Dave Ramsey support thread SEPT 2017

Discussion in 'Debt Help, Management & Support' started by KmmCo, Sep 8, 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


     
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  2. KmmCo

    KmmCo Well-Known Member Trader Group

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    A little late this month as I have been really busy......

    Baby Step 6: Pay off the house is coming along nicely. Balance now down to 47,839. Next month's (Oct) payment is already scheduled with +$1000 extra on the principle so that should get me into the upper 45K range since regular payment also contributes $1000 to principle.

    I held back 10K from the sale of the KS house and will slowly feed that into the mortgage over a few months in order to make sure I have enough cash on hand for a while.

    I am also collecting some of my stock dividends as cash to put toward the extra house principle instead of reinvesting. I figure I can easily boost up my investments after the house is paid off. I am plowing 20% into my 401(k) just because I really feel that is important, but other after tax investments are on hold until I get the house paid off.

    I made a big $300 off my condo rents for August - holding it in reserve for the eventual stove replacement that I am doing in the fall. I got the rental calendar for the next 6 months and Jan./Feb. are pretty full up. I guess I will be day tripping up to ski this year after Christmas. Since that is the case, I am keeping my same schedule for the winter months of Thurs, Fri, Sat off.
     
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  3. KmmCo

    KmmCo Well-Known Member Trader Group

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    More mortgage details: Oct 1 payment = 1072.59 principle, 259.13 interest, and the rest is escrow. I will be actually putting $2150.27 toward principle next payment with the extra $1000 and my normal monthly round up added in. Basically doing 2 payments in one and saving another $250 in interest at the end of the loan as well as one less payment.:D

    I just got a $29 cash back from my bank for just doing my normal banking stuff over the last few months. I applied it to my vacation savings account. I also have a rebate visa card with $18+ still on it to use for something on this trip. I got tickled at one of my coworkers last night because he was making fun of me for staying at a $50 Super 8 on Friday instead of getting a $100 holiday inn room or something even more expensive. I couldn't convince him that saving $50+ dollars was worth it - a hotel room is a hotel room in my view as long as it is clean. For one night it just wasn't worth spending more $$$.... I am gonna use the extra $50 to go out to a nice dinner on Friday instead!
     
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