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-   -   Dave Ramsey Support Thread Oct 15 - Oct 21 (http://www.diaperswappers.com/forum/showthread.php?t=1454004)

IsaacsMom2009 10-15-2012 09:21 AM

Dave Ramsey Support Thread Oct 15 - Oct 21
 
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.
http://beta.daveramsey.com/tools/budgetForms

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 10-15-2012 09:27 AM

Re: Dave Ramsey Support Thread Oct 15 - Oct 21
 
I apologize for running late this morning with the new thread. I had a rough night and I feel like I'm so far behind today already and it's only 8:30am :(

I'm looking forward to getting my new bed on Wednesday. Other than that I am just trying like heck to not spend any money whatsoever. We've been eating out of the pantry for a while now, and still have more to go. FIL bought 40lbs of chicken from Zaycon, so we pick that up Thursday. We still have some left from the last buy, but I think we'll be able to finish that off with some creativity.

emilyrebekah 10-15-2012 10:37 AM

Hubby received a raise! :lostit: It was small, but it is helpful nonetheless. Our friend is moving in this week, he'll live here a few months. What we charge him for rent will go right into the BEF.

IsaacsMom2009 10-15-2012 11:52 AM

Re: Dave Ramsey Support Thread Oct 15 - Oct 21
 
Quote:

Originally Posted by emilyrebekah (Post 15814076)
Hubby received a raise! :lostit: It was small, but it is helpful nonetheless. Our friend is moving in this week, he'll live here a few months. What we charge him for rent will go right into the BEF.

Woohoo! That's awesome!

MotherMoonPads 10-15-2012 12:17 PM

Re: Dave Ramsey Support Thread Oct 15 - Oct 21
 
Quote:

Originally Posted by IsaacsMom2009 (Post 15813751)
I apologize for running late this morning with the new thread. I had a rough night and I feel like I'm so far behind today already and it's only 8:30am :(

I'm looking forward to getting my new bed on Wednesday. Other than that I am just trying like heck to not spend any money whatsoever. We've been eating out of the pantry for a while now, and still have more to go. FIL bought 40lbs of chicken from Zaycon, so we pick that up Thursday. We still have some left from the last buy, but I think we'll be able to finish that off with some creativity.

I was just looking into Zaycon, I really wish they had a pickup closer to us.

Quote:

Originally Posted by emilyrebekah (Post 15814076)
Hubby received a raise! :lostit: It was small, but it is helpful nonetheless. Our friend is moving in this week, he'll live here a few months. What we charge him for rent will go right into the BEF.

Woohoo for the raise!

Quote:

Originally Posted by slimy72 (Post 15813344)
That would be nice, but I don't see that happening! So far everyone that's looked at our car doesn't even want to take it in on trade. So frustrating. I found a car I love, it's just perfect. I've been going back and forth. I WANT to drive an SUV, I love the room, I love sitting up a bit, etc... I NEED good gas milage (don't want to be paying a ton for a vehicle AND Gas and have it eat up all the extra money every month.). I WANT room for my dogs to ride with us, and luggage, and strollers ect... I want to buy a car that even if we have one more (or twins like my dreams keep pointing me toward- I have crazy dreams), it will still fit us all comfortably without having to feel cramped or upgrade cars. I REALLY WANT a vehicle with a third row so should the totally unlikely even of 3 kids happen (pipe dream territory here- 10 years TTC and only one living child probably indicates this isn't going to happen) I still have a seat in my car for my mom when she's with us. Well, the Mazda CX5 fits all of those wants except the extra seat for mom in the event of three AND the great gas milage. It gets the same MPG as my ford focus does with all of the room of a small SUV. I LOVE it. Of course I dont' want the dealer to know that, but it's perfect. Problem is, it is brand new in 2013, so my only option is to buy new. I can buy the most stripped down basic model with a manual transmission (I prefer stick anyway) for only about $2 K more than a focus. The base model is about $20K which is a lot for a car. I know what I should do. I should buy a small used car that I can pay cash for and go on my merry way. The problem is I have had so many lemon cars in a row now (ford truck, followed by toyota 4 runner, then another ford truck, then a chevy cavalier, then a buick rondevous, and now a ford focus ALL LEMONS!) I really want to buy something new that no one has caused problems with.

Yeah, it probably wouldn't work with buying a new vehicle. I'm not much into new(er) vehicles :blush: BTDT (actually bought a Focus brand new in 2003).
I totally get wanting a new one, but new doesn't mean it's not going to be a lemon either :( I hope that things work out the way you want them!

AFM, I'm STILL waiting to hear if they can fix my serger/source the part. I'm starting to go insane. I am going to focus on wetbags this week so I can at least still do something.

ChelseaGirl7 10-15-2012 02:42 PM

Quote:

Originally Posted by emilyrebekah
Hubby received a raise! :lostit: It was small, but it is helpful nonetheless. Our friend is moving in this week, he'll live here a few months. What we charge him for rent will go right into the BEF.

Woot! Every little bit helps!

Denelle- Hope you can get things figured out so you can get back sewing again!

Afm- we are on track to be caught up with all the bills by the end of the month!

I am wondering what you all think, we don't have a bef yet since we aren't caught up. We will be starting it next month I'm sure. The thing is, our 2 debts we should be able to pay off within 4 months, and paying minimum payments only they will both be paid off by April (car loan, 6 months left). The other one is asn old business contract that will be paid off in dec. I am seriously thinking about only doing a 500 bef, then paying off the car payment by february. Then doing the ffef. I kind of feel like I can "justify" this because we have lived off of a 20k income most of this year(and didn't fall behind until we had no income), although dh is currently going to make around 32k I think (maybe more, depends on hours). I'm just thinking we should be able to squeak by for 2 months, and we might even be able to slowly add after the first debt is paid off. Any thoughts?

Chelsea mom of 4, from my phone

Marianna1988 10-15-2012 02:57 PM

Went grocery shopping. I usually budget $200 for 1/2 month, but because I need to buy so much baby/kid stuff in the next month or so, I gave myself $150 instead. Last night when I made my shopping list, I estimated it to only cost about $100. I actually OVER estimated it, but when shopping I realized I forgot a few things (...like $35 lol), and I bought a few good deals on markdown that I can freeze. Even so, I still only spent $137! $13 under budget :lostit: for 17 days worth of healthy, organic, mostly whole foods (the only processed/packaged things were Triscuits, dave's killer buns, brown cow yogurt, and organic chocolate chips... Mama's got a sweet tooth lol). Now I just have to keep my husband out of it. Lol. He has some compulsion that if we have it, he MUST eat it... NOW. Even though he's not actually hungry. He even said that last time I bought extra of something knowing he would want to snack on it. "oh wow, now I can eat even more!" :rofl:

Sent from my iPhone using DS Forum

Bumstoppers 10-15-2012 03:06 PM

Nothing much here, got paid but still haven't done the bills. Budgeted $200 for food, and spent $300 :(

Marianna1988 10-15-2012 03:17 PM

Quote:

Originally Posted by IsaacsMom2009
I apologize for running late this morning with the new thread. I had a rough night and I feel like I'm so far behind today already and it's only 8:30am :(

I'm looking forward to getting my new bed on Wednesday. Other than that I am just trying like heck to not spend any money whatsoever. We've been eating out of the pantry for a while now, and still have more to go. FIL bought 40lbs of chicken from Zaycon, so we pick that up Thursday. We still have some left from the last buy, but I think we'll be able to finish that off with some creativity.

Woo! New bed and chicken! Lol

Sent from my iPhone using DS Forum

Marianna1988 10-15-2012 03:18 PM

Quote:

Originally Posted by emilyrebekah
Hubby received a raise! :lostit: It was small, but it is helpful nonetheless. Our friend is moving in this week, he'll live here a few months. What we charge him for rent will go right into the BEF.

Congrats, hubby! I bet the renter $ is going to be helpful! Yay!

Sent from my iPhone using DS Forum


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