New! Motivated! 1 small problem :(

**Morgan_M** · 08-11-2010, 02:30 PM

My husband and I read Dave Ramsey's TMMO and we are motivated to get going on this.

Problem: We are behind on payments

Good thing: We make enough monthly to pay all of our bills including retirement and insurance and also have a little left over for savings and such.

We've had some unexpected expenses that we weren't prepared for. We also made some bad decisions (vacations) and now we are stuck trying to play catch up. We had the option to get an advanced paycheck before going on vacation. We did, and spent it all, so to top things off we are short one paycheck this month. From what we can figure, if we skip a bunch of bills, we'll barely be able to make LAST MONTHS mortgage payment by the end of this month.

I know we've made horrid decisions. Please don't judge me

We want to do better.

I just don't know where we should start, since we are already so behind. It will take us several months to catch up with everything. Is that our first step? Just taking the several months to catch up so that we can begin budgeting wisely? Are there any tips for this?

We are looking forward to starting the 'snowball effect'....it's just going to be hard getting caught up to get to that point.

Anyway, sorry for rambling...we are just feeling really motivated right now!

**Luv2BeFrugal** · 08-11-2010, 02:53 PM

Well, sounds like you're headed in the right direction! And the people here will really help keep you on track. If you post your monthly expenses, income, and outstanding debts there are several people here who are GREAT at helping with that stuff.

I would recommend getting a copy of "The Tightwad Gazette" (from your library, of course!) and reading through it...if nothing else than to get you brain-storming about what you can cut back on and/or make yourself.

I'd definitely recommend stop eating out at all, don't drive unless you HAVE to (like work), and start looking for some side jobs (lawn mowing, house cleaning, babysitting, etc.) to help you get caught up on your bills.

Glad you've joined us at the Village!!

Welcome!!

**Russ** · 08-11-2010, 02:57 PM

Welcome to Frugal Village Morgan!

Nobody will judge you here, but a lot will try to help with some good advice.

Start here> First thing to getting rid of DEBT

Start writing down all your debts and expenses. Every penny.
You'll find places in your budget that are not "NEEDS" but "Wants".

Glad you joined us!

**Russ** · 08-11-2010, 03:06 PM

In general...
Fund your emergency fund.
Pay minimums on the bills that you can.
Consider stopping the retirement until you get current on all bills. No point saving for retirement if you're paying late fees.
Earn extra money. Can either of you do this?
Cut expenses. Look at EVERYTHING. Example: A lot of folks unplug ANYTHING not in use. Or they put it on a power strip with a switch. Save electric.

Read the forums! There are a lot of "stickys" at the top of every sub fourm. These are threads that are very helpful and full of good info.

**Morgan_M** · 08-11-2010, 03:17 PM

Thank you!

I appreciate all of the suggestions! I will definitely go check out that book from the library. I'm willing to read/watch anything that will give us some ideas.

We have a few things we can sell, though it won't equal more than a couple hundred dollars at the most.

I will put together a rough budget (this will be our first budget, so I'm not even sure where to begin)

I have some skills that I can use to sell some items on ebay...it won't bring in a lot, but every dollar helps, right?

I stay at home with the kids. My DH works full time. He's also looking for a temporary extra job right now, but hasn't had any luck yet.

**dcompton** · 08-11-2010, 04:08 PM

I agree with Russ that if the retirement is optional (not mandatory through work) you should stop that until you get caught up, and probably until after you get an emergency fund in place.

**Greebo** · 08-11-2010, 04:14 PM

Originally Posted by dcompton

I agree with Russ that if the retirement is optional (not mandatory through work) you should stop that until you get caught up, and probably until after you get an emergency fund in place.

It sounds to me like Russ recommended the same thing, so I'm not sure what it is with which you do not agree.

**dcompton** · 08-11-2010, 05:52 PM

Eh? I said I agreed with Russ. I was just seconding his suggestion.

**kita** · 08-11-2010, 06:28 PM

Call your creditor's. It is better to e in contact with them and let them know that this situation is temporary.
And I would sell those items for cash and keep it for the emergency fund. Even a couple of hundred bucks will help you if something else unplanned for happens.
Since your issue is the next three months, look for part-time work. Even a call center job can be endured for a few months to catch up and fund the BEF. Look at Craig's list for short termgigs. Sell plasma.
And post a budget. People wiill make suggestions. YOu may not like all of them but all of them should give you pause for thought.

**Imarachne** · 08-11-2010, 06:38 PM

Welcome to the Village !! You are in the friend zone--so many of this group are ready to help you and encourage you .

**ecgsmama** · 08-11-2010, 08:19 PM

Doesn't Dave give "bare bones" prioritizing....something like shelter, food, etc when you are behind on payments and trying to decide who gets paid and who doesn't?

The idea being it is more important to keep your house than lose your cable. If these are the types of decisions you are facing, keep this in mind.

And read, read, read. Once you start looking for information, you will find more than enough to help you cut your budget. Just pace yourself...

Can anyone be more specific regarding Dave's advice when you are in this situation?

**Greebo** · 08-11-2010, 09:14 PM

Originally Posted by dcompton

Eh? I said I agreed with Russ. I was just seconding his suggestion.

Yes, evidently, I simply can't read today...

**McD** · 08-11-2010, 09:25 PM

Greebo is falliable!!!!!!!!!!!!! Mwahahahahaha!

Figure out what you have coming in versus what you have going out. Cut all unneccesary expenditures.

If it's something you are comfortable doing, post your income and your expenses. No specifics--just generalities like mortgage XXXX$.

We are pretty good about helping people realize the difference between wants vs needs and may have stopped something you've missed.

Good luck!

**joyofsix** · 08-11-2010, 10:21 PM

Great advice you've gotten. The hard part is following it. You've got to change behavior and it ain't easy. Now that school is back see if you can pick up some before and after school babysitting. It doesn't tie up your whole day but brings in some $$. Sell everything, every bit helps. Prioritize~food, shelter, lights, car (gas) to get to work then everything else. Hang in there and come back with specifics. There are some awesome frugal minds here.

**AnW819** · 08-11-2010, 11:42 PM

Welcome! No one will judge you!! This is a judge free zone

You have been given some great advice (and advice that has helped me much!) so I can just provide some hugs!

Dave Ramsey is great! I love him books, and they are so motivating. I would say catch up on your current bills and then start your baby emergancy fund. I believe that is what Dave says..someone correct me if I am wrong? That is what I am doing anyway. I was way behind on all bills, and I am really close to being caught up! So in the next week or two I will start my $1000 EF!

I also agree with posting your budget if you are comfortable with that. That was a major help for me when I posted mine!

Good luck to you!