Total Money Makeover

[jay-nee]

These "emergencies" are what is messing with me, that is why I need to get this $1000 set up and quick.

Granted whenever you dip into the emergency fund, you have to step back and refund it while doing the Debt Snowball, but it really does make sense.

I am really, really scared to not fund my 401K for that long, especially with the match. What I am thinking about doing is trying the plan without chnging my 401K for, say, 3 months, and see if I can make a go of it. After 3 months, if things are not moving the way I'd like them to move, then stop my 401K deductions. I know DR would have a problem with this, but...

Meanwhile, I will work this budget tool and blast as much money into my emergency fund as I can, very much hoping that it can be more than $5 a week. Most of that is because I am saving to pay cash for my boiler repair on 09/17/05 ($600 - yikes)... Plus, with $125 going to PT for DD over the next 2 weeks, gosh, the money just flows out of here...

**Right now, I am listening to DR talk about how immature people are with their money. Talking about wimpy men who wants their spouse to take care of everything - raising a fully grown teenage (my stbxH - age 45). We should have LOADS of money in savings, etc. But, he "needed" over $100 a week for "fun" money. I never got "fun" money. I don't miss that. Actually, I don't miss anything with him. I just wish he'd take his debt and fairly split the assets, but he thinks that he should get everything and leave the debt. argh! (ooops! I'm venting again! sorry!).**

Happy Sunday! (yeah, it is happy without the weight around my neck )

 

[jay-nee]

Thanks for the rundown, it's a nice introduction until I can get the book. Hehe, I was in the 332 section of my library - it consisted of a 2-foot shelf with books on "beating" the stock market. Given the economic makeup of our county, I'd love to know what genius chose those books and how often they get signed out.

The vast majority (something like over 90%) of people do not read 1 non-fiction book in a calendar year! So, those books may have never been checked out - ever!

Isn't that crazy? We can use 3 libraries for free (our town, the next town over, and Portland). Plus, the library in the next town over has a very efficient ILL system. They usually get books that we order within 2-3 business days! Plus, they have an on-line site that you can browse and see what is easily available through ILL. It's great! But, we like our town's library the best. It's small but so intimate, it's awesome. We volunteer there each week to help out too!

Happy Sunday!

 

[RichNKatHolly]

I am really, really scared to not fund my 401K for that long, especially with the match. What I am thinking about doing is trying the plan without chnging my 401K for, say, 3 months, and see if I can make a go of it. After 3 months, if things are not moving the way I'd like them to move, then stop my 401K deductions. I know DR would have a problem with this, but...

That is what we are doing. I cannot see cutting the 401K contribution right now - and we don't even have matching. Every year (for the past 2 that DH has been in this job) nearly $4000 has been put in. We never would have put away $4000 if we didn't do it automatically. Plus, it lowers our taxable income. Not that we need it lowered as it is quite low already. At least compared to prices of things lately.

Good luck with your emergency fund. I'm not sure how long it will take us as we are going away in November, but at the very latest, it will be completed by New Years!

 

[momx2]

Just wondering what Dave thinks of student loans. I can see being totally out of debt by mid-2007 except for house and student loan. I still owe close to $20,000 and I just can't see paying that off before BS #3. Does anyone know? Am I supposed to pay it off along with the other debts or what????

 

[dadtoagirl]

Dave is the man! Mailed payoff of home equity line today, so all we have left is the house and one car (should be paid in 2 years vs 5). Will go after the house after car gone as the wife will be back to work PT as DD goes to kindergarten.

 

[RichNKatHolly]

Just wondering what Dave thinks of student loans. I can see being totally out of debt by mid-2007 except for house and student loan. I still owe close to $20,000 and I just can't see paying that off before BS #3. Does anyone know? Am I supposed to pay it off along with the other debts or what????

From what I've read, the student loan is part of #2. I guess he sees no reason doing #3 if you still have debt that is not a house mortgage.

Best of luck! Maybe it will go quicker than you think.

 

[sk!mom]

I'm not really a Dave Ramsey follower since DH and I started a debt free life style many years ago. I certainly agree with Dave though and think that anyone who can motivate people to get debt free is great!

I have one comment that will probably be unpopular: As I skimmed this and similar threads, I noticed that many who are participating have recently taken or are planning expensive Disney trips according to their signatures. I would point out that this is one reason that some of you are struggling so much. I've read enough of Dave's stuff to know that he wouldn't recommend vacations for those that are struggling financially. At the very least, if you do not have a healthy emergency fund in place then an expensive vacation is probably not the best idea.

DH and I saved and took one trip to WDW in 1990. We did not return until 2001. This gap was partly caused by us traveling to other places but also partly because in our early years we had other priorities such as getting well established in a debt free lifestyle. We are now in a position to budget more for vacations and have been to WDW 3 times since 2001.

I think that vacations are VERY important but you will not find financial peace as long as you take vacations that you cannot afford.

 

[RichNKatHolly]

Some of us have grappled with the vacation idea and whether or not to cancel, but it is a personal decision. Everyone asks themselves if they should or should not go.

Personally, ours was paid for some time ago with an amount of money I received personally and made the decision to book a trip. Of course, if we did not go, we would have that money in our emergency funds. But, if I cancel now, there are certain monies I will not get back (ie. airfare, prepaid hotel stays offsite, etc.)

We are choosing to go since we agree that it will be our last trip for some time (at least until we have $10K in the bank). Some will flame me for that, some will flame the PP for suggesting we don't go, etc. We will go forwarding knowing that this will be our motivation to get on track so that every year we can have a nice trip.

But, please don't assume financial hardship due to signature lines. Some of us went on trips that were paid for by another party, paid for with cash, etc. Some of us may have had emergency funds in place that were later diminished, or just recently began to struggle.

 

[etwinchester]

Our next trip won't be till 2008 so by my planning, I should or WILL BE debt free by then (except for the mortgage). That will be the best feeling while we are on vacation. It will be nice to enjoy a vacation and not have to worry about the after-math...

 

[ElizaB39]

Just wondering what Dave thinks of student loans. I can see being totally out of debt by mid-2007 except for house and student loan. I still owe close to $20,000 and I just can't see paying that off before BS #3. Does anyone know? Am I supposed to pay it off along with the other debts or what????

There is something in the book - I am not totally sure, but it references home equity debt (2nd mtg) - and based on what percentage that debt is of total income it is treated either like a credit card debt or to wrap it up with the mortgage. Now, I am not sure how student loan debt is treated, would it depend based on the interest rate you are paying? Not sure.

 

[Lisa loves Pooh]

posting to say we have achieved Baby Step #1...now we can continue floating and working on that step #2...it's gonna be awhile!

 

[peacefulgirl]

There is something in the book - I am not totally sure, but it references home equity debt (2nd mtg) - and based on what percentage that debt is of total income it is treated either like a credit card debt or to wrap it up with the mortgage. Now, I am not sure how student loan debt is treated, would it depend based on the interest rate you are paying? Not sure.

I believe on his plan, only business debt and 2nd mortgages get put into another step if they fall within his rules. Student loan debt gets treated as consumer debt.

 

[peacefulgirl]

I am happy to see so many involved here in TMMO! Have you all heard that Dave will be on Oprah on Tuesday Sept 13th doing this stuff!! Make sure you do nto miss it!! I bet it will be awesome! I am going to do another post to make sure it gets out there.

 

[RichNKatHolly]

Setting DVR for the 13th Oprah. Very interested to see it.

Congrats Lisa Loves Pooh! That's a big step!!!! Good luck keeping it up!

 

[Misty89]

have not seen the book except for what what i read on here.......what class is his book suited for?
will it work for a low class family ?

 

[RichNKatHolly]

have not seen the book except for what what i read on here.......what class is his book suited for?
will it work for a low class family ?

LOL - I'm sure you are not "low class."

If you mean a lower income bracket family you should be able to get something out of it. We are considered middle income, but I don't see how that is possible. We are planning to use the plan and before this I could swear that we didn't have a nickel to spare every month. Well, I found a few nickels and we also did a few things to up our income temporarily to get the funds in the bank.

Best of luck and enjoy the book. If nothing else, it is motivational. I called the cable company right after reading it to cut our cable back to a more affordable rate.

 

[peacefulgirl]

have not seen the book except for what what i read on here.......what class is his book suited for?
will it work for a low class family ?

It is for ALL !!! He teaches that we live on what we have, period. No debt, that is for all classes! I hope you get to see the show.

 

[ElizaB39]

I believe on his plan, only business debt and 2nd mortgages get put into another step if they fall within his rules. Student loan debt gets treated as consumer debt.

I thought I remembered that, peacefulgirl, but I also thought that perhpas if you had a great deal of student loan debt, say like for a medical degree (had a friend who's debt was over 100,000.00) that could/would also be treated like mortgage debt. Again, not sure and I didn't read the whole book but I do have the workbook.

 

[MrsPete]

DH and I saved and took one trip to WDW in 1990. We did not return until 2001.

Wow -- that's a long trip!

Sorry, someone had to say it! Tee-hee, tee-hee.