Expanded Baby Steps - Stolen from MYTMMO.com - Page 7
Page 7 of 8 FirstFirst ... 45678 LastLast
Results 91 to 105 of 106
  1. #91
    Rude and Vile Master Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    45
    Posts
    8,563
    Post Thanks / WTG / Hug
    Rep Power
    77

    Default

    Quote Originally Posted by hopeful11 View Post
    This is my first time here. Just started on TMMO. We are $55000 in CC debt and $4800 on child's student loan. Annual income $98000. If we tithe and help our one college student away from home (he works 2 jobs also- a jr) we are about $1000 negative monthly. I am discouraged b/c I feel like there's nothing big to cut out. (Our CC's due to medical and house we lost $30000 to lawyers on) My husband is working OT and I am trying to work extra, but can't even get completely current. We are committed but I am very discouraged
    I agree with Russ. I'd like you to start a separate thread.

    I'd encourage you not to do so, however, unless you're willing to hear some pretty firm advice you may not like hearing.

    Basically cause with an income close to 6 figures like you have, you don't really have an excuse...
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"


    Greebo
    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
    WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three
    Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!

  2. #92
    Registered User forHISglory's Avatar
    Join Date
    Nov 2007
    Location
    Right Here
    Age
    65
    Posts
    3,813
    Post Thanks / WTG / Hug
    Blog Entries
    11
    Rep Power
    37

    Default

    A most interesting thread that somehow I have missed reading until now.
    Spiritual:
    "You are fearfully and wonderfully made." Please... respect life.

    Financial:
    Debt free, hoping to stay that way!


    MY BLOG: glorybug.wordpress.com


    1. Keep on writing.
    2. Get some balance in my life.
    3. Lose weight. Hopefully 20# this year.
    4. Continue to be looking for how God wants to use me this year.


  3. #93
    Registered User
    Join Date
    Nov 2010
    Location
    Virginia
    Posts
    95
    Post Thanks / WTG / Hug
    Rep Power
    4

    Default

    Being new here, I figured I'd bump this and throw in my "answers":

    0.1: Commit to NEVER borrow $$$ EVER for ANYTHING other than possibly a house. Done

    0.2: Talk with spouse and get him/her on the same page as you concerning finances. Done

    0.3 Do a written budget Done

    0.4 Temporarily stop all retirement contributions This was one of our "changes" to the DR plan. Since we were both contributing only what's matched by our employers, we decided to continue with what we were doing.

    0.5 Get current on all the basics (You MUST have Shelter, Food, Utilities, Basic clothing) Was already done

    0.6 Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months Done

    0.7 Cut 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) Wasn't needed

    0.8 Get current on ALL bills Was already done

    1.0 Save $1000 In baby EF Another deviation for us (2k in the bank instead), but done

    1.1 Chop up CC's (You have an EF now, no NEED to keep those CC's !!) Done as they've been paid off. What a freeing feeling!

    1.2 Get Health insurance NOW (chances of getting sick w/ major medical bills are larger than that of death), especially if you have children. Done

    1.3 Get 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. Working on as I type. The applications just went in on November 10. My husband's approval was emailed to us today, we're hoping to hear about mine soon. Being true DR followers, we used Zander and have nothing but good things to say.

    1.4 Amputate cars that you can't pay off within 24 months (You have an EF to fix the "bondo buggy" if something should happen) One paid off as part of snowball, the other is our last snowball item and will be paid off by this time next year.

    1.5 Consider raising insurance deductables to $500 or $1000 and dropping full coverage on paid for "bondo buggy" (You have an EF ya know) Done

    2.0 Do debt snowball, paying all your debts from lowest BALANCE to highest. Working on it!

    2.1: You can take your first vacation since finding Dave if you can pay cash for it (no using the EF !!!) We REALLY deviate from DR here, but we're on the same page about this one. We both have relatively high stress jobs and need to get away every once in a while. It's our chance to really reconnect with each other. Instead of paying for vacations on a card (like we used to), we've paid for them all in cash. Yes, we could've finished our snowball by now, but keeping our sanity was more important than saying we took 18 months to complete the snowball rather than 28 months.

    3.0 Save 3-6 months EXPENSES in EF We're planning on 8-12 months and starting in Jan 2012.

    3.1 Start car replacement fund

    3.2 Save up 20% for home purchase OR pay down existing mortgage to the point you can drop PMI.

    3.3 Start furniture or other non-essential stuff replacement fund

    3.4 Move 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. Planning to start Jan 2013.

    5.0 Save for kids college fund Since we don't have kids, and neither of us is going back to school, we're skipping this step for now. We'll come back to it whenever necessary.

    6.0 Pay off house early Planning to start mid 2013.

    7.0 Live like no one else since you have lived like no one else (investment ideas at this stage greatly appreciated, Dave doesn't go into too much detail on this stage) Can't wait!

  4. #94
    Registered User zenmama's Avatar
    Join Date
    Sep 2007
    Location
    Montreal, Canada
    Age
    50
    Posts
    184
    Post Thanks / WTG / Hug
    Rep Power
    8

    Default

    Great, great thread! After an almost 2 year absence from FV, I need to get back on track. A lot of valuable information in this thread. Greebo, thanks for posting it and clarifying some of the concepts. I'm not sure I get it all but I'll start with the babysteps. LOL I also thought the Baby EF was for those wanting to start a family.
    Mom to DD 17, DS 14
    DH 41 1 cat,1 dog

    BS1 : DONE
    BS2 : Working on it

    2011 TOTALS AT START OF YEAR
    CAR1 : PIF
    CAR2 : 8054$/8775
    CC1: 4932$/6775
    CC2: 7351$/8500
    CREDIT MARGIN : 21368$/21500
    HOME : 145833$/147766

  5. #95
    Registered User HoustonDave's Avatar
    Join Date
    Feb 2011
    Location
    Houston, TX
    Posts
    48
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default

    0.1: Commit to NEVER borrow $$$ EVER for ANYTHING other than possibly a house.
    DONE, though we were in the middle of purchasing property when we found DR and can't back out. That's the last of it.

    0.2: Talk with spouse and get him/her on the same page as you concerning finances.
    DONE. Fully on board.

    0.3 Do a written budget
    DONE.

    0.4 Temporarily stop all retirement contributions
    DONE.

    0.5 Get current on all the basics (You MUST have Shelter, Food, Utilities, Basic clothing)
    DONE.

    0.6 Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 months
    Not necessary to get all CC debt paid off, but we are looking hard at selling my 83 Mustang. (sob)

    0.7 Cut 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)
    Not necessary for BEF, but we are cutting CATV and switching to broadcast / ROKU for TV, have cut eating out significatly, etc.

    0.8 Get current on ALL bills.
    DONE.

    1.0 Save $1000 In baby EF
    DONE.

    1.1 Chop up CC's (You have an EF now, no NEED to keep those CC's !!)
    Having a CC Shredding Party this week!

    1.2 Get Health insurance NOW (chances of getting sick w/ major medical bills are larger than that of death), especially if you have children.
    DONE.
    1.3 Get 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.
    NOT DONE. Got initial quotes but didn't follow through. Argh.

    1.4 Amputate cars that you can't pay off within 24 months (You have an EF to fix the "bondo buggy" if something should happen)
    Think we can manage to pay off these in next 2 years.

    1.5 Consider raising insurance deductibles to $500 or $1000 and dropping full coverage on paid for "bondo buggy" (You have an EF ya know)
    Both cars financed with high deductibles. Will evaluate dropping comprehensive after payoff.

    2.0 Do debt snowball, paying all your debts from lowest BALANCE to highest.
    IN PROGRESS. We have paid off $70,000 of our credit card debt over the past 5 years. We have about $5,000 to go and that should happen next 2 months!

    Next steps are paying tax payments (we know we will owe taxes next year) and paying off the cars, then the student loans.

    2.1: You can take your first vacation since finding Dave if you can pay cash for it (no using the EF !!!)
    We are planning no vacations this year but will have a look at next year!

    Steps 3-7 we still have to do!

  6. #96
    Registered User
    Join Date
    Mar 2012
    Age
    30
    Posts
    71
    Post Thanks / WTG / Hug
    Rep Power
    3

    Default

    0.1: Commit to NEVER borrow $$$ EVER for ANYTHING other than possibly a house.Check
    0.2: Talk with spouse and get him/her on the same page as you concerning finances. check, although I'm not sure he quite understands just how serious I am about this

    0.3 Do a written budget Check

    0.4 Temporarily stop all retirement contributions I'm only putting in what my employer matches, I think I can pay off all debt within 12 month other than mortgage without doing this step

    0.5 Get current on all the basics (You MUST have Shelter, Food, Utilities, Basic clothing) Check

    0.6 Amputate "toys" (bikes, boats, ATV's etc) if they will keep you from completing the snowball within 12 monthsthis is where my hubby isn't quite on board, mainly b/c the one car loan is our only commercial debt

    0.7 Cut 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)Got rid of my smartphone last week! Thinking of cutting cable this week

    0.8 Get current on ALL billsCheck

    1.0 Save $1000 In baby EFCheck

    1.1 Chop up CC's (You have an EF now, no NEED to keep those CC's !!)Need to get the scissors out ASAP, balances are zilch

    1.2 Get Health insurance NOW (chances of getting sick w/ major medical bills are larger than that of death), especially if you have children.Check

    1.3 Get 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.Check

    1.4 Amputate cars that you can't pay off within 24 months (You have an EF to fix the "bondo buggy" if something should happen)See Above

    1.5 Consider raising insurance deductables to $500 or $1000 and dropping full coverage on paid for "bondo buggy" (You have an EF ya know)need to talk to the hubby about htis tonight, not sure what it's at now

    2.0 Do debt snowball, paying all your debts from lowest BALANCE to highest.working on the one and only loan other than mortgage

    2.1: You can take your first vacation since finding Dave if you can pay cash for it (no using the EF !!!)

    3.0 Save 3-6 months EXPENSES in EF

    3.1 Start car replacement fund

    3.2 Save up 20% for home purchase OR pay down existing mortgage to the point you can drop PMI.

    3.3 Start furniture or other non-essential stuff replacement fund

    3.4 Move 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 Live like no one else since you have lived like no one else (investment ideas at this stage greatly appreciated, Dave doesn't go into too much detail on this stage)

  7. #97
    Registered User bee9984's Avatar
    Join Date
    Jan 2004
    Location
    Canada
    Age
    49
    Posts
    856
    Post Thanks / WTG / Hug
    Blog Entries
    5
    Rep Power
    11

    Default

    This is an A-W-E-S-O-M-E thread! saved it to my favorites

  8. #98
    Registered User Suprise's Avatar
    Join Date
    Dec 2009
    Posts
    365
    Post Thanks / WTG / Hug
    Rep Power
    5

    Default

    I just wanted to debate the whole buying a beater car for cash or buying a car with financing. I think I could be placed in the middle of those two extremes. In december our 2001 Chrysler Sebring with 300 000Km started leaking gas, the tranmission was going and something in the suspention also was going. So that car really did get us as far has it could. We went to the bank and requested a loan for 8000.00 cause we knew we could find a good car for that price. We went to the dealer and there was one car available for 8000.00 it was worth more but since we we're ready to leave they gave us the deal. Maybe we could have waited longer to buy a newer car but the risk is too high for us because my husband works 30 minutes away and we only have one car. We can't afford a full day's pay loss if not more. Plus we have small children that we don't want to drive around in with a beater. I'm happy with our car and we will keep it for a long time. Also wanted to add we went with a 3 year loan but we want to pay it off sooner. What's up with does 5 year loans for cars? Is it just me that thinks it crazy?
    Emilie

    September Goals



    Master Card Pay Off

    Paid Off/2430.72

    Visa Pay Off

    9742.42/10436.32

  9. #99
    Registered User bee9984's Avatar
    Join Date
    Jan 2004
    Location
    Canada
    Age
    49
    Posts
    856
    Post Thanks / WTG / Hug
    Blog Entries
    5
    Rep Power
    11

    Default

    Quote Originally Posted by Suprise View Post
    I just wanted to debate the whole buying a beater car for cash or buying a car with financing. I think I could be placed in the middle of those two extremes.
    Hi Suprise I paid $3900 cash for my car back in 2006, it was 3 years old at the time. I have that same car today and it is now 9 years old. My car should last me another couple of years or so and as soon as I get everything going right with the baby steps I will be starting another car fund so that I can again pay cash for a used car. I just want to plan for the unexpected. I consider my car a beater even though it can get me to where I want to go etc. I have not had a car payment to pay in over 10 years and I wouldn't have it any other way now that I have tasted the freedom of not paying someone else interest to own a vehicle, instead I have/will be again paying myself the interest

  10. #100
    Registered User Suprise's Avatar
    Join Date
    Dec 2009
    Posts
    365
    Post Thanks / WTG / Hug
    Rep Power
    5

    Default

    Quote Originally Posted by bee9984 View Post
    Hi Suprise I paid $3900 cash for my car back in 2006, it was 3 years old at the time. I have that same car today and it is now 9 years old. My car should last me another couple of years or so and as soon as I get everything going right with the baby steps I will be starting another car fund so that I can again pay cash for a used car. I just want to plan for the unexpected. I consider my car a beater even though it can get me to where I want to go etc. I have not had a car payment to pay in over 10 years and I wouldn't have it any other way now that I have tasted the freedom of not paying someone else interest to own a vehicle, instead I have/will be again paying myself the interest
    That's a great purchase for sure. It was also our plan to save up the money for a newer used car but life always seems to throw bumps along the way and we just didn't have the time. I really want to pay our next car cash in about 8 years. If only I could kick my wine addiction, I could probably save enough money to buy one in one year.
    Emilie

    September Goals



    Master Card Pay Off

    Paid Off/2430.72

    Visa Pay Off

    9742.42/10436.32

  11. #101
    Registered User khaski's Avatar
    Join Date
    Sep 2008
    Posts
    1,688
    Post Thanks / WTG / Hug
    Rep Power
    16

    Default

    I disagree with step 2.1.....unless you're talking about quick, cheap, weekend within driving distance, or make a very large income, paying cash for a vacation when you only have $1k saved doesn't make a lot of sense to me. 'Vacations' generally cost a few thousand $s, depending on where you go and how many people in your family. Couldn't see paying more for a vacation than is in savings, even if paying in cash! I have no issue with saving for a vacation while building the EF.....


    Kill the mortgage! Goal: 12/2023 Left to go: $140,160.33 Extra paid: 2012- $4408.03 2013-$5396.21+ $400 extra towards escrow
    2014-$3168.76

  12. #102
    Rude and Vile Master Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    45
    Posts
    8,563
    Post Thanks / WTG / Hug
    Rep Power
    77

    Default

    Quote Originally Posted by khaski View Post
    I disagree with step 2.1.....unless you're talking about quick, cheap, weekend within driving distance, or make a very large income, paying cash for a vacation when you only have $1k saved doesn't make a lot of sense to me. 'Vacations' generally cost a few thousand $s, depending on where you go and how many people in your family. Couldn't see paying more for a vacation than is in savings, even if paying in cash! I have no issue with saving for a vacation while building the EF.....
    You aren't alone. Many DR followers think vacations should wait till after BS3.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"


    Greebo
    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
    WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three
    Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!

  13. #103
    Registered User khaski's Avatar
    Join Date
    Sep 2008
    Posts
    1,688
    Post Thanks / WTG / Hug
    Rep Power
    16

    Default

    We're doing them congruently, along with saving for retirement. Building the EF, saving for a 'big' vacation, saving for retirement. Not the way Dave would do it, but a way that works for us!


    Kill the mortgage! Goal: 12/2023 Left to go: $140,160.33 Extra paid: 2012- $4408.03 2013-$5396.21+ $400 extra towards escrow
    2014-$3168.76

  14. #104
    Registered User
    Join Date
    May 2008
    Posts
    345
    Post Thanks / WTG / Hug
    Rep Power
    7

    Default

    Quote Originally Posted by khaski View Post
    I disagree with step 2.1.....unless you're talking about quick, cheap, weekend within driving distance, or make a very large income, paying cash for a vacation when you only have $1k saved doesn't make a lot of sense to me. 'Vacations' generally cost a few thousand $s, depending on where you go and how many people in your family. Couldn't see paying more for a vacation than is in savings, even if paying in cash! I have no issue with saving for a vacation while building the EF.....
    We always pay cash for our vacations. We take a week-long vacation to a timeshare once or twice a year, plus almost a week to WI Dells with my dad (he pays the main portion as our Christmas gift, but the rest is our responsibility). We have 6 people in our family, and we are on Baby Step 3 now. We always drive to our destinations, and next summer we plan to either go to FL or to WA (driving and staying at a timeshare). But we save up for our vacations all year-long and pay out as the vacation comes up (or as we need to book things). We are a 1-income family making a modest income of <$70,000 with only 1 vehicle. I think the most we've ever paid for a vacation is like $600 or $700. That's including food, gas, timeshare trading & maintenance fees (divided up between how many vacations we do), and anything we want to do while gone.

  15. #105
    Registered User khaski's Avatar
    Join Date
    Sep 2008
    Posts
    1,688
    Post Thanks / WTG / Hug
    Rep Power
    16

    Default

    Right, so you do it congruently....and cheaply. I have been itching to go some place tropical, in the 7 years since our honeymoon we've been to Virginia Beach with friends for a week (drove) and camping one weekend (oh, and the week at in laws- a 16 hr drive away, and not exactly 'fun' but more of an obligation). We will most likely go to the Caribbean or FL in the next year, the next trip after that may be more 'on the cheap'.


    Kill the mortgage! Goal: 12/2023 Left to go: $140,160.33 Extra paid: 2012- $4408.03 2013-$5396.21+ $400 extra towards escrow
    2014-$3168.76

Page 7 of 8 FirstFirst ... 45678 LastLast

Similar Threads

  1. stolen baby jesus!!
    By sinopa27 in forum General Chat
    Replies: 4
    Last Post: 12-22-2009, 10:26 AM
  2. Baby Steps
    By GM97 in forum Question and Answer
    Replies: 5
    Last Post: 08-06-2008, 03:18 PM
  3. Military couple murdered in WA, baby stolen
    By StaceyS in forum General Chat
    Replies: 14
    Last Post: 03-05-2008, 11:35 AM
  4. Baby Steps?
    By nuisance26 in forum Debt Reduction & Money Management
    Replies: 3
    Last Post: 02-19-2007, 03:23 PM
  5. Baby steps-thanks to you all!
    By claimsgirl66 in forum Debt Reduction & Money Management
    Replies: 15
    Last Post: 02-09-2007, 03:24 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •