Debt Dumpers - 2014

[gracie1]

Ugh! Don't you hate that. Stuff happens though.

The good news is that laptops have dropped in price so much. When I think back to what we spent for our first one.

Isn't it crazy to think what we spent years ago?? I can't believe it

 

[SpaceGirl]

She gets compensation too and isn't doing it for charitable purposes.
Just saying...

True, True she is being compensation, but its out in the open she has a product she is selling and there is a price to be paid.

 

[LoveBWVVBR]

Most Financial Advisors advise an Emergency Fund of 6-8 months of your actual living expenses. Depending on your specific situation and whether or not you have children, carry substantial debt and types of insurance coverage will determine what amount is best for you.

It is best to plan for a worst-cast scenario so that the smaller emergencies such as replacing the hot water heater that just went out will be easily covered.

Each amount is different because of income levels, this money doesn't have to be in a typical Savings Account you just need to have access to it.

Most people just starting, should start with a savings account because it is simple to use and generally does not cost anything. The convenience factor is what is important when getting started. As your account grows you will want to find an account that can earn reasonable interest so that your money is working for you. The next best options to look into are money market accounts or certificate of deposits (CDs).

It is important to keep this emergency fund in a place that is fairly liquid so that you can get to the money quickly in the event of an emergency. You also don’t want to have this money tied into stocks or mutual funds because the volatility of the market could cause you to lose money.

You posted that In your mind it's never enough, Do you have your retirement fund fully funded? Do you carry credit card debt? Do you have savings for children's college funds? (if you have children) These other financial obligations are more important than saving money for future items like an automobile, because they are right now events not what if.

Yes, retirement is fully funded, has been since we were 20...those accounts make me happy lol. Kids' college is fully paid for with Florida Prepaid (we bought in 4 years of tuition, fees, dorm before the big price hike), AND we have 529's that should cover grad school. Pay the credit cards in full every month, so no cc debt. Just wondering when I can feel like I have "enough" in the emergency fund.

 

[SpaceGirl]

Yes, retirement is fully funded, has been since we were 20...those accounts make me happy lol. Kids' college is fully paid for with Florida Prepaid (we bought in 4 years of tuition, fees, dorm before the big price hike), AND we have 529's that should cover grad school. Pay the credit cards in full every month, so no cc debt. Just wondering when I can feel like I have "enough" in the emergency fund.

Well to me it sounds like you have done a great job financially.

Having previously paid a mortgage off you know that without the monthly payment that would drastically cut your monthly expenses, which would cut what you need to fund the emergency fund. So paying off the mortgage would in fact be the best Emergency Fund Ever... (How did that sound ? Think that new goal will help with your compulsion?)

If having a year's expenses in liquid assets (EF) is your goal then go for your Goal...it sounds like you have always had good instincts when it comes to financial matters so why start going against them now.

There doesn't have to be a either or plan, do what you feel is correct for you and your family. We'll be here to cheer you on...

 

[SpaceGirl]

So I mentioned the other day that I hadn't had any unexpected surprises. Well, the vet bill yesterday (which I estimated at $100) came in at a whopping $400

Gracie

Ouch!! How is your Fur Baby hope everything is all better now.

 

[fabulousfive]

Just wanted to day thank you for people mentioning YNAB. Just took an online class last night and started the free trial with their budgeting software. A few days go I never even heard of the site and now, I'm so excited about it! Thank you Dis friends for sharing resource ideas!

 

[Deffenm]

Deffenm

Have you sold that second refrigerator yet? That could help offset the unexpected car expenses a little. Hope the cost are on the lower end of the estimate.

Keep working toward your goals you will get there.

I got the fridge all cleaned out over the weekend (good scrub down so it looks almost new). I also cleaned out the garage so we can store it there until it sells. DH and the boys are going to try to get it up the stairs tonight and then I can list it. We think we can get between 150 - 200 for it. That would help out a lot. On a plus side I have stuck to my budget all month, including groceries which I always go over. I may actually be under this month. I know it is not much but every little bit helps. DH is being really good as far as sticking to my budget as well. We were supposed to have a lunch date last Friday but we ended up not going to try to save money. Instead we had a little date night at home once the kids went to bed.

 

[SpaceGirl]

I got the fridge all cleaned out over the weekend (good scrub down so it looks almost new). I also cleaned out the garage so we can store it there until it sells. DH and the boys are going to try to get it up the stairs tonight and then I can list it. We think we can get between 150 - 200 for it. That would help out a lot. On a plus side I have stuck to my budget all month, including groceries which I always go over. I may actually be under this month. I know it is not much but every little bit helps. DH is being really good as far as sticking to my budget as well. We were supposed to have a lunch date last Friday but we ended up not going to try to save money. Instead we had a little date night at home once the kids went to bed.

Deffenm

If it looks good ask for a higher price, you can always come down...You know $$$ or best offer, check in the paper and sites to see what used but good working fridges are going for now.

Your doing great on the monthly budget....

 

[LilSweetPeaPhoto]

I started reading the debt dumper thread in 2013 and got so many good ideas from it, that I'd like to take a more active role this year!! In the last 6 months I have paid off $11,000 in cc debt. We're about a third of the way there ... it's hard but so much more satisfying than I would have imagined! There is something very freeing about following a budget. There is no question about whether you can afford something or not, whether you should buy something or not. It's all down in black and white. And seeing the balances on my statements come down every month? Definitely cause for happy dancing! For the first time in our lives, my husband and I have a significant emergency fund and have saved enough to pay cash for our Disney vacation in August.
It's really amazing to me how easy it is to give up those things you thought you couldn't live without a short time ago!
Anyway, thanks for providing the encouragement and for listening to the rambling!!

You're debt sounds like mine ($29K in CC). So do tell, how have you been doing it. What things have you given up?

 

[gracie1]

Gracie

Ouch!! How is your Fur Baby hope everything is all better now.

I believe she is okay now. She better be because I can't afford another visit like that right now!!

 

[gracie1]

You're debt sounds like mine ($29K in CC). So do tell, how have you been doing it. What things have you given up?

Not to butt in - but one thing that helped me was giving up eating out every day. The coffee out in the morning and the lunches out. This was a huge help for me.

 

[LilSweetPeaPhoto]

Add me to the camp of uncertains w/ DR. Some of the things he says, were a lightbulb to me. Like DUH! Like others have said, his absolute extreme measures are NOT for us. We won't be moving, or selling cars, or eliminating everything, or getting 16 more jobs, LOL.

I saw on FB this weekend an older article from the fall about the price of Beanie Babies on eBay. Of course the article only listed the crazy asking prices, not the sold. But it prompted me to dig out the box of bears I have in the basement (part purging, part found money, right?). I researched the recent sold prices and started to list some of my 28. Well one sold last night for my BIN price of $50 WOOOO! That's $50 I didn't have before. I also got $70 for a dress of DD's I listed on a whim too.

I have a photography business on the side, which got hit REAL hard last year with legal fees (note to people, even if what you say online is 100% true, you can get hit with crazy legal fees defending yourself). So my savings from that account was wiped to 0! Luckily, I didn't have to dip into our family finances at all! I'm using some of this found money to give me back a slight buffer in that account.

However I can't help but think I should give back some of the money to help our family debt. I'm so torn. I buy the kids nicer clothes, then resell them (at or near cost) and use the resale money to keep the cycle going. So part of me wants to hang onto the money for that as summer will be coming around soon. I realize I could easily buy my kids Target clothes (and I do) or resale clothes (and I do that too), but when I spend $40 on a Matilda Jane dress and resell it for $40+ it's like free clothing rental, LOL. (FTR, I've been doing this with DD's clothes since she was 2. The market has gone down a bit, but overall I still come out each year likely spending less then if I bought "cheap" clothes).

Okay, I'm just rambling now.....Perhaps I do a 1/3rd thing. 1/3 to my business, 1/3 to the clothing budget and 1/3 to our debts?

 

[SpaceGirl]

Recently purchased the ynab from steam for 14.95. But can't figure out how to download this so I can start using. Anyone with any help would be much appreciated.

Tonydana

While I don't use YNAB I was tempted to purchase it when it went on sale, but I just don't need it now... I didn't want your question missed by the many members that do have it and all seem to love it after they get started. So can anyone help with this request?

Beckie

 

[fabulousfive]

Tonydana While I don't use YNAB I was tempted to purchase it when it went on sale, but I just don't need it now... I didn't want your question missed by the many members that do have it and all seem to love it after they get started. So can anyone help with this request? Beckie

I just downloaded YNAB last night. They sent me an email with a link for download. Once the download was complete, it prompted me to move the YNAB icon into my applications folder. This is all in my Mac. It took just a minute or two and seemed super easy. I even downloaded Dropbox so I could use the software from my mobile devices as well. I've discovered already how great their support team is too and how you can find instructions for most things on your site. Hope this helps you get started!

 

[SpaceGirl]

Add me to the camp of uncertains w/ DR. Some of the things he says, were a lightbulb to me. Like DUH! Like others have said, his absolute extreme measures are NOT for us. We won't be moving, or selling cars, or eliminating everything, or getting 16 more jobs, LOL.

I saw on FB this weekend an older article from the fall about the price of Beanie Babies on eBay. Of course the article only listed the crazy asking prices, not the sold. But it prompted me to dig out the box of bears I have in the basement (part purging, part found money, right?). I researched the recent sold prices and started to list some of my 28. Well one sold last night for my BIN price of $50 WOOOO! That's $50 I didn't have before. I also got $70 for a dress of DD's I listed on a whim too.

I have a photography business on the side, which got hit REAL hard last year with legal fees (note to people, even if what you say online is 100% true, you can get hit with crazy legal fees defending yourself). So my savings from that account was wiped to 0! Luckily, I didn't have to dip into our family finances at all! I'm using some of this found money to give me back a slight buffer in that account.

However I can't help but think I should give back some of the money to help our family debt. I'm so torn. I buy the kids nicer clothes, then resell them (at or near cost) and use the resale money to keep the cycle going. So part of me wants to hang onto the money for that as summer will be coming around soon. I realize I could easily buy my kids Target clothes (and I do) or resale clothes (and I do that too), but when I spend $40 on a Matilda Jane dress and resell it for $40+ it's like free clothing rental, LOL. (FTR, I've been doing this with DD's clothes since she was 2. The market has gone down a bit, but overall I still come out each year likely spending less then if I bought "cheap" clothes).

Okay, I'm just rambling now.....Perhaps I do a 1/3rd thing. 1/3 to my business, 1/3 to the clothing budget and 1/3 to our debts?

LilSweetPea

Great move on selling items on E-bay.

I agree on purchasing nicer clothing for children, (not all but most) I started this with my nephew and continued with my other nieces and nephews. My one sister had four boys and while she didn't sell them, all her boys always looked nice because the better cloths last forever, keep their color and shape, and she was able to pass them down to the younger boys.

The story behind your photography business sounds very interesting but please don't tell me I would hate for anyone to start more legal troubles.

 

[dayvewc]

I may have missed this, but a couple of people have talked about getting the YNAB from stream? What is "stream"?

 

[glaserjm]

I'm in! I'm really set on not using credit cards at all this year and dumping all CC debt. We don't have a ton, but I'd rather have none.

Unfortunately we have HUGE student loans (think monthly payment bigger than our mortgage) that I just don't see how we'll be able to pay off in the very near future, but once the CC debt is gone, we can just start throwing extra money at it each month. It would be better to have it done at least a bit early. As they are lower interest rates than the CCs I'd rather have those done first.

I'm very much trying to find a balance between continuing to live at a level where we can enjoy ourselves and not feel like we're always on the squeeze, but also where we can see light at the end of the debt tunnel!

 

[Stuarotra]

I may have missed this, but a couple of people have talked about getting the YNAB from stream? What is "stream"?

Steam is a website that sells software. I think I just looked up steam.com and it came up. They sell a bunch of games and stuff. I went to the little search box and typed in, you need a budget, and it showed up. I looked at the program and watched some tutorials and I really liked it. I think it's worth checking out.

 

[LilSweetPeaPhoto]

LilSweetPea

The story behind your photography business sounds very interesting but please don't tell me I would hate for anyone to start more legal troubles.

Yeah, can't say anything about it But it's sad to see how our legal system works in cases like this.

 

[SpaceGirl]

Unfortunately we have HUGE student loans (think monthly payment bigger than our mortgage) that I just don't see how we'll be able to pay off in the very near future, but once the CC debt is gone, we can just start throwing extra money at it each month. It would be better to have it done at least a bit early. As they are lower interest rates than the CCs I'd rather have those done first.

I'm very much trying to find a balance between continuing to live at a level where we can enjoy ourselves and not feel like we're always on the squeeze, but also where we can see light at the end of the debt tunnel!

Glaserjm

WELCOME

Sounds like you have a good plan in place, your student loan payments sound massive hopefully you have degrees that will help with the repayment.

As for balancing between one lifestyle and another remember this will be temporary. After you have changed some expensive habits you may prefer not to start them back when you have your budget back on track.

When I went on my moneysaving cut backs I'm not even sure my DH knew about half of them...he was helping with laundry one day and just started putting the cloths on hangers instead of transferring them to the dryer like he normally would, he had no idea why I had been hanging the cloths to dry. I just thanked him.