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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Sun May 20, 2012 4:02 pm 
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dieselenthusiast wrote:

What doesn’t make since is that I can walk into a dealership and buy a brand-new $45,000 dollar Dodge Ram Cummins Turbo Diesel with a plethora of willing banks to choose from. How does that work?


Well, a bank can easily send a repo guy to come get your truck, then sell it at an auction for at least some recovery of the costs, they can not easily do that with a home. I was just at friend's house yesterday in a decent neighborhood, I was surprised at the number of homes with knee high grass cause they were repos.
I know we need a plan I even said back in 2011, and I've had Dave's CD's and plan for a few years now, it's just actually doing it. I try to watch our spending while the wife enjoys watching the spending too as she writes the checks. I had to take her ATM card away many years ago. I'm not completely innocent, but I try to be a little careful. We do follow a few steps, 10% in 401K, 10% per month in savings, 10-15% per month in tithing at church, it's just the excess spending for junk we don't need. We have $4K in a car loan left, about $4K in a CC, then only other monthlies would be house/insurances so we aren't that far off.
Good luck on the business loan and thanks for the inspiration.

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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Sun May 20, 2012 4:46 pm 
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TAHOE wrote:
Well, a bank can easily send a repo guy to come get your truck, then sell it at an auction for at least some recovery of the costs, they can not easily do that with a home. I was just at friend's house yesterday in a decent neighborhood, I was surprised at the number of homes with knee high grass cause they were repos.


Yes, regardless of what our media wants us to believe, we are in the tank.

TAHOE wrote:
We do follow a few steps, 10% in 401K, 10% per month in savings, 10-15% per month in tithing at church, it's just the excess spending for junk we don't need. We have $4K in a car loan left, about $4K in a CC, then only other monthlies would be house/insurances so we aren't that far off.


In some ways, you're probably following his plan closer than I am. I modified his plan to meet our needs and wants. First, we pulled our retirements and 401K's to pay down the debt. Now that we are getting closer to meeting our goals, I'm buying gold and silver. I don't trust the dollar, so I'm preparing for the worst.

TAHOE wrote:
Good luck on the business loan


Thanks! We should be able to come to an agreement and a contract for a construction loan by next spring. I'm working to have 20% down.

TAHOE wrote:
and thanks for the inspiration.


That's why I posted. Dave Ramsey inspired me, so I'm hoping to inspire others. I'm glad that I was able to inspire at least one person, lol.

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Last edited by dieselenthusiast on Sun Jan 27, 2013 10:19 am, edited 1 time in total.

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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Tue Oct 09, 2012 12:42 am 
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Dave appears to be a man of integrity. I attended his Financial Peace University, and was impressed with the content as well as the man. We have implemented some of his steps, and they work great if you stick to the plan. Debt is ruining so many people, and I’m so grateful for his concepts.

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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Tue Oct 09, 2012 1:38 pm 
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And I still agree with him.... Debt Free is the best way to be!

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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Sun Jan 27, 2013 10:52 am 
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Now that 2013 is here, I’m now reevaluating our financial goals. We haven’t paid down much debt in the past 8 months. As a matter of fact, we bought another piece of property (adjacent to where we are planning to build our home). The price was good so we felt compelled to snatch it up. Our debt is as follows:

5 acre parcel (adjacent to building site) $31,000
5 acre parcel (building site) $28,000
Student Loans (combined) $16,000

Our total debt: $75,000

We haven’t had debt this low since 2002. The only difference is that we now have really good solvency.

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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Sun Jan 27, 2013 11:59 am 
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This is where things get a little tricky and where I have modified Dave Ramsey’s Baby Step Plan to become Debt Free. Let’s review his plan:

Baby Step 1 Put $1,000 in an emergency fund
Baby Step 2 Pay off all your debt (Credit Cards, Vehicles, School Loans, etc.). Pay your smallest debts first.
Baby Step 3 Increase your emergency fund to cover 3 - 6 months of expenses.
Baby Step 4 Start putting 15% of your monthly earnings into retirement.
Baby Step 5 Start saving up for your children’s college (Obviously only if this applies)
Baby Step 6 Pay off your home
Baby Step 7 Build wealth and give!

Okay, Baby Step #1 was completed before we started the program. We have partially accomplished Baby Step #2. All auto, RV, trailer and credit card loans are paid off. The only exception to the plan is that we still owe on student loans. We accomplished Baby Step #3 by increasing our emergency fund to cover 3 months of spending (excluding what we have in retirement and precious metals). We restarted Baby Step #4 in 2010. (In 2009, we took penalties and cashed out all of our retirements to pay down debts. Since we are in our mid 30’s, we figured that we had plenty of time to save for retirement). Being debt free will help us save money and plan for retirement more quickly. In addition to what we pay into retirement, we are also buying $300 dollars’ worth of gold and silver every month (this is not calculated as part of our retirement, savings, or being used as equity or collateral). We currently do not have children, hence why Baby Step #5 does not apply to us.

At this time, we are muddling through Baby Step #6. The two properties that we owe on ($59,000 of our current debt) will be calculated into the cost of our home. That leaves $16,000 of debt that I should have taken care of back during Baby Step 2. As with all expenditures, we took the risk and expanded our housing project instead, which I realize was putting the cart before the horse.

Why do I bring this up? Because we have two choices: We can either put more money into the improvement of our properties or more money into the bank to meet the bank’s requirement of 20% down for a home construction loan. Our other choice is to delay the building process and pay down the student loans. Decisions, decisions…..

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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Thu Jan 31, 2013 12:22 pm 
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dieselenthusiast wrote:
This is where things get a little tricky and where I have modified Dave Ramsey’s Baby Step Plan to become Debt Free. Let’s review his plan:

Baby Step 1 Put $1,000 in an emergency fund
Baby Step 2 Pay off all your debt (Credit Cards, Vehicles, School Loans, etc.). Pay your smallest debts first.
Baby Step 3 Increase your emergency fund to cover 3 - 6 months of expenses.
Baby Step 4 Start putting 15% of your monthly earnings into retirement.
Baby Step 5 Start saving up for your children’s college (Obviously only if this applies)
Baby Step 6 Pay off your home
Baby Step 7 Build wealth and give!

Okay, Baby Step #1 was completed before we started the program. We have partially accomplished Baby Step #2. All auto, RV, trailer and credit card loans are paid off. The only exception to the plan is that we still owe on student loans. We accomplished Baby Step #3 by increasing our emergency fund to cover 3 months of spending (excluding what we have in retirement and precious metals). We restarted Baby Step #4 in 2010. (In 2009, we took penalties and cashed out all of our retirements to pay down debts. Since we are in our mid 30’s, we figured that we had plenty of time to save for retirement). Being debt free will help us save money and plan for retirement more quickly. In addition to what we pay into retirement, we are also buying $300 dollars’ worth of gold and silver every month (this is not calculated as part of our retirement, savings, or being used as equity or collateral). We currently do not have children, hence why Baby Step #5 does not apply to us.

At this time, we are muddling through Baby Step #6. The two properties that we owe on ($59,000 of our current debt) will be calculated into the cost of our home. That leaves $16,000 of debt that I should have taken care of back during Baby Step 2. As with all expenditures, we took the risk and expanded our housing project instead, which I realize was putting the cart before the horse.

Why do I bring this up? Because we have two choices: We can either put more money into the improvement of our properties or more money into the bank to meet the bank’s requirement of 20% down for a home construction loan. Our other choice is to delay the building process and pay down the student loans. Decisions, decisions…..

Are you buying actually gold or some sort of stock? Been wanting to get some gold as well.

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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Thu Jan 31, 2013 12:42 pm 
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CIMARRON13 wrote:
Are you buying actually gold or some sort of stock? Been wanting to get some gold as well.


We take possession of it. We buy Gold in 5 gram bars, 10 gram bars, 20 gram bars, 1/10 oz., 1/4 oz., 1/2 oz., and 1 oz. bars/coins. We buy silver in 1/10 oz., 1/4 oz., 1/2 oz., 1 oz. bars/coins, 5 ounce bars, and 10 oz. bars.

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Last edited by dieselenthusiast on Wed Jul 17, 2013 10:24 am, edited 4 times in total.

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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Thu Feb 07, 2013 10:37 pm 
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"It's never too late to turn things around. You are the only obstacle."

"Those who don't manage their money will always work for those who do."

"You will either tell your money what to do or the lack of it will manage you"

"With the right knowledge, you can walk your way out of debt"

"When you base your life on principle, 99% of your decisions are already made."

"You'll only truly sacrifice when you passionately believe in the outcome."

"Wealthy people have simple investments. They do not overstep the bounds of what they understand."

"If broke people are making fun of your financial plan, you're on the right track."

"The first step to taking control of your money is to stop borrowing."

"Money doesn't have morals. It doesn't make decisions. It's not good or bad until we touch it."

"Living on less than you make is a matter of controlling yourself, not a matter of math."

-Dave Ramsey

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Last edited by dieselenthusiast on Sun Oct 06, 2013 11:06 am, edited 9 times in total.

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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Wed Mar 13, 2013 9:51 pm 
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Pay Off Your Home Early and Save Money—For Free!

"The concept of a biweekly mortgage payment is pretty simple. You make half of your mortgage payment every two weeks. That results in 26 half-payments, which equals 13 full monthly payments each year.

That extra payment can knock eight years off a 30-year mortgage, depending on the loan’s interest rate.

How to Set Up a Biweekly Mortgage Payment

1.Locate the principal and interest portion of your payment on your monthly statement and simply divide that number by two. For example, if the principal and interest portion of your payment is $1,500, your new biweekly mortgage payment is $750.
2.Find out how or if your mortgage company handles biweekly mortgage payments. Some lenders will process biweekly payments while others refuse to accept partial payments at all. In any case, do not pay a fee to initiate a biweekly mortgage plan.
3.If your lender isn’t open to biweekly payments, open a new bank account exclusively for your mortgage payment. Deposit your half-payment every two weeks and use that money to make your full mortgage payment either by check or automatic payment on every second deposit.

Things to Consider:

1.Make sure your extra payment goes where you want it to go. Make a note on your extra payment that it is to be applied to the principal portion of your loan.
2.Don’t forget to include the tax and insurance portion of your payment each month. In our $1,500 payment example above, the $750 biweekly payment only covers principal and interest. You’ll have to pay the tax and insurance portion of your payment in addition to that.
3.A biweekly payment is not a substitute for gazelle intensity. Once you reach Baby Step 5, start putting as much money as you can toward the mortgage to pay it off even faster.
4.Biweekly isn’t the only early payoff option. If you divide your monthly payment by 12 and add that amount to each month’s payment, you’ll end up making one extra payment a year. You’ll increase your $1,500 payment to $1,625, but you won’t have to jump through a bunch of hoops with your lender to make it happen."

http://www.daveramsey.com/blog/biweekly ... st.3-13-13

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 Post subject: Re: Anyone following the Dave Ramsey Debt Free Plan?
PostPosted: Sat Aug 10, 2013 9:23 pm 
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dieselenthusiast wrote:
Now that 2013 is here, Our debt is as follows:

5 acre parcel (adjacent to building site) $31,000
5 acre parcel (building site) $28,000
Student Loans (combined) $16,000

Our total debt: $75,000


7 months later:

We combined our student loans and property loans into one loan for a total of $54,000. Our monthly payment is $1,150 with a 5 year payoff. We are renting at the moment, but plan to build a garage and live in it for a few years prior to building a home. This way we can continue to pay down debt while we build. Anyway, we are back on track and making progress.

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