Debt Dumpers - 2018

[StacyStrong]

I think you might be the exception here. At least walking around disney, you'll see most people with iphones or the new lg. With all the budgets listed in this thread, the phone bill is missing from most of them. Also, many people don't know that the $1000 cost of an iphone x (or whatever new handset you get) is built into your monthly payment.

It's only built into your payment if you don't pay for the phone outright.

Regardless, absolutely not. I keep in contact with my family and friends on my phone. I bank on my phone. I work on my phone. I read the news on my phone.

If having a new phone is a luxury, it's a luxury I'm willing to pay for. Besides $1000 is not even half a percentage point of my student loans so I'm pretty sure it'll make no difference whatsoever.

I keep my phone until it's no longer works well. Then I replace it.

And many people consider phone bills part of their monthly obligations (for me, it's a utility as I don't have a home line) and it absolutely is built into budgets.

Telling people to get rid of one particular item is very very unhelpful imo.

Especially considering you won't get anywhere near $800 for a used device.

 

[StacyStrong]

I actually find comments like that really annoying.

 

[DLgal]

We don't have land lines. Our cell phones aren't a luxury, they are a necessity. We pay $150/month for three lines with unlimited data. Breaks down to $50/month. Its one of our utility bills. The kid has my old Galaxy S4. Husband and I have 2 year old Galaxy S7s that we bought outright, rather than add it to our monthly bill. We will use the phones until they literally die, which will probably be 2 more years. They were $750 new, so divide by 4 years (48 months) comes out to $15/month. Which is a small price to pay for the amount of stuff they are used for every day.

Getting rid of cell phones would never happen in our house. Even people who are poor and on government assistance qualify for low cost or free cell phones. They are considered a necessity these days.

People who buy the newest cell phone every year are either stupid, rich, or both.

 

[Tygerlilly]

We have prepaid Straight talk phones and service. $110(ish) a month for unlimited everything. Phones were about $100 each on black Friday. I use my phone for everything. It has a built in hot spot that I'll use for school and stuff.


My take on this thread isn't necessarily "saving for Disney" specific. This thread is life long, debt dumping, overall money management tips/accountability/advice/ranting. Amd honestly, planning a trip to anywhere, my $800 phone that I'd use to take pics with, wouldn't exactly be the thing that makes or breaks the trip. If I couldn't afford the money my phone costs portion of the trip, I wait until I have that amount saved up and then go.

 

[Tygerlilly]

On another note, I had a bug last weekend and missed a day of work. Instead of having to use my PTO, they called and asked if I wanted to work the other shift two days. So now, instead of being 11 hours short and using my paid time off, I'm actually 10 hours ahead and got to keep my time! And since I was there today, I asked about next week and got 2 more days scheduled. It should actually get me another super good check like the last one, minus about $200 (I didn't get ot this week, just 40, which is still about 8 hours more than my scheduled amount). With that extra, I might be able to pay off one of our loans 4 months early!

 

[jen7233]

I haven’t posted in a while due to moving. It was a very expensive move to a higher cost of living area. Move expenses included up front first and last month’s rent which was outrageous but not unusual for the area near DC. Some things are much higher in my opinion than our last location.

There were some other unexpecteds such as loss to some furniture due to this house configuration here some furniture had to be disposed of with the move, and our laptop decided to die. Overall, a very very expensive few months. Now I’m going to look ahead as things normalize after back to school shopping and the final things I still need to get done like get curtains for a few rooms, need another dresser due to losing walk in closets we had before for years, now not sure where to put the clothes I have and have gotten rid of some but still have much lined up along the wall that need a space.

New budget will be
Rent
Gas
Water
Electricity
Trash
Cell phones
Internet
Direct now
Netflix
Car and rental insurance
Credit cards (forgot to mention in original post)
ESAs for college
Savings account

Added comment about credit: I am paying the credit cards weekly, one will not allow that though. Most of the expenses go on here, grocery shopping, gas, stores, activities, etc. No car payment, but my car has been having some minor issues, so I’ll hang on as long as I can. I quit the nickel and dime budgeting a few months ago and have been much happier. To each his own, though because I know for some it may feel better to budget every possible category such as down to dry cleaning and haircuts. I’ve been happier though with just taking the paycheck, subtracting the bills and savings, and then using the extra as necessary and if not all used, then left the cushion in checking. I feel there is still a requirement for some discipline even doing this, but it’s just a different method. That cushion basically turned into the “emergency fund” which helped immensely for upfront moving costs and costs during move. The only budgeting thing I’m looking at the moment is changing out to T-Mobile possibly if I can be convinced on good reception.

 

[Dentam]

I haven't posted an update in awhile. Still chugging along. Taught my first workshop at work but didn't get paid for it in the pay period I should have. Asked about it and was told the person responsible forgot to file the paperwork. So, it will be in my paycheck next week.

My WDW trip is now 5 weeks away! Everything has been paid for months now, although I just made the decision today to change my flight to arrive the night before since I have that day off anyway and the flight was cheaper. Luckily, Southwest doesn't charge a change fee and gives you the difference as a credit towards a future flight! This way I will also be able to make full use of my 6 day park tickets I purchased, instead of having only a few hours in the MK on my first day. I did have to book another hotel night, but I got a night at All Star Movies for $107 with a room only promotion they're having. I've never stayed there before and it will only be for one night until I move over to the Boardwalk Villas for the remainder of my stay. I rented the points last October and the price ended up being less than what it would cost to stay at most moderates! I have $100 in Disney gift cards that I received for Christmas along with $100 visa card from setting up my internet service at my new place. Those will go toward food on my trip. I'm planning to eat all quick service meals other than breakfast at Boma on my final day!

As for a phone, I just got my very first smart phone in January for less than $200. My monthly bill averages $40. I can't imagine spending $800 on a phone, but understand that many people do use them as more than just a phone. I'm looking forward to using mine to book additional fp's during my trip, check wait times, etc. So high tech!

 

[ruadisneyfan2]

I'm confused -- if you have a 0% loan, why would you want to pay it off early? I would want to pay it off as slowly as possible, leaving the money in a savings account for as long as possible. Savings account interest rates are not super high, but Ally is around 1.7, which is more than 0.

Also Discover has a savings account that is earning 1.75% too. And offering a $200 sign on bonus to boot. Mine should be posting any day now and once I pull that money out I can send it to dh's new Discover account for another $200.
I love bank bonuses.

 

[ruadisneyfan2]

can someone please come slap me occasionally to keep me on track?!!!! We seem to do well then fall off the wagon- and when we fall it's like a "F*** it" mentality. Why not spend more? Why not buy that, eat that, do that! We have a lot going on and coming up and we really need to get on track and stay there!

Read Mr. Money Mustache. After reading how he and his wife saved & invested 66% of their paychecks and could retire by age 30, it has certainly slowed my "I want that!" feelings. I even cancelled our Norwegian Fjords cruise for next summer so I could up my retirement acct contributions. It's a great feeling.
He was saying if you could sock away 75% of your paychecks (obviously living frugally) you would only have to work for 7 years to be financially independent. I don't know that we can live that simply but I do like watching our savings grow.
http://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/

I had a severe case of the F-Its in my 30s and early 40s. I chalk it up to getting older that I now feel more of a need for financial security than I felt when I was younger. It's a far stronger need than any material stuff or vacations.

 

[Dentam]

I guess if you lived in an area with a really low cost of living, you could afford to sock away 75% of your paychecks. It all depends on if you are in a high paying field or not also. For me, I'm in a lower paying field and living in a city with a high cost of living so it would never be feasible for me. My rent alone takes up over half of my pay. It's all about trade offs I guess. I love my job and couldn't have one like it anywhere else. I also tend to live in the moment I guess rather than putting everything that I want to do off until retirement age. Guess I have the mentality that tomorrow is never guaranteed. Guess that's also why I'm on this debt dumping thread.

 

[jen7233]

Has anyone ever stayed at the Hilton Head Disney Resorts? Maybe I'm not doing something right but I'm trying to book for a year out next July or August, and even two years out for two summers from now, and keep coming up with "room unavailable". Are these DVC or do they really book this far out for summer months?

 

[ruadisneyfan2]

I guess if you lived in an area with a really low cost of living, you could afford to sock away 75% of your paychecks. It all depends on if you are in a high paying field or not also. For me, I'm in a lower paying field and living in a city with a high cost of living so it would never be feasible for me. My rent alone takes up over half of my pay. It's all about trade offs I guess. I love my job and couldn't have one like it anywhere else. I also tend to live in the moment I guess rather than putting everything that I want to do off until retirement age. Guess I have the mentality that tomorrow is never guaranteed. Guess that's also why I'm on this debt dumping thread.

I hear you. We're in the same boat with high COL and too many things that would be hard to change at this stage of my life. Of course he has an answer to that too.
http://www.mrmoneymustache.com/2011/10/07/how-to-tell-if-youre-a-complainypants/
Not directed at you personally but I am guilty too. I can't say every choice I've made in life so far is so that I'm living a frugal lifestyle. Yes, we're free to make choice/changes but there's many things I'm not willing to change. Other things are easy changes and that's what I'm taking from it.

I don't read his blog to follow what he does to a T. More that it helps lead me away from such a consumer-driven lifestyle. I keep going back and forth with whether or not to buy a new car (simply because mine in 12 yrs old) and was all set to buy a new Acura RDX once I saved up a down payment. Then I started reading his blogs and not only do I see this as such wasteful spending (new car depreciation, etc.) but even when I look at used cars, the ones I find have similar mileage to mine and at least I know where mine has been and know it's been well cared for, garage-kept, etc.

So he's not setting goals for me but just keeps my head straight regarding overspending.

 

[ruadisneyfan2]

Has anyone ever stayed at the Hilton Head Disney Resorts? Maybe I'm not doing something right but I'm trying to book for a year out next July or August, and even two years out for two summers from now, and keep coming up with "room unavailable". Are these DVC or do they really book this far out for summer months?

I've never searched for HH but have searched often for Vero Beach and there is a lot of availability far in advance. Last spring I could have booked Labor Day weekend there but hesitated and it was gone by the time I was ready to commit.

 

[Dentam]

I don't read his blog to follow what he does to a T. More that it helps lead me away from such a consumer-driven lifestyle. I keep going back and forth with whether or not to buy a new car (simply because mine in 12 yrs old) and was all set to buy a new Acura RDX once I saved up a down payment. Then I started reading his blogs and not only do I see this as such wasteful spending (new car depreciation, etc.) but even when I look at used cars, the ones I find have similar mileage to mine and at least I know where mine has been and know it's been well cared for, garage-kept, etc.

Yeah, I'm pretty darn frugal - cut my own hair, my car is 17 years old, etc. I would have to make changes that wouldn't be worth it to me - live with roommates, not have a dog, never go on vacations, etc. But it's good to find a source of info to inspire you to not spend wastefully if you're prone to it.

 

[DLgal]

Read Mr. Money Mustache. After reading how he and his wife saved & invested 66% of their paychecks and could retire by age 30, it has certainly slowed my "I want that!" feelings. I even cancelled our Norwegian Fjords cruise for next summer so I could up my retirement acct contributions. It's a great feeling.
He was saying if you could sock away 75% of your paychecks (obviously living frugally) you would only have to work for 7 years to be financially independent. I don't know that we can live that simply but I do like watching our savings grow.
http://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/

I had a severe case of the F-Its in my 30s and early 40s. I chalk it up to getting older that I feel more of a need for financial security than I felt when I was younger. It's a far stronger need than any material stuff or vacations.

This guy's advice probably doesn't apply to 90% of real life people. Unless you are making SERIOUS bank, like $300k plus per year, saving 75% of income isn't possible. My gosh. We make about $160k and our RENT alone is 30% of our take home monthly pay. And no, we don't get to choose where we live, the military does. We have another $1200 in monthly obligations (nothing we can cut out: utilities, insurance, 529 and IRA contributions, etc) before we even get to everyday spending for food, gas, etc.

Besides, who wants to retire at 30? What does this guy do all day? Oh, right, he has a blog and affiliated content, so he is still working...

 

[fifthdimensiondweller]

I've been reading these posts for a month about paying down debt and the struggles, and just curious, does anyone ever consider selling their $800 phone and $100+ a month service fees? That's a pretty easy way to get a huge chunk of money back.

I think you might be the exception here. At least walking around disney, you'll see most people with iphones or the new lg. With all the budgets listed in this thread, the phone bill is missing from most of them. Also, many people don't know that the $1000 cost of an iphone x (or whatever new handset you get) is built into your monthly payment.

What you see "walking around Disney" and what you're going to see here in a group specifically targeted to living frugally and dumping debt, acquiring savings, or meeting another financial goal is going to be way different. Disney's a big place. My husband and I don't use our phones for much more than texting and browsing the internet, and don't need them for work, so we both have low end smartphones that cost $179 each, paid for outright, will use them till they break. A lot of people rely on their phones for work or school though, and if that were the case for us we might have different phones.

 

[StacyStrong]

This guy's advice probably doesn't apply to 90% of real life people. Unless you are making SERIOUS bank, like $300k plus per year, saving 75% of income isn't possible. My gosh. We make about $160k and our RENT alone is 30% of our take home monthly pay. And no, we don't get to choose where we live, the military does. We have another $1200 in monthly obligations (nothing we can cut out: utilities, insurance, 529 and IRA contributions, etc) before we even get to everyday spending for food, gas, etc.

Besides, who wants to retire at 30? What does this guy do all day? Oh, right, he has a blog and affiliated content, so he is still working...

To be fair, IRA contributions, etc aren't expenditures.. They are part of that 75% savings

 

[jen7233]

Besides, who wants to retire at 30? What does this guy do all day? Oh, right, he has a blog and affiliated content, so he is still working...

That was my thought on this blog, but I've read it long before mentioned on here. I thought, wait a minute, this guy isn't retired, he's making cash off the blog and content, articles, etc. But, yes, I'll say it's kind of fun reading for a minute. I like reading another one early-retirement dot org.

I feel like we have a very high cost of living especially rent and what you get for it. I guess what you get is the closer commute into the city. It's in the Kiplinger top 10 most expensive cities to live in, and many other lists. While we don't live IN the city, still the suburbs see the impact. However, to me it's outrageous. I also think daycare, camps, and activities for kids here is insanely expensive.

I've never searched for HH but have searched often for Vero Beach and there is a lot of availability far in advance. Last spring I could have booked Labor Day weekend there but hesitated and it was gone by the time I was ready to commit.

I guess maybe I should try and call. I have tried all different dates within my timeframe next summer 2019 or in 2020 and no luck. I'm wondering how it could be sold out already? Or maybe it's not available to book yet? I'm trying to plan a 4 day trip on this bucket list place I've wanted to go to for a long time.

 

[ruadisneyfan2]

This guy's advice probably doesn't apply to 90% of real life people. Unless you are making SERIOUS bank, like $300k plus per year, saving 75% of income isn't possible. My gosh. We make about $160k and our RENT alone is 30% of our take home monthly pay. And no, we don't get to choose where we live, the military does. We have another $1200 in monthly obligations (nothing we can cut out: utilities, insurance, 529 and IRA contributions, etc) before we even get to everyday spending for food, gas, etc.

Besides, who wants to retire at 30? What does this guy do all day? Oh, right, he has a blog and affiliated content, so he is still working...

Of course, that's why we're all still working.
Yes he works, but the work he does is what he wants to do and when he feels like it. Not dragging himself home after an exhausting day, with the hours set by someone else. He was a software/computer engineer and graduated when the internet first exploded all over the world so the timing of his job helped with $15-20k annual raises. He didn't save 75%, he saved 66%, not that either would be attainable for me. Another thing that made this easier for him, compared to most of us here, is that he delayed parenthood until after becoming FI. Even blogging in retirement is earning him over $100k, just by leisurely writing an article each day about money.

I admit, I can't follow all of his advice but I take bits and pieces. Kind of the same way I like DR's advice but I couldn't cut cable, stop retirement contributions, and sell dh's truck simply to eliminate his loan. It's just too extreme. Still, I took his snowball philosophy and applied it and now debt-free except our mortgage. The same with MMM. When he says keeping the AC at 72 is like living in a meat locker, I knew we wouldn't see eye to eye. (Wait til his wife turns 50. That minimal AC crap will come to a screeching halt.)

Still, I see a lot of overspending by people I know who then whine that they can't save any money. They don't have the first thing paid off before undertaking a 2nd thing to pay off. It's times like this I completely see his point. They have way more house than they need, 2 new cars, keep buying new stuff, replacing stuff before it even gets old, buy lunch every day, $150 sneakers, etc and they're broke and can't figure out why. (And now borrowing from her retirement account)

A lot of what he talks about is just getting into the mindset of not being so quick to spend money so easily and to align our choices in life with being able to save and build our net worth. For most of us not in the military, where we live, where we work and how we get around are choices we made and can still choose to change them. Some things we can't change. Any time we have more than we need, he feels we're wasting money. I get that but I'm finding a happy medium. I'm way beyond 30. Beyond 50. I'd be happy to make some smarter financial choices than the ones I made in my 20s and 30s that led me to join this thread in my 40s.
Even if I can't retire early, I'd like to feel financially secure asap and through retirement.

I've also been reading The Millionaire Next Door (book from Amazon) and these blogs:
https://www.getrichslowly.org/
http://www.budgetsaresexy.com/

 

[4kids4karen]

We don't have land lines. Our cell phones aren't a luxury, they are a necessity. We pay $150/month for three lines with unlimited data. Breaks down to $50/month. Its one of our utility bills. The kid has my old Galaxy S4. Husband and I have 2 year old Galaxy S7s that we bought outright, rather than add it to our monthly bill. We will use the phones until they literally die, which will probably be 2 more years. They were $750 new, so divide by 4 years (48 months) comes out to $15/month. Which is a small price to pay for the amount of stuff they are used for every day.

Getting rid of cell phones would never happen in our house. Even people who are poor and on government assistance qualify for low cost or free cell phones. They are considered a necessity these days.

People who buy the newest cell phone every year are either stupid, rich, or both.

While I would never get rid of our six cell phones (also no land line), they are not a necessity. I think about this every month when paying our bill. People can and do live without cell phones. Even at that, every single person in the house doesn't need his or her own personal phones. A cell phone (and multiple in the family) does not meet the definition of a necessity. I do have friends who absolutely refuse to give their kid a phone. Instead they call their parent when they arrive at a location and before departing, using their friends phone or friends parents phone, etc. Just like when I was in high school and cell phones were very rare (I graduated in 1992), I had a driver's license but had to call my parents when I got to my destination and before leaving.