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Old 01-07-2013, 07:46 AM   #1
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Dave Ramsey Support Thread ~ Jan 7 - Jan 13

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 01-07-2013, 07:47 AM   #2
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Payday is this week. I'm having to rearrange some things. Hopefully it works out.
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Old 01-07-2013, 08:21 AM   #3
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Re: Dave Ramsey Support Thread ~ Jan 7 - Jan 13

Having to budget the crap out of things because of our over indulgence this weekend while family was here and the fact that I forgot about a co-op I had to pay. I had planned on using spending money, but then I used all I had saved up to have my ipad replaced after nearly a year of living with a cracked screen... woops! So borrowing from the budget and rearranging certain things so I can pay that and buy some fiber from another co-op for longies (which is kind of in the budget--baby envelope).

Going to (finally!) list our Goodmamas on spots and going through yarn/fiber to try and destash what I've got.
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Old 01-07-2013, 08:30 AM   #4
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Looks like household expenses and fun money will be higher than I thought. Dh needed shirts and socks for work, and we got him a new tie also...but he is set until tax time (we always get him 2 suits, 2 shirts and 2 ties with tax money since he has to wear them for work and kohls has a great sale around that time where we can get them the cheapest). And i am organizing my closet (yes, i asked for slim hangers for christmas) and i need 2 more sets (bbb with a coupon should set me at $18) and will need a drawer organizer for my craft paper (i should only need 1 more) and no more than $20 for hardware for the shelving for my craft area. But that alone will really make the space in the house open up and make it usable, no more shopping for paper b/c I have to much in a tub and don't have time to sort through it. AND we still need tp (soon...not out yet). I am guessing I will need about $100more...and we are over by $50 already. BUT my mom owes me around $200, so that will be covered and we will end up under.

Everything else should be ok and should roll through on track. Bills are almost paid (need to look up 2)...food and toiletries paid for this week already.
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Old 01-07-2013, 08:33 AM   #5
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Just got back into more cash verses debit. We will see how it works.
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Old 01-07-2013, 08:49 AM   #6
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Re: Dave Ramsey Support Thread ~ Jan 7 - Jan 13

Oh, another new week. DH spent a bunch of money yesterday on things he needed for work (Tool bags wear out WAY too fast!). I have to wait for it to show up on our CC statement and figure out how much he spent (He gives me his receipts about once/month, and by then I already know how much he spent!). I guess I ought to start an envelope for work-related supplies. He usually doesn't need much.

We're still plugging away. I've been selling some stuff to try to get our BEF built back up before I start throwing everything I can find at our mortgage (we own a house that's 2 hours away from where we're living. It's in a very depressed area, and we couldn't make any money down there, we will owe 4-6 thousand dollars on it after we get our taxes back, so we want to get it paid off soon then we'll start saving all our money to get it fixed up then either sell it or move back). The insurance company is sending DH to a doctor to get an impairment rating from his injury last year, his surgeon said there is no impairment, but the insurance lady said that with his type of injury, she's never seen anyone recover completely. So we may get something from that, but not much.
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Old 01-07-2013, 09:09 AM   #7
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Re: Dave Ramsey Support Thread ~ Jan 7 - Jan 13

Gosh I am tired this morning. 7 hours of sleep and I feel like I didn't get any sleep at all! Trying to go to 2 week meal planning and only having to go to one of the stores once every 2 weeks and the other one once a week (for fresh produce and what not). Makes the food budget a little funky for the moment (we get paid weekly) but it should even out.
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Old 01-07-2013, 09:12 AM   #8
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Quote:
Originally Posted by Reuben Christopher View Post
Gosh I am tired this morning. 7 hours of sleep and I feel like I didn't get any sleep at all! Trying to go to 2 week meal planning and only having to go to one of the stores once every 2 weeks and the other one once a week (for fresh produce and what not). Makes the food budget a little funky for the moment (we get paid weekly) but it should even out.
Love two week meal planning. I do freezer meals so I just pull one out.to either stick in the crockpot or thaw for the oven. Today is crockpot beef stew.
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Old 01-07-2013, 09:18 AM   #9
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Re: Dave Ramsey Support Thread ~ Jan 7 - Jan 13

Meal planning... I need to do that too. My plan is a litttle more complicated because I eat different stuff than everyone else now. I'm trying to work my way through all of the stuff in the house that I can't eat as meals for everyone else, and then I'll only be stocking things I can eat since everyone else should be eating better too, but I can't stand wasting food
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Old 01-07-2013, 09:40 AM   #10
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Re: Dave Ramsey Support Thread ~ Jan 7 - Jan 13

Quote:
Originally Posted by deezee02 View Post
Looks like household expenses and fun money will be higher than I thought. Dh needed shirts and socks for work, and we got him a new tie also...but he is set until tax time (we always get him 2 suits, 2 shirts and 2 ties with tax money since he has to wear them for work and kohls has a great sale around that time where we can get them the cheapest).
Do you use kohls online? I have found when buying items from them that their online site is cheaper than in-store and their are usually 20% off codes for online. Just a thought since you already know which suit you want to get and the size you need it in.
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