We have debt. More than I thought we did. More than I would like to admit. It is so easy for us to drop $300 or more every weekend on food and nonsense. My husband was under-employed then out of work for a few months in 2014-2015. That along with our spending has dug us a hole. I’ll admit that we have no student debt. Our house is extremely modest, we only have one car, and our debt is not that bad compared to other people. Though I still feel enslaved by it. It is constantly something that is eating at me. I did not buy Dave’s book. Sorry Dave. I Googled and YouTubed the method. So adding up everything minus our mortgage we owe something like 42K. 18K of that is our car which we bought last year. It was time for a safer car since we have two children now. We got a 15K loan from the bank to float us until my husband got a job and we have four (now three) credit cards with a balance about 9K total. So I made us a more detailed budget and decided that it was time to stop the frivolous spending (even though it was not all that crazy of stuff, We rarely by clothes or shoes, it’s just the necessities of life sometimes cost more than we have) because at the end of the day what do we really have to show for those things (besides debt)? Nothing really. Nothing that really holds value.
I changed my grocery budget from no budget at all toss it in the buggy. To $600 or less a month not including our raw milk which runs $60 a month for 8 gallons. Last week was my first week. I did not get any cash out to pay for my groceries because we live in the city and there are millions of people here and I don’t feel comfortable carrying my whole grocery budget around in my purse . I had a $40 gift card which I got when I bought a 5gal bucket of paint over 4th of July. With that my groceries were $86, I went to Aldi for bread because their gluten free bread is the closest to regular bread. Then I got a meal at Boston Market. Total for the weekend $120. Perfect! Right under my budget with $30 to spare. I was planning on going to Costco, but they close at 6 on Saturdays and It was already like 5:50. I ended up just buying everything at HEB. Which is a grocery store that is only in Texas and they are cheaper than Kroger. I did make a meal plan for the week which included a meal for each day. I already had my breakfast stuff like oatmeal and cereal at home so I did not have to buy that stuff. Overall I did well. Hopefully I can keep it up.
My goal is to have all debt, except for the car for now, paid off by June or July of next year. I really want to get my own car now that the boys are getting older. I want to be able to take them to preschool. I plan on choosing a preschool that I can work at as an assistant teacher to help with the tuition. I taught preschool for 5 years, and always planned to do it this way when I had children.
So for part 1 of my Dave Ramsey Challenge
I have paid off 1 credit card (which I was planning on paying off this month anyways) $2100 I’ve been saving up to pay this one off in a lump.
I have put $200 in my emergency fund, with a goal of getting to $1000 and eventually 10K
For next month I plan on paying off our Lowes card in a lump $1400
and putting another $400-800 in the savings depending on my tooth powder sales for next month.
Here’s to freedom!