Our emergency plan has proven to be a success!! Although we aren’t able to put tons of money into our emergency fund right now, we are paid up on bills/necessities through September! If you are self employed and/or have sporadic income this is a lifesaver way to do your budget! If you need help getting started, just ask me! 🙂
We should start putting more into our emergency fund soon, but pending a couple things this month we might be taking a bit out or at least not adding any more to it for a couple months. :/ But hey, we are thankful it’s there!!! This is the reason we have it! YAY!
$1000 emergency fund in the bank. Completed September 2010.
Pay off all debt (except the house) using the debt snowball. Completed September 2011.
Baby Step 3-
Fully funded emergency fund of 3-6 months of expenses. (Because of our circumstances we are going for 12!) THIS IS WHERE WE ARE AT!
- We are still putting all ‘extra money’ into our baby step 3.
What’s in our savings account:
|November 2011||not sure|
Baby Step 3b-
After you have a fully funded emergency fund you can start saving for things that you want. This is where you would save up for a house or something! ((We will eventually be saving for a newer vehicle possibly or something else, but this is when you will do it because your risk is decreased significantly with your fully funded emergency fund in place!))
Baby Step 4-
Although we are no where near retirement it’s time to start investing 15% of our income!
Baby Step 5-
Preparing the little guy (financially) for college
Baby Step 6-
Start paying off the house early! What could we do without house payments?? Oh don’t even get me started! I cannot WAIT for that!
COMING LATER RATHER THAN SOONER IM SURE 😛
Baby Step 7-
Build wealth & give
7 BABYSTEPS :
Baby Step #1: $1000 emergency fund ((Can be completed in 1-2 months))
Baby Step #2: Pay off all debt except the house using DEBT SNOWBALL. ((List your debts in order, from the smallest balance to the largest. The idea of the snowball is simple: pay minimum payments on all of your debts except for the smallest one. Then, attack that one with gazelle intensity! Every time you pay off a debt, you add its old minimum payment to your next debt payments. So, as the snowball rolls over, it picks up more snow.)) ((Avg time to complete this is 18-24 months))
Baby Step #3: 3-6 months expenses in savings completes your fully funded emergency fund
Baby Step #4: Invest 15% of household income to Roth IRA’s & pre tax retirement ((You do steps 4, 5, &6 all at the same time))
Baby Step #5: College funding for your children
Baby Step #6: Pay off your home early
Baby Step #7: Build wealth & GIVE!
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This is our Journey through FPU!