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Discussion Starter #1
My BEF is finally funded - yes it is only a baby emergency fund of $1k but it is fully funded. Now I need to work on my debt snowball while creating a fund for another 'new to me' car. My current vehicle has almost 300k miles and everyday I think I am going to end up walking.

So there are 2 things on my current plan
- put an extra $50 per month on my smallest bill - I have a number of credit cards. But the extra will help my snowball.
- start another savings account for the 'new to me' car. This has to be a priority because of the state of my car.
 

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Way to go! Keep posting your progress so you can give yourself a pat on the back. Sounds like you're making progress!
 
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Congratulations ...

I'd add a third to the list ... find further ways to spend less.

Cutting items off the spending plan is like decluttering the house. Every time I go one round, I find I can justify another round.
 

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Discussion Starter #5
Make a declaration about paying off debt and what happens - out of control life.

Thankfully, nothing broke but . . . my cell phone disappeared. The phone is at least 5 years old and has been very dependable but it disappeared off of my desk at work. I'm hoping it fell on the floor or something though I did look around, asked the front desk, even checked the bathroom - no phone. I'll check some more tomorrow.

I do have some good news -
I paid an extra $50 towards one of my CC's yesterday and put $100 into the car fund
 
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Life is always out of control ... being out of debt just makes it a little bit easier to cope.

Sorry about your phone. Do you have an upgrade available? Would you consider going to a pay-as-you-go plan?
 

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Discussion Starter #7
Well I found my phone but it did raise some things to consider. First, what do I do when this phone is no longer working or, heaven forbid, I really lose it. I am going to investigate a pay-as-you-go plan as pointed out by CookieLee. Second, I need to make sure all of the phone numbers are saved.
 
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A pay-as-you-go plan might be an option for you and depending on what you have on your current phone (text messaging, data, unlimited calling) you might be able to cut costs there as well and add more to your new to you car fund.

I agree with CookeLee, about spending less, dont buy things you "want" but rather that you need. Another thing I like to encourage is you can save on electric and food bills if you cook in bulk. I have many posts on here about food and my tip on electricity is turn all lights off when not in the room and unplug things not being used at the moment.
I have surge protectors all around my house with multiple items plugged into them. I don't need to have my tart burner and tv plugged in all night, so I power it off at night. You still use electricity when items are plugged in, whether they are turned on or not. Sorry, electricity is very expensive where I live so it's a major issue for me.
 

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I am kind of spoiled when it comes to phones. I feel like with work/school, I need a smart phone to be most efficient. I know I don't need it, but it helps! I compromised and bought a Virgin Mobile iPhone 4 off of ebay for about $75 and signed up for Virgin Mobile's unlimited talk, text, and data plan for $31.50 a month including tax ($5 a month off with autopay). I feel like I get the best of both worlds this way!
 

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Discussion Starter #10
Put an extra $50 towards my CC and added another $50 to my new2me auto account.

So . . .
cc balance on 9 cards - 39,583.54
emergency fund - $1k
new2me auto fund - $150
 
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So . . .
cc balance on 9 cards - 39,583.54
emergency fund - $1k
new2me auto fund - $150
So -- you left hand is borrowing money at 12% to 20% and your right hand is putting that money ($1150) into a 0.0001% savings account??
LOL - no wonder the younger generations are broke. :)
 

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Discussion Starter #12
Old Guy,
I would love to be in the younger generation but, fortunately, I am starting the 60's walk.

Yep - my spending rarely makes sense and paying off the cc's and saving for a car at the same time doesn't look good on paper - but my car with almost 300k miles on it is only going to last so long so have to start somewhere.

I do appreciate the input.
 
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but my car with almost 300k miles on it is only going to last so long so have to start somewhere.
Well, I wouldn't start by taking out a 20% cc loan, and stashing the money in a 0.0001% bank, lol.

We finance our cars - I get a 100% loan, I finance the down payment, tax & lic, everything, I drive away with zero outlay. Plus I sell the old car privately and add that money to our SP500 Fund. The Fund has averaged about 11%/yr for many decades - and the car loans are usually in the 4% to 6% range. So I've made a lot of money over the past 40+ years by borrowing at 5% and using the borrowed money to earn 11%. One time, in 1985, I tapped into our SP500 Fund and paid cash for a new car (we still had the jimmy carter 15% rates).
 

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I'm all for you paying off your $40K cc debt! Life will be so much easier without it.

I differ from Dave Ramsey and Old Guy in that I believe a $1000 emergency fund isn't big enough and I think the habit of saving money should continue even while trying to pay off debt. Unlike Old Guy, I don't believe borrowing money "saves" money - ever.

However, like Old Guy, I do agree that if you find yourself in need of replacing your car, buy new, take the 100% financing and pay it off early. I simply can't deal with vehicles that need repair so I buy new and drive them into the ground. Sometimes that means taking out a loan if we find ourselves buying before we can pay cash for the entire thing.
 

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Congratulations on funding your BEF. Most emergencies cost under $1,000. so that's a help to have that in savings. I think you're wise to be saving for a used car. I took public transportation last year after my 2004 Kia Rio died. I recently inherited a VW Beetle with only 26,000 miles on it. So, things can work out. Good luck with you debt snowball. I got a side job and cut things like cable, eating out, and lessons to get out of debt. You're on the right track. Hope you find a quality used car. If you let people know that you're looking, they might know of something. For example, my neighbor offered me his old Buick Le Sabre for about $2,000. It's in excellent condition. There are deals out there.
 
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