January 2012 - Dave Ramsey support thread. everyone welcome!! NO judging allowed here.

[cody82414]

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

[cody82414]

2011 was pretty difficult for us in terms of progress with the Dave Ramsey program. In fact, my DH is still not on board and still has a completely different ideal of financial goals than I do.

I feel 'stuck' as he is the breadwinner and I do not work outside of the home at a paying job.

As his duty for child support from his first marriage ends in June
(hopefully)
I can see a light (albeit dim) at the end of the tunnel.

But I feel as long as we are not on the same page,
it is a definate uphill battle for me to make any change
without feeling resentment on my part
as he continues to spend at will.


We are current on our bills
and aside from mortgage
have debt totalling $43,705.+
all of which we acquired in the last 3 months of this year

[saving-n-va]

Cody, its so hard to be on a different page than the dh when it comes to finances. Like you, my dh is the only moneymaker (for now). Hang in there girl.

My dh is not a goal setter, but he is getting better about not just going out and buying what he wants. Sadly it took a brain tumor to change his attitude toward money. Our plan will be slightly different than what DR recommends. We do not have to worry about college funds for the kids and we have 2 retirements for dh already, and he will continue contributing to his at work. (not at 15% though...). Since we are closer to retirement than many, we don't want to stop that completely. We cannot dump our major debt, we have a house in FL that we can't sell due to the drop in values, but we have renters atleast; and an RV that is our albatross that we just have to keep since we owe more than we can sell it for. And again, I am NOT going to post how much we owe....its embarrassing and I honestly don't know the total right now.

So I'm going to look at monthly goals...much less scary and easier to reach. For January - do our taxes so we know what/if we owe anything, set up a budget, set up a plan, finish paying for dd's wedding, and for me to find some income (getting on more sub lists at schools).

[jenrose]

My Goal for January is to keep dumping money into the emergency fund. This also means I need to get off my spending kick I've been in the last few months.

I would like to have at least half of the $ needed to pay for DS2 to go to full time kindergarten next year by the time school starts in September. It is $350.00 per month for 10 months so 1/2 of that would be $1,750.00 by September. Eeek!!!! So I need to average about $200 per month into savings!

My income next school year should actually mirror what additional $ I need for that. I currently pay $120 per month for DS2 to go to preschool so it is actually only an additional $230.00 and I should be working an additional 5 hrs a week since my commute time will be reduced by that much having both boys at the same location at the same times. But I'd rather have at least some of that $ in savings incase of any bad months etc $ wise.

[cody82414]

fantastic goals ladies!
Thanks for joining in!

[IntoTheMystic]

I don't want to post too much financial info, but I am going to follow these steps, with some modifications.

I can definitely sympathize with how hard it is to live with a spouse who does not share your financial goals. I am always saying "no", but if I didn't, we'd be living in a cardboard box.

My first hurdle is the baby EF.

[saving-n-va]

Definitely not gonna discuss anything about the budget with dh tonight. Don't you love it when the dh gets everyone in a bad mood then can't understand why we are all grumpy?

Just remember to take baby steps ladies....you can't do it all at once.

[cody82414]

Definitely not gonna discuss anything about the budget with dh tonight. Don't you love it when the dh gets everyone in a bad mood then can't understand why we are all grumpy?

Just remember to take baby steps ladies....you can't do it all at once.

This NEVER (cough cough)
happens around here.

[saving-n-va]

This NEVER (cough cough)
happens around here.

Then comes back in the room 20 minutes later like nothing happened?!?

Yeah Cody, I'm sure THAT never happens either huh?

So we went to get the guys fitted for their tuxes for the wedding. $120 EACH!!! And I still need to find a dress...and find a way to have a bridal shower between now and the wedding (in 8 weeks...).

[KmmCo]

Okay everyone - it is time for me to get serious about this!! Some of my EF got spent to pay bills this month so it is at only $650. After the new year, I think I might go open an account at a different bank as it is too easy to transfer from my savings into the checking account! I worked a ton of OT this month and that will help a bunch to get caught back up again in January.

I have a few big bills coming in January to take care of too (like car insurance). And of course, the ski trip with the teens is coming up fast too.

I am going to continue conserving on gasoline, electricity, and food costs as best I can to try and help out the budget. I do still have a lot of meat in the freezer, so I should do great on groceries for a while longer.