Saturday, February 2, 2013

Baby Steps Revised

Not sure if you've noticed but I'm trying to follow the Dave Ramsey plan much closer this year. I've finally made baby step one a priority and am working on that $1000 emergency fund ($180 away). I'm finally using cash for all of my purchases. I'm planning to work the debt snowball from the smallest balance card upwards. It took a few years but I'm coming to terms with the fact that his plan does work really, really well. So here is where I insert an exception. After the EF is fully funded, and after I pay off the smallest card ($600 balance right now), I'm throwing in my own step, baby step 2.5: the husband cushion.

I want to have $500 in savings, apart from the emergency fund which is dedicated to emergencies. Since my husband is not on board with the debt pay off thingy I want to have spending money set aside so that I'm not having to play the bad guy and say no all the time. If I put $500 away for a hubby cushion I think it will be much easier for me to stick to budget, to follow the baby steps, and to not loose momentum. And when he comes to me and says I really, really, REALLY want to go to Bonnaroo this year with those cute puppy dog eyes I don't have to do the whole, "where do you think that money is coming from" thing.

I entered in all the tax info yesterday and we're not getting a ton back but I'm hopeful that I can put $500 of the tax refund away for baby step 2.5: hubby cushion. And we've never had to pay in extra on the taxes. I should be thankful for that. My mom always has to pay in.

1) $1000 emergency fund
2) Debt snowball littlest card
2.5) $500 in savings for spending

Hey, I've got a plan and it's only February. Now back to cleaning the house and watching baby Abe attempting to walk. Ahhh, he's getting so big!


  1. Sounds like a good plan!
    And it IS only February :)

  2. Wow, you've got this sewn up! You're doing fantastically well.. I think the hubby cushion is a great idea... Well done you!

  3. I agree, you have to do what works for you. Our anniversary is in March and the hubby also has spring break from school, so we like to do something special. I am putting any extra money that he earns from extra shifts and petsitting towards our celebration.