The beginning of our Debt Free Journey
Let’s talk about debt, if you are like me you are in debt over your head and don’t even realize how much. I have always known that I had a lot of debt, but it never affected me (so I thought). Most times we live paycheck to paycheck and think nothing of it because we are living for the moment. That is until it all hits you in the face at once and you realize that you are barely making ends meet. Well let’s put that a different way, you can make ends meet, but you waste a lot of money on things that are not necessary.
This brings me to getting my life together and saving for life’s mishaps. You never know when something will come out of the blue and hit you like a ton of bricks, and you’re just not ready for it. I should have learned my lesson back in 2004, but I tossed it up as, I will come up with the money somehow. That is not always the case, and in most cases, people lose their homes for such stupidity. I needed to do a reality check on my life, and finances quick.
So here we are today, I have looked at different ways to save money, and to pay off my debt. I came across the Dave Ramsey “Total Money Makeover” books, as well as watched some of his shows. My mind was made up, now I must convince my husband to get on board. Which was a lot easier than I thought it would be. I told him about it, how it worked, I also told him that we would adjust it to fit us. After one conversation he was on board.
I did not let the fact that he had just been laid off stop me, I jumped in with both feet. I gathered all our expense so that we could get a reality check on our total debt. I knew it was high, because of my student loans, but I did not realize it was that high. Our total debt came up to $ 245,527.09, I was shocked, to say the least. So, we started on our mini emergency fund, totally relying on my income and his unemployment.
While working on our mini emergency fund, we also started our paycheck to paycheck budgeting. This was a struggle the first week, which I am only on the second week now (LOL). But I can say that this week, so far has been better. I also managed to pay off a couple of small debts and get them out the way.
I know what you are going to say, and no that is not what Dave Ramsey says to do. But I feel if I have a debt that is less than a hundred dollars, I am going to knock it out if I have the money. Stay tuned for the next update, as well as my budget and cash envelopes. Follow along with us on our journey to becoming debt free.