Mile9c1
X-H2O.com
- Location
- Grand Rapids, MI
I've seen Subway's go under too :dead:
Dave Ramsey, debt, credit cards, retirement, etc
- Thread starter SuperJETT
- Start date
I've seen Subway's go under too :dead:
Ah, car payments, here's an article on msnbc about it.
http://articles.moneycentral.msn.com/SavingandDebt/SaveonaCar/TheRealReasonYoureBroke.aspx
http://articles.moneycentral.msn.com/SavingandDebt/SaveonaCar/TheRealReasonYoureBroke.aspx
Big Kahuna
Administrator
- Location
- Tuscaloosa, AL
Hey Darin, you got a couple of franklins I can borrow until payday!
Nope, all of our's are accounted and budgeted for.
Big Kahuna
Administrator
- Location
- Tuscaloosa, AL
pfffftt, Guess I know what kind of friend you are!!!!!!!!!!!!!!!
j/k
j/k
Frosty
New York Crew
- Location
- Western New York
yup... we had my truck payment of $665 and my wifes car payment of $439 - i paid my truck off early, about 19 months ago, and my wife's car will be paid off in November. No more auto payments for as long as we can... it's nice not having that big payment every month. :biggthumpup:
SeaLion
Jet Ski Junkie
I just got $750 credit from my credit card company as rewards. It took 60,000 points to get $750 . It took 2 years to rack up these points. Not bad since the yearly fee for the rewards program is only $50. That's a net gain of $650. I don't carry a balance so there is no interest or other fees. Yes the c.c. co. pays me to have their card 
This of course only works if you pay it off every month no matter what.
EDIT: Oh yeah, no car payments either. I paid cash for my slightly used truck and my wife's slightly used SUV.
This of course only works if you pay it off every month no matter what.EDIT: Oh yeah, no car payments either. I paid cash for my slightly used truck and my wife's slightly used SUV.
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Idok
F1pro
- Location
- Nations oldest muthaF+++kin city
Ok, so I knew I couldnt avoid this thread forever...so Im chcking in and maybe you guru's could point in the the direction of the first step.
32 y/o
NO consumer debt
250K ish on mortgage--- I have an 80/20...the 20% is a 5 yr. ARM of which I have 2 years left on
I got into my house in the nick of time, and dont think I'd have a problem selling for 30-40K more than I paid....Everyone else in my neighborhood would ask 100K more, but it would sit
I max my 401K and try to do a yearly deposit into my IRA..but it only ends up happening every other year or so...
I have bought 2 new cars in the past 7 years and will most likely never do that again.....My parents instilled this tremendous fear of used cars in me at an early age to which I am now over it....I sold the first to pay for the 2nd, which I now own ourright....GREAT feeling!
I pay my CC every month in full and try to use an much cash as possible as I hate having dozens of "hits" on my debit card....
is the next step doing some sort of refi to get my home payed off faster?
32 y/o
NO consumer debt
250K ish on mortgage--- I have an 80/20...the 20% is a 5 yr. ARM of which I have 2 years left on
I got into my house in the nick of time, and dont think I'd have a problem selling for 30-40K more than I paid....Everyone else in my neighborhood would ask 100K more, but it would sit
I max my 401K and try to do a yearly deposit into my IRA..but it only ends up happening every other year or so...
I have bought 2 new cars in the past 7 years and will most likely never do that again.....My parents instilled this tremendous fear of used cars in me at an early age to which I am now over it....I sold the first to pay for the 2nd, which I now own ourright....GREAT feeling!
I pay my CC every month in full and try to use an much cash as possible as I hate having dozens of "hits" on my debit card....
is the next step doing some sort of refi to get my home payed off faster?
If your first mortgage is anywhere near 6%, I'd keep it even if it's a 30 year, and just knock it out.
Dave's baby steps are:
1. $1000 in savings as a baby emergency fund
2. pay off all consumer debt, smallest to largest
3. fully fund your emergency fund with 3-6 months' of expenses<<<---how much depends on married/not, kids/etc
4. 15% of income into retirement accounts
5. college funds if needed
6. pay off mortgage early
7. save, give, spend your money
It sounds like you're at step 4 or 6. Refinancing costs money so your interest rate has to be low enough to recoup that cost.
Dave's baby steps are:
1. $1000 in savings as a baby emergency fund
2. pay off all consumer debt, smallest to largest
3. fully fund your emergency fund with 3-6 months' of expenses<<<---how much depends on married/not, kids/etc
4. 15% of income into retirement accounts
5. college funds if needed
6. pay off mortgage early
7. save, give, spend your money
It sounds like you're at step 4 or 6. Refinancing costs money so your interest rate has to be low enough to recoup that cost.
Idok
F1pro
- Location
- Nations oldest muthaF+++kin city
I think BOTH of my mortgages are in the low 5's.......
step:
3--covered...Im the sole source of income (not married, no kids)....this has had me worried since I signed my mortgage papers
4--I put about 1k a month into my 401k, my company matches 6% I believe......
5--not going to worry bout collge funds right now...no kids and not even sure if I plan to..
6.--I wouls assme life/stress levels can change TREMENDOUSLY when your home is paid off....so I guess this is the next step...Should I start sending extra $$?? There's no way I could afford to double the payment..
I'd make sure you're doing at least 15% (not including match, that's just bonus and could change in the future, mine did) in retirement before hitting the house early.
Think about this, making what you make now, with no mortgage payment each month. Buying a tv or new pipe or whatever would be like buying a pizza right now. No big deal. You could also seriously invest with all the freedom in the world, buy a second home, buy rental property without worrying if it's not rented for a month or two, etc.
You're in a great spot.
Idok
F1pro
- Location
- Nations oldest muthaF+++kin city
I think Im at about 13% before the match.....
actually, now that I think about it....Im proably at 15% as I just dropped 1 day every other week (4 day week, every other week :headbang
I suppose my long term goals would be to get this home paid for...then buy a 2nd home in Michgian......
this i agree with completely. i've arrived on my own at the same strategy. people don't understand the value of an emergency fund... keeping all their immediate liquid assets dribbling low... thats when you start hurting for that major car repair, medicial emergency, etc.
for all you with mortgages... you can save YEARS and THOUSANDS of dollars by paying extra every month. just don't get suckered into those scamming lying BS stewards BIWEEKLY plans where they charge you $8/payment ($16/mo) and a yearly maintenance fee of $85, and a initial setup fee of $350. friggin scammers. just send in a little extra with your loan note or setup your online payments to add in a little extra... whatever you can afford. even a few dollars a month will save you YEARS and THOUSANDS. honest.
my other beef is to friggin be honest with uncle sam. claim everything you should. no, you won't get a big ole refund check anymore, but uncle sam won't be hanging on to your money interest free anymore. my parents and i both end up w/in about $50 of owing/refunding.
32vickie
X-
- Location
- Pipersville, PA
WOW Idok that is great news. Just keep up with the retirement and paying off the house. We will have a great feeling next year when we are car loan free and and putting 1K + on debt and still with matching putting 18% away in 401k
- Location
- So. IL
WOW I can't believe I read all 20 pages. I am going to do some Dave research but our way has been working pretty good for the last 8 years of marriage. My wife had quit work and went back to school after we got married and she just landed her career job last week as a title 1 reading teacher. She is one class from her masters and my new (to me) truck $13K is our only payment other than the house. Which we only owe 38K on. Maybe a few $ on the CC but that is paid off monthly. I have 12% going into retirement and have been for 15 years and my wife just started hers but we have been putting money into ira's.
So we don't have everything set up just yet but we haven't been doing too bad since we haven't got a budget at all. We just spend what we need and no useless spending.
Anyone got a book I can borrow for a few weeks....... See I am trying to save money already... LOL
So we don't have everything set up just yet but we haven't been doing too bad since we haven't got a budget at all. We just spend what we need and no useless spending.
Anyone got a book I can borrow for a few weeks....... See I am trying to save money already... LOL
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Go to the public library, they have his books. You can get it for around $15 shipped on Ebay also, screenname is live_debt_free and the book is The Total Money Makeover.
Yahoo article: http://finance.yahoo.com/banking-budgeting/article/103379/Top-10-Money-Drains
Top 10 Money drains:
1. Coffee -- $360 per year.
2. Cigarettes -- $1,660 a year.
3. Alcohol -- $3,650 per year.
4. Bottled water from convenience stores -- $365 per year.
5. Manicures -- $1,068 per year.
6. Car washes -- $348 per year.
7. Weekday lunches out -- $2,350 a year.
8. Vending machines snacks -- $260 per year.
9. Interest charges on credit card bills -- $4,868 in interest (over time).
10. Unused memberships -- $480 per year.
Surprisingly, brap-juice wasn't on there.
Top 10 Money drains:
1. Coffee -- $360 per year.
2. Cigarettes -- $1,660 a year.
3. Alcohol -- $3,650 per year.
4. Bottled water from convenience stores -- $365 per year.
5. Manicures -- $1,068 per year.
6. Car washes -- $348 per year.
7. Weekday lunches out -- $2,350 a year.
8. Vending machines snacks -- $260 per year.
9. Interest charges on credit card bills -- $4,868 in interest (over time).
10. Unused memberships -- $480 per year.
Surprisingly, brap-juice wasn't on there.