JUNE 2017 Dave Ramsey Support and Chat

Discussion in 'Debt Help, Management & Support' started by KmmCo, Jun 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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    Can't believe it is June already!

    I added $77.68 extra principle to my mortgage payment today to round it to an even amount. BS 6 is only plodding along slowly until I get that house sold in KS. From the proceeds of the sale I will top off the rest of 2017 IRA contribution that I can make, then apply all the rest to the mortgage of this house that I am living in.

    As is becoming my habit, I did an end of month checkup on my retirement fund yesterday. It is up to above 150K, so now I am motivated to see it grow to 200K soon!
    I added $10 a month to my Roth 401(k) withdrawal starting in June - just a little pinch out of my budget for now. (As soon as that crazy high mortgage is paid off, I will top out my 401(k) at the max of $923/paycheck that I can contribute and we will live only off DH's pay. The entire rest of my pay will go to after tax savings until I do leave my job.). I am picking up a couple of shifts later this month and will feed that money into my IRA :).

    Waiting for an estimate on my fireplace renovation at the condo. I spent $200 on some improvements this last weekend and ended up returning the microwave that DH had bought ($213 with tax) so it all comes out even in the wash. I know I had a rental for sure because there was a note in the guest book dated 5/24. I am just waiting till the property manager sends out the "around the 5th" statement and bank deposit to see exactly what I took in for May.

    I have to much to do this afternoon to make a thorough check on my May budget. I will look at it either tonight or tomorrow and report back on what was left this month. I know my income was only about $6 more that I projected. My expenses are under but I am not sure by exactly how much...
     
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  3. KmmCo

    KmmCo Well-Known Member Trader Group

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    May = $138.24 under on the budgeted expenses. ( Had a few minutes to run this up because DH is doing a repair job on something in the garage and I was hiding in my office 'til he is done cursing at the object in question.:rolleyes: I think he is done now, so I am gonna go talk to him about dinner and then mow the lawn. That is my "entertainment" for the evening.)
     
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  4. KmmCo

    KmmCo Well-Known Member Trader Group

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    Picked up an extra shift at work this weekend. A friend was desperately needing a certain day off and couldn't find anyone else to work..... I figure the pay will make up for the fact that I am missing 4 Sundays this summer and missing out on my Sunday premiums (vacation/sick leave only pays base pay, no premiums). It will be an easy night as Saturdays are always pretty slow anyway....

    I have already picked up 2 other shifts later this summer too. Extra money is always good ... I can kick it into my retirement fund since I really don't need it in my budget.

    My condo didn't make much money in May ($44) because I had the annual spring deep cleaning to cover. I am booked 17 days in June though so that should give me a good profit. Right now all the rent money is being held for improvements. I still have not got an estimate from a guy I had over a couple of weeks ago to look at the fireplace. We did finally find a microwave that will work and will get it installed next time we go up.... I am waiting till fall to buy the replacement stove.
     
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  5. KmmCo

    KmmCo Well-Known Member Trader Group

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    June budget pretty wiped out except for the gasoline category. I already have both vehicles filled up, so I should have money left over there. I know that I already ran my restaurant budget out and only have $14 left in the food category..... The last 5 days of the month will be a bit of creative pantry cooking.

    KS house only needs one more trip down to finish it up. The real estate sign is already in the yard. Listing it at about $15K over what I was really expecting to get and see if we get an offer in that ballpark before school starts! The big selling point of the house is that it is in a highly desirable school district that has no affordable homes for sale. Hoping a family snaps it up before a house flipper swoops in - either way though it will be good to get it out of my hands.....
     
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  6. KmmCo

    KmmCo Well-Known Member Trader Group

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    June budget totals are in. $48.13 to the good. I went over in the food category after a trip to the store on Thursday. but I was under in the transportation and misc. lifestyle spending enough to make up for it.

    Extra income came out to plus $119.37.

    I did have to hit up my savings for the stuff for the KS house in order to get it ready to sell. (Trash hauling $350, moving furniture $300, tow for car that I am keeping $80, lawn care $210 so far.). I have one more item left, which is septic pump out for $300 or so. I will have to replenish the savings when I get the $$ from selling the house.
     
  7. KmmCo

    KmmCo Well-Known Member Trader Group

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    July thread is up!
     

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