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Old 06-11-09, 06:19 PM
OMG! I have 3 kids!
 
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I read his book "Total Money Makeover" and it had some pretty good ideas in it. A friend of mine just went and purchased a Yukon...with cash. I saw her at DS's bball game and overheard her talking about it. She went in and got a great deal since she was paying cash...orginally the vehicle was $40 grand, but she got them down to $31,600. She and her husband have been following DR for some time and have paid off all of their debt and then put aside all bonus, etc to get this Yukon. She said it took them 2 yrs to do this. I was amazed. I really thought that I was doing the best thing when it comes to finances..until I read his book
 


We have a 15yr loan on our home, so at least I have done that part right...but, I do have payments on our Suburban that we bought this year. I managed to get a 4.9% interest from our credit union and thought that was great...again, until i read his book
 


Our biggest issue is dh's student loans. We did have some minimal credit card debt up until two years ago and now they (3 cards) are at a 0 balance...but we still owe $30grand from dh's loans..to date, we have paid a little over $28,000. I also had two loans of my own and paid those off right before Lola was born, but it took me 4 yrs to do it. I only paid the minimal and now i kick myself thinking about how much $ i blew on interest. It was a $30grand total loan.

I still need to finish reading it, but so far it has given me some great ideas. I read about some $1000 ER fund and 6 months worth of expenses. My question is this...we have about 3 months worth of expenses now in one savings account. Do I take the grand out of that and make a totally different savings plan or do I just keep adding to the one savings? I would really like to work towards 6 months of living expenses, so I am on track with that.

we used my overtime from last yr to pay our vacation that we are taking in two months. I hope that was the right decision
 


if we can pay off this loan of dh's and the suburban, then we will have no other debt except our home. I have thought about what it would be like to pay off our home loan wayyy before 15yrs, but is it really possible? We live within our means now...does that mean I have to live way below my means to pay off the house? We are no rockafellers, but we make very good money together...and we invest alot in mutual funds, etc. Do i stop investing and use that towards the house or student loans? We also have a seperate account that we use to pay our taxes every year. Yes, every single year we pay.

Im sure some of you reading this think i am a complete moron with money, but i think it is more of I blur the lines between wants and needs. We should have paid off those loans before buying the Suburban, but it was a big want at the time...I think we get in our own way sometimes
 



TIA and sorry for the novel
 

Last edited by holly302; 06-11-09 at 06:31 PM.
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Old 06-11-09, 06:23 PM
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We took the Dave Ramsey course a few months ago and really learned a lot there! Deanna knows a lot about DR, she teaches the class so i'm sure she'll be able to give you some great advice
 
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Old 06-11-09, 06:25 PM
OMG! I have 3 kids!
 
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I should also add that dh orginally had $74,000 in school loans. Before I met him, he paid off some and when we got together we paid the $28,000. His Uncle helped him go to USC and actually paid a little over $30,000 for him to attend. In total, it cost over $130,000 for his education. This is something that I want to prevent our kids from experiencing. It's crazy that someone can be over $100,000 in debt fresh from college. It's like these school loans never end!


And...


Dh is not as committed as I am. He thinks there is nothing wrong with making payments for the burban or his school loans. He even said something verbatim that Dave says..."its the american thing to do"
 

 
In his mind, we dont have cc debt or any other debt (besides the school loans) so we dont have "debt." Im slowly working on him to see it differently. He came from a very humble background where there was more mouths to feed than $ to buy it..and I think he thinks that if we follow some sort of "budget" it means that he is poor. KWIM?

Last edited by holly302; 06-11-09 at 06:47 PM.
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Old 06-11-09, 06:48 PM
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We kinda had the same thing in mind until we took the class...

From what I remember, you are supposed to do a "Debt Snowball" where you take all your "debt" and make a list in order from smallest to largest. You make minimal payments on everything but the smallest debt, making as big of payments as you can until it's paid off. Once the smallest one is paid off, you take the money you were paying on that and apply it to the 2nd smallest debt and pay it off as quickly as you can. Then you take the money from that and pay off the 3rd smallest, until you have everything paid off
 


Dh and I have a school loan (which actually they put both our accounts together so we make one payment on it instead of two... very nice when writing out checks!), one cc to pay off, the van and our house. Oh,and a soon to be hospital bill (dh's work changed their insurance policies so now we have to pay more than we did before and he's having surgery on Tues, so that's a good $2500.00 or more bill that we'll be getting.) We're paying things off slowly but surely and will hopefully be out of the hole sooner rather than later!
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Thank you koala_kaper!
holly302 (06-11-09)
 
Old 06-11-09, 07:46 PM
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I'm not a D Ramsey follower. But it seems to me that all you need to do is divide your excess $ into payoffs and savings. (more for payoffs and a little less for savings) do the snowball in payoffs of course so that you're always devoting a certain amount of $ to the payoffs and getting the little ones which are lowhanging fruit out of the way.

Living within your means is great. KNOWING exactly how you're living within your means is even better.
Having a budget, no matter how large that budget may be, is essential. If your 'entertainment' budget is $100 a month. Great. If it's $1,000 a month. Even better. The fact is, you HAVE a budget.
(assuming you have a balanced budget
 
)

I grew up as poor as poor could be. Now that I'm financially stable, I feel a smidge like a child who grew up deprived of candy suddenly being thrown into a candy store without supervision.
Still, the wisdom of my age tells me I have to pace myself else I get sick and throw up.
Thus, an occasional indulgence feels good and well earned. The rest of the time, it's budgets and savings.
Accumulating the money in the bank feels far better to me than driving around a brand new car with a giant bank note. And I do drive around with a slight smirk on my face when I pull up to a stoplight and see the person next to me in their brand new SUV and think to myself. I actually OWN my $26,000 vehicle and you own nothing.
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