Saturday, February 9, 2008

Debt free...

...well almost. We have been doing the Dave Ramsey Financial Peace University online for the past few weeks and we are finally moving somewhere with our finances. When hubby went to shore duty we lost quite a bit of our pay and it was a shock to our budget. Add onto that being homeowners and our savings took a hit.

I am happy to report that by the end of the month we will have no debt other than our mortgage. We cashed out our savings bonds and mutual fund and will use that to pay off the cars. Then we are using our tax refund to build up our savings. The $400 we save in car payments will go towards an emergency fund. Once that is built up we will work towards retirement and the kid's college.

It is great to finally make some headway. We have switched to all cash for our purchases. It is amazing how much less you spend when you have to fork over cash. Before I was rarely looking at the total when I signed the slip.

It has been a big change, but as Dave says "First you have to live like no one else, so later you can live like no one else."

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