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Old 06-18-2014, 07:24 AM   #1
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Dave Ramsey Support Thread ~ June 16-22

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 06-18-2014, 01:21 PM   #2
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Hey ladies! We are hoping DH starts getting paid this week. It will be so nice to have income again
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Old 06-18-2014, 06:39 PM   #3
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Re: Dave Ramsey Support Thread ~ June 16-22

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Originally Posted by bluecandi View Post
Hey ladies! We are hoping DH starts getting paid this week. It will be so nice to have income again

Fingers crossed! My DH is "unemployed," he's currently working a lot of odd jobs for friends. I too, can't wait for stable income


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Old 06-19-2014, 07:23 AM   #4
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We are 6 days away from a major move and I am trying to prepare myself mentally, physically, and financially.
We are just settling down from a major visit from Murphy (tick infestation in our house, dog passing away and several vet expenses, dental issues, car repairs, and a stomach bug). When it rains it pours, but I must say, financially, it was a relief to know we are now debt free and had money saved. Something we could not have done or said 3 years ago.
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Old 06-19-2014, 10:10 AM   #5
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Re: Dave Ramsey Support Thread ~ June 16-22

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Originally Posted by krispy79 View Post
We are 6 days away from a major move and I am trying to prepare myself mentally, physically, and financially.
We are just settling down from a major visit from Murphy (tick infestation in our house, dog passing away and several vet expenses, dental issues, car repairs, and a stomach bug). When it rains it pours, but I must say, financially, it was a relief to know we are now debt free and had money saved. Something we could not have done or said 3 years ago.
I'm so sorry Murphy visited but what a relief to be debt free!

I sent a chunk to the credit card bill yesterday. Now to keep whittling away at it. I did a quick budget review of what I'm responsible for and should be able to pay a few hundred a month. I really want to save it but that will come soon enough.
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Old 06-19-2014, 12:25 PM   #6
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Re: Dave Ramsey Support Thread ~ June 16-22

Fingers crossed for Bluecandi and Lolobug for stable incomes and paychecks! Hopefully that will work itself out this week.

Also good luck to krispy79 with the move. I know how stressful those can be without children, I can only imagine how it is with LO's. Also sorry about all the rough stuff happening, its never fun having to deal with some many things at once.

As for me, this week or two will be tough, DH doesn't get paid until the 27th and we are dangerously low on funds. We will have enough for gas, and hopefully enough to restock our produce next week. Other than that I am going to be doing a mini pantry challenge as we don't really have enough to get much else at the store. So here it goes to making things with what I have! Surprisingly though we didn't really go over budget this time, its just the part of the month that is super tight because of our mortgage, so I guess that is something.

Meanwhile my DH is finally realizing that being on a budget really means just that and that sometimes you can't get what you want when its tight. Last night at the store we were getting some stuff to make pizza this weekend for the party we are having. He wanted to get a case of beer, like a 24 pack I believe. And I told him that if he gets the beer we can't get as much food next week when we shop. He just looked at me and got this sullen expression and was like oh, I guess I don't need the beer. LOL. I think I need to give him a very small beer allowance so he won't take it out of the grocery money.
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Old 06-19-2014, 12:38 PM   #7
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Re: Dave Ramsey Support Thread ~ June 16-22

Feeling pretty good right now- we just paid off the last of our medical bills and that puts back $100 a month into our budget!! We also just have $300 left to fully pay off another one of our credit cards....still have 3 more to go and they have small balances...but we are getting there!!! Feels so good to make progress towards eventually being DEBT FREE!! Woohoo!
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Old 06-19-2014, 01:56 PM   #8
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Re: Dave Ramsey Support Thread ~ June 16-22

Quote:
Originally Posted by krispy79 View Post
We are 6 days away from a major move and I am trying to prepare myself mentally, physically, and financially.
We are just settling down from a major visit from Murphy (tick infestation in our house, dog passing away and several vet expenses, dental issues, car repairs, and a stomach bug). When it rains it pours, but I must say, financially, it was a relief to know we are now debt free and had money saved. Something we could not have done or said 3 years ago.
Wow thats great to be debt free.....so sorry about Murphy....thats a lot of hits to take!
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Old 06-19-2014, 01:58 PM   #9
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Re: Dave Ramsey Support Thread ~ June 16-22

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Originally Posted by KingsDaughter76 View Post
Feeling pretty good right now- we just paid off the last of our medical bills and that puts back $100 a month into our budget!! We also just have $300 left to fully pay off another one of our credit cards....still have 3 more to go and they have small balances...but we are getting there!!! Feels so good to make progress towards eventually being DEBT FREE!! Woohoo!
WOOHOO!!!!!!!!
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Old 06-19-2014, 02:00 PM   #10
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Re: Dave Ramsey Support Thread ~ June 16-22

I swear DH needs a facepalm! He texted and oops he got paid last week but didnt know it. Umm what?!?!! I dont know how much it was but thats good we are getting into a routine and can FINALLY (after almost 3 years) get off storm cloud mode.
He also got a ticket a few weeks ago. Blah. Hes seriously costing too much lol.
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