Total Money Makeover

You may recall earlier that we started our Total Money Makeover after Christmas. This is a comprehensive plan that was published by Dave Ramsey that consists of seven "baby steps" to get out of debt and to build wealth  over time, having a plan for retirement. The first step is to save $1,000 for an emergency fund, you know, to cover those surprise car repairs (oil changes excluded, duh!) or maybe even a surpise visit to the doctor THREE times for stupid Bronchitis that even after three months, wouldn't go away (true story). No, it's not meant to be the the "oops, I forgot that my car registration is due" fund or "oops, I need to start planning for Christmas" fund, it is what it is. An EMERGENCY fund.

Anyway, we were almost complete with baby step number one in February when we filed our taxes. Guess what? We just happened to owe that much money to Uncle Sam and had to start all over. Distressing and that was, I began to understand and fully appreciate having an emergency fund. I knew that we would likely owe taxes because of Scott being unemployed for most of the year previously, I just didn't know how much. I really believe that it was through devine revelation that I was inspired to start this program and build up that savings account. Now here in June, we were well underway in getting our thousand dollars saved when Scott was inspired to have us look into refinancing. And when I say us, I really mean me because one, I am the one who has been charged with keeping our finances in order, bills paid, and checkbook balanced. Why? Because I've got skills, that's why! Secondly, I am also in a better position to handle processes that are involved in refi; my job hours are flexible and I can easily access all the necessary documents that are required for a refi. We locked in a great rate and saved about $230 a month on our mortgage premiums. What a savings! But you know what? Again, I believe that it was through divine revelation that we pursued this. You see, I also made my last car payment this month, freeing up another couple hundred of dollars. It just so happens that my student loan forebearance ends in August and I now have enough money to start paying back my loan (which has just been accruing interest all this time). Had we not refinanced and received those great savings, I don't know how I would have made up the difference in what my newly acquired car money didn't cover.

We did end up having to pay some closing costs up front, which we used our emergency fund to cover. I know that this may not typically be an emergency, but the money we saved in refinancing helped to make up for that. Plus, we are being refunded our escrow account from our previous lender and do not have to make our next mortgage payment until August 1st, so we'll have replenished our emegency fund and then some by then. Next, we will soon start baby step number two, the debt snowball. I'll explain more about that when we come to that bridge. Never, in a million years, would I be excited to pay my bills and balance my checkbook and review our budget!

Boys and girls, patience is a virtue and the rewards of being patient with your money and lifestyle will be worth it. In the words of Dave Ramsey, "If you will live like no one else, later can can live like no one else".