Maybe not the same page...

[ms.mel.who]

but at least we are both now using a notebook!!

My DH and I sat down and wrote down our financial goals and steps of action for the next year. There was some bickering and crossed arms, but we survived.

We both read the Dave Ramsey Total Money Makeover book. Well, I read it and he skimmed it. I knew he was not completely on board. SOO, I said we need a plan, it does not have to be Dave to the letter, but lets use that as a road map, and come up with our own plan. We did it!!

Here's the ways the plan contridicts with Dave:
1. We have $7000 in emergnency savings that we are not going to use for debt repayment, but not adding to right now while repaying.
2. We have two debts. A second mortgage @ 48,500, and a personal loan to his step-mom of $20,000 (it was 30, but we gave her 10 over the last couple of months). We are actually going to pay the larger debt first, because the terms of the personal loan are 0% interest, and the repayment has already been accelerated and settled much to the lenders contentment.
3. We have other non-retirement investments. We are not going to cash them out all at the same time, but quarterly. We just feel it is less risky, as the market may be on the rise and we are selling prematurely.
4. We can not give up 4% matching, but we are taking the retirement down from 7% to 4%.

Here are some of the other action points that agree with Dave
1. We changed our tax withholdings. We got almost 10k back last year. That is just dumb.
2. We stopped our college savings contribution, until we get the debt paid off and our retirement back to 10%.
3. We reviewed our budget, and agreed to meet monthly to go over how it went and how to change it if needed.

We think we can get the big loan knocked out in a year or less!! How exciting!
It just feels good to have a plan. When we have worked plans in the past, we paid off our credit cards, our cars, and our student loans. This is the plan this year, and then we will revisit next year and write down the goals again.
There is no way this is a Dave approved plan, but I think it will work for us.

[Ceashels]

I don't think Dave would disapprove though ! You are:

both reviewing the financial situation
both making goals for the year
both setting a plan into action.

Congratulations!

[handerson2005]

Congratulations! We have a 'modified' Dave Ramsey plan too. The most important thing is that you're working towards a common goal. Way to go!

[frugalfranny]

I knew he was not completely on board. SOO, I said we need a plan, it does not have to be Dave to the letter, but lets use that as a road map, and come up with our own plan. We did it!!

And the first step is always the most important one..........keep it up........

We will all be here to cheer you on.

[Ejagno]

I think you'll find that 90% of the people here have taken the basics of Dave Ramsey and used this as a foundation to build their own plan. As with all methods of doing anything, the important part is to customize it to fit your home and situation or it won't work. I know because whether it was organization, gardening, children or cooking one plan doesn't fit all and no matter how hard I tried I could not conform to someone elses life or tastes so I ended up using their ideas to build upon and customizing it to my lifestyle and taste and it worked out great every time. We are all different and that's the beauty of this world.

I have a debt that is 0% interest that I feel very strongly obligated to pay off first although it's not the smallest debt. Most people would say I'm nuts and that this is wrong. I struggled and tried it the Dave way but just couldn't sleep with myself at night knowing that I owed this other debt so I changed things up and I feel tremendously better now that I've made the decision to pay this one off first. This debt is to a dentist that I truly care for. In the middle of extensive dental work DH was laid off therefore the insurance cancelled with alot more to go. It's taken me 20 years to find a good dentist that I could trust after some terrible experiences in the past. She finished the dental work and there is not a single day that goes by that I'm not so thrilled to see my smile. I love smiling and I will pay her back as quickly as I can because she took that chance on me and broke the rules when she finished up my dental work knowing that there was no insurance. It's a moral obligation more than a financial one therefore it's one I plan to keep.

[dianne9106]

I think you need the emergency fund that is a comfortable to you and it sounds like $7K is a good amount. Good job on changing your withholdings and stopping contributing to college until you are debt free. They only thing I would change is paying off DH's stepmom first only because I think it's unsavory to owe a family member money - it is so much more personal IMO.
on sorting this out and getting with a plan!

[khaski]

I think a well thought out plan, any plan, towards reducing your debt and getting back your financial control over your life is a plan Dave would approve of! You guys have just done the hardest thing- admitting you're not headed in the direction you wish to be, and making a solid plan to correct that- congrats, and good luck on your journey!

[cottageliving]

Congrats on formulating a plan that will work for both you and your hubby, AND on committing to reviewing your situation every month and year end.

Keep us posted