Friday, February 16, 2018

Financial Preparedness: Week # 7


We're going to take a break for a couple of weeks on talking about how we're building up our emergency fund and instead talk about our over all financial preparedness plan.  (We're still working behind the scenes on developing secondary sources of income and building our emergency fund which I'll be telling you about in a future post.)

We have broken our financial preparedness plan down into 3 parts.

Building an emergency fund is the first area we’re working on; we’re also trying to pay as much on our debt as we can.   Recently we finished paying off a medical debt we’ve been chipping away at for several months.  It sure was nice to be able to write ‘paid in full’ on that last check when I mailed it off! 

Good news … we’re very close to getting another medical debt paid off too using the snowball methodI love it when I can ‘knock out’ a debt!!!

If part one of our financial preparedness plan is building an emergency fund and part 2 is paying off as much debt as possible as quickly as possible, what is part 3 of our plan?  I'll talk about that in next week's financial preparedness entry.  I'll give you a hint, it's something everyone can do!

What about you?  Does your financial preparedness plan include paying off debt?  Do you have a plan or are you just flying by the seat of your pants?

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patsi
A Working Pantry
She looketh well to the ways of her household … Proverbs 31:27


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8 comments:

  1. We are thankful and blessed to be debt free. We paid it at all off just like you are doing.

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  2. Great job on paying off the medical debts. We got into Dave Ramsey's plan 4 years ago. We paid off all of our debt except our mortgage and now have a 6 month emergency fund. We are currently working on getting our son(freshman in college) and daughter(junior in HS) through college without any debt. It has been hard and we all have sacrificed but it is so worth it. Good luck!

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  3. We just paid off our home and will be paying off a hospital bills today! Yay!

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  4. We are also debt free. My husband made sure everything including the mortgage was paid before he retired. We actually have money in our savings to cover about 11 months at our current living expenses and that is so great.

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  5. Hello Patsy and congratulations at paying off one medical debt and now working on the next as well, such a relief and I know how good that feels :).

    I will say here that we used to be in debt as my family ran up debts in my name of $70 000 that DH and I had to pay off. Yes we have alienated ourselves from my family because of this and haven't looked back financially and peace wise since. We also did it and paid it all off in 6 years by the snowball method and I recommend that method to anyone that is in debt. If we can do it on pensions so can everyone else and we offer our encouragement to others out there :).

    Our bed mattress gave up the ghost recently after around 10 - 12 years of good use and we had to purchase a new one. We took the cost of this and some pantry stocking expenditure out of the emergency fund so now we have to make up around $1400 back into that bank account to top it back up to the $2000 we like to have in reserve.

    Latest goal is to top the emergency fund up at $50 per fortnight until it is back up to it's normal level.

    Sewingcreations15.

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    1. Sewingcreations15, I'm so sorry that you and your DH had to go through that but I'm so glad it put you in a place to encourage others. Thank you, your post was most encouraging to me!

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  6. We live debt free and I would not have retired if I were not. So my reward was to retire at 62 instead of 65 and I am enjoying it. It is a good feeling to know that we planned for our future, sacrificed and worked together to achieve our goals. Many people who struggle financially do not work together as a couple or make goals. It is something that can strengthen a marriage and debt and overspending can pull it apart. It is not just about money, but peace of mind.

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    Replies
    1. Gloria, I so totally agree, it's not just about the money, it's about the peace of mind too!

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