Dave Ramsey's program involves several Baby Steps that, according to him and many others that have had success with the program, will work to put us on a better path financially. The first Baby Step is to put $1000 in an Emergency Fund to handle the emergencies rather than relying on credit cards.
Immediately after the class we took $1000 from our tax refund and earmarked it as our emergency fund. Then, we looked at a quick monthly budget and realized that our minimum payments were killing us. So, we took our smallest debt, which just happened to be our 15 passenger van, and PAID IT OFF... EARLY! We have never paid anything off early. This was a huge step for us. In place of letting our tax money get eaten away little-by-little and having nothing to show for it, we now have a paid off car.
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| "Ghost Rider" almost 5 years ago, now totally paid off! |
On a more practical note, I will be rearranging our kitchen over the next few weeks. Becoming more organized will help me to save money on our grocery budget in order to attack our other debts. As you can imagine, with a family our size, food is a big deal! While I know our budget is way below what many smaller families spend, I'm sure I can do even better.
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