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Old 11-09-2010, 08:50 PM
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dcrabb dcrabb is offline
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Join Date: Jun 2010
Location: colorado/eagle usa
Posts: 5
Default Re: FOUR Levels to Financial Freedom

Good CJ. I have to wait on my loan modification,Health benefit payments to kick in (Jan.2011) before I get to ground ZERO. The wait is killing me.I have experience in Bankruptcy in 1995,I did it.Had a failed first marriage.
I am still not sure when the magic moment of plus income in my budget appears. I check constantly my checking Balance and my Budget.
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Old 11-10-2010, 02:06 PM
cjscully cjscully is offline
Join Date: Oct 2010
Location: California USA
Posts: 90
Default Re: FOUR Levels to Financial Freedom

Got it. Once you've got a little money in your budget to put toward your debt, I can give you some more concrete advice as to the best approach at that time. It all depends on how much you're able to work into your budget.

You might also want to check this thread for other ideas regarding saving more or earning more http://www.thefinanceforums.com/how-...earn-4376.html
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Old 12-13-2010, 10:08 AM
TakeAction4PeaceOfMind TakeAction4PeaceOfMind is offline
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Join Date: Dec 2010
Location: MS/Rankin USA
Posts: 2
Default Re: FOUR Levels to Financial Freedom

Hi Dave,

Thanks for this thread! I found this site while googling financial freedom. So, we are on level 1. Some advice would be greatly appreciated. We have just become aware of our misuse of money and how badly it's affecting us now but in the future if things do not change. We are just starting our journey and have A LOT to learn. Let me add that we are a family of 6 living on one income. I will give you a list of bills and net income:

Net income is $2400 per month

Groceries: $600.00
Rent: $650.00
Gas: $400.00
All Utilities: $300.00
Car note: $140.00
Insurance: $120.00
Personal loan: $100.00
Phone/internet $200.00
Clothes/dining out/other: $130.00
Kids' lunches: $24.00

Now, I know some things here could be cut out or lessened but I am not sure where to start. The car and personal loans are close to being paid off. Do you have any advice on how we should make our first budget...especially after the 2 loans are paid off? We want to build an emergency fund at 6 months worth of living expenses because we are a large family living on one income. Thanks!

Last edited by TakeAction4PeaceOfMind; 12-13-2010 at 10:13 AM.
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Old 12-13-2010, 03:08 PM
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DavidBibby DavidBibby is offline
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Join Date: Jun 2010
Location: Palm Bay, FL
Posts: 415
Default Re: FOUR Levels to Financial Freedom

Based on what you've listed here.. you're spending more than you make each month.

If the personal loans and the car note are the only debts you have.. you'll have about $240 more in your budget each month. Still even with that you have little room for savings or giving.

Check out my articles on budgeting on Debt Free Marriage that should get you started.

Feeding a family of 6 is hard on that income. I would focus on paying off the debts first... then putting the $240 you USED to spend on debt payments on 3-6 months living expenses. Following that you'd want to start saving for the down payment on a house.

This is just a top level plan.. to be fine tuned later.
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Old 12-13-2010, 08:43 PM
TakeAction4PeaceOfMind TakeAction4PeaceOfMind is offline
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Join Date: Dec 2010
Location: MS/Rankin USA
Posts: 2
Default Re: FOUR Levels to Financial Freedom

Thanks for your Response David! Yes, it is hard to feed a family of six on our income(and to boot, our kids are all boys), yet I have been trying to cut down on the grocery bill even more so we can stay afloat. It's just not going any lower than the $105 I spent this week. That was hard to do. Long story but our rent/utilities got behind and we're struggling. We don't know how to get those caught up. Sorry, I failed to mention the main problem there in my OP. This has changed things so much for us. We cannot afford to move, we can't get rid of the only running vehicle we have(to get the loan off of us), yet I don't see how we can get caught up other than income tax. I don't know how to prioritise the bills. We can't afford to make all the payments but can't afford the car to be taken. We are two rent payments behind, two utilities behind, one car note and one insurance behind. What's the best answer until we can pay off the two debts? In all honesty, we have not shopped for any christmas gifts for the kids at all. I don't see that we have a way to. Most important right now is shelter, food and electricity at this point.

Thank you for the link. I will check it out.
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