Thursday, July 16, 2009
Back in the summer of 2007 B Daddy and I realized we needed to tighten up the way we handled our finances if we intended to own a ranch on a big piece of land in the middle of nowhere someday.
Around that time Dave Ramsey came to speak at our church about his process of "Baby Steps" for taking control of your money and your life. It made sense to us. Here's Dave's list and where our family is on this journey:
Baby Step #1 - Build up a $1000.00 emergency fund
Baby Step #2 - Eliminate debt, beginning with your smallest debts first
This took us 14 months - we paid off our second mortgage in this step.
Baby Step #3 - Build your emergency fund to 3-6 months of living expenses
We were able to finish this out around Christmas last year.
Baby Step #4 - Contribute 15% of your gross income to retirement accounts each year
We are here now and don't guess we'll ever "finish" this step. Boo.
Baby Step #5 - Contribute to college accounts for any children you have
We need to start one for Little E...
Baby Step #6 - Pay off your home mortgage early
Not there yet...
Baby Step #7 - Build wealth and give.
We are looking forward to getting here!
We have yet to have a fight about money in 4 years of marriage. And not because we always agree, but because we're on the same page...and to us, financial freedom looks a lot like this.