Total Money Makeover

[minnie1928]

Now talk about nasties--my water broke on that couch. . I was so concerned--at the hospital when my sister finally went back to my house--I asked her to clean it--there was NOTHING there. More ewwww!!!!

I had to laugh when I saw this! I was on my 2 month old, new couch discussing with my husband that I thought the baby would be "late". Right then and there I felt this "pop" and the 1st thought that ran through my mind was "OMG, not on the new couch!". So I tightened every muscle in the lower half of my body and ran to the powder room.

I'm very happy to say that my couch survived unscathed!

 

[Muushka]

I did that for a while, not saving any money, but it ended up just causing problems. Something unexpected would come up and I'd have to resort to using the CC. Paying off my CC's is a goal I have, but I'd also like to store up some money. As far as what I am saving for, I am saving for both a budget vacation, as well as a general emergency fund.

Question -- do they tax ALL interest income? Or do you have to make a
certain amount of interest for it to be taxes? I don't even think I
listed the interest I made last year on my taxes (less than $10.) Does
the IRS have a way of checking that? I'm noy saying I'd cheat them,
but I swear I read somewhere you only have to pay taxes on interest
income if it's above a certain amount (I think $250?). Seems ridiculous for the government to worry about collecting taxes on $20 bucks in interest...small potatoes if you ask me.

I think you are safe at the less than $10 point.

You should receive Form 1099-INT for interest income and an Form 1099-OID for original issue discount from any paying institutions. You may receive a similar or substitute tax statement from each payer. Payers of interest of $10 or more are required to furnish you and the IRS with this tax information. This tax information is also usually included on your year-end account statement. Even if you do not receive a tax statement or Form 1099 you are still responsible for reporting all taxable interest income on your tax return. The IRS is notified of all interest paid by financial institutions on magnetic media. If you do not include your interest income on your tax return the IRS will know when their computer system matches your tax return to the tax information provided by payers. You will then be notified, usually by mail, of the amount of additional tax, interest, and penalties that you owe.

from the website

Don't you just hate the IRS???

 

[arminnie]

I have a question about the Total Money Makeover. Does it have anything for people who are not in debt?

I don't have any debt and don't have any problems paying off my credit cards each month, but I am always up to find new ways to save money.

 

[peacefulgirl]

I have a question about the Total Money Makeover. Does it have anything for people who are not in debt?

I don't have any debt and don't have any problems paying off my credit cards each month, but I am always up to find new ways to save money.

Yes... put it this way.... as Dave says ... most millionaires read 1 book a month.... read everything and anything you can!

There are a lot of books on his website that he suggests....

 

[Free4Life11]

Don't you just hate the IRS???

Yeah the IRS seems to have a way of "raining on the parade." It's a shame they never did make the change allowing people to deduct charitable giving without itemizing (I'm pretty sure they didn't pass it -- posted about it on the community board.)

 

[etwinchester]

For those who read the book:

Would you check it out of the library or just purchase it?

Are there a lot things you find useful to highlight and go back to or just check it out and maybe make copies of some important fact?

 

[RichNKatHolly]

I opted to purchase is since I will need to go back for reinforcement. I like to leave it on the counter so I don't "forget" what I should be doing. I may even take it to the mall with me when I have to go. I'm the kind of person who would read it once and be great for like a week, but then go back to my old ways. I guess you could get it from the library and if you think it would be good to own, then go purchase it.

Good luck. I haven't received mine yet but I'm hoping it will be the motivation I need!

 

[Luv2trav]

I opted to purchase is since I will need to go back for reinforcement. I like to leave it on the counter so I don't "forget" what I should be doing. I may even take it to the mall with me when I have to go. I'm the kind of person who would read it once and be great for like a week, but then go back to my old ways. I guess you could get it from the library and if you think it would be good to own, then go purchase it.

Good luck. I haven't received mine yet but I'm hoping it will be the motivation I need!

I agree!! I need to read it re-read it and re-read over and over to keep myself motivated.

 

[etwinchester]

Duh, NEVER MIND my previous post. I realized that this is the book I already have.

For some reason I didn't think that I bought this one...just one of those days!!!

 

[ziggystardust]

I think I'm going to purchase it myself (I'll probably buy it at the bookstore rather than amazon so I don't use my CC- see I'm already getting better) b/c of the same reasons. I might even break out the highlighter!

 

[peacefulgirl]

Like Dave says "I am wierd, I don't want to be Normal, because normal is BROKE!"

Anyone who knows me from my other post knows my financial mess. I can't say enough about what DR teaches. You may not agree 100%, but 99.9 you have to know he is on to something.

You guys should read "Financial Peace Revisted" from DR, TMMO is more about the plan, but FP is a good place to start, where he explain the life styles and mistakes most of us make.

DR's plan is not for the weak... he pushes for intense !!!

Go for it!!!!!!!!

I say again ... dont forget to read Financial Peace, Revistited is the updated version!

And you should read "The Millionaire Next Door",William D. Danko, Thomas J. Stanley it talks about their habbits verse's the "norm" VERY INTERESTING!

 

[dtauer]

OK, I just finished and I guess I'm a little confused. Based on what I've been reading in this thread, I guess I expected more about budgeting. No where does he discuss steps to take to decrease your monthly bills in order to save the initial $1000 or start the debt snowball. I guess I expected more discussion about getting rid of cable, or DSL or postponing vacations. It's seems to be all pretty high level theory stuff, or did I miss it?

Also, some of you are talking about the envelopes. I don't remember reading how to set up the envelopes except a little discussion about them in the very back of the book, or much about how to set up the budget worksheets.

Do I need the companion workbook, or his other book? Or is the information he gives in the very back of the book what everyone used to figure this stuff out?

 

[SHAMIL10]

How long is it "supposed to take" to get through the baby steps? Like saving up 3- 6 months expenses?- are you setting a 5 year goal for this? That's the only thing that makes sense to me at this point, since I have already done 1 & will have #2 completed by next March, we've already cut out as much "FAT" as far as I can tell, but it will still be a while before we can save that much money

 

[minnie1928]

How long is it "supposed to take" to get through the baby steps? Like saving up 3- 6 months expenses?- are you setting a 5 year goal for this? That's the only thing that makes sense to me at this point, since I have already done 1 & will have #2 completed by next March, we've already cut out as much "FAT" as far as I can tell, but it will still be a while before we can save that much money

It really depends on YOUR situation. At that point you've done #1 & #2, so all your expenses are your living expenses. Depending on what it costs to live vs. your monthly income it's hard to say what your timeline will be. Some people can live well below their means and will have more money left each month for babystep #3. Others may not be so lucky...

I think what Dave's point is to not lose your intensity just because you've completed steps #1 & #2. Those are great accomplishments! Now, just take the money you would have paid to creditors in step #2 and put them towards step #3.

Sorry my answer isn't better....

 

[amyup]

How long is it "supposed to take" to get through the baby steps? Like saving up 3- 6 months expenses?- are you setting a 5 year goal for this? That's the only thing that makes sense to me at this point, since I have already done 1 & will have #2 completed by next March, we've already cut out as much "FAT" as far as I can tell, but it will still be a while before we can save that much money

We're in the same boat. I did a 3 year goal or 4 if I decide to save 6 months! I plan on starting with saving very little a month and increasing the amounts every month by as little as $5-10 or as much as $50 a month. I already have a set amount taken out automatically. I'm also planning on saving 1/2 of our tax return (I know, I should change my deductions so I don't get a tax return, but then I would spend it ) for the next few years, this should cut my savings time considerably.

We too have no "fat" left to trim in our monthly expenses but I feel I can somehow save some amount each month!

 

[ElizaB39]

Hello everyone,

DOes anybody have a coupon code for purchasing books on Dave's website? I have a few items in my cart and there is a spot for a coupone code. Every little bit helps right?

TIA

Eliza

 

[RichNKatHolly]

I found all his books to be cheaper on Amazon (most were instock as well). Plus, if you spend $25 you get the free shipping. Received mine in 4 business days.

Good luck!

 

[TNKBELL]

or check it out from the library and make copies of the info you need to retain.

 

[MEM]

or check it out from the library and make copies of the info you need to retain.

Yes, and most libraries are part of a network and you can request books via inter-library loan from those libraries that have the books available. I just reserved both TMM and the one about Rags to Retirement and the books will be delivered to my local library in a day or two.

 

[ElizaB39]

I like to keep and reread so I wanted to buy. ALso, I didn't know about the free shipping over $25 for Amazon. Thanks all!