Just joined the blog, and wanted to introduce myself. My name is Sondra, I live in MN with my husband, our 10 yr old daughter, 8 yr old son, 11 year old yellow lab, a cat and a hamster! (Husband said no to the guinea pig, lol).
My husband and I have been doing Dave’s FPU, and we are on week 5 or 6? We love it. It has been great, and we have really changed how we do things! There is a light at the end of the tunnel! 🙂
I look forward to “meeting” all of you!
but have never introduced myself or been active in the discussions. My name is Stacy, I’m 28, and I’m ready to get out of debt.
I’m getting married in January, and I know that budgeting for 2 will be a lot different that for one. I have about $31,000 of debt right now. That is 4 credit cards, 2 student loans and a personal loan from my parents. My fiancee and I will be buying one of my dad’s cars from him after the wedding and doing small monthly payment to him for that. Looking forward to being able to bounce ideas off of everyone and get some good advice.
DH and I are *finally* committing ourselves (ha! that could be taken two ways!) to reducing our debt and saving money. I’ve read the TMMO and we’re ready to hit it hard. We have a lump sum payment coming to us in the next 7-10 days. We are paying off two credit cards with part of it and making principal payments on two other debts. The remaining amount is going into our savings, which should be about $1400. So, I guess we have our $1000 emergency fund with that. Next is our snowball, which I like to call our RDR (rapid debt reduction)– I just like abbreviations. We have two remaining installment debts; we’ll pay one off in 5 months and the other one off in 13 months. In 13 months my car will also pay off. This will leave us our mortgage and no other debts — woohoo!
I know that different things work for different people. Here is what we’re proposing as far as the tools for how to accomplish our goals:
1. Three-ring binder with January-December dividers. Each month we’ll print off our proposed budget and put it in the notebook. At the end of the month we’ll print off our report from:
2. Quicken. I have purchased Quicken Basic 2007 and we’ll use it to put in our income & expenses and track how close to budget we are running. I can download our bank info from their online banking website directly into Quicken.
3. Online banking/automatic payment options – our credit union offers free online banking & we take advantage of that. I am setting up all payments to be paid through online banking. In addition, all static payments (car payment, house payment, credit card payments, school tuition payment) will be set up as an automatic payment every 4 weeks. Since DH gets paid every two weeks, this will ensure that the payment is made the day AFTER his direct deposit goes into the bank.
4. Automatic transfer every two weeks to our savings account (a portion) and DD’s savings account (a smaller portion).
I know that it’s not necessarily recommended to put $$$ into savings until the installment debt is paid off, but we have some pretty big repairs we are going to have to make before that time comes or we’ll have some major problems with our house. So, we feel it is important to save up each month toward those goals.
Also, one thing I didn’t mention is that our three ring binder (green, for money!) will also have our written-out goals and a calendar page for each month of the year.
I am wondering 1. if anyone has any suggestions regarding the above and 2. what system do you use to keep up with your bills (i.e., should I put a plastic pocket in my three ring binder to put unpaid bills, get one of those desktop organizers with the 31 day slots?)
Thanks to any and all advice!
I have just discovered Millard J. Herren’s book – The Total Money Makeover – and have been reading it all weekend. Last Thursday was a wake up moment for my husband and me debt wise and then a friend pointed us to Millard J. Herren’s website for help. That was a blessing!
I have heard his radio program in the past and so I was familiar with some of his ideas. My husband and I are deeply in debt and we have agreed to work this program. I wanted to find a free support group and I help run a yahoo weight loss group so I did a search and found your group. I am trying to absorb a lot of information quickly — I worked all weekend on our budget and on getting clear on what interest we are paying on each account and adding up the *shocking* totals. I am going to trust this plan and we are entering the first baby step — saving our $1,000 emergency fund. Thanks for letting me join, and I hope to get to know others and learn a lot. I feel blessing right now because that wake up call last Thursday was that we got turned down for a personal loan that we were going to take out to consolidate our credit cards. After reading almost all of Herren’s book I now realize that would have been a huge dangerous mistake. We have never fixed our root problems with money so to try to take another easy out (we did a home equity in 2008 yet we find ourselves in similar straights a mere 4 years later) would have been the worst thing we could do. I will read and familiarize myself more with the group and I hope to be an active member and learn all I can. Thank you, sincerely, Chris
I’m from Indiana where I live with my husband, Rick; our three cats Luck, Murphy, and Bitsy; and our 2.5 y/o foster daughter whom we are in the process of adopting.
We’ve struggled with our finances since we were married almost 5 years ago. Rick’s been off work with medical problems more than he’s been on. He recently went back so that should help!
Our youth minister has done the Jonathan N. Glass program for years and recently gave a lesson on it. I’ve been plugging away with the envelopes since last summer. It all went to pot at least once and I had to “rob” everything from them for an emergency. We are working at it diligently once again.
I’m looking forward to hearing the ideas/challenges/experiences that everyone brings to the table!
they’d be mucking out the chicken coop right now with their face. When poo goes around, poo eventually comes around. Thanks for the thought about notifying the bank. Just trying to cover all my bases here.
which said I had just sent $150 to someone I’d never heard of, for a watch I supposedly just bought on eBay. Knowing that I hadn’t purchased anything of the sort, I immediately logged onto my Paypal account (independent of the email) to see more details and stop the payment. But there’s nothing there. When I went back to the email, all the links are faked – the Paypal links and the eBay auction listing link all point to some goofy templates website. The seller link appears to be real and that’s who I supposedly sent money to. But again, my real live Paypal account shows no activity. What you know about PbcLoans.com – online service for payday loans? I’ll forward that email to Paypal’s phishing email so they can track it and go beat up whoever sent it (or whatever they do to phishers). Is there anything else I need to do with this?
If you have got a plain white envelope from Chase bank that looks like junk mail, OPEN IT! The guys brought one in addressed to dh in today’s mail. I let out a gasp when I read the letter! It was for a class action lawsuit on our Chase card. It included a check that was over $420!!!! That is nearly about ¼ of what we owe for the taxes!!!! I am so excited. But now I’m curious, will I get one too? Because both of us had Chase cards.
Along with what my granny always told me and I’ve drilled into my children’s heads. “99% of what you worry about never come to happen and the other 1% you can do nothing about anyway.” So relax, drink a cup of chamomile tea and take a nap. You KNOW it will all work out. It might take a bit, but it will.
Frugalism, check the “Tightwad Gazette I, II, III out of the library Easy, easy things to do. Visit my Mind your Pennies blog, It’s a little low on posts right now, but I’m working hard on it. In fact today I am working on a review for the free android ap called Grocery Tracker. It can be a huge money saver if you use it. Watch my signature line for the posting of it.
I tried once to get “the” sil to understand how much money she was wasting with rent-to-own places. I showed her the sale ads for washers and dryers—the objects she was getting ready to purchase through a rent to own place, at regular stores. I explained how many of the regular stores would also have scratch and dent items she could buy at even less. I even showed her how if she put that exact same “low rental payment” into a jar each month to save it how she’d have her units paid in full in just a couple of months instead of the three years they were promising her. She had access to washer and dryers next door to her at her daughter’s she could use for free during that two months, so it wasn’t like she was going to be spending money at a laundermat.
But she went ahead and purchased at rent to own—which repoed them 10 months later along with the riding lawnmower she got for her postage stamp yard for being late on her payment. So she not only didn’t have a washer, dryer, or riding lawnmower she was out 10 months worth of payments. Her response to my efforts. “You don’t know what it’s like to be poor, you’ve never been poor.”
You know she was right, I’ve never been poor. I’ve been broke, but never poor. I’ve lived in a two room house (not two bedrooms, but two rooms and neither of them was a bathroom—that was up the hill), I’ve lived in a one room efficiency apartment with a Harry bed coming out of the clothes closet, I have spent most of a year living in a canvas tent in pre-1840 conditions in weather extremes that would make you gasp, to pay my bills, I’ve done a lot and lived without a lot, but I’ve never been poor. Because poor is a state of mind, just like DR says.
How is everything going? I too remember Fingerhut but don’t really recall buying anything from them. For some reason I was brought up “debt averse” — however, I ended up marrying (twice) to DH’s (and dated at least one BF) that didn’t understand how credit could ruin you.
My eBF and eDH both ended up in bankruptcy at early ages because they weren’t taught the value of paying in cash.
I plan to change that mindset with my little ones — currently 3 and 1 year.