Debt Dumpers - 2014

[dayvewc]

Just an idea, but it's something that helped a friend in a similar situation; What if you gave him $30 in cash and a $20 gas card? She was getting gas cards at the grocery store because she got some sort of reward points for them and it was a reminder for him that this was gas money.

Hmmm, I may have to look into that. Thanks for the idea.

 

[BernardandMissBianca]

FSA - we have a debit card through Aetna. I love it! We put in $100 a paycheck, although the total amount for the year is available now. It is really handy.

52 week challenge- I did this last year and it worked out nicely. One tip though, I reversed the order. It was easier to budget the lower dollar amounts during the holidays and I was able to let the bigger amounts collect interest in the savings account.

My washer update - DH and I did some research last night and found a replacement pump for $40.00. It should be here Saturday. They have a 100% money back guarantee so if it doesn't fix the problem, I can return it. Keep your fingers crossed that it works!!

Debt dumping - We brought the RV up from the campground we keep it at. It will go into a winter storage place down the road. Rent at the campsite was $750 a month, storage is $141 a month and it's inside. We had the RV at the park because it cut 30 minutes off of DH's 2.5 hour commute but we just weren't using it enough to be worth the cost. We will move it back for summer.

 

[Doodlebug939]

I am back in the game again this year. But I can honestly say that last year we did really make some true progress. Having this forum really helped me to stay motivated. If I was down it was nice to see someone else have some success and remind me of what I needed to do to get back on track. And when I paid off a $100 debt no one in my family got excited but the people on here were able to share in my joy.

So it works people!

This past fall I started working part time which will bring in an additional $500 per month. The last few months I thought of it a money to spend and yay we had something in the bank. But now that has worn off and I am reminded to the money needs to be 100% put to bills. And so I believe little by little I can make a good bit of progress and keep us from using the credit cards.

 

[ktdid23]

We moved to cash only in hopes of being more mindful of our spending, and so far, so good. It's only day two... I realize this.... But I'm feeling good!

 

[SpaceGirl]

A little behind the ball here, but I'd like to join!
I'm a young professional with a brand new job, college debt and a future to plan for. I'm looking forward to the guidance, wisdom and community here!

May I call you Amelia

The best advise I can give you is...See if your company offers a matching 401 plan where they will match up to a certain amount that you contribute for your retirement. Max the matching amount out, adding more with each pay increase. If you have the opportunity start a Roth IRA do so as soon as you can.

Pay off your Student Loans ASAP. They are one of the only debt that can't be charged off if you have to file bankruptcy. They are the only debt that the Government will actually garnish your Social Security Check for.

Take care of you Health (supplement with Calcium pills for your bones)
your Teeth ...
and your Skin.

Beckie

 

[Sew into Disney]

Is there any way on YNAB to "earmark" money in a savings account. For example, we have a vacation club account and part of the money in there is for vacation 1, and part is for vacation 2. My version of the 52 weeks saving plan goes towards vacation 2, and I want to know how much I have towards each one. Should I just keep an excel spreadsheet?

I will try to explain this and hopefully won't confuse you. I have been using Quicken for over a year. In October I received more on my paycheck than I was expecting ... so I paid my bills and took a little of the extra money and put it into what I like to call a "Mind Trick Savings" account. Under the planning section in Quicken you can create savings goals. The idea is that you transfer the money from your bank account to this savings goal but the money never actually leaves your bank account. Hence why I call it a "Mind Trick". The money looks like it is gone in Quicken so I always assume I have less to spend.

I started using YNAB this week and wanted to keep my "Mind Trick Savings" account on there. So under the "Budget Accounts" I put in that account and for the starting amount I put what I had "saved" in Quicken. On Monday I was given $40 that I was not expecting. I came home and put that $40 right into the "Mind Trick Savings" on YNAB. Then when YNAB asked me to give the money a job I put it in my vacation slot. I still technically have the cash in my wallet but it will go into a special box I keep hidden in the house.

I know it sounds kind of silly to keep the money in my bank account or in a secret box in the house. I do it just in case I need money right away. It does take discipline to not spend the money.

For my true savings account I put that in the Off Budget Section of YNAB. I have no idea if I should of done it that way but that's what I did.

Maybe you can create something like this in YNAB for yourself. You can create a Vacation 1 and a Vacation 2 category in the budget.

 

[Eureka]

I will try to explain this and hopefully won't confuse you. I have been using Quicken for over a year. In October I received more on my paycheck than I was expecting ... so I paid my bills and took a little of the extra money and put it into what I like to call a "Mind Trick Savings" account. Under the planning section in Quicken you can create savings goals. The idea is that you transfer the money from your bank account to this savings goal but the money never actually leaves your bank account. Hence why I call it a "Mind Trick". The money looks like it is gone in Quicken so I always assume I have less to spend.

I started using YNAB this week and wanted to keep my "Mind Trick Savings" account on there. So under the "Budget Accounts" I put in that account and for the starting amount I put what I had "saved" in Quicken. On Monday I was given $40 that I was not expecting. I came home and put that $40 right into the "Mind Trick Savings" on YNAB. Then when YNAB asked me to give the money a job I put it in my vacation slot. I still technically have the cash in my wallet but it will go into a special box I keep hidden in the house.

I know it sounds kind of silly to keep the money in my bank account or in a secret box in the house. I do it just in case I need money right away. It does take discipline to not spend the money.

For my true savings account I put that in the Off Budget Section of YNAB. I have no idea if I should of done it that way but that's what I did.

Maybe you can create something like this in YNAB for yourself. You can create a Vacation 1 and a Vacation 2 category in the budget.

We do your mind trick thing in quicken without even using the planning tools. We use the checking registers to keep track of what goes in and out. At the top, we have entries that say "camp/sports/etc", "home repairs", etc. and add money to those lines every month. It's still in checking but not in our active balance. There have been a few times that we have "borrowed" from them, but it really keeps us from going overboard on our spending.

 

[PaulaSue]

Wanting to stick my toe in. I am so overwhelmed with trying to make a budget and stick to it. I'm trying to talk dh into doing envelopes and cut out the CCs (we pay off every month but for a furniture one with no interest for 5 years).

I talk to Dh about trying to plan and budget and he shuts down and wont talk to me about it. (I am dying to get him to cut down on the cable bill which we have all the HBO/SHO/ MAX plus we have Netflicks and also AMZN Prime but I use it for a lot of regular household shopping.)

I pay the bills and he hands over his paycheck. Nice but I don't really know what I am doing for planning for our future. He shops less than I do but buys big things and he has no clue what we have in the bank/retirement etc...

I really like reading the posts and it motivates me. My Goals for this year are to pay off the furniture early (not sure if should bother with it being no interest), my car 4 1/2 years bought used at wholesale since DH is in the business and I want to get serious about our savings and also plan for our 20th anniversary trip in 2016. I want to go to the lib and get Dave Ramsay's Fin Peace and prob buy it if I like it or I will find another budget system. I need something to start 2014 on the right foot.

 

[gracie1]

Wanting to stick my toe in. I am so overwhelmed with trying to make a budget and stick to it. I'm trying to talk dh into doing envelopes and cut out the CCs (we pay off every month but for a furniture one with no interest for 5 years). I talk to Dh about trying to plan and budget and he shuts down and wont talk to me about it. (I am dying to get him to cut down on the cable bill which we have all the HBO/SHO/ MAX plus we have Netflicks and also AMZN Prime but I use it for a lot of regular household shopping.) I pay the bills and he hands over his paycheck. Nice but I don't really know what I am doing for planning for our future. He shops less than I do but buys big things and he has no clue what we have in the bank/retirement etc... I really like reading the posts and it motivates me. My Goals for this year are to pay off the furniture early (not sure if should bother with it being no interest), my car 4 1/2 years bought used at wholesale since DH is in the business and I want to get serious about our savings and also plan for our 20th anniversary trip in 2016. I want to go to the lib and get Dave Ramsay's Fin Peace and prob buy it if I like it or I will find another budget system. I need something to start 2014 on the right foot.

Welcome!! Since your furniture is interest free, I would focus on the car first.
Where are you planning your anniversary?

 

[gracie1]

I am back in the game again this year. But I can honestly say that last year we did really make some true progress. Having this forum really helped me to stay motivated. If I was down it was nice to see someone else have some success and remind me of what I needed to do to get back on track. And when I paid off a $100 debt no one in my family got excited but the people on here were able to share in my joy. So it works people! This past fall I started working part time which will bring in an additional $500 per month. The last few months I thought of it a money to spend and yay we had something in the bank. But now that has worn off and I am reminded to the money needs to be 100% put to bills. And so I believe little by little I can make a good bit of progress and keep us from using the credit cards.

Hi Doodlebug!! So glad you've joined this thread!!

 

[gracie1]

So, another unexpected bill came in today - a trip to the vet. Gotta love the fur babies!

 

[GirlWhoWaited]

May I call you Amelia

The best advise I can give you is...See if your company offers a matching 401 plan where they will match up to a certain amount that you contribute for your retirement. Max the matching amount out, adding more with each pay increase. If you have the opportunity start a Roth IRA do so as soon as you can.

Pay off your Student Loans ASAP. They are one of the only debt that can't be charged off if you have to file bankruptcy. They are the only debt that the Government will actually garnish your Social Security Check for.

Take care of you Health (supplement with Calcium pills for your bones)
your Teeth ...
and your Skin.

Beckie

Thank you for such lovely advice! The company I work for does not offer a 401k plan yet, I'd like to bring a little reform eventually...

I have already got auto deductions going into my Roth, and also have a traditional IRA from a rollover from a past employer.

 

[SpaceGirl]

Wanting to stick my toe in. I am so overwhelmed with trying to make a budget and stick to it. I'm trying to talk dh into doing envelopes and cut out the CCs (we pay off every month but for a furniture one with no interest for 5 years).

I talk to Dh about trying to plan and budget and he shuts down and wont talk to me about it. (I am dying to get him to cut down on the cable bill which we have all the HBO/SHO/ MAX plus we have Netflicks and also AMZN Prime but I use it for a lot of regular household shopping.)

I pay the bills and he hands over his paycheck. Nice but I don't really know what I am doing for planning for our future. He shops less than I do but buys big things and he has no clue what we have in the bank/retirement etc...

I really like reading the posts and it motivates me. My Goals for this year are to pay off the furniture early (not sure if should bother with it being no interest), my car 4 1/2 years bought used at wholesale since DH is in the business and I want to get serious about our savings and also plan for our 20th anniversary trip in 2016. I want to go to the lib and get Dave Ramsay's Fin Peace and prob buy it if I like it or I will find another budget system. I need something to start 2014 on the right foot.

PaulaSue

Your instincts are right money and debt issues cause too much unnecessary strife between couples. Relationships are hard enough without money issues, an unmotivated partner on top and you will be left with a bitter taste in your mouth.

When you take care of all the money, bills and decisions on your own, you end up feeling frustrated. Your husband makes it seem that he doesn't care. When you believe your partner doesn’t care about your financial success as a couple, you might end up resenting your partner.

It doesn’t have to be 50/50. But you both must care, you prove you care with actions. Both partners should/must be involved.

Money management requires lots of talking together and decision-making. Your financial success as a couple depends on working together as a team. Teamwork also includes taking advantage of your strengths and weaknesses. If one of you is better at the math and details of the monthly budget and the other is better at casting the long-term vision and direction for your family that's great! Recognize your differences and take advantage of them.

Your husband might not realize that you want his involvement. From his point of view it might appear that you are taking care of it, don’t need or want their help, don’t care about his opinion and are happy to do the budget on your own.

Simply telling your husband that you value his opinion could be enough to get him involved. Everyone wants to feel important, valued, wanted and needed. Especially when it comes to our thoughts and opinions. Tell your husband that you need his help and that you think his involvement is the missing ingredient for financial success. Let him know that his involvement is crucial.

I read once that credit cards, auto loans and student loans are listed most when it comes to personal debt. It also said that people should concentrate on debt with the highest interest rates or any debt were the rates could change drastically with little warning, so what rate would the 0% card revert to if for some reason it wasn't paid-in-full before the offer ended.

In order to reach your goals you may say that you will be cutting all household expenses (cable) until you reach the goals for your family, and working together on any new purchases so you don't add any new debt.

Good Luck

 

[SpaceGirl]

Thank you for such lovely advice! The company I work for does not offer a 401k plan yet, I'd like to bring a little reform eventually...

I have already got auto deductions going into my Roth, and also have a traditional IRA from a rollover from a past employer.

Good, you are off to a great start.

 

[SpaceGirl]

So, another unexpected bill came in today - a trip to the vet. Gotta love the fur babies!

It just goes to show there's always something... Take care of those fur babies.

 

[danielle79]

Today was the first payday of the year. I was so excited to put numbers in YNAB this morning I'm excited for a fresh start! This is the year!

DH and I need to get some life insurance on us. We both turn 30 this year. Any recommendations on type we should get or companies? I'm clueless. I had started a small Gerber policy on DS (17 months) when he was born last year but realized it was not necessary so I won't be wasting money on that one anymore. I'd rather put money away for college for him.

We also need to go see a lawyer this year and get a will in writing, which I don't think is too much $$.

Also have plans to FINALLY start a Roth IRA.

We signed up for the FSA with our health insurance this year. We decided on an amount to cover our deductible, some co-pays for the number appointments we know we need this year, my maintenance prescription every 3 weeks, and our dental deductible. Should I include those in my monthly budget since we have to pay for them before getting reimbursed? I've heard of people having a debit card that you could use but I'm not sure if/how we could get one.

I'm doing a version of the 52 weeks savings plan. I'm putting away $55/pay (x 26 paydays = 1430 total) which will give us the $1300 we need for our APs for our trip to Disney in December

Great decision on the life insurance! I have had SBLI for quite a few years but I changed it a little when I turned 30, had a physical and pay $201 a year for $250,000 worth of coverage. If you are healthy, not overweight, non-smoker you should get a great rate!
I am doing my own 50 week savings plan for Christmas, $30 every week into a seperate account and then two weeks before Christmas $1500!!!!

 

[dayvewc]

Wanting to stick my toe in. I am so overwhelmed with trying to make a budget and stick to it. I'm trying to talk dh into doing envelopes and cut out the CCs (we pay off every month but for a furniture one with no interest for 5 years).

I talk to Dh about trying to plan and budget and he shuts down and wont talk to me about it. (I am dying to get him to cut down on the cable bill which we have all the HBO/SHO/ MAX plus we have Netflicks and also AMZN Prime but I use it for a lot of regular household shopping.)

I pay the bills and he hands over his paycheck. Nice but I don't really know what I am doing for planning for our future. He shops less than I do but buys big things and he has no clue what we have in the bank/retirement etc...

I really like reading the posts and it motivates me. My Goals for this year are to pay off the furniture early (not sure if should bother with it being no interest), my car 4 1/2 years bought used at wholesale since DH is in the business and I want to get serious about our savings and also plan for our 20th anniversary trip in 2016. I want to go to the lib and get Dave Ramsay's Fin Peace and prob buy it if I like it or I will find another budget system. I need something to start 2014 on the right foot.

Welcome!! Since your furniture is interest free, I would focus on the car first.
Where are you planning your anniversary?

I agree with Gracie1. Focus on the car first, just keep making payments on the furniture so it doesn't default.

Otherwise, it actually sounds like you know what you want, you just aren't sure what path to follow to get there. ("I want to get serious about our savings and also plan for out 20th anniversary trip").

I'd recommend doing what you've suggested - Check out Dave Ramsay's books, and maybe some others, and determine what a "good" savings amount is for you and your family. Then decide how to get there.

You can do it. I have faith in you, and I bet everyone on this thread does too!!

 

[danielle79]

I know this is a debt dumping group, but does anyone have other New Years resolutions that they want to share?
I am 1. Dump at least $12,000 in 2014
2. Lose 15-20 pounds by exercising more and eating healthier
3. If I have nothing nice to say, say nothing at all!
I'm hoping getting myself focused on these will help in other aspects of my life like family relationships and work!
By the way I am going to Disney at the end of the month, YAY!!!!!

 

[dayvewc]

I know this is a debt dumping group, but does anyone have other New Years resolutions that they want to share?
I am 1. Dump at least $12,000 in 2014
2. Lose 15-20 pounds by exercising more and eating healthier
3. If I have nothing nice to say, say nothing at all!
I'm hoping getting myself focused on these will help in other aspects of my life like family relationships and work!
By the way I am going to Disney at the end of the month, YAY!!!!!

I'll jump in.
My goals are:
1) Eliminate my CC debt (about $7000)
1a) Or reduce it by more than half (at least $4000)
2) Pay on the principle (or is it principal? I can never remember) of my mortgages so that this year is equivalent to 2+ years payments. (Moving them from 29.5 years, 8.5 years, and 9.75 years to 27 years, 6 years, and 7.5 years)
3) Avoid arguments on Facebook - really, it just raises my blood pressure and doesn't convince anyone anyway.
4) Restart contributing to my Roth IRA
5) Restart my stock purchases
6) Create a savings balance of at least 2 months salary (after taxes)
7) Stop smoking (which will go a LONG way to helping with the finances above )
8) Get Lilo's autograph

 

[MillauFr]

7) Stop smoking (which will go a LONG way to helping with the finances above )

Good luck on #7. I hope you succeed. One of the hardest things you will probably ever do but well worth it.