An update on Sallie & Perkins process? They are now a week and half cable-free and doing great. They also haven't set foot into a restaurant except for a Father's Day dinner celebration this past Sunday. They write down each penny they spend on gas and groceries and other than that? They aren't spending money!!
Now that they're in a place of just student loans, they have easily been able to start looking at the Dave Ramsey principles and apply them to their own debt situation. Again, you don't have to buy Dave's books or products (We didn't!) but his website alone gives tons of helpful information and can really put things into perspective for you. Getting out of debt is more simple than you think.... it's just about starting off in the right direction.
Dave basically breaks down his methods into 7 baby steps. Don't worry, Sallie & Perkins are only on Step 2 and will be here for awhile. Step 1 is just building an emergency fund of $1,000. Keep it in your separate savings account and don't touch it. It's only for emergencies. One pricey car repair and you'd be just about wiped out of that. Trust us, we know!
The point is, you'll have the money there and won't be tempted to max out a credit card whenever life throws you a curveball. Sallie and Perkins have been thrown curveballs in the past, but weren't financially prepared to handle them properly and they just didn't know why. They made decent money, it wasn't like they were living lavishly… so where was all that money going each month??? With helpful free tools out there like Mint.com, Sallie and Perkins were shocked to find out…
Those shoes that were "on clearance!" or that energy drink during a long day at work, or the temptation that is 2-day shipping via Amazon prime. Now that Sallie and Perkins were tracking their spending, they were able to easily put away $1,000 for their emergency fund and get a better look at their financial situation. It gave them the confidence to pay larger chunks of money on their debt because they now had their cushion to hit the curveballs of life.
Have you started your emergency fund yet? What small choices can you, or will you, make this week to save money and pay off debt? Be sure to stop in next week as Sallie and Perkins dive into Step 2!