Here we go...

[mountainman]

After talking with some friends of ours that have been on the Dave Ramsey plan for a while now and have had great success with it, my wife and I are going to do the same. We are going to start after things calm down after Christmas at the begining of 2012. I wanted to get some thoughts from people about our possion as we begin and how best to move quickly through the diffrent levels. Here is a quick break dwon of where we are going to start:
We are both in our mid 20's
We have one car payment with just under $3000 left on it. The other car is paid off
We carry no Credit Card debit as we pay it off at the end of each month.
We have no student loans
We bought a house in 2009 and have a balance of $148000 left on the house.
We currently are not invested in the Stock market in any way.
We have around $7000 in savings

I would really appreciate and ideas or information any of you would be willing to give.

Thank you!

[Incognito]

Welcome to the forum, and to getting your financial house in order.

Question #1: What is your monthly budget breakdown?

[Debbie-cat]

Hi and welcome to the village!

[khaski]

Sounds like you're ahead of the game already to start! Welcome- this is a great place to bounce ideas around and get feedback from those who have already made the journey (or are still on the road!). If you have friends following DR's plan, sounds like you've already got some support in your corner, plenty more here if you need it!

[Incognito]

2. What are your financial goals?
3. How do you use your time?


"Now, just keep chipping away.
Little by little, and day by day.
And the walls will come tumbling down,
Oh, what a wonderful sound."

[Russ]

Welcome to Frugal Village.

Wow, in your mid 20's and WAAAY ahead of the game in my opinion!

I think the best way to start is make out your budget and refine it for the next 3 months. Write down all of your expenditures so you know exactly where your money is going.

What's the interest rate on that car? How big is the payment?

Get your fully funded emergency fund in place. How much will depend on your comfort level but I think it is typically 3 or 6 months expenses.

[ladytoysdream]

Hi and welcome

Sounds like you are working a good plan already

Finish up the car payments. And then go after the mortgage.

Your current savings sounds good. Try to keep at least 2 or 3 months of living expenses sitting in there.

Not sure if you both work. If so, live off of one income, and use the other income to meet your goals.
Don't bet on job security. Always have a cushion of some kind.
And a plan A, plan B, etc

[MaryCarney]

If you've read/ seen /heard anything of the Ramsey plan, you know that you already have step one completed ($1000 baby emergency fund) and you could knock out step two tomorrow by taking $$ from savings and paying off that car. Two steps in one day - you are MILES ahead of the curve at your ages.
Congrats. Get one of Dave's books or sign up for FPU is your next step.
Congrats on being weird!!! (and I mean that in the nicest possible way)

[krbshappy71]

Welcome!! My two-bit advice, wean off that credit card habit. If you can pay off the balance every month as you say, switch to a debit card instead. I think its Ramsey's phrase, "don't play with snakes"

I didn't just play with them, I ate/drank/slept with them. It started out as a casual friendship and went too far. Stop the dabbling now!

[VanVivCam]

Welcome to the forum.

Hubby and I have been reading Total Money MakeOver....you may want to pick that up at a cheap bookstore and give it a go over.

Sounds like you are on really on your way to financial freedom. Just get your budget together and tweak it for the next little bit. I would take my extra savings and pay off the car...that way you will have NO payments other than the mortgage. Stop using those credit cards...store only one away if you feel like you need to.

Good luck!

[mateosbaby]

Welcome! I agree with the others who said to use the extra in savings beyond your baby EF and knock out that car loan. Then tweak your budget and work on getting the FFEF (fully funded emergency fund) done. That will get you to the end of Baby Step 3.

If you look at the Sticky here that Greebo started, you'll find the Expanded Baby Steps. You can use that as a guide since you're so far down the steps already. Check out which things you are missing and get those taken care of, and then you'll be set to keep going.

[peanut]

I agree...get rid of the car debt. Then go after the mortgage. If that $7000 savings represents your sinking fund I wouldn't use it. I'd cut back in day-to-day expenses and take the money from your regular paycheck to pay it off. But if it's an emergency fund, I'd pay off the car and then build it up again to 3-6 months of expenses level.

[Greebo]

Have you read The Total Money Makeover?

[quilt938]

you're in great shape other than a big mortgage(ok it's big to me but for some it's not!) I was in a lot better shape than I thought when I started a little over a year ago(want to finish the course) with a car payment and mortgage. I need to break the credit card habit and knuckle down with a budget.
after you read the book and go through the class you'll start seeing which baby step you're on - like funding retirement, saving for kids college, paying off mortgage, bigger emergency fund. it'll help you later on (missed this part myself) bout additional insurance and how much you need, etc
wish I could undo time and go back to my 20s'(45 now) and be in this kind of shape!

[MelissaS]

Wow, that is a really great place to be!! We (my husband and I) are in our mid 20's also and I wish we were in your shoes. We were when we first got married, we worked at paying off all of our debt except 3k on one CC. Then we bought a house, and the rest is history. UGH. Makes me sick just thinking about it. I would cut up your cards, except for one, and use debit. Then I would take the $ out of your 7k savings, to pay off that car. Good luck!!