Joining the group, my first month doing DR...
0-- Get current on bills DONE
(but only because I am lumping some new, but very large, medical bills in the snowball...)
1 -- $1,000 to start an Emergency Fund DONE
2 -- Pay off all debt using the Debt Snowball
3 -- Three to six months of expenses in savings
4 -- Invest 15 percent of household income into Roth IRAs and pre-tax retirement
5 -- College funding for children
6 -- Pay off home early 4.9 years into a 15yr/fixed!!
7 -- Build wealth and give! --- Invest in mutual funds and real estate
I sat down yesterday and totaled up our debt for the first time in forever. While the initial number (including the house and student loans) was SHOCKING, the actual credit card /medical debt really isn't that bad. I know DR puts student loans in the snowball, but I don't really see them as being horrible debt. I have an insanely low interest rate and I figure I will stress out about it after I get other things taken care of.
And in my continuing effort to grow up and be responsible - we have decided to use our tax returns & stimulus checks to pay off our debt. It will probably get rid of 85-90% of the snowball (excluding student loans) in one fell swoop. Which is smart, but I am still a little bummed out because that money had been slated to put in new floors which we really desperately need. We'll have to suffer with splinters a little longer, but we will have less bills keeping us awake at night.