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Baby Step #1 - Completed

December 27th, 2006 at 07:15 pm

I have started reading Dave Ramsey's Total Money Makeover this past week and I think I am going to give it a try.

Step #1 involved making a budget and saving $1000 in a small emergency fund.

I had already started working on a budget the past few months. This morning I did a little tweaking to it to make sure every dollar is accounted for (this is what he recommends). I have a little wiggle room in some of the categories so if something unplanned for comes up I should still be OK.

I also already have about $2000 in a savings account. I plan on taking $1000 of that and put it into a new savings account so it will be seperate from the rest of my money. I have already setup an account for irreguar bills (registration, insurance...). I am thinking of setting up a third for Christmas/Birthdays... how many savings account does a person need? Maybe I will just use my exising account at my credit union for this.

The next chapter I am going to read is about snowballing debt - which I pretty much know the concept of anyway. When doing my budget I realized I will be able to put more towards debt than I originally thought I would. So maybe this won't take as long as I had thought.

Also today I went online and paid my credit cards for the few christmas presents I purchased online. I wanted to start 2007 with nothing on my CCs and keep it that way.

I also took the leap and paid off my school loan - just over $600. I recieved a little extra money for christmas through presents and my xmas bonus so I just decided to go for it.

I am on my way!

5 Responses to “Baby Step #1 - Completed”

  1. Aleta Says:

    You're off to a great start. Congratulations! I'm reading a couple of books as well. I am planning on reading a book a month. I'll have to get the Dave Ramsey book next.

  2. Amber Says:

    I used Dave's plan as well and I am on my last debt (student loan) I did however deviated a bit but it worked I am cc debt free. Good luck

  3. Ima saver Says:

    Good start!!

  4. Broken Arrow Says:

    Sounds terrific!

    I'm not really a devout zealot from the Order of Dave Ramsey or anything. Rather, I believe custom tailoring my own personal strategy that I thought best fits me.

    The irony is that I ended up doing pretty much what he had recommended in that book. Big Grin
    I am sure that it will do well for you as well.

  5. debtfreeme Says:

    i have several savings accounts:

    student loans (for deductions and for saving a little extra each month when my loans are in deferment, i keep paying them quarterly.)

    Christmas/Gift account

    miscellaneous (not sure what i am saving for but it gets funded each month) I think it was supposed to be an account to save for repairs on my car.

    Large saving account for my emergency fund which i save 500 a month into

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