"" Three Ladies and a Dad: Financial Check for June

Friday, June 27, 2008

Financial Check for June

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!

2 comments:

Whitney said...

Yay! Congrats =)

Mrs. Dirnberger said...

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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