*The Dave Ramsey 'Baby Steps' Thread*

[focusondisney]

Yea, I've been trying to figure out of it's a incoming or outgoing problem. And I'm not sure. And this is where I might need help. Here's a small breakdown of this past month's bills.

Income: $5,600;
All Bills: $4,637;
Gas-Tolls: $300;
Groceries: $700;

Nov. 2024 - Got to keep the Christmas tradition going.
Feb. 2025 - My first solo trip, spending time with my niece.

To those add:
Summer 2025 Trip to Chicago
November 2025 WDW trip

Total everything these 4 trips have cost you within the last year. That’s how much money could have gone to pay off your credit cards, put towards your car & student loans, the unexpected car expenses & the emergency fund. How much did those debts total in November 2024? Are you satisfied with the progress you’ve made in a year? How many years will it take you to pay off those debts at the current rate??

I am in my very late 60s. I can give you a few truths you will learn soon enough…retirement age will be here before you know it Those last 5 - 10 years as you get close to retirement go very quickly.

My husband & I had well paying jobs & were able to save a good amount for retirement. Even still, we worked until 65 & 67 for health insurance & to keep saving. Please think seriously about this: How are you funding retirement? Do you want to go into retirement still paying student loans? If you can’t pay your bills while working, do you really think you’ll be able to do it if Social Security is your primary income? Have you looked at your SS statement to see what your projected income will be?

You have said you made bad decisions in the past. The decisions you’re making now are compounding those from the past. Your future really is in your own hands. Believe me… you have limited time left to turn your finances around while you still have good earning potential.

 

[barkley]

So that's why I asked...what is in your "All Bills" category?

I think that's vital information as well if people are going to help with suggestions on 'trimming the fat'-i know I was surprised (silently shocked to the core) when during the pandemic shutdowns some friends who would previously periodically complain about their monthly household expenses and how it was sometimes a challenge 'just to meet the basics' shifted in their periodic complaints to how the lockdowns were keeping them from 'the basics'. I learned through their lockdown complaints that we were worlds apart on what we considered 'basic household expenses', for our household it was-food, shelter, utilities, insurance and taxes that had shared priority. their household included those but ALSO included-multiple dinings outs per week as well as multiple per month golf fees (and associated adult beverages during)/hair and nail appointments.

I think 'all bills' can be a world of different from one household to another-esp. if you are using credit cards to pay for dining out and then lumping that cost into 'credit card payoff' vs. considering it as a part of your household's monthly grocery/food budget (same goes in my mind for any consumables-coffees/teas, bagel/muffin grab and go...).

What on earth are you buying to spend $700 on two people for a month? I don't even spend that much per month on groceries for my family of 5.

that's shocking to me as well-esp. where they still eat out at least once a week as a couple/him for his 'required' work lunches. maybe b/c they won't do leftovers or freeze and buy more expensive smaller portions?

Working in a bank she probably also sees bank account balances. The people coming in with all that flashy stuff generally have less money in their accounts than those wearing a flannel shirt and driving an f150.

that's def. the way it is in my neck of the woods- the local charities, youth groups and schools are greatly benefited by an unspoken mindset of those in a strong financial situation who choose to 'share it not wear it'

 

[ThereYouSeeHer]

Take cash to the market and if you go over, put back the non-essentials like bottled water, chips and sugary snacks.

Yes! My children grew up learning how to take that long walk away from checkout to put things back when we went over budget. Never complained, they just understood the mission!

Nov. 2024 - Got to keep the Christmas tradition going.
Feb. 2025 - My first solo trip, spending time with my niece.

To those add:
Summer 2025 Trip to Chicago
November 2025 WDW trip

Total everything these 4 trips have cost you within the last year. That’s how much money could have gone to pay off your credit cards, put towards your car & student loans, the unexpected car expenses & the emergency fund.

...and he only took that solo trip in February because his wife decided to go on a cruise that same weekend. So that's actually 5 vacations in the span of 12 months (plus I'm sure visits to family and other things we don't know). The two credit cards and bank loan could have been paid off with those funds. This isn't to pile on or make anyone feel bad, but the constant insistence about Walmart's prices and everything else being the reason for their lack of money is mind-boggling. He doesn't have to be honest with internet strangers, but he has to be honest with himself and his wife or things won't get better.

Have you looked at your SS statement to see what your projected income will be?

Believe me… you have limited time left to turn your finances around while you still have good earning potential.

This was going to be my next suggestion as well. Both him and his wife need to register for their online Social Security accounts so they can see the amount of money they are projected to get at retirement. If the amount they will receive at age 70 is not enough to live on, we have a problem, and we are running out of time to turn it around.

 

[focusondisney]

and he only took that solo trip in February because his wife decided to go on a cruise that same weekend. So that's actually 5 vacations in the span of 12 months

.