Debt Dumpers - 2019

[jen7233]

On another thought with those unused or underspent budget categories, I like to have a little padding in my regular checking which can sort of be considered a mini emergency or extra fund so it doesn’t bother too much that I don’t have a name for every dollar as I figure unspent is saving in a sense, or money that can be allocated later on as a need or want comes up. I still have an allocated amount to savings at the beginning of the month, considering savings categories and Roth IRA that are factored in. Also, no matter what I’ve been as I mentioned going over in something, it’s never perfect category spending for me. I also tend to sometimes skip a monthly detailed budget because I hate getting into the weeds of things sometimes, but the months I do that I divide in three categories by savings, bills, living expenses. This year I’m trying to do a monthly detailed budget the whole year.

 

[barkley]

i'm still tweaking our 2019 budget but after reading all the posts i hope no one minds if i make a few suggestions that jump out to me-

1. remember the new federal tax laws may impact your budgeting. many people are going to see their prior write-offs and deductions either eliminated or capped which may result in higher tax liability (a.k.a.-lower net pay to budget with ). folks who used helo's to pay for personal expenses and other preexisting debt are going to have to take into consideration no longer being able to write that interest off as a deduction anymore. i've read many an article/listened to many a financial discussion wherein the 'experts' have a strong belief that the majority of americans didn't pay enough attention to the 2018 changes and make the appropriate adjustments to their withholding's such that they will be GREATLY upset when they go to do their tax returns in 2019 (either that 'big' refund they are expecting won't exist or they will have a large tax bill to be paid).

2. if you are doing the multiple credit card/0% for a set period of time method-

detail it in writing with an old school calendar somewhere accessible in case of emergency.

i'm saying this b/c if you are 'the' person in your life/household that pays the bills, should something happen where you are laid up for so much as a week and unable to keep to your well planned out payment schedule you may find that someone you entrust with paying your bills doesn't know how vital it is to make sure specific credit card payments are paid by specific dates so you recover to find that you've lost eligibility to those 0% offers and they've reverted to double digit interest rates (with late penalty fees to boot).

i know someone this happened to-the family member defaulted to making sure mortgage/utilities and other basic needs were paid during the person's hospitalization figuring if any credit cards were a bit late in being paid it was 'no big deal' in the grand scheme of what was happening (it WAS a big deal-thousands upon thousands of dollars in extra interest over the next couple of years).

 

[aleh021]

Love reading everyone's commitments and goals for 2019!
I am working on mine right now and reading these have been motivating!

Only one I know of for sure at this moment is my car loan being paid off in December 2019 - I will most definitely be doing a happy dance that month.

 

[DisneyMandC]

1. remember the new federal tax laws may impact your budgeting. many people are going to see their prior write-offs and deductions either eliminated or capped which may result in higher tax liability (a.k.a.-lower net pay to budget with ). folks who used helo's to pay for personal expenses and other preexisting debt are going to have to take into consideration no longer being able to write that interest off as a deduction anymore. i've read many an article/listened to many a financial discussion wherein the 'experts' have a strong belief that the majority of americans didn't pay enough attention to the 2018 changes and make the appropriate adjustments to their withholding's such that they will be GREATLY upset when they go to do their tax returns in 2019 (either that 'big' refund they are expecting won't exist or they will have a large tax bill to be paid).

I was worried about this too. I don't like getting a huge refund, but I went ahead and set my withholdings to 0 for the year because I wanted to make sure we weren't going to have to pay. DH and I have to file separately so we miss out on a lot of write-offs so I didn't want to be left with a bill come tax season.

 

[imbatman]

detail it in writing with an old school calendar somewhere accessible in case of emergency.

Did this yesterday on the spreadsheet...in bold...with highlights.

I was worried about this too. I don't like getting a huge refund, but I went ahead and set my withholdings to 0 for the year because I wanted to make sure we weren't going to have to pay. DH and I have to file separately so we miss out on a lot of write-offs so I didn't want to be left with a bill come tax season.

Same. Too much "what-if's" for us. We knocked mine down to zero for the year. I'll look at it in April and see if we need to adjust our sails. I'd rather err on the side of getting a refund or cutting it much closer.

Still excited about the zero/zero transfer I got yesterday. Feeling upbeat and forecasting out car registrations and repairs. Really putting our noses to the grindstone January, February, and March to see if we can keep up that pace and get out of debt sooner. I'm optimistic...but 2018 kicked my rear, so I'm also realistic.

 

[barkley]

On another thought with those unused or underspent budget categories, I like to have a little padding in my regular checking which can sort of be considered a mini emergency or extra fund so it doesn’t bother too much that I don’t have a name for every dollar as I figure unspent is saving in a sense, or money that can be allocated later on as a need or want comes up. I still have an allocated amount to savings at the beginning of the month, considering savings categories and Roth IRA that are factored in. Also, no matter what I’ve been as I mentioned going over in something, it’s never perfect category spending for me. I also tend to sometimes skip a monthly detailed budget because I hate getting into the weeds of things sometimes, but the months I do that I divide in three categories by savings, bills, living expenses. This year I’m trying to do a monthly detailed budget the whole year.

i'm with you on this-with some categories it's very generalized like 'household' which is just that, everything that the household uses from paper/pet food supplies to groceries to entertainment to windshield wiper fluid for the cars. it's a set amount and if we spend a bit more in one area (like it's the month the chewey order arrives) then we just have to pull back on another (so no going out to the movies).

i did try something for the first 3 months of 2018 that while time consuming was illuminating for budgeting purposes. i kept track of every PENNY of household spending. kept a detailed log of groceries in particular down to categories of beverages, produce, canned, meats, dairy and prepared/convenience. i really educated me on where our grocery dollars go-and how we can save by stocking up when certain items go on sale (i also figured out stuff we really don't use much so i can just eliminate it from being on hand-it's crazy how many items we buy out of habit or just b/c our moms always had it on the shelf).

 

[pblack]

Chiming in on the envelope/savings system. I have 4 savings accounts linked to my checking account that I use as my "envelope system." I have set amounts that auto transfer twice a month. My 4 categories are: main savings, travel, Bills(this is water/utilities/trash), and car savings. I want to add another savings account for next year for gifts/Christmas gifts. I know there are probably better ways of saving and better interest options, but this is what works for me for now. Plus if I need to pull out money from any of the savings accounts for one reason or another it takes me 30 seconds.

 

[amalone1013]

kept a detailed log of groceries in particular down to categories of beverages, produce, canned, meats, dairy and prepared/convenience. i really educated me on where our grocery dollars go-and how we can save by stocking up when certain items go on sale (i also figured out stuff we really don't use much so i can just eliminate it from being on hand-it's crazy how many items we buy out of habit or just b/c our moms always had it on the shelf).

I might try this, I think it would be interesting to know.

 

[barkley]

Chiming in on the envelope/savings system. I have 4 savings accounts linked to my checking account that I use as my "envelope system." I have set amounts that auto transfer twice a month. My 4 categories are: main savings, travel, Bills(this is water/utilities/trash), and car savings. I want to add another savings account for next year for gifts/Christmas gifts. I know there are probably better ways of saving and better interest options, but this is what works for me for now. Plus if I need to pull out money from any of the savings accounts for one reason or another it takes me 30 seconds.

i love doing it this way, and the 30 second transfer is great. i also like that when i pull up the home page for my credit union it show all those 'envelope' accounts i have so it reminds me every time i go to do a transaction where i'm at with all those 'envelopes'. i also like that in the RARE event that a regular monthly expense decreases, or we get a little bump to our regular monthly income that i can easily hop on-line and adjust the amounts i'm auto transferring (cuz a few bucks more per month thrown at our mortgage got it paid way ahead of time so i know that few bucks can make a difference building up another budget item).

 

[barkley]

I might try this, I think it would be interesting to know.

it can be scary-found out dh and i drink WAY more coffee than i realized, and ds has what many would consider a severe frozen lasagna addiction

 

[confettiandkale]

Alright, I’ve decided that 2019 is the year to really take charge of my finances. I just sat down and plotted out all of my debt, and I was both surprised and not surprised to see the only progress I made in 2018 was paying off a $450 credit card. While that was a big step for me, I still have 10 other (!!!) credit card accounts that I need to really pay down, so I can start saving for my future have some sort of savings for a rainy day.

Current debt: $19,832.18
My goal is to get that under $10K, while also trying to build an emergency fund ($3K+). I plan to check in monthly, and be honest with myself about the progress I’m making. I’m due for a 6.6% raise this year (1/2 next week, 1/2 in July) & I plan to throw all of the “extra” to my debt. I’ve very fortunate that I make a good salary (more than enough for my credit/debt to be this bad), and I’m single so all my money comes back to me.

My credit isn’t the greatest (I wrecked it a few years ago being young & shopping too much), so I’m not getting offers for better cards to transfer to in hopes of saving interest. My main goal is to just snowball as many accounts as I can and see how far I get.

Looking forward to the support & motivation in 2019!

 

[PhoenixStrength]

To everyone asking about how to track a budget, do yourself a favor and check out YNAB/You Need a Budget. Right now they have a 34 day free trial of the full service. I just started my free trial 9 days ago and it's already hugely changed the way I think about budgeting and money. The main idea is that you should be focusing on the money in your account(s) now and what you can do with it versus forecasting/planning for future pay/living paycheck-to-paycheck. I didn't think I would even consider continuing after the free trial (it's $83.99 per year) but I absolutely will once my free trial is up because it's amazing how helpful it is.

 

[jen7233]

i love doing it this way, and the 30 second transfer is great. i also like that when i pull up the home page for my credit union it show all those 'envelope' accounts i have so it reminds me every time i go to do a transaction where i'm at with all those 'envelopes'. i also like that in the RARE event that a regular monthly expense decreases, or we get a little bump to our regular monthly income that i can easily hop on-line and adjust the amounts i'm auto transferring (cuz a few bucks more per month thrown at our mortgage got it paid way ahead of time so i know that few bucks can make a difference building up another budget item).

Yes, I like that it's easy to transfer to checking or make deposits, and I don't have a need to worry about the federal limit of six withdrawals limit per month for savings accounts as I usually know what I'm going to pull out or do one sweep out to checking. Easy to see where I'm at or what more I need to save.

The board has been quite busy with 2019 budgeting talk and those that plan their budget by the year, thanks because I just remembered I have to start putting money aside for something else this summer, pool membership! We live in an area where there are community pools in the suburban housing areas, and you can either have a bond or other type of membership and it is pricey, but the pool is one of our main things to do in the summer with kids.

 

[amalone1013]

To everyone asking about how to track a budget, do yourself a favor and check out YNAB/You Need a Budget. Right now they have a 34 day free trial of the full service. I just started my free trial 9 days ago and it's already hugely changed the way I think about budgeting and money. The main idea is that you should be focusing on the money in your account(s) now and what you can do with it versus forecasting/planning for future pay/living paycheck-to-paycheck. I didn't think I would even consider continuing after the free trial (it's $83.99 per year) but I absolutely will once my free trial is up because it's amazing how helpful it is.

Ah the price went up. Sad face. Still worth it though.

 

[Jason_V]

My goals for 2019 include one stretch goal and two "hit max" goals...

My mortgage is currently just under $60k. I want to get that to $40k or below by 12.31.19. My first goal was to hit $35k, but when I ran the numbers, it wouldn't have left a whole lot of room for anything else. (This is the stretch goal.) Once I hit $6k in my savings, I'm going to stop adding to that pile of money and divert the funds currently going into savings (~$300 per paycheck) to the house. This should happen in April.

I'll also be working toward maxing my IRA's and HSA in 2019.

Random, "I'll pay with cash, thanks" goals: replace all the windows and sliding glass door at home with new windows (there's 4 windows and the slider). Also, possibly, get the popcorn ceiling taken down and have the ceiling painted/repaired if needed.

 

[jen7233]

My goals for 2019 include one stretch goal and two "hit max" goals...

My mortgage is currently just under $60k. I want to get that to $40k or below by 12.31.19. My first goal was to hit $35k, but when I ran the numbers, it wouldn't have left a whole lot of room for anything else. (This is the stretch goal.) Once I hit $6k in my savings, I'm going to stop adding to that pile of money and divert the funds currently going into savings (~$300 per paycheck) to the house. This should happen in April.

I'll also be working toward maxing my IRA's and HSA in 2019.

Random, "I'll pay with cash, thanks" goals: replace all the windows and sliding glass door at home with new windows (there's 4 windows and the slider). Also, possibly, get the popcorn ceiling taken down and have the ceiling painted/repaired if needed.

Great homes goals. I’m also focusing on maxing Roth IRAs out this year.

 

[DisneyMandC]

DH and I made the decision today to each carry our own separate health insurance policies. I've been on DH's health insurance with Aetna because it was SO good. I've never paid anything other than the $30 copay for any visits, and I don't think I've ever paid for a prescription. So, of course, his company is getting rid of that plan and going to Anthem. Since we also have Anthem at my work, it's cheaper for me to just go ahead and get on my own plan. It would be about $125 per pay period if I were to stay on his new plan, versus $75 per pay period for us to each go on our own plans. Plus, I know my work offers a lot of incentives for our wellness too, and they offer their own medical clinic. I think this year's total wellness incentives were around $360. By the time I do my incentives, I think we'll be looking at closer to $50 per pay period for both of us. I don't have any weird prescriptions or anything (knock on wood), so I think I shouldn't see any real increase in out of pocket costs.

 

[disney-inspired]

Alright, I think I've narrowed down my goals for 2019. Stealing @imbatman template:

1. CC #1: $129.33
2. CC #2: $275.00
3. CC #3: $866.08
4. Car Loan: $981.87

Total: $2,252.28
(Starting debt Jan 2018: $17,571)

Plans for 2019:

1. Pay off all remaining consumer debt by 02/01/19 - Lock up CC, do NOT accrue new debt
2. Consolidate & Refinance private student loans to lower APR (hoping for 5-6% - Currently 9.75 & 10%)
3. Reconfigure budget with student loan payments
4. Save $3000 to move out (deposit, 1st month, utility deposits)
5. Increase Emergency Fund to $3000

 

[princessesintraining]

Thank you for all your suggestions! Anyone use the every dollar app? My husband gets free subscription through work for smart dollar, which helps with the budgeting, but it looks like I can use the Every dollar app to keep track of daily expenses. I’ve put together a list of monthly expenses that give me a ball park idea of what’s going out each month.

 

[MasonDuo]

Thank you for all your suggestions! Anyone use the every dollar app? My husband gets free subscription through work for smart dollar, which helps with the budgeting, but it looks like I can use the Every dollar app to keep track of daily expenses. I’ve put together a list of monthly expenses that give me a ball park idea of what’s going out each month.

I've been using the Everydollar app for the past few months and have been enjoying it. It keeps me in check from frivolous spending like coffees and eating out. It's amazing to watch how fast things add up. I also like the idea of assigning each dollar a purpose. Unfortunately "Murphy" has hit us the past few months (Furnace, Car Repairs, tires) so I've ended over budget the last few months those but I'm cautiously optimistic January will be good.