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!
Baby Step #1 - Completed
December 27th, 2006 at 07:15 pm
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December 28th, 2006 at 01:30 am 1167269443
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.
I am sure that it will do well for you as well.
January 3rd, 2007 at 10:29 pm 1167863384
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