Sunday, September 20, 2009

Mini-milestone and goals revisited

Last week's progress on CC1:

$1,448.98 starting balance
- $176.00 contract paycheck

$1,272.98 current balance (20% paid)

We're finally making some progress on this credit card! I received my paycheck last week for time completed in August. It's the first of several large paychecks, my next coming 10/1.

This week hubby and I will be shopping for new tires for our car. We are overdue and the goal is to pay for four new tires by the end of September. We have to wait until his next paycheck (Friday) to have the cash, but that's where most of our snowball will be directed this month. Unfortunately, we can't neglect essential car maintenance just because we're focused on paying off our credit cards.

Hubby and I have decided that we're going to start trying for a baby when all the consumer debt is paid off. I'm so excited about this as we now have a concrete goal of when we're going to start growing our family. Before, we just talked about "when we can afford it," "when the debt is paid off." Well, we have $69,500 in total debt and that pay off is years away.

We're following Dave Ramsey's baby steps:

1 - $1,000 emergency fund DONE
2 - Pay off all debt except the house
3 - Build an emergency fund that covers 3-6 months of expenses
4 - Retirement savings
5 - College funds for kids
6 - Pay off home early
7 - Give like you've never given before

Because we have no house and no plans to buy one... we're rearranging the steps a bit so that we can start growing our family:

1 - $1,000 emergency fund DONE
2 - Pay off all consumer debt (credit cards and car)
3 - Build an emergency fund that covers 3-6 months of expenses
3a - Start trying for a baby while building our emergency fund
4 - Retirement savings
5 - Save up a minimum 30% down payment on a house
5a - College funds for kids
6 - Pay off home early
7 - Give like you've never given before

That's the plan for now, though things will probably change once our consumer debt is paid off. What's left for consumer debt?

CC1 - $1,272.98
CC2 - $3,037.29
CC3 - $4,363.78
Auto loan - $4,565.83
CC4 - $9,105.16

We are $22,345.04 away from having our first child! I am very excited. That's so much more optimistic than the original figure of $69,444.98 for our total debt.

2 comments:

Ann@His Grace To Me said...

What a great goal and I'll be praying that Lord makes a way for your consumer debt to be paid off way ahead of schedule!

I led a Financial Peace University class at our church in '08 and it was such a blessing. Following those baby steps really helped many of our church members. It is totally worth the effort and sacrifice to be debt-free.

DanniellaAnn said...

That makes me soo happy, I can't even imagine how you are feeling. That's a very reasonable goal. Go Jeff! Have you been showing him cute baby videos? I've got pleanty. Yay I'm going to be awake all night thrilled to death. Sad huh? Oh well. So conceivably you could be starting to try for a family by this time next year, possibly? :)