Still On Track

We are still on track with the plan I came up with at the beginning of the year. With that being said, we've paid off my car and are about to pay off another card by next week. It's awesome seeing these things dropping at an increased pace :).

The biggest thing that will get you on track and keep you on track is setting a budget. I know it's something that everyone says, but it seems like no one actually does it. We've split it into two types: recurring bills and snowball budget.

We start by taking all of our recurring monthly bills and have those subtracted off the top of any income we get for that month. This also includes taking money out for fun stuff (eating out, going to the movies, etc). After that is accounted for, we work on the "snowball budget". This budget is made up of extra money that doesn't have a home. If there isn't anything extra we need that month, then it all gets divided between various debts to knock them down/out. Just last month, there was some landscaping work I wanted to do, so that money came out of this extra slush fund. Sure, it slowed down my snowball, but we made the improvements with cash, and still payed extra on debt.

Making the time to sit down and work this out is super important, and it keeps both you and your spouse on the same page (and eliminates any arguments as well.. bonus). We are currently in the process of becoming foster parents as well, and planning out all of the expenses that go along with that has made climbing this mountain very achievable.

Speaking of fostering, we originally wanted to adopt but found the process way to expensive -- absurdly so (I mean, the kids need help. Why make it hard?). We found that by fostering to adopt, we can help kids in need AND have the option of adopting the ones that have been permanently separated from their parents by the state. The best part is the State basically pays for the adoption -- so it's a win-win for the foster kids AND us :).

The moral of the story is if you want your financial life organized, YOU have to be organized. Tell your money where to go -- don't wonder where it went at the end of the month. By doing so, you will be able to accomplish some pretty awesome things.

Slow and Steady

It has been five months since my last post, and I have learned something in this time -- getting out of debt is a process. It is something you have to be patient with because you will be much better off in the end.

While slow, the last few months have been very fruitful. I was blessed with getting a new job that along with a significant pay increase allows me to work from home 100% of the time, letting me help out if the kids are sick. The new job has also freed Terra up to do volunteer work at a local charity that helps families that are struggling (just like we were a few years ago). Sure, she doesn't have an income to help us get out of debt faster, but she's playing a key role in helping families getting back on their feet, and that is much more important than shortening our timetable slightly :).

Doing our cash-only Christmas this year slowed the snowball down, but it is always nice starting the new year off w/o any extra debt :). Now that the new year has started, I've kicked things into high gear again. I'm about $800 away from paying my car off (which makes it really tempting to just take all the money I can one month and pay it off). So, in a few months, I'll have two paid for cars and lots of $$ back in my pocket -- all to knock out the next debt which is sitting around $2800. By year's end, I should have this one and possibly the next one paid off, freeing up an additional $500 or so in cash flow. I have to say, it feels good getting traction on this stuff :). Just keep at it, and you'll hit your goals.