April 2017 Dave Ramsey support and Chat thread

Discussion in 'Debt Help, Management & Support' started by KmmCo, Apr 1, 2017.

  1. KmmCo

    KmmCo Well-Known Member Trader Group

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    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 snowballwithin 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
     
  2. KmmCo

    KmmCo Well-Known Member Trader Group

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    Starting the month off with a very small grocery shop of only $4. I am gonna be watching my budget really closely - looming possibly of government shutdown at the end of the month equals the possibility of delayed pay in May. If that doesn't happen and I save a lot of money anyway in April, then I will have a good start to adding to savings for the summer.

    I know I had rentals the last 2 weeks, because there were comments in the guest book. Looking forward to the deposit from the property manager sometime this week ... I will leave the majority of the $$ in the account just like I did last month for future use. For April I have an expectation of zero rent, so if I get anything then it will be a nice surprise. We are skiing this week due to a nice dropping of 21 inches of snow in the last 7 days. The resort is staying open till Easter so there is a possibility of 2 more weekends of good skiing. I saw the property manager had put out an ad for $119/night rent specials so maybe I will get lucky and pick up something.
     
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  3. bugweena

    bugweena Well-Known Member Trader Group

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    I am starting off the month with meal planning. We don't eat out very often but many evenings we are just eating whatever I can throw together from the freezer and pantry. But I am now trying to plan meals a few days out to save myself from the frustration of "I don't care" when I ask what do you want for dinner AND eliminate any trips to eat out.
     
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  4. KmmCo

    KmmCo Well-Known Member Trader Group

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    Ate out 2 lunches in a row - yesterday and today. Must do better the rest of the month!!

    Anyway still waiting for rent money to get deposited from the resort. Around the 5th seems pretty casual to them as I sometimes get it closer to the 7th or the 8th! This will be a good payment with the last 3 weeks of the month being spring break.

    I did get $195 in dividends on the 1st, but that gets reinvested so no cash from that. I should get 3 more dividends before the end of April but none of them will be over $100. They will all get reinvested as well....
     
  5. amber g

    amber g Well-Known Member

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    Set up an appointment with a Dave Ramsey approved financial adviser on May 11th, excited to get some extra retirement going. My vacation/Christmas fund should be fully funded by the end of this month. After filing a different way, we are saving a significant amount on the taxes we owed, I had already put money aside to pay the larger amount so I will be able to allocate that elsewhere. After my vacation fund is fully funded, the rest of the year I will work to put the max into an IRA I am planning to set up and paying down the mortgage.
     
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  6. KmmCo

    KmmCo Well-Known Member Trader Group

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    Rent money is tucked away in the bank. I have most of the bills for the month paid - just the water for 2 houses left to pay.

    I spent $20 for groceries in KS this weekend, but some of the food came home with me. There is still one frozen dinner and some shredded cheese that I left down there for next trip. Meeting a real estate guy next time and hopefully will get the rest of the work done and have the house on the market by the end of June....:D. It will be a relief not to have to keep going down there to take care of the house.

    Anyway, I scrounged up some hamburger helper to make tonight and will probably have DH cook some spaghetti again this weekend. That way I don't have to buy anything until next week...
     
  7. KmmCo

    KmmCo Well-Known Member Trader Group

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    Got a small stock dividend this last week($35) that went right back into reinvestment... every little bit helps to build up the retirement funds. :D

    I am not even 1/4 of the way through my gas and food budget at the halfway point in the month. I will go today though to fill up the SUV and to do some grocery shopping. I think I can come under budget in both categories this month.

    Changed some insurance coverages over the last couple of months and am cutting that expense category by $125/month. Huge savings! A couple of my other bills have gone up though by a few dollars (like the water at + $5). In May I am gonna reevaluate my entire budget situation and see if I I can squeeze a little more out for savings. I might feel like doing a little OT over the summer to add to my savings too - we will see how enthused I really am about that later.....

    I traded phone numbers with a newer gal at work that is becoming a good buddy. We are plotting to do something cheap together this spring like hang out at a lake to picnic and fish. Neither of us want to spend $$ but we really need to get out of the house a bit.
     
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  8. amber g

    amber g Well-Known Member

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    Vacation fund (includes a week to Colorado and an added weekend in Branson later this summer) and Christmas are fully funded. Budget for this month will not have any extras. Hubby had a run to the emergency room on Easter. He has an infection in his knee that is still not healed all the way. Already out about $225 in medical expenses with ER copay and prescriptions. And I know will be rolling in from the ER, lab and primary doctor. Also spent about $250 unplanned on the our Durango. $100 deductible on some air conditioner work and $150 for the dealership to detail it(not all that great) We are still looking into selling the Durango and getting something we can pay cash for with much better gas mileage since hubby travels so much for work. Waiting for all my tax stuff to be withdrawn/deposited so I can allocate the money we had saved for a higher payment we did not end up having to make. Also I know there will be some extra money in my working account since we had 3 paychecks in March but I only budgeted for 2 checks. Waiting for all the tax dust to settle and then I will see what is left.
     
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  9. KmmCo

    KmmCo Well-Known Member Trader Group

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    Opps - just realized that April is over already. I will start the May thread this evening....

    My April budget came out okay. I was $159 under in spending but I also put a $124 deposit down on ski passes that I did not have in the budget yet. I will collect $60 from DS today for his half of that pass purchase, so that trims it down to minus $64 off the bottom line. Still under by $95 :). My income was not impressive at only +$7.06 over projections.

    I hired someone to mow the KS lawn so that will have to go into the budget for the summer, but it should balance out as I won't have to spend gas going down to do the mowing myself. That is a big relief as I already freed up at least one weekend in June that I was planning on driving down. I have work to do on my ski condo this summer anyway - I had planned some upgrades last year that didn't happen when access was limited due to the patio construction. I called one contractor today to get an estimate on the fireplace refacing and am waiting to hear back on that. (I have a tile picked out already that I want to use and will have to talk over mantel options to go with that.) I plan to get a new microwave and stove by fall as well, but DH can install those for me.

    I did kick in $77 extra on my mortgage payment today, just from rounding the payment up to an even amount this month. Realtor in KS gave me hope that I might get more out of the house down there that I think since it is really a sellers market right now. Goal is to get it on the market by the end of June and sold by fall.... Proceeds from that will take a huge chunk of money off my mortgage. If I can be rid of the place soon, then the money I spend maintaining it will go onto the mortgage payoff and I will be that much closer to retirement....
     
  10. amber g

    amber g Well-Known Member

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    No extra money in Aprils budget. Hubby is in the hospital right now due to an infection in his leg that started on Easter. It has been a long and tiring 2 weeks dealing with this. In the middle had a big outage at work that led to more difficulties. The good thing is I have been able to pay about $400 in medical bills for hubby from Aprils budget, so no dipping into savings. I did hit my $6000 for my vacation/Christmas fund so that is fully funded, or was, we have already paid for a couple of VRBOs for our Colorado trip in late June. Bracing myself for what medical bill lie ahead with an out patient surgery to drain his knee, and so far 2 nights in the hospital with iv antibiotics. While this will might be a set back for my goals this year, I am determined. Priority is to get him healthy. I may be able to take some of my tax savings and put it towards these bills instead of a jump on my other goals. Still planning on meeting with the financial planner next week, so hopefully that will spark some extra motivation.

    Oh also in the middle of that hubby's car that we had just gotten out of the shop a few weeks ago had to go back in for another unrelated problem. We have a wrap around warranty purchased when we bought it. Everything is covered but we do pay $100 deductible each time. We are/were planning on selling/trading that in for a car that got better mileage and that we could pay cash for any difference. I guess we will see what happens with that.
     
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  11. KmmCo

    KmmCo Well-Known Member Trader Group

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    Amber - watch those infections for sure! DH ended up in the hospital for a week from one a few years back... Dr told me if he had not come to the ER when he did that he would have been dead in another 24 hours. It was sure a wake up call to DH to take better care of his health! He is still not in the best of shape, but at least he is trying to lose some weight and eating a lot healthier that he used too....

    Hopefully your insurance will cover most of the hospital bill and you won't get hit with too much out of pocket.

    Vacation rentals are the way to go with a family. Much nicer to get a house or condo with a kitchen than to stay in a hotel when you have starving kids.... I think you said Colorado Springs was a destination. Are you going any place else as well? I will be glad to tell you whatever I can about where you are going if you have any questions....
     
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  12. amber g

    amber g Well-Known Member

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    I know!!! We actually took him to the ER the first night. His knee had been swollen in the morning, when we got home that evening he went to rest, I came up and he was burning up. We went straight to ER. They gave him iv antibiotics and sent him home, followed up with primary the next day. It was looking better and they kept him on lots of oral antibiotics. 2 weeks later it looked ok, but still hard to put pressure on. Sent us to ortho who drained and said he would have to go into hospital that Monday to have it surgically trained. In the hospital infectious disease is in charge, hopefully he is finally coming home tomorrow. His wound has to be packed daily, so he will probably have home health. A few years ago he had kidney stones, horrible kidney stones. We had gone with a higher deductible plan that year because we never had any issues. Cost of around $5000 out of pocket. Now we have switched back to a lower deductible, so hopefully its not too awful.

    Definitely wanted to a vacation rental for a few reasons. We are a family of 5 with kids 11,9,7. Most hotel rooms unless they have that additional fold out couch bed don't work. We thought about doing an air mattress. But for not much more we can get a roomy vacation rental. We will pack breakfasts and try to do several dinners there as well. Lunches may be harder since we will be out a lot during the day. First 4 nights are in Colorado Springs area. We are going to do Pikes Peak, Garden of the Gods, Seven Falls and Royal Gorge. We will also go to Cripple Creek. Then we will spend a few days in Estes Park. Hubby and I did this same trip before we had kids and had a great time so we want to do it with the kids.

    I would definitely take any suggestions on other things to do in those areas. We should have time to do other things, but are having a hard time deciding what looks interesting enough to entertain the kids? See lots of museums online, but not sure how good those would be. Definitely looking for more activities.
     
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