Join Now About Dave Ramsey FAQ

You need Macromedia Flash Player 8+ to view the tour.
Click below to download the free player.
Username
Password
Remember Me
 
 
 

Dave Ramsey's My Total Money Makeover Community

Dave Ramsey's principles on handling money are restoring hope in the lives of others. My Total Money Makeover has become one of the most trusted online communities in the area of personal finance. It's a place people feel comfortable asking questions about specific financial situations. Millions of dollars in debt have been paid off by My Total Money Makeover members by using this site to make a plan and stay motivated toward reaching their goals. Do you want to be a member? To get started, click here.
My Total Money Makeover Community
Decrease font size
Increase font size
Topic Title: New to Forums, New to TMMO
Topic Summary: November Budget
Created On: 10/28/2011 04:19 PM
Search Topic Search Topic
Topic Tools Topic Tools
View topic in raw text format. Print this topic.
 10/28/2011 04:19 PM
User is offline Print this message


MyTMMO User
I like stuff

Posts: 11
Joined: 10/24/2011


Hi Everyone, '
My husband and I are starting myTMMO for the first time this month. I was hoping I could post our budget for the month and get any tips or criticisms. Also, I am curious how everyone keeps track of their sinking funds? Do you have separate accounts for each purpose? Or do you have one account and keep a ledger of how much money is allocated for each purpose?

Gazelle Budget Money Tools
--------Totals--------
|Budgeted| 3129.84
|Income| 3132.57
|Spent| 0.00
--------Incomes--------
Income 3132.57
--------Charity--------
Redeemer Building Fund 50
--------Saving--------
Emergency Fund 600
Retirement Fund 0
College Fund 0
--------Housing--------
Rent 670
Renter's Insurance 12.35
--------Utilities--------
Electricity 65
Mobile Phone 72.74
Internet Srvc. 34.99
--------Food--------
Grocery 270
--------Transportation--------
Gas & Oil 350
Repairs & Tires 0
Car Insurance 118
License & Taxes 0
--------Clothing--------
Adults 0
--------Medical/Health--------
Doctor Bills 0
Dentist 0
Optometrist 0
Drugs 0
--------Personal--------
Hair Care 0
Gifts (incl. Christmas) 105 (3 birthdays and a baby shower this month)
BLOW 100
Hulu 7.99
Netflix 7.99
Tuition 245.02 (This will be our last payment! :-))
--------Recreation--------
Entertainment 0
Vacation 0
--------Debts--------
Visa 30 (711.82 balance)
Mohela SL 50.98 (4437.98 balance)
Car Loan 339.83 (18,418.69 balance. ug.)


Unfortunately, what's listed is not all of our debt. I around $13,000 in student loans that will come out of deferment next month.

Thank you! I'm looking forward to everyone's comments.
Thank you, looking forward to everyone's comments!
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/28/2011 05:08 PM
User is offline Print this message


MyTMMO User
Why call it The Dave Ramsey Show when I’m around?

Posts: 6609
Joined: 11/02/2008


Welcome! Glad you joined.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/28/2011 06:00 PM
User is offline Print this message


MyTMMO User
Why call it The Dave Ramsey Show when I’m around?

Posts: 5617
Joined: 07/23/2010


Welcome aboard!!

Since you're just starting, I'm guessing that the $600 to the EF is the BEF, just getting it up to $1K? If that's the case, you'll be able to kick out one of those cc's by the end of the year! Yay!

There are plenty of folks who will come by and ask you some follow-up questions, it looks like you're underway with the income you've got! I'm pretty sure that you already know that your car is a big chunk of the debt and monthly budget...

I'll give an answer to your questions about the sinking funds... I have a hard copy (ledger) and an excel spreadsheet. Mostly, these are cash envelopes, that don't leave the house. I store it in my safe and when I go to the bank to fill up my envelopes, I come home and fill up the envelopes for the sinking funds.

Glad to have you here!
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/28/2011 06:22 PM
User is offline Print this message


MyTMMO User
Shaved head

Posts: 556
Joined: 01/20/2009


Others will be along to comment on the budget, I just wanted to welcome you!!!

As for sinking funds, I keep all the money in our savings account and keep a spreadsheet to track what goes in and out of each SF allocation. HTH.

Again, WELCOME!
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/28/2011 06:26 PM
User is offline Print this message


MyTMMO User
I'm not normal

Posts: 458
Joined: 12/23/2009


Welcome. You have a pretty good first budget. You could cut Christmas and gifts to homemade things (Frugal Living Forum has some ideas).

Gas is high, do you drive a lot of miles?

Right now while you are in a lot of debt, your Baby EF is what you would use for an Emergency. So I wouldn't do any sinking funds, except for taxes and insurance if you don't have an escrow account. Also if you are paying car ins on a quarterly, or biannually basis, you would save for those things every month.

Car and medical emergencies would come out of the EF and then you would rebuild it again to $1000.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/28/2011 10:58 PM
User is offline Print this message


MyTMMO User
I like stuff

Posts: 11
Joined: 10/24/2011


Resident: We are aware of how much debt our car has provided. We definitely regret our decision to buy it, and we have considered selling it. However, we owe more than what they are selling for right now. :-( We are planning on making some progress and reevaluating the idea of selling it in another year.

yahudi: We live in an area with very poor public transportation. So, yes we do drive a lot. We both work full time and have half an hour commutes each way. It just adds up quickly.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/28/2011 11:16 PM
User is offline Print this message


MyTMMO User
I am Dave

Posts: 1874
Joined: 07/04/2011


Dave says:

If you own a car you know it is going to need repairs and you should have a small SF for that.
Christmas comes every year and a SMALL SF will be needed.
If you own a home and you have HOA fees you need a sf for that.

Most people need 2-4 SF, some with a larger SB need less because they can cash flow more. It all depends on the your personal finances.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 08:56 AM
User is offline Print this message


MyTMMO User
I like stuff

Posts: 11
Joined: 10/24/2011


Thank you, Funatthebeach.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 09:13 AM
User is offline Print this message


MyTMMO User
Leaving a legacy

Posts: 13655
Joined: 05/05/2008


I have one savings account that I keep an excel spreadsheet on that has the sinking funds.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 09:24 AM
User is offline Print this message


MyTMMO User
TMMO Guru

Posts: 226
Joined: 12/23/2010


Some banks allow you to link multiple savings accounts to your checking account. You might want to consider getting a separate one just for your Sinking funds. I would suggest that you do the BEF first, then build up your SFs slowly with a little bit of your snowball money as you work on the debt.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 09:31 AM
User is offline Print this message


MyTMMO User
Writing Dave’s next book

Posts: 4345
Joined: 03/15/2008


Sell the car.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 12:35 PM
User is offline Print this message


MyTMMO User
More Than Enough

Posts: 24466
Joined: 06/19/2008




Resident: We are aware of how much debt our car has provided. We definitely regret our decision to buy it, and we have considered selling it. However, we owe more than what they are selling for right now. :-(


If your credit is good, do this:

Figure the value of your car - say $10,000
Determine the gap - what you owe - the value - say $14,000, so $14k-10k=$4,000

Take out a line of credit for that amount of $4,000 or whatever you came up with. Do not use it yet.

Find a buyer for the car. Sell the car. Pay the rest of it off with the line of credit.

Buy a beater.

Viola - you've reduced your debt by $10,000 leaving $4,000
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 12:53 PM
User is offline Print this message


MyTMMO User
I like stuff

Posts: 11
Joined: 10/24/2011






Resident: We are aware of how much debt our car has provided. We definitely regret our decision to buy it, and we have considered selling it. However, we owe more than what they are selling for right now. :-(




If your credit is good, do this:



Figure the value of your car - say $10,000

Determine the gap - what you owe - the value - say $14,000, so $14k-10k=$4,000



Take out a line of credit for that amount of $4,000 or whatever you came up with. Do not use it yet.



Find a buyer for the car. Sell the car. Pay the rest of it off with the line of credit.



Buy a beater.



Viola - you've reduced your debt by $10,000 leaving $4,000


I'd not thought about that. I have a difficult time thinking outside of the box sometimes. I will definitely have to discuss this with my husband and see what he has to say.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 12:56 PM
User is offline Print this message


MyTMMO User
Why call it The Dave Ramsey Show when I’m around?

Posts: 8299
Joined: 05/19/2009


Sounds like you are getting good advice.

Just wanted to say Welcome!!
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 01:03 PM
User is offline Print this message


MyTMMO User
Golden Gazelle

Posts: 38901
Joined: 12/04/2008




Gazelle Budget Money Tools

--------Totals--------

|Budgeted| 3129.84

|Income| 3132.57

|Spent| 0.00

--------Incomes--------

Income 3132.57

--------Charity--------

Redeemer Building Fund 50

--------Saving--------

Emergency Fund 600

Retirement Fund 0

College Fund 0

--------Housing-------- This is excellent, at only 21.8% of your take home pay.

Rent 670

Renter's Insurance 12.35

--------Utilities-------- Again, you're doing well here.

Electricity 65

Mobile Phone 72.74

Internet Srvc. 34.99

--------Food-------- If you haven't already done so, please go to the Forum Basics and read through Kvarady's 13 Tips For Shaving 20% Off Your Grocery Bill. You might be able to trim a bit here.

Grocery 270

--------Transportation--------

Gas & Oil 350 Can you consolidate some trips here? Maybe do all your errands in one trip, stop for groceries on the way home instead of making a special trip, etc.?

Repairs & Tires 0

Car Insurance 118

License & Taxes 0 You will be needing these. Figure out how many months away these bills are, divide the amount needed by the number of months, and then put away that much each month.

--------Clothing-------- When you do need clothing, take a day trip to all the thrift and consignment shops in your area. You can find nice name brand things at a fraction of the retail prices.

Adults 0

--------Medical/Health--------

Doctor Bills 0

Dentist 0 If you don't have dental insurance, put away enough each month so that you can easily pay for your teeth cleaning every 6 months.

Optometrist 0 How often do you get your eyes examined? Again, figure out how much you need to put away each month to cover this.

Drugs 0

--------Personal--------

Hair Care 0

Gifts (incl. Christmas) 105 We put away $50/mo for this category.

BLOW 100

Hulu 7.99 I manage to watch the shows I like on the free version of Hulu, and on the network websites.

Netflix 7.99

Tuition 245.02 (This will be our last payment! :-)) Very nice. This will be a great addition to your snowball.

--------Recreation--------

Entertainment 0 Look around your area for all the free things you can do for entertainment, so you won't feel deprived.

Vacation 0

--------Debts-------- Please do include all your debt here, even though it's in deferment. It gives a better picture, and we can give better advice.

Visa 30 (711.82 balance)

Mohela SL 50.98 (4437.98 balance)

Car Loan 339.83 (18,418.69 balance. ug.)



Others have suggested selling the car, and I will also. Could you go to whoever holds your auto loan, or a credit union, or your bank, sit down with a manager, show them your budget and let them know that you're trying to get out of debt? They may be willing to set up a small loan to cover the difference between what you owe on the car, maybe $2,000 for a beater, and what you're able to get for it. Folks here have done this in the past. Do you realize if you sell that car, you immediately get rid of almost 50% of your debt?
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 01:13 PM
User is offline Print this message


MyTMMO User
I stole Dave's boat

Posts: 15564
Joined: 02/02/2007


I just want to say welcome! You've come to the right place!
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 08:09 PM
User is offline Print this message


MyTMMO User
Cash is King

Posts: 12147
Joined: 11/09/2009


Hi and Welcome!!!

This forum is fantastic, full of knowledgeable, generous folk who want you to succeed

Looks like you are off to a great start, good for you!

Fi
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 10:13 PM
User is offline Print this message


MyTMMO User
Better than I deserve

Posts: 303
Joined: 09/12/2010


Welcome!

I'm glad you've joined, and it looks like you are off to a fine start.


Sandy
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 10:18 PM
User is offline Print this message


MyTMMO User
Writing Dave’s next book

Posts: 3008
Joined: 03/13/2004


Welcome aboard to you and your husband.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
 10/29/2011 10:50 PM
User is offline Print this message


MyTMMO User
Certified Gazelle

Posts: 404
Joined: 10/09/2011


Welcome!

We don't use sinking funds and have one checking account and keep an excel spreadsheet of how much money is allocated for each purpose relative to that one checking account.
Would you like to contribute to this conversation? Learn How : Link To : Top : Bottom
Statistics
There are currently 11 users logged in.
 
 
 
© 2014 Lampo Licensing, LLC. All Rights Reserved.

 

FuseTalk Enterprise Edition - © 1999-2014 FuseTalk Inc. All rights reserved.