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Old 09-30-2013, 08:02 AM   #1
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Dave Ramsey Support Thread ~ Sep 30 - Oct 6

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 09-30-2013, 08:12 AM   #2
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Another week. I sat down and looked at my budget. Things are tight. I'll be juggling until the end if the year when I get my tax return. As of right now, working part time, I technically make enough to cover my expenses as long as I have tuition support from XFIL and XH.

XH has found under the table work for now. He back paid me for August and September and gave me the money for October tuition as well. Fingers crossed he can keep it up until the end of the year.
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Old 09-30-2013, 08:55 AM   #3
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Another week. I sat down and looked at my budget. Things are tight. I'll be juggling until the end if the year when I get my tax return. As of right now, working part time, I technically make enough to cover my expenses as long as I have tuition support from XFIL and XH.

XH has found under the table work for now. He back paid me for August and September and gave me the money for October tuition as well. Fingers crossed he can keep it up until the end of the year.
I hope so girl!! You need a break! Huge hugs!!

AFM, with this expensive trip coming up, I set a goal to meal plan from the pantry, freezer and deep freeze and I DID IT!!! I have never quite gotten into meal planning but groceries are our biggest expense and we need to not put the every grocery employee's kid through college lol. Every bit of our food storage is crammed so theres no real reason for buying like we do.
I also spoke to hubby about his out of control spending. Apparently he thought I meant Never ever go out. I clarified...I can deal with once or twice a week but our budget cannot absorb his daily habits. He seemed to get it so we will see. I offered to make nonrefridgerated stuff for him to have on the road and to make lunch on days hes in the office. He didnt jump all over it though.
He is a nickel and dime guy....goes into the gas station for a 69c fountain drink because its cheaper than bottled drinks...doesnt have cash so he buys a snack because he feels bad swiping on a 69c tab. So 3$ at least once a day....I figure that to be at least 60$ a month. That got his attention. :-)
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Old 09-30-2013, 09:57 AM   #4
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Re: Dave Ramsey Support Thread ~ Sep 30 - Oct 6

Kearson, that is great news form your XH, I hope too he can keep it up, but it does say he cares that he back paid you!

Candi, well here's hoping that it all sunk in for him, can he just carry around cash, like an agreed upon amount and then when that is gone, he has to stop spending for the week? and take packed lunches.

AFM, my DH and I wrote out a list of things we need to finish before we put the house up for sale in the spring, I am getting more used to it, it's just hard, because this is basically a dream house that we got to live in for 2 years, but since we have so much equity into it then we need to sell it to make the best financial decision for our family, even though we can afford it, we have a nice 15yr fixed and a proper % of our income, but we are thinking more of early retirement and we need to live well below our means to do that.

At this point it looks like we have more leftover at the end of this month than I was thinking, so more to put in the EF.
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Old 09-30-2013, 11:50 AM   #5
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Re: Dave Ramsey Support Thread ~ Sep 30 - Oct 6

sent my dh an email this morning re finances, they look OK. I wish it was better but I paid off my cc from its spending spree.

The brother's wedding probably cost us $300. I haven't actually checked out the receipts yet. A lot of the restaurants in the town take ONLY cash (we only ate out 2x in the 3 days). Our hotel wasn't very impressive but it was close to the event. Other family members were between 15-30 miles away and we were 5. we were also sent home with an ice cream pail of hot beef sandwich type of meat, so this weeks menu is changing to use some of that meat up (we froze it at the hotel in order to bring it home cold).

With the birthday party and wedding over and the cc paid off, I can think about Christmas. I have the gifts for the boy's cousin gift exchange. But nothing else.

Kearson so glad to hear that x was able to get money for his son's tuition. have you heard anything from state aid?

Candace, we were able to eat mainly from the pantry for quite a few months. But we tend to meal plan from the pantry usually anyway. For me its a mind-set thing, I think what if the roads have so much snow on them that I would not be able to make it to town for a week. U got that's not going to happen. My DH buys 2 ltr bottles of soda on sale at $1 a bottle they are still cheaper than the gas station, he says he doesn't drink more than half of it a day.
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Old 09-30-2013, 12:21 PM   #6
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Candi, well here's hoping that it all sunk in for him, can he just carry around cash, like an agreed upon amount and then when that is gone, he has to stop spending for the week? and take packed lunches.
You would think so. He gets a set amount every two weeks into his account...its been up to him to get cash but I might have to put him on a cash crash diet (heehee). It takes him a week to 10 days to go through it....some spent on other stuff too. Then once its gone he starts swiping from the main account. > Before I gave him a debit card, (for some specific expense a couple months ago...never got it back) he was charging everything. I told him yesterday I would pack snacks. He loves tea and thats almost free. I have some made but apparently I have to do everthing for him. Codependency is going to make me homicidal. :-S
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Old 09-30-2013, 12:26 PM   #7
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Its funny too....hes all bummed and saying how disgusted he is with his expanding waistline....and I know its due to all the garbage he eats! I need to find some other way of saying things because he is either not getting it or he just doesnt care.
And I also feel like I have to be his mommy giving him an allowance and making all his little lunches and snacks.
Anyone else have this problem?
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Old 09-30-2013, 12:35 PM   #8
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Re: Dave Ramsey Support Thread ~ Sep 30 - Oct 6

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Originally Posted by bluecandi View Post
Its funny too....hes all bummed and saying how disgusted he is with his expanding waistline....and I know its due to all the garbage he eats! I need to find some other way of saying things because he is either not getting it or he just doesnt care.
And I also feel like I have to be his mommy giving him an allowance and making all his little lunches and snacks.
Anyone else have this problem?
Sorry that would bug me too. Not sure what I would do in that instance, my DH always eats at the office because he is cheap and he is trying to lose weight, he takes an energy bar and maybe some hard boiled eggs, he is way more frugal than I am with eating
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Old 09-30-2013, 12:59 PM   #9
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Another week. I sat down and looked at my budget. Things are tight. I'll be juggling until the end if the year when I get my tax return. As of right now, working part time, I technically make enough to cover my expenses as long as I have tuition support from XFIL and XH.

XH has found under the table work for now. He back paid me for August and September and gave me the money for October tuition as well. Fingers crossed he can keep it up until the end of the year.
Woo! I'm glad you're getting the help from him you deserve. I hope he can hang on.


Quote:
Originally Posted by bluecandi View Post
Its funny too....hes all bummed and saying how disgusted he is with his expanding waistline....and I know its due to all the garbage he eats! I need to find some other way of saying things because he is either not getting it or he just doesnt care.
And I also feel like I have to be his mommy giving him an allowance and making all his little lunches and snacks.
Anyone else have this problem?
DH started acting like this so we had a sit down where I told him flat that I want an equal partner in life and that it's unfair to try to force me into a mother role, I didn't sign up for that and I already have a child to mother. Things have been WAY better since then. I also vote for the cash crash diet.
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Old 09-30-2013, 07:49 PM   #10
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Re: Dave Ramsey Support Thread ~ Sep 30 - Oct 6

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Originally Posted by bluecandi View Post
I hope so girl!! You need a break! Huge hugs!!
Quote:
Originally Posted by greenMImama View Post
Kearson, that is great news form your XH, I hope too he can keep it up, but it does say he cares that he back paid you!
Quote:
Originally Posted by drabekgirl View Post
Kearson so glad to hear that x was able to get money for his son's tuition. have you heard anything from state aid?.
Quote:
Originally Posted by EmmaGM View Post
Woo! I'm glad you're getting the help from him you deserve. I hope he can hang on.
Thank you, ladies. I'm hoping he can hang with it too. He says he's still looking for a permanent job, but as long as he's paying his share, I really don't care.

I still haven't heard from Medi-Cal either. I'm not sure what is going on. Guess I'll have to call.
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