Same old story

[timetosave]

Re: Same old story

Lux, that sounds like a really good idea, ING is that a brokerage? Can I have monies from my paycheck going into it...thanks

G

[timetosave]

Re: Same old story

lux living, I cannot just let money sit in a checking account either. I have my weekly budget written down on a yellow pad. On payday, the cash comes home and goes into envelopes, one for elec, car payment, christmas, phone, food, misc., taxes and insur., etc. When I pay those bills, only that cash for the bills goes into the checking. I leave a small amount in the checking for a cushion. That is all! (I never borrow from the envelopes either)

Ok, this is the envelope method I've read about right? You keep your money in the envelopes until you have enough to pay the bill? What do you do with the money you have 'left over' from your paycheck?

[timetosave]

Re: Same old story

Oh, I think saving my receipts is a VERY GOOD idea...it will force me to look at what I'm spending and for what. I know mindless spending is what has gotten me where I am...this will keep me honest not only with myself but with all of you also.

I think I will look into an online saving account. I have 150 sent to my savings account now...the problem is it usually does not last through the weekend...I will set up the online account to be as difficult as I can to get to the money...I will start researching those today.

thanks

I didn't say I did, but then I track my spending by entering them into a spreadsheet, so I don't need to. I also use my CC for nearly everything, paying it off in full each month, so I have that for historical analysis as well. And I use Quicken.

Just a suggestion for you to try since you said you couldn't do a budget for another four weeks.

About automatic savings - that is super helpful. I have money sent to savings each month and like you said, out of sight out of mind. Maybe that is an area for you to think about as well. Many people here have accounts with online banks (emgirant direct, ING, etc.) which makes it a tad bit harder to get at your money right away. Maybe setting up some sort of automatic deposit to a savings account would help build the savings habit a little more and leave you with a bit less money to spend.

[timetosave]

Re: Same old story

If it won't happen then I think the conversation is better spent on dealing with what you can do. Build your credit by paying off your debts and then keeping up with them (should you incur any more) so that you don't fall behind again.

I guess I'm trying to understand how that thinking is flawed...or not flawed...I will focus on the other but would like to know why this would either be good or bad

thanks

[LuxLiving]

Re: Same old story

ING is that a brokerage? Can I have monies from my paycheck going into it...thanks

ING does indeed have brokerage available. BUT, what I am referring to is

http://www.INGdirect.com

Not sure on direct deposit.

[Homebody]

Re: Same old story

I have ING accounts and it does take a few days for the money to transfer back into my account. I have a smaller savings attached to my checking account, but have pretty much learned to not look at it and pretend like it is not there.

Also Time to Save, I sent you a private message.

[timetosave]

Re: Same old story

Homebody I received the PM...thanks you are SOOOO HELPFUL. I'm really beginning to just love you guys...

I'm like you as far as putting the money in one of these accounts and just forgetting about it...treating savings like I treat my retirement account will definately work. I think I can get direct deposit to ING through my job also.

G

[Ima saver]

Re: Same old story

The envelope method; first so much 10% go to savings, I get an allowance and so does dh. The last two envleopes are medical and christmas. (those are the two things I cut if I do not have enough money for all the envelopes) On a good week, when all envelopes are full and we both have our allowance, any money left over goes into savings also.

[Great to be Debt Free]

Re: Same old story

I'm glad to see the recent posts looking so hopeful! As for your recent question, TimetoSave, I would really hesitate to recommend debt consolidation/debt-management. I looked into it when I was at rock bottom, but avoided it in the end.

Reasons I am hesitant, and acknowledging that I have NOT tried it, so I don't have first-hand experience:

I researched a few, and found complaints on multiple websites (wish I could remember which ones-- it was 5 yrs ago, though) that some of them are, well, bigger problems altogether. They a) charge a fee (higher than acceptable by industry standards) that comes off the top of the 1xper month check you send
b) sometimes they are not timely with their payment sout to your creditors, which means you still have late payment fees, AND if you are over your limit, over limit fees
c) sometimes they disappear altogether -- and for the worst ones, they arrange to have your bills mailed to THEM so you don't even know the payments aren't being made to your accounts.

SO again, I personally recommend contacting your creditors personally. In Total Money Makeover (which you should be receiving soon), it has a plan where you write your budget of must haves -- these are the utilities, car payment, rent, etc. Then with your "discretionary" fund you list all your creditors, how much you owe each and what percentage of your debt that accounts for. Then you send each one a copy with a check for the percentage of your discretionary money that correlates to that debt.

Ask for a reduction in interest rates, or ask them to eliminate over limit fees. See if any have automatic payment optoins, where you could set it up to automatically pay $10 2x a month or something in exchange for dropping the rates, etc. Basically, make a good faith offer that will show them you are serious. Of course, this may not work in your case (not sure) because a lot of the accounts were charged off (and closed I assume??).

There are some companies out there that do debt- consolidation. Basically, it is a loan and you pay them 1x monthly. Interest rates on your credit cards and such may not be lowered at all, but you are only writing the one check per month. Basically, because of the fee for the consolidation company, you are just in debt longer.

IF you decide to go that route, Dave Ramsy (author of TMM) says this:

"Of the debt-management companies, Consumer Credit is the best." He says they are the most thorough, negotiate the best rates, and also do education. He still warns not to do it -- it can further damage your credit (See pp 63-65 when your copy arrives). He says that Ameridebt is one of the worst. Check with the BBB and you'll find the same thing. The owner's husband even plead guilty to defrauding customers in a debt-consolidation loan scam.

So there's my 2 cents on that!

Baby steps... one at a time!

[timetosave]

Re: Same old story

Great to be...I'm not looking at a debt consolidation company...but a loan (after I figure out how much I owe) to pay off everything and then just paying back that loan. I just don't trust handing my money over to complete strangers and it does not help me learn a single thing about debt management if someone else is paying the bills for me. I've looked online for a loan for people with bad credit and just can't bring myself to trust any I've seen yet...I just think if I could pay everything off (even the charged off credit cards) everything at one time it would just put me in a stronger position financially, stronger credit rating, stronger person.

Maybe this is the wrong way to look at things...again I am just starting.

thanks

[Great to be Debt Free]

Re: Same old story

I can totally see your point, but keep in mind, those little successes where the $300 credit card goes away, then the $500 one goes away, then... then... then... Let's just say it's a great motivator! For me, it helped to look at the little chunks when paying them off instead of one huge overwhelming number!

But we're all different!

And it sounds like you've figured out that a lot of the loans targetted to people with less than stellar credit usually have a catch, so just continue to do your research. You may find just what you're looking for.

Question, of the charge accounts you have, how many are still open and what are your interest rates on them? Also, are any of them over limit?

I hope your e-bay sales are going well! And that you get good buyers who pay promptly and aren't troublemakers! I have to be careful about E-Bay myself -- just like I find myself sometimes spending too much time on this forum when I should be working my online courses, I find I spend $$$ if I look on E-bay! It's fun, but I'm bad about window shopping -- I tend to not leave things in the window! LOL!!

[timetosave]

Re: Same old story

I'll definately keep looking for the loan...I will pay off what I can in the meantime.

Ebay...I don't have a problem spending there...I'm too visual. I have to see an item, touch it...before I purchase it...I just don't trust enough to buy stuff on ebay, I've bought a few baseball cards but nothing over say $5.00 any more than that and I feel they are trying to rip me off...or what if I don't get my stuff...no I'm not bad on ebay...lol

G

I can totally see your point, but keep in mind, those little successes where the $300 credit card goes away, then the $500 one goes away, then... then... then... Let's just say it's a great motivator! For me, it helped to look at the little chunks when paying them off instead of one huge overwhelming number!

But we're all different!

And it sounds like you've figured out that a lot of the loans targetted to people with less than stellar credit usually have a catch, so just continue to do your research. You may find just what you're looking for.

Question, of the charge accounts you have, how many are still open and what are your interest rates on them? Also, are any of them over limit?

I hope your e-bay sales are going well! And that you get good buyers who pay promptly and aren't troublemakers! I have to be careful about E-Bay myself -- just like I find myself sometimes spending too much time on this forum when I should be working my online courses, I find I spend $$$ if I look on E-bay! It's fun, but I'm bad about window shopping -- I tend to not leave things in the window! LOL!!

[timetosave]

Re: Same old story

Good morning all. I've been up since 6am reading vines on this site...I've probably read most of them in the personal finance section.

Questions:

What percentage should I strive for in savings vs wants and needs. I'm realistic enough to know wants will always exist ignoring that is foolish and will only defeat me in the end. I am assuming that wants should only be purchased in cash...is this cash left in an envelope (the envelope method) and not the bank

I'm still not fully understanding the envelope method...I just came across a vine about it and will go over and read that in a minute

What are Dave's Baby Steps and where do I find it?

What is "challenge money" where do I find these challenges?

Second Job - My goals are a little bigger now than just getting my credit in line. I want to never need to use credit again...I realize I'm old and am starting late but I feel I can not only get out of debt, but that I can save and eventually not need the bank for the things I want in life...I would like, for once in my life, not to look at cc as income (I know pathetic but I now realize that is how I've been looking at it) so my question is what companies (other than Mary K or Avon - one on every corner here) offer honest return if I dedicate evenings and weekends (which will help keep me in the house and out of the mall with dd and give me something productive to do instead of spending money on bb cards) to the business. I'm looking for a second, third and even fourth income that will work with my "mom" responsibilities (which I take VERY seriously) and will allow me to keep my current full-time job.

I have quite a bit of expertise in adopting children with special needs (my degree is in social work) I am thinking of maybe writing an ebook or something of the sort...there has to be a way I can put that degree/knowledge to work for me as added income.

Thanks everybody. I am also posting this in the personal finance section so I can get some feedback over there...

I'm so glad I've found this board.

[meaghanchan]

Re: Same old story

Timetosave: I've been reading this thread, but I just wanted to pop in and congratulate you on taking control of your finances. I am sure you will succeed!

I can't answer most of the questions in your last post, but I can answer the one about Dave's baby steps. They are 7-step system for getting out of debt and building wealth.

Here they are:

1. $1000 in the bank to start an emergency fund
2. Pay off all debt (excluding the mortgage) using the Debt Snowball (paying off debts smallest to largest, regardless of interest rate)
3. Three to six months of expenses in savings (in emergency fund)
4. Invest 15% of household income into Roth IRAs and pre-tax retirement
5. College funding for children
6. Pay off home early
7. Build wealth and give; invest in mutual funds and real estate.

You can find this on http://www.daveramsey.com, as well as listen to Dave Ramsey's radio show online. I don't agree with everything he says, but his show is very inspiring to people working their way out of debt.

Good luck, I wish you a great deal of success!

[LuxLiving]

Re: Same old story

Hi TimeToSave-

Just have a minute before I pop off to get ready for church.

Three things:

Visit here:

https://my.mvelopes.com/budget-center/index.php

You might not need to invest in their program if disciplined you can do it w/literal envelopes at home. But the premise is explained very well here!

Second:
Make yourself a list of lowcost/no cost things you and your children can do with down time.
1) Go to park.
2) Walk the dog.
3) Read a book together - form your own book club.
4) Try a new recipe.
5) Revamp her bedroom in a mini-low budget makeover!
6) you get the idea, right?

Use the list when shopping urge strikes!!!

Thirdly:
If you're a reader and have a local used bookstore nearby try to locate a cheap $1.00 copy of The Richest Man In Babylon. It has some important concepts told in story form. Memorize the rules.

This book suggests something like a 60/30/10 plan - can't find my copy this instant ACKK! to tell you exactly Anyway I revised it for us:

10%tithe/10%savings/20%debt reduction/50%current expenses -wants had to come from current expenses. I replaced wanting to be out of debt w/most any other want in order to knock out debt. It worked. Keep in mind that you are going thru a process, and what works now will lead you to a different place where you'll make adjustments and changes thru-out the process.

You are doing great!!! Hopefully someone else will be along in a minute to help w/your other questions.