Debt Dumpers - 2014

[pigletto]

No problem, glad I could help! I had quite a few Duh moments as I worked through learning YNAB before the lightbulb finally went off and I got it.

I'm in the midst of a few Duh moments myself. I am still using the trial software. It all made sense until I went and added credit cards and made transfers into savings. Now it's a hot mess and I don't get it at all. It's also just confusing enough that I don't even know how to even formulate the questions I need to ask. It's not the software.. it's me. But darned if I can figure it out. I actually erased everything but the month of April this morning to try and start from scratch.

 

[pryncess527]

I just have to laugh because this is how life always is. Couple weeks ago we paid off the credit card. Sunday night the dryer's heating element died.

Today the repair guy came, said are you sure you want to do this because it's $120 to check it out, plus $110 labor on top of it and that doesn't include parts, so you're already at $300 on a 12 year old dryer. I didn't know about the labor charge…the company we used before took it out of the diagnostic fee. But glad he told me up front.

He was really nice and said "you think about it and I can tell them you cancelled once I got here" and then told me he hates doing work on things that are older because it's money down the drain. So, guess what we're doing tomorrow night after work….going to buy a dryer.

(And it'll have to go on the credit card bc we just drained the savings account to pay off the credit card…sigh).

If you are even a LITTLE bit handy, you might try this repair yourself. I managed to replace the heating element on my dryer for about $25

 

[pryncess527]

I'm in the midst of a few Duh moments myself. I am still using the trial software. It all made sense until I went and added credit cards and made transfers into savings. Now it's a hot mess and I don't get it at all. It's also just confusing enough that I don't even know how to even formulate the questions I need to ask. It's not the software.. it's me. But darned if I can figure it out. I actually erased everything but the month of April this morning to try and start from scratch.

If you haven't already, spend some time reading the YNAB forums. If you read enough posts you'll find someone who had a similar problem and it may make sense. Or you can ask and people will ask you questions and sort out what you need to know.

Credit cards can get complicated if you have a card with a balance that you are also using for on-budget expenses. We just avoided that complication by not using the 1 cc we had with a balance until it was paid off.
Are your savings on-budget or off?

 

[Eureka]

If you are even a LITTLE bit handy, you might try this repair yourself. I managed to replace the heating element on my dryer for about $25

Unfortunately, neither of us is very handy in an electrical kind of way. And I say it's the heating element because it will tumble but there's no heat, but we're not even officially sure that's the problem.

 

[pryncess527]

Unfortunately, neither of us is very handy in an electrical kind of way. And I say it's the heating element because it will tumble but there's no heat, but we're not even officially sure that's the problem.

Yeah, that does sound like the heating element. See if these steps look too intimidating to you: http://www.wikihow.com/Change-the-Heating-Element-in-a-Dryer

it really wasn't bad at all Well worth getting a few more years out of my dryer.

 

[abcboys]

I repaired our dryer with the help of my dad several years ago. And I am not very handy at all. Wouldn't have the slightest idea how to change car oil or change a tire. I researched the problem online and ordered a part and my dad helped me change it out with the help of online directions. Sure, it probably took us 4 times as long as someone else but we did it! I haven't been able to figure out repairs on the washing machine and dishwasher and did have to call repair man on those. May be worth a shot?

 

[gracie1]

Must be dryer death month. We had to go purchase a new one on Saturday. Our neighbor had to buy one the week before.

It's always something.

Good news though. Only 1 more student loan payment, and I'm done!!

That is awesome news on your student loan

 

[pigletto]

If you haven't already, spend some time reading the YNAB forums. If you read enough posts you'll find someone who had a similar problem and it may make sense. Or you can ask and people will ask you questions and sort out what you need to know.

Credit cards can get complicated if you have a card with a balance that you are also using for on-budget expenses. We just avoided that complication by not using the 1 cc we had with a balance until it was paid off.
Are your savings on-budget or off?

Thank you. I did watch some videos and read through the forums quite a bit today and things are making more sense. We have one credit card that we are paying off and cancelling. The other we use all the time to pay bills and everyday purchasing to get the points. I took the credit cards off budget. I just make an outflow in whatever category (like hydro bill for example) and then pay that amount immediately to the card and make the payment with the card.

Savings I ended up leaving on budget. That's where all of the budgeted "Rainy Day" outflows go like car maintenance and vacation savings. I like being able to see those totals on budget.

It was a little confusing but I think it works now. There is certainly a learning curve!

 

[SirDuff]

Thank you. I did watch some videos and read through the forums quite a bit today and things are making more sense. We have one credit card that we are paying off and cancelling. The other we use all the time to pay bills and everyday purchasing to get the points. I took the credit cards off budget. I just make an outflow in whatever category (like hydro bill for example) and then pay that amount immediately to the card and make the payment with the card.

Savings I ended up leaving on budget. That's where all of the budgeted "Rainy Day" outflows go like car maintenance and vacation savings. I like being able to see those totals on budget.

It was a little confusing but I think it works now. There is certainly a learning curve!

Have you found the "transfer" option? Sorry if I'm stating the obvious, but I had issues with this at first. Anything I pay with my credit card (like hydro in your example - though, sadly, we cannot pay our hydro with credit cards) goes to a specific budget category. When money is moved from my chequing account to pay off the credit card, it is a "transfer" and doesn't show up in any line item in my budget.

I've been reading along but just joining in now. I'm also a huge YNAB fan!

 

[pigletto]

Have you found the "transfer" option? Sorry if I'm stating the obvious, but I had issues with this at first. Anything I pay with my credit card (like hydro in your example - though, sadly, we cannot pay our hydro with credit cards) goes to a specific budget category. When money is moved from my chequing account to pay off the credit card, it is a "transfer" and doesn't show up in any line item in my budget.

I've been reading along but just joining in now. I'm also a huge YNAB fan!

Thank you! That was another point that was confusing me. I made the transfers but didn't really understand how they affected the budget. It's coming together now.. slowly. Let's just say it's a very good thing I don't work in accounting or software

 

[desiree71081]

Just wanted to jump on board so that I could keep myself motivated to stick to the budget I planned. It's so easy to fall off the budget wagon.

A little background. I am 32, my husband is 35. I have two children from a previous marriage ages 8 and 9 and one child with my husband and he is 8 months. I have 3 step sons ages 10, 12 and 18. My 3 children are with us full time except during the summer when my two oldest go every other weekend with their dad. SS who is 18 is out doing his own thing and SS10 doesn't come over because of issues that have happened in the past. SS12 is with us every other week.

Groceries and the money spent on them can become unbearable. I have recently started couponing and am still learning.

I also set up a budget and if we stick to it, we will have $8000 in debt paid off by December!!!

I have already paid off 4 of the smaller bills in the last month.

Things are very tight right now just because I am doing everything I can to pay bills off. I am tired of living pay check to pay check and paying only minimum on everything.

 

[zy144622]

Just wanted to jump on board so that I could keep myself motivated to stick to the budget I planned. It's so easy to fall off the budget wagon. A little background. I am 32, my husband is 35. I have two children from a previous marriage ages 8 and 9 and one child with my husband and he is 8 months. I have 3 step sons ages 10, 12 and 18. My 3 children are with us full time except during the summer when my two oldest go every other weekend with their dad. SS who is 18 is out doing his own thing and SS10 doesn't come over because of issues that have happened in the past. SS12 is with us every other week. Groceries and the money spent on them can become unbearable. I have recently started couponing and am still learning. I also set up a budget and if we stick to it, we will have $8000 in debt paid off by December!!! I have already paid off 4 of the smaller bills in the last month. Things are very tight right now just because I am doing everything I can to pay bills off. I am tired of living pay check to pay check and paying only minimum on everything.

Congrats on your first steps in the right direction. No doubt it is hard at time but "just keep swimming"! March was my 1 year on a budget and things do get easier. Of course for me that just meant stepping up my game because it felt so good to look back on the year and see what we had paid off. Just be sure you set aside some fun money too. This way you don't get burnt out and splurge regretting it later. You can do it just keep your eye on the prize FREEDOM!

 

[desiree71081]

Just be sure you set aside some fun money too. This way you don't get burnt out and splurge regretting it later. You can do it just keep your eye on the prize FREEDOM!

Our fun money is being spent in September when we are going to Disney!!!! Can't wait!!!

 

[ceemys]

Welcome to our new "Budgetears"

We are still doing OK. The wedding and honeymoon payoff is coming along. All of our extra money is going into savings and then I am immediately paying it on something for the wedding. My only two costs I don't know about are the flowers (my bouquet, my daughters and petals for the youngest, then 3 boutonnieres) and the dress alterations.

Everything else is getting done and we see no problem getting it all paid off by July. I will be SO happy when it is all paid off. This is our last month in paying for two households, so starting next month we can put way more money on the wedding. Then we can come back and tackle Joe's car and then saving for my car that I will need in about 2 years.

 

[gracie1]

Just wanted to jump on board so that I could keep myself motivated to stick to the budget I planned. It's so easy to fall off the budget wagon.

A little background. I am 32, my husband is 35. I have two children from a previous marriage ages 8 and 9 and one child with my husband and he is 8 months. I have 3 step sons ages 10, 12 and 18. My 3 children are with us full time except during the summer when my two oldest go every other weekend with their dad. SS who is 18 is out doing his own thing and SS10 doesn't come over because of issues that have happened in the past. SS12 is with us every other week.

Groceries and the money spent on them can become unbearable. I have recently started couponing and am still learning.

I also set up a budget and if we stick to it, we will have $8000 in debt paid off by December!!!

I have already paid off 4 of the smaller bills in the last month.

Things are very tight right now just because I am doing everything I can to pay bills off. I am tired of living pay check to pay check and paying only minimum on everything.

Way to go!! Sounds like you are on the right path Welcome to the boards!!

 

[gracie1]

Welcome to our new "Budgetears"

We are still doing OK. The wedding and honeymoon payoff is coming along. All of our extra money is going into savings and then I am immediately paying it on something for the wedding. My only two costs I don't know about are the flowers (my bouquet, my daughters and petals for the youngest, then 3 boutonnieres) and the dress alterations.

Everything else is getting done and we see no problem getting it all paid off by July. I will be SO happy when it is all paid off. This is our last month in paying for two households, so starting next month we can put way more money on the wedding. Then we can come back and tackle Joe's car and then saving for my car that I will need in about 2 years.

That is fantastic!! You have done such a fantastic job!!! I hope you post pics!!!

 

[dmross]

I want a bumper sticker that says "This is the car I bought BEFORE I understood debt reduction and budgeting!" It can be next to the one that says "My dream car is a 2005 Camry."

Live and learn and start from where you are, I guess.

 

[SirDuff]

Thank you! That was another point that was confusing me. I made the transfers but didn't really understand how they affected the budget. It's coming together now.. slowly. Let's just say it's a very good thing I don't work in accounting or software

It can be confusing at the beginning. I love it because it is doing exactly what I was trying to make an EXCEL spreadsheet do for me (but I couldn't make it automatic and it drove me insane). You'll get the hang of it and adapt it to make it work for you. For example, I don't totally use this month's paycheques for next month's budget (like they tell you to do) - I think I could if I skipped some of my longterm saving line items (like for my TFSA, RRSP, or emergency fund), but this way works for me (since the money for these items is still sitting in my account, they provide a "cushion").

I'm lucky that I don't have much actual debt, but I realized that I really wasn't paying attention to my spending and that I should have been saving a lot more than I was - which drove me both to YNAB and this thread.


ETA - Sorry, I realized that that could have come across as rude (that you only have a problem with YNAB because you don't understand it). While I really like it and have suggested it to many people, it may not work for everyone. Nothing wrong with thinking that another system would work better for you.

 

[pigletto]

It can be confusing at the beginning. I love it because it is doing exactly what I was trying to make an EXCEL spreadsheet do for me (but I couldn't make it automatic and it drove me insane). You'll get the hang of it and adapt it to make it work for you. For example, I don't totally use this month's paycheques for next month's budget (like they tell you to do) - I think I could if I skipped some of my longterm saving line items (like for my TFSA, RRSP, or emergency fund), but this way works for me (since the money for these items is still sitting in my account, they provide a "cushion").

I'm lucky that I don't have much actual debt, but I realized that I really wasn't paying attention to my spending and that I should have been saving a lot more than I was - which drove me both to YNAB and this thread.


ETA - Sorry, I realized that that could have come across as rude (that you only have a problem with YNAB because you don't understand it). While I really like it and have suggested it to many people, it may not work for everyone. Nothing wrong with thinking that another system would work better for you.

Not rude at all!! I am loving so many aspects of it! It is exactly what I needed to see what was going out, where we could shave the budget and save. I was really struggling once I got fancy and added extra accounts and projected way ahead. I just needed to sit down and watch the videos and ask some questions and take my time. I too would recommend YNAB to anyone. I socked away WAY more than I thought I would and I have only been using it this month. The biggest shift was in my thinking. If items were planned for I didn't see that money sitting there and think "What can I spend this on?". It had a job and I didn't want to blow it on wasteful things, leaving me to wonder where it all went.
It might be a little overboard to call it life changing.. but it's shifted our thinking a great deal and we realized we could be diverting funds to much more useful places.

 

[writermommy6]

So we've been super tight in trying to keep paying on our debt AND do things like car repairs. It's been a long 5 years. But I recently got several new clients (I freelance) with ONGOING work! Now we can pay more on the debt AND start our house repairs that we are needing. Happy dance!