Baby Step #1

I am only a few weeks into Dave Ramsey’s Baby Step Program but it’s amazing how once you put your mind to something you can do it. We have half of our “baby emergency fund” saved. Baby Step #1 is to save $1000 then you can work on Baby Step #2 which is to start paying down debt. By the end of next week we will be onto Baby Step #2. I am so excited. I love this program and that there are steps. It makes the whole process of paying off debts and building wealth feel attainable.

I purchased Dave’s budgeting software, and I love it. I have done my own excel spreadsheets in the past for our budget but they are not as detailed as Dave’s. I have February all set up so we will be good to go in a week. I’m super picky; it would have driven me crazy to start the budget half way through January. But I am using Dave’s principals this month just not the zero dollar budget.

My order from Dave’s Site finally came in!! I ordered a cool envelope system in red leather. I love it. I will be using it as a wallet since it has a spot for my license, debit card and check book.

EnvelopeSystem envelopesystem.1

I also got the book “More Than Enough.” It is supposed to give me the keys to building wealth. I can’t wait to get started reading it and give you all an update. I have already read Dave’s book, “Financial Peace” it was about 2 years ago so I probably should read it again. My mom has it so when I am done with this one maybe we will trade for a while.

Morethanenough

I am having a few struggles. I like to plan some trips for the family, nothing extravagant just some mini vacations that aren’t us just going camping. Don’t get me wrong I LOVE camping but I also love getting out and doing new things. In the past week I have started planning a family vacation and then it dawned on me, this isn’t something I should be budgeting for until our debt is gone… that made me sad. I will continue to plan for a couple of our annual camping trips but we don’t get to go to Lego Land or Disneyland. It’s really not a big deal because the kids are young and we have time in the next few years for all of that.

The major debt that will hold us back is our Travel Trailer we purchased last fall. I love it and don’t regret the purchase BUT I don’t like that $21k worth of debt. So I guess we will be sticking to frugal camping trips until this thing is paid off… Good thing I like camping! Theme parks will have to wait.

❤ Sarah

 

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4 thoughts on “Baby Step #1

  1. We’re trying to get our income level up, while paying off all our credit card debt. We’re not even saving first, because what purpose would it serve to put money in savings that pretty much makes nil on interest, rather than paying off cc debt, where we’re being charged high interest? That’s where we’re at now. 🙂

    • It’s cool that you have made the decision to get out of debt! I get where you are coming from and maybe the $1000 could be more useful being paid to a cc. But if my car decides to give me issues I would rather use some of my emergency fund then have to charge the work to my credit card. Sometimes using a credit card can be a slippery slope, you use it once and it can be hard to avoid for the next “emergency”. For me right now deciding to give up debt makes me really want to be done with it and not look back. But, if we look at it from a numbers stand point you are most likely right about where the money would work the hardest for you.

      I’d love to hear updates from you about where you and your family are in this journey! I know for me to stay motivated and excited I have to talk about my progress.

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  3. Pingback: Unexpected Benefits of an Emergency Fund | Life in the Orchard

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