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Old 10-08-2012, 08:36 AM   #1
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Dave Ramsey Support Thread Oct 8 - Oct 14

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
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Old 10-08-2012, 08:39 AM   #2
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Re: Dave Ramsey Support Thread Oct 8 - Oct 14

I get paid on Wednesday and I'm just hoping my gas holds out until then. Gas prices jumped $0.60/gallon in the last week! I got my AAA paid, and made payments on my cards last pay day, but I still feel so behind I'm hoping this pay day (with a bigger paycheck) will help alleviate that feeling.

How is everyone else?
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Old 10-08-2012, 08:49 AM   #3
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Re: Dave Ramsey Support Thread Oct 8 - Oct 14

Kearson, I can't believe how much gas went up either! I'm thankful that DH rides his motorcycle to work and the children can take the bus to school.

AFM, it's going to be a long week. Found out DD missed the fundraising for cheerleading, so she needs $180 for that plus $55 for insurance since we don't have any. Add in that she also needs an eye exam (and likely glasses), plus I have normal bills to cover, I'm a but overwhelmed and it's not even 8 AM on Monday morning! It's going to be a long week of sewing! I might list some of my hand spun too, to see if I can at least cover the eye exam with it.

Edit: Joke's on me, my serger died this morning. Guess I'll be doing a lot of cutting instead of sewing this week
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Old 10-08-2012, 09:19 AM   #4
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Re: Dave Ramsey Support Thread Oct 8 - Oct 14

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Originally Posted by MotherMoonPads View Post
Kearson, I can't believe how much gas went up either! I'm thankful that DH rides his motorcycle to work and the children can take the bus to school.
I'm not so desperate to ride a motorcycle, but I'm seriously considering asking FIL to trade vehicles with me Right now I drive his truck and he drives his Prius. He drives <60 miles a week and I drive 140+ It doesn't sound too bad until you know that the truck gets about 15 mpg, and at almost $5/gal, that's almost $50/wk for gas. If I were driving the Prius I'd be spending about $15/wk in gas. I wish I had the ability to go BUY a Prius... sigh... oh well.
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Old 10-08-2012, 09:29 AM   #5
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Re: Dave Ramsey Support Thread Oct 8 - Oct 14

I need to come back for some more motivation. We are having a hard time not spending right now. We are on Baby Step 6. Last month my dad died of a massive stroke and so our snowball went to funeral, travel, eating on the road etc. This month it's now hard to pay that extra to the house. I've got a bad case of the "I WANTS". Partly because I think I'm miserable and miss my dad. I'm tired of feeling deprived. I know I will be so much happier if I wait. It's just hard to convince myself right not that "stuff" isn't gonna solve my unhappiness and loss. So here, I said it out loud and now I gotta stick to what I know is right. It's just hard.

My youngest son has also been having some speech issues. Now our doctor feels he needs an MRI and to see a neurologist. Which I'm stressing over. Luckily, it's not a money issues that have me stressed. We have enough set aside for medical this year in our HSA.

So I'm trying to commit to: "use it up, wear it out, make do, or do without."
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Old 10-08-2012, 11:34 AM   #6
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Quote:
Originally Posted by Ducko
I need to come back for some more motivation. We are having a hard time not spending right now. We are on Baby Step 6. Last month my dad died of a massive stroke and so our snowball went to funeral, travel, eating on the road etc. This month it's now hard to pay that extra to the house. I've got a bad case of the "I WANTS". Partly because I think I'm miserable and miss my dad. I'm tired of feeling deprived. I know I will be so much happier if I wait. It's just hard to convince myself right not that "stuff" isn't gonna solve my unhappiness and loss. So here, I said it out loud and now I gotta stick to what I know is right. It's just hard.

My youngest son has also been having some speech issues. Now our doctor feels he needs an MRI and to see a neurologist. Which I'm stressing over. Luckily, it's not a money issues that have me stressed. We have enough set aside for medical this year in our HSA.

So I'm trying to commit to: "use it up, wear it out, make do, or do without."
((HUGS)). Sorry to hear about your dad.
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Old 10-09-2012, 02:52 AM   #7
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Re: Dave Ramsey Support Thread Oct 8 - Oct 14

Our gas has actually went down here over the past week so I am hoping that it stays that way for a bit. My husband drives 350 miles a week in a tahoe to work and back so Gas has been killing our budget lately.
This week I need to pick up a few groceries but they are budgeted for. I also need to figure out a picnic menu that is fairly cheap but will feed us and some extended people for my birthday picnic this weekend.
Bills have been paid until next check and we just received a small gift from my in laws to help with gas to my sons doctors appt. They help out my husbands sister quite a bit but we have never asked for anything so they wrote a check because they wanted to help out and left it with DH when they went home (they live in another state). My parents gifted us 100.00 after our DD was born before DS first trip. We dont rely on any of the gits but they are really appreciated it and it helps us with the budget for the end of the month when we will be traveling.
I need to find a hotel for our next trip, get the last few small items for halloween costumes, and get our oldest DD 2 pairs of jeans for fall/early winter since its gotten so cold here.
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Old 10-08-2012, 12:06 PM   #8
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Re: Dave Ramsey Support Thread Oct 8 - Oct 14

Quote:
Originally Posted by Ducko View Post
I need to come back for some more motivation. We are having a hard time not spending right now. We are on Baby Step 6. Last month my dad died of a massive stroke and so our snowball went to funeral, travel, eating on the road etc. This month it's now hard to pay that extra to the house. I've got a bad case of the "I WANTS". Partly because I think I'm miserable and miss my dad. I'm tired of feeling deprived. I know I will be so much happier if I wait. It's just hard to convince myself right not that "stuff" isn't gonna solve my unhappiness and loss. So here, I said it out loud and now I gotta stick to what I know is right. It's just hard.

My youngest son has also been having some speech issues. Now our doctor feels he needs an MRI and to see a neurologist. Which I'm stressing over. Luckily, it's not a money issues that have me stressed. We have enough set aside for medical this year in our HSA.

So I'm trying to commit to: "use it up, wear it out, make do, or do without."
I am so sorry for your loss

We listed my car for sale in hopes of getting more than we could trading. If it doesn't sell in a couple of weeks, we will just trade in for a lower loan amount and lower payment.

We have now made arrangements with all siblings that we would not be buying for neices and nephews this year. We will each all buy for our own (growing!) familes and let the time spent together be the extended family gifts. that makes me feel better already about the holiday budget, and we are determined to scale WAY back with our own kids as well.

The end of the month will not see much headway on debt as we are taking DD2 to Diney World for a very early birthday present (I am delivering #5 2 days after her b-day in Feb & I don't think I can walk around Disney later than the 2nd trimester). Fortunately, we will also not incur debt from our trip either, because we set aside money for it as it has been in the works sine Feb this year (pre-DR).
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Old 10-08-2012, 03:42 PM   #9
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Re: Dave Ramsey Support Thread Oct 8 - Oct 14

Quote:
Originally Posted by Ducko View Post
I need to come back for some more motivation. We are having a hard time not spending right now. We are on Baby Step 6. Last month my dad died of a massive stroke and so our snowball went to funeral, travel, eating on the road etc. This month it's now hard to pay that extra to the house. I've got a bad case of the "I WANTS". Partly because I think I'm miserable and miss my dad. I'm tired of feeling deprived. I know I will be so much happier if I wait. It's just hard to convince myself right not that "stuff" isn't gonna solve my unhappiness and loss. So here, I said it out loud and now I gotta stick to what I know is right. It's just hard.

My youngest son has also been having some speech issues. Now our doctor feels he needs an MRI and to see a neurologist. Which I'm stressing over. Luckily, it's not a money issues that have me stressed. We have enough set aside for medical this year in our HSA.

So I'm trying to commit to: "use it up, wear it out, make do, or do without."
Big hugs <3 I went through the I wants just after my grandma died and then again when we sold her house. I went through two months with almost no snowball because I was medicating my depression with shopping. I hope you have better luck keeping yourself at bay than I did.
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Old 10-08-2012, 05:22 PM   #10
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Re: Dave Ramsey Support Thread Oct 8 - Oct 14

Quote:
Originally Posted by Ducko View Post
I need to come back for some more motivation. We are having a hard time not spending right now. We are on Baby Step 6. Last month my dad died of a massive stroke and so our snowball went to funeral, travel, eating on the road etc. This month it's now hard to pay that extra to the house. I've got a bad case of the "I WANTS". Partly because I think I'm miserable and miss my dad. I'm tired of feeling deprived. I know I will be so much happier if I wait. It's just hard to convince myself right not that "stuff" isn't gonna solve my unhappiness and loss. So here, I said it out loud and now I gotta stick to what I know is right. It's just hard.

My youngest son has also been having some speech issues. Now our doctor feels he needs an MRI and to see a neurologist. Which I'm stressing over. Luckily, it's not a money issues that have me stressed. We have enough set aside for medical this year in our HSA.

So I'm trying to commit to: "use it up, wear it out, make do, or do without."
So sorry for your loss.
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