February 2017 Dave Ramsey support and chat

Discussion in 'Debt Help, Management & Support' started by KmmCo, Feb 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.

    "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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    House payment went thru today with the extra $38.19 on principle. New balance = $113,683. I have $41+ in my little envelope for March 1 now. (I squeezed that $30 out of my son today for his "bills".)

    I set up the transfer to savings for my $153 left over from January budget. I checked and there was $57 in the account so now I am at $200/40000 goal. Baby steps...

    Grocery bill was super cheap this week since I skipped shopping on Monday. Today all I picked up was bread and some Italian sausage for dinner - $4.62 out of pocket. Next week I will be out of town, so the guys will have to scrounge up their own food. I have plenty of stuff still left in the pantry/freezer or else they can use their own spending money at the store while I am gone.
    Sherri1480 likes this.
  3. Lucky1307

    Lucky1307 Super Swapper June '09 Trader Group

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    February is off to a great start we paid an extra $83 on the car payment so it is now PAID IN FULL! Crossing fingers that this one doesn't quit one running like the last one just weeks after is was paid off. Not taking the full coverage off just yet due to it being our only car and I had several close encounters with the deer here last week.
    Sherri1480, jastwins and KmmCo like this.
  4. KmmCo

    KmmCo Well-Known Member Trader Group

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    At almost halfway thru the month my budget is doing fine. Groceries at $116/$200 because I already did this weeks shopping (including a mail order for snacks from Boxed that will arrive on Wed). Gasoline on target at $121/$240. I have not spent any of my sports/entertainment budget or my Misc household budget (This is for TP, soap, etc. - I had plenty of that stuff stockpiled already. The only thing I will need before months end is laundry soap as I am on my last bottle now.)

    The grocery category is smaller than normal because I am still trying to use up my freezer and pantry stuff this month. I put the extra $100 into after tax investments for this month. :) Next month my grocery budget will go back to the normal $300 that I usually spend.

    I reduced my withholding at work a little bit since they kept too much of my money again last year! That gave me about $30 more in this weeks check, which I had to allocate to the KS bills category. The heat bill was a little more than I originally budgeted because it had been pretty cold down there in January. (I leave the heat at 58 when I am not there to keep the pipes from freezing.)

    My KS car rental for Feb was a bargain (from priceline) at $43 under budget. I will save that money for April since I am going by airplane 2x instead of just once that month.
    Lucky1307 likes this.
  5. KmmCo

    KmmCo Well-Known Member Trader Group

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    I got the same car deal as above for my March trip.:) Thanks to cashing out an Ibotta gift card, I spent only $20 on groceries so far this week. I may have to pick up a few more items on Wed though (like bread, produce, milk). Spent $8 out of Misc for laundry soap, but am holding on to the other $32 as tight as I can....

    Building some savings is an important goal that I have this year, and staying under budget is really helping me to do that.

    We settled on the cheap vacation options this year too. We are doing a weekend detour to Dodge City on the way to work on the KS house in June and then we are going to just do a driving vacation to Park City in the fall. (I can pack the cooler with some groceries from home to save money. If needed we can drive down to Salt Lake City at some point to shop as it is only about 25 minutes away.)
  6. KmmCo

    KmmCo Well-Known Member Trader Group

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    Applied $47.57 in extra principle to the mortgage payment for 3/1/17. Will update the balance on the March thread for you all.

    Added an extra $20 to the vacation fund. I switched it from another budget category for Feb.:)

    I established a baseline for my "normal" paycheck now that I have finalized the adjustments to taxes and other withholdings for 2017. This figure will help me to figure out how much of my pay is "extra" so that I can apply it to the mortgage. I will have a day of holiday pay from Presidents day that I will get paid for in 2 weeks - that can go on the next principle payment.

    Still way under budget for Feb in a lot of categories, but I need to go grocery shopping today so I may spend a lot of my grocery budget .

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