So Now I’m a Liar.

21 Sep

Ok, so I promised I’d have the potato recipe for you today…but…I lied.

We used some of our “blow money” last night and ate McDonald’s. After three weeks of no eating out, it was nice! And still under ten bucks for the two of us, so, manageable.

Oh, so you want to know what blow money is? I’d love to tell you!

As of yesterday, Dave and I are officially 100-percent involved in the Total Money Makeover. It’s an awesome plan written by Dave Ramsey where the end goal is to be completely free of debt. Zero. Zilch. Diddly squat. You get it.

There are seven “baby steps” to the program:

Baby Step 1: $1,000 to Start an Emergency Fund
BS 2: Pay off All Debt Using the Debt Snowball (will explain this in a second)
BS 3: 3 to 6 Months of Expenses in Savings
BS 4: Invest 15% for Retirement
BS 5: College Funding
BS 6: Pay off Home Early
BS 7: Build Wealth and GIVE!

We already had baby step one done before we started the program, so we went all child-prodigy on this plan and skipped straight to baby step two. Since we’ve already been cutting back in every. possible. way., it hasn’t been too much of an adjustment. We’ve been eating at home, I’ve found ways to cut our grocery bill and I’ve been making a lot of things instead of buying them at the store, which saves more money than you realize!

Dave recommends getting “gazelle intense” in baby step two. First step of paying off all your debt is to list all your debt in order, smallest to largest. Everything you owe money on, except the house. Then, you pay minimum payments on all the debts and totally attack the smallest one. Any extra money you get goes toward paying off this debt. I sold my iPhone on eBay (single tear) to knock this out. Dave says, “…if people think you’re crazy, then you’re on the right track.”

“The point of the Debt Snowball is simply this: You need some quick wins in order to stay pumped up about getting out of debt! Paying off debt is not always about math. It’s about motivation. Personal finance is 20% head knowledge and 80% behavior. When you start knocking off the smaller debts, you will see results and you will stay motivated to dump your debt.”

Once you’ve paid off the smallest, you start attacking the next. So it’s a snowball effect until eventually, you’re paying bookoo bucks on your biggest debt because you’re using all the money you were throwing at the other debts to pay it off. Get it?

So that’s where we’re at. I’m ri-donkulously motivated to knock out our debt for two reasons. Obviously, it’s going to be super awesome to owe no money to anyone, but also because dangit, I want to stay home with Maddy! In order for that to happen, we’ve got to make some changes, so by golly (yes I just said by golly. Blame Alabama.) we’re going to do it!

I’ll keep y’all posted on how we’re doing on our makeover. At the very least, maybe it’ll provide you with some motivation to roundhouse-kick some of your debt!

Advertisements

One Response to “So Now I’m a Liar.”

Trackbacks/Pingbacks

  1. Money, It’s a Gas. « Bukebox - October 12, 2012

    […] a Gas. If you’ve been following my blog, you know that Dave and I have hopped on the Total Money Makeover bandwagon. Apparently I’m all about makeovers. And yet I will still walk out of the house […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: