March! I’m way late in getting our March update posted. These are our official numbers for March although we may have to use some of our emergency fund to help out with our expenses until Jareds work has more ups. Living off of Jared’s income doesn’t seem to be working out so well this time. But that is good to know while I’m still working!
$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 have reached a goal & are now putting my checks straight to the savings & living off of Jared’s income!
- 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!