Sunday, August 20, 2006

How Dave Ramsey changed my life (future prediction)

I've been reading Dave's budget book all weekend. I was hoping I'd find the Easy-Mac version of becoming a millionaire, but damn, I guess there's not one. Short of winning the lotto, which I'm to cheap to play.

Seems that we need to jump on the debt snowball. Only our snowball is bigger than our house. Mark and I have decided that we need to do something about the debt. Restructure the debt, because it ain't going away. After reading through most of Dave's book, I decided we'll probably do what we intended to do originally. Refinance our house, for about 3 years extra. I'm looking for advice; tell me what you think. We have two car notes, that when added together, almost total our monthly mortgage payments. These notes are never-ending because Mark and I put so many miles on our cars that we trade them in fairly quickly. Our goal is to stop doing that. Roll these into our mortgage, along with other small debt that we have (a couple of credit cards), and finance for 15 years (on our original 15 year mortgage that was down to about 12 years). I hate to add the three years, but it would free up about 900 bucks a month, which we desperately need for GAS! and to start saving. Our savings is basically non-existent. Dave isn't real clear cut on whether or not he agrees with this. Basically, we'll have equity in everything and still some in our house, but not as much as we currently do.

The most important thing, as Dave stresses in the book, is to change our spending habits, to
prevent incurring further debt. And that is what I'm determined to do.
No more ordering clothes and deferring payment hoping the deferment fairy will leave a shit-load of money on my doorstep.
No more overdoing kids' birthdays and Christmas.
No more vacations we didn't budget for (like this year's!)
No more eating out every single work day (I ate in 3 times last week!)
No more living like we're well off when we're barely scraping by.

Time to face reality, dig in and change our ways. Wish me luck.

I'll need it.


chesneygirl said...

Girl, this sounds EXACTLY like us!! And I ain't lying!!!
We overspend and spend like we're well off and barely scraping by all the time!
We too have recently decided we need to settle down and makes some big changes in our spending.

One thing that I did that helps cause I always way overspend at Christmas....I opened a 'Christmas Club' savings account...which is not a 'withdrawable' account. I figured out how much money I want for Christmas shopping, divided it by the number of pay periods I have and have that amount direct deposited into the account every paycheck. On November 1st the bank mails a check for the total balance of the account and that's my Xmas money. Now I have money every year for Xmas, I make myself stick to what I have and I don't overspend or use credit cards. AND...on November 15th I'm already saving for the following Xmas!
It's awesome!!! You should try it! :)

beki said...

Good. We can keep each other on track!

Anne said...

great idea. i will totally join you. the eating out hurts us as does the buying facies over the internet. It is just too easy to spend too much. Good luck!

Jamie said...

Good luck! I am right in that boat with ya and paddling as fast as I can! I was excited to see our office building manangement is hosting a free thank you lunch in the lobby. Otherwise I'd be spending at least $5 on lunch. It adds up so quickly. I'm starting to not use my debit card and use cash my husband gives me. That may sound archaic, but it helps SO much to not use that debit card!

mothergoosemouse said...

First, it's great that you have a 15-year mortgage - that is awesome in itself! Kyle is a mortgage loan officer, and he sees so many people in terrible situations. You're way ahead of the game in that regard.

I think the big plan sounds like a good idea, and I like all the little ideas too. I'm trying to do the same myself - it adds up!

Krisco said...

They all sound like great ideas. And we all relate too! (count me in for relating...)

acumamakiki said...

All of your lifestyle changes are changes I could and should be making in our lives. Thank you for posting this ~ I needed to hear this.

Amanda said...

I am getting on board too. I try to pack my lunch the night before. It's really hard when your busy with kids.

I could eat tuna sandwiches or turkey sanwiches everyday and I would be fine.

I totally indentified with this post. Thanks for writing it.

Anonymous said...

Sounds all good to me. I know you can do it once you set your mind to it. Gas well, please erupt soon!!! Mom

DEBTective said...

VERY mature to see that it all starts with you. You're on the right track with the dough, so keep it that way, baby. Some tips: Don't put more years onto your mortgage. If cash is tight, you might look into selling your cars (and ditching the payments) and getting a couple of reliable, older cars. You'll save about 20 bucks a day if you eat in, which is probably more than your car payment. Sound good, sally?

Lisa M. said...

I have been a HUGE Dave Ramsey fan, and we called his show about a year ago and screamed we were out of debt.

Welcome aboard

thehappyteacher said...
This comment has been removed by a blog administrator.
bayoumama2 said...

I'm reading his book right now also. Our pastor and others from our church are right on the brink of being debt free. That is our goal as well...but we are just beginning this we have a long way to go! You can do it like no one else now so you can live like no one else later! It will all be worth it!

I have actually become a much better cook now because we don't eat out all the time anymore. Now that's a miracle! *chuckle*

LammyAnn said...

sooo much easier to say and imagine than do.
We went through this a few years back and like bayoumama, I am a much better cook because I have to watch what I am doing.
Well, at least I'm glad that I'm not the only one not on the "deferment fairy's" route.

SingleMomOf4 said...

I can totally relate! I just refinanced my home for the last time lol. I'm a loan officer and so luckily I knew what programs were out there and what the rates were. It was a no brainer for us to refinance and consolidate while at the same time STOP SPENDING FOOLISHLY. We pack the lunches, we limit our driving (atleast until gas prices go down)and as far as 4 kids go, if they don't absolutely need it, they don't get it. They primarily have "wants" not needs anyhow. Hopefully they will learn a valuable lesson from all of this. Good luck and if you need any help let me know!