We just completed our first budget and found a lot of extra money to put towards our first debt in the debt-snowball.
Here is what our plan looks like so far:
Step 1: Fund an emergency fund with $1,000.00. Start a budget. (We also plan on using the envelope system, which I think this little tool will work great for that.)
Step 2: Pay off all debt with the debt snowball.
Step 3: Put 3-6 months expenses into savings.
Step 4: Invest 15% of income into Roth IRA's and Pre-tax Retirement Plans
Step 5: College funding for our girls.
Step 6: Pay off home early.
Step 7: Build wealth and give!
Here is our plan - personalized and updated:
Step 1: Fund and emergency fund with $1000.00. Start a budget. (We also plan on using the envelope system, which I think this little tool will work great for that.)
Step 2: Pay off all debt with the debt snowball. (Now that everything is up with the budget, we are starting the snowball this month.)
Debt 1: Student Loan 1
Debt 2: Student Loan 2
Debt 3: My car
Debt 4: Land
Debt 5: Jeremy's car
(We are using a different method to get his paid off early. We are also altering the snowball a bit as well. My car has a higher interest rate than the land, and even though my car has a larger balance, we are paying it off first.)
Step 3: Put 3-6 months expenses into savings.
Step 4: Invest 15% of income into Roth IRA's and pre-tax Retirement Plans
Step 5: College funding for our girls.
Step 6: Pay off home early.
Step 7: Build wealth and give!
At the beginning of each month, I will post an update on our progress. We have to discipline ourselves to this budget. It is now the 'final say' in our house.
Help keep us on track, people!
Friday, June 27, 2008
Financial Check for June
Posted by Alaina @ Three Ladies and a Dad at 8:13 PM
Labels: Debt-Free(dom)
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2 comments:
Yay! Congrats =)
We have been doing a budget too!!! Vacation hit us a littl hard but so far it is going ok!! I like the envelop system and might use it too. And now with baby coming...we really will have ot budget!
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