I agree

What’s the point of all the money when you can’t enjoy it. Plus, part of the DR lifestyle is to bless others with a portion of what we’ve earned.

March 10, 2016 | Category: balance

It’s also a sad reminder that after

we have “lived like no one else” we’re supposed to eventually “live like no one else.” While I’m sure the great nephew was thrilled with the windfall, the whole point is to be able to enjoy the fruit of your labor…being so miserly that you “wear shoes down to the thread” when you could actually afford a comfortable lifestyle, is just sad.

February 27, 2016 | Category: card

This reminds me of the Katz sisters

my landlords for my first apartment. The Katz (yes that really was their name) sisters were two tiny elderly women, identical twins in fact. Who not only ran the apartment building of efficiency apartments (One room, Murphy bed in the closet and the tiniest kitchen you ever cooked in—Hey I paid $57.50 per month all bills paid!), but I found out later owned the roach infested place (I called them Trojan horses, because they were so big they could carry off a loaf of bread!—lovely place.)
I digress though, anyway, I’d been living in the Katz Roach Motel for about a year when I realized there were police and an ambulance downstairs one day. Both women had died of natural causes within an hour of each other. The coroner said the shock of finding her sister dead killed the second sister.
Anyway, they had no close relatives listed on anything so the police went through their tiny apartment to see if they could locate the name of a relative. What they found astounded everyone. These little ladies who lived in such a tiny apartment and wore their clothes until they were strings had a LARGE stack of shoe boxes in their single closet that were PACKED tightly with large denomination savings bonds—most of which were matured. They were multi-millionaires and the single great nephew the courts located, who didn’t even know they existed inherited it all.

Great inspiration

This lady died a millionaire from a school teacher’s salary. No one knew how rich she was because she didn’t live that way. It goes to show that it can be done and what we make is less important than how we spend it.

Where I was going with this was to find out

if there is any difference if I pay the balance off every month while working to pay the card off entirely – as a way to minimize or prevent any interest being charged. The only way I can pay it off entirely every month is if I use it for paying monthly bills. I’m still working my way through understanding how the interest is charged which is why I asked.

January 5, 2016 | Category: budget

Your logic is completely backwards

You can’t decrease the interest paid by increasing the balance. Stop using the card! Yes, I’m yelling – you can’t get out of the hole if you keep digging. Do you have any extra items that you can sell to pay that $440.52 and be DONE with the card?
If you can squeeze $100 our of your monthly budget, you’ll have it paid off within 5 months, depending on the interest.

So here is what may be a daft question – maybe not

I have balanced billing on my gas and electricity. The house electricity runs typically between $120 – $145 a month (depending what kind of summer we have and how early/late it arrives and how long, being that this is Oklahoma the ever-changing), and the barn/security lights run around $65. The gas bill typically is around $50 a month if I don’t use the heating during the winter (which I don’t typically since I use kerosene). So if I add those together, it’s about 235.00. My payday loans are currently at $440.52. Can I, by using the cc in the interim to pay those bills (after placing that $235 on the CreditOne card) AND by making the regular min payment, knock the interest down at all? Or is my logic completely backwards here?

Yes, If the interest is figured on an average daily balance

the faster you lower the balance the less interest you pay. Because not only do they figure the interest on the average daily balance they ADD interest daily to raise that balance back up! So the more you can pay and the sooner you can pay the faster you will get out of debt and for far less money. I wrote about this in one of my blogs: http://mindurpennies.blogspot.com/2013/07/my-biggest-money-saving-hint.html I’ll tell you that is one of my more complicated blogs to read, but if you wade through it and look at your statements for similar quotes as the ones I use from my “pet bill” you’ll see how the companies get you and what I was explaining about them charging you interest on that $8.25 per month they are charging you.

If you have any questions about it fire away. Remember no two accounts are exactly the same, so if you don’t have a same as cash deal on a card, that part won’t apply to that particular card, but the way they calculate interest on most cc is the same.

November 17, 2015 | Category: balance

I did not read anything about refinancing

just taking a loan through the USDA, as if you were taking out one loan to pay off another. Sorry I misunderstood. If you take out the refi and pay it out according to terms, how long will it take to pay it off? Less than 10 years which is your current situation? If so, it may be worth it. If not, just keep what you have. I ask this because in your previous email you mentioned a lower payment, which usually means a longer pay out period.

The whole idea of Dave Ramsey’s plan is to get rid of all mechanisms of debt …. mortgages, credit cards, pay day loans, etc. That is the first step to stopping the cycle … NO NEW debt and cutting up any credit cards.

I am confused

Why are you taking another loan out on this property? Taking on more debt does not eliminate the debt, it just piles more on top, taking longer to get debt free.

November 6, 2015 | Category: loan

Mortgage calculator question

I’ve been looking at various calculations and was wondering if someone on the group had one that can show me what happens if I make a lump sum payment on the principal.
I plugged in what I currently owe on the mortgage which is $69,000 or thereabouts. If I don’t do anything but continue to pay it off currently, it’s done in 10 years (2023). If I can get the USDA loan on it, it will reduce the interest by $13,273.78 and reduce the payment down to $629.44.
After that, I get stuck and I’m not sure which calculator to use so I can figure out when I’d get paid off if I use the current cc payment money to add to the current $750.00. I’d also like a calculator that shows me how much faster I can pay it off if I make lump sum payments from time to time – for example, when I sell sheep if I put that into the mortgage payment.

Admitting that you need help is the first step!

You are ready now to pull your head out of the sand and take the next step. Starting a zero based budget is a learning process. It will take you a few months of working on your budget to get it flowing. December is almost here, so try to figure out all your expenses and income for December. Feel free to post it here on our board and we will help you.

January 17, 2015 | Category: zero

The good thing is that you’re starting to pay attention now!

As for your budget – we follow what’s called a zero-based budget. That means that when you subtract monthly expenses from your monthly incom, it comes out to zero. Let’s start with December. Decide, on paper and on purpose, BEFORE THE MONTH BEGINS, how you will spend your income for December. All you need is a sheet of paper and a pencil. At the top of the page, write down your income. Underneath that, write down all the things you need to spend money on(expenses).

Income – 3000

Mortgage – 900
Electric – 90
Gas – 50
Water – 30
Cable TV – 130
Cell phone – 60
Car note #1 – 450
Car note #2 – 200
Car insurance – 250
Student loan – 200
Credit card #1 – 300
Credit card #2 – 200
Credit card #3 – 100
Credit card #4 – 40

Total expenses – 3000

That’s just a quick and dirty budget, but you need to know where you stand. It’s a simple equation – income vs. expenses. If your expenses are more than your income, you have two choices.
1 – lower expenses(cut out certain things).
2 – increase income(2nd job, BETTER job, sell stuff)

It’s your choice which path you take. The BEST(and quickest) way to proceed is to do both. You may have to cancel cable TV, sell one of the cars, and work part time at the local mall for a while. But you won’t know what you need to do until you write it all down. If you feel comfortable posting your numbers, people here can give you suggestions. But usually once you see the numbers, you’ll KNOW what you need to do.

October 17, 2014 | Category: budget

We’ve all been there

What helped get me started was just to simply right out the monthly bills I had and how much income I had coming in. Then I prioritized the bills. What HAD to get paid, like mortgage, heat, water, etc….Based on that I was able to see what could I cut out or cut back on. I got creative with my meals and used stuff I already had in the pantry. Some of our meals look (and tasted) strange but it helped keep a little more cash going to where it needed to go.
For me, I found getting started was the hard part.

Hang in there.

September 15, 2014 | Category: bills