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Would anyone be interested in doing a Dave Ramsey thread? Punk Rock Princess {EBFT} 3 kids; Killeen, Texas 26899 posts
8th Jan '13

I was thinking it may be beneficial to have a chat thread for those of us on this journey. If you want to participate comment with your name, your baby step and any goals you have for 2013!



For anyone who doesn't know all the "baby steps":




0.1Commit to NEVER borrow $$$ EVER for ANYTHING other than possibly a house.
0.2Talk with spouse and get him/her on the same page as you concerning finances.
0.3Do a written budget
0.4Temporarily stop all retirement contributions
0.5Get current on all the basics (You MUST have Shelter, Food, Utilities, Basic clothing)
0.6Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months
0.7Cut lifestyle (Cut CATV, Cellphone, Regular phone "extra's", Internet, Eating out, etc) and/or take second job if $1000 EF will take more than 30-90 days. (depending on income)
0.8Get current on ALL bills



1.0Save $1000 as your "baby" Emergency Fund
1.1Chop up CC's (You have an EF now, no NEED to keep those CC's !!)
1.2Get Health insurance NOW (chances of getting sick w/ major medical bills are larger than that of death), especially if you have children.
1.3Get Life insurance NOW if you have considerable debt/your family couldn't make it financially if you died. Especially important if you have children !! Social Insecurity provides only a small amount of coverage if you have dependents.
1.4Amputate cars that you can't pay off within 24 months (You have an EF to fix the "bondo buggy" if something should happen)
1.5Consider raising insurance deductables to $500 or $1000 and dropping full coverage on paid for "bondo buggy" (You have an EF ya know)



2.0Do the debt snowball, paying all your debts from lowest BALANCE to highest.
2.1You can take your first vacation since finding Dave if you can pay cash for it (no using the EF !!!)



3.0Save 3-6 months of EXPENSES for your fully-funded Emergency Fund
3.1Start car replacement fund
3.2Save up 20% for home purchase OR pay down existing mortgage to the point you can drop PMI.
3.3Start furniture or other non-essential stuff replacement fund
3.4Move up in car if you still feel the need to (must pay cash for it)



4.0 Start contributing 15% of your paycheck to retirement.


5.0 Save for kids college fund


6.0 Pay off house early


7.0 Build wealth and give


homes cool TTC since May 2014; 2 kids; 2 angel babies; Indiana 61358 posts
8th Jan '13

Woot. I'm here!

Punk Rock Princess {EBFT} 3 kids; Killeen, Texas 26899 posts
8th Jan '13
Quoting sassy chef:" Woot. I'm here! "


I figured you would be! We're on BS 0.7 and when we get done with it we'll be skipping ahead to BS 2!

homes cool TTC since May 2014; 2 kids; 2 angel babies; Indiana 61358 posts
8th Jan '13

We have cut most extras, the ones DH will agree to (cell phones are here to stay, boo.) We don't eat out anymore, no cable, but he goes to school online so we have internet.



We already have our 1k saved up, and our second debt will be paid off within a few months!

Sofie+#2 Due March 18; TTC since Jun 2014; 1 child; Sheffield, So, United Kingdom 7731 posts
status 8th Jan '13

I'd love to but there's no way I could cut my phone or Internet :oops:

s00nt0b04 Due April 23 (boy); 3 kids; Louisville, Kentucky 477 posts
8th Jan '13

Yay!



Anna and DH and I 0.7 and 0.8 (when we get taxes back)

Clk 2 kids; Dexter, Michigan 11973 posts
8th Jan '13

Interesting, but there are some things we can't just cut out. I mean my husband makes extra income making phone apps, the developer phone is a must for that lol. Internet is used for my home buisness too.

homes cool TTC since May 2014; 2 kids; 2 angel babies; Indiana 61358 posts
8th Jan '13
Quoting Clk:" Interesting, but there are some things we can't just cut out. I mean my husband makes extra income making ... [snip!] ... makes extra income making phone apps, the developer phone is a must for that lol. Internet is used for my home buisness too."


We tweak it for our lives. Like, we have the 1k saved up way before we cut everything out.



We also could not get rid of a few things, that's life. We're still on the right track!

Punk Rock Princess {EBFT} 3 kids; Killeen, Texas 26899 posts
8th Jan '13
Quoting Clk:" Interesting, but there are some things we can't just cut out. I mean my husband makes extra income making ... [snip!] ... makes extra income making phone apps, the developer phone is a must for that lol. Internet is used for my home buisness too."


You're just supposed to cut where you can so if you have a smart phone you would cut it down to a regular phone with cheaper plan, if you aren't under contract you would cut the extra phone. Etc.



I mean people can do it however they want, the idea is just to get there as fast as possible so not cutting anything will just make it take longer to get there. Kwim?

homes cool TTC since May 2014; 2 kids; 2 angel babies; Indiana 61358 posts
8th Jan '13
Quoting Punk Rock Princess {EBFT}:" You're just supposed to cut where you can so if you have a smart phone you would cut it down to a regular ... [snip!] ... the idea is just to get there as fast as possible so not cutting anything will just make it take longer to get there. Kwim?"


:!:



Like, we weren't as strict until recently, but now until our car is 100% paid off we've cut out all "fun" extras...eating out, etc. Generally, we let ourselves go once a month. But not until this is finished with.

Sofie+#2 Due March 18; TTC since Jun 2014; 1 child; Sheffield, So, United Kingdom 7731 posts
status 8th Jan '13

<blockquote><b>Quoting Punk Rock Princess {EBFT}:</b>" You're just supposed to cut where you can so if you have a smart phone you would cut it down to a regular ... [snip!] ... the idea is just to get there as fast as possible so not cutting anything will just make it take longer to get there. Kwim?"</blockquote>




I managed to upgrade my phone but get a cheaper monthly deal which is pretty good haha. They are goals I have anyway, I'm usually better not going for something like this because if I fail I'll feel worse off.

homes cool TTC since May 2014; 2 kids; 2 angel babies; Indiana 61358 posts
8th Jan '13

And I do have to say, I've found this to be much more like a lifestyle change than a....diet budget plan, lol. It definitely takes sacrifices, and a new attitude towards money.

Punk Rock Princess {EBFT} 3 kids; Killeen, Texas 26899 posts
8th Jan '13
Quoting Sofia's Mummy♥:" <blockquote><b>Quoting Punk Rock Princess {EBFT}:</b>" You're just supposed to cut ... [snip!] ... haha. They are goals I have anyway, I'm usually better not going for something like this because if I fail I'll feel worse off."


Nah if you screw up you just adjust where you are on the plan.

Punk Rock Princess {EBFT} 3 kids; Killeen, Texas 26899 posts
8th Jan '13
Quoting sassy chef:" And I do have to say, I've found this to be much more like a lifestyle change than a....diet budget plan, lol. It definitely takes sacrifices, and a new attitude towards money. "


Agreed!

Clk 2 kids; Dexter, Michigan 11973 posts
8th Jan '13
Quoting Punk Rock Princess {EBFT}:" You're just supposed to cut where you can so if you have a smart phone you would cut it down to a regular ... [snip!] ... the idea is just to get there as fast as possible so not cutting anything will just make it take longer to get there. Kwim?"

Ah okay, it's better when plan isn't too strict. More doable. Our big debt is going to take couple years student loans lol.