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Old 03-18-2013, 09:18 AM   #1
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Dave Ramsey Support Thread ~ March 18-24

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 03-18-2013, 09:27 AM   #2
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Re: Dave Ramsey Support Thread ~ March 18-24

Started a new thread since members were posting on last week"s still - hope no one minds!

This week:
-DH is trying to get his manager to stand up for him so he can get paid for travel time this past week (big political office drama between departments I guess). If he does, it will be $180 extra to snowball.
-Still on the fence about saving up a FFEF and putting the snowball on hold. We might do 50% of snowball to FFEF and 50% to the car loan (our lone debt now!). It would still mean paying the car off super early while adding a lot of security (e.g. job loss) for us.

This is my spring break. I'm purging galore so I can refind my office room. There is talk of homeschooling DS and DD in the fall instead of paying private school tuition or doing public+tons of supplementing. If that's the case, the office will be turned into a classroom and I need to PURGE.
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Old 03-18-2013, 11:25 AM   #3
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Re: Dave Ramsey Support Thread ~ March 18-24

Were doing OK here on everything but medical. We were just all feeling better and now me and ODD are getting sick again. We both have sore throats. Hopefully its just a virus and not strep (that way we can avoid the script costs, lol!). Also, I was actually able to get in to see my PCP tomorrow morning so I dont have to go to the care center. Usually the wait for my PCP is 2 weeks (for a sick visit and over 6 for a regular visit) so I usually just go to the care center when I get ill. I know I need to change pcp's with my insurance, but they are the dr's that oversee the midwives I use and we are trying for another baby. I dont want to have to switch away, then find out im PG and have to switch back, KWIM. SO at least I will save $120 since i dont have to go tot he care center.

We have to write a check to the girls school for $60 for a fundraiser. Each child had to sell a box of candy (60 bars for $1 each) and we were only able to sell one box, so we have to pay for the other. Sucks on two levels....i have lots of candy in the house, and we are out $60!

DH finally finished with our tax prep, so we are submitting them tot he tax guy this week and should hopefully have a refund in a few weeks. I'm hoping its enough tot cover tuition next year for the girls (our in-laws cover 50% of their tuition at a private school).

We received our annual manna credit report, from the school and we have earned over $400 towards their tuition next year just by using the manna program! If you not familiar with that (most catholic schools offer this) - You buy gift cards to stores (all sorts of stores for gas, groceries, clothes, etc..) from the school. The school buys them at a discount from the stores, and then splits the discount with you. So for example, I buy my grocery gift certificates from the school. The school gets a 4% discount on them from the company, and then they split the discount with us 50/50. SO the school gets to keep 2% of the value and we get 2% of the value towards out tuition (we buy the gift cards at face value, so I buy $200 worth or whatever and get $200 in gift cards). I have been buying all my gas, groceries, and other expenses I can plan (walgreens gift cards for prescriptions, etc...), along with my inlaws grocery money all year. I also work and earn $3 an hour by selling manna at the school on Friday mornings (I can bring my younger kids too). Thats a good chunk of money off their tuition! I will probably be able to get to around $700 for the year by the time the next school year starts! I know alot of schools (ours included) will allow you to purchase the gift cards even if you dont have a student there and then will write you a check monthly or bimonthly for the amount you saved. It might be worth looking into if you have a church /school nearby that offers it.

Thats it for me!
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Old 03-18-2013, 12:10 PM   #4
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Re: Dave Ramsey Support Thread ~ March 18-24

Quote:
Originally Posted by frugalmomof2 View Post
Started a new thread since members were posting on last week"s still - hope no one minds!

This week:
-DH is trying to get his manager to stand up for him so he can get paid for travel time this past week (big political office drama between departments I guess). If he does, it will be $180 extra to snowball.
-Still on the fence about saving up a FFEF and putting the snowball on hold. We might do 50% of snowball to FFEF and 50% to the car loan (our lone debt now!). It would still mean paying the car off super early while adding a lot of security (e.g. job loss) for us.

This is my spring break. I'm purging galore so I can refind my office room. There is talk of homeschooling DS and DD in the fall instead of paying private school tuition or doing public+tons of supplementing. If that's the case, the office will be turned into a classroom and I need to PURGE.
'
'
GL on everything! esp the purge. my HS room is in a constant state of chaos, even after I've decluttered it. seems that 3 short people can do tons of damage to organization in a very short amt of time

Quote:
Originally Posted by BNC View Post
Were doing OK here on everything but medical. We were just all feeling better and now me and ODD are getting sick again. We both have sore throats. Hopefully its just a virus and not strep (that way we can avoid the script costs, lol!). Also, I was actually able to get in to see my PCP tomorrow morning so I dont have to go to the care center. Usually the wait for my PCP is 2 weeks (for a sick visit and over 6 for a regular visit) so I usually just go to the care center when I get ill. I know I need to change pcp's with my insurance, but they are the dr's that oversee the midwives I use and we are trying for another baby. I dont want to have to switch away, then find out im PG and have to switch back, KWIM. SO at least I will save $120 since i dont have to go tot he care center.

We have to write a check to the girls school for $60 for a fundraiser. Each child had to sell a box of candy (60 bars for $1 each) and we were only able to sell one box, so we have to pay for the other. Sucks on two levels....i have lots of candy in the house, and we are out $60!

DH finally finished with our tax prep, so we are submitting them tot he tax guy this week and should hopefully have a refund in a few weeks. I'm hoping its enough tot cover tuition next year for the girls (our in-laws cover 50% of their tuition at a private school).

We received our annual manna credit report, from the school and we have earned over $400 towards their tuition next year just by using the manna program! If you not familiar with that (most catholic schools offer this) - You buy gift cards to stores (all sorts of stores for gas, groceries, clothes, etc..) from the school. The school buys them at a discount from the stores, and then splits the discount with you. So for example, I buy my grocery gift certificates from the school. The school gets a 4% discount on them from the company, and then they split the discount with us 50/50. SO the school gets to keep 2% of the value and we get 2% of the value towards out tuition (we buy the gift cards at face value, so I buy $200 worth or whatever and get $200 in gift cards). I have been buying all my gas, groceries, and other expenses I can plan (walgreens gift cards for prescriptions, etc...), along with my inlaws grocery money all year. I also work and earn $3 an hour by selling manna at the school on Friday mornings (I can bring my younger kids too). Thats a good chunk of money off their tuition! I will probably be able to get to around $700 for the year by the time the next school year starts! I know alot of schools (ours included) will allow you to purchase the gift cards even if you dont have a student there and then will write you a check monthly or bimonthly for the amount you saved. It might be worth looking into if you have a church /school nearby that offers it.

Thats it for me!
praying you all get well soon! and woot on a tax refund. the manna sounds like a beautiful thing! i know i would totally participate if we had that around here.
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Old 03-18-2013, 12:16 PM   #5
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Re: Dave Ramsey Support Thread ~ March 18-24

we are just pluggin' along. DH is hiding a bill from me. He thinks I don't know.....smh. It's a probation/court fee bill. Plus, he had a court ordered A&D evaluation today. Again, he thinks I don't know. He really is clueless sometimes...sigh. Anyway, I think the fee for that is about $100. He hasn't asked me for the $$, as I guess he's trying to keep it a "secret." I guess he's been paying it w/his ebay $$ and his gig $$. It's not that I would deny him the $$. It's a necessary evil due to a VERY stupid choice he made. I wouldn't be happy about paying it, but I would. Oh, well. I guess I let him "hide" his bill until such time as he decides to come clean with it. In a way, I think it's good for him to have to pay for it out of his extra $$. Maybe it will teach him some responsibility (ha!). Anyway, as for now it's getting paid. It's just not coming out of our monthly budget. I do have a place for it in the event he needs me to cover it.

Still haven't gotten out taxes done. I always wait til the last minute. Since we have to pay in, there's no sense in doing them to far in advance. I'd rather the $$ sit in my interest bearing checking acct for a few weeks as opposed to paying the IRS.
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Old 03-18-2013, 12:25 PM   #6
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Re: Dave Ramsey Support Thread ~ March 18-24

We call it SCRIP but have the same plan. We put our funds towards either hot lunch account or SCRIP gift card (to buy more scrip cards). We too buy cards to fund as much of or monthly spending as we can. Our school splits the "rebate" by 75/25 with the school getting the larger amount.
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Old 03-18-2013, 01:50 PM   #7
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Re: Dave Ramsey Support Thread ~ March 18-24

we forgot to cash our per diem checks this weekend and ended up having to put it on the debit card. Plus a bunch of other stuff purchased for work that I didn't get the reimbursment checks put in. So my checking has now pulled $500 out of my savings which we use as overdraft. I need to get it all sorted out and money put where it belongs.
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Old 03-18-2013, 01:51 PM   #8
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Re: Dave Ramsey Support Thread ~ March 18-24

Good morning!

We aren't going to talk about this last week financially. I travelled cross country for a funeral, while I was gone my husband became very sick and we now have hospital bills.

I'm just going to start this week fresh and new and deal with things as they come. I've adjusted our budget for the month, and it will be okay.
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Old 03-18-2013, 02:12 PM   #9
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Re: Dave Ramsey Support Thread ~ March 18-24

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Originally Posted by MotherMoonPads View Post
Good morning!

We aren't going to talk about this last week financially. I travelled cross country for a funeral, while I was gone my husband became very sick and we now have hospital bills.

I'm just going to start this week fresh and new and deal with things as they come. I've adjusted our budget for the month, and it will be okay.
((hugs)) today is a new day! hope your DH is better and that you have rested from your trip.
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Old 03-18-2013, 02:41 PM   #10
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Hi Ladies,

This is what I posted on the last page.

Okay so here is my dilemma... I owe $80,000 to student loans. I owe $20,000 at 9.5% interest (paying $200/month), $10,000 at 3.25% (paying $40/month), and $10,000 at 4% (paying $35/month). I know DM says to pay off the smallest amount first, but if I paid the other 2 off first, it wouldn't leave me with much of a sb. What should I do? Thanks ladies
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