Debt Dumpers - 2019

Ugh...budget busting coming up in 3, 2, 1...

I just made our eye doctor appointments for next week. I think both kids will need new glasses, and we do NOT trust Zenni anymore after 2 bad experiences. My kids vision is pretty complicated and I refuse to scrimp on their glasses. I'm not comfortable with the online route. Last time we paid approx. $350 per pair...2 years ago. My oldest might be able to get away with just new lenses (although, because they are Transitions, not cheap), but my youngest has grown so much that his frames are too small for his face now. I'm dreading it.

Also, I just took my bike to the bike shop to get a minor repair and happened to ask the tech how often I should buy a new helmet. He said "about every year you should get a new one." Yikes!!!! The helmet I have been using, I've had since 2010. Oops... so I bought a new helmet for $100. Then, came home, checked the date on my kids helmets, and they are almost 3 years old, so gonna have to buy them new ones too. And, unfortunately, we do a lot of long distance rides on trails and I don't trust cheap helmets from big box stores (plus, my teens have HUGE heads and never fit into the standard sized ones anyway.) So, looking at another $150-200 there. But, it's my kid's heads, and ever since they stopped using carseats, it's the area where I do NOT cut corners. We spend a lot of time on our bikes year round, so it just is what it is.

And onto some voluntary budget busting...DH and I are going to go to Vegas in June for 3 days while his mom stays with our kids. We want to do a getaway for our anniversary/before he leaves me for a year. We got flights on Jet Blue for free using points we transferred from our rewards credit card, so that is good. Hotel will be only about $400-500 for 3 nights, all in. Food will be another $500 probably (we like to splurge on fancy meals when the kids aren't around). But, the big one was...concert tickets to see Lady Gaga's Jazz and Piano show! I am SO excited about that! She is my favorite and I've never seen her live. We got the cheapest tickets we could, but they were each $350 after fees, so we just charged $700 to our card last weekend to pay for them, because there were literally only 6 tickets left at that price, and the next ones up were over $500 without fees. My husband also wants to see the Cirque du Soleil Beatles Love show, so that will be another $300 or so.

But, it's worth it because once he goes over to Japan in July, he will get around an extra $500/month nontaxable pay, plus we will stop owing CA income tax, which will net us an additional $250/month. And, his expenses over there will be pretty low. He will get free housing, and can eat meals in the chow hall for a few dollars per meal. Our expenses here will go down significantly as well, since he won't be buying gas 2x/week, we can lower the mileage on his car down to basically nothing and save on insurance, and I won't be buying as much food either.

On a positive note, our general spending this past month has been way down because we've literally only been buying food, gas, etc., stuff we actually NEED. So, the money we spent on the concert tickets actually fits into what I allocate for monthly credit card spending in general. So, I won't have any issues paying off the cards in full next month AND we are on track to put $2000 next month into our savings, so yay for that!
 
Also, I just took my bike to the bike shop to get a minor repair and happened to ask the tech how often I should buy a new helmet. He said "about every year you should get a new one." Yikes!!!! The helmet I have been using, I've had since 2010. Oops... so I bought a new helmet for $100. Then, came home, checked the date on my kids helmets, and they are almost 3 years old, so gonna have to buy them new ones too. And, unfortunately, we do a lot of long distance rides on trails and I don't trust cheap helmets from big box stores (plus, my teens have HUGE heads and never fit into the standard sized ones anyway.) So, looking at another $150-200 there. But, it's my kid's heads, and ever since they stopped using carseats, it's the area where I do NOT cut corners. We spend a lot of time on our bikes year round, so it just is what it is.

At REI they told me 5 years for a helmet or right away if you have been in an accident.
 
At REI they told me 5 years for a helmet or right away if you have been in an accident.

I remember when ds18 first got into skateboarding, the helmet from a local skate shop had an exp date on it. I don't recall exactly the time frame but it wasn't 1 year and I would think after 8-10 yrs, the foam would start to break down so I don't think I'd want one that old, even if the date said it was ok.
Some things aren't worth skimping on.
 
True, I think the estimate I've heard before is typically 18-24 months. He repeats the same thing, and I've listened to his podcasts quite a bit so I'm pretty certain this is what was said. However, I still think 24 months is a long time for something to possibly happen. I'm imaging here let's say a person has $1000 tucked aside for beginner emergency fund, then something major happens while they're snowballing debt? How to get out of that scenario then? I do wonder how many people truly follow it to the fullest and if they stick with it afterward.

Maybe he keeps it on the low side since that's Baby Step 1. If it were more realistic, let's say $3-5000 most people in debt would give up before even getting to Step 2. The ways in which I handled dumping debt in the very beginning was different than how I did it by the end. We become better at it. Early on I was very unsure of myself and my ability to stick with it. I rushed frantically to keep my snowball $ from mixing with our regular checking account. Also even though he admits the reasons for starting with the lowest debt is all psychological, I didn't realize how powerful of a motivator that is until I was quickly finishing the 2nd debt on my list. That was my 'wow! I can do this!' moment. With each subsequent bill, I just got stronger at it, more motivated to see it through. I think around halfway through I considered beefing up my EF but then dh had done a lot of side work and his slush fund was pretty beefy so I stopped worrying. Still, if he didn't have a slush fund or side work, I would not have become discouraged if halfway through I took a break to save more. I couldn't have said that when I first started. I am curious what the success rate is.

There are so many variables regarding what's a "good" EF. Like a pp said, if you're a homeowner and have several kids it will be higher than someone who is single and renting. No worries about needing a new furnace, roof, braces etc.
 

we rarely use ours as well (probably why the fraudulent charge caught my attention so quickly) but occasionally need cash outside normal banking hours so there's that, and as far as gas goes around here-there's an up charge of 5-10 cents per gallon if you use a credit card vs. cash/debit and i've yet to find a credit card reward that offsets that (but then i'm a cheapskate who refuses to pay for a credit card so mine don't nesc. get the best rewards).


Dh and I are going to Aruba in April. Our flights were free except taxes using SWA points. Our all-inclusive resort is $2550 for the other couples in our group. I booked using Chase Ultimate Rewards points so our cost is $1139. If I had more points, it could be free. Some gas stations here charge $0.05 more per gallon but there are plenty that don't upcharge so I use those. I can look on GasBuddy before I leave and usually the cheapest cc price is a penny or 2 more than the cheapest cash price. So for around $1/week more oop + AF, I can take a very affordable vacation.
 
Your method does make sense. I’m meticulous about tracking and planning, but I do things a bit differently so that may be why I like/need a much larger cushion in the account.

Some differences:
-We are paid once a month.
-I have several things set to auto draft.
-I pay for all daily expenses with cc too but I pay it only once per month so that’s a big chunk rather than your little bit every few days.
-I prefer paying bigger bills less often (ex. Car insurance twice per year vs every month) so my transactions tend to be larger amounts.

I suppose I could keep it all in savings and transfer as needed, but for me it’s just easier to know that the money is there and I don’t have to worry if I pay my credit card off the same day my mortgage auto drafts.

This is what I do. I keep separate Ally savings accounts with nicknames like Escrow, Car Ins, Sewer. Escrow covers property taxes and homeowners ins. I charge the insurance bills on a cc (every 6 months for car ins and annually for homeowners ins.) That $ can sit in savings almost another month after the cc bill is sent to me. I try to charge them right after my statement closes so that it takes another month before the cycle closes. Sewer and taxes charge a fee to pay by cc. I still mail a check for taxes but the sewer I can use Ally bill pay. Just transfer from savings to checking quarterly.
Mortgage $ goes to our local bank savings account. I have Chase take it directly from savings. It counts as one of my 6 monthly withdrawals but it's worth it because it only mixes with our $1000 EF for 1 week, and never mixes with other bill paying funds, ATM taps, etc. Also, between Ally, our local branch savings account, and our old Capital One accounts, we have probably 15 savings accounts. I could close most of the empty Cap One accounts but I rarely have to worry about 6 transactions per month rule.
 
At REI they told me 5 years for a helmet or right away if you have been in an accident.

I think it depends on how often it's used and where it is stored. I use mine a LOT and sweat quite a bit. The guy at the shop said that the sweat speeds up the breakdown of the foam and strap material, and the excessive heat of garage storage breaks down the foam even further. Our garage routinely reaches 95 degrees on summer days.

I had also forgotten that I did fall while wearing it and only barely hit the ground with my head, but even still should have replaced it back then.

Also, kids tend to drop helmets pretty often on the ground when they take them off, and that is another reason to replace kids helmets more often. Apparently, a helmet should never be dropped.

There is also a new helmet technology available called MIPS on newer helmets, which protects your brain much better than regular helmets, in the event of a crash where your head rotates or hits the side. Seems like something worth having and it doesn't add anything to the cost.

FWIW, I have not gotten the best advice from people in the bike department at REI. We bought one son's bike there and not only was it put together very poorly, they also missed a pretty significant gear shifting issue during their "multi point inspection" when we bought it. I took it back, they said the bike was fine. My son fell after a gear shift resulted in the chain slipping off while he was pedaling standing up. I took the bike to my trusted bike shop and they said the entire gear assembly was put on incorrectly, the chain wasn't tight enough, AND the brakes were not properly adjusted. Last time I buy anything from the bike department at REI. I love the store and have gotten good information in other departments, but my experience is that they are not, in any way, bike specialists.

Edit: the manufacturer of my boy's helmets (Giro) says replace every 3 years. So, I'll go with that. They are from 2016, so I will replace them in a couple months since I remember we bought them around spring 2016.
 
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And onto some voluntary budget busting...DH and I are going to go to Vegas in June for 3 days while his mom stays with our kids. We want to do a getaway for our anniversary/before he leaves me for a year. We got flights on Jet Blue for free using points we transferred from our rewards credit card, so that is good. Hotel will be only about $400-500 for 3 nights, all in. Food will be another $500 probably (we like to splurge on fancy meals when the kids aren't around). But, the big one was...concert tickets to see Lady Gaga's Jazz and Piano show! I am SO excited about that! She is my favorite and I've never seen her live. We got the cheapest tickets we could, but they were each $350 after fees, so we just charged $700 to our card last weekend to pay for them, because there were literally only 6 tickets left at that price, and the next ones up were over $500 without fees. My husband also wants to see the Cirque du Soleil Beatles Love show, so that will be another $300 or so.

But, it's worth it because once he goes over to Japan in July,

This is wonderful! Good for you! :goodvibes:cool1::thumbsup2 I can't imagine being apart from dh that long so it's nice that you're getting time together as a couple, having grown up fun. I would totally do this even if it truly wreaked havoc on the budget. A year is a long time. :sad: :hug: It will truly be a grand countdown to his retirement!

Sheesh, back in 2008 I cried on Spaceship Earth when we went to WDW for 4 nts without dh. At first I was excited since dh is always on a different schedule than us and always gets tired and cranky by 8pm. lol Once we were there it hit me out of the blue.:sad1: I don't know that I could do that again.
Yeah, I'm a wimp.
 
Travel: Current conversations are around a CA trip in July - a couple of days in the San Fran area (specifically want to see Golden Gate Bridge, Alcatraz, and the Redwoods) and then flying down to San Diego for a few more days (currently the zoo is the only must on the list). Open to suggestions of hotels, food, and must sees (and any travel tips for these areas - its a little out of our element)!


This is on our list of "some day":
https://www.midway.org/

Also the Grand Floridian Resort at WDW was modeled with this hotel in mind:
https://hoteldel.com/
https://curiocollection3.hilton.com...curio-collection-by-hilton-SANQQQQ/index.html

A cable car ride in SF is a must!
 
Maybe he keeps it on the low side since that's Baby Step 1. If it were more realistic, let's say $3-5000 most people in debt would give up before even getting to Step 2. The ways in which I handled dumping debt in the very beginning was different than how I did it by the end. We become better at it. Early on I was very unsure of myself and my ability to stick with it. I rushed frantically to keep my snowball $ from mixing with our regular checking account. Also even though he admits the reasons for starting with the lowest debt is all psychological, I didn't realize how powerful of a motivator that is until I was quickly finishing the 2nd debt on my list. That was my 'wow! I can do this!' moment. With each subsequent bill, I just got stronger at it, more motivated to see it through. I think around halfway through I considered beefing up my EF but then dh had done a lot of side work and his slush fund was pretty beefy so I stopped worrying. Still, if he didn't have a slush fund or side work, I would not have become discouraged if halfway through I took a break to save more. I couldn't have said that when I first started. I am curious what the success rate is.
I heard a call on his YouTube channel where the caller asked in about the 1k. He openly admits yeah it's not a lot the 1k, but to stay the course with saying go to Step 2 after the 1k, sounds like just to get the debt focus started. On another call he admitted that he didn't even have the 1k starter emergency fund in the beginning of his advising but added that in there later. I think the purpose is it deflects some things, obviously it can't deflect it all but is a starting point.
I think it depends on how often it's used and where it is stored. I use mine a LOT and sweat quite a bit. The guy at the shop said that the sweat speeds up the breakdown of the foam and strap material, and the excessive heat of garage storage breaks down the foam even further. Our garage routinely reaches 95 degrees on summer days.
Probably so on use, my helmet is really old 2011/2012 I think, but I rarely ever bike. Here in our new area we don't bike for several reasons, but when I did with my kids at last places we lived, we biked to the store and back, or just around the neighborhood, around the block. You probably are in an area that is conducive to biking and bike trails, so if so yes, good quality safety equipment I wouldn't think twice on either.
 
This is wonderful! Good for you! :goodvibes:cool1::thumbsup2 I can't imagine being apart from dh that long so it's nice that you're getting time together as a couple, having grown up fun. I would totally do this even if it truly wreaked havoc on the budget. A year is a long time. :sad: :hug: It will truly be a grand countdown to his retirement!

Sheesh, back in 2008 I cried on Spaceship Earth when we went to WDW for 4 nts without dh. At first I was excited since dh is always on a different schedule than us and always gets tired and cranky by 8pm. lol Once we were there it hit me out of the blue.:sad1: I don't know that I could do that again.
Yeah, I'm a wimp.

Ha ha. Yeah, I am used to being away from DH. We've been married 18 years but probably apart about 4 years altogether, maybe more. It's the life of a field artillery Marine. He just was gone in DC all week...It's his 5th trip over there in the past 9 months.

Regardless, it is ALWAYS wonderful to get away as a couple, and not something we get to do often, so we cherish those opportunities.
 
Probably so on use, my helmet is really old 2011/2012 I think, but I rarely ever bike. Here in our new area we don't bike for several reasons, but when I did with my kids at last places we lived, we biked to the store and back, or just around the neighborhood, around the block. You probably are in an area that is conducive to biking and bike trails, so if so yes, good quality safety equipment I wouldn't think twice on either.

Yes we have a huge network of bike trails here. I ride about 40-50 miles per week, which, around here is considered pretty low. My boys join me on a 14 mile ride once a week. One of these days, I will do the ride that goes from my home to the ocean, at Newport Beach. It's called the Mountain to Sea trail and we ride the portion near our home (the "mountain" part). It's an 18 mile trail one way, so it's something I am working up to.
 
Ally question....has anyone opened a SEP IRA with them? I work side jobs in the summer and get 1099-MISC for tax purposes. I believe I can pay in 25% of 2018 totals and open SEP IRA account.
 
There is also a new helmet technology available called MIPS on newer helmets, which protects your brain much better than regular helmets, in the event of a crash where your head rotates or hits the side. Seems like something worth having and it doesn't add anything to the cost.

I bought myself a new helmet last summer because we started biking as a family when DD was finally old enough for the Burley trailer. I got a Giro with MIPS. I would have gotten DD a helmet with MIPS but I couldn’t find one small enough with that technology. Probably by summer 2020 she will be big enough to upgrade and I will get her the Giro toddler helmet with MIPS.

DD got a balance bike for Hanukkah and will be able to start using it this spring, so I am anticipating a lot of falls. I will probably get her a second helmet just to use with her bike and leave the other helmet just for the bike trailer.

I am sorry that you don’t like your REI bike department. I have always had good experiences at ours here as well as when I lived in Austin. I think it just depends on the staff, but here they are all really hardcore cyclists.
 
I am sorry that you don’t like your REI bike department. I have always had good experiences at ours here as well as when I lived in Austin. I think it just depends on the staff, but here they are all really hardcore cyclists.

I think part of the problem is the sheer number of specialty bike shops around here. I think the hard core bike people work at those.The REI bike department seemed staff with a bunch of clueless college students. I bought the bike there because my son was set on a blue and neon green bike and REI is the only place that had one out of the 10+ shops I went to, plus the price was lower than most other places because it was on sale.
 
dirty, stinking viruses:crazy2: they are budget busters:mad::mad:

i'm going over the numbers for january. we did REALLY well for the most part. managed to stick to restricting grocery purchases for the most part to dairy and produce with the exception of taking advantage of a couple of excellent sales on beef b/c it was the one our freezer had the least of at the beginning of the year (and i had been holding out for a sale). started eating through the freezer and pantry stash...........then that freaking virus reared it's head-with it's sniffles, sneezes, hacking cough.........we all ended up having it at different points in the month (and that sucker hangs on) so that meant:

-buying cold meds, cough syrup, cough drops, vicks strips.....thankfully i had a stockpile of puffs already, and

-no way no one was going to be touching/preparing food for anyone else so it was several default to to-go food eating. granted, it was'nt bad expensive but those dominos, jimmy johns, subways orders add up.


still-did manage to cut the household budgeted amount's overall expenditures by about 30% so i'm rolling over that money into the newly established 'rollover' savings account in the event the household has excessive expenses one month (or there's a sale on something i need to stock up on w/o breaking an individual month's budget).


onward and forward-here's to a successful february for all.
 
We are on Dave Ramsey’s baby steps 4-6. In the last 5 months of last year, we paid an extra $10k on the house.

We just fully funded our IRA’s for 2019 ($12k).

The IRA funds came from a cashed out whole life policy. We will stick all of our extra cash this year on the house, but we are out of money next year and will have to budget in for the IRA’s.
 
We are on Dave Ramsey’s baby steps 4-6. In the last 5 months of last year, we paid an extra $10k on the house.

We just fully funded our IRA’s for 2019 ($12k).

The IRA funds came from a cashed out whole life policy. We will stick all of our extra cash this year on the house, but we are out of money next year and will have to budget in for the IRA’s.
Way to go!
 
Here is my January summary for 2019 Goals.

2019 Financial goals:

  • $6,000 towards our emergency fund $4000 saved
  • Increase both of our super contributions to 15% I have set this up for myself but still have DH to go
  • Establish a Disney trip fund. Our last trip was 7 days DL in 2016
  • Increase our share holdings by $4000
  • Establish a car fund

2019 Personal goals:
  • Make more time for self-care Not yet but kids have just gone back to school with DS2 starting a new school, I have been very focussed on them.
  • Keep a regular exercise routine Yes, I was on fire for Jan. Swam laps 5 days a week and gym sessions Mon-Fri
  • Establish work/life boundaries 9-5 and 5 days a week A big yes, and this is my proudest achievement! I made myself very sick in 2018 working myself into the ground after launching a new business.
  • Lose 12 pounds
 














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