August 2017 Dave Ramsey FPU support

Discussion in 'Debt Help, Management & Support' started by cody82414, Aug 3, 2017.

  1. cody82414

    cody82414 The Happy Hoo-ha Hacker<br>Member Of The Month Jan 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
     
  2. cody82414

    cody82414 The Happy Hoo-ha Hacker<br>Member Of The Month Jan Trader Group

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    It's back to school month, so along with that comes fees, clothes, supplies and more. Hoping to stay within budget now with two middle schoolers :D
     
  3. KmmCo

    KmmCo Well-Known Member Trader Group

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    Hey cody82414, Thanks for getting the new thread up. I am a little behind the times.

    My update: came in with only $5 leftover on budget for July. Way over in the food category and under in gasoline for the second month in a row, so I need to think about readjusting the amounts. Seems like meat prices have gone up quite a bit lately.

    Waiting for the house closing on Monday. It was supposed to happen Friday, but the appraiser is behind the times and will not get done in time. Looking forward to being $75k richer next week. I already talked to the bank and they said no hold on wire transfers, so I will get the additional principle payment out some time next week and give you a report on my new mortgage balance......
     
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  4. cody82414

    cody82414 The Happy Hoo-ha Hacker<br>Member Of The Month Jan Trader Group

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    Wow! I'm looking forward to being where you are.
    We are still plugging along on Baby Step 2, although in the past 3 months we have worked of 8800. of debt! So we are happy about that :)
     
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  5. KmmCo

    KmmCo Well-Known Member Trader Group

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    For the August budget, I slashed $20 out of gasoline and put it on the grocery category. I was $50 over last month on grocery and $20 over on restaurants, so I am gonna be more careful this month for sure.....

    Sept vacation is coming. I have $1000 set aside for that plus an extra $100 in the vacation fund just in case. Considering that I am taking a cooler of groceries with me and doing picnics for lunch, we should be in good shape. Lodging is taken care of already since I did a timeshare exchange months ago. Staying at Super 8 for $50 on the road outbound- prepaid already. On the way back I am leaving it flexible to just come home in one day or get another cheap room if we want. Figuring on a generous $250 of that budget being for gasoline and the rest for eating out a couple of times and some cheap entertainment options....

    We are shopping for a "new" used car for us and planning on selling the old one to DS. After looking for a car that he could afford, that ended up being the best option for him. A little high on mileage on the old car (150K) but we know it is reliable and it just got new tires this summer too. Kinda stalling until Oct if I can on that - unless I happen to find a bargain before then......
     
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  6. bugweena

    bugweena Well-Known Member Trader Group

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    Planning a 4 night cabin stay in the mountains with BIL/SIL. Cabin is already paid in full from July budget. We have purchased our one 'activity' (train) tickets and we will pay BIL when we get there. For the first time ever we are going to be low key on this vacation and not do any attraction/activity that costs $ except the train ride. BIL and SIL actually want to cook meals instead of eating out every meal which is the norm with them on past vacations! I have plenty of meal ideas rolling around in my head. I have a freezer full of things we can take for meals. Just have to buy fresh stuff and little things.
     
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  7. cody82414

    cody82414 The Happy Hoo-ha Hacker<br>Member Of The Month Jan Trader Group

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    What a relief to vacation and not accumulate debt! Great for you!!!
     
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  8. KmmCo

    KmmCo Well-Known Member Trader Group

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    House sale is complete and the money is in the bank..... Transferred 5K to IRA, reserving 70K for the mortgage on Sept 1, paid a $450 credit card bill from expenses that got charged for getting the house ready to sell (like the hotel stays last month, packing materials, etc). I have a big $1600 that is going into regular savings for now - that may eventually get sent to the retirement fund later - depending on whether I think I need it or not.

    The biggest relief for me is not having to go take care of the KS house anymore! I will have one more set of the final utilities to pay on Sept 1, then no more bills from there.

    Here is what I am saving each month too out of my budget. $133 property taxes, $101 insurance, $90-$100 for bills, and $140 - $200 for transportation there. That is $464-$500+ no longer bleeding out of my pocket. Putting that money into my remaining mortgage balance of approximately 38K will get it paid off pretty quickly!
     
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