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

[DebbieJ]

Ouchie, Colleen. My DH drives a 98 VW and I drive a 2000 Honda, both paid for They've been paid for for quite some time and we like it that way.I had borrowed my mom's Odyssey for a couple weeks while we were moving--she has a DVD player in it and DS LOVED watching Bob the Builder in the car When we were switching back to my CR-V I told DS sorry we didn't have a DVD player but we were goign to stick with this car cuz it's paid for. He was so funny, he said "yeah, but we have a light!" He was referring to the dome light in the ceiling. My mom and I burst out laughing!I will NEVER EVER EVER EVER EVER buy a brand new car. You lose money the minute you drive off the lot.

 

[janetupnorth]

He-he - we drive a '97 and a '94. The '94 was an upgrade last year from an '89. Our motorcycle is an '82.

 

[SilverCeladon]

I have an 05 Yukon. We only have 2.5 years left on it. I didn't want a car payment but DH did. I was driving a paid off 98 Civic. I told my husband we're sticking with this car until it dies!

 

[wadesgirl]

I have a friend that even though they had two older (less than 8 years old!) that were fine, she had to have a new SUV because she felt like a bad mother for picking up her kids at day care in a car that old! She really does like to keep up with the Jones!

 

[DebbieJ]

I have an 05 Yukon. We only have 2.5 years left on it. I didn't want a car payment but DH did. I was driving a paid off 98 Civic. I told my husband we're sticking with this car until it dies!

or sell it and get something cheaper aka paid for

 

[SilverCeladon]

I could but we won't. I do love it and it's not like I can't buy groceries because of my car payment-that would be a whole different story then. I just want to learn to be better with my money overall.

 

[finley1991]

I bought one new car in my life and it ended up being a lemon! Go figure!My current '99 I got in '05 with 45k miles on it. It was cheaper than a new car and I got it for 1/3 what the original buyer bought it for! TOTAL SCORE!!!

 

[DebbieJ]

My current '99 I got in '05 with 45k miles on it. It was cheaper than a new car and I got it for 1/3 what the original buyer bought it for! TOTAL SCORE!!!

That IS a total score. The best way to buy a new-to-you car is from an elderly person who is selling it privately. They are usually very well kept with low miles.

 

[chefann]

That IS a total score. The best way to buy a new-to-you car is from an elderly person who is selling it privately. They are usually very well kept with low miles.

So true!! I got one with 15k miles for $500 from a friend's grandmother. Granted, it was 20 years old, but it was in great condition.

 

[sfdavis918]

I am getting ready to sell my '05 Odyssey with DVD. In fact just took it to get detailed a few hours ago. I am so sad, but I am trying to keep my eye on the prize. I will be driving a paid for '98 Acura with 105K miles on it. I guess Acura's have Honda motors in them so DH tells me it should go to at least 300K! I have told him that I will have another Odyssey at some point! Of course it will not be a brand new one and it will be paid for in cash!

 

[finley1991]

Yeah, I did totally score with that car! The guy had to sell it because the insurance was too high for him with his 16-year-old!Ironically the car I got that was a lemon was a honda accord.... brand spankin' new. Supposedly good cards but I will never own another one after my experience.

 

[hperschnick]

DH and I are doing FPU right now... we just saw the dumping debt lesson last night. We are working on Baby Step 1 - building the emergency fund. We started budgeting Jan 1 and using the envelope system. We haven't really been working the entire plan... like allocation of lump sums that we receive. I have done some photography jobs on the side and we end up using that to supplement for diapers and groceries and things. We didn't quite have the budget right this month... we FORGOT to put diapers in there so we were using grocery money. So I guess it was kind of an emergency fund.

We are going to call the CCs tonight and find out our balances and prioritize them. This class has really helped us because I was the only one doing the finances and stressing about it. DH has stepped up and keeping up with the spreadsheet part of it and it has really helped to know that this is now a joint effort and he knows what is going on too.

I think we spend less when using cash... it does hurt more to spend that - even on necessities like groceries and gas.

 

[GeorgiaPeach]

For those of you that have already done DR stuff.....we listened to the TMMO on audio. (We start the actual class on 2/11). He said something about using a debt consolidation company (like InCharge or CCCS) is BAD. He said it was like having a default (or something like that) on your credit report.

Anyone know why? I never figured it out. All payments are made on time since you pay them one lump sum and they distribute the money and they negotiate lower %. They do close your account once it's paid off but that's the only thing I can see as the downfall.

 

[finley1991]

All payments are made on time since you pay them one lump sum and they distribute the money and they negotiate lower %. They do close your account once it's paid off but that's the only thing I can see as the downfall.

NOT NOT NOT TRUE! A friend of mine did this last summer. When she moved to another state for a new job, she couldn't get an apartment because all of her credit cards (six in all) had not been paid on time for the previous 6 months. Not once. Those kinds of companies are bad because they do whatever they want. They were paying her bills when they wanted to... not when they were due. She had to have her new employer rent her apartment for her. She was totally embarrassed.

Because these types of companies can't be trusted, DR recommends working directly with the credit card companies yourself and not relying on someone else.

 

[GeorgiaPeach]

NOT NOT NOT TRUE! A friend of mine did this last summer. When she moved to another state for a new job, she couldn't get an apartment because all of her credit cards (six in all) had not been paid on time for the previous 6 months. Not once. Those kinds of companies are bad because they do whatever they want. They were paying her bills when they wanted to... not when they were due. She had to have her new employer rent her apartment for her. She was totally embarrassed.

Because these types of companies can't be trusted, DR recommends working directly with the credit card companies yourself and not relying on someone else.

We signed up with InCharge 16 months ago. (Before I hear DR's take on it). They have paid on time every month and by the end of next month we will have 3 cards fully paid off. I called to ask how they apply the rest of the money (the amounts that normally went to the accounts that are now closed). They apply it exactly as Dave recommends.

I agree that there are MANY companies that prey on people that have fallen behind and are scared by the phone calls. But I also think there are some companies that will do what they say they will.

 

[erinb]

For those of you that have already done DR stuff.....we listened to the TMMO on audio. (We start the actual class on 2/11). He said something about using a debt consolidation company (like InCharge or CCCS) is BAD. He said it was like having a default (or something like that) on your credit report.

Anyone know why? I never figured it out. All payments are made on time since you pay them one lump sum and they distribute the money and they negotiate lower %. They do close your account once it's paid off but that's the only thing I can see as the downfall.

It reports basically like a Chapter 13 BR on your credit report. It's actually the same tactic as a Chapter 13 but instead of it being an attorney and the court system working with creditors, it is a company.

 

[janetupnorth]

I am just refinancing our house and combining our mortgages and both combined will be at a lower rate than the original. I am then using the monthly payment freed up to tackle my highest rate card/loan. I am anxious to read but hopefully that somewhat complies to what they say.

 

[erinb]

I am just refinancing our house and combining our mortgages and both combined will be at a lower rate than the original. I am then using the monthly payment freed up to tackle my highest rate card/loan. I am anxious to read but hopefully that somewhat complies to what they say.

That is a very smart choice and works very well as long as you have the discipline to make sure that the extra that you save from your mortgage does go toward the cards.

 

[katie0128]

I'd love to refinance, but it doesn't make sense for us just yet because we have such a low interest rate (like 5% or something). But I did sign up for the automatic payment plan with my mortgage company... they take out 1/2 of my payment every other week, so I end up making 13 payments a year. Since it is through the actual mortgage company, everything is paid on time and we should have our house paid off in about 17 more years... not bad for being here only 4 years with a 30 year mortgage!!! The four years of on-time payments for my mortgage have really helped boost our credit rating!!!

I've also opened a couple checking accounts just for making automatic payments. I have a certain amount of money transferred to the accounts each payperiod and then have the payments withdrawn a few days later. It all happens automatically, so I never see the money and don't end up missing it... AND my bills get paid on time. WHAT A RELIEF!!!

 

[jwpamp]

Does anyone have a coupon code for his site? I wanted to buy some products and see that there is a "coupon code" area to save $$$.

TIA!

 

[janetupnorth]

Janice - see if these still work:

2CDBP09
&
2VHBP09

 

[janetupnorth]

Hey, for those doing this, explain the envelope system.

Is it putting your montly budget for an item in an envelope in cash and then only purchasing out of there?

 

[jwpamp]

They didn't work for me. I want to order one of the "specials". It's only $40, I guess I can splurge for it....

 

[janetupnorth]

Sorry, it was worth a shot...don't know what any current ones may be...

 

[hperschnick]

Hey, for those doing this, explain the envelope system.

Is it putting your montly budget for an item in an envelope in cash and then only purchasing out of there?

Yes, the envelope system is budgeting money for things like groceries, clothing, gas, eating out, and your spending or "blow" money then putting that amount in a labeled envelope then only using cash for those items. The theory is that it hurts more to actually pay with the green stuff and you know exactly where your money is being spent. The envelopes are for budget items that you may have a tendency to overspend in more easily. If there isn't any money in the envelope you either don't get to purchase that or you have to take money away from something else. It's working for us.

 

[khergatt]

Hi! We are doing this, too.

We are currently on Step 2 and almost finished!!! WOOHOO!

We are planning to save for a down payment on a house as soon as the bills are paid off. I am really excited about it!

 

[janetupnorth]

So, another question, does step #2 EXCLUDE your mortgage?

I consider that debt, but it sounds like that is excluded and that is in a later step...

 

[katie0128]

Here are the "Baby-Steps" from Financial Peace University...

1. $1,000 in an Emergency Fund ($500 if income under $20,000 per year)

2. Pay off all debt utilitizng the Debt Snowball (except the house)

3. 3-6 months expenses in savings

4. Invest 15% of household income into Roth IRAs and pre-tax retirement

5. College funding

6. Pay off home early

7. Build wealth (mutual funds/real estate)

 

[tabnat80]

Sob Sob. We were doing so well, and the came December. We didn't dip into savings to buy Christmas but we did have to dip into it to pay for doctor bills and wedding bills. My son and I both were sick almost all December and my best friend got married. So, I had to buy medicine, pay for a dress, throw a awesome shower, and pay for travel expenses to and from grandmaw's for Christmas. So, needless to say, our peanny little step 1 savings is dwindled down to 90 bucks. But I do have faith that we are going to restore it. Income tax time is around the corner and we are getting back some $ and plan to build our savings back up and pay off the few cc's we have.

 

[katie0128]

Regardless of where the Emergency Fund is now... you learned two things...

1. You can't plan for everything - thus the Emergency Fund
2. You CAN do it.

Now, don't forget that building the Emergency Fund comes BEFORE paying off the credit cards. Otherwise, when the next emergency hits, you won't have the $$ in the bank and you'll end up charging the cc's again.

 

[DebbieJ]

Here are the "Baby-Steps" from Financial Peace University...

1. $1,000 in an Emergency Fund ($500 if income under $20,000 per year)

2. Pay off all debt utilitizng the Debt Snowball (except the house)

3. 3-6 months expenses in savings

4. Invest 15% of household income into Roth IRAs and pre-tax retirement

5. College funding

6. Pay off home early

7. Build wealth (mutual funds/real estate)

Yes, those are the baby steps, but I would like to make 2 clarifications. First Dave recommends tithing 10%, even as you're working the first few steps. We are on step two and continue to give to our church and other organizations. Second, step 7 is build wealth and GIVE. You are gathering money like crazy, but also giving plenty of it away.

Just wanted to make that clear because it is a HUGE part of Dave's philosophy.

 

[janetupnorth]

He-he - I used to do an emergency fund, but DH always finds SOMETHING he needs or something breaks and it is too easy to access (even though I control the money usually). So, I found the best "out of sight - out of mind" solution for us. I transferred our emergency fund into two chunks into the kids savings accounts. They can keep the interest earned off of it...and eventually when we get to a further step, they can just keep it. To access it I have to make an effort to transfer back rather than just quickly accessing it.

 

[janetupnorth]

Well, I don't have his materials, but I'm on Step #2 as of today - YEAH!

 

[tabnat80]

Hey Janetupnorth. I just wanted to let you know that your bible verse on your closer helped me through my show on Thursday. So many times, I am reminded of that verse when I'm going through major life changes. When I changed my major in college, a friend of mine showed it to me and it's stuck with me ever since. I had a show on Thursday night, my first non-friends and family show. I had never met this lady, she called me out of the blue. Well, I got on here before I left to see if i needed any more info or fliers for my show and I saw your bible verse and it calmed me down so much. I already had my family and friends praying for me but just reading that verse, I had a calmness come over me and wasn't nervous anymore. Anyways, thanks for the encouragement even though you didn't know you were encouraging me!

Well, I don't have his materials, but I'm on Step #2 as of today - YEAH!

 

[janetupnorth]

Hey Janetupnorth. I just wanted to let you know that your bible verse on your closer helped me through my show on Thursday. So many times, I am reminded of that verse when I'm going through major life changes. When I changed my major in college, a friend of mine showed it to me and it's stuck with me ever since. I had a show on Thursday night, my first non-friends and family show. I had never met this lady, she called me out of the blue. Well, I got on here before I left to see if i needed any more info or fliers for my show and I saw your bible verse and it calmed me down so much. I already had my family and friends praying for me but just reading that verse, I had a calmness come over me and wasn't nervous anymore. Anyways, thanks for the encouragement even though you didn't know you were encouraging me!

Hey - SO GLAD to hear that! I have the reference engraved in my DH's wedding band (his nice one) - his one he wears daily has our wedding date engraved (yes, I married a guy who cannot remember his anniversary is 9-11-99!!!!)

Anyway, those are my favorite verses, but I always tell people and my AWANA kids, you cannot have verse 11 without verse 13!!!!

 

[DebbieJ]

Janet, I'm still working on getting stuff mailed to you. DH STILL hasn't burned those CDs for me. Grrr!!!

 

[janetupnorth]

Janet, I'm still working on getting stuff mailed to you. DH STILL hasn't burned those CDs for me. Grrr!!!

No problem - I'm very appreciative!!!! But definitely not sitting idle waiting! I'm just working on the Dave method combined with the Janet method for now!

 

[sfdavis918]

The van is sold!! I was sad, but now we are only 6 months from finishing babystep 2! Yahoo!!!! Now I've got to get some shows on the calendar so that we can get it done even faster!

 

[janetupnorth]

The van is sold!! I was sad, but now we are only 6 months from finishing babystep 2! Yahoo!!!! Now I've got to get some shows on the calendar so that we can get it done even faster!

Yeah for you! I'm going to have to figure out how long step #2 will take me but it will be heck of a lot longer than 6 months!!!!

 

[katie0128]

Yes, those are the baby steps, but I would like to make 2 clarifications. First Dave recommends tithing 10%, even as you're working the first few steps. We are on step two and continue to give to our church and other organizations. Second, step 7 is build wealth and GIVE. You are gathering money like crazy, but also giving plenty of it away.

Just wanted to make that clear because it is a HUGE part of Dave's philosophy.

Thanks for adding that. I was just transcribing from the FPU book and since we tithe regularly, sometimes I forget that one... I'm going to rename that Baby Step "DUH" for Christians. For those of us that profess to be believers, NOTHING else will work untill we do step "DUH"!

 

[janetupnorth]

Just came across this: http://finance.yahoo.com/banking-budgeting/article/104346/Eight-Ways-to-Cut-Back-Without-SacrificingThe item about cooking fits our business!

 

[Chefstover2]

I'm so excited to find this thread! My brother and his wife are about to take FPU in Indianapolis and gifted us FPU online so we could get our act together alongside them (we just have to pay it forward instead of pay them back).

So, we sold DH's truck that he spent too much on and was costing too much to run and insure and paid off all but $3K on one CC! With my PC pay, I should have the CC paid off by the end of the year. :chef:

And we'll be paying cash for a new-ish vehicle for him tomorrow (the dealership made a boo-boo and mis-quoted the price so we got a DEAL!!).

 

[janetupnorth]

Hey, good job Kristin!

We just had some "unexpected" vehicle repairs come up on DH's truck to the tune of $1200 but the vehicle is worth the repairs and will give it a few more years of life so we have to do it. Luckily, I was just working on building up our emergency fund so I should have it covered. It will just slow down reducing debt a bit while that gets paid and the fund rebuilds.

Taxes sucked this year...PC saved us from owing - I noticed quite a few deductions from last year weren't available this year.

If we get those checks they approved, that is going RIGHT in the bank!

 

[The_Kitchen_Guy]

Dave Ramsey is Number 12Talkers Magazine, the authority on talk radio, publishes their list of the top 250 talk radio personalities every year. The list for 2008 is in their February issue, and you can see the top personalities, the http://www.talkers.com/main/index.php?option=com_content&task=view&id=19&Itemid=44.

There are a couple of surprises in the top ten, even in the top fifteen.

Dave Ramsey, a popular favorite around here, is ranked number 12, pretty good for someone in such a narrow, but important, niche. Bruce Williams, at one time the premiere business and financial adviser in the country, has faded but is still in the top 250.

I thought you might all like to know.

 

[DebbieJ]

Cool! THanks for sharing, KG

 

[familymgrkendra]

I haven't taken a DR class, but I have read a few of his books. DH and I did take the Financial Matters class by Crown Financial Ministries at our church in the fall '06 and it has really helped us tremendously. There are many similarities between the 2 programs.

About a year ago I tried searching for a message board for Crown info, but couldn't find one. I did find one for DR Total Money Makeover though:

http://www.livinglikenooneelse.com/forum/index.php

Also, about 4 months ago I discovered a couple of completely FREE programs that are based on the envelope program. My DH and I were paying $34.99 every 3 months to be enrolled in Myenvlopes, but when I discovered these sites I unsubscribed.

http://www.myspendingplan.com/ is a basic program and very easy to use. You don't even have to input your bank accounts if you don't want to.

Mint is another great program. It is a little more detailed then the My Spending Plan and very very identical to the Myevelopes program. We are currently using Mint for our household and love it.

Hope this info is helpful!!!

 

[janetupnorth]

I haven't taken a DR class, but I have read a few of his books. DH and I did take the Financial Matters class by Crown Financial Ministries at our church in the fall '06 and it has really helped us tremendously. There are many similarities between the 2 programs.

About a year ago I tried searching for a message board for Crown info, but couldn't find one. I did find one for DR Total Money Makeover though:

http://www.livinglikenooneelse.com/forum/index.php

Also, about 4 months ago I discovered a couple of completely FREE programs that are based on the envelope program. My DH and I were paying $34.99 every 3 months to be enrolled in Myenvlopes, but when I discovered these sites I unsubscribed.

http://www.myspendingplan.com/ is a basic program and very easy to use. You don't even have to input your bank accounts if you don't want to.

Mint is another great program. It is a little more detailed then the My Spending Plan and very very identical to the Myevelopes program. We are currently using Mint for our household and love it.

Hope this info is helpful!!!

A good friend of ours, Brian Kluth and former staff member with us at Fort Wilderness also has a financial ministry. He focuses more on the overall church a lot, but often on the individual and focuses on being able to increase giving.

His website needs some work - he -he - I think it is cluttered! But here it is: Generosity Biblical Stewardship Tithing Christian Stewardship Biblical Tithing Church Stewardship Bible Tithe Christian Giving Philanthropy Fundraising Scripture Verses 40 Days Annual Stewardship Help Campaigns Drives Church Offerings Financial Minis

His wife Sandi is currently going through Stage 4 cancer/chemo treatments right now but still very active and busy. They are a great couple and have helped my DH and I out when we needed our last vehicle. Brian is living proof that in giving, God blesses you with more. They are not a rich family, but very content.

 

[janetupnorth]

You'll love some of Brian's church giving cartoons: church cartoons on money cartoons stewardship cartoons magazine cartoons clip art clipart money cartoons clip art clipart Tithing cartoons clip art clipart Building fund  cartoons clip art clipart financial  debt  Generosity wealth cartoons clip

 

[jwpamp]

I ordered my Dave Ramsey items just a few days ago
New Year Financial Fitness Special

and got it yesterday...really quick shipping!

It was an $85 value for only $29. I am so excited to start using it! Thanks for the info, everyone!

 

[jwpamp]

Ok, it hasn't even been 2 weeks and we are well on our way. We already had $$ in the bank, and paid off our cards ever month in full (but didn't realize the thought behind using them and overspending). I do like to use them for bills -- they come out automatically, we pay in full -- no interest, and I get Best Buy bucks and Upromise college $$ back...I don't know if I want to give that up!

Ok, I regress...it's an eye opener to us...we are working on our Trust papers and have upped our Life Insurance thanks to Dave. I am sure my children will be much happier!

I love Suze Orman, too (am a big fan).

Thank you for posting this info!

 

[janetupnorth]

With all the talk of credit cards, I realized we hadn't posted on this in awhile.How's everyone doing...I'm working on reducing debt and increasing my emergency fund at the same time. It got depleted with auto repairs awhile back and is getting there...felt good to pay the auto repairs in cash (check) though!!!!