Our House insurance yearly fee is coming up. Which we have been saving for. It hit me the other day that we have added on to our house but haven't increased the insurance. So I called our state farm agent, and he came out and measured the house.
Last year we had replacement cost insurance and it was to the value of $115,000. It had a $500 deductible and its annual fee was $700 dollars. After he measured the house, the replacement cost was either $220,000 or $236,000, using two different calculation methods. I told the insurance agent to use the $220,000. The increase in the replacement cost caused the annual fee to go up to $1,500. Luckily I remembered the insurance lesson in Financial peace university. More risk equals lower payment.
So I asked how much would the payment be it we raised the deductible to $1000. With a higher deductible the annual fee was only $915. This was definitely a winner. In the first year, if there are no claims, I'll be money ahead.
In the end, my house now has double the insurance amount and it only raised my annual fee $215 dollars.
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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.
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