Last fall I blogged a bit about Dave Ramsey and wanting to complete several of the baby steps this year.
For those who don't know, the Seven Baby Steps are:
Baby Step 1- $1,000 to start an Emergency Fund
Baby Step 2 - Pay off all debt using the Debt Snowball
Baby Step 3 - 3 to 6 months of expenses in savings
Baby Step 4 - Invest 15% of household income into Roth IRAs and pre-tax retirement
Baby Step 5 - College funding for children
Baby Step 6 - Pay off home early
Baby Step 7 - Build wealth and give!
All year we've been putting money toward Baby Step #2. And this month we got a HUGE and unexpected blessing and we were able to complete Baby Step #2!
I cannot even tell you the amount of peace this has brought -- even though our debt was not high interest. It's a giant weight lifted.
We've also put aside a chunk of change to buy a second car, which we will likely need very soon (we've been living with one car for over two years since the Mr. has a company car).
Now we're on to Baby Step #3, and well on our way to building up that emergency fund.
I know a bunch of you are on Baby Step #2 -- it's HARD -- but worth it. Even if you're just making one or two extra payments a month on that car loan or student loan, keep at it! Little payments can add up big.
Is anyone else out the making progress on the Baby Steps?
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