Dave Ramsey Support Thread Oct 15 - Oct 21

[Marianna1988]

Originally Posted by ChelseaGirl7 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

We did this. However, my husband is in the military, so there is almost zero chance something would come up that our $500 BEF wouldn't be able to cover. We have no medical costs, we have a second vehicle if something happened to one, and in the event of a death/family emergency, only the person being affected would go. We also planned on paying off our two small debts first, then beefing the BEF to $1k-$2k, then focus on the two larger debts. I do think dr recommend only $500 BEF if your income is low or if it will take you longer than 90 days to save up your BEF.

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[bluecandi]

So Im curious what Dave would say about this.....hubby is going to deply next year and we are going to be putting the extra towards these bills:
Sl 7k....payment is 55
Truck note 9k.....215
Sl 16k.....160

The extra would likely cover the two smaller bills or the big sl. I know Dave says go from smallest to largest debts but Im looking at the 215 getting sent off for the truck every month and I really want to pay that off first, since it would free up so much more extra cash every month. Kwim?


Any compelling reason not to do it this way?

[WyattsMommy09]

I've been a lurker, but today is my first day with a SB, I guess. I just sent a payment of $1,199 to the car payment. It didn't put a HUGE dent in it, we still owe $8500, but its a start, I suppose. I *know* we'll pay it off by March, thats not a doubt. But part of me just wants to practically empty the FFEF to get it DONE.

UGH. Patience is a virtue I do not have. I *hate* paying on cars.

And now that we live in SoCal, its killing us to have a car payment, especially with gas over $4.30.

Can we just go home yet. LOL

[bluecandi]

Wow awesome on the payment!!!

[emilyrebekah]

Originally Posted by bluecandi So Im curious what Dave would say about this.....hubby is going to deply next year and we are going to be putting the extra towards these bills: Sl 7k....payment is 55 Truck note 9k.....215 Sl 16k.....160 The extra would likely cover the two smaller bills or the big sl. I know Dave says go from smallest to largest debts but Im looking at the 215 getting sent off for the truck every month and I really want to pay that off first, since it would free up so much more extra cash every month. Kwim? Any compelling reason not to do it this way?

I consider his SB mostly psychological. If you find yourself motivated to pay off your truth first, I say go for it!

[MotherMoonPads]

Originally Posted by emilyrebekah I consider his SB mostly psychological. If you find yourself motivated to pay off your truth first, I say go for it!

I totally agree. I know it is also not the DR official way, but I'd assume your truck payment has a higher interest payment too, plus once you knock off that loan you will have a lot more to throw at the other ones.

[Marianna1988]

Originally Posted by bluecandi So Im curious what Dave would say about this.....hubby is going to deply next year and we are going to be putting the extra towards these bills: Sl 7k....payment is 55 Truck note 9k.....215 Sl 16k.....160 The extra would likely cover the two smaller bills or the big sl. I know Dave says go from smallest to largest debts but Im looking at the 215 getting sent off for the truck every month and I really want to pay that off first, since it would free up so much more extra cash every month. Kwim? Any compelling reason not to do it this way?

If there was a huge difference in the loan amounts, I would say do it the DR way. But really, it's only 2k difference, plus I'm sure the truck has higher interest. I'd personally knock that one out. the $215 freed up will go farther than $55.

[sweetgrace]

I'm finding it difficult to survive on $160 (a week) for groceries/household/clothes/misc. I am barely making $160 work for groceries and houshold let alone clothes and anything misc. *sigh* I guess I'm feeling a little bummed. The road seems so long and we just started. How am I going to make $160 work for 3-4 more years? My boys are eventually going to need new clothes and I desparately need some new clothes. I don't even have a coat that fits me this year.

[mamabby]

Originally Posted by sweetgrace I'm finding it difficult to survive on $160 (a week) for groceries/household/clothes/misc. I am barely making $160 work for groceries and houshold let alone clothes and anything misc. *sigh* I guess I'm feeling a little bummed. The road seems so long and we just started. How am I going to make $160 work for 3-4 more years? My boys are eventually going to need new clothes and I desparately need some new clothes. I don't even have a coat that fits me this year.

Check out old navy around black Friday for a coat..they always have good deals. I know the ” numbers” of the budget make me feel restricted and trapped. We've only had a written budget for a few months and i'm just used to spending whatever .

AFM, had to put some dental work on a cc a few months ago (my front tooth was falling out after being preggo and I am NOT walking around without a front tooth!). It jumped in front of my cars on the snowball..so frustrating. this month we were able to pay $500 towards it and only have $500 left which I should be able to finish off next pay. I only have a temporary crown right now so I have another ~$2500 in dental work coming up

[LadybugMonkey]

FIL dropped up a check for DH and I last weekend. Our inheritance from his mom

Because we have separate accounts we are splitting the money. Its enough for me to finish paying off my debts and by the New Year should have a comfortable EF.

Dh and I started talking about finances and he has a lot more debt then he led me to believe. I'm pretty upset about that. We are talking about it so that's a start but we are a long way from working together on finances