Since my last post, I've finished planning a wedding, married my best friend, had a fabulous honeymoon and have jumped back on full speed with FPU. If you recall, when we got engaged back in March of last year, we decided to stop our debt snowball and save for the wedding/honeymoon in order to not add any additional debt during that process.
HAPPY ANNIVERSARY!!
We have made it past our ONE YEAR anniversary with Financial Peace. We started this journey on January 18, 2011 and I can't stress enough just how much this process has changed our life! Not only financially, but even by strengthening our relationship and now marriage <3
To recap our first year in FPU: We've saved $1,000 for our Emergency fund, paid off a total of $14,745 of our debt, and paid for ALL of our honeymoon and our portion of the wedding in cash. If that doesn't speak volumes for this method working, I don't know what does! We are setting our sights on the future and continuing to work through our goals of being debt free!! FREEDOM!
Here are some things we learned over this last year:
--Not everyone will understand why you are doing what you are doing. They will tease at time and want to argue and tell you why you are crazy at time...this means you're doing something right!
--Not everything is black and white. Take the course and the Total Money Makeover book as a great foundation and guide, but don't feel afraid to use your own judgment and make choices you feel are best for your family. YOU and ONLY you can decide what is best based on the information you have and research you've done.
So with that, here's our summary---Year ONE update and January 2012 Update
7 Baby Steps:
Baby Step #2 - Pay off all debt using the Debt Snowball
Baby Step #3 - 3 to 6 months of expenses in savings
Baby Step #4 - Invest 15% of household income into Roth IRAs and pre-tax retirement
Baby Step #5 - College funding for children
Baby Step #6 - Pay off home early
Baby Step #7 - Build wealth and give!
Baby Step #2
OUR DEBT
Name of Card (Beginning Balance) (Current Balance)
Chase CC: ($1,314) --- ($788)
Wells Fargo CC: ($1,469) --- ($1,298)
Papa: ($2,250) --- ($2,100)
JCPenney CC: ($2,523) --- ($1,813)
1st Financial CC: ($9,697) --- ($9,305)
Kevin's Truck: ($7,196) --- ($5,154)
Tia's Car: ($14,200) --- ($10,064)
Tia's Student Loan #1: ($1,341) --- ($954)
Kevin's Student Loan #1: ($1,448) --- ($1,448)
Kevin's Student Loan #2: ($12,274) --- ($12,274)
Tia's Student Loan #2: ($17,060) --- ($15,223)
TOTAL DEBT: ($75,166) --- ($60,421) = Total Paid Off: $14,745 (SERIOUSLY Y'ALL!!!)
Have a great week you guys!! We have an aunt and uncle just starting their own Total Money Makeover and we couldn't be more excited for them! I URGE you to sign up, it's super easy to find a class being offered through Dave's site, or to even start without the classes!
Great post!! You guys are doing so awesome!!
ReplyDeleteMy husband is a bit skeptical. I however have been listening to Dave for years. How do I get my husband on board! ?
ReplyDeleteCami,
DeleteI think it's wonderful that you have been listening to Dave and are already on board for FPU. I can imagine the frustration when you are feeling a certain way and your husband is having a rough time. My advice to you is to whole-heartedly talk with your husband about how you are feeling, maybe encourage him to read Total Money Makeover or even sign up for a class. Most classes will even offer a "bring a friend" night so others can see what it's like.
I found this article on Dave's website, this may be helpful in guiding you as well:
http://www.daveramsey.com/article/when-only-one-wants-to-change/lifeandmoney_relationshipsandmoney/
"Those convinced against their will are of the same opinion still." - We've gone through this time and time again with our own family members and it's so true. They have to decide this on their own, but hopefully my advice and the advice in Dave's article will help you out!
Good luck and I hope you two can start your journey toward Financial Peace and Freedom soon!!
Cami,
ReplyDeleteTo follow up on Tia's comment, I have to admit I was a little hesitant too. Not hesitant in that I didnt think the system works, just hesitant on making such a huge change.
The main thing is, I think, whether you are having actual financial problems, or just wanting to get rid of debt and save some cash, understanding and agreeing that you actually want to make that change.
After I read The Total Money Makeover book, it literally transformed my thinking. Ask Tia, that day I finished the book, I went straight to her and said "Let's sell everything! Donate Blood, do whatever we can do get some extra cash!" It was as if someone had flipped a switch. And ever since then, we have both been on the same page and very committed to helping our financial situation. Hope this helps!