Need help

[Suzy]

Ok, I am almost finish reading Ramsey's book, Total Money Makeover. Once I started reading I didn't want to put it down. I am so ready for this. This is where I need help.
I am starting my EF of $1000.00. Got $150.00 so far. While saving for that I got all my bills together. Here there are:

CC:$209.59, minimum pymt $15 but will pay more until paid off

CC:$422.61, minimum pymt $15

CC:$2302.16, minimum pymt $75, high interest rate

life insurance: $58.00/monthly

vehicle insurance: $110.00/monthly

phone:$130.00 on average

electricity:$ 150.00 on average

dish network:$80.000, basic channels and local stations

groceries:$150.00/weekly but is coming down some

mortgage:$37,528.31, monthly pymt $491.00, paying $540.00 and have been doing so for years

DH truck, minivan and Expedition is paid off!!!

Kids in private school:$750.00/monthly, DD(youngest) will be in 6th grade this August

That's it. Maybe I haven't gotten far enough into the book but from what I have read my "debt" is the 3 CC's. Right???? Everything else is monthly bills that we will have. Am I missing something in the book??? I know I can be a little dense at times but I didn't think that it was that complicated to understand.

[Jamauk]

Nope, not that complictated at all! You are not that far in debt and once you get the snowball rolling, I bet you'll get through it quickly.

One thing I would recommend, once you get your debt gone, you may want to look into paying your life insurance/car insurance once a year or every six months.

Then, start snowballing your mortgage!

Good Luck!

[Greebo]

Hi Suzy, welcome to the DR Fan Club!

Questions: Have you committed to not charging any more debt, and have you destroyed the cards?

What is your joint, combined, take home pay?

Ok, I am almost finish reading Ramsey's book, Total Money Makeover. Once I started reading I didn't want to put it down. I am so ready for this. This is where I need help.
I am starting my EF of $1000.00. Got $150.00 so far. While saving for that I got all my bills together. Here there are:

CC:$209.59, minimum pymt $15 but will pay more until paid off

Stop. Pay only the minimum payments, UNTIL you have your EF set up. Make sure the EF is in a separate, SAVINGS account with no fees, just to make it a little harder to get to. Once you have the EF, I agree, this is your first snowball bill.

groceries:$150.00/weekly but is coming down some

That's $650/month on groceries. You're paying almost as much on groceries as you are on your kids private school.

I almost asked what you were buying, then I looked at your avatar. How the hell do you feed 7 people on $650/ month??? Awesome!!!

mortgage:$37,528.31, monthly pymt $491.00, paying $540.00 and have been doing so for years

I break with Dave on this a bit too. An extra $50/month on the mortgage is a rapid equity builder. We do it a bit diff - we do 1 extra payment per year - but either way since your used to it, why change it.

That's it. Maybe I haven't gotten far enough into the book but from what I have read my "debt" is the 3 CC's. Right???? Everything else is monthly bills that we will have. Am I missing something in the book??? I know I can be a little dense at times but I didn't think that it was that complicated to understand.

No, you got it. For the debt snowball, the CC's are it. The mortgage you'll start doing more on after the CC's are gone and the EF is built up.

Dave's plan is extremely simple. As he puts it, its nothing new - he just tells you the same thing your grand mother would tell you, only he keeps his teeth in.

The only recommendation I'd make is, as I said above, no extra on the CC UNTIL you have the EF - and you know - maybe stop paying extra on the mortgage until you have the EF too - your call. If you're saving, for example, $150/month to build the EF, then $50/month will save you almost 2 months to reach the goal. OTOH if you'll have the EF by August end anyway, then keep paying it. At least thats what my call would be.

GOOD LUCK!

[Moonblossom]

Im not seeing clothing listed here I know you have to clothe your family you need to look at your cc receipts, bank statements and list everything you spent money on, this way you can see exactly what has been spent with no guessing. I'm sure your missing other stuff I just cant remember what since it too early for me to be up

[Greebo]

Im not seeing clothing listed here I know you have to clothe your family you need to look at your cc receipts, bank statements and list everything you spent money on, this way you can see exactly what has been spent with no guessing. I'm sure your missing other stuff I just cant remember what since it too early for me to be up

Well, she did say she got her bills together, and clothing isn't a bill, but you make a good point. Your budget needs to cover not only bills (things you HAVE to pay), but discretionary spending as well (clothing, gift giving, etc.) If you don't have a set budget for discretionary items, then you will have a budget "emergency" as soon as the next birthday, graduation, wedding, or torn pair of nylons rolls around.

[Hoosier Momma]

Suzy, your family is just beautiful! I just had to say that

We have a grocery bill of about $700/month for six, and that includes formula, diapers, pet supplies (two large dogs and two cats), paper goods, toiletries, meds, and cleaing products. We had it at about $600, but had to up it due to rising costs.

We spend about $525/month on Catholic school for 2 of our dc. Right now we are taking advantage of having no tuition and throwing it at our debt snowball (two student loans to go!)

Get that EF together first, and then concentrate on the debt snowball.

Would add more, but have to be somewhere in 20 minutes!

[Russ]

dish network:$80.000, basic channels and local stations

This seems quite high. I have DirecTV just basic + local stations and pay $55-60/ month and have 2 receivers.

[Moonblossom]

Exactly Greebo she needs to list EVERYTHING not just monthly expenses and she needs to put some money monthly into her SF/FA depending on whether you like DR/MH and that money is to be used ONLY for items that are not due monthly. Take my word for it, it will save your buckies big time when you need to pay for something you "Forgot" about.

ETA: buckies my DS-Y word for nether regions when he was 2yrs old

[Cricketlegs]

I don't see gas money for the cars.

Heaven knows THAT ONE is a BIG budget buster if you don't put it on.

I also have our allowances so no one plays "Mr and Mrs happy Fingers" with the debit card and pet food.

[ladykemma2]

CC:$209.59, minimum pymt $15 but will pay more until paid off

CC:$422.61, minimum pymt $15

CC:$2302.16, minimum pymt $75, high interest rate

life insurance: $58.00/monthly

vehicle insurance: $110.00/monthly

phone:$130.00 on average

electricity:$ 150.00 on average

dish network:$80.000, basic channels and local stations

groceries:$150.00/weekly but is coming down some

mortgage:$37,528.31, monthly pymt $491.00, paying $540.00 and have been doing so for years

DH truck, minivan and Expedition is paid off!!!

Kids in private school:$750.00/monthly.

trash, homeowners association, gasoline, natural gas, water, sewer, oil changes, new tires, other car repairs and upkeep, car inspection, car registration, school startup supplies, clothes, prescriptions, annual doctors visits, annual dentist, internet, spending money, home maintenance, computer upkeep, computer replacement fund, new car replacement fund, flood insurance, xmas, vet bills, annual a/c and furnace check, charitable giving.

your debt situation ain't bad. can you cut the dish network to pay it down?

[ladykemma2]

i forgot birthdays, annual optometrist, gifts, childrens after school activities.