Dave Ramsey Support Thread Oct 8 - Oct 14

[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]

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?

[MotherMoonPads]

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

[IsaacsMom2009]

Originally Posted by MotherMoonPads 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.

[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."

[redsonja]

new week, thank goodness! New resolve. I got my paycheck from my parttime gig and used the money to buy Christmas for our kids. So, that's done other than the "something to read" portion, we're waiting on a book to be released for that. One of the other employees is quitting so my hours should go up, and while I'm not looking forward to that, I am looking forward to the money.

I also have a huge case of the wants. I want to just spend freely, and that's super bad! There are so many things I want it's crazy. I need to learn more about satisfaction with what I have. It's just such a hard lesson to learn.

[Bumstoppers]

I'm overwhelmed over here. Trying to finish up the cooking for all month over here, and cleaning and laundry. Then I have to pay catch up for when ds2 was sick Thursday Friday of last week.

So not complaining thou, business is doing WELL hence the reason for being so busy.

How do you eat an elephant?

Ps if my week turns out like its starting out, then I will be back for advice on where to apply that income.

[MamaJules]

Originally Posted by IsaacsMom2009 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.

My BIL had a big old Land Rover that got like 10mpg. They traded it in for a Prius and are saving enough in gas money to cover the whole car payment. If you can convince your FIL to trade vehicles for a while, that would be a huge plus for you. Gas prices haven't jumped here yet, but I'm sure they will soon.

[Heather1583]

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."

So sorry about your father passing away. I can't imagine caring too much about my budget in that event! Hugs

AFM, There has been so much emotional turmoil for me this past summer, and I was spending freely.. but finding this thread definitely has helped me get back into it. I am so motivated, thank God and you ladies. I just hope I don't lose steam like next month lol.

I am excited, we sold a dresser on craigslist for $100 last night. So that almost recoups the cost of redecorating the boys bedroom last month. I have a ton of baby girls clothes and baby stuff I am hoping will sell also. I wish I had thought of having a garage sale a few weeks ago but now the weather is so unpredictable...
I've been making my boys pjs and lounging clothes this year, and plan to make some peoples Xmas gifts as well. Pinterest has so many pins with very creative DIY ideas and gifts, I am loving that site lately. I am working on restocking my cloth diapers so I can repost my Craigslist ad.

[joeslittlewoman]

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.