I just finished reading Dave Ramsey’s book called, The Total Money Makeover
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
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What a wonderful attitude you have! You can do it!
Is the $91k including a mortgage?
Unfortunately, it does not include the mortgage; only the ‘bad debt’.
Our mortgage stands at $154K.
Even the 126% doesn’t include the mortgage, since I am figuring “bad debt to income ratio”.
It’s a nice hefty chunk of bad debt (sarcastically). 🙂
Christine, I really believe you can do it. I can’t wait to cheer you on!!
I know you can do it Christine! I’ll be here cheering you on.
I think I should go read that book. It may be very helpful for me. I will check my library.
you do have a great attitude about it — I am still having a hard time wrapping my brain around the amount of debt we have — that is what makes it hard to really ‘buckle down’ to get it done.
but you are truly an inspiration. I always look forward to reading your blog
I also read Dave Ramsey’s book and I agree with most (if not all) of his recommendations, especially the debt snowball reduction baby step. I created a spreadsheet to help me visualize what the snowball will look like and it’s a great motivator since it made me understand that I don’t have to live in debt all my life. I know you and I can defeat all of our debts (not just the bad ones), Christine! Go PF bloggers!
Hi there-very best of luck my dear!!
Frugal trenches: thank U for the wonderful encouragement! They say 90% is attitude. So, if I look forward to hacking this debt, than I should be okay. 🙂
budget mama: thank U, thank U. The book offers sound advice. It made me wake up and realize ‘having money’ is an easy thing to do. Just need discipline and the right attitude to reprogram my ‘money mind’.
jpkittie: although you have just as much debt as me, I know we can pull it off together! As Ramsey books says, “baby steps”. Run with me to the finish line. 🙂
shtinkykat: spreadsheets are great tools. I am glad to have finally simplified my sheet and make it almost automatic to update. It’s addicting to watch the progress.
Sharon Rose: thank you. I will definitely need the luck!
BTW, pfbloggers: as soon as I find enough time and can tackle my spreadsheet publishing issues… It is my plan to make the tracking spreadsheet available for you to use. It really does help. 🙂