Dave Ramsey Peas - week of February 4

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Posted 2/4/2013 by Runner5 in NSBR Board
 

Runner5
Pea All You Can Pea!

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April 2002
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Posted: 2/4/2013 8:23:30 AM
Just kicking off this thread before heading out to the eye doctor ... I'll come back with an update later.

Do you have any updates on your current baby step?

Are you satisfied with the progress you're making?

Even if you aren't on baby step 6, consider finding out your mortgage balance (if you have a mortgage) as that's another debt that will get smaller each month as it's paid.


Mary




UkSue
Ancient Ancestor of Pea

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Posted: 2/4/2013 8:46:23 AM
I don't get my mortgage balance until the end of March.

I did an inventory of my cupboards and freezer yesterday, and worked out meals from it. Just buying sme fresh veg to supplement the frozen ( I have 2 bowls of fresh fruit, and quite a bit of salad) and buying fresh bread and milk, I am going to prepare all our meals for the next 2 weeks from what I already have. This should give me £120 to throw at my smallest debt, which is currently £334.73. Along with my regular payments and the extra from paying off another card last month, I should be able to knock that card on the head by Mid-March, leaving me with just two. My ex had said he was paying these off for me, but he has completely gone back on what he said at he moment, so I am just going to throw my own resources at it. Feels good!


It's not the passage of time that heals. It's what you do with that time.

~Laurie~
aka momtoemily

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Posted: 2/4/2013 9:11:49 AM
I finished reading Total Money Makeover this weekend so I am pumped up. On Friday dh and I had to go a funeral that was 120 miles away and I was able to talk him in to listening to the FPU audio CD's. He was motivated and inspired by it. I was hopeful that he would see the light about saving and paying off our mortgage early. It was short lived because on the way home he went into a store to look for a shirt for a baptism we had yesterday. I stayed out in the car and he came out with a shirt and 2 pair of shoes.

I was mad and really wanted to say you are so inspired to pay off our mortgage but how do you expect buying a shirt and 2 pair of shoes is going to get us there? I kept my mouth shut though because he has to figure this out himself. About a half hour later he did say that he was so motivated to do the Ramsey plan and then went and bought that stuff. He was mad at himself.

Last night I plugged our numbers into the software that would run the debt snowball. I thought it wouldn't be bad since we don't have a lot of CC debt. However, we do have 2 car loans, student loans and our mortgage. The result was 9 years. I will be honest I was expecting about 6-7 so I was a little disappointed.

So, the winds have been taken out my sail a little bit. I am going to shake it off and move forward. The toughest part is going to be keeping my dh on the straight and narrow. He has a serious want vs need problem though. He feels that he works hard and we have the money in checking so if he wants something he is going to buy it.



Laurie


Pretty In PeaNK

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Posted: 2/4/2013 10:46:48 AM
We've been on step 2 for about a year, and we will be able to pay off the remainder when our tax return arrives. We're excited to shout "we are debt free!"

I also just found out we'll be inheriting a decent amount of money, so that takes are of step 3, too, with enough left over to upgrade our current "Dave" car, in cash.

I'm really grateful we figured this stuff out early in our lives, because 5 years ago, we would have just spent all the money, and would still be in debt.

Oh, and since we're just weeks away from step 4, I played with numbers on Dave Ramsey's investment calculator and I'm shocked at how quickly our retirement savings will grow once we put money that was once for debt into retirement.

Sorry, can't hyperlink on my phone. Here's the calculator:

http://www.daveramsey.com/article/will-your-savings-give-you-the-retirement-you-want/lifeandmoney_investing?atid=davesays

Good luck everyone. Keep living like no one else so you can live like no one else.


"How are we going to get rid of racism? Stop talking about it!"--Morgan Freeman
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Runner5
Pea All You Can Pea!

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April 2002
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Posted: 2/4/2013 11:49:33 AM

Along with my regular payments and the extra from paying off another card last month, I should be able to knock that card on the head by Mid-March, leaving me with just two.


That's great UKSue!

Laurie - I know for me, I see sawed back and forth. I'm really pumped up too but as soon as I walk in a store, a little switch goes off and it's like I forget I who I am.

I copied our spreadsheets and and the financial PC app I use onto a bright blue USB drive. I keep it clipped to my keys. It's a strong visual reminder of our financial goals (and it's bright blue to represent optimism, blue skies, etc.) I still don't go out without it.

Maybe you both need a strategy. Many couples use cash envelopes. If the money is in the envelope (and you do have to budget for clothing) than it's fine to spend. The decision was made in your budget meeting. Otherwise, it has to wait until the envelope gets refilled. We go by the "available to spend" report on the app I mentioned. I put it in DropBox so we can both see the numbers on our smartphones. We've learned the question is "what does that report say?" If you're on cash envelopes, you just learn to grab the envelope and have a look.

Have you two gone to FPU together? The budget audio CD covers it too.


Mary




Runner5
Pea All You Can Pea!

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April 2002
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Posted: 2/4/2013 12:05:11 PM
Congratulations PrettyInPink - that's a huge change suddenly!!

I think I need a spreadsheet to manage my own update. I'm always wondering if I already posted such and such.

We made our mortgage payment and realized we had paid down almost 10% of the balance in January. The extra came from some money DH got from flipping his car plus we had an extra week in January.

Now I'm searching for more snowflakes to throw at it. It was funny - I made an extra payment of $20.71 and then the other extra money seemed to appear out of nowhere (I was pretty sure I was going to have to use that extra week for gas money back and forth to Knoxville. Somehow we had enough.)

The balance is now $34,475. It really starts to fall faster as you get near the end.



Mary




~Laurie~
aka momtoemily

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Posted: 2/4/2013 1:12:46 PM

Have you two gone to FPU together? The budget audio CD covers it too.


No. We just finished disc 2 on Friday and I think the budget CD is around disc 4.

Dh is hesitant about the envelopes but willing to give it a try. I had everything set up with payroll to have part of my paycheck deposited to the local bank here in town. This will be the envelope money. Currently we bank 30 miles away and every time we get cash at the ATM where we live it is $4 in fees. Something fell through and it didn't happen. Hoping it is fixed by the 15th.

That is a good idea about the budget. I currently have our budget on my USB stick and I always have that stick either in my pocket or my purse. Maybe I need to make it more visible though.

I am a math nerd so I am always playing around with our numbers and budget. While listening to the cd about nerds and free spirits dh kept saying this is us to a tee.


Laurie


Runner5
Pea All You Can Pea!

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April 2002
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Posted: 2/4/2013 1:51:33 PM
I wouldn't be too upset with your DH at this point.

If there is any way you could go to FPU together, that would be huge. It teaches you how to work together as a team.

The budget CD is really good too.

I knew DH had finally bought in when he started updating a white board in the kitchen with our mortgage numbers. There's something about seeing the goals in writing posted somewhere where they're visible to everyone. You all get into it and start celebrating every extra dollar you can put towards that goal.

I'm the nerd in our family with a free spirit DH too. I know it can be frustrating. I used to feel like I had to be the heavy telling everyone no.

Now I just let the app do it. I ask "what does the computer say?" It works!


Mary




treyzmom
BucketHead

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Posted: 2/5/2013 2:53:07 PM
I missed this earlier!

Laurie--do you have a smart phone or ipad? We just started using the mint.com app. It's also available online so you can look at it before you download--it's also free. I'm the nerd and dh is the free spirit...who also happens to be a techie. Mint has helped us communicate better about where we are in the budget. It's not so complicated that I hate using it (though it feeds my inner nerd) and it's techie enough that dh likes it too. Plus...we have it on both of our phones, so it's always right there. Part of the struggle for us is just staying on the same page. This has helped a lot--but I know everyone is different, so I hope you find what works for you!

My update: between a paycheck with a lot of overtime and our tax refund coming back earlier than anticipated, we now have our small EF covered. YAY! The funds came in unexpectedly, so we haven't settled our plans for it yet. I don't want to spend without thinking or be afraid to spend on some necessary, agreed on things. Just keeping things in balance wil be important.

mlana
PeaFixture

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Posted: 2/5/2013 3:23:42 PM
Laurie,

We don't DR, but early in our marriage we followed a long forgotten financial guru who advocated a similar system. My DH is a hard worker, but he likes to spend money on his family and he had a lot of trouble "remembering" our plan when he saw something he thought one of us would like. I handled the money because I have an accounting background, so I think he might have had a bit of feeling like he was "whipped" going on, too, and making unapproved purchases was his way of occasionally reasserting his manhood. LOL

We reached a compromise that has worked for us ever since. Once a week, he takes an allowance out of the bank. This allowance has to cover his gas and food for the week, as well as any unapproved purchases he chooses to make. He cannot borrow against his future allowances and he has to get approval to use a credit card and pay me back with allowance money before he does it. Any money left at the end of the week is his, and I don't ask any questions about how he spent his allowance. If he needs a raise, he saves his receipts for a month and uses them to prove his point. This has had to happen a few times over the years as gas was something like $0.89/ gal when we originally started this plan.

DH doesn't use credit cards for anything but business purchases, and he has to clear anything over $100 with me first. Both of us realize that he doesn't equate cc purchases with spending real money, so he has no cards in his name and never will. He is a good sport about it and that is what makes it possible for us to work together.

The once weekly withdrawal is easy for me to budget and is even easier to track. Getting on board with a budget was easy for me, I grew up with a mom who included me in the family budgeting process, but DH didn't and he had a lot more trouble embracing the concept of delayed gratification. Over the years, though, he has seen firsthand how well it works and he has become a big advocate of planned spending.

Marcy



JnJsMom16
BucketHead

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Posted: 2/5/2013 9:01:51 PM
we go to our 3rd class tomorrow. we are talking a lot about things and I think we are moving toward the same goals. Have baby step 1, paid 1 card off last month and another will be next month. just leaves a home equity loan for a kitchen (not a bunch of cc) and a car payment. I feel better now that we are going to have a plan and hopefully be down to the mortgage and paying that off. I think DH was worried that I thought we were (he was) doing something wrong, but I reasurred him that I dont think we have but that I want more savings and a plan.


Kimber
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