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 Some Kind of Trouble
Posts: 4430
  
| I know there has been very informative threads about this topic but can we revisit how you all budget and if you follow Dave Ramsey, how do you start? I don't like the thought of paying money to save money when I'm not sure it's the plan for me and I was overwhelmed by the website.
I was also interested in those who do an "envelope/cash" method, I can't remember all the details but I know I've read about it. Little background, I'm single, no kids, one job.. regular bills, paying on truck and trailer and my house. Just looking to make my money go as far as I can make it and want more in savings instead of feeling I'm going paycheck to paycheck still.
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  Texas Lone Star
Posts: 5318
Location: where ever my L/Q trl is parked | I know several people that when to these seminars, they learned a lot and really helped them get a handle on their money spending. The mother even talked their son and future d-i-l to go before they got married.
It takes discipline to stick with it. Better to spend a bit to help out later.... | |
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 Expert
Posts: 1718
 
Location: Southeast Louisiana | You start by putting together a $1000 emergency fund. Then, you start with the smallest debt, paying only the minimum on others, and putting as much as you can on the smallest. He talks about selling whatever you can, cutting back wherever else you can.
Also, I used to listen to his radio show a lot. He encourages people to give his books away to others who can't really afford them, and does often send free books to callers. He knows he will make money on his books and his program, from people who can afford it. He helps those in need. He would often just tell people to buy a book after they get out of debt, to give to someone else. He is truly a Christian. | |
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 Elite Veteran
Posts: 1119
| I agree with listening to the radio show, it's free and before long you'll know the answers to all the calls! The Total Money Makeover book would also be a good place to start to get everything in order.
As far as actually budgeting, I make a budget each month and factor in every payment, savings, special event, etc. I also have an Excel sheet where I have listed out all debts, the payment, and current balance, and then the projected balance, factoring in payments, until it's all paid off. That gives me a good idea of whether I'm on track or not, and it can be motivated to "beat the projected balance."
I don't follow his plan exactly, but pretty close. I still save and contribute to retirement even though we have some debt, and if I go over our grocery budget (or whatever) I don't flip out about it, I just try to cut back a bit in other areas. | |
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 Expert
Posts: 2457
| Hi - feel free to PM me any and all questions you may have!
My SO and I chose to take his Financial Peace University class in January through our church. We chose the class (over going it alone/ on our own) because it will help keep you accountable in your finances, you get support from others who are going through the same steps/issues/ and little victories you are, and it offers a group of people that have been there and are leading you through the same program.
You start by saving 1,000$ - this is an emergency fund to use when major things happen - ie, your horse rips their leg open and you have to pay the vet (this happened to me during the class).
Next, you set up your budget and you start working it. Then you start paying your debts down while doing your best to not incur more debt. This is where the envelopes come into play and some of his other tools.
I use the envelopes to pay for things like - insurance once a year, my hay, known vet things (shots/wormers,etc), save for trips and things of that nature - also my competition fees. I like it because I know exactly what I can and can not afford. There is no guessing, no "I think I can/can't" and it really does bring a peace of mind while going through the process. I use a modified system for my envelopes that I can track through my savings bank account. For instance - I have a pie chart set up that corresponds with each dollar in the account and each part of the chart corresponds with its' own envelope. Thus, all my money is in a savings account, but each dollar is earmarked and divided up into my "envelopes". I find this easy to work with, and can just go past the bank, draw out my cash and go.
The SO actually carries cash with him in envelopes and does better that way ... to each their own as long as you are accountable for what you are doing.
Dave will encourage you to sell stuff, quit making excuses, find extra jobs, and WORK for it. I like the program because their is no room for excuses but there is PLENTY of support and good Christian values mixed into the delivery. His radio show, online blogs, and extra's really do help keep you on track!
Good Luck! You can do it and I really recommend taking the class - it changes lives and WORKS for millions of people. | |
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Expert
Posts: 1956
Location: Ky | Dodge629 - 2014-08-25 1:07 PM I know there has been very informative threads about this topic but can we revisit how you all budget and if you follow Dave Ramsey, how do you start? I don't like the thought of paying money to save money when I'm not sure it's the plan for me and I was overwhelmed by the website.
I was also interested in those who do an "envelope/cash" method, I can't remember all the details but I know I've read about it. Little background, I'm single, no kids, one job.. regular bills, paying on truck and trailer and my house. Just looking to make my money go as far as I can make it and want more in savings instead of feeling I'm going paycheck to paycheck still.
Dave gives some very good advice and some very bad advice. He would sued over some of his investment advice if he didn't lay out it out there as for "entertainment only".
The living within your means advice he gives is just plain old common sense.
But, I know a guy that lives the Dave Ramsey system to the letter. The guy has never made more than $10/hr in his life. He's about 59 years old now and hasn't worked in 3 or 4 years since he couldn't find a job after being laid off from his previous job. His home is paid for. He's never had a car loan and buys only junkers that he can pay for because Dave says that's how to do it. He does buy health insurance because Dave says so. He buys 20 year term life insurance because dave says so. Doesn't hurt ole Dave that recommends Zander Ins, {Dave's company}, for that.
That is how to do the Dave Ramsey system. Not the part that you like. While I say this guy lives like a hermit, won't travel outside of Louisville for anything, will not go a restaurant to eat and doesn't have a lot of friends because friends normally do everything together and this guy won't do anything that costs money because Dave might not approve.
The guy does seem satisfied with his lifestyle choices and I suppose that's the most important thing.
If a person cannot live within their means without outside help then Dave would probably be a place to start? | |
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Expert
Posts: 2457
| jd&ez - 2014-08-25 2:36 PM
Dodge629 - 2014-08-25 1:07 PM I know there has been very informative threads about this topic but can we revisit how you all budget and if you follow Dave Ramsey, how do you start? I don't like the thought of paying money to save money when I'm not sure it's the plan for me and I was overwhelmed by the website.
I was also interested in those who do an "envelope/cash" method, I can't remember all the details but I know I've read about it. Little background, I'm single, no kids, one job.. regular bills, paying on truck and trailer and my house. Just looking to make my money go as far as I can make it and want more in savings instead of feeling I'm going paycheck to paycheck still.Â
Â
The living within your means advice he gives is just plain old common sense.
But, I know a guy that lives the Dave Ramsey system to the letter. The guy has never made more than $10/hr in his life. He's about 59 years old now and hasn't worked in 3 or 4 years since he couldn't find a job after being laid off from his previous job. His home is paid for. He's never had a car loan and buys only junkers that he can pay for because Dave says that's how to do it. He does buy health insurance because Dave says so. He buys 20 year term life insurance because dave says so. Doesn't hurt ole Dave that recommends Zander Ins, {Dave's company}, for that.
That is how to do the Dave Ramsey system. Not the part that you like. While I say this guy lives like a hermit, won't travel outside of Louisville for anything, will not go a restaurant to eat and doesn't have a lot of friends because friends normally do everything together and this guy won't do anything that costs money because Dave might not approve.
The guy does seem satisfied with his lifestyle choices and I suppose that's the most important thing.
If a person cannot live within their means without outside help then Dave would probably be a place to start?Â
You have some good points about people knowing how to live within their means. The guy you have for a Dave example is a bit extreme I'd say ... however, if it works for him, cool. But please don't imply that this is the norm.
I think the thing that it helped us with most was building a plan for getting out of student debt. No, it wasn't an impossible amount of debt, but it was enough to make us wonder if we had made incorrect decisions. | |
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Miracle in the Making
Posts: 4013
| Dodge629 - 2014-08-25 2:07 PM I know there has been very informative threads about this topic but can we revisit how you all budget and if you follow Dave Ramsey, how do you start? I don't like the thought of paying money to save money when I'm not sure it's the plan for me and I was overwhelmed by the website.
I was also interested in those who do an "envelope/cash" method, I can't remember all the details but I know I've read about it. Little background, I'm single, no kids, one job.. regular bills, paying on truck and trailer and my house. Just looking to make my money go as far as I can make it and want more in savings instead of feeling I'm going paycheck to paycheck still.
I don/t know who ramsey don/t care commom sense is the best
look at your interest rate is it compound or simiple most vechiles are same with trailers
houses are always compound and so are credit cards if you don/t pay balance evry month
look ate bankrate.com it will amoratize your loans and show you where your interest is also will show you how much u can save on your house by paying
on the principle every month just be sure to identify to ur loan co extra is priciple only.
pay ur self a few dollas ever week and have it invested
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Good Ole Boys just Fine with Me
Posts: 2869
Location: SE Missouri | With anything there are extremists. We did have done the debt snowball and it's extremely helpful. We haven't ever stuck with a budget and we are trying. When you put it down on paper it helps put a perspective on things. I really like his books. I actually have them to my three sister, parents, and a couple friends for Christmas one year. | |
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 Elite Veteran
Posts: 617
Location: London Ontario | I have never went to any of his classes but what we have found works for us is a joint account to pay all our bills out of. We both have our own personal accounts too. We figure out at the beg. of the month how much we need to cover all our bills and then a little for savings. We put that amount of money in the joint account each pay check and what is left over is our own responsibility. Now I have student debt and he has a car loan that we each pay for separately. I also have an RSP that I put money to each month but I do that on my own. We know how much we can spend in fuel or food each pay check and when that money runs out we try not to take it from something else as much as we possibly can. We can then track how much we spend each month at Tim Horton's or on fuel and we then try to minimize that as we can. We are currently saving for a house so this helps us decide on what we can spend on mortgage payments each month. As much as our friends have newer vehicles or toys we try to live within our means cause we have more responsibilities (dogs, horses, rodeos, don't live at home etc)
I don't think there is one fool proof way that will work for everyone. You have to see what works for you and improve on it. Some couples work best with a joint account where as others have no idea how much their partner has in the bank. | |
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Regular
Posts: 70
| jd&ez - 2014-08-25 1:36 PM
Dodge629 - 2014-08-25 1:07 PM I know there has been very informative threads about this topic but can we revisit how you all budget and if you follow Dave Ramsey, how do you start? I don't like the thought of paying money to save money when I'm not sure it's the plan for me and I was overwhelmed by the website.
I was also interested in those who do an "envelope/cash" method, I can't remember all the details but I know I've read about it. Little background, I'm single, no kids, one job.. regular bills, paying on truck and trailer and my house. Just looking to make my money go as far as I can make it and want more in savings instead of feeling I'm going paycheck to paycheck still.Â
Â
The living within your means advice he gives is just plain old common sense.
But, I know a guy that lives the Dave Ramsey system to the letter. The guy has never made more than $10/hr in his life. He's about 59 years old now and hasn't worked in 3 or 4 years since he couldn't find a job after being laid off from his previous job. His home is paid for. He's never had a car loan and buys only junkers that he can pay for because Dave says that's how to do it. He does buy health insurance because Dave says so. He buys 20 year term life insurance because dave says so. Doesn't hurt ole Dave that recommends Zander Ins, {Dave's company}, for that.
That is how to do the Dave Ramsey system. Not the part that you like. While I say this guy lives like a hermit, won't travel outside of Louisville for anything, will not go a restaurant to eat and doesn't have a lot of friends because friends normally do everything together and this guy won't do anything that costs money because Dave might not approve.
The guy does seem satisfied with his lifestyle choices and I suppose that's the most important thing.
If a person cannot live within their means without outside help then Dave would probably be a place to start?Â
"Dave gives some very good advice and some very bad advice. He would sued over some of his investment advice if he didn't lay out it out there as for "entertainment only"."
THIS. Lose your lifestyle debt, then see a professional financial advisor.
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 Extreme Veteran
Posts: 475
Location: Alabama | http://www.livinglikenooneelse.com/ is a free message board for followers of Dave Ramsey. If you ask for advise, be prepared for Dave Ramsey type advice. They are not going to tell you it's ok to make bad financial choices. They are *great* at looking at budgets & finding ways to make cuts.
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Folks on-line