Diaper Swappers

IsaacsMom2009 · 12-10-2012, 08:08 AM

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

slimy72 · 12-10-2012, 09:09 AM

Good Morning everyone! So last week I had a goal of getting the budget written, the cash withdrawn, and Christmas shopping done. I got two of the three finished. I have not gotten the cash withdrawn though. Luckily the only thing I've spent was $50 to fill my gas tank so I'll pull that much less out, and I have to deposite the money I used online for Shopping as it was in an envie at home, so it does kind of even out. So goal today, figure out and pull out cash and divide into envies, and then go grocery shopping for the week.

IsaacsMom2009 · 12-10-2012, 09:16 AM

My sister just called to tell me that my mom had a heart attack last night and is in the hospital.

Looks like I won't be paying bills today as I have to drive 90 miles to go see her and I can't go pick up my paycheck.

My sister says that mom is doing okay now, but I feel like I should go see her. But first I have to stop crying.

schmerna · 12-10-2012, 09:34 AM

Quote:

Originally Posted by IsaacsMom2009

My sister just called to tell me that my mom had a heart attack last night and is in the hospital.

Looks like I won't be paying bills today as I have to drive 90 miles to go see her and I can't go pick up my paycheck.

My sister says that mom is doing okay now, but I feel like I should go see her. But first I have to stop crying.

I'm so sorry about your mom. Take your time and figure out what you need to do.

mamabby · 12-10-2012, 10:09 AM

Quote:

Originally Posted by IsaacsMom2009

My sister just called to tell me that my mom had a heart attack last night and is in the hospital.

Looks like I won't be paying bills today as I have to drive 90 miles to go see her and I can't go pick up my paycheck.

My sister says that mom is doing okay now, but I feel like I should go see her. But first I have to stop crying.

sorry about your mom

glad she is ok. This weekend our fridge/freezer broke so I have to pay someone to come service it (if they can) and lost a lot of food

frugalmomof2 · 12-10-2012, 10:30 AM

Hello again everyone! I'm Ashley. As I said last night, my DH and I have decided to follow Dave Ramsey's makeover plan. The next year will be a slow process for us as I am a full time student and we don't have much leftover each month. We have DS (5) and DD (2). DH provides the sole income. We both made many mistakes early on and have very poor credit and it is reflected in our auto interest rate. We are paying down the last small debts in January and by March will be left with only a Student Loan and the Car Loan. Our credit should go up enough by March, and working with our credit union we should be able to refinance our car's interest rate at that time. When we do, we will make that our priority debt to snowball. We have considered selling our vehicle, but we would come out at a loss with our current interest rate. If we can get it lowered and get ahead with a bigger snowball, then it is a possibility to sell it and buy a cheaper car. This is our big toughie but I think we are in a good place in terms of our outlook. So, help me out but go easy on the car situation as it's not going to change in the next few months at least.

Last night we went through our budget, worked through a couple months, and I wanted to discuss with you what we ended with and see what input y'all have for us. I know after reading through last week's thread all of you will be such an asset to us in our journey – and I hope to eventually be to you as well

I think the next few months will be a journey for us into a new lifestyle.

Current Debts (we are current on all payments):
Medical/Dental: $52.70 (final payment in Jan 2013!)
Auto Loan @ 18% APR: $13,813
Student Loan (deferred currently while I am in school) $8,439
Credit Card; $0 balance after Jan 2013 payment!
Small Personal Loan $320 (through our credit union, good interest rate, we reviewed our finances with a loan officer to discuss refinancing the car loan and she said they would be willing to if we could show a good in house credit history with a small personal loan since we were still new members. Last payment is in March – then we will apply for refi on the car).
---So our debt is basically the student loan and the car.

Income: $610 net weekly, DH usually has a good chunk of overtime each month but it is not guaranteed income

Weekly Expenses:
Grocery (includes toiletries, DH lunches, 3 meals a day for me & 2 kids – No WIC or other assistance): $105
DH's gas (work commute): $60
My gas (kids to school, grocery store): $10
Auto Payment: $416.30 (read my first paragraph above, we will be working on refi so we can get rid of this debt)
Auto Insurance (2 vehicles, one full coverage, 1 liability) & Renter's Insurance: $115 (I have shopped extensively, this is the best deal I can find!)
Cellular Phones: $110 (our only phones. Verizon. Prepaid is cheaper but termination is $270 for both of our lines)... don't like this bill this high (I think it should be $75-90 with prepaid but not sure we can change it right now).
Internet: $31.36 (basic internet, no contract, necessary for my college classes)
Water/Sewer/Trash: $115 (our town is high. My sister/fiance is close to this and its just the two of them).
Gas: $30 (average – just our furnace and dryer.)
Electric: $85 (budget billing)
Netflix: $8 (on our roku, we have no cable or anything)
Personal Loan Payment: $50 (we are paying $100 a month so we can get it done by March and try to refi the car.. If DH gets overtime to add to the snowball we will have it done in Feb).
Rent: $575

We are left with AT LEAST (depending on DH's overtime) $25 a month to snowball our debt. DH usually (90% of the time) gets enough overtime that we have $300 or so a month to snowball.

We have calculated a tax refund that is upwards of $1,500 and will be using $1,000 to establish our emergency fund, as well as getting life insurance for both of us.

So, in the end to summarize... we have a tight cash flow but we are in the green. We have a small snowball for the next few months. As of March we will have $100 extra month to snowball to the car payment (from our loan payment) and will hopefully be able to refinance the car to a lower interest rate – which will mean more money to snowball the car with.

Sorry this was so long!! I'd love any thoughts, criticisms, suggestions or reassurances :S I'm here for the long haul

frugalmomof2 · 12-10-2012, 10:37 AM

Quote:

Originally Posted by IsaacsMom2009

My sister just called to tell me that my mom had a heart attack last night and is in the hospital.

Looks like I won't be paying bills today as I have to drive 90 miles to go see her and I can't go pick up my paycheck.

My sister says that mom is doing okay now, but I feel like I should go see her. But first I have to stop crying.

Oh my goodness! Hugs! I can't imagine what you are feeling right now!

MotherMoonPads · 12-10-2012, 10:50 AM

Quote:

Originally Posted by IsaacsMom2009

My sister just called to tell me that my mom had a heart attack last night and is in the hospital.

Looks like I won't be paying bills today as I have to drive 90 miles to go see her and I can't go pick up my paycheck.

My sister says that mom is doing okay now, but I feel like I should go see her. But first I have to stop crying.

Oh Kearson

I did our weekly budget checkup last night, and I'm very far off track again. Started a sale in my store hoping to bring in the rest of the roof money since it is supposed to be repaired at the end of this month. Fingers crossed!

2queens&1princenmyhouse · 12-10-2012, 01:38 PM

Quote:

Originally Posted by IsaacsMom2009

My sister just called to tell me that my mom had a heart attack last night and is in the hospital.

Looks like I won't be paying bills today as I have to drive 90 miles to go see her and I can't go pick up my paycheck.

My sister says that mom is doing okay now, but I feel like I should go see her. But first I have to stop crying.

Hope you are able to get to the hospital today to visit. So scary.

IsaacsMom2009 · 12-10-2012, 01:46 PM

I've been able to see my mom. She's doing well. Thank goodness she's so stubborn.

12-10-2012, 08:08 AM	#1
IsaacsMom2009 Registered Users Join Date: Jun 2010 Location: Orange, CA Posts: 4,416 Ratings: 407 Feedback: 100% My Mood:	Dave Ramsey Support Thread ~ Dec 10 - Dec 16 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 __________________ Kearson: Mama to DS (03/09). I am a 31 Gifts Consultant! Ask me about this month's specials Please check out my ISO/IHA. I leave feedback if it is left for me first, due to my issues with people doing it incorrectly. Can't stand those yellow notepad icons .

12-10-2012, 09:09 AM	#2
slimy72 Registered Users Join Date: Dec 2008 Location: Western US Posts: 8,103 Ratings: 30 Feedback: 100% My Mood:	Re: Dave Ramsey Support Thread ~ Dec 10 - Dec 16 Good Morning everyone! So last week I had a goal of getting the budget written, the cash withdrawn, and Christmas shopping done. I got two of the three finished. I have not gotten the cash withdrawn though. Luckily the only thing I've spent was $50 to fill my gas tank so I'll pull that much less out, and I have to deposite the money I used online for Shopping as it was in an envie at home, so it does kind of even out. So goal today, figure out and pull out cash and divide into envies, and then go grocery shopping for the week. __________________ hand spinning, soap making, sheep raising wife to my hardworking and FT WOHM to my 'lil & 6 angels in heaven. Hoping for a RAINBOW baby soon. On the road to a healthier me- 30lbs down, 20 lbs to go!

12-10-2012, 09:16 AM	#3
IsaacsMom2009 Registered Users Join Date: Jun 2010 Location: Orange, CA Posts: 4,416 Ratings: 407 Feedback: 100% My Mood:	My sister just called to tell me that my mom had a heart attack last night and is in the hospital. Looks like I won't be paying bills today as I have to drive 90 miles to go see her and I can't go pick up my paycheck. My sister says that mom is doing okay now, but I feel like I should go see her. But first I have to stop crying. __________________ Kearson: Mama to DS (03/09). I am a 31 Gifts Consultant! Ask me about this month's specials Please check out my ISO/IHA. I leave feedback if it is left for me first, due to my issues with people doing it incorrectly. Can't stand those yellow notepad icons .

12-10-2012, 10:30 AM	#6
frugalmomof2 Registered Users Join Date: Dec 2012 Posts: 381	Re: Dave Ramsey Support Thread ~ Dec 10 - Dec 16 Hello again everyone! I'm Ashley. As I said last night, my DH and I have decided to follow Dave Ramsey's makeover plan. The next year will be a slow process for us as I am a full time student and we don't have much leftover each month. We have DS (5) and DD (2). DH provides the sole income. We both made many mistakes early on and have very poor credit and it is reflected in our auto interest rate. We are paying down the last small debts in January and by March will be left with only a Student Loan and the Car Loan. Our credit should go up enough by March, and working with our credit union we should be able to refinance our car's interest rate at that time. When we do, we will make that our priority debt to snowball. We have considered selling our vehicle, but we would come out at a loss with our current interest rate. If we can get it lowered and get ahead with a bigger snowball, then it is a possibility to sell it and buy a cheaper car. This is our big toughie but I think we are in a good place in terms of our outlook. So, help me out but go easy on the car situation as it's not going to change in the next few months at least. Last night we went through our budget, worked through a couple months, and I wanted to discuss with you what we ended with and see what input y'all have for us. I know after reading through last week's thread all of you will be such an asset to us in our journey – and I hope to eventually be to you as well I think the next few months will be a journey for us into a new lifestyle. Current Debts (we are current on all payments): Medical/Dental: $52.70 (final payment in Jan 2013!) Auto Loan @ 18% APR: $13,813 Student Loan (deferred currently while I am in school) $8,439 Credit Card; $0 balance after Jan 2013 payment! Small Personal Loan $320 (through our credit union, good interest rate, we reviewed our finances with a loan officer to discuss refinancing the car loan and she said they would be willing to if we could show a good in house credit history with a small personal loan since we were still new members. Last payment is in March – then we will apply for refi on the car). ---So our debt is basically the student loan and the car. Income: $610 net weekly, DH usually has a good chunk of overtime each month but it is not guaranteed income Weekly Expenses: Grocery (includes toiletries, DH lunches, 3 meals a day for me & 2 kids – No WIC or other assistance): $105 DH's gas (work commute): $60 My gas (kids to school, grocery store): $10 Auto Payment: $416.30 (read my first paragraph above, we will be working on refi so we can get rid of this debt) Auto Insurance (2 vehicles, one full coverage, 1 liability) & Renter's Insurance: $115 (I have shopped extensively, this is the best deal I can find!) Cellular Phones: $110 (our only phones. Verizon. Prepaid is cheaper but termination is $270 for both of our lines)... don't like this bill this high (I think it should be $75-90 with prepaid but not sure we can change it right now). Internet: $31.36 (basic internet, no contract, necessary for my college classes) Water/Sewer/Trash: $115 (our town is high. My sister/fiance is close to this and its just the two of them). Gas: $30 (average – just our furnace and dryer.) Electric: $85 (budget billing) Netflix: $8 (on our roku, we have no cable or anything) Personal Loan Payment: $50 (we are paying $100 a month so we can get it done by March and try to refi the car.. If DH gets overtime to add to the snowball we will have it done in Feb). Rent: $575 We are left with AT LEAST (depending on DH's overtime) $25 a month to snowball our debt. DH usually (90% of the time) gets enough overtime that we have $300 or so a month to snowball. We have calculated a tax refund that is upwards of $1,500 and will be using $1,000 to establish our emergency fund, as well as getting life insurance for both of us. So, in the end to summarize... we have a tight cash flow but we are in the green. We have a small snowball for the next few months. As of March we will have $100 extra month to snowball to the car payment (from our loan payment) and will hopefully be able to refinance the car to a lower interest rate – which will mean more money to snowball the car with. Sorry this was so long!! I'd love any thoughts, criticisms, suggestions or reassurances :S I'm here for the long haul

12-10-2012, 01:46 PM	#10
IsaacsMom2009 Registered Users Join Date: Jun 2010 Location: Orange, CA Posts: 4,416 Ratings: 407 Feedback: 100% My Mood:	I've been able to see my mom. She's doing well. Thank goodness she's so stubborn. __________________ Kearson: Mama to DS (03/09). I am a 31 Gifts Consultant! Ask me about this month's specials Please check out my ISO/IHA. I leave feedback if it is left for me first, due to my issues with people doing it incorrectly. Can't stand those yellow notepad icons .