Has anyone gone from BROKE to DOING WELL using Dave Ramsey?

[Ottakee]

Just a spin off from the thread on what BROKE really means.

 

Just wondering if anyone has made it from being broke---living paycheck to paycheck, not sure how to pay the bills for anything unexpected, doctors, etc. to being comfortable---an emergency fund, some savings and at least enough to cover the basics. Not necessarily rich, but comfortable.

 

I hear of these stories but wondered if it really works that way or not.

[cathmom]

Good question.

[springmama]

I'm sure it's a very very long process. At least a few years.

[Mona100]

I bought his book back in the summer and didn't really start following it until a couple of months ago. Hopefully, it will work. I know for a fact it has changed my outlook on money. Currently, I have $600 in my baby step one. I have never ever ever had $600 in savings. Hopefully, I will have it fully funded ($1000) by the end of this month or the middle of next month. Unfortunately, I did have to take out a loan to clean up some of the money draining loans I had to get rid of (ie payday loans) plus get current on some of my monthly bills. Now that has happened I can actually see the light of day. I used to have trouble even putting gas in my car but I figured out how much I was actually using and I put that back every two weeks (that's how I get paid). I think the DR plan is for people like me who have never had a budget and it is giving me a reason to follow one and to actually do it. I have also sat down and figured out when I would be totally debt free (ie student loans, family loans, credit cards and other loans) and that it will be sometime in 2015 or 2016 depending on how much I will actually be making after I get out of school.

[hsmom]

Good question. I have wondered this myself. I always get the "it is too good to be true" feeling when I read the stories.

[....]

YES! :)

 

I don't like to give out lots of personal details, but if it makes you feel motivated...

 

We started off: no savings, about $78,000 in debt for BS2 (BS2 is credit cards, car loans, personal loans).

 

We went full-swing into the DR program and actually made it through 6 months of unemployment without missing a payment on anything - no car repos, no foreclosure, not missing a credit card payment. However, we stopped our snowball during the 6 months of no income and then several months afterwards while we moved (obviously).

 

OK, so fast forward to the present... In January, I will have completely paid back $14,000 in back taxes (long story for another time) to the IRS and I have:

 

$10,000 saved (I have an irrational fear of unemployment now)

2 Paid-for cars (we have a 2009 minivan and a 1995 Chevy pick-up)

I have $20,000 remaining debt (which is scheduled to be paid off this summer)

 

Also, we live on about 60% of our income...:glare:

 

My long-term financial plan...after BS2/BS3, I plan to just go through the baby steps: IRA/401 K, fund college funds for my 4 kids, pay off our house and pay off our rental house.

 

I don't know if that helps you or not, but I've heard of people digging themselves out of HUGE debt holes. If you listen to his show on Debt-Free Fridays, people call in who have paid off everything - their house, cars, credit cards, etc. 99% of our debt is from our college years at a time when we were both living on the fringe, racking up student loan debt and completely ignorant of personal financial management. :tongue_smilie:

 

Now that I've snapped a financial picture for ALLL the world to see....:D:D:D I hope that helps you. Dave Ramsey has forums, too. His radio show is also on podcasts... I wonder if you couldn't listen to him on YouTube. Just a disclaimer, tho...he's religious and he's all about personal responsibility. He's very much into people NOT being content about their situation and taking very proactive steps to fix things.

[hillfarm]

Dh and I started before we had a child and although we had two half way decent salaries coming in, we weren't saving anything and it all seemed to slip through our fingers.

 

After we started becoming more fiscally responsible (this was before Ramsey, but using many of the same concepts), we immediately noticed more money to pay bills, etc. After a couple of years, we were pleasantly surprised to find that we had a reasonable amount of savings put back.

 

Then we had a child, moved from Florida to Ohio, and took major pay cuts. We went down to about 1/3 of what we were previously earning, but the cost of living was a bit lower also. However, the habits we had established saw us through and although we now are up to about 1/2 of what we brought in before, IMO we live a perfectly pleasant quality of life.

 

We are not rich by any means, but we do get all our bills paid and live a bit below our means so that we can continue to build up savings. I definitely felt more "broke" when we were earning more and feel more "okay" now, when we are earning only 1/2 that amount.

 

Does that help?

 

The main things we started doing were putting money into savings each month, staying out of debt and never putting more on the credit card than we could pay off in that same month, and tightening up leaks in our finances as we discovered them (unnecessary extravagances, stupid purchases, convenience purchases, etc.)

[....]

I'm sure it's a very very long process. At least a few years.

 

It takes about 7 years. Even if it took 10 years...if you are debt-free and you own property, you're still in a much better financial situation than you were before...

[hsmom]

So, those of you who have used this and are doing better. Is this program geared more toward people who have lots of debit, loans, cc etc?

 

We don't have cc, we have a small loan and still live paycheck to paycheck. Even though I know we could really live on way less. So, would a book like this be helpful to someone like me?

[....]

So, those of you who have used this and are doing better. Is this program geared more toward people who have lots of debit, loans, cc etc?

 

We don't have cc, we have a small loan and still live paycheck to paycheck. Even though I know we could really live on way less. So, would a book like this be helpful to someone like me?

 

His program would work for you, too. His long-term financial plan is actually a really good one.

 

He also says the more debt you have, the more spending power you actually have once those debts are paid off...

 

The less money people make, the less damage they can do to themselves financially. Those people are more financially stable than the peeps mentioned above...

[hsmom]

So, which of his books should I check into? There is a few and a workbook also. I really would like to read this.

[....]

http://www.daveramsey.com/store/Books/dave-s-bestsellers/the-total-money-makeover/prod326.html

 

It's 10 bucks. This book pretty much sums up his program.

 

He also has a subscription service to his website that's 10 bucks a month. It has budgets, goal trackers, debt trackers, it walks you thru your Baby Steps, etc. There's forums, podcasts, etc. You could use that for a month until you get going and then cancel...

 

I have the subscription service - I had cancelled it for a year before, but my finances seem kinda complicated sometimes...:glare:

 

A lot of libraries have his book, too - for FREE! :D

 

Can you get his radio show where you live?

[....]

I have to clean out our garage now...:glare:

 

Good luck, Everybody!! :coolgleamA:

[Annie]

So, those of you who have used this and are doing better. Is this program geared more toward people who have lots of debit, loans, cc etc?

 

We don't have cc, we have a small loan and still live paycheck to paycheck. Even though I know we could really live on way less. So, would a book like this be helpful to someone like me?

 

We never had any debt other than our mortgage, but I still love Dave and his baby steps. His principles have helped us pay cash for two cars, build a fully funded emergency fund (about 6 months of expenses), and take steps towards paying our house down early. I wouldn't spend money on his books until you get a feel for him. He puts a rolling two weeks of his show on his website for free. I like to listen while I cook or fold laundry. If you like him and feel like you need a book, he often has sales where he prices his books at $10.

 

ETA - If you're getting a book, I agree that The Total Money Makeover is what you probably want.

Edited December 5, 2010 by Annie

[Mona100]

The Total Money Make Over is the book that I have. At my library, it is always checked out. ;)

 

Starrbuck (hope that's right), I love hearing your story. I am so happy someone on here has done it and it actually works. It makes me even more determined to follow through on it.

[Momma2Many66]

We have gone from broke and living paycheck to paycheck every month to now having a nice 12 month emergency plan and that includes most of our utility bills in sinking funds a year in advance. We make less then 35 grand a year and we still have 4 littles ones at home, so we have really had to tighten our belts, but it has been so worth it !

 

Car/Home Insurance, Heat, New Large Appliance Fund (replacement for washer/dryer, Refridgerator, Stove, Dishwasher) Car Maintenence/Repairs, Home Maintenence/Repairs and a "New" Used Car Fund are all in Sinking Funds a year in advance so we never have to worry should a crisis arise (like when my husband was laid off and my then teen daughter had cancer 3 years ago) again. Back then we had so much to worry about with my husband job and my daughter's health, the financial pressure of meeting bills practically put us over the edge. I never want to be in that position again, so that is when I began seeing the great importance of having a budget and following a well organized financial plan for our future.

 

We have been doing Dave Ramsey for almost 3 years now and it has paid off so much, the peace of mind is priceless !

 

Christmas is awesome this year, because it was thought about and accounted for in a sinking fund almost a year in adavance, so no after Christmas bills and all of our credit card debt is gone ! We really simplified Christmas, it is not a HUGE outpouring of gifts, but gifts carefully chosen to meet the needs and also some fun for each child.

 

We still only make 35 a year, that hasn't changed, but our lifestyle has been pared down and simplified to meet our budget and keep us constantly "ahead of the game".

 

I should also say that we have no cable, no cell phones, no "extra" anything.

 

We put in a HUGE garden every year and we keep our grocery budget for 6 people at $125 a week and that includes all toiletries and paper products ( $500 month). We get the occasional pizza on a Friday night (twice a month with coupon), but that comes out of our grocery budget.

 

We shop for clothes, housewares, toys and most of our homeschooling supplies at thrift stores and GoodWills. I keep a sinking fund of $1,000 a year for homeschooling supplies and buy used or very discounted online or at used homeschooling book sales.

 

We do no real "extra curricular " sports/music/dance or co-op programs for the kids, they get to have fun and exercise the "Old Fashioned FREE Way", they run around outside on our 11 acre farm and chase the dog and balls and climb trees and build forts.

 

There is no yearly extravagant vacation to Disney, the Carribean or the Beach, but there is a nice "used" pop up camper we picked up this past fall for $ 1,200 CASH to use for some camping fun for our family this coming spring and summer of 2011.

 

Best part, there is no real "financial worry-ing" every month like there used to be. No credit card debt, no loans, no anything except a small mortgage that will be paid off within the next 10 years.

Edited December 5, 2010 by Momma2Many66

[Soror]

We don't have debt either, other than a mortgage that will be paid off in 6 yrs. However, I would like to see some plans for what to fund when and what to save for first. Right now we have:

1) an emergency fund- about 1500.

2) 4 months of expenses saved - working on 1 yrs worth

3)a car fund started- for when our van gets too small or goes broke- to be fully funded in 2 yrs time(I hope that it will not be needed for at least 4 yrs though)

4) fund for the max out of pocket for our health insurance- also set to be fully funded in 2 yrs time(should have already had that done but we had a yr where we had to meet the OOP max and it really put a damper on things)- I hope to get it done- fingers crossed- before we need it

5) retirment funding to company match- 6%- this was up to 12% but we dropped it last yr intending to do a Roth acct but it didn't happen- however his company is now offering a Roth 401k we are considering as well as we can have the deductions automatic- which is obviously the road we need to take- I need not to think about it

 

Now, we don't have any college savings, not sure how I feel on it. I don't plan to fully pay for anyone and will offer room and board for the local CC. Also, our mortgage will be paid off when my son(the oldest) is 12 so we will have a bit of room there. I wonder about retirement savings and how much to have, how much we need. I would like dh to able to retire early but cannot see exactly how to make that happen. So, we are just working on these goals as they seem to be critical things to do.

[kathkath]

I don't want to go into details, but we were in a hard place a few years ago and committed to being diligent, and God blessed us in unexpected, unusual, and clear ways. For us DR wasn't just A+B=C, but rather A+B=C+blessing. We weren't able to buy a benz or anything, but our stress went down and our faith went up. God blesses those who obey him. Part of this included tithing despite not having enough to cover our bills, fwiw.

[DawnM]

We do a Dave Ramsey type program. I am on the LLNOE.com forums, but Dh and do Crown Financial....same concept but a little more christian content.

 

Before:.....we started 5 years ago. We did not have cc debt, but we did have one car loan and a student loan and no savings to speak of. We were living paycheck to paycheck for the most part. We also had a 30 year mortgage.

 

5 years later: We have all of our debt paid. Car and student loans are gone. We have refinanced to a 15 year loan on the mortgage. We have 6 months saved up.

 

The process: It is NOT fun, just like a diet to lose the weight is not fun. We did some drastic things to get to where we are. The most drastic was about 3 summers ago. Our upstairs heat pump went out. The kids' bedrooms are upstairs. We decided that since it was going to cost $4K min. to replace and we were not fully out of debt yet, we were going to do without until we had debt paid and had saved up CASH! Fortunately, we did have a/c in the downstairs and so we all camped out in the main floor for the entire 4 to 5 months of heat!

 

We also did not eat out other than our $60/mo budget for it, went to cash envelopes, ate chicken instead of salmon for example, and gave up quite a few extras.

 

The program is for anyone, no matter how much debt you do or don't have.

 

Dawn

[DawnM]

I didn't really answer your "going from broke to doing well" question, but to me, those terms are subjective.

[Lux Et Veritas Academy]

We weren't broke when we started and in actually good shape- but it has helped us a million times over with our money. We are in a much better situation now that we use the principles.

[ma23peas]

I've never bought a DR book or been to a seminar, never heard him speak...but I'm pretty sure he's not teaching anything new...budgeting is just like dieting...eat less than you expend and you'll be fine...

 

We had 2 mortgages for 31 months, we ran up cc bills just to stay above the fray...so to get us out of debt in a much shorter time..we took drastic steps...we ONLY use CC for gas...no more picking up a soda when we fill up....we use ONLY cash for all other expenses...started out with $800 a month and realized we could manage with $500-$600 for household (dance lessons, speech/debate fees/etc. are outside these costs). I will admit it, some months our 'expenditures' (meaning all outgoing bills other than cc, mortgage, car, insurance) were well into the thousands...I never realized how those stops on the go added up...we could spend $200 a month just on stopping quick for a sandwich here, drink here....shopping for clothes/dance gear etc. I am in a position now where we're literally paying thousands each month off in debt...if I can keep this bare bones budget going, we can be out of mortgage in 10 years easily (just bought our home 3 years ago with a 30 year mortgage)....it can be done, no need to spend money on someone else's common sense...unless you need it,...look at where you have expenses that are not NECESSARY....and just STOP spending...we would spend $1200 just on restaurants...with a family of five that might be 12x a month...2-3 times a week...we make gifts for Christmas...we sell old things we no longer use on Ebay...(I just sold all my stampin' up materials, groovy girls collection and made over $350...that pays for half our Christmas easily!)

 

Tara

[babysparkler]

So, those of you who have used this and are doing better. Is this program geared more toward people who have lots of debit, loans, cc etc?

 

We don't have cc, we have a small loan and still live paycheck to paycheck. Even though I know we could really live on way less. So, would a book like this be helpful to someone like me?

 

This is me a couple months ago... I was very skeptical that we would get anything out of the course since we don't have debt, paid cash for both of our cars, are already investing in retirement/school savings, and are really well organized and on a budget already, though we knew we could be a little more frugal. Tonight is our final night of the class, and we have really gleaned great information about investing that we weren't aware of. We also have a broader understanding of our investment portfolio, our insurance needs, and a better focus on our monetary goals as a couple. It was worth the time and investment in the course for these things alone.

Edited December 5, 2010 by babysparkler

[cathmom]

So, those of you who have used this and are doing better. Is this program geared more toward people who have lots of debit, loans, cc etc?

 

We don't have cc, we have a small loan and still live paycheck to paycheck. Even though I know we could really live on way less. So, would a book like this be helpful to someone like me?

 

I personally think that the program works really well for people who have more than enough but don't know where their money goes. It's harder to implement when the true problem is an income problem, something Dave says on his show. (I don't listen - I can't stand talk radio - but my dh listened to it for a while, and he heard Dave say that more than once.)

[mommyoftwinboys]

Has anyone taken Financial Peace University online? I noticed he has that option now..is it the same as the in-person classes? The classes offered near us don't provide childcare and we don't have family near by..nor the budget for aweekly babysitter.

[LG Gone Wild]

YES! :)

 

I don't like to give out lots of personal details, but if it makes you feel motivated...

 

We started off: no savings, about $78,000 in debt for BS2 (BS2 is credit cards, car loans, personal loans).

 

We went full-swing into the DR program and actually made it through 6 months of unemployment without missing a payment on anything - no car repos, no foreclosure, not missing a credit card payment. However, we stopped our snowball during the 6 months of no income and then several months afterwards while we moved (obviously).

 

OK, so fast forward to the present... In January, I will have completely paid back $14,000 in back taxes (long story for another time) to the IRS and I have:

 

$10,000 saved (I have an irrational fear of unemployment now)

2 Paid-for cars (we have a 2009 minivan and a 1995 Chevy pick-up)

I have $20,000 remaining debt (which is scheduled to be paid off this summer)

 

Also, we live on about 60% of our income...:glare:

 

My long-term financial plan...after BS2/BS3, I plan to just go through the baby steps: IRA/401 K, fund college funds for my 4 kids, pay off our house and pay off our rental house.

 

I don't know if that helps you or not, but I've heard of people digging themselves out of HUGE debt holes. If you listen to his show on Debt-Free Fridays, people call in who have paid off everything - their house, cars, credit cards, etc. 99% of our debt is from our college years at a time when we were both living on the fringe, racking up student loan debt and completely ignorant of personal financial management. :tongue_smilie:

 

Now that I've snapped a financial picture for ALLL the world to see....:D:D:D I hope that helps you. Dave Ramsey has forums, too. His radio show is also on podcasts... I wonder if you couldn't listen to him on YouTube. Just a disclaimer, tho...he's religious and he's all about personal responsibility. He's very much into people NOT being content about their situation and taking very proactive steps to fix things.

 

 

Just wanted to say, "Well done!"

[RahRah]

I've never bought a DR book or been to a seminar, never heard him speak...but I'm pretty sure he's not teaching anything new...budgeting is just like dieting...eat less than you expend and you'll be fine...

 

We had 2 mortgages for 31 months, we ran up cc bills just to stay above the fray...so to get us out of debt in a much shorter time..we took drastic steps...we ONLY use CC for gas...no more picking up a soda when we fill up....we use ONLY cash for all other expenses...started out with $800 a month and realized we could manage with $500-$600 for household (dance lessons, speech/debate fees/etc. are outside these costs). I will admit it, some months our 'expenditures' (meaning all outgoing bills other than cc, mortgage, car, insurance) were well into the thousands...I never realized how those stops on the go added up...we could spend $200 a month just on stopping quick for a sandwich here, drink here....shopping for clothes/dance gear etc. I am in a position now where we're literally paying thousands each month off in debt...if I can keep this bare bones budget going, we can be out of mortgage in 10 years easily (just bought our home 3 years ago with a 30 year mortgage)....it can be done, no need to spend money on someone else's common sense...unless you need it,...look at where you have expenses that are not NECESSARY....and just STOP spending...we would spend $1200 just on restaurants...with a family of five that might be 12x a month...2-3 times a week...we make gifts for Christmas...we sell old things we no longer use on Ebay...(I just sold all my stampin' up materials, groovy girls collection and made over $350...that pays for half our Christmas easily!)

 

Tara

 

I also haven't read nor heard Dave Ramsey, but DH and I realized about a year and a half ago that despite his very comfortable salary, we were getting nowhere financially - so we sat down and looked at all our expenses and figured out how to be debt-free by the time he turns 60 (he's 49 and I'm 44)

 

We looked at all the 'long-term debt' - student loans, mortgages; shorter-term debt - credit cards, cars; and various ongoing payments we need to make - taxes, disability insurance, life insurance, etc.

 

First we paid off the student loans - pay-off was 8-years early and saved us a couple of thousand on interest.

 

Then I took the sum we were using to pay off the student loans and rolled that to the credit cards by adding that amount to the minimum due each month - paid those off in a couple of months (we weren't badly in credit card debt, but the interest was high)....from that point, credit cards are for gas and paying various monthly expenses to get points, but only things we'd pay with a check or cash anyway...so they're now paid off each month in full.

 

After those debts were cleared, I took the sum again and worked my way through paying off one of our cars (the other was already paid in full since we purchased it in cash years ago) and wound up paying that off 18-months early, which again saved us oodles of interest. DH recently needed to purchase a new car, so we took a good chunk of our savings to put down a hefty downpayment, traded his ailing car and financed a very small part of the total, which we'll have paid off in six months.

 

Now I'm working on the second mortgage - in addition to our normal monthly payment, I add the sum I was using above to the principle each month....if I can continue doing this, we'll have the second paid in full in 3.5 years from now - which works out to 8-years early. In good months I also pay a little extra toward principle on the first mortgage - once the second is paid off, I should be able to roll the money we're paying toward the second into the first and have that paid off in ten years from now, which would be 15-years early and way more interest than I even want to consider we'd pay if we stick to a 30-year mortgage schedule!

 

All through this, each month, we started taking a 'cash' allowance - each of us gets an amount of pocket money that's ours to do whatever we want with when DH gets paid each month. Our agreement between us is that anything left over each month, we throw into what we call the "fun pot" in the kitchen and use for stuff that's not in our budget or when we go on vacation.

 

I also started taking out the cash I'd need for groceries for the month - in the past I'd just swipe the debit card and when I did a look back on our grocery bills, I noticed I was all over the place with spending on monthly groceries - so now I have a budget that I stick with and whatever I have left (if any) at the end of a month just rolls to the next as my "stock up" reserve if there is an awesome sale.

 

The last thing I do each month is something my father always told me to do that I never did do - pay ourselves first.....so we're doing that and each month we transfer 10% of DH's take-home to savings....slowly but surely the savings is growing and we like that we can save it and still live pretty much how we want to, it just takes some planning. I also now have a spreadsheet of payments due and coming up - and each month set aside (well mentally - it stays in the checking account) a portion of what's coming due in two, three, six months (like disability insurance, car insurance or life insurance payments).....this has made a HUGE difference for our monthly expenses since in the months where we have a big payment due, we're already prepared for it.

 

When we started this, DH also started contributing the maximum he can into the 401(k) at work - there is no matching, but it's forcing us to save now for retirement.....we never see it, so we don't miss it.

Edited December 5, 2010 by RahRah

[swellmomma]

I am too broke for DR it seems. I have lots of debt, mainly student loans and my mortgage but other smaller ones that add up too. I make just under 10K a year(I get by mainly with child support and child tax credit each month). With 4 kids, I live pay cheque to paycheque. I can not even come up with a couple $$ a month to start my emergency fund, crunching numbers it looks like it was going to take 2 years just to do step one. Another 15 to get through step 2. I feel like I will never get out of it. I was looking into DR because in 7 years I lose all child support and 2/3 of my child tax credit and wanted to be out of debt by then but I don't see how I can do that without working 3 jobs and never seeing my kids.

[Willow]

I am too broke for DR it seems. I have lots of debt, mainly student loans and my mortgage but other smaller ones that add up too. I make just under 10K a year(I get by mainly with child support and child tax credit each month). With 4 kids, I live pay cheque to paycheque. I can not even come up with a couple $$ a month to start my emergency fund, crunching numbers it looks like it was going to take 2 years just to do step one. Another 15 to get through step 2. I feel like I will never get out of it. I was looking into DR because in 7 years I lose all child support and 2/3 of my child tax credit and wanted to be out of debt by then but I don't see how I can do that without working 3 jobs and never seeing my kids.

:grouphug:

 

I'm sorry to hear this. Sometimes even Dave Ramsey cannot help. You cannot save money if you don't have any in the first place.

 

For those who do have an income , it is long, hard and boring, but it does work. We used it to get the daily spending under control (i was brought up like Brandy's kids, we were very very poor, and when we had money coming in each month I went the other way.....) We eventually, despite a few setbacks along the way, got straight so it was just the mortgage. Then we were blessed by an unexpected windfall, which just paid the mortgage off in full. If we had not been dave ramseying along, this windfall would not have done this....most would have gone on CC and other debt. Actually that is not true, if this had happened pre DR we would have spent it on holidays and 'stuff' and still had the debt.......

[Ottakee]

I am too broke for DR it seems. I have lots of debt, mainly student loans and my mortgage but other smaller ones that add up too. I make just under 10K a year(I get by mainly with child support and child tax credit each month). With 4 kids, I live pay cheque to paycheque. I can not even come up with a couple $$ a month to start my emergency fund, crunching numbers it looks like it was going to take 2 years just to do step one. Another 15 to get through step 2. I feel like I will never get out of it. I was looking into DR because in 7 years I lose all child support and 2/3 of my child tax credit and wanted to be out of debt by then but I don't see how I can do that without working 3 jobs and never seeing my kids.

 

Things are likely very different in Canada, but in your situation, I would see no problem with using food stamps/bridge card for food expenses, getting some welfare checks, etc. If you have a church family, they should be helping with basic expenses, etc. as well.

 

Again, not knowing your situation, is it possible to add in a small amount of income or sell things you don't need?

 

I don't think you are too poor for Dave Ramsey. Check out his books/materials at the library, videos on line, etc. Even if you glean just 1-2 ideas that help, over time, those little things really add up.

[Supertechmom]

So will his plan work for a family that is in the position of just not having enough money to cover expenses? We've pared down until I dont' see what else we can cut without completely doing without (like our cell phone is the only phone we have, we can cut that but there wouldn't be phone) Where would one start in this position? with Christmas being over, we could start in Jan with doing absolutely nothing but he bills but sometimes there isn't enough for the bills.:confused:

[Ottakee]

What a wide range of responses.

 

My husband and I did the program last spring and then this fall I went to a few of the session again (dh was teaching AWANA at that time) just to review.

 

It has really helped us a lot but honestly, we weren't in bad shape. We were just spending more than we should--esp. in previous years.

 

We though now have our 6 months living expenses in an emergency account

All debt is paid off--including the house

We are saving for retirement (but this needs some boost and a financial planner to help us)

We have funds set up for upcoming expenses--taxes, insurance, repairs, car tags, etc.

We are able to give more.

 

We need to work more on our retirement savings--dh will be 45 this week and then also saving money for a car in the future. Dh has a newer car (well 2004) but my van has a door welded shut (2001).

 

Due to having 3 special needs kids we don't need to save for college but there will be other expenses as they won't be "on their own" at 18 or 20 or maybe never.

 

It is nice to have our "gift" category funded so that I can just buy the Christmas gifts and the money is right there. I have money put away already for the wedding gift for later this month also.

 

I am praying that I can get 2 families I know to come to the next Dave Ramsey Class at church---starting Jan. 5th.

[DawnM]

Well, DR would work, but he would ask you to change something.

 

Either you need to bring in more income (2nd job) or cut more. One of the other has to happen or nothing will change.

 

Dawn

 

So will his plan work for a family that is in the position of just not having enough money to cover expenses? We've pared down until I dont' see what else we can cut without completely doing without (like our cell phone is the only phone we have, we can cut that but there wouldn't be phone) Where would one start in this position? with Christmas being over, we could start in Jan with doing absolutely nothing but he bills but sometimes there isn't enough for the bills.:confused:

[Ottakee]

So will his plan work for a family that is in the position of just not having enough money to cover expenses? We've pared down until I dont' see what else we can cut without completely doing without (like our cell phone is the only phone we have, we can cut that but there wouldn't be phone) Where would one start in this position? with Christmas being over, we could start in Jan with doing absolutely nothing but he bills but sometimes there isn't enough for the bills.:confused:

 

In this position (not knowing ANYTHING about your position or personal case) he would suggest things like:

either husband or wife taking on a 2nd job, adding a day care child, etc. to increase income

 

selling anything that is not absolutely needed---he says to SELL so much stuff that the kids think they are next

 

if you have 2 cars, go down to 1 if at all possible or sell a more expensive one to buy a cheaper one

 

move to a cheaper area/house/apartment with a lower cost of living

 

If the kids are old enough, have them help earn some money---babysitting, lawn care, cleaning, snow shoveling, part time job, etc.

 

There are also times when I feel that it is OK to use programs like food stamps, medicaid, WIC, other welfare help, etc. to get a leg up and get moving in the right direction.

 

Again, not knowing your situation at all (so don't take offense), try to look at what got you into this position--was it credit card use, loans, buying a bigger/better car/house than you could afford, etc. and then try to change those things.

 

Also, if you have a church family (and even if you don't), try going to them or a local service organization for some help and sign up for a budgeting class, etc. They might be able to help you out with some finances/bills for a month or 2 to get you back on your feet.

[Paintedlady]

It took us several years but we followed his advice and went from being clueless about our spending to having 6+ months saving in the bank last Feb. when dh lost his job. We were sooo very thankful to be in the financial position we were in when that happened.

 

Five years ago we were more than $60,000+ in debt and on the verge of losing everything. Today we're debt free, dh owns a new but thriving business and we're in the process of rebuilding the savings that were largely depleted early in the year while dh was unemployed.

 

ETA:

We both took on extra jobs for several years (and still do). Dh worked every weekend for over a year in addition to his regular job. At times he had two part time jobs. One of those jobs he turned into a business. I took on part time secretarial type work at night at our church for a couple years and now I tutor a bit.

Edited December 5, 2010 by Paintedlady

[mbeaser]

Sorry for not reading all the replies, my hour a day of internet I allow myself is almost up, but I personally found it very helpful. In short, 18ish months ago I had 55k+ in debt and was living on more than I took in per month. Friday I paid off my last credit card (total of 42k debt paid off, still have a student loan) and although my income will drop about 1200 a month next month, we can easily live on our income and continue to pay off debt at a good rate. I really love the forums at livinglikenooneelse dot com for help, try getting the book at the library first. It does take some personal discipline, and it really helps to have some accountability (kind of like real life....). Good luck :)

[FloridaLisa]

We began to follow DR-type principles when I quit working 14 years ago and we went to about 40% of our income stream. DR wasn't around then (or I'd never heard of him). I listened to Larry Burkett and read lots of financial books by authors like Mary Hunt, Amy Dz . . (The Tightwad Gazette) and many others (Your Money or Your Life is one I recall). Do a library search and you should find lots of good books with the same common financial sense that DR writes about. The DR books are also good and I've checked several out of the library.

 

For those who don't know where to start or think that your finances are too dire, I would recommend contacting Crown Ministries. It's a Christian ministry that has hundreds (thousands) of financial counselors around the country. These counselors will sit down with you for FREE and help you untangle your finances. DR's big picture is great, but sometimes it's hard to figure out just how to live below your means. For that, I would recommend checking out the many frugal-living books at your library.

 

We've seen the Lord really help with our finances. It's not always perfect, and I think there will always be certain financial stressors (the economy, a house that needs a new roof and a car that needs breaks are our current issues), but there is lots of help out there.

 

HTH,

Lisa

[....]

So will his plan work for a family that is in the position of just not having enough money to cover expenses? We've pared down until I dont' see what else we can cut without completely doing without (like our cell phone is the only phone we have, we can cut that but there wouldn't be phone) Where would one start in this position? with Christmas being over, we could start in Jan with doing absolutely nothing but he bills but sometimes there isn't enough for the bills.:confused:

 

You should listen to his radio show...this is everybody who starts his program. :tongue_smilie: I think when we first started, our monthly expenses exceeded our income by 400 bucks a month. :D