Baby Steps/Testimony

For those who are unfamiliar, there's a concept called Baby Steps that you follow when you're doing the Total Money Makeover (TMM) by Dave Ramsey. I'm not going to go into all the details of the plan, I highly recommend that you get the book or go to his site (see my links) for more details.



Anyway, like a good blogger, let me update you on where my husband and I are on the baby steps and give you an overview of each step:



Pre-Baby Step: Get current with all debts

Baby Step #1: Create an emergency fund of $1,000 in the bank (Murphy's Law Repellent...lol)

Baby Step #2: Get out of debt

Baby Step #3: Create a fully funded emergency fund of 3-6 months of expenses

Baby Step #4: Save for retirement

Baby Step #5: Save for college

Baby Step #6: Pay off the mortgage

Baby Step #7: Build Wealth & Pay it forward



So we are on Baby step #1.



Testimony:

We were at step 2 and had an emergency with our car, which we were able to take care of because we have the emergency fund (EF). The price to fix our car should have used a majority of our EF but the price was reduced TWICE between the original quote and when we paid for the repairs. Plus, we received more service on the car than we thought we needed. Did you hear that? We received more for less. God is in the blessing business when we keep is house in order.



I'll admit, it wasn't easy spending the money we worked SO hard to save, but it was worth it to have the peace of mind that all of our other bills would still be paid with no worries. The blessings of the Lord makes one rich. And he adds no sorrow with it. Proverbs 10:22.


So we are gladly saving again for our EF.