October 2012 - Dave Ramsey support and accountability thread

Discussion in 'Finances' started by cody82414, Sep 28, 2012.

  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 snowball within 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. jenrose

    jenrose <b>Note to Self:</b> Strangling<br>Pǝople is BAD! Trader Group

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    I'm hoping I'll have lots of good things to report this month. :fingerscrossed:
     
  3. momof2inohio

    momof2inohio New Member

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    Well we lowered our cable/internet/phone bill. We got our Time Warner bill a week ago and it was 196.00!!! They raised their prices AGAIN and this time by $30.00 so DH had enough and switched to a different cable/internet provider. We got just the basics this time (basic cable and no DVR or even set top box and internet). We got rid of our home phone since we all have cell phones. So now our bill will be around 80.00 with tax for our cable and internet. We will be saving 116.00 a month.

    I am about half done with Christmas shopping.

    Going to have DH call Verizon this weekend and see if they can give us a better rate for our cell phone package.
     
  4. MoneySavinDiva

    MoneySavinDiva Well-Known Member Trader Group

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    I'll take part in this! We took FPU late this past spring and we were doing great on all the baby steps, and then we started spending money like it was water this summer, and now we're feeling the effects of that. Time to get serious again about completing these baby steps once and for all!

    Right now we're working on re-funding our EF....about halfway there. Then it's onto debt snowballing.

    We also have to save up for a few things at the same time. Christmas being my main priority. I'm making as many gifts as I can, but even then I don't have near enough set aside right now. Also at the top of the list are passports - hubs is taking me to Mexico for our 5 year anniversary this winter, so we need to get those passports - but they're expensive! So I need to save up for those VERY soon!

    Thanks for doing this Cody - I'm excited for the accountability!
     
  5. to1drland

    to1drland New Member Trader Group

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    October goals are-
    to get the rest of dh's CC outta the way
    Life insurance bumped up
     
  6. saving-n-va

    saving-n-va Well-Known Member Trader Group

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    We are just maintaining right now. All bills are current but we aren't paying much "extra" on anything right now. Had to put a $1200 purchase on the credit card this week. Hopefully we will be able to get that paid back off fairly quickly. We have been putting some into a "rainy day" fund in anticipation of the sequestration that may happen at the end of the year. Not sure if dh will be a part of it or not. Last hired, first fired right?

    So October goals:
    pay all bills on time
    set Christmas budget (cash only) and find ways to keep those costs down (dd and I are doing a lot of homemade gifts this year)
    put up (canning/dehydrating etc) food for winter to save money
    get firewood for winter (it has doubled in price this year!!)
    pray that dh's V.A. disability claim finally goes through

    I know.....very small goals but that's all I got this month.
     
  7. MoneySavinDiva

    MoneySavinDiva Well-Known Member Trader Group

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    Okay. I've set a goal to have three things done by 11/12/13...

    1) Fully fund Christmas 2012 in cash
    2) Finish cash funding for our trip to Mexico in February 2013 (hubs and I never got a real honeymoon, so we agreed when we got married that for our 5 year anniversary we'd do something. 5 years is August 2013. This trip is not at all a frugal expedenture, but we decided that with being small business owners and having 2 year old, it's best we go now instead of wait. Business is growing at an incredible rate for us and another baby is probably going to happen in 3-ish years - so we know if we put this trip off any longer, it simply won't happen. I have no guilt over the money being spent on this trip.)
    3) Completely pay off all debt except for house.

    Total, these three items equal under $15,000 - 90% of that number being debt. 75% of that debt being student loans. So to have that all paid in just over a year is a really audacious goal for us. A scary, audacious goal.

    So, I'm breaking it into smaller, monthly goals.

    My October 2012 goals are as follows (and I'll be using this thread to stay accountable! :wink7:)

    1) Get Christmas fund halfway funded. I already have approximately 20% of what I'll be needing in there.
    2) Cash flow passport expenses - we both have to apply for a new passport as neither of us has ever left the country. I have 0% set aside for this so far.
     
  8. jenrose

    jenrose <b>Note to Self:</b> Strangling<br>Pǝople is BAD! Trader Group

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    I like the way you have the big goal set then are working on mini goals to accomplish that. Great Job MSD.

    DH has set his 'target' for the amount he is hoping to bring in from Snowmobile parts this month. This is our big month for him selling stuff since there is a big expo that we have (gasp) 6 spots at this year. Then it gets all the locals into snowmobile mode so he then sells more parts after that as well.

    This is just his hobby and how he pays for his toys and such. But it also helps keep us comfortable with me only working part time. He has 4 sleds to sell but most of the $ actually comes in from selling lots of $5 parts and such. It's CRAZY!

    But by the end of the month I hope to have:
    HE Line of Credit payed off ($ on that is from DH finding so many Deals that were just Too good to pass up :rolleyes24:)
    Pay the $ to the guy DH just bought a 'LOT' of ATV parts from
    Pay DH's Gradma for the tractor she is selling us
    Have at least the baby EF funded again


    That seems like ALOT for one month so we will see if DH meets his target $ amount.

    We also will likely refinance the truck either the end of this month or next month. That was the plan when we bought it anyways.
     
  9. momof2inohio

    momof2inohio New Member

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    So I am pretty excited...once we have the motorcycle paid off we are going to be saving for.....some property!! We have always wanted to move to the country and have land. We want to save for the property and then build a house. DH and my Dad will be doing some of the work on the house.

    So my goal for this month is to put extra money towards the bike and as soon as that is finally paid off (will be a few more months) start putting that money plus extra into our savings for the land.
     
  10. Spanelli8706

    Spanelli8706 New Member Trader Group

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    Still here. Will update after paying bills tomorrow.
     
  11. jenrose

    jenrose <b>Note to Self:</b> Strangling<br>Pǝople is BAD! Trader Group

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    A friend of DH's came over Sunday night and bought some parts. He is getting lots of messages from people interested in other ATV parts on some of the forums. It's looking promising to have a good month here!
     
  12. Spanelli8706

    Spanelli8706 New Member Trader Group

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    Expanded Baby Steps:
    0.1 Commit to NEVER borrow $$$ EVER for ANYTHING other than possibly a house
    DONE
    0.2 Talk with spouse and get him/her on the same page as you concerning finances DONE
    0.3 Do a written budget Sort-of DONE (Could be tweaked, but it works for now)
    0.4 Temporarily stop all retirement contributions SKIP- DH's employer matches 3% so we're going to take advantage of free money!
    0.5 Get current on the basics (You MUST have Food, Utilities, Shelter, Basic Transportation) DONE
    0.6 Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months DONE (except the damn Bronco but his $ for that is not from our salary)
    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. DONE
    0.8 Get current on ALL bills. DONE
    1.0 Save $1000 in Baby Emergency Fund (EF) DONE
    1.1 Chop up CC's. (You have an EF now, no NEED to keep those CC's!!!) SKIP- we will keep CC's as I think they are good if used properly, like rewards
    1.2 Get Health Insurance NOW, especially if you have children. DONE
    1.3 Get Life Insurance NOW if you have debt/your family couldn't make it financially if you died. DONE
    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) DONE
    1.5 Consider raising insurance deductables to $500 or $1000 and dropping full coverage on paid for "bondo buggy" DONE
    1.6 Draw up a will. DONE
    1.7 Get Long-Term Disability Insurance. DONE
    2.0 Do debt snowball, paying all your debts from lowest BALANCE to highest. DONE
    2.1 You can take your first vacation since finding Dave if you can pay cash for it. (no using the EF!!!) DONE
    3.0 Save 3-6 months EXPENSES in EF (FFEF) ...Working on it...
    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
     
  13. Spanelli8706

    Spanelli8706 New Member Trader Group

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    Glad to see so many of you with plans and positive reports!! That's awesome!

    For October, we just did DH's birthday wkend at a resort in cash! We're going to the Fair on the discount day this weekend. I shopped for the two little cousins' birthdays from my stockpile of cheap gifts. We are going to FL for a wedding & Disney next week using rewards & cash. Otherwise, trying to eat from the freezer & pantry (less to move) and be frugal in our daily routines.

    Hurricane Isaac flooded our yard (not our house) and after having everything checked out over the last few weeks... we will need to replace a few power tools, our septic pump and our 2 AC units. Our ins decutible is $1000, which they are crediting us for "clean up related costs" and the insurance will cover the AC units and tools!!! Meaning, brand new AC systems for our house... meaning a high selling point when we put it on the market in a few months. Kinda good news.

    We met with a realtor who has said the housing market in our area is REALLY good. SHe believes she can sell our home in 30-60 days! Working on the project list she gave us to get it ready.
     
  14. MoneySavinDiva

    MoneySavinDiva Well-Known Member Trader Group

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    Added $66 to the passport fund today. Added to what was already in that account (I forgot I set money aside for this last month) That brings my percentage for that fund up to 60% :excited2:
     
  15. MoneySavinDiva

    MoneySavinDiva Well-Known Member Trader Group

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    My bad, I forgot I lumped together the passport fund with the remainder of paying for the trip - so I'm actually only 18% there....but I'm 60% done with passports :biggrin:
     
  16. cody82414

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

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    it's all good
     
  17. cody82414

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

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    tonight DH and I put together $400 in cash to pay to get my car shipped.
    Should be here at 6 a.m.
    I should be in deep REM sleep at that time.
     
  18. saving-n-va

    saving-n-va Well-Known Member Trader Group

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    We made it through September with only 1 thing breaking. I dropped my Ipad, but had the insurance, so now I have a new one and the new insurance on this one. So that helped our emergency funds since we didn't have a $3000+ repair for September (unlike the previous 4 months.....).

    We have been pricing wood for the fireplace, wow has it gone up this year. But its still cheaper than the power bill would be.

    Keep up the good work everyone!
     
  19. KmmCo

    KmmCo Well-Known Member Trader Group

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    Found where the new thread is thanks to spanelli. Anyway, I am hanging in there. 1st of month bills paid up to date till the next ones come out of mid-month check.

    No real progress on the debt to speak of, but I did work enough OT last 2 weeks to pay for my son's ski pass in cash. I will be saving for mine over the next couple of weeks too ... I feel a little guilty over spending so much ($900 +) but on the other hand skiing it kinda on the priority list around here and I really comes out cheaper to buy season pass than to try and pay as we go.

    Scheduled overtime is kind slim for October, but I keep my ears open for opportunities to work unscheduled after my regular shift. I will be picking up a lot of OT in Nov and Dec over the holidays. Bonus money coming in Jan will pay for our airfare/car rental for Spring Break vacation and since we are skiing with season pass and doing timeshare exchange there really aren't any other costs to go with that.

    I am still not happy with the EF only sitting at $150 - but I want to make sure I keep up with what we are spending in cash and not whipping out credit cards for any of the daily living expenses.
     
  20. saving-n-va

    saving-n-va Well-Known Member Trader Group

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    Well, one "goal" accomplished. Our Christmas budget has been decided. $600. That's for 7 people, my class gift (it will be small), cards, a few small gifts for some folks. Its going to be a lot of homemade goodies this year.
     

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