Last week we completed the 3rd step in becoming debt free: determining how much income we have and making sure our tax witholdings are accurate. We’re still holding too much out, so we’ll have a little bit extra money to apply to the mortgages each month! This was also the first step in creating a budget, I just didn’t want to scare my hubby off with the B word Creating a budget doesn’t necessarily mean micromanaging our money. We just need to know how much we have to spend, where it’s been spent in the past and make a plan for where it will go in the future!
Amazon Code part 1: YLBX claimed!
To sum it all up:
Step 1 – We figured out exactly how much debt we had, the interest rates and how much it was going to cost us to hold onto that debt.
Step 2 – We built an emergency fund of at least 1 month’s expenses.
Step 3 – We looked at how much income we have and made sure our tax withholding is still correct. (Step 1 of budgeting)
Step 4 – Now we have to determine where our money is going. (step 2 of budgeting) We’ll be looking at the last 12 months of records.
Check back this afternoon for a reader submitted debt story and check back next Thursday for our next step in budgeting (this will take a few weeks!)
You can read Natalie’s story from last week as well.
If you’d like to submit your getting out of debt story, you can e-mail it to me. If you have a website, feel free to share it in your bio
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