Baby Step 1 - DONE

We have $1,000 in savings. Happy Dance!!!!!

We are no longer past due on any bills. Big time Happy Dance - Electric Slide -- Tango -- YeeHaw, slap your thighs Dance!!!!

In this Money Makeover plan thingy we are trying -- again common sense - duh. Before you start paying off the debt with a passion you need to have an Emergency Fund AKA Baby Step 1, just in case you need some money to pay for something. The Emergency Fund is $1,000. It is saved -- here's other things we are budgeting for savings --

• A gifting fund - $65 a month going to savings
• - for Christmas and Birthdays
• A House fund - - $20 a week to savings
• - for household repairs, paint, furniture savings, lightbulbs, etc...
• Insurance -- $50.00 a month going to savings
• - we pay this quarterly - now it will be equally distributed instead of one big chunk

By the way -- we did get the bunkbed, and F**** is thrilled, and D***** is sleeping soundly on the futon portion. We have our bed back. Another happy wiggle.We are fine-tuning the budget and trying the envelope system.

Again -- Discipline -- and tightening the belt. Here's what is going to be the hard part...

"When it's gone, it's gone. Once you've spent all the money in a given envelope, you're done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can't spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!"

So WHY? Why am I subjecting our family to this rigorous get into financial shape routine.

• J**** is working and we need to use that money to trim down the debt and get ourselves in good shape. Many doubt him, and say "He won't keep this job for long, I give him a month and he'll quit." Well, I don't believe he will quit. I have reminded them, that this job is with a temporary service, so it may not turn out to be a career, but he has been trying to impress so that they will hire him full time. Because it is with a temp. service we are trying to get as far out of debt while we can.
• We are tired of living paycheck to paycheck and being slaves to interest rates and loan companies.
• We want to teach our children how to manage their money and how to live on the money that they make.
• We want to be good stewards of what the Lord has given to us.