When we started FPU, Dave Ramsey said that most people can knock out baby step 1 in a month or two. Work an extra job for a bit, have a yard sale, he gives all kinds of ideas. Well, we figured we'd just use our tax return for the purpose, and we did. I called the bank today and transferred the money into savings.
I can't believe how good it feels. Every year we make big plans with our tax return money and you know what? It usually involves paying someone off. Well, this year is the beginning of the end of all that nonsense. We haven't used our credit cards since we started FPU. We have a long way to go toward true financial peace, but just stopping the madness feels good. Super good.
I called Alif on his cell phone and we rejoiced together. I am giddy!
Pay off all debt using the Debt Snowball
3-6 months of expenses in savings
Invest 15% of household income into Roth IRAs and pre-tax retirement
College Fund for children
Pay off home early
Build wealth and give