Friday, June 12, 2009

Baby Step 3 Update

It's been awhile since I've provided an update on our Total Money Makeover goals. We are currently on Baby Step 3 (building an emergency fund representing 3 - 6 months of expenses). To date, we are over halfway to our target number and should reach our savings goal by the end of July! BUT with storm clouds on the horizon surrounding Dave's job, we might find ourselves in budget crisis mode. I would like to reach our goal before anything happens, but am thankful for what we have set aside already. It certainly puts us in a much better situation than we would have been pre-Dave Ramsey, when a job loss would have most certainly sent us into credit card debt.

One of the challenges we are facing in Baby Step 3 is maintaining the focus on our larger goals. We've become a bit relaxed in our spending in some areas, particularly eating out. It has left me wondering if we (mainly I) would have the discipline necessary to get us through any impending rough patch. It's easy to say I would cut back on affordable luxuries, but could I really do it? Would I be able to rise to the occasion with a spirit of frugality and resourcefulness?


Money Saving Mom - Monthly Financial Check Up

5 comments:

Janet said...

I assure you that you would rise to the occassion if need be. We hadn't reached all of our financial goals when my husband lost his job last fall but we were able to transition into emergency mode quite easily. We became much more resourceful and it has helped us manage our money better after the fact.

Less is More said...

I think the certainty of a job loss was easier for us than the roller coaster ride of will it happen or won't it happen. Even if it does happen to you, you will survive because you have a plan. We switched over into emergency mode like Janet mentioned much more quickly than I thought.

Wendy P said...

I'm sure you'd handle the transition beautifully (hopefully you won't have to though).

Suzanne said...

You would definitely rise to the occassion. You're already "weird", right? :) The previous commenter is right, the actual job loss is easier than the fear about it. We went through one in 07, when we were in the middle of paying off our dd's hospital bill. You would automatically go into surival mode and cutting things would not be hard. You will survive!! And, like Janet mentioned above, you will be a much better money manager afterwards! I really think our job loss has helped us financially more than it hurt us (at least now; it didn't feel that way for a long time!)

Still Learning said...

You could so do it!! You are already a very frugal lady. Plus, you have the time knowing that it may happen to make a plan. When it happened to us it was out of the blue and we had hardly any savings. You can do it!! Let's just pray you don't have to.