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I failed at emvelopes. It would probably work fine if I'd already paid down debt but due to debt there was too much borrowing from one envelope to cover another and then I lost some envelopes. I think I'm organized but then something like that happens. And then there is the "cash in my hand is cash I want to spend" problem. I do much better with one check book, one debit card, one credit card.
I thought DR said to save a thousand first so when you have a emergency you don’t have to charge it.
He does, Terry, and that was where UL's plan starts if I read it correctly, with saving a thousand first for emergencies.
My problem with that advice is it's not really adequate. The dog dental is 1200.
The renter's insurance should not be an emergency because you know that is coming.
We're trying to save up for the dogs each month because their care is so incredibly expensive, like flea meds and heartworm, taken all year--it really adds up. But it is not an emergency, and we need to plan for it.
That's right. That's what UL is planning on doing.Quote:
Originally Posted by Teacher Terry
TMS, said he was not following the plan so I got confused. We have pet medication in our regular budget. We paid for Mandy’s dental out of savings. We use a envelope for eating out $ because we have definitely got carried away before in that area. I agree that car and rental insurance should be built into the budget.
I am not very familiar with the plan, but from what I see, it is bad math but good psychology - because the psychological aspect relies on people not behaving rationally and people generally don’t.
but it is still bad math. You come out further ahead financially faster if you pay off the highest interest debt first.
if you have the cash to pay a loan and it is earning loan interest plus y, the math says keep the loan. You are being paid to send in a monthly loan payment. Easy work. And if you need to, you can pay off the loan and “quit” that “job”.
but if you are not going to behave rationally, whatever gets you ahead is better than nothing!
yes, agreed, thats why the Dave Ramsey method works and works well for a lot of people. But not all the people!Quote:
Originally Posted by Chicken lady
How do you get by on $1.75 a day for food? I’m pretty sure I shot that by eating a bag of peanut m&ms. And I tip more than that for a glass of iced tea after a round of golf. And I’m pretty sure the ice tea cost me a few bucks also.
I think it’s a good idea to track you expenses, but some things just seem nuts.
And i I admit I’m paying interest on my wife’s car loan, but it’s 1.9% and they would not reduce the price more even if we paid cash, so we took the loan. Even my MM funds are paying a bit over 1.9%.
But most people seem to be bad with money, so if this program helps with that, that’s a good thing.
Uh... what?Quote:
Originally Posted by ToomuchStuff
You all are bad asses! Wow!Quote:
Originally Posted by iris lilies
I am about to walk to the grocery store and buy a few groceries in cash -- with coins no less!