We're getting a makeover. That's right, we're getting nipped & tucked. Going under the knife.
It will take a while to recover, but we know it will be worth it. After, the wrinkles will be gone. The excess flab will be gone. The assets will be bigger. That's right, I said it.
You've probably heard of the type of makeover we're going for. It's called the Total Money Makeover. (The Dave Ramsey plan)
Every month I'm going to write the previous months spending & etc. on here. I'm also going to put down our months budget.
My reasoning for sharing this is that it will help me take account for what we spend.
If you don't want to read it, don't. ;)
So here's where we're starting at.
We have 561.00 in our emergency fund so far. (561./1,000) As soon as our federal tax return is deposited, we'll have it finished.
We have $8,278.63 on credit card #1
and $10,210.50 on credit card #2
CC #1 just had $3,000 added to it because we sold our pickup 2 weeks ago and that was the remainder of the loan. BUT, selling the pickup frees up $500 a month for us to send to the credit card's.
So that's $18,489.13 in debt. (Excluding the house.)
Since our income isn't the exact same every month we're going to use the previous months income to make our budget for the next month. (So for May's budget, we'll use all the money we have from April, which will be plenty from the tax return. June's budget will be made from May's income.)
Taking that $500 from the pickup payment and putting it on top of what we were putting on the credit cards, the calculator says they will be paid off June 2012. 2 years and 1 month. That's a LOT better than living paycheck to paycheck forever. And that's not counting any overtime money. (That will be added each month depending on how much it is. My budget is written off Wade working a 40 hr. week, but right now they're working around 15 hours of overtime. Plus, I should be having an extra $50/wk coming in in the summer with my pt. daycare girl coming ft.)
Now, I'm not sure whats going to happen with our vehicle situation. Right now since we sold the pickup, we have one car that we own. It's a little '99 Saturn with 140,000 miles on it. So we'll see!
At the end of the month, I'll write out my budget for the next month.
And now I have to do it, right?
8 comments:
GOod LUck! We have the book. IT works if you stick to it! Happy paying off your debt! Its so worth it when you dont have any!!!
dear accountable,
Wishing you the best. It IS wonderful to live without creditcard debt. And without vehicle pmts is awesome. When you find ways to live frugal, cutting expences, doing without the frills and all, there is a great sense of satisfaction that far outlasts the "quick-fix-feeling" of buying/getting/living 'higher'.
love,
theMiddleAnt
on the
'middleRoad'
in
KeoniCountry
NE
I agree with the Middle Ant - perhaps she meant Aunt though :) Last fall Jeff was short on hours and we learned to cut back and live frugally. I learned not to go out except for groceries. If I wasn't 'browsing' retail stores I didn't find things I needed 'read wanted'. And we stopped eating out. We spent a lot more time together playing with Desmond and bonding as a family. Just living for what matters will make you the happiest :)
Way to go!!!!
Dave Ramsy is one smart guy! We love his books. We only have 50$ to go before we are done paying off one of our credit cards. (We have been working on it over a year.) Now we have 2 others to go....it sure is a great feeling. Like Melinda we've also quit eating out. That alone has made a HUGE difference. Good for you being open enough to post about it!
So good to be accountable with your money - good luck getting rid of debt! We're almost done with van payments, then will only have house payments. One thing we do to keep away from credit card debt is not charge much on them, and pay them in full every month - such a relief to not have interest accruing on balances or other fees! So...if something doesn't fit into the budget, it isn't bought! (I have managed to fit in a few small wants from time to time, tho! ;p) Anyway, wishing you well with your money makeover.
Way to go, Layna!!! This will be a good way to keep on track and keep accountable!
Way to go!! Wish we could have started it years ago! We're waiting on our tax return to jump start our em. fund.
The Dave Ramsey plan?! That is great!! We are working on the same thing!! It is a great plan!
Good luck!
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