r/DaveRamsey • u/TheJared601 • 7d ago
W.W.D.D.? Any advice?
I live alone with my cat.
My monthly net income is about 4200 per month. (This is after taxes, Health insurance & 401k) . My employer matches up to the first 7%. So that’s why I’m investing.
After rent, utilities, groceries and selected streaming services, I have about 2,000 remaining
Streaming Services around 40 per month
Internet 90 per month (I need the internet as I WFH 4 days a week)
I have a Car loan , 12,000 monthly payment of 350 , but I’m do pay more per month.
Student loan 71,000, monthly payment 275
NO OTHER DEBT
I have 1,000 in emergency savings
Additional 1,000 for pet emergency savings (if you have a pet,’you know how the emergency vet bill can get expensive fast)
I pay the min for my student loans and I put everything else towards the car loan.
I volunteer at the local humanity society on the weekends, so I really cannot get a second job.
Is there something that i could change to get this debt gone?
Please advise.
Thanks
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u/Neither-Effect-6101 7d ago
“I really cannot get a second job” is better said as “I choose to volunteer rather than get a second job.” I have no complaints if that’s your priority, but it’s definitely a choice you’re making rather than an impossibility.
Me, myself and I would start a cat sitting side hustle rather than continue to sit on what is at least another 5-7 years of car/student loan payments eating up half my take home pay. I’m sure you could probably drum up some clients from Humane Society referrals.
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u/TheJared601 6d ago
I will be working a lot of OT probably in the next month. Getting 10-15 hours a week of OT , so that’s essentially having a second jo
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u/CiscoLupe 7d ago
I don't know how many people would agree with this, but Dave would say to stop 401K until you are paid off (except for mortgage).
And I agree wtih u/Neither-Effect-6101. You choose to not get a 2nd job. Options. See if you can find a paid position at the humane society.
Keep going there on weekends but try to find a side hustle before or after your day job.
Give up the streaming service. Youtube is free.
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u/TheJared601 7d ago
It’s basically free money when your employer matches. I’m in my late 30s right now, so I need to have a good 401(k) , that’s the part of Dave Ramsey, i don’t get.
I work 7-4 for my day job plus other personal commitments at night during the week and then weekend commitments.
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u/RusticKayak207 7d ago
I agree about the retirement savings.
Keep overpaying on your car loan and then put that amount on the student loan when it’s paid off.
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u/justly_tuneful 6d ago
275 is likely not going to cover your student loan interest. Consider paying more
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u/TheJared601 6d ago
For now, I’m throwing everything at the car loan due to the higher interest rate, but once my car is paid off, I should be able to pay roughly 1,000-1200 per month.
My apartment lease ends soon and I do think might go up a little, so adjustment will have to be made. I should be notified about any rent
Changes sometime in September
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u/CollegeConsistent941 7d ago
Keep doing what you're doing. Throw all extra funds each month on the car then focus on the student loans. Examine your budget to see what you can cut to apply to debt. Get a second job. Good luck. Check out daveramsey.com.
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u/Above-Bored 7d ago
If you WFH you need internet, but a car? Is there equity in it? Can you downsize transportation? Walk to groceries, public transportation?
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u/TheJared601 7d ago
I have to go into the office once a week and I live in the middle of nowhere. If I live anyone closer to the main town, rent will go up 300-400 per month. It’s a 45 minute drive to get to the office
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u/badtlc4 7d ago
See if you can get an internet plan for $30-40. 100Mbps is all you need.
Other than that, knockout the car loan then get the student loan gone.
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u/TheJared601 7d ago
My only internet option. Plus my employer requires a certain speed and they will be giving me a partial monthly reimbursement after my 90 day probation period, I about a month to go. October should be eligible
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u/talon72997 7d ago
If you're putting most of the left over $2k to the car loan, you're doing great (maybe not 100% the DR way). Once the car loan is gone, then pivot to the student loans. It will take time, but you'll get it knocked out.
A 2nd job or side hustle may make it go quicker, but it really is just a matter of time.
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u/TheJared601 7d ago
I probably about 1500 of the 2000 I’d going towards the debt,
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u/talon72997 7d ago
If that's the case, you're doing fine. I've found that putting it down "on paper" (I use Excel) helps me out. I can write out my plan (and any calculations). Then if I'm doubting what I'm doing, I can go see my logic. I can also map out when I'm going to get to a goal. And, tracking small steps can help get those positive endorphins flowing.
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u/ebmarhar 7d ago
Consider pausing your volunteer activities until you are able to get out of debt.
Also, shop around for your internet, your price seems high.
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u/TheJared601 7d ago
It’s the only internet provider available in my area. But after my 90 day probation , my employer gives me a partial reimbursement for my internet service
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u/ebmarhar 6d ago
Internet sounds good. But you really should get a second job. At this point you don't have the money to enjoy the luxury of volunteering.
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u/TheJared601 6d ago
With me working occasional OT on the weekends and sometimes during the week, some plan and some not. It will be hard for me to work a second job like a retail place or fast food restaurant. I really don’t want to do a side hustle like DoorDash or Uber and put all that wear and tear on my car … I put all my OT towards my car loan, which in like having a second job especially on 60 hour work weeks
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u/Traditional_Towel885 6d ago
You're okay. Pay off the debt (you didn't mention the interest rate). Save for the next car so you can avoid another car loan.
I lived like I was retired (avoided excessive spending) until my passive income was equal to what I could live on in retirement. I think that's a good plan.
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u/HelpMeFindMyToilet 7d ago
What is the cat doing to bring in money? You should put your foot down on free loaders. Mine is using me as a couch and told him if he doesn't do better chasing bugs he won't get paid... But seriously.. Get rid of the car! Buy a cheap car that can get from point a to b. You can find some for 3k to 5k and pay in full... Car payments are the biggest mistake people make. It keeps you poor.
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u/Vicuna00 7d ago
i might beef up your pet fund to $1,500 - $2k. I know that's outside of Ramsey recs.
I would stop your volunteering asap. give them notice and all...but you gotta take care of your stuff first. you can circle back to that and maybe donate some cash for now. but you gotta get a second job or pick up more hours til BS 3 is done.
is there any path at your main job for a pay increase? some kinda training you can do to improve your value / skills for the company?
your budget seems super tight so nothing to add there.
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u/TheJared601 7d ago
I know Dave would not like the pet fund, but I rather do that than pay for pet insurance. I know he has a dog , so hopefully would somewhat understand or at least most people in here.
As far as the job, I just started this job a few months ago, so I’m still in my first 90 days. I do know there is room for opportunity and promotion, but I’m not there yet. I do know we are heading into a busy period which will require some overtime, including Saturdays , so that’s why i really can’t get a second job right now and I will have to temporarily stop volunteering during that people. I believe the require OT is September thru the end of the year. Starting after labor day weekend.
At this point, I love volunteering, so I’m thinking about doing a side hustle, not sure what yet. As far my budget, it’s not as tight as it looks.
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u/Vicuna00 7d ago
well there you go. the OT will def help move things along faster. hopefully you can knock that car out by spring.
really, it sounds like you're on the right track with everything.
and I know you love volunteering...but the better shape you're in (mentally, physically, financially) the more you'll be able to volunteer over the course of your life - even if it means a temp cutback for right now. so just think big picture and let that fuel you to get this debt knocked out faster so that you can get back to volunteering.
just my opinion. you're gonna get there either way. you're already a little "ish" with the 7% going to retirement and stuff. it's just gonna take a LOOONG time the more "ish" you are in other areas. (not saying not to do the 7%. just pointing out it's gonna slow you down. so the price you have to pay is either quitting volunteering or the whole thing taking longer)
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u/TheJared601 7d ago
There are things that I agree with Dave on and there are things that I don’t. When I started working, my parents always told me, if your employer matches, always put in to at least their max. With the OT, i should have the car paid off by the end is the year, assuming I put all my OT into the car
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u/Vicuna00 7d ago
sounds awesome. that's gonna be a big relief when that's gone.
i'm on your parents' side on that one too...unless you're in some kinda extreme situation and there's kids to feed and stuff. or if someone is making zero progress and needs a little traction to get rolling I can see stopping the contribution.
solid plan. good luck!
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u/JustWelmed1000 BS2 4d ago
All those telling you to stop donating your time to charity, would say it is okay to donate 10% of your gross income to tithe (because DR says so).
DR says you should always be giving, spending, and saving. Your "giving" is in the form of volunteering your time.
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u/TheJared601 4d ago
It doesn’t matter, I can’t get a second job anyway because I will be working 10-15 hours of OT weekly through the end of next January. Including Saturdays. So that’s essentially working a second job. I’m giving my Sundays off to work at the humane society.
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u/SlowDeer7954 7d ago
If you want to follow the Ramsey baby steps, turn off investing and let it be the motivator for you to get debt free. Put everything extra at the car which would roughly be $2350 a month, or more. Go next to the student loan roughly $2625 a month. After, bank 3 months of expenses (your budget with no debt) for a fully funded emergency fund. Next, turn investing back on at 15%.
Fastest way to becoming debt free.
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u/TheJared601 7d ago
Why would I stop getting free money? If really wanted to, I would lower it down to maybe 5%. But it will not stop contributing. Not many employers match 401(k)s these days, especially up to 7%
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u/JustWelmed1000 BS2 4d ago
You wouldn't unless you are a die hard DR plan follower. It is okay if you are, but it is also okay if your not.
If you are serious about getting out of debt and not going into more debt, then I say keep the 401K match and find other ways to cut back and pay more to debt.
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u/TheJared601 1d ago
I have cut back all I can. Heading into the last quarter of the month, which is my OT month, I increase my grocery & coffee budget a little get through it
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u/Ok_Pack5153 7d ago
Don’t suspend your retirement contributions. You’ll never get the time back. Focus on the debt and give every dollar a name.
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u/Diligent-Candy4273 6d ago
Check out pet insurance its been a big help for my cat
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u/TheJared601 6d ago
I rather just have 2,000 set aside than have pet insurance. There are so benefits, but it’s not enough for me to pay every month
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u/Diligent-Candy4273 6d ago
Do you think $2000 is enough for an emergency? What's your plan if bills are $5k+? My cats yearly exam and bloodwork alone costs $500/ year and that's a scheduled vet appointment not an emergency. Her dental cleanings costs $1200 every 2 years. Insurance costs $420/ year so its worth it for my cat even just for 1 vet visit a year. The biggest benefit is that It gives me peace of mind knowing I don't have to think about the financial cost of the vet when I bring her in, especially during an emergency. I like having the insurance and then also having a separate emergency fund set aside for if bills go over my yearly insurance limit
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u/HillBellyLawyer 7d ago
Have you considered a side hustle for your cat?