Reply Hey Mom! Learn more about the Gerber Life Insurance Grow-Up Plan!
 
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Old 02-04-2013, 07:34 AM   #1
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Dave Ramsey Support Thread ~ Feb 4 - Feb 10

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 02-04-2013, 10:04 AM   #2
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Re: Dave Ramsey Support Thread ~ Feb 4 - Feb 10

Overspent food budget this week! Now I have to figure out how to compensate. I'm hoping what we bought will hopefully last through most of next week except for milk/almond milk and fresh fruits and veggies. Groceries are getting so expensive!! I almost can buy organic beef for the price they are charging in store! I also will have doc bills coming in from the pregnancy and my hubbys dental appointment this month. I can NOT get ahead in my *extras* fund!
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Old 02-04-2013, 10:08 AM   #3
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My account is low right now. I put a $407 Mary Kay order through and I am waiting for payment...should make about $50 from the order...not a ton, but every little bit helps and I got 3 new customers out of it.

Unfortunately, I will not see that money for 2 weeks when the order comes in. But that is ok...

Budget for next 2 weeks is tight.....We have about $518 I am diving up right now. Nothing needed for the envelopes minus the dogs food...but I have gift cards I can use for those also. Household could use more tp if I find a good deal, otherwise I have target gift cards for that too.

So...with $518 we will....

155 - gas
210.06 - dh old debt
238 - cc (ods medical was put on cc)

That is $523....but I still have to transfer PayPal over too...so we should be ok...

Would like to sell a bit extra on eBay this week to make up for the cable and water bill...which will be $200.

How much do you all give for weddings? We have one in 2 weeks...we are already taking a weekend to go to it since it is 3 hours away.
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Old 02-04-2013, 10:13 AM   #4
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Re: Dave Ramsey Support Thread ~ Feb 4 - Feb 10

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Originally Posted by deezee02 View Post
My account is low right now. I put a $407 Mary Kay order through and I am waiting for payment...should make about $50 from the order...not a ton, but every little bit helps and I got 3 new customers out of it.

Unfortunately, I will not see that money for 2 weeks when the order comes in. But that is ok...

Budget for next 2 weeks is tight.....We have about $518 I am diving up right now. Nothing needed for the envelopes minus the dogs food...but I have gift cards I can use for those also. Household could use more tp if I find a good deal, otherwise I have target gift cards for that too.

So...with $518 we will....

155 - gas
210.06 - dh old debt
238 - cc (ods medical was put on cc)

That is $523....but I still have to transfer PayPal over too...so we should be ok...

Would like to sell a bit extra on eBay this week to make up for the cable and water bill...which will be $200.

How much do you all give for weddings? We have one in 2 weeks...we are already taking a weekend to go to it since it is 3 hours away.
I usually like to spend $50 or so on wedding gifts.
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Old 02-04-2013, 10:17 AM   #5
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I usually like to spend $50 or so on wedding gifts.
Thanks, that is what I was thinking.
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Old 02-04-2013, 10:11 AM   #6
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I feel like I am back at square one. Thankfully our taxes are filed and we're paying off CC debt and funding the BEF, as well as paying my DH's seminary bill.
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Old 02-04-2013, 10:17 AM   #7
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Originally Posted by emilyrebekah
I feel like I am back at square one. Thankfully our taxes are filed and we're paying off CC debt and funding the BEF, as well as paying my DH's seminary bill.
I have felt that way often....

I think the key is not letting it get you down. I know, easier said than done.

I am constantly chatting the serenity prayer.

For example, with our tax refund we should have been able to pay off all our cc bills, and have $5000 in an ef. BUT we just found out we have to gut our master bath (shaper is leaking somewhere, subfloor wet...ugh)


I could say forget this, we will never get ahead...b/c that is really what I want to do....but instead we are going to divide it up differently, 2k to the bathroom, 5k to bills, 3k to ourself. And that is only if we get what we did last year (which we should since income should have stayed the same)...and look at the big prize...
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Old 02-04-2013, 12:51 PM   #8
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Filed our taxes, IRS won't even accept them until march . So another month of scraping by.

I'm looking so forward to march/April. We have a lot of good things coming. We will be able to pay off 6 debts!!!!! Six! It will reduce our debt load by almost $15k.
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Old 02-04-2013, 01:02 PM   #9
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Re: Dave Ramsey Support Thread ~ Feb 4 - Feb 10

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Filed our taxes, IRS won't even accept them until march . So another month of scraping by.

I'm looking so forward to march/April. We have a lot of good things coming. We will be able to pay off 6 debts!!!!! Six! It will reduce our debt load by almost $15k.
That fantastic! Wow, $15k will be such a relief Way to go!


How come the IRS won't accept them until March?
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Old 02-04-2013, 03:36 PM   #10
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That fantastic! Wow, $15k will be such a relief Way to go!

How come the IRS won't accept them until March?
Because of the deprecation form on my business taxes. In the same delayed class I fixation as the education one.
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