We finally sat down and had THE Talk last night. It went well. As well as it could. We agreed, this relationship needs a third person. It felt good. You know ... it felt liberating, to be able to begin my sentences with, "Dave says .... ". I didn't feel guilty once. Not once. When my mind wandered from the sports talk, to what Dave had said today, I never felt guilty. Not even a little. It's all out in the open ... Ramsey is my man when it comes to getting our financial life back to where it was 6 years ago. We're letting Dave Ramsey in, and hiding Suze Orman in the closet (she still has a place).
Okay, okay, I'm being silly. But I am so excited that The Husband and I are finally on the same page. At least when it comes to working out the money. We sat down last night and went through the Cash Flow Budget. Needless to say, it was a bit of an eye-opener to The Husband. He wasn't really prepared for the credit card debt I still have from being in University in 2002. Then again I wasn't aware of the full amount of his Student Loan until after we married.
The past is the past and we have a starting point. All our debt out on the table, so to speak. We have signed up for The Total Money Makeover, have a budget to get us started. The system works on achieving Baby Steps. The baby steps are:
Step One: $1,000.00 to start Emergency Fund
Step Two: Pay off all debt using the Debt Snowball (Except the house)
Step Three: 3-6 months expenses in savings
Step Four: Invest 15% of household income in Roth IRA's and pre-tax retirement
Step Five: College Funding
Step Six: Pay off home early
Step Seven: Build Wealth & Give (Mutual Funds / Real Estate)
initial Emergency Fund, we are giving ourselves 30 days to do so. I'd love to know if you are following the Dave Ramsey method, and if so how did you go about saving the first $1000 (and how long did it take)? At the moment it seems impossible, but I guess that's why Dave makes it baby steps ...
We are also trying to think of ways to bring in an additional $750 a month, to throw on our debts in Baby Step Two. I'm opening up my last available slot for daycare, which would bring in an extra $400 (before taxes). Plus I have not even accounted for the extra $500 The Husband brings in each month from December to March. Or the $60 a month from tutoring.
Wish me luck ...