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?
Mondays with Manny
3 days ago