Dave Ramsey Check-In: Share Your Progress on His Financial Plan!

[DebbieJ]

Thanks Janet!We were able to cashflow about $1k in medical bills and $900 in car repairs over the past two months. It feels so good! And we will be paying CASH for everything on our incentive cruise next month (well, debit card ) We should be out of debt by October or sooner! WOo hooo!!!!

 

[janetupnorth]

Go Debbie - we have a MUCH longer road on debt reduction...doesn't help that prices keep going up, but feels good to be on the right track and things get worse. I feel so relaxed this year vs. last year this time.

 

[DebbieJ]

I feel so relaxed this year vs. last year this time.

I am so glad to hear that! Having a plan brings such PEACE. :balloon:

 

[JAE]

Just thought I'd pipe in here. I listen to DR often on AM radio. I feel as if I could answer most questions people have on that show. Sometimes I wonder if the people who call in do actually listen, even though they say they do listen.
Anyway, I don't spend my PC money other than paying PC expenses. My emergency fund for step 1 is in my PC account. I just realized that the other day. Woo hoo! Our first and only debt is the arm loan on our house, so we didn't have to pay PMI. According to DR, if you have an arm loan, that's part of your debt to pay down. I'll be needing to reach my $4000/month in sales and become a director soon to pay that off. Then we'll be debt free except the house (in a couple years!?) My dh isn't totally on board, so I can't count his business debt. I don't even know what it is. He's not really in agreement with DH when it comes to that.

I probably could cut expenses and spend less money to save more, but too lazy right now. Just glad we don't have a car payment or cc's with a balance. I also have a fix it man for a husband, so we don't spend a lot on fixing our old cars. I drive a 2001 Aztek with lots of problems and over 115,000 miles. My dh drives a 1993 Plymouth Grand Voyager with way, way over 100,000 miles. Should probably use the tax rebate for paying down debt, but I think we'll buy a new bed. Ours is over 15 years old.

 

[sfdavis918]

Janet and Deb - you guys are doing great cash flowing your repairs! Good job!

JAE - it's hard to follow Dave's plan when DH isn't on board. Good for you guys though with no car payments and no cc balances!

We were expecting DH to get a bonus this month. It came, but turned out to be about $3k less than what was originally promised. Luckily we didn't spend it before we had it like we have in years past. We had to hit our EF a little when our term life ins payment came due in Feb. We were able to get the EF back to $1k this month though. Should be all done with debt by October as well. I can't wait!!!

 

[finley1991]

I started FPU on Monday!

 

[wadesgirl]

I sent my brother Dave Ramsey's book for his b-day. My sister gave me one for my b-day a few years ago. Poor brother is just out of college, his gf decides to go back to college so their bills are piling up. I haven't heard from him if he got the book yet or not.

I'm happy to say that one of my CC should be paid off in the next month or two! Since I paid my car off, I automatically send that payment to the CC just as if I was still paying on my car.

 

[SilverCeladon]

I really need to get on board with him. I love hearing all your success stories! Now, I know he has more than one book. Is there one that's best? I'm just going to bite the bullet and order it from Amazon.

 

[SilverCeladon]

Have you seen all the Dave Ramsey books on eBay? WOW! Now, should I get the workbook also?

 

[sfdavis918]

I would suggest starting with The Total Money Makeover. You definitely don't need the workbook. Everything is explained really well and you can do you budget just with lined paper and pencil. In fact, to begin with that is what Dave suggests.

Good Luck!

 

[SilverCeladon]

Thanks Sarah. Off to buy the book now!

 

[janetupnorth]

Well, in the last few weeks, I've gotten the kids money in CDs (they have small accounts started), got a new windshield for DH's truck - paid cash...paid for NC with Conference Club and cash and am hopefully starting to save for the upcoming roof repairs - yikes!!!!Still have debt I'll be working on for QUITE awhile but on solid ground with everything else. DH is chuckling at me and calling me "MOM" when I check on his spending or other things but is doing well with it all. (I'm the finance person in our household). I'm also working on saving some spending money for conference so I can pay cash (or debit card since I feel funny traveling with cash) while there...Now if someone from Deal or No Deal would drop by and want me on the show, I'm not going to refuse...

 

[finley1991]

I've paid cash for NC and leadership the last 3 years and LOVE not having any lingering items when I get home! Before I go, I make a written budget just for the trip. I'd be happy to share it with you if you're interested!!!! Let me know...PS: Last NC, I forgot to budget for taxi fare so I'll remember that this time! But I did come home from NC with $20 and from Leadership with $180!!! I over-budgeted for gas & parking for Leadership so that's why I ended up with so much. In any case, I'd be happy to share if anyone is interested!

 

[janetupnorth]

I've paid cash for NC and leadership the last 3 years and LOVE not having any lingering items when I get home!

Before I go, I make a written budget just for the trip. I'd be happy to share it with you if you're interested!!!! Let me know...

PS: Last NC, I forgot to budget for taxi fare so I'll remember that this time! But I did come home from NC with $20 and from Leadership with $180!!! I over-budgeted for gas & parking for Leadership so that's why I ended up with so much. In any case, I'd be happy to share if anyone is interested!

I'm good at budgets, but I'm open for checking for anything missed, please do share... Thanks in advance!!!!

 

[DebbieJ]

Great job ladies!I was just looking at our family's March budget. We didn't do too bad, but there are definitely places to tighten. I just love the freedom having a plan brings.Next up is actually doing some budgeting for my PC accounts.

 

[janetupnorth]

Great job ladies!

I was just looking at our family's March budget. We didn't do too bad, but there are definitely places to tighten.

I just love the freedom having a plan brings.



Next up is actually doing some budgeting for my PC accounts.

I have a "Business Expense" line in my personal budget where I allow for X amount to be spent for PC...and an income line for my commission. I am trying to make sure income is equaling or exceeding PC expenses...

 

[DebbieJ]

I have a separate acct for my PC business, so it needs its own budget. That way I can identify categories where I can trim the fat.

 

[janetupnorth]

I have a separate acct for my PC business, so it needs its own budget. That way I can identify categories where I can trim the fat.

I could probably "trim the fat" too but I've only bought products this year and it is my personal reward for doing PC. I'm sure once business increases for me I'll buckle down and make it a more strict "business budget".

I've been pretty good at spacing out and predicting my supplies so far...I have extras on some things but only things I bought cheap and can use!

 

[finley1991]

Here is my budget from Leadership... couldn't find National's one. And like I said, I'll have to factor in cab fare for the trip. Last year I also factored in water and sodas I would get from the machines... at leadership they usually have those out for us but since they don't do that at NC, I go to the vending machines. Anyway, hope this helps!

 

[finley1991]

Hmmm... says my excel spreadsheet isn't a valid type to upload so let me see if I can copy it into word...

Okay... let's see if this works!

 

[janetupnorth]

Hmmm... says my excel spreadsheet isn't a valid type to upload so let me see if I can copy it into word...

Okay... let's see if this works!

Just so you know most forums won't allow .xls sheets to be posted because it is easy to program macros and mini-viruses in them. You can post a .xls by zipping it (if you have XP right-click on the file and send to a zip file) then posting it.

 

[DebbieJ]

Thanks Colleen! That is helpful.(and this is post #6000 for me! )

 

[janetupnorth]

Yeah Debbie - yes, Colleen, it is helpful!...and this is um...post #8670 for me...I guess I talk more than Debbie!

 

[DebbieJ]

I only noticed because my star changed colors.

 

[janetupnorth]

I only noticed because my star changed colors.

Yeah, I like this star...one of my favorites...in absolutely NO rush to have a spumoni star...

 

[erinyourpclady]

So glad y'all bumped this thread! DH and I are in DIRE need of getting our proverbial you know what together in regards to our financial health. I am starting our emergency fund with our next paycheck!

 

[DebbieJ]

So glad y'all bumped this thread! DH and I are in DIRE need of getting our proverbial you know what together in regards to our financial health. I am starting our emergency fund with our next paycheck!

Erin, Dave is VERY supportive of the US Military and often runs specials for military folks. Last fall he offered free Financial Peace University for all military. WOW!!! So you should check him out. Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan. and see if he has any specials running.

 

[janetupnorth]

This was on our news last night:http://www.wjfw.com/stories.html?sku=20080325173840Although not 100% reality, it was a good lesson for the kids. They were amazed that 2 boys did their GIVING first and generously. The lady said, "What are you going to use to pay your bills the rest of the month." They said they'd have to make due.It is refreshing to see young ones realize the importance of giving first.

 

[janetupnorth]

I thought this was "cute" from the website (it answers the earlier Debit card question quite well)ebit Card Policy
We understand what is running through your mind right now."I can't believe Dave Ramsey is accepting credit cards! This can't be true! He's sold out on his principles!" But before you shave your head and run outside on your front lawn screaming, "The world is coming to an end, save yourself!" let's clear up a few things:Number 1 - We are NOT accepting credit cards! Never have and never will. I mean, come on, do you listen to the radio show at all? Have you ever heard of a plasectomy? Please understand that accepting credit cards is something that will NEVER happen as long as Dave is still alive (and even forever after that!)Number 2 - We are accepting DEBIT cards. We know that some people will go nuts when they hear that, but one factor is being overlooked. Debit cards do not work unless there is CASH available.Number 3 - It was time for us to align our company policy with the advice we give our listeners. Dave recommends the use of debit cards for several items such as, car rentals, hotel reservations, and internet purchases. Dave personally carries and uses debit cards for online and phone transactions. One day we realized, "Hey, we are telling people that it's okay to use debit cards for purchases, but we're not allowing people to do that with us."So don't worry! The Titanic is not rising, the sky is not falling and Ed McMahon is still not coming to your front door. We understand that some people will get upset over this decision. We also understand that some people will say we are selling out. However, all we are doing is simply aligning ourselves with the advice we give America.DEBIT means CASH. CREDIT means CREDIT - and honey, we don't do that around here!* The Lampo Group, Inc. and Dave Ramsey recognize that the Visa and MasterCard virtual monopoly on the debit card industries prohibits merchants from only taking debit cards. As such, it is impossible for us to ensure that every order has complied with our debit card policy. We trust that all of our customers hold EXCEEDINGLY high levels of INTEGRITY and maintain EXTRAORDINARILY high standards of TRUTH and HONESTY. Basically, anyone ordering from us who does not follow this policy is a shady and dishonest character. Don't put yourself in this group. You're better than that. Stick to our policy, NO CREDIT CARDS, and make us all happy.

 

[DebbieJ]

bumping back up since we're all getting our stimulus rebates soon. mine is going straight to mastercard. We're down to our last debt and should have it GONE by Thanksgiving!!!

 

[janetupnorth]

bumping back up since we're all getting our stimulus rebates soon. mine is going straight to mastercard. We're down to our last debt and should have it GONE by Thanksgiving!!!

Uh yeah, mine WOULD go straight there normally, but it is going straight to roof repair...so much for replacing my 13-14 year old carpeting this year...

 

[DebbieJ]

Uh yeah, mine WOULD go straight there normally, but it is going straight to roof repair...so much for replacing my 13-14 year old carpeting this year...

That's okay, Janet. You're paying CASH for your roof repair, so it's all good!

 

[sfdavis918]

I am using it to pay for my flight to Chicago and then the rest will go to pay down the Tahoe. It should be done by the end of the year also!!

 

[DebbieJ]

hey everyone! How is your TMMO going?We are down to our last $4k in debt! Working hard on TPC gave me a great commission check earlier this week and 1/3 of it has already been sent to Mastercard. We also sold a set of furniture and that helped too.

 

[finley1991]

Nice Job Deb!!!!!!

 

[DebbieJ]

Thanks Colleen! I was just reminded of this thread here cuz I just responded to yours over there.

 

[janetupnorth]

Good job Debbie!We're still in our same state of debt but making full use of our emergency fund over and over again. It's been good not to borrow, but I'd LOVE to start reducing debt!

 

[katie0128]

We used the stimulus check to pay off some medical bills, gas/electric bill and cell phones and now are down to the last $200 - yes my friends, I said $200 - in debt (other than school loan and mortgage)!!! WAHOO!!!

Now that I'm the financial secretary at church and record everyone's tithes and offerings, I realized how sporatic I was in my giving. So I setup the e-giving thing that I manage for church and I have been absolutely amazed how I really don't miss the money! I thought for sure I would notice being a few hundred dollars "short" each month, but I haven't. God hasn't blessed us with extra, but we have just enough for the bills each month! YEA!!!

 

[DebbieJ]

Katie, that is great. Your faithfulness will be rewarded!

 

[crystalscookingnow]

I have been doing this sort of thing as well. We've been paying cash or using debit card for everything, no credit. We've only got our van & land payment left. Then we're debt free.

I used a PC commission check to pay off a CC. Yesterday, I received a letter from the CC company stating that they noticed we made a large payment to them & they hoped they weren't losing our business. Um, yep. You are.

 

[katie0128]

Paying off the CCs was one of the best feelings ever!!! We did that a few years ago (before we even knew about DR) and haven't had one since. I did apply for the PC card and got it in the mail, but could never bring myself to activate it. It felt wrong and made my stomach do flips when I would even see the envelope on my desk. Ended up shredding the card and cancelling the account!

 

[aPamperedBride]

Just read the whole thread...really do need to go to bed now!

Kudo's to everyone who is eliminating debt! I got my first CC before going out of state for college. I had a joint card w/ my Dad and he got the bill...talk about incentive not to splurge! My father taught me to always pay off CC in full each month...they are for convenience and not credit! I had to laugh that I can't guy Dave Ramsey's stuff since I don't have an active debit card! But I have always treated my CC as cash, paying off in full while getting airline miles, gift cards, etc as a bonus for managing my money well. Not having to budget to the penny provides me w/ a lot of mental freedom since I can be really detail-oriented. (I once spent over an hour tracking down a 6 cent difference when balancing my check book).

Shocked to read about a bad experience w/ a Honda Accord. Mine's a 1998 with 141,000+ miles on it and the biggest problem I've had is dead batteries (blame the TX heat rather than the car). DH drives a 1978 Chevy Malibu. Yes, that's right, his car is 30 years old (no doubt older than some consultants on this site). He says that the best kind of car in the world is a paid for car!

I'm not in complete agreement with DR or Crown's plan since we're focusing on the mortgage before DH's student loan. But think about it...when we pay off the mortgage early, we OWN the house. When we pay off the student loan early, we have no equity in it; the debt is simply retired. Home is financed at 5.5% while SL is 3.375% and the interest on both items is tax deductible...so we're applying the principal of paying off the higher interest rate first (I know the snowball idea is to get rid of the little ones first to throw more at the next one, but that's really more about encouraging the person in debt to keep following the principles than the best financial approach). We'll save more $$ this way in the long run.

As an FYI, you do NOT have to budget for a taxi for NC. You can take the elevated train and save lots of $$$. If you are staying at the Chicago Hilton, the Roosevelt station on the orange line is just 2 blocks away! I can't recall what the stop near the Sheraton is right now, but if you need info on taking the train, PM me and I'll find the info for you. It is so easy and cheap to use public transport in Chicago. I've taken the train from O'Hare and from Midway to downtown before and would only consider going in a car if I was with a bunch of consultants I knew and we got a good deal on a limo!

That's just about all my random thoughts...except for Janet's post about her husband being unable to remember their wedding date. The inside of my husband's ring is inscribed "Carol loves John 8-23-03." When the subject of rings or anniversaries comes up, DH tells others that I am so smart b/c I had it engraved inside the ring so that he can't forget!

 

[finley1991]

I'm not in complete agreement with DR or Crown's plan since we're focusing on the mortgage before DH's student loan. But think about it...when we pay off the mortgage early, we OWN the house. When we pay off the student loan early, we have no equity in it; the debt is simply retired. Home is financed at 5.5% while SL is 3.375% and the interest on both items is tax deductible...so we're applying the principal of paying off the higher interest rate first (I know the snowball idea is to get rid of the little ones first to throw more at the next one, but that's really more about encouraging the person in debt to keep following the principles than the best financial approach). We'll save more $$ this way in the long run.

It's great that you're able to manage your finances so well... not everyone has the discipline or know-how to do that and that is why it's great that there are people out there sharing their successes so others can follow the same plan. That's the great thing about personal finance. It's PERSONAL and everyone can do it the way that works best for them.

I quoted the above because you might want to check into Dave Ramsey and WHY he says what he says about that. Yes, paying interest IS tax deductible... buy you end up paying MORE in interest than you would in taxes. Here's an example:

Mortgage Amount: $200,000
Interest Rate: 5%
Annual Interest Paid: $10,000
** Mortgage interest is tax-deductible, so you would not have to pay taxes on this $10,000. This is why so many people say to keep the mortgage. What does it really save you? See below:

Taxable Amount: $10,000
Tax Bracket: 25%
Annual Taxes Paid: $2,500
** So if you're keeping your mortgage just for the "tax advantages," all you are really doing is sending $10,000 to the bank instead of $2,500 to the IRS. Where is the ADVANTAGE?

But like I said, personal finance is personal and everyone has to do what's best for them. And as you said, you'll be saving more money in the long run, right?

 

[janetupnorth]

That's just about all my random thoughts...except for Janet's post about her husband being unable to remember their wedding date. The inside of my husband's ring is inscribed "Carol loves John 8-23-03." When the subject of rings or anniversaries comes up, DH tells others that I am so smart b/c I had it engraved inside the ring so that he can't forget!

Oh, it is in his too...problem is getting it off his finger to look! (He finally remembers now...)

 

[aPamperedBride]

Yes, paying interest IS tax deductible... buy you end up paying MORE in interest than you would in taxes. Here's an example:

Mortgage Amount: $200,000
Interest Rate: 5%
Annual Interest Paid: $10,000
** Mortgage interest is tax-deductible, so you would not have to pay taxes on this $10,000. This is why so many people say to keep the mortgage. What does it really save you? See below:

Taxable Amount: $10,000
Tax Bracket: 25%
Annual Taxes Paid: $2,500
** So if you're keeping your mortgage just for the "tax advantages," all you are really doing is sending $10,000 to the bank instead of $2,500 to the IRS. Where is the ADVANTAGE?

But like I said, personal finance is personal and everyone has to do what's best for them. And as you said, you'll be saving more money in the long run, right?

I completely agree with you! It's much better to pay off the mortgage and have the extra $10K than to keep paying on the house for a $2500 tax savings. The extra $10K can go to a charity if you really need the deduction while you don't have the weight of debt over your head.

My point was that if you have to choose between paying down two interest-deductible debts, then the one with the higher interest should be paid first because it is costing you more.
5.5% - 3.375% = 2.125%
I'm "saving" 2.125% while paying down the mortgage because I'm applying extra to it instead of the lower interest rate student loan. Both have tax-deductible interest. There is no advantage I see to paying off the student loan first since I won't own anything when it is paid off and since both the amount and the interest rate are lower than the mortgage. But most financial advisors tell you to get rid of all debt except the mortgage, then work on paying the mortgage off to be completely debt-free.

 

[janetupnorth]

So, how did everyone do through NC 2008 and vacations?I did pretty well. Brought mainly cash on my trip and only used a card twice to get gas (planned that way as to not carry too much cash).I'm moving toward the "envelope" system in my life. I still haven't done well on any debt reduction, but I haven't increased the debt either. We keep having emergencies pop up but at least I'm not borrowing to pay them.However, I did escrow property taxes and house insurance finally so when the end of the year comes, I will have what I normally gather for that going to debt instead - yeah!Now, I REALLY need to find time to clean my house and sell all the things we don't use - that would help reduce clutter and debt!

 

[DebbieJ]

We're trucking along....May was a great month but June not so much. July isn't looking good either. DH has had some car repairs to deal with, but at least we've paid them in cash. The best news is that our church board agreed to sponsor an FPU class in the fall!!!! DH and I will facilitate! Yay God!

 

[janetupnorth]

We're trucking along....May was a great month but June not so much. July isn't looking good either. DH has had some car repairs to deal with, but at least we've paid them in cash.

The best news is that our church board agreed to sponsor an FPU class in the fall!!!! DH and I will facilitate! Yay God!

Wonderful!

Your post with the pictures made me think of you and this thread again.
...and the fact that over the last 2 weeks I've been focusing on using cash for things and getting that "set amount" ahead of time.

 

[janetupnorth]

Also the realization that it costs me $8.30 in gas to go into town and back right now made me think too. I spend about $90 a week just to get to and from work, so I try to limit any other running around. I cannot cut the miles I travel so I have to look at other things.I figure the $10 I spend to go to church on Sunday is well-invested.

 

[DebbieJ]

So excited! We're starting to promote our FPU class. We are showing a video at church tomorrow--just a 1 min promo during the service and I will speak. I can't wait!