Debt Dumpers 2024

[ruadisneyfan2]

I didn't see the posts (or didn't remember) that said the dollar value. This should definitely be fixable with some short term pain. Even picking up some short term extra work might be able to take care of that (assuming it's possible of course).

I think this was brought up on the Disney Debt thread. He had 3 cards listed and wasn't sure which one to pay off first, and he had enough $ to pay one off. One of the cards had very high fees so many people were telling him to pay that off and close the account to stop paying the fees. (Those fees could be payments on debt!) but then other people were giving different advice and it was like being told what to do by 20 people, each with their own feelings and philosophies.
He was worried about closing out a card and not keeping it for an emergency. It took all of a week for one to occur.

 

[CinderEmma94]

Do you co-mingle your income with your spouse/partner - Yes. I am a SAHM currently, but even when I was working pre-babies we combined our finances. We talked about it at length before we were even engaged (literally on our first date we were talking about plans for the future - how many kids we each wanted, financial goals and career goals, where we would want to live after graduating college, etc) and quickly after we got married we combined everything. That said while we were engaged we worked our own financial plans separately but together so everything was basically seamless when we got to that point. We have been married for 9.5 years now. We don't ask each other permission to spend or anything like that. We make the budget together and both agree before anything is set so there is no reason to and no policing anyone's spending.

Are you on the same page with your goals - Yes. My husband has a degree in math so he is definitely motivated by the data and I am more driven by the emotional impact of things but we are on the same page, and if we aren't for whatever reason we talk it out and compromise. Sometimes the math/data and what makes sense for our individual family unit doesn't match up perfectly but working through these things calmly has helped grow our teamwork and communication skills. It helps that we are a good match as a couple when it comes to communicating in general.

Do you create a budget each month - Absolutely. We use the Budget Mom Budget By Paycheck method because it is super flexible but helped us get in the habit and we have stuck with it every month for 3+ years now. Does every month go perfectly? No, that's not realistic for real life. That said, we aren't afraid to tweak it month to month and we have a budget meeting at least once a month to touch base. It used to be more formal, but we have been in a good groove for so long now it's just a quick check in about net worth and if we need to change anything/have anything coming up.

 

[disney-inspired]

DONE!!!
So glad that card is dead and gone. Now to save for fun things like Christmas and future vacations!

 

[ruadisneyfan2]

DONE!!!
So glad that card is dead and gone. Now to save for fun things like Christmas and future vacations!

View attachment 902805

 

[focusondisney]

DONE!!!
So glad that card is dead and gone. Now to save for fun things like Christmas and future vacations!

View attachment 902805

Congratulations!

 

[CinderEmma94]

DONE!!!
So glad that card is dead and gone. Now to save for fun things like Christmas and future vacations!

View attachment 902805

Congratulations!!!

 

[Tygerlilly]

We use the Budget Mom Budget By Paycheck method because it is super flexible but helped us get in the habit and we have stuck with it every month for 3+ years now.

I love TBM. I find her approach much easier to abide by than Dave's. I feel like she comes from a more current and realistic mindset.

I fell off the wagon hard-core lately dealing with all my mom's stuff. I think I'm going to print off two months worth of the BBP and get it set and ready for November and December.

 

[WDW_fan_in_TX]

What is The Budget Mom or whatever? Is it an app? Or like something on YouTube or a website? I would give it a try as long as I don't have to put any bank account information in. I'm not too keen on doing that.

I love TBM. I find her approach much easier to abide by than Dave's. I feel like she comes from a more current and realistic mindset.

I fell off the wagon hard-core lately dealing with all my mom's stuff. I think I'm going to print off two months worth of the BBP and get it set and ready for November and December.

 

[CinderEmma94]

What is The Budget Mom or whatever? Is it an app? Or like something on YouTube or a website? I would give it a try as long as I don't have to put any bank account information in. I'm not too keen on doing that.

The Budget Mom is Kumiko Love, she is a licensed financial expert and developed what she calls the Budget By Paycheck method. Basically it is what it sounds like. You budget per paycheck instead of per month (including things like splitting large expenses like rent between two or more checks so you don't go into a debt cycle for groceries and things like that). She is on Instagram and Youtube and has a website, and she has put out a ton of free info on how to do it. I highly recommend watching some of her videos, including the ones titled "Real Life Budget" because she takes a random follower's info and shows how she would set up their budget. She doesn't have an app but it is a simple process and meant to be done with whatever materials you have. You can use a regular notebook and pen, you don't have to buy her materials (the basic worksheets are on her website for free). It's a combination of zero based budgeting (income - fixed expenses - variable expenses - sinking funds - extra debt payment - extra savings = 0) and living a realistic lifestyle. Zero based budgeting meaning every dollar has a job, not that your bring your checking acc down to zero. She teaches (and I follow) having a cushion built (it's one of my fixed expenses) in so you never overdraft. She is an advocate for using cash envelopes, eliminating debt, and using sinking funds (mini savings for things like holidays, etc) to save for future expenses.

Her methods aren't new, or groundbreaking. Let's be real here, the math is the math. You can dress it up however you want but in the end you have income - expenses = leftover and that leftover should be allocated to debt, savings, or investing depending on how your finances look. If you don't have any left over and it's necessary to reach your goals you have to either make more money or lower your expenses. Every single finance professional will tell you the same thing with little tweaks in the method here or there. It's just a matter of who presents the material in a way that clicks with you and whose personality you connect more with.

To me, Dave Ramsey is too abrasive, out of touch, and downright cruel at times to his callers. I listened to his show for several years and found it made me feel more shame and negative feelings about money and it wasn't helpful for me (the baby steps work because it is the basic formula of getting out of debt, but there is a lot of shame and guilt built into the foundation/teaching of it). That doesn't mean his methods don't work, it just means that I don't connect with his message. TBM's philosophy on the other hand is more about finding your "why" and looking toward the future, and not berating yourself for something you did in the past. Why do you want to be out of debt, etc. If you don't have a good reason you won't stick with it. Some of her content is definitely "tough love" but it is never cruel. Personal finances are really individual and you have to try a few methods to see what works for you and what will stick. The only thing that really matters is forming a habit and sticking with it.

 

[ruadisneyfan2]

This might be helpful.

DR can be mean at times but he also readily admits he was eyeballs deep in debt too, and that it was all his fault.

Her voice was getting on my nerves when she starts talking really slow, like I'm an idiot. Really, it doesn't matter. The important thing is that everyone can find someone that helps motivate you to change your ways, and provides guidance on how to do it, where to start, etc.

I nearly fell out of my chair that the client was spending almost $100/month on eyelash extensions while wanting to save to buy a house.

 

[barkley]

I nearly fell out of my chair that the client was spending almost $100/month on eyelash extensions while wanting to save to buy a house.

I saw several people become more educated/aware of their personal spending habits by virtue of the covid lockdowns. had heard them complain on and off for years about desiring to buy something or do some home improvement but 'it's just not in my budget'. lockdowns hit and they are unable to do their nail appointments, go out to eat a couple of times a week/meet friends for drinks... all things they saw as basic ingrained parts of their budgets so they never considered the financial implications. lockdowns happen and they are amazed at their reduced spending which resulted in increased savings and those desired purchases or improvements became goals vs. a vague dream.

 

[ruadisneyfan2]

I saw several people become more educated/aware of their personal spending habits by virtue of the covid lockdowns. had heard them complain on and off for years about desiring to buy something or do some home improvement but 'it's just not in my budget'. lockdowns hit and they are unable to do their nail appointments, go out to eat a couple of times a week/meet friends for drinks... all things they saw as basic ingrained parts of their budgets so they never considered the financial implications. lockdowns happen and they are amazed at their reduced spending which resulted in increased savings and those desired purchases or improvements became goals vs. a vague dream.

Covid forced us to stop traveling which made it easy to paydown our mortgage. I had already estimated that if we stopped traveling, we could pay it off in 3 years, instead of having 8 years, but travel is the one thing that keeps me sane with my high stress job. I couldn't stop completely.
Once covid hit and we couldn't travel, and our work volume was way down, after a few months I needed somthing to focus my snowball on. I figured this was the silver lining of covid. I was so motivated, I got it done in 14 months.
Best thing I ever did for us, financially speaking.

 

[trenty]

This might be helpful.

DR can be mean at times but he also readily admits he was eyeballs deep in debt too, and that it was all his fault.

Her voice was getting on my nerves when she starts talking really slow, like I'm an idiot. Really, it doesn't matter. The important thing is that everyone can find someone that helps motivate you to change your ways, and provides guidance on how to do it, where to start, etc.

I nearly fell out of my chair that the client was spending almost $100/month on eyelash extensions while wanting to save to buy a house.

Great video. Bottom line is find a system that works and stick to it. I like her message - get out there and get it done.

 

[disney-inspired]

Congratulations!

Congratulations!!!

Thank you all! This CC was almost 10k! but thankfully it was on a zero interest CC. Never going back to that.
Things just got away from me, or more like I let go of things.

I love TBM. I find her approach much easier to abide by than Dave's. I feel like she comes from a more current and realistic mindset.

I fell off the wagon hard-core lately dealing with all my mom's stuff. I think I'm going to print off two months worth of the BBP and get it set and ready for November and December.

I love TBM! I have the yearly budget book and have been using it diligently. Really helps me see where my money has gone this year.

 

[Tygerlilly]

What is The Budget Mom or whatever? Is it an app? Or like something on YouTube or a website? I would give it a try as long as I don't have to put any bank account information in. I'm not too keen on doing that.

@CinderEmma94 explained that so much better than I ever could. I follow her on both Instagram and Facebook. She has a ton of freebie items in her shop. I splurged last Black Friday and got all of her digital products so I can print repeatedly. Sinking funds, in addition to an emergency fun, have literally saved us. Last year was perfect for Christmas because I had the money tucked away by August and could casually pick up presents as I saw them.

Right now our home improvement sinking fund, which only had about $150 in it, covered everything we needed to replace a bunch of pipes under the house where our drain from the washer kept clogging and flooding the laundry room.

 

[disney-inspired]

@CinderEmma94 explained that so much better than I ever could. I follow her on both Instagram and Facebook. She has a ton of freebie items in her shop. I splurged last Black Friday and got all of her digital products so I can print repeatedly. Sinking funds, in addition to an emergency fun, have literally saved us. Last year was perfect for Christmas because I had the money tucked away by August and could casually pick up presents as I saw them.

Right now our home improvement sinking fund, which only had about $150 in it, covered everything we needed to replace a bunch of pipes under the house where our drain from the washer kept clogging and flooding the laundry room.

Sinking funds are the best! It's so nice knowing that when Nov/Dec comes around, I have the money ready to use.

 

[ruadisneyfan2]

My current snowball goal is saving for Christmas. I usually do this over the summer but I started late this year. It will be done a week from Thursday. I already started shopping. Just socks, undies and a nice thick shirt for ds24. He says he needs winter clothes. I might just give him a Macy's gift card and let him pick out stuff for himself.

 

[Tygerlilly]

We are cutting way back on Christmas this year, and I've already started on a few things. We're going with the want/need/wear/read, present from Santa, and stocking. My goal is to buy one big item and one smaller item per check for the next few weeks. Hubby and I decided to pick smaller "needs" to have the kids gift us. I'm getting a 4 slice toaster finally that I've been putting off and I can't be more excited for Christmas morning. Lol.

 

[disney-inspired]

We are cutting way back on Christmas this year, and I've already started on a few things. We're going with the want/need/wear/read, present from Santa, and stocking. My goal is to buy one big item and one smaller item per check for the next few weeks. Hubby and I decided to pick smaller "needs" to have the kids gift us. I'm getting a 4 slice toaster finally that I've been putting off and I can't be more excited for Christmas morning. Lol.

I'm going smaller too - since the move is planned for next year, no need to give my niblings MORE stuff that needs to be packed. Next Christmas, thought? watch out! They're gonna have a yard and everything.

 

[goofytinkerbell]

1