DVM gone riding
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Post by DVM gone riding on Jul 10, 2011 14:05:09 GMT -5
I was never DR target audience but reading his book was the kick in the pants I needed to really get on track. I had budgeted my way through 8 years of school and frequently (always) borrowed a lot less then they would have let me. Despite that I had over 80k in SL debt and four year latter am still well over 60K. Unfortanetely, I had already bought my house--more then I needed but I can "afford" it-- and a newish car--which is worth more then I owe and if I was good I would sell it and buy one free and clear but I won't.
Like craftysarah I just couldn't imagine turning 30 and having everything a mess so I have been trying to get it together for the last two years. I started the work IRA as soon as I was eligible thanks to training in school I knew to do that, and have been increasing the % since then. I started my Roth IRA because I thought I should and thanks to Phil added the taxable brokerage account. I still don't have as much in savings as people say I should but then I also don't have any CC debt and haven't since I turned 18 and started using a CC. In two years when the car is done and one of SL is paid off I should be doing pretty good!
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TheOtherMe
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Post by TheOtherMe on Jul 10, 2011 18:49:59 GMT -5
Theo, don't apologize for medical debt. That is the kryptonite for a LOT of folks. DS's surprise diagnosis of a disability, and therapy was a lot of the reason our finances got so off track, but we're fighting our way back. Thank you. When I told a friend I was suicidal over all the bill collectors calling, he said it's time to file bankruptcy. Bankruptcy judge said I took the correct route. I just hope I never am in that position again. It is so hard to replace a lifetime of savings. I also had to retire over the illness, so will never make the big bucks again.
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RoadToRiches
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Post by RoadToRiches on Jul 11, 2011 11:35:46 GMT -5
Oh my...
Well, my stuff is not in order YET. I am still paying the piper..BUT, I have learned a lot and I have a solid plan. Next year, my financial house will be in order! I can't wait!
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thyme4change
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Post by thyme4change on Jul 11, 2011 11:54:14 GMT -5
Right after we got married. I was just shy of 29 years old. My husband had just turned 25. We pinky swore we would take care of the debt.
He had just graduated college and gotten a new job, so we finally had "enough" money coming in to cover everything and pay extra on the debt.
I was really releived when our house got robbed because the payout for all the stuff that was taken covered our mortgage. We didn't replace a bunch of it. I knew we were in trouble because without that check, I'm not sure how we would have paid it. I knew we were in big trouble and we couldn't live that way for very long.
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Wisconsin Beth
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Post by Wisconsin Beth on Jul 11, 2011 12:16:20 GMT -5
I was in my mid 20s when I made a couple of tentative steps towards improving my financial situation. I think I was around 28 when I decided enough was enough and got serious about getting my life in order. Around 30 I got a promotion that included a $6K a year raise and by 34 I'd cleared all my debt (probably around $17+K if we include pets and vehicle.)
I think DH has always had his financial house is some sort of order. At least I don't think he's ever carried debt beyond house and car.
We're doing slightly less than ok right now. The house isn't underwater, we've got in the vicinity of $250K in retirement accounts. We haven't checked since the last time I updated networthiq as we know the market's not been especially fun to watch. We pay off the CC every month and don't have SLs. I started putting an update in my siggy so I can see and be reminded that there's progress ongoing.
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swamp
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Post by swamp on Jul 11, 2011 12:18:12 GMT -5
::Right after we got married. I was just shy of 29 years old. My husband had just turned 25:: Thyme's a cougar?!
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msgumby
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Post by msgumby on Jul 11, 2011 12:18:36 GMT -5
I guess for me things happened a bit younger than most. When I was little, my parents gave me a small allowance, but it was never enough to really spend much on. It would normally just cover the gifts I used to buy for friend's birthdays or whatever. And if I wanted new clothes or go to the movies I would ask my parents for money (they wouldn't always say yes, but the money came from them). When I was 14, my parents started giving me a much larger allowance, and I was to cover ALL my expenses out of that. My clothes, movies, dinners with friends, etc... would all come out of that account. When it was MY money I was spending instead of THEIR money, for whatever reason it became a lot harder for me to spend the money.
I didn't really learn too much about finances until my late 20s when I was finally done with graduate school and had a real job (with benefits and enough money to actually need to learn how to manage it). But I had always had an emergancy fund (without actually knowing that was what it was), never had any debt (apart from a small amount of money owed to my dad interest free to help pay my tuition), and never really spent much money. My husband and I met our first week in college and he was exactly the same way as me. We are both intrinsically savers, and have had to learn how to spend money and get more comfortable with "good" debt in order to build wealth. I didn't know you could carry a balance on a credit card until my mid 20s, so that probably helped as well.
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Deleted
Joined: May 16, 2024 12:50:41 GMT -5
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Post by Deleted on Jul 11, 2011 13:35:11 GMT -5
We rushed into things a bit, marriage, kids, family house. They all happened so quickly that our finances never really settled. We never had savings and cash flowed everything, paying credit cards off within a few months. Then the realization hit that we had racked up 20K in CC debt and we were house poor w/ a small child and not much disposable income to pay it off. It was a hard realization that though we had retirement savings and a lot of home equity our finances were in pretty bad shape. I was about 28 at the time. We would pay a large amount to the CC each month, but then add to them by the end of the month, so no progress made.
It took us a year to pay the CC's off. Every extra dime went to them. We sold some stuff, got a bonus, tax refund, Christmas money, did some extra jobs. Then it was another year of building up savings so we didn't get into the same position again. YM really helped me understand that we needed savings. I also learned that I needed a buffer built into my budget for things that come up.
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thyme4change
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Post by thyme4change on Jul 11, 2011 13:36:03 GMT -5
Get 'em young, train them right.
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swamp
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Don't be a fool. Call me!
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Post by swamp on Jul 11, 2011 13:38:44 GMT -5
Get 'em young, train them right.
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thyme4change
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Post by thyme4change on Jul 11, 2011 13:40:10 GMT -5
Swamp - I feel very close to you recently.
But, be careful - I have "anger issues."
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daisylu
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Post by daisylu on Jul 11, 2011 13:43:39 GMT -5
Get 'em young, train them right.
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8 Bit WWBG
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Post by 8 Bit WWBG on Jul 11, 2011 13:47:57 GMT -5
For us, it was when DF finally accepted that all that un-fun stuff I'd been saying about the consequences of overspending catching up with us one day were actually upon us, and if we didn't right the wrongs, we would be playing catch up forever and watching everyone else get what we wanted.
when did you start? I suppose about 2.5 years ago.
Why did you start? For a better life. To work better as a team. To stop paying for junk we've long since given away, and dinners that were pooped out before the charge was even run.
What prompt you to start? DF believes I will be a happier person when this nonsense from our past is fixed.
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muttleynfelix
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Post by muttleynfelix on Jul 11, 2011 14:26:40 GMT -5
We got our financial house in order after we moved into our new house 4.5 years ago. I thought we should be able to live on my income alone and was shocked when it didn't happen and we also racked up so debt during the building process and didn't work as a team. Unfortunately the last couple months we have back slid considerably. We have CC debt again. We refinanced the house to take on a small car payment (difference in new PITI and old PITI) and up graded to smartphones... but I think some home improvement projects are what did us in. At least when I look at my spreadsheets that seems to be where the issues are.
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swamp
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Don't be a fool. Call me!
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Post by swamp on Jul 11, 2011 14:34:40 GMT -5
Swamp - I feel very close to you recently. But, be careful - I have "anger issues." Me too. We can make a video of the chick fight and make lots of money.
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Gardening Grandma
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Post by Gardening Grandma on Jul 11, 2011 14:39:41 GMT -5
It came in stages for me. Stage 1: First marriage: financial decisions were based on "what is the monthly payment?" Stage 2: Divorce: I owe how much!!! Yikes! Stage 3: Struggle and live from one paycheck to the next hoping the car would not break down, or someone would need emergency dental work or..... Stage 4: Slowly getting debt paid off, slowly building a very small EF, and enrolled in 401K plan Stage 5: (After many years in stage 4) preparing for retirement. Learning how to create a NW statement, a budget (yes, I started budgeting in my 50's). Learning about mutual fund choices. Stage 6: Still learning, but now carefully budgeting, planning for future expenses....
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