A co-worker and I were recently discussing getting out of debt . She is on Dave Ramsey's Debt Snowball plan and it seems to be working for her family. The plan involves 7 steps to get you out of debt, save emergency funds, invest into retirement and college, and then give money to church and those in need.
I agree with some of his plan, but there are a number of holes- the biggest being he seems to use his interpretation of the Bible quite often to justify some of his positions. He also is very anti-gold which really doesn't make sense to me and I think he puts people in some risky positions.
What the conversation sparked was a plan for me to really get out of debt. I think I have mentioned this before (or maybe in my head) that I often feel like I am spinning my wheels.
Family and career goals haven't exactly panned out the way I thought and I feel like we are at a crossroad. I needed to make a decision of what to do next. Part of the hindrance was knowing that we need my income to pay all of our bills.
But, what if there weren't any bills except the most minimal? What if we could get our mortgage paid off and then really implement the plan of choosing our "forever home"?
Starting April 1st, Hubby and I will increase our mortgage payment with the goal of paying it off in eight years. At the end of this year I will assess what additional funds we have and see if we can add a lump sum to the balance. Our ultimate goal would be to have the home paid off in five years but I want to see how well we frugalize our lives. Yep, I just made up that word.
Here is our budget category breakdown:
Dog
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Auto Insurance
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Auto Maintenance
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Auto Taxes
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Electricity
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Donations
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Fun
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Food
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Gas
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Gift
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House
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Home Insurance
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Book Club
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Medical
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Mortgage
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Necessity
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Internet
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Property taxes
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Water
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Telephone Bill
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Taxes
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