We have finnally decided on an emergency fund goal. We took our budget and stripped it down. We took out saving for vacation, new furniture, Gifts (christmas & birthdays), eating out, & home improvement. We came up with around $3300 a month in expenses. We didn't lower saving for Automobile service (fixing the car), pet care, & medical expenses, house insurance, property taxes & gasoline usage. This would still give us flexiblity in our budget.
We looked at what emergencies we might have that we could our incomes and how long they might effect us. We looked at our parents, and their health, their finacial situations. We looked at our jobs and their stablity. We tried to look at any situation that we might use our income and savings, or might cause one of us to take a leave of absence from our job.
We ended up taking the $3300 and multiplied it times 3 months, then rounded it up to $10,000. So we should be okay for 3 months with no income and good for close to 6 months on one persons income. So $10,000 is our goal.
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My families journey down the road of becoming debt free and finanicially sound.
Baby Step 3 Status
$10,000 emergency fund goal
Paused Baby Step 3 at $2500.00
Paused Baby Step 3 at $2500.00
Baby Step 2 Status
Started Total our Total Money Makeover on January 1st, 2010 with $49,705.46 in debt, not including our mortgage.
April 13th, 2012 we paid off the last of these debts. It took us 28 months and 13 days.
April 13th, 2012 we paid off the last of these debts. It took us 28 months and 13 days.
The Road to financial peace.
This is a record of our journey in finding financial peace. We are using the baby steps in Dave Ramsey's - Total money makeover, book. We will be trying to follow his plan as close as we can. We hope to have an end result where we have no debt, have a large emergency fund, are saving for buy everything, are saving for our kids college, and are building wealth for retirement.
When we started this plan on January 1, 2010. I was 32 years old and my wife was 31. We had been married for 4 years. We knew this plan would take a few years before we were on the last step in the baby step process. But we are dedicated not to give up.
This blog is to help us keep on track, and keep us focused on our goal.
When we started this plan on January 1, 2010. I was 32 years old and my wife was 31. We had been married for 4 years. We knew this plan would take a few years before we were on the last step in the baby step process. But we are dedicated not to give up.
This blog is to help us keep on track, and keep us focused on our goal.