Step 1 - $1000 in Emergency Fund

You might think that paying off debt should be the first step, but that part comes later.  The reasoning behind this step is that most "emergencies" that pop up can be taken care of with $1,000 or less.  This eliminates the need to use credit for those unexpected expenses that pop up...such as car or home repairs.  Always replenish your emergency fund after dipping into it, no matter what step you are on.

Pre-Baby Steps

So...there is a little housekeeping to do before diving into Dave Ramsey's Baby Steps to Financial Success. 

• STOP using credit cards and draw the starting line.  
• Get all your bills current.
• It's time to put a budget in place and track where the money is going.  

I have over the years made budgets but have never really stuck with it or tracked our progress.  I've always just used common sense and have done fine.  The scary thing about using a budget is you start to see exactly where your money is going and it can be a bit of a shock.  It's a whole lot easier to continue on the current path when you don't know exactly how much you are spending on fast food or that Starbucks coffee over time.

There are many options for putting a budget together.  I am using Mint.com to set up a budget, set goals and to track my progress. 

Baby Steps

Baby Steps - that is how Dave Ramsey leads people to what he calls a Total Money Makeover. I'd like to believe I'm pretty good at managing finances (I am, after all, an Accountant by trade!) but realized I am lacking some focus and discipline.

Yes, I'm happy with what I have accomplished for my family but I want to build a better future for us. This blog is dedicated to that journey...I'll be posting these baby steps, our progress and great money-saving and wealth-building tips I find along the way.