Good luck with your inlaws

that has to be a tough situation especially when she tells you that their debt needs to be paid back first. Dave always talks about “the borrower is slave to the lender”…and if you owe money to family, the Thanksgiving dinner tastes different. I’ve done it too…
Your responsibilty maybe to pay back the debt, but also be healthy, so if you decide to do the surgery in December or later, my prayers will go out to you either way!! God Bless you!!!

A while back I asked for advise

on how to handle a problem with a credit card company and how to pay them back. They had sent it to an attorney and the law firm was threatening to take us to court and garnish our wages. I am now beginning to think that might have been the route to go. We borrowed some money from my husband’s parents and we are paying them back 500.00 a month for the next 18 months with no interest.

We were very thankful for this opportunity and we felt blessed that we didn’t have to pay interest. Well – today I got back from the doctors and I found out that I am going to have to have surgery in December because I have really bad fibroids and I am anemic and it needs to be taken care of. I will have to take about a week off of work.

I was told by my mother in law today that I had a responsibility and a debt to pay and now wasn’t the time to take off of work. She suggested that I wait to have surgery till after my debt is paid to them and she was serious.

Other then our home this is our last debt to pay and promise that I will never borrow money from anybody again!

3 major lessons learned here!

Well I guess I have my answer!

Everyone agreed that I should roll it over. Now I just have to explain to my husband why we should do that instead of take the cash now. I am excited about our journey to being debt free! Thanks everyone for the help and input. I don’t have a station around here where I can listen to Dave on the radio, so I appreciate people sharing what Dave recommends.

Roll it over to an IRA

The penalties will make the entire deal not worth the little benefit you will gain from it.
In response to Cassie (I think) Mark only recommends cashing out the 401K in the case of foreclosure. And then only if you are 100% committed to staying out of debt forever.

Mark has always recommended to roll it over

because with penalties and taxes, he says it is the equivalent to borrowing money at 30 or 40% to pay down debt. If he has ever recommended cashing it in, I have never heard it or for what reason.

When I left my last job, I was fully vested and rolled over about $22K

At my previous employer

I had a 401K plan which they contributed to. Since I was there over 5 years, I was fully vested. I have the option to either roll it over into an IRA or cash out. If I cash out, 20% will be deducted for federal tax and 5% for state tax, plus I’ll have to pay a 10% penalty when tax time comes. So I am trying to decide what to do. We could use the cash right now to finish up some projects or put towards debt, but I am not sure if it’s worth it. The amount of the plan was not a huge amount, but still significant – about $1700.
Any thoughts on what Dave would recommend or what you all would do?


I bought some supplies to extend an existing circuit in my basement, and run a totally new one. I also made a full map of what circuits on my breaker box route to which lights and outlets. So know I know which circuits are barely used and can be added to…

In answer to your question earlier this week end

Zero based budget items I include other than the basic 4 walls, and payments to the cc.


Feed for the critters—average out the year and then add a few bucks so you aren’t stuck with hitting your emergency fund for hay next year.
Medical, for us== co-pays, rx’s and such
Regular vet visits,– vaccinations, specialty feed etc.
Car insurance—we pay by the 6 months it’s a lot cheaper that way
Sinking Funds: I have a cap set on each of these for the balance I want to achieve
Emergency vet visits
Household repair/replace
Eye glass/dental fund
Travel—it’s a no-no, but we do it anyway and it’s the last one funded
Farm equipment replace/repair/build
Truck repair/replace

And when we were still adding animals I had a “bird fund” as well—that was for new birds and equipment.
Plus any annual dues we had.
So sorry about Agatha, that explains why I didn’t hear from you yesterday. You know she knew she was loved and at least she had got to come home to see her “Mama” before she passed. That was a very good thing.

I finished setting up the Snowball spreadsheet

Now working on the zero based budget. I wasn’t as focused as I should have been on either house cleaning or the budget since I lost Agatha on Sunday (Agatha was a 10 year old Icelandic Sheep who had been blind for the past 3 years) – she got chilled in the rain about 2 weeks ago and just never regained ground even though I did treat with antibiotics and supportive care etc. I’m grateful her passing was peaceful, no signs of struggle so I know she passed gently and is now running in verdant fields with clear eyes and back to her stately self. She was the Grande Dame of my flock. Her final resting place will be between two of the 3 big pecan trees in the front of the property which are always cool and shady in the heat of the summer.