I just finished reading Dave Ramsey’s book called, The Total Money Makeover. I was quite impressed (I will blog review the book in a later post). So, I have decided to follow the beginning 3 ‘baby steps’ of his book in order: Save an EF of $1K, Snowball Debt Quickly, and finish funding EF w/ 3-6 months worth of expenses.
You will see on the right that the 3 bar charts have been Revised. The Emergency Fund goal has been reduced to $1000 (which according to the book should be funded by 1 month’s time). The Combined Debt is my Phase 1 + Phase 2; this will be paid as one, now (see the mass amount of Blecky Debt???). It equates to 126% Bad-Debt-2-Income Ratio (see previous blog posting). The Summer Fund – previously I was using this amount + my EF as a combined Emergency Fund Amount. I have now seperated them. The Summer Fund is used to pay for increased Summer Day Camp funds for the kids.
I think its easier to read this whole picture.
$665.17 in my Emergency Fund
$316.34 in the Summer Fund
$91,000 of Debt!
So, if I prove I can get my family out of this mess, than seriously I know that anyone can do it!
Just think positive! Hi-Ho, I am onto Week 8 of Erradicating Blecky Debt!
Happy Monday! ~Christine