Well last night I finished the Total Money Makeover book. Really enjoyed the read and learned a lot from it. I have taken then steps and started and finished Baby Step 1. Started Baby Step 2 which is the Debt Snowball. But here is my problem. I do not have major debt, just trying to get rid of the little debt that I have. So I am having trouble grasp the fact of selling my truck off. I know that selling my truck for a lesser truck to get completely debt free is what he preaches. Has anyone else had the problem of letting go of their nice truck that has no problems, taken care of to a T, and will last another good 100k miles?
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Your doing great according to his overall program. Look at it like this- You don't have to do what Dave says unless you want to be like Dave. Now it's decision time...
tending the fire,
Bob G. -
I would just snowball all your little debt payments into the truck, once they're gone.
I haven't read the book, or went to his class, but from what I've seen, not all of his principles apply to every situation.Comment
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Good advice! I hadnt thought about that. It would take me a little longer but know I would be at better ease of mind with the truck situation and not have to worry about fixing clunkers.Originally posted by Texastaxi View Post
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Sounds like you are doing very well. I think selling your truck would be a bad idea. First, because the know the truck has been taken care of and don't expect any major expenses to keep it up and second, becuase it is your plant to keep if for a long time. You might not be lock step with Dave at the moment but you will be soon enough. Great job keeping debt down.Comment
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I've read the book, been through Financial Peace University. You can keep the truck and any of your other toys. It all depends on how quickly you want to be debt free. Just hang in there, one year from now you will be so much better off!Originally posted by btreybig View PostGood advice! I hadnt thought about that. It would take me a little longer but know I would be at better ease of mind with the truck situation and not have to worry about fixing clunkers.Comment
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Is your truck paid for???Comment
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I've realized that much of what he teaches doesn't really apply to me. That's not to say he's a quack, just that not everyone is in the same situation.Originally posted by Texastaxi View PostComment
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I have been in your exact situation. A few months ago the wife and I decided to become debt free. Like yourself we didnt have a lot of debt but we just simply wanted more cash at the end of each month. Therefore I sold my horse trailer to pay off a couple of small loans that totaled $3500. Next, I bought a cheap cash car to get me to work and back. The only thing I had left was my truck that was costing me around $350 per month. I recently sold that to a guy here on the GS for the payoff and now we are debt free.
Since making all of these changes we have saved around $800 per month including the cost of full coverage insurance.
It all really depends on you and what you want. Dave builds the tree and you trim it how you want. I can say that my wife and I are much happier when we look at our checking account.
Good luck on you journey.Comment
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I have been trying to do the Ramsey program ( trying to live debt free ) for the last couple years... I never read his book BUT it's something that just seems like makes the best financial sense IMHO. I would not sell the truck unless it is part of a large debt problem... I am almost debt free other than my mortgage ($2 K on a boat), both of which with The Lord's blessing I will pay of next year!!! Have not sold any of the toys, just put of buying new ones and paid them of... I can see the light at the end of the tunnel and know it's not a train!!! It's a great feeling when hard work pays of. Keep at it and you will be way better of once you get completely debt free!!!Comment
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No, still have about 3.5 more years to pay off. Bought new in 2011.Originally posted by saltwater View PostComment
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The thing that helped the wife and I the most was going to envelope system.Originally posted by carneyman87 View Post
We only have a car payment, which we are keeping, but sitting down and doing the zero balance budget was mind blowing. We wasted so much money just swiping the debit card whenever we wanted something.
We now have 6 envelopes and when the cash is gone it's gone.
We did create an account that we put budgeted monies in for things like tires, car repair, lease fees and other typical annual expenses.
This also helped because all of the sudden we didn't need to just come up with $1000 at the drop of a hat when it was time to get the car fixed or pay insurance for 6 months.
I will never do everything he preaches, but he has a lot of great ideas that are really just common sense.Last edited by Sparkles; 11-13-2013, 08:06 AM.Comment
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If you like your truck, you can keep your truck. Period.
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Don't forget to step back and look at the big picture. Why do you want to be debt free? Where do you want to be 3 years from now, or 5 years from now? When you are making decisions about refusing momentary pleasure for greater future gain, you can't take your eyes off of what is way down the road.
Your greatest wealth building tool is your income. Without a car payement, you achieve your goals much faster while keeping your life in a much more secure position.
You mentioned you are on baby step 2. So, if you decide to keep the truck and put off building your emergency fund (baby step 3), what happens six months from now when life happens and you are hit with an emergency? You will have no option but to go further into debt. Which puts you further behind on baby step 2.
Remember rule #1: Don't take advice from broke people.
Be weired. Most people would say keep the truck. But most people are broke. What do you want to be?Comment
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Ditto this. It doesn't matter what others think. Be true to your goals.Originally posted by Rishnik View PostComment
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