Dan and I have completed Baby Step 1 in our Total Money Makeover! We've saved our $1000.00 emergency fund. It's the most savings we've had in our twelve years of marriage, so I'm feeling pretty proud of us! We have also paid off the first 5 items on our debt snowball and now we're really going to start knocking stuff out! Just today I made the final payment on Amelia's birth expenses (now that she's 18 months old). It's an awesome feeling to have that monkey off my back! Because Dan and I are both self-employed and don't have set paydays, we have relied on our emergency fund to cover us between paychecks, when necessary. But each time we've gotten paid we've replenished the emergency fund and added more when we could till now we're at $1000.00. We plan to continue to build that to $2000.00 as soon as possible because of our somewhat unique employment situation (we really are gluttons for punishment, both being self-employed.)
I told my friend's mom today that we had our emergency fund and she was horrified to hear that a mere $1000.00 was the most money we had ever saved. But I fear that most people are like us, living paycheck to paycheck. Having that emergency fund has cut the stress in my life tremendously because now I don't have to worry about overdraft fees or having to use the credit card if something comes up. Dan had to get his wisdom teeth pulled this month and we paid cash for it. I have to get some dental work done (a gum graft) and we're going to pay cash for that with our tax relief check. And it's true what Dave Ramsey says, that paying with cash saves you money. Not only in finance charges, but the oral surgeon gave us a discount for paying cash at the time of service. Sweet!
If you didn't read my post about Dave Ramsey's book The Total Money Makeover, you can read it here. We just checked his book out at the library and started applying his principles, no cost involved. It took us 4 months to save the emergency fund. And we haven't used our credit cards in 6 months. And we can pay our bills every month. When I told Dan today that we'd reached our $1000.00 emergency fund goal, he kind of bah-humbugged about how far we have to go. But if you consider that we have an emergency fund, we are no longer accumulating debt, and we're paying our bills every month, we're much farther than $1000.00 ahead of where we were just 6 months ago.
So I say, "Yay Us!"
5 comments:
yahoo for you... I so want to be cool like you, but seriously... I think that it is great that you guys are really sticking to it. I have been trying to follow dave ramseys advice, but find it to be alot harder than it sounds. especially now that I am out on my own, but I think that it is good to have something to shoot for!
Sue and Dan, BIG HUGE CONGRATULATIONS for your efforts to take control of you finances. Anyone reading this blog entry should just be clapping and cheering you on.
Just this past Sunday at church they read a statement from THE First Presidency about investing and finances. Hmmm, this is a very serious issue if that council is being read from the pulpit. As the financial climate in this country becomes more difficult getting out of debt and living within your means becomes even more important. Plus, it just make you feel so good and happy.
You two are trying to follow their council and I commend you for your efforts. You can do it!
wow! I'm really impressed with your hard work and I know you will be feeling that wonderful peace of mind that comes with financial security.
way to go guys.
Congrats you guys! That is fantastic news! In a world with so much financial uncertainty it is great to see the progress you have made and that you have a savings! I think that there are too many people out there living pay check to pay check, and I think it's great that you are so open about how you are taking on your financial challenges! Way to go!!! Keep up the great work!!
You go girl! And you know, the thing I keep thinking about is that I hope I can teach my kids not to do the dumb things with credit that we did.
Post a Comment