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Reply With QuoteOur family goal this month:
Baby Step 1: Save $1000 cash in the bank
Start your emergency fund. If your income is less than $20,000, make that $500.
We currently have $500.
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Dave Ramsey support thread - July 2011 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 deductables 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 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
"What can you do when you have no payments? Anything you want!" - Dave Ramsey
Re: Dave Ramsey support thread - July 2011 Our family goal this month:
Baby Step 1: Save $1000 cash in the bank
Start your emergency fund. If your income is less than $20,000, make that $500.
We currently have $500.
Joe born 10/15/2011
Re: Dave Ramsey support thread - July 2011 Goal by 07/01/11 - $500 into Saving - DONE
Goal by 07/22/11 - $1000 into Saving -- Baby Step One complete - had to adjust date from the 8th as DH hours were cut back and my mortgage is due next week so
Very excited about this!!! WOOHOO
Re: Dave Ramsey support thread - July 2011 Anyone starting to have a love/hate relationship with BS 2. I'm feeling the hate right now. I want rid of this debt so bad. It seems like every time we make a step forward we have to take a step back. But I'm not losing the faith, just getting impatient (which is my nature).
Re: Dave Ramsey support thread - July 2011 Yeah, Kim.. I feel ya! We had to move some from savings into checking.. been lazy, eating out the rest of this week until paycheck friday. And husband had another flat tire last night. LOL :)
Joe born 10/15/2011
Re: Dave Ramsey support thread - July 2011 Update for us:
Our progress via Dave Ramsey's Baby Steps:
The Baby Steps:
Completed 2011
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.
Current Step Started 7/2011
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- We have decided to continue these.
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)- Current step started 7/2011
0.8 Get current on ALL bills.
1.0 Save $1000 in Baby Emergency Fund (EF)- Current step started 7/2011
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 deductables 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. Current step stated 7/2011
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 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!
Joe born 10/15/2011
Re: Dave Ramsey support thread - July 2011 My husband and I just got started w/the DR plan. We got serious about a budget, current on all our bills, and put $436 into our emergency fund in June. Woohoo!
If all goes as planned in July, we'll finish our emergency fund, pay off the last bit of his smaller student loan, and pay $500 toward our truck loan. We'll have that one knocked out September :)
Re: Dave Ramsey support thread - July 2011 I love love love the progress you all are making!!
We will be leaving for our ALL cash paid for vacation
on Saturday
and it feels so good to know the credit card bill won't be coming the following month!!!
Re: Dave Ramsey support thread - July 2011 Just thought I'd share with this group. Hubby got a job! So we are switching out of "emergency mode". Since I decided not to bring up the debt discussion anymore with hubby. He has decided that he doesn't need a new car, that the increased cost of gas to his job didn't justify a car with better mileage; and is going to take some of the retirement income that we just got to pay off my car. (2 years early!). He got us pre-approved for a home loan since its cheaper than renting, and now we are trying to find a place within our price range. Not easy in this area, but we have some possibilities, now that he has set realistic ideas for what we need in a house.
So I guess it just took him coming up with the ideas "on his own"...lol.
Now we are adjusting to paying state income tax for the first time since we have been married. OUCH.....painful.
Re: Dave Ramsey support thread - July 2011 That is great news Savings!
And way to go to everyone else who is working to become debt free.
and DS-2 
and owner of 1 
~
