Saturday, January 28, 2012

On a roll

Without giving in to the numerous cliches coined by Dave Ramsey, we are on a roll. I've read Total Money Makeover (and even bought the workbook today with a gift card we had lying around! Score!) Our ING Direct bank account is verified and I've set up our sinking funds accounts. Tonight we are forgoing a HHS Fundraiser for a quiet date night, funded with a coupon from the Entertainment book we purchased from Horizons. We'll talk, work on the workbook, and hopefully come together more on what we're doing. Paul is more "don't spend any more money" while I'm more "let's have a plan so I am not tempted to spend any more money." Sometimes it's tough to speak the same language.

Here are our sinking funds accounts. These are things that don't happen monthly, but can sneak up on us every few months.
  • Quarterly Taxes
  • Western Disposal
  • Allstate Umbrella Policy
  • Horizons K-8 Various Fees
  • Emergency Fund
  • Vacation Fund 
Once we are debt-free (except for the house) we will add more to the kids' 529 Funds and our Retirement Fund. I am super excited and motivated to get out of debt and have all that money to ourselves. I like the idea of not paying for the past but saving for the future. 

Here are Dave's 7 Baby Steps:
  1. Save $1000 for a Baby Emergency Fund.
  2. Begin Debt Snowball Plan.
  3. Finish Emergency Fund (3-6 months of expenses)
  4. Invest 15% of Income for Retirement.
  5. Save for kids' college.
  6. Pay off mortgage.
  7. Build wealth (invest).
Hopefully we will complete all 7 steps (usually in 4-7 years, for most people following his plan) and actually have enough money to give - to whatever causes we like. I'd love to help my parents, send money to Mae's orphanage, help the synagogue, help Horizons... I'd love to. We shall see.

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