Dissing Debt-Totaling Up

Baby Step two of Dave's Ramsey plan is the debt snowball. This is the longest step. You didn't gain the debt overnight, hopefully, and you won't lose it overnight. Keep in mind that your life style must change. Your habits must change. Your mind must change. Dave's famous saying is

"If you will live like no one else, later you can live like no one else." 

So grab a huge cup of coffee, soda or whatever else keeps you calm, a pen and some paper. It's time to start totaling up your debt. Write down all credit cards, store cards, car loans, private loans, medical debt, school debt, mortgages and old forgotten debt. Don't miss an amount because you don't want a bill creeping into your life later.

After you list your debt, Let's start listing what you spend your money on. These are the items that most people gladly spend money on before actually paying for bills and debt. Fell free to add to my list.

Fun Spending:

Transportation (gas)
Drinks (coffee, beers after work and smoothies)
Books and Magazines (library and subscriptions are wayyyy cheaper folks)
Auto Insurance
Entertainment (movies, children's bouncy house, billards etc.)
Birthday Parties and Gifts
Holiday Expenses (decorations, food,

That was fun wasn't it? I'm going to help you with the Fun Spending category in the future. Now the hated part; list your bills that don't have debt associated to it. I'm talking month or bi-monthly bills that come out of your household. ***If you are married, include everything from both parties. Their bills are your bills just as much as their debt is their debt!***


Real Estate Taxes
Association/Organization Dues
Utility Bills (cell, house gas, electricity, internet, cable, water)
Auto Repairs
Auto licenses and taxes
Medical Bills

Thanks for reading thus far. I know it might seem like a lot, but your money is going somewhere and you ought to know where. This is just the list, the hard part is attaching dollar amounts to your DEBT, BILLS and FUN SPENDING. Go ahead, I'll Wait....

This is our pain in the A$$ as of 7/2015:

Medical Bill: $303
Medical Bill: $800
Credit Card #1: $730
Credit Card #2: $2,400
Private Student Loan: $5,273.53
Car Loan: $11,818.01
Sallie Mae Student Loans: A Mortgage Worth!!!

Oh yeah we are sharing our debt!!! No hiding in 2016! What does your debt look like? Similar? Better? Worse?
Don't judge us. 

We would love to pay this down in two years, but I believe the student loan parts will take near 10 more years. Some people would just roll their eyes at their debt, walk away and chuck a "whatever" attitude towards it. But not us and not you! You are getting your finances together in 2016. You are learning that it's more to life than living check to check. You know that in order to get things accomplished you actually have to START somewhere. This is your somewhere.

Next week, we will tackle our Bill Section first.

From Maruki


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