We're on the Dave Ramsey Plan!
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$1,000 to start an Emergency Fund
Pay off all debt using the Debt Snowball
Three to six months of expenses in savings
Invest 15 percent of household income into Roth IRAs and pre-tax retirement
College funding for children
Pay off home early
Build wealth and give! Invest in mutual funds and real estate

 

Financial Status:

We have currently funded our starter emergency fund and have paid off 5 credit cards ($1,865 pay-off payment) plus our 2001 Pontiac Sunfire. We have 3 high balance credit cards yet to be paid off, plus a debt management fee.

Debt without house: $11,251 (was $18,583 7/2005)

Debt with house: $52,183

• We bought a used 1991 Dodge Caravan on a credit card for $3,000. We're still paying that credit card off and the van is now worth about $900 according to Kelley Blue Book.
• We funded two start up businesses on credit cards (a Shaklee business and a T-shirt drop ship business). We were stuck with unsold product in the end, and the credit cards have outlasted the businesses.
• We became "Secret Shoppers" for some extra cash, and one requirement was to sign up for a Sam's Club credit account. We no longer spy on Sam's Club, but we're still in debt to them! (Update: Sam's Club paid off 3/06)
• We financed a Dell PC for around $800 back in 2001. In Feb. 2006 we paid the credit line off. You can get a lot better computer for $800 these days!

(updated 3.16.06)

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