars you are spending. And this becomes more true the longer you use the system.

We use cash for almost everything. And in fact, DH gets paid every week, and we often have to take part from week 1, part from week 2, etc each month, so we always take that in cash too.

Groceries are in cash.
Mortgage is in cash.
DH's gas is in cash.
My gas is on the debit card and the tank gets filled up on the way to the ATM
Car maint is in cash

How do you pay your mortgage in cash? Do you have it through a local bank? We originally got ours through a local bank, but of course they immediately sold it.

happysmileylady 10-04-2012 11:25 AM

Re: Forced to go with the Dave Ramsey Way.. lol
 
Chase bought our mortgage a while ago so I just take the payment into any chase branch. I would never have chosen Chase intentionally but they are who bought the mortgage last time it was sold so that's what I do.

jenn5388 10-04-2012 02:21 PM

Yeah, talked to dh last night and decided we won't be able to go completely to cash. So our agent will have to deal lol well do food and the other things like that. Gas, his work lunch, but we pay 90% of our bills on Autopay, he doesn't want to change that. Wish us luck! We already have a buyer, we were on the market for less than a week. I hope it goes smoothly.


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