The first thing I did

The first thing I did was build up an emergency fund. Just makes me feel a little more secure. I decided on an EF of $2,000 but everyone is different.

Since it’s just me and I don’t make much I decided to make my EF one month’s salary, but that’s just me. Not that you asked my opinion, but I would consider putting all extra money into the EF (paying only minimums on your cards) until you have built up to an amt you feel comfy with ($500, $1,000?) and then start putting all extra on the cards. Although paying them off is important, I think having the peace of mind that there is a little there incase something goes wrong with your toilets again is impt too!

Just work through his “baby steps”

1) Get a $1,000 dollar emergency fund.

2) Tackle all debt except the house. Get it all paid off.

3) Get a 3-6 month living expense emergency fund built up.

4) Discontinue retirement savings until steps 1-3 are accomplished.

5) Max out retirement savings.

6) Pay off the house.

7) Fund college for kids.

8) Invest like crazy! Build wealth! Get Rich!

who is still on baby step #1?

Working on an Emergency Fund

OK, you all have finally convinced me…..It has been awhile since I read David Ramsey’s Financial Peace (I should go check it out from the library again to refresh my memory). I have been trying to put every extra penny I could to repaying credit card debt. But I think I need to change my tactics.

It doesn’t do me much good to have the CC debt come down and then when I have an emergency (like I just did with two toilets that needed a plumber), then I have to charge again on the card.

I have a little bit going into House Maintenance each month, but it just never seems to keep ahead. So…..I am going to drop some of my CC extra payment each month and put that $200 into an Emergency Fund.

I’m still paying extra on the principal, I just won’t pay as much on it each month…..

Whew, just writing this to you helps me feel better about doing it. And slowly and surely, that CC debt will payoff sometime soon, I hope.