Stumbling on Step Three

**missmanny** · 01-31-2009, 10:41 PM

I just can not seem to get it together with step three of the DR baby steps.

So far I have saved the $1000 baby EF and then paid down all of my debt.

I did have the EF up to nearly 4 months of expenses and then it seems that I have had one bad thing after another happens and it all costs money.

right now I am at $2100 and need to get it up to $6000, my budgeted saving is $700 biweekly so it will take 6 pays to get this thing fully funded. what I wish I had was the motivation that I had when I was paying down the debt.

I have decided to kick start this by finding money and getting really intense with the plan. I am this afternoon going to list some un wanted Christmas gifts on ebay and then clean my house from top to bottom. (strangely I always manage to find money this way - be it small change or things that I no longer need but could sell).

I do have my stash of coins that I add to every now and then, it has been about 6 months since I cashed them in so I will do that next week and put them all into the EF account.

Hopefully that should be the jumpt start that I need.

if anyone has any other suggestions then I would love to hear them, how did you get through BS3?

QM · 01-31-2009, 10:45 PM

I have no suggestions because I'm not there yet, but CONGRATULATIONS! Each step has its hurdles and takes quite a bit to adapt to. You're doing amazing!...WOW!

**Debbie-cat** · 01-31-2009, 10:49 PM

All I can say is Congrats!!!!

**ladykemma2** · 02-01-2009, 07:35 AM

when i hit 10,000 in the emergency fund i had a credit card relapse, thinking "i could handle it, i had the money in the bank". From this, I learned i need to put breaks, rests and rewards, or else my inner kid rebels.

when i hit 10,000 this time, i plan to get a much coveted coach purse.

on another forum they were saying that step 3 is the hardest, to maintain the intensity when you're piling money in the bank.

**Cricketlegs** · 02-01-2009, 12:49 PM

You can do this. I know you can.

**missmanny** · 02-01-2009, 06:51 PM

Thanks Guys,

I am feeling a bit less stressed about the situation now. I just have to remind myself that just because there is no debt, with out the EF I am only one bad situation away from more debt.

I had $250 in coins that I will take to the bank this week and some stuff listed on ebay that will hopefully bring in at least $100 as well.

I am determined to cut right back and get intense on this.

Once it is in the bank then I can rest easier and start to plan and save for all the other things that I want.

**itlw8** · 02-02-2009, 02:39 PM

combine Dave Ramsey and others

Mary Hunt says you should have a Freedom Account AND the other account

Suze Orman says you should now in this economy have 6 to 8 months expenses in an account that you can access ( NOT IRA) but that is also not too esy to get to.

Then have a Mary Hunt Freedom account where you plan for those expenses like a car breaking down, Christmas, a new appliance, Vacation THAT is where you get the emergency money from. They other account is if you get sick or lose your job.

This is also where you would save money for the next cAR

This will prevent robbing the emergency account for wants and needs.

find a way to make it a game. a reward, auto deposits, Take it out FIRST before you spend on WANTS.

**missmanny** · 02-02-2009, 05:05 PM

Thanks for the suggestions itlw8.

I do have a sinking fund that I put money in for all of my irregular expenses sich as insurance, registration for the car, car maintenance and gifts/Christmas.

Unfortunately my emergencies (well one big one really) was a death in the family and I needed to travel interstate for the funeral / help out family members coping, it cost far more then I expected and had to come out of the EF fund because the sinking account just couldn't finance it.

I'm not bitter about having to go at all, I felt blessed that I was able to fly down at a minutes notice, stay in a hotel and hire a car etc - 12 months ago it would have been a completely different story, it has really hit home to me that the EF is important and now I want to get it knocked on the head, I am also feeling bad that I didn't put my head down and do it earlier (could have but chose just to skip along doing my own thing and thinking that I would eventually get there instead of just knuckling down and doing it)

**SheKat** · 02-03-2009, 08:39 AM

Pretend your a debt. Break it up into smaller random number that equal up to the 10,000. use some made up names ie. James Brown $178, Patricia Jones $534, Sunbream Coffee $321. Maybe even given them some minimum payments and then do the same snowball thing you did to get out of debt to save. Make it a game.

**Denvergirlie** · 02-03-2009, 09:37 AM

Step 3 has been a challenge for me as well.

Finally became debt free in August 2008. Made my payments into the FFEF in September then....
Wanted to go "home" for thanksgiving (1st time in 8 years) - plane tickets in Oct
Realized I purchased for wrong dates - new tickets in Nov
Large purchase our hand was tipped to make - Dec FFEF payment
Truck repairs put off in BS2 - Jan FFEF payment

Of course then their are the wants.. new TV, new bed, weekend trip... Haven't caved in on any of these but the temptation is still around in the back of my mind.

Then on Jan 15th, my company didn't make payroll.... we got paid 6 days later, but still it was a wake up call. (Jan 31st payroll was paid on time)

All motivation is back with force. I need that money in the bank and like yesterday.
However, I also need to be planning better for those sinking funds so when repairs/ other things come up I am prepared.

At least you are recognizing that life happens and need to be planned for better.
This is a plan, and plans need to be tweaked as we go along thru this journey called life.

At least you haven't acquired new debt!

**mommy4ever** · 02-03-2009, 10:00 AM

Perhaps a chart so you can see your progress? Color in a bar at every 5 hundred or so? Then you can visually see it grow.

And a little reward is in order too! Nothing to extravagant, perhaps a nice dinner out, or a trip to the salon. Just to acknowledge the great job you're doing. It's also somethign lo look forward to. When I break that next thousand, I'll be treating myself to ___________-

**itlw8** · 02-03-2009, 11:44 AM

Originally Posted by missmanny

Unfortunately my emergencies (well one big one really) was a death in the family and I needed to travel interstate for the funeral / help out family members coping, it cost far more then I expected and had to come out of the EF fund because the sinking account just couldn't finance it.

)

What does Suze Orman say People first.

Don't beat yourself up because you had it you could go. You are doing far better than most of us. And you will get there soon enough. just keep plugging away

look at it this way you did not have to charge it.

**missmanny** · 02-03-2009, 07:23 PM

Thanks for the suggestions everyone, I think that I will put a chart on the fridge, I also think that I will beef up my Sinking fund as well so that "I just didn't plan for this expense" things and not true emergencies can be covered so that I don't have to dip into the EF for those things.

**DixieChick** · 02-04-2009, 01:04 PM

I too have been struggling with this. I started DR 4 years ago, paid off all the credit cards in about a year, then funded the big EF to 10,000, then, somehow, got off track. I also started using a CC again, but I always paid it off every month. still. We took a $5000 trip to Disney last year, our first and only as a family. I'm glad we did it, but then I was down to about 4,000 in the EF. Now, I decided it is THE priority right now. I wrenched the budget of every available penny, sacrificing every month, and I have already, in one month, gotten it back up to about 7,000! I am now automatically going to save 900.00 out of every monthly paycheck. By the end of the year I will have my goal PLUS more! I wish I had done this the past couple of years so that now I would not have to be so stringent with money to do it, but I am DETERMINED to get it back up and PAST the 10,000 mark. It is easy to turn down going out to eat, clothes, etc, knowing that I will have a big CUSHION! After that, I attack the Home Equity Loan... grrrr....

**missmanny** · 02-04-2009, 05:51 PM

phew, I'm glad to see that I am not the only one who has a hard time with this, thanks fully with out the debt there is a lot of money each month to throw at the EF that is my only solace is that it grows so fast.

Once I have that nmoney in the bank I will continue to add a litytle to it each month I think but then start another savings account for future saving, house, cars etc.