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Old 09-23-2013, 08:18 AM   #1
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Dave Ramsey Support Thread ~ Sep 23 - Sep 29

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 09-23-2013, 08:55 AM   #2
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Every week I post the post that starts the new thread for the week. I have to admit, I've been doing this so long (doing the post and 'following' Dave Ramsey) that I never read it. I just copy and paste it.

Well, this morning I read it and realized that after all of my years of hard work, life has thrown me back into Pre-step 1. And what's even more sad is that I've been at this step for a while and didn't even realize it.

I'm still waiting to pay DS's September tuition (need funds to clear my bank before I write the check) and October is coming due soon. I finally managed to pay all the minimums on my bills, but it took so long to do it that those are now coming due again as well.

I've been so sick with this kidney stone that I've missed several days of work, and I don't make that much to begin with. XH is still unemployed with no job prospects, food stamps is fighting me on providing benefits because XH and I still live together, and Medi-Cal is taking their sweet time approving me and the hospital is breathing down my neck for payment for my ER visit which is now over 9K for everyone involved (hospital, Dr, CAT scan). My headlight in my car is still on the fritz ($125 repair if I do it myself), my dog needs to be groomed, DS is running out of stuff for his lunches....

I feel like I'm drowning... I AM drowning.

I'm looking at the BEF step and thinking "Even $500 seems impossible right now" :-(

I know things will get better, but I just feel so helpless and I hate that.
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Old 09-23-2013, 09:06 AM   #3
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Re: Dave Ramsey Support Thread ~ Sep 23 - Sep 29

Kearson, I'm so sorry sweetie! It's a tough spot for sure, can you donate plasma or have any gold jewelry to sell? anything of value to sell at the moment?

Did you talk to your FIL is he going to help at all with your sons expenses?

Why in the world does it matter if you still live with your XH if he is unemployed.
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Old 09-23-2013, 09:45 AM   #4
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Kearson, I'm so sorry sweetie! It's a tough spot for sure, can you donate plasma or have any gold jewelry to sell? anything of value to sell at the moment?

Did you talk to your FIL is he going to help at all with your sons expenses?

Why in the world does it matter if you still live with your XH if he is unemployed.
I don't know if I'd be allowed to donate plasma with my health issues but I'll look into it. I sold all of my gold jewelry years ago :-(

I haven't talked to XFIL about expenses yet because I haven't done the reports, but I need to do it soon because I can't cover DS's October tuition on my own.

I'm not sure why it matters that XH and I live together, but the rep at the food stamp office was asking all sorts of questions about whether we sleep in the same room and if we share food. I guess it's to prevent fraud or something.
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Old 09-23-2013, 10:05 AM   #5
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Re: Dave Ramsey Support Thread ~ Sep 23 - Sep 29

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I don't know if I'd be allowed to donate plasma with my health issues but I'll look into it. I sold all of my gold jewelry years ago :-(

I haven't talked to XFIL about expenses yet because I haven't done the reports, but I need to do it soon because I can't cover DS's October tuition on my own.

I'm not sure why it matters that XH and I live together, but the rep at the food stamp office was asking all sorts of questions about whether we sleep in the same room and if we share food. I guess it's to prevent fraud or something.


I'm sure, but aren't you legally divorced? I am glad they try to prevent fraud, but it seems like they only go after the people who are being honest.
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Old 09-23-2013, 10:14 AM   #6
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Re: Dave Ramsey Support Thread ~ Sep 23 - Sep 29

Big hugs Kearson! I hate that drowning feeling.

As for me, nothing new. I need to rope in grocery spending. I'm going to start with a plan of attack. That always helps, but I've been lazy and going without a plan. Not good. It's a perfect time for it too since dh heads out on a business trip tomorrow and I typically stay home when he's gone so I don't have to drag a 1 and 2 year old to the store with me unless I have to.
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Old 09-23-2013, 10:24 AM   #7
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Re: Dave Ramsey Support Thread ~ Sep 23 - Sep 29

HUGS Kearson! Yes, they are trying to figure out if you are trying to defraud them by not counting your "husband" and his income. Even if you are divorced, they will give you a rash of crap.

I was briefly separated after my DH left me, and I had JUST had a baby and had no income so I went and applied for FS. They gave me a heck of a time because DH was on the lease and we weren't officially separated (I went in like the day after he left, we hadn't even been to court yet). It takes time but once their cover all their bases you will be approved. Hang in there!

As for me... I'm just blah. We've had so much crap crop up, that I'm glad I'm working these extra jobs, but the money has been going to all our issues instead of savings I don't have a dime for savings this week! But at least we were able to take care of all the crap that happened. I'm trying to stay positive but also feel like I am drowning. I have to cut down 2 days of daycare because between my 2 families, I am working for 12 days straight and then have 2 days off. I already have 3 of my own kids and a DH that works a lot so I'm super burnt out. SO I'm going to have to tell one of the parents that I can't watch her kids every other weekend anymore. It's worth the loss of money to save my sanity, though!!!

My DH got called back for a 3rd and final interview! It's on Friday. If they give him the money he asked for, it's a $8k a year raise! That works out to like an extra $500 a month (after taxes)... yeah, we'll take that! Fingers and toes and eyes and everything else crossed that he gets this job!!
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Old 09-23-2013, 02:19 PM   #8
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HUGS Kearson! Yes, they are trying to figure out if you are trying to defraud them by not counting your "husband" and his income. Even if you are divorced, they will give you a rash of crap.

I was briefly separated after my DH left me, and I had JUST had a baby and had no income so I went and applied for FS. They gave me a heck of a time because DH was on the lease and we weren't officially separated (I went in like the day after he left, we hadn't even been to court yet). It takes time but once their cover all their bases you will be approved. Hang in there!

As for me... I'm just blah. We've had so much crap crop up, that I'm glad I'm working these extra jobs, but the money has been going to all our issues instead of savings I don't have a dime for savings this week! But at least we were able to take care of all the crap that happened. I'm trying to stay positive but also feel like I am drowning. I have to cut down 2 days of daycare because between my 2 families, I am working for 12 days straight and then have 2 days off. I already have 3 of my own kids and a DH that works a lot so I'm super burnt out. SO I'm going to have to tell one of the parents that I can't watch her kids every other weekend anymore. It's worth the loss of money to save my sanity, though!!!

My DH got called back for a 3rd and final interview! It's on Friday. If they give him the money he asked for, it's a $8k a year raise! That works out to like an extra $500 a month (after taxes)... yeah, we'll take that! Fingers and toes and eyes and everything else crossed that he gets this job!!
Good luck hubby!!!

There was a letter in dd2s folder today when I picked her up from preschool. They were asking for subs for the program. Minimum wage, 5 hours a day up to 4 days a week...but only if a teacher is out sick or something.....so, pretty irregular but an occasional bit of extra never hurts, right? I asked dh what he thinks and hes not crazy about it. I can bring ydd with me but she is still ebf (so I would prefer to be in the infant room so I can feed her on demand), and I dont relish the thought of exposing either of us to germies during flu season.....not worth 37$ pretax to me. But Im torn because I feel like I should be doing all I can to bring in income when Im able to....which is during school hours. Yea or nay? I do keep the neighbor boy who is dd2s age occasionally and she pays me 25$/day.


Kearson......huge hugs!!! This too shall pass. This is just a season in life right now. I think you are being forged into something newer and stronger than before. Yay for Superwoman!!
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Old 09-23-2013, 02:28 PM   #9
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Big hugs Kearson! I hate that drowning feeling.

As for me, nothing new. I need to rope in grocery spending. I'm going to start with a plan of attack. That always helps, but I've been lazy and going without a plan. Not good. It's a perfect time for it too since dh heads out on a business trip tomorrow and I typically stay home when he's gone so I don't have to drag a 1 and 2 year old to the store with me unless I have to.
Heard that!! I know when dh leaves I will be able to reeeally reign in the spending because I'll be cooking for one (grown up that is ;-) ), and he wont be eating out or getting an allowance. Thats about all Im looking forward to with this deployment.
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Old 09-23-2013, 06:00 PM   #10
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Re: Dave Ramsey Support Thread ~ Sep 23 - Sep 29

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Good luck hubby!!!

There was a letter in dd2s folder today when I picked her up from preschool. They were asking for subs for the program. Minimum wage, 5 hours a day up to 4 days a week...but only if a teacher is out sick or something.....so, pretty irregular but an occasional bit of extra never hurts, right? I asked dh what he thinks and hes not crazy about it. I can bring ydd with me but she is still ebf (so I would prefer to be in the infant room so I can feed her on demand), and I dont relish the thought of exposing either of us to germies during flu season.....not worth 37$ pretax to me. But Im torn because I feel like I should be doing all I can to bring in income when Im able to....which is during school hours. Yea or nay? I do keep the neighbor boy who is dd2s age occasionally and she pays me 25$/day.


Kearson......huge hugs!!! This too shall pass. This is just a season in life right now. I think you are being forged into something newer and stronger than before. Yay for Superwoman!!
Well, you could sign up and try it out, if you do a few days and it's horrible, then take your name off the list, but you may enjoy it? never know.

Or they may already have enough people?

I would enjoy something like that, something they would have to call and check and you can say no if you already have plans.
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