Dave Ramsey Support Thread May 14-20

[IsaacsMom2009]

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

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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]

Didn't see one, so I made it this week

Not much going on here. Just trying to sell off as much as possible so that I can make some money and have less to deal with during the divorce.

I'm just waiting to get my registration appointment for Fall so that I can see if I can get all of the classes I need. I'll have to pay for it out off pocket since we made too much last year for me to qualify for the fee waiver

I have a couple more dentist appointments to do in the next few weeks (one of them today), but STBXH has agreed to pay for those, so it shouldn't be a problem.

With everything going on, I've been finding it hard to be motivated in regards to meal planning. I'm not hungry most of the time, and when I think about food it makes me feel sick I'm hoping I get over this soon. While it's nice to eat out and not have to cook, I feel bad because FIL is the one paying for it. He feels guilty about the divorce because he knows STBXH is a jerk. FIL even brought me a breakfast burrito yesterday morning for Mother's Day AND a box of chocolate covered strawberries from Edible Arrangements Why can't my STBXH be more like FIL? Then we wouldn't need a divorce

Of course STBXH did nothing for Mother's Day except sleep in. Well, he did get his drum set out of the guest room so that I'd have more room in there, and he did vacuum my floor and do the dishes. I guess I should try to be happy with that.

Anyway, off tangent there for a paragraph or two...

I am hoping to get DS's toys sorted this week. He has WAY too much stuff and I'm tired of picking it up. I'm going to drag it all into my room upstairs, sort it, pack it, sell what I can online, keep the rest for our garage sale in August or September, and then take what I'm keeping and figure out how to store it so that DS can't drag it all around the house.

[amzasmommy]

Hugs Isaacsmom. The divorce process is so hard. It's a fantastic diet though.

AFM: I've got a call into the realtor. We went and looked at the old house to check on the trim that had peeling paint. It's almost all the trim and since the house is white siding and brick, painting the trim could allow the buyers to virtually change the color.

Our agreement says "as is" so I really don't understand why I'm responsible for this and the pump issue. I'm going to ask the realtor what as is really means and why I'm responsible. Then if I am responsible, I'm going to ask him to talk to the buyers. The dh is a contractor, so I'm going to offer to buy the paint if he'll do the work. They can pick the color. Seems like a win win to me. Wish me luck.

On the fun thrifty front, I got all this free this week thanks to swagbucks, ebates, and selling my gymbo rewards!

[hsleonard]

Originally Posted by amzasmommy Hugs Isaacsmom. The divorce process is so hard. It's a fantastic diet though. AFM: I've got a call into the realtor. We went and looked at the old house to check on the trim that had peeling paint. It's almost all the trim and since the house is white siding and brick, painting the trim could allow the buyers to virtually change the color. Our agreement says "as is" so I really don't understand why I'm responsible for this and the pump issue. I'm going to ask the realtor what as is really means and why I'm responsible. Then if I am responsible, I'm going to ask him to talk to the buyers. The dh is a contractor, so I'm going to offer to buy the paint if he'll do the work. They can pick the color. Seems like a win win to me. Wish me luck. On the fun thrifty front, I got all this free this week thanks to swagbucks, ebates, and selling my gymbo rewards!

Awesome on the finds I am so sorry that you are going through all this with the house. I hope it is a quick fix and you can move on soon

Originally Posted by IsaacsMom2009 Didn't see one, so I made it this week Not much going on here. Just trying to sell off as much as possible so that I can make some money and have less to deal with during the divorce. I'm just waiting to get my registration appointment for Fall so that I can see if I can get all of the classes I need. I'll have to pay for it out off pocket since we made too much last year for me to qualify for the fee waiver I have a couple more dentist appointments to do in the next few weeks (one of them today), but STBXH has agreed to pay for those, so it shouldn't be a problem. With everything going on, I've been finding it hard to be motivated in regards to meal planning. I'm not hungry most of the time, and when I think about food it makes me feel sick I'm hoping I get over this soon. While it's nice to eat out and not have to cook, I feel bad because FIL is the one paying for it. He feels guilty about the divorce because he knows STBXH is a jerk. FIL even brought me a breakfast burrito yesterday morning for Mother's Day AND a box of chocolate covered strawberries from Edible Arrangements Why can't my STBXH be more like FIL? Then we wouldn't need a divorce Of course STBXH did nothing for Mother's Day except sleep in. Well, he did get his drum set out of the guest room so that I'd have more room in there, and he did vacuum my floor and do the dishes. I guess I should try to be happy with that. Anyway, off tangent there for a paragraph or two... I am hoping to get DS's toys sorted this week. He has WAY too much stuff and I'm tired of picking it up. I'm going to drag it all into my room upstairs, sort it, pack it, sell what I can online, keep the rest for our garage sale in August or September, and then take what I'm keeping and figure out how to store it so that DS can't drag it all around the house.

AFM: Nothing great going on here. We are kind of in Limbo here. Not really just playing the waiting game on a few monies coming to us. I should have a couple hundred in my next paycheck and we are waiting on our escrow check from when we refinanced our mortage. Does anyone know if I have to call our old mortgage company or do they send it automatically?

[cobbermama]

to you both, slimy and isaacsmom

AFM: I could about cry right now. Friends' house became unavailable. Current landlord offereda really yucky apt for $550/mo, which I was prepared to just deal with, then we found out it's a smoking bldg, with many smokers. No way can we live there with a little baby, not to mention both of our allergies. We need to be out in two weeks, I leave the country may 31. Sigh.

[MamanMoore]

Hugs for all the yucky divorce and real estate issues you ladies are going through! I'll be Praying for you and your families.

AFM: nothing much new on the financial front. Dh should be getting a raise next month though, and I'm applying to be the youth minister at our church. It looks like there's a pretty good chance I'll get it which woulda an about $400 to put into the house per month
I did spend two hours on the phone last night with my mom, who's dealing with a lot of mental illness right now. Which was hard but also made me really appreciate how blessed I am. I just wish I could say the magic words that would make her better. (on topic? No, but I just needed to get it off my chest)

[hsleonard]

Originally Posted by MamanMoore Hugs for all the yucky divorce and real estate issues you ladies are going through! I'll be Praying for you and your families. AFM: nothing much new on the financial front. Dh should be getting a raise next month though, and I'm applying to be the youth minister at our church. It looks like there's a pretty good chance I'll get it which woulda an about $400 to put into the house per month I did spend two hours on the phone last night with my mom, who's dealing with a lot of mental illness right now. Which was hard but also made me really appreciate how blessed I am. I just wish I could say the magic words that would make her better. (on topic? No, but I just needed to get it off my chest)

I am so sorry for you and mom I hope things work out

AFM: got my extra pay today, it was less than i thought but hey every little bit helps right

[amzasmommy]

I heard back from the realtor. Apparantely the dh hurt his back so he can't paint. The wife offered to do it if I bought all the supplies and paid her. bwahahahahahahaha! WTH would I buy the supplies and pay you to paint your own house? I'm quite capable of hiring someone. I was trying to offer a good deal to both of us. My coworker said I should hire a contractor who has extra paint and just have them use that. Nothing says the paint all has to match. Technically each window and porch could be a different color as long as it's not chipped.

We've got one guy coming to do an estimate on sat and I'm making a few other calls tommorrow. Wish me luck.

[cobbermama]

We found a foreclosure with lots of nice acreage for a great price. It's very un-DR to buy while we still have student loan debt, I know, but in total, we'd be paying less than anywhere we can rent around here. Which would also mean I could have a better snowball. Aah, conflicted.

On a related note: still don't have anywhere to live in the meantime. But, I found out why we suddenly can't rent from the friends...are you ready for this?? They "changed their minds" because they didn't want us renting to "make things weird between us," and "just didn't think it would work."

Um, no, renting wouldn't make things weird between us. You know what does make things weird? You up and changing your minds 11 days before we have to be out.

I'm so mad/irritated/disappointed in them.

[BattleBuddies]

Hi again. Ive been out since the move in March, but Ive been lurking. Just to catch up, hugs to the ladies dealing with real estate and relationship troubles.
AFM: I dont even know where to begin. I am an idiot with money. Sort of. Here's what I mean- since the move, I have paid off two credit cards (yay!). Heres the idiot part- I am 2 months behind on the truck payment, and today I called the insurance company to update our address because our cards expired last month, and guess what?!?! Theyve been auto drafting our old bank acct instead of our current one, so it was behind too! They were about to cancel it, so I had to pay $240 over the phone to get it back current. There went some money I had NOT budgeted for. 8( To top it off, our renters were going to move out because the husband lost his job, but now theyve decided to stay, but only if we lowered the rent by $150/month. So, lots of ups and downs here. I dont even know what to do at this point.

ETA: I also had to catch up our phone bill this pay period to the tune of $274. I just totally suck this month. We've got $100 to live on from now until the rent check gets here.