February 03, 2009

Yard Sale Update/Dave Ramsey question

I forgot to give yall an update on the yard sale – I made $150!!

Considering that my biggest ticket item was $10 (a leather purse) and everything else was $5 or less, I was really pleased. We got rid of a lot of junk!

I’m still new to this married thing. In my head, I had already decided what to do with the money. Then I remembered that it was just as much his money as mine (very literally – he gave up a lot of ugly, pleated front, old man dress pants for us to make that much money) and I should consult him about what we would do with it.

Being a Dave Ramsey fan (come on – drink the kool-aid! Its very tastey!) I wanted to put it on our debt. He and I were very blessed to come into the relationship debt free – but we’ve picked up two debts along the way – an HH Gregg bill for appliances, and a mortgage on 5.55 acres of land.

I know that Dave would beat me if he knew, but HH Gregg was offering 24 months interest free financing. Rather than take the money out of savings, we decided to take them up on their offer. Of course the “amount due” on the bill isn’t the amount we pay each month. We took the amount of the purchase and divided it by 24, so that we would have it paid off before the high rate kicks in.

As he would say, we’re playing with snakes and right now we have to be very careful to not get bitten.

Before you ask – the reason we purchased appliances is because we had to! His parents purchased a home (hand-picked by us) to use as a rental property. The home was a foreclosure and had been stripped before the previous occupants left.

Our other debt is 5.55 acres of land we purchased at an auction the weekend we got back from our honeymoon. After putting 25% down (what the bank requires on land purchases now, due to the current state of the economy), we were left with $33K.

My measly $150 from the yard sale doesn’t go very far in reducing that debt so I was afraid that Mr. Right would want to spend the money in another way. Or else just put it in savings for a rainy day.

Maybe I played it right saying “you might not like how I want to spend the money.” Because I think he had visions of a clothing shopping spree in his head, or else buying a headboard for our master bedroom. He looked pretty scared – until I told him I wanted to add it to our land payment for next month. He agreed that was the best way to use the money. Isn’t it amazing when you agree with your spouse on something like that? It made me feel really good knowing we’re on the same page.

For all you Dave followers – I have a question. Not counting the appliances and the land, we’re to baby step 4 in the process. I’m cheating and not counting the appliances, so pretend they aren’t there. (I know its hard, but just play along). Do you think that he would consider the land our mortgage and a part of baby step 6 (since our current plan is to get the land paid off then use it as our down payment to build the home of our dreams on that land), or would he consider it part of our debt snowball to be attacked before we move on to #4?


  1. Just stopping by from SITS. I'm praying for your dad. Also, great job on the yard sale!`

  2. We are Dave Ramsey followers as well but we are a little more relaxed in our approach. I am thinking he would probably view it as part of your debt snowball. I only say that because you want the equity in the land to build your dream home. But hey I could be totally wrong! At any rate, I think you are the right track. And I can't wait to hear more about this dream house! How exciting!!

  3. Thanks for stopping by today! I'll just be poking around your blog a bit, lol.

  4. You did good on the sale and I'm impressed with the way you are sticking to your budget! I would think that the land would go with a house and not be a debt snowball, but who knows? Anyway - keep at it and it will be payed for regardless!

  5. You did great on the sale and weeded out some ole man clothes too! LOL You guys are doing great on the budget!

  6. Woo Hoo! Thats a great amount for a yard sale! Not sure what I'd do with the money, in theory I'd add it to our debt snowball though. - Katie

  7. I don't know anything about Dave Ramsey. All I know is that I try to make good financial decisions every day. My husband and I are VERY different regarding money. It's amazing. I am glad you and your husband are on the same page. That makes life SO much easier.


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