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Old 01-24-2013, 10:00 AM   #196
Cinderelly5507
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Originally Posted by minnie1928

When I did our modified DR plan several years ago, we only adjusted our 401k contributions down to the company match. In your husband's case...wow, 12% match is huge! I know you're trying to pay down your debt, but you're leaving a 100% return just sit on the table. I would reinstate at least part of his 401k contribution to help minimize lost contributions from his employer.
This is my hubby's thought too. Maybe we should put it to 6%? I just don't know. Honestly, I was only going to leave it at 0% for a couple paychecks then reinstate at 12%. It's too much $ to pass on! We just got the first paycheck without the contribution. Maybe we'll put the next one or two at 6% and then back to 12%. I'm so confused as to what to do! Lol thank you for the advice! It always helps to hear from others.
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Old 01-24-2013, 10:39 AM   #197
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This is my hubby's thought too. Maybe we should put it to 6%? I just don't know. Honestly, I was only going to leave it at 0% for a couple paychecks then reinstate at 12%. It's too much $ to pass on! We just got the first paycheck without the contribution. Maybe we'll put the next one or two at 6% and then back to 12%. I'm so confused as to what to do! Lol thank you for the advice! It always helps to hear from others.
If you don't have debt or 0% interest debt and can pay your bills I would definitely go back to the 12%...when you are my age (about double you) you will be very glad you did. We have always kept up the 401K and as you get older you will not regret that at all.

If you have some debt I guess I would go to the 6% but regardless...you need to be contributing to the 401K.

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Old 01-24-2013, 10:40 AM   #198
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Originally Posted by Cinderelly5507 View Post
This is my hubby's thought too. Maybe we should put it to 6%? I just don't know. Honestly, I was only going to leave it at 0% for a couple paychecks then reinstate at 12%. It's too much $ to pass on! We just got the first paycheck without the contribution. Maybe we'll put the next one or two at 6% and then back to 12%. I'm so confused as to what to do! Lol thank you for the advice! It always helps to hear from others.
I think you should look at the terms of your debt.

If you contribute $100 to 401K, you'll get $100 match. Assuming 8% annual return, in one year, you would have $216 on hand. 8% is a quite conservative number for last year at least.

How much would it cost you to carry $100 debt forward for one year? If $100 debt will grow to more than $216, then pay off the debt for sure. Otherwise, let your money grow in 401K and save from other aspects of your life.
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Old 01-24-2013, 11:04 AM   #199
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Great job on having that mortgage gone! & you are def doin the right things, also will send up some words for healing for your DH!
Thanks! All the accolades goes to him, he keeps me on the straight and narrow, except when I veer off that path. LOL

He started having the pain around 2000 and went to the doctor. They ran all sorts of tests on him and really didn't do anything. He got disgusted with them and wouldn't go back to any doctor because they didn't do him any good except give him pain meds and tell him to take off a week. Finally, 8 years later in 2008 he had enough of the pain and went to the doctor. They did an MRI and X-rays and showed him that his spinal cord was almost pinched in half! They told him that he would be in a wheelchair if something wasn't done about it. They did surgery and relieved some of his pain but the nerve damage is permanent. He keeps such a positive attitude about it. Never misses a day of work and never touches a pain pill. I don't know how he does it.

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That's good that you have 0% on these bills. That is saving you money right there. If you were looking to have the whole year to pay them off, then your looking at putting out $270 a month. That would pay everything off!
I'm actually hoping for about 6 or 7 months...if I can stand it. No Disney vacay for us this year.
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Old 01-24-2013, 11:04 AM   #200
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Be careful about not saving for retirement. Even DR says if you are going to be doing the snowball for more than a year, keep contributing SOMETHING to retirement. You can't finance retirement, and you can't count on the government or your kids.
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Old 01-24-2013, 11:29 AM   #201
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Thanks everyone. We are on a budget to have the CCs and medical bills paid in a year or less. The student loans are another issue that I will tackle after everything else. I'm going to text DH and tell him to put it back up. We can make it. In 40 years I'll be glad we did! Lol
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Old 01-24-2013, 11:39 AM   #202
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Just got a text from DH that 2 of our 4 CC's will be paid off by march 1 if all goes according to plan! And that is purely by sticking to a budget, not touching savings or our tax refund. We can all do this!
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Old 01-24-2013, 12:04 PM   #203
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Originally Posted by StitchesGr8Fan
Just got a text from DH that 2 of our 4 CC's will be paid off by march 1 if all goes according to plan! And that is purely by sticking to a budget, not touching savings or our tax refund. We can all do this!
Wahoooooo happy dance! Great job!
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Old 01-24-2013, 12:08 PM   #204
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Originally Posted by StitchesGr8Fan
Just got a text from DH that 2 of our 4 CC's will be paid off by march 1 if all goes according to plan! And that is purely by sticking to a budget, not touching savings or our tax refund. We can all do this!
Yay!!!!
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Old 01-24-2013, 06:04 PM   #205
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I just transferred $325 out of paypal (from selling on ebay) today. That $ will go directly on the CC. My goal was to make $200/month so I'm tickled pink that I have done better than that.
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Old 01-24-2013, 08:35 PM   #206
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Had to share some GOOD news (for once) hopefully. My insurance raised the copay on my two meds. I since have had my new dr. write new Rx (that not technically generic are generics lol). My total before increase was $80/ month then $140/month after increase. Now, both should be $20-40/month depending on how the insurance actually processes them. I'm not exactly sure yet. Either way, a good savings per month to put into my snowball.

My husband is also calling to cancel Comcast cable and phone. We've been unhappy with their shadiness anyways. We will keep them for Internet though. So, at least another $55/mo savings (even when I add in Netflix).

Our total savings should be at least $95-$115. And as per DR, DH dropped his 12% 401k contribution. It hurt him to do so because his company matches up to 12%. I reminded him that it was only temporary. I know Dave says to do it, but was it the right thing to drop it completely???

Goo luck everyone! I'm enjoying feeling in control of the finances and seeing a light at the end of (a long) tunnel. I hope to get my coupons and shopping list ready today to shop the Kroger Mega sale tomorrow!

ETA: Most of our cc and medical debts are 0% interest. They also have the smallest balances. Should I still follow DR's baby steps and pay them off even though they are interest free?
I'm just curious about your calculated prescription savings - are you actually switching medications? I may have misunderstood, but even if a doctor writes the generic name, if a drug only comes as brand name, that is what will be used to fill it and it will be at the brand name co-pay.

I agree with others about the 401K - 12% is a huge match. I guess you could mess with it a little and see how much it really affects his take home pay, since it is a pre-tax deduction. I would try to do at least 6% and more if you can tolerate it.

As for the DR snowball, for me it would depend on how much I owed on each one. If the bills are relatively small and you could pay them off in 1 or 2 months, I would be tempted just to get rid of them. I guess strictly speaking, you should arrange the debts by balance and go from there. OTOH, if you start going after your interest bearing debts and make minimum payments on the 0% debts, is it possible you would be able to pay them off in a reasonable time, even at minimum payments? I guess I didn't really answer your question! Sorry! In the past, every time I tried to set up a snowball, I always felt compelled to pay off a different debt first, for whatever reason.

Good luck!
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Old 01-24-2013, 08:45 PM   #207
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Hi! Thanks for answering. Yes, I am switching medicines. My insurance give you a recommended Rx to switch to, to save the money. I could also save a few more $ if I switched to mail order. I'm not sure I like that though just for a few $.
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Old 01-24-2013, 08:59 PM   #208
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Hi! Thanks for answering. Yes, I am switching medicines. My insurance give you a recommended Rx to switch to, to save the money. I could also save a few more $ if I switched to mail order. I'm not sure I like that though just for a few $.
That makes much more sense - hope the meds and the savings work out well for you!
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Old 01-24-2013, 09:12 PM   #209
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Originally Posted by minnie1928 View Post
When I did our modified DR plan several years ago, we only adjusted our 401k contributions down to the company match. In your husband's case...wow, 12% match is huge! I know you're trying to pay down your debt, but you're leaving a 100% return just sit on the table. I would reinstate at least part of his 401k contribution to help minimize lost contributions from his employer.
Completely agree. That is money you don't pay taxes on nor will it be taxable when you take it out many years down the road. Fully maxing my 401, roths, education iras, are not negoicable here. I would eat beans and cereal before I let away of this not get funded. ESPECIALLY a company match. That is money being thrown out the window......
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Old 01-24-2013, 09:23 PM   #210
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Completely agree. That is money you don't pay taxes on nor will it be taxable when you take it out many years down the road. Fully maxing my 401, roths, education iras, are not negoicable here. I would eat beans and cereal before I let away of this not get funded. ESPECIALLY a company match. That is money being thrown out the window......
I am playing around on Sure Payroll right now to see what type of % we should invest, while still having a snowball. We are definitely reinstating it, just not sure at what level yet.
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