Entering into 2011

**{Jenny}** · 12-27-2010, 06:53 PM

We have our plan, Dave Ramseys book at our side, and fingers crossed that neither my husband or I will become unemployed.

Our first plan is to build our emergency fund, then in the order listed below will tackle my college loans, my car, our mortgage, and the new college loan.

Emergency Fund: 0/1500
My College Loans: $69,000 [ouch!!]
My Car: $14,700
Our Mortgage: $100,000
NEW College Loan: will be $20,000+ on 9/2013

**Preston** · 12-28-2010, 03:28 AM

It may help to list the college loans individually. doesn't seem like as big of a mountain, just a series of hills.

**{Jenny}** · 12-28-2010, 04:16 AM

I like your description of the hills, Preston, vs that huge mountain that I feel over my head.

**Lindsey** · 12-28-2010, 04:35 AM

Good luck!

**khaski** · 12-28-2010, 08:30 AM

I think you're smart to build your EF a bit more than than the $1k suggested- ours is larger, it seems like disasters like to pile on top of each other and it seems $1k doesn't always cover it (if the car, and the water heater both want to act up at the same time, for instance). You can do it!!!!

**Greebo** · 12-28-2010, 08:32 AM

Originally Posted by {Jenny}

We have our plan, Dave Ramseys book at our side, and fingers crossed that neither my husband or I will become unemployed.

Our first plan is to build our emergency fund, then in the order listed below will tackle my college loans, my car, our mortgage, and the new college loan.

Emergency Fund: 0/1500
My College Loans: $69,000 [ouch!!]
My Car: $14,700
Our Mortgage: $100,000
NEW College Loan: will be $20,000+ on 9/2013

So you've got Dave's book but aren't following it?

Per Dave, the order should be:

Emergency Fund: 0/1500
My Car: $14,700
NEW College Loan: will be $20,000+ on 9/2013 (what do you mean NEW???)
My College Loans: $69,000 [ouch!!]
Fully funded Emergency Fund
Retirement funding
College funding for kids
Our Mortgage: $100,000

**{Jenny}** · 12-28-2010, 08:41 AM

Greebo, NEW college amount = I am presently in a Masters program, will complete the program 9/2013 with additional loans. You are correct, I have the book and am not following it precisley because the $650.00 monthly loan payment right now is what we need to lower first financially. As for kids college funding, that is included in our monthly budget right now, and hopefully she will stop changing her majors!!

**Mom23boys** · 12-28-2010, 10:01 AM

Originally Posted by {Jenny}

Greebo, NEW college amount = I am presently in a Masters program, will complete the program 9/2013 with additional loans.

Way to go on continuing your education!! I would love to continue and obtain my Masters, but am worried about the loans that seem to add up quickly.

I believe that in order to be successful with repaying your debt that you need to make the debt repayment plan something you BELIEVE you can actually do. I love Dave Ramsey, but I have not followed him to the letter either. I also like Suz Orman, so I take a little of her and a little of him and combine them to make it my own debt repayment plan. Good luck to you!!

**{Jenny}** · 12-28-2010, 11:20 AM

Hi Michelle!

I/We are probably not being very finanically savvy adding another $20,000 to our debt, but I know if I want to continue working as a Nurse for another 20-25 years I need my Masters as I know I will not be able to remain a clinical nurse [ie: on the floor in a psychiatric hospital].

I am technically in deferment as I have been in school since September, but we are still paying my loans in an attempt to not prolong the inevitable. I am not sure if this is normal or not, but my loans are not held by one company, we pay out monthly to three different agencies, and the combined total interest rate equals greater than my car loan and our personal loan interest rates so that was another reason why we have decided to tackle the college loans first. So for us this is what makes sense.

**Pianolady** · 12-29-2010, 10:50 AM

Originally Posted by {Jenny}

Greebo, NEW college amount = I am presently in a Masters program, will complete the program 9/2013 with additional loans. You are correct, I have the book and am not following it precisley because the $650.00 monthly loan payment right now is what we need to lower first financially. As for kids college funding, that is included in our monthly budget right now, and hopefully she will stop changing her majors!!

Getting rid of that $650 payment first is a good reason to "break a rule" imo. We did the same with a $478 monthly payment just to relax our monthly bills a bit. It turned out to be a very good move for us.