Debt Dumpers - 2013

[PrincessKymm]

I'm really struggling with my new budget. I start my new salary tomorrow so I need to get this done.

My main problem is I don't know what to attack first. Do I save? Do I tackle debt? I really need new clothes, a lot of mine are starting to fall apart and I keep mending them but some I just can't anymore. My son needs a new drum case and little stuff like that. Do I attack the little stuff first and then concentrate on the savings and debt?

My list is forever long and it makes me mad and it makes me sad. My new income will add about $800/month which is a lot. How do I balance this new income?

I'm overwhelmed please help!

 

[pryncess527]

I'm really struggling with my new budget. I start my new salary tomorrow so I need to get this done.

My main problem is I don't know what to attack first. Do I save? Do I tackle debt? I really need new clothes, a lot of mine are starting to fall apart and I keep mending them but some I just can't anymore. My son needs a new drum case and little stuff like that. Do I attack the little stuff first and then concentrate on the savings and debt?

My list is forever long and it makes me mad and it makes me sad. My new income will add about $800/month which is a lot. How do I balance this new income?

I'm overwhelmed please help!

I think there are several factors to consider.

Do you have ANY emergency fund? I personally put a very high priority on having at least $1000 in emergency money. It seems counter-intuitive to many to save money while you have debt, but for me having an emergency fund was a critical part of breaking our reliance on credit. It was important that we only saw our CC balance going down because we could rely on our emergency fund to handle things that would have otherwise had to go on the CC

If you have NO emergency fund, I'd put all extra money there until you have one built up.
If you have a modest emergency fund, then I'd set aside small amounts to save up for the known expenses coming -- clothes, drum case, etc, and put the rest towards debt.

And remember, there isn't really a wrong answer. As long as you are taking control and making decisions with your money instead of just kind of letting your spending be something that happens to you, you are already ahead of the game IMHO. Debt vs Savings isn't really a right or wrong, it's more about personal choice and what you are comfortable with. And if you choose savings, at least, you can always change your mind later and pay off some debt. (H and I made that decision with one of our savings categories just this weekend!).

It also doesn't have to be all or nothing. If you aren't sure what approach to take, maybe start out by dividing the money in thirds -- 1/3 savings, 1/3 debt, 1/3 stuff you need to buy soon. Don' feel like you have to make a decision now that won't ever change -- an important part of staying with a budget is the freedom to roll with the punches and make changes through the month as situations arise and your priorities shift. That's one thing I like about zero-based budgeting, it's okay to make changes because the system forces you to be thoughtful about where the money is going to come from.

 

[SpaceGirl]

I'm really struggling with my new budget. I start my new salary tomorrow so I need to get this done.

My main problem is I don't know what to attack first. Do I save? Do I tackle debt? I really need new clothes, a lot of mine are starting to fall apart and I keep mending them but some I just can't anymore. My son needs a new drum case and little stuff like that. Do I attack the little stuff first and then concentrate on the savings and debt?

My list is forever long and it makes me mad and it makes me sad. My new income will add about $800/month which is a lot. How do I balance this new income?

I'm overwhelmed please help!

PrincessKymm

Take a deep breath, you can do this you have been doing the budget for a while now. 1st you don't have the additional money yet so you have time to think about what your new goals should be. Like Princess527 said the decision isn't either or, it can be what you want.

Ericka is going back to work either today or tomorrow she hasn't had to worry about her clothing because she worked from home now she will be in a new office, so she took some money and spent it on herself. You should start replacing a few items at a time.

With your new raise can you up the amount you contribute to your 401K or retirement fund at work? (If you don't have that option start a ROTH account for retirement with a percentage of your total wage)

The small stuff will work out, once you have the money you will be able to see how much you actually have. Give it a few weeks then dive back in.

 

[SpaceGirl]

We finished the month strong! I managed to end the month with an extra $90 in our grocery budget, which was a huge personal victory for me. DH and I went through our September budget yesterday re-adjusting categories to match reality and we were able to make an extra $430 credit card payment! If we can have similar progress in October, our CC will be paid off well before the mental deadline I had set of December

Pryncess527

That grocery budget savings is huge, glad to see everything coming together and that your goals are being met.

That anniversary trip to Disney is getting closer to be a reality.

 

[Eureka]

PrincessKymm

Take a deep breath, you can do this you have been doing the budget for a while now. 1st you don't have the additional money yet so you have time to think about what your new goals should be. Like Princess527 said the decision isn't either or, it can be what you want.

Ericka is going back to work either today or tomorrow she hasn't had to worry about her clothing because she worked from home now she will be in a new office, so she took some money and spent it on herself. You should start replacing a few items at a time.

With your new raise can you up the amount you contribute to your 401K or retirement fund at work? (If you don't have that option start a ROTH account for retirement with a percentage of your total wage)

The small stuff will work out, once you have the money you will be able to see how much you actually have. Give it a few weeks then dive back in.

Yup, I start tomorrow. Had nothing really but t shirts and jeans, so put it on the ol' Discover card. But you know what? Once your new salary kicks in, you will have extra to put towards clothes, then move it over to other areas (savings, the rest of your debt, etc) once the clothes are paid for.

PS, I spell my name with a 'c' only...Erica...the "right" way, lol!

 

[SpaceGirl]

PS, I spell my name with a 'c' only...Erica...the "right" way, lol!

Erica

So sorry about spelling your name wrong, I have this thing about the spelling of my name Beckie anytime I see someone send me mail with Becky I know they don't know me.

Good Luck tomorrow.

 

[archdandy]

DH and I went for a walk last night with the dog and I think it was good because we talked about money and how we need to be on the same page with it and paying it off. He's all for not spending money, that's his usual mantra, but I feel like we need to be more active with our debt. I'm currently reading 'Debt Free Forever' by Gail Vaz-Oxlade. I'm only on chapter 3 but I'm hoping it can help us in the long run. Anybody else ever read anything by her?

 

[Dandylion]

Hello! This my first post on Disboards. I've been lurking on this thread on and off for the past year. I'm a SAHM of two boys, 8 and 2. I went to Disneyland once as a child, and we took our older son there when he was 5. The trip was not that great. I had the bright idea of bringing my MIL who drove me batty, and our son got sick the second day of our 3 day trip! I still enjoyed the magic of Disney, though, and wanted to take a longer, better trip in the future. Since our last trip, we've moved from California to Minnesota, so this time it will be Disney World. A few years back I got a Capital One card with the intent of using the miles for a Disney trip. We've got $1200 worth of travel money now. Anyhoo, now I'll get to the reason why I'm on the Debt Dumpers thread...

We bought our first home almost two years ago. In the process of moving here and doing some house renovations, we racked up 10k in CC bills. I used some savings to pay off a chunk of it. Then we had a horrible start to the year with many illnesses and medical bills. Those are paid off, and I also just paid off a $1500 CC. Now what remains is a $4500 Capital One bill. This should be paid off by the end of the year. We are going to try to pay 1k on it per pay period, but we'll see how that goes! We got scary news recently that one of DH's employers (he works two FT jobs as a web developer) is thinking of putting him on contract instead of salary. That would be quite bad for us, so now we are really pulling out all the stops to pay off our remaining credit card debt. We also have two car payments totaling $370, but car payments don't really bother me. We aren't debt-averse, it should just be for something reasonable. Assuming everything goes well with DH's job, I will be setting up savings accounts for retirement, college, and a miscellaneous fund. This is only recently possible for us, since DH was earning less than half of his current salary just two years ago. Oh yeah, DH is getting $8k for another website he's working on, and that will go in our emergency fund. We will also be spending around $10k for some kitchen and bath renovations in the spring. I'm going to be as frugal as possible, charge some of it, and pay it off ASAP.

Also, if things go well we will be heading to Disney in January 2015. It's way cheaper to go then (as everyone here knows, of course)! and it would make a great Christmas surprise for the kids After factoring our travel miles, I think it will cost us about $3500 for a 6 day trip. We will also spend a couple days in Ft Lauderdale visiting DH's dad. I had originally planned for our trip to be next summer, but it will be much better to wait until we are on secure financial ground. I also love the idea of getting away from our frigid Minneapolis winter for a week instead of sweltering in the Florida summer heat. I get too cranky in the heat. I guess that's enough rambling from me...good luck to all the debt dumpers. I like following everyone's progress!

 

[Eureka]

DH and I went for a walk last night with the dog and I think it was good because we talked about money and how we need to be on the same page with it and paying it off. He's all for not spending money, that's his usual mantra, but I feel like we need to be more active with our debt. I'm currently reading 'Debt Free Forever' by Gail Vaz-Oxlade. I'm only on chapter 3 but I'm hoping it can help us in the long run. Anybody else ever read anything by her?

I have that Gail book and I love it. I read her daily blog on her website, which has some interesting things (including recipes and books she's reading!) I think she has a very good, no-nonsense approach.

The link would be helpful, wouldn't it?! http://gailvazoxlade.com/

 

[SpaceGirl]

I'm currently reading 'Debt Free Forever' by Gail Vaz-Oxlade. I'm only on chapter 3 but I'm hoping it can help us in the long run. Anybody else ever read anything by her?

Haven't read any of her books but have watched her TV shows "Till Debt Do Us Part" on CNBC, she is straight forward and doesn't take well to excuses. Communication is key when trying to payoff debt so you and your husband are on the right track.

 

[SpaceGirl]

Also, if things go well we will be heading to Disney in January 2015. It's way cheaper to go then (as everyone here knows, of course)! and it would make a great Christmas surprise for the kids After factoring our travel miles, I think it will cost us about $3500 for a 6 day trip. We will also spend a couple days in Ft Lauderdale visiting DH's dad. I had originally planned for our trip to be next summer, but it will be much better to wait until we are on secure financial ground. I also love the idea of getting away from our frigid Minneapolis winter for a week instead of sweltering in the Florida summer heat. I get too cranky in the heat. I guess that's enough rambling from me...good luck to all the debt dumpers. I like following everyone's progress!

Dandylion

WELCOME TO THE THREAD AND THE DIS

It sounds like you have been working on that debt for awhile so good job. Keep in touch and let us know how you are doing, I so need to redo my kitchen but am waiting until next year to start.

Good Luck

 

[AJ1983]

Jumping on the train! Currently paying off student loan and student line of credit (making higher than minimum monthly payments, one will be gone by April 2015, the other approximately a year later)

Right now focusing on credit card debt, and loan from my parents, incurred from fencing in our massive yard for the new dogs.

So far since February of this year we have paid back the loan to parents ($5000) as well as paid about $4000 on the credit cards. I have also paid about $1000 on deposits for our wedding next year, and continue to pay $1000/month towards my student loans, and $1250 towards the credit cards, $200 of which is interest.

Might take us a while, but Rome wasn't built in a day, and we are following a Gail-type plan, so we are on the right track -Credit cards have been used only as convenience cards (ie money is in the bank account) since the beginning of this year.

 

[Deffenm]

DH and I finally had a real sit down talk over the weekend about our debt as well. I was the only one working on it and that doesn't work. I would try to save and he would spend. So now he is going to sit down with me at beginning on the month to set our monthly budget and then each week we will review our progress. I am really glad we sat down and made a plan together and I just have to make sure he sticks to it and we actually sit down once a week to review. It is hard with 3 kids, work, and after school activities but we need to make this a priority in our life.

 

[archdandy]

It can definitely be hard when life gets in the way! Sometimes I just get so worn down and I just want to go out and do something fun i.e. spend money! So I've been really working on that. Anybody have any tips on how to have fun without spending money?

DH and I finally had a real sit down talk over the weekend about our debt as well. I was the only one working on it and that doesn't work. I would try to save and he would spend. So now he is going to sit down with me at beginning on the month to set our monthly budget and then each week we will review our progress. I am really glad we sat down and made a plan together and I just have to make sure he sticks to it and we actually sit down once a week to review. It is hard with 3 kids, work, and after school activities but we need to make this a priority in our life.

 

[ceemys]

Will you be posting a homecoming pic? I'm sure it will be a magical night!

I can post one...it's a pain to post on here though. lol need to take the time to put on photobucket. She was beautiful and had an awesome time.

So we had an interesting week. We didn't pay anything off but we saved a ton of future money.
The DOT cut down a 100 year old maple tree in our front yard and DH, the kids, and I spent last weekend cutting it up. We figure at $180 for a cord of wood, we now have $1000 worth of wood in our back yard.
I will need to get 2 cords that is seasoned for this year, but we should be set for 4-5 years after that. We have one large tree in the back yard that we still need to cut down and that will be anther years worth of wood.

So every weekend it's nice, we will be out there cutting wood. Added bonus? If we are cutting wood, we aren't out spending money shopping!

Saving future money is a great way to go! All that firewood and free exercise!

Hey guys! Just wanted to join in for support and to give support. DH and I are working on paying off some major debt over the next couple of years. I just want it gone, I hate it hanging over our heads all the time. I'm sure you guys know the feeling Anyways, good luck to everyone!

This is a great bunch of people who have tons of advise.

I am new to this board, my husband and I are looking to cut our debt too. We have 2 children one in college and one in grade school. We are paying for as much of our sons college, he did get some scholarships. My husband makes a good living and my income is not that great. But he travels alot so I cant get another job or change jobs, my job is perfect for our schedule. We were doing very good until this year. Several things happened and now we have a lot of credit card debit.. no medical bills or student loans.. We seem to be stretched so thin lately... any help would be appreciated. He gets a bonus and we get a large tax return each year, which we will use to pay off the credit cards or most of them.. I just feel like Im drowning...

to you too. I agree with others, find out where your money is going first....While the kids are gone, sit down with your husband and just write down everything that has happened within the last 30 days. Put it into categories. From there you will see where your money goes. It's hard at first, but it can be done and YOU can do it!

 

[ceemys]

Trainsrus

In your post you said "We were doing very good until this year." So without knowing what the new expenses were...like is this ongoing or a one time thing that made you to have to start using the credit cards.

What you need is more money...either make more or spend less.
Having a monthly list of your expenses tells you what you have to have to make mortgage, auto, lights and water. It's the other expenses that can be redirected to help pay off debt. How much do you spend on food, eating out, cell phones, cable? By making a budget or writing down what you spend it will help you see where you can cut back.

You said you don't make much at your job but the hours are good for your schedule, you may have to change your schedule to bring more money in, with your husband traveling is there anyway to cut back on his expenses ?

You wont know until you write everything down and hopefully you can adjust some things to get rid of your debt.

I agree 100%

All right! I'm back & staying strong. I resisted temptation & I'm keeping focused.
I re read my list and once our debt is all gone, we'll be saving a lot more and trips will still be there. This isn't forever; just temporary!

Good for you for being strong! I knew you wouldn't cave.

I'm thinking with all the crap they teach in HS, budgeting & managing money should be one of the things. Most people learn how to manage money from their parents which doesn't necessarily make them good at it.

A lot is common sense but if it were so simple, why are so many people so bad at managing their money?

My daughter had a finance class in 8th grade. All I can say is PATHETIC! I have taught her more in the past 2 months with her own checking account than she learned all year. When I was in the military, we went through a mandatory finance class, didn't do a bit of good. Teachers can stand up in that class room and preach and preach. But unless it personally affects the student, they won't take head. It takes showing AND teaching.

We finished the month strong! I managed to end the month with an extra $90 in our grocery budget, which was a huge personal victory for me. DH and I went through our September budget yesterday re-adjusting categories to match reality and we were able to make an extra $430 credit card payment! If we can have similar progress in October, our CC will be paid off well before the mental deadline I had set of December

WOOHOO $90 extra is A LOT of extra. that's more than a whole week of groceries for us.


As for me, I created a payment plan with the school for my kids book fees. I will have it paid off before I move, but at least it isn't all at once in the one paycheck that gets everything taken out...rent, electric, insurance (car, health and life), cell phone and more. ugh.


Stay free and be debt free!

 

[BernardandMissBianca]

And cutting and stacking wood counts as EXERCISE too!! ......P

OMG I am sore in places that I didn't even know existed!
So, I've decided that even though they have destroyed 3 mail boxes in 3 years, I love the DOT!
They came by yesterday and ground the stump for the tree. That's another $500 I don't have to spend.
Today I started shoveling the mulch up. I'm spreading it out all over the wooded area that the end of the house. More free stuff!!! I love it!

 

[fun4me]

Only three months left in the year and I am pretty positive we are going to have the cc paid off. Yay!

We have one cc at 0% interest with 1800 on it and our auto loan at 7% with 3100 left. I'm hoping we will be able to knock the cc off this month and then hit the auto loan hard in Jan and knock it out by the end of Feb. We could probably get pretty close to getting the auto loan knocked out before the end of the year but with Christmas approaching I think we will wait until Jan.

It has been a year of ups and downs. Some months nothing extra went towards our debt and other months we were able to make great progress. I see the light at the end of the tunnel and so does dh and he is more determined now to get out of debt than he was at the first of the year.

Anyway we will keep plugging away. I am glad I was able to come here to read everyone's progress and help me stay motivated. Good luck to y'all.

 

[SpaceGirl]

It can definitely be hard when life gets in the way! Sometimes I just get so worn down and I just want to go out and do something fun i.e. spend money! So I've been really working on that. Anybody have any tips on how to have fun without spending money?

Don’t deprive yourself completely.

While you’re doing all these great, disciplined things with your money, don’t forget to let loose and have a little fun with it sometimes. Being too strict with your spending can lead to feelings of deprivation, which in turn can lead to spending binges. Starvation budgets are much like starvation diets. When you cheat, you tend to cheat big.

So be sure you budget FUN in your life, a movie, a trip to the zoo, whatever you enjoy as a family.

We are bombarded with new and better gadgets, toys, and opportunities for fun every day, all day. If we’re not careful, the seeds of discontent can take root and before we know it, we’re spending money on things to fill a need we didn’t even know we had.

Remember what your Mom told you-don’t pay attention to what everyone else is doing, just worry about yourself and your goals.

 

[gracie1]

Don’t deprive yourself completely.

While you’re doing all these great, disciplined things with your money, don’t forget to let loose and have a little fun with it sometimes. Being too strict with your spending can lead to feelings of deprivation, which in turn can lead to spending binges. Starvation budgets are much like starvation diets. When you cheat, you tend to cheat big.

So be sure you budget FUN in your life, a movie, a trip to the zoo, whatever you enjoy as a family.

We are bombarded with new and better gadgets, toys, and opportunities for fun every day, all day. If we’re not careful, the seeds of discontent can take root and before we know it, we’re spending money on things to fill a need we didn’t even know we had.

Remember what your Mom told you-don’t pay attention to what everyone else is doing, just worry about yourself and your goals.

Very well said You are all doing a fantastic job - and welcome newcomers! I haven't been on for a couple days (I think) - have been a little busy online Christmas shopping