Originally Posted by mom2dea
I can not wait to see how everyone does . Anyone have estimated goals on things like debts payoff , emergency fund , and the like ?
We have very specific goals and have met several of them in 2007. Our EF is fully funded at $1K, but we also have a MM account that is kept at $3K to cover insurance deductibles and other "non-emergency" emergencies. Right now we are down to only $2.5K because of car repairs and insurance payments but building it up is the first thing we do before we go back to debt repayment.
Dave's $1K EF is a great place to start and it felt so good to reach that goal, but for us it was not enough. Over the last 3 years I have had to shell out over $3K a year in home repairs/car repairs and that is why we set aside such a large amount. It happened again this year and if we hadn't set our sights so high, we'd have been back on the credit cards. We've been cash only since last year for everything.
Our other 2007 goals were to pay off DH's Jeep which we did. Pay cash for our July wedding which we did. Pay off the credit cards - we've got one down and 4 to go.
Right now we are working hard to pay off my car. It is our largest out of pocket monthly expense next to the house and having it paid off will put us in great shape for when the baby comes. There is about $4K left on that and we want it done ASAP. After that it is hitting the credit cards one at a time - one is within easy reach, the others aren't. And then building up a 3-6 month reserve. Going to be a long time coming for all that on only my income though, but we have faith that we'll make it.
I encourage anyone who hasn't read TMM to do so because it is very motivating and makes a lot of sense. I don't like the FPU stuff because it seems to preachy, but I do like TMM. I even gave my 63 year old spendthrift father a copy and he is now working on reducing his debt also. (Go Dad!)
We don't follow Dave to the letter, but even if you just put a few of his pricipals to work (The EF especially) you will be so much more in control of your money. The most important thing is to know what your debt/income/spending habits are and to make a plan.