Friday, December 19, 2008

Living like no one else:)

So it's been more than a month and I have not blogged.

I've decided that I'm going to blog about my journey to becoming debt-free, with some other random topics thrown in randomly.

We currently have about 38K in debt.

It breaks down like this.

15K for that brand new car we just had to have.
16K for my student loans, and no degree to show for it, I only did two years.
2K on credit cards, not bad compared to a lot of people, lol.
5K in random unsecured debts, mostly for financing things, ugh.

So for us that's quite a bit, seeing that we, meaning my husband, bring in probably around 30K a year, being lower enlisted in the Army. I am lucky though that we can manage enough for me to stay at home... I honestly don't know what kind of job I could get that would justify the cost of day care though!

We have chosen to follow the Dave Ramsey plan, which is to do these 7 simple steps.

1)Save up your "Baby Emergency Fund" of $1000, for lower income families like us, you can save $500 if you don't see any storm clouds over the horizon, which we don't.

2) Dump all of your debt using the "Debt Snowball). The "Debt Snowball" is making minimum payments on everything except for your smallest debt. The smallest debt is the one that you throw every extra nickle and dime you can find on. You do the smallest instead of the one with highest interest because finance is 20% knowledge and 80% behavior. A quick win will keep you with the plan and get you motivated. After you pay the smallest debt, everything you were paying toward that debt now gets put onto the next smallest, and so on and so forth.

3) Save up a fully funded emergency fund for 3-6 months of expenses.

4) Save 15% of your income in pre-tax retirement accounts.

5) Save for college.

6) Pay off your mortgage as quickly as possible!

7) Invest and Give!

You isolate and focus on the first three steps, then you do steps 4, 5, and 6 together.

There's the synapsis of the plan we are following. Due to a tax refund and raise early next year we should be able to do this quickly. If we can get that stupid car sold we'll be able to do it even faster. Although we won't be trying to sell the car until early next year.

I'll post monthly, at least, with updates... so if anyone ends up reading this, they can follow along with our story:). Otherwise, this is still beneficial to me!

Wednesday, December 3, 2008

She’s two months old today!**

Wow, McKaleigh is getting so big! People still point at her and say "awww look at the tiny baby," whenever we're out, though, lol. McKaleigh and I spent all of last week at Ft Benning and then Michael came Wednesday night. Thanksgiving dinner was good, uneventful for the most part. Michael and I had our first night out alone, we went to dinner and a movie last Friday. So McKaleigh got her first bottle, which my mom said she took pretty well, but looked confused, lol. I doubt we'll be making a habit of bottle use though.

Sunday McKaleigh was baptized at Lutheran Church of the Redeemer, after the service. Antonio, Selena, Zachary, and my cousin Tyler are her sponsors, basically what some churches would call godparents, I think. I wish we could've done it at St Paul in Fort Dodge so more of my family could've been there, but I'm not sure when Michael will be able to come to FD with me.

McKaleigh's become way more vocal lately and coos and aahs a lot more, hehe, it's adorable. She has a bouncy seat with animals dangling in front of her and she'll just kick her legs and flail her arms like crazy to get those animals to move back and forth, haha. I can't think of much else... Time goes by so quickly!