One baby step at a time.
Well, actually it's one bite at a time, but to conquer this debt, I'm taking one baby step at a time. These are the baby steps that Dave Ramsey proposes:
Baby Step One: $1000 Emergency fund
Baby Step Two: Debt Snowball
Baby Step Three: Saving 3-6 months of expenses
Baby Step Four: Invest 15% of income
Baby Step Five: Save a college fund for the children
Baby Step Six: Pay of home early
Baby Step Seven: Build wealth and give
I've complete Baby Step One. THANK GOD!!!! Now I"m doing my Debt Snowball. The only debt I have is my student loan, so I'll be rolling along...
Happy rolling!!
Posted by
I Hope
,
7:39 AM
I've never been good with money. It slips out of my hand faster than water can dry after I wash them. I wasn't taught about money and as a matter of fact I grew up poor....
My mom was a teen parent. Statistically teen parents live in poverty. We were a statistic. The money we had was food stamps. Not the plastic cards that they have now...the actual book of food stamps. I'm not sure how much my mom used to get in a month, but we used to load up on groceries once a month. When we did get money from my grandfather I wasn't one of those children who would save mine.. Nope, it was right to the store. So spending was my joy, not saving. When I was 18 I got my first job at Grandpa's. It was a local department store. I was a cashier. This was the summer before I went to college. I knew enough then that I needed some money to go to college so I had motivation to save. Yes, I spent money too, but I was going to be away from my family--mainly my grandparents who took care of me--and I wasn't going to have anyone to ask for money. So I saved. When I got to college, I immediately got a job--a dishwasher in the cafeteria. It was embarassing, but I needed money. Along with that job I got credit cards because we all know now that credit card companies prey on college students and YES, they got me.
My first bout with debt was in college. I can't remember how many credit cards I had, but I really drowing in debt. It wasn't a conscious decision back then, but right now I do not own a credit card and I probably never will again!
So my 20s were riddled with paying off those pesky sharks.
My junior year in college I got a letter in the mail.....
I didn't have enough financial aid to cover the cost of my college expenses. I was terrified, but the letter stated that I could talk to the financial aid people. So off to the office I went and the guy simply said, you can get a loan. I didn't know anything about student loans, but I knew that I NEEDED to finish college. If I didn't I would end up with more food stamps--which, btw, my mom sent me while I was in college because she didn't have money to send me. So I signed the dotted line to the tune of $17,000 for my junior and senior year.
I graduated and got a job, but I was in debt. Credit cards and student loans.
Then I bought a car.
I was so excited!!
Now that I look back on it I was so naive.
$30,000 in debt at age 23.
My plan was always to go to graduate school. But, I was in debt working as a teacher. So, without thinking I got another student loan. $35,000. I was still paying on my car loan and my credit cards, but I accumulated more debt.
Because I was drowing in so much debt and not managing my money correctly, I had several collection accounts.
Finally, I started thinking.....this debt is not a good thing, but I didn't know how to manage my money so I couldn't get out. I tried on my own to learn and I did a budget and talked to a credit counseling, but nothing was clicking. Now here I am years later taking financial peace university and it makes sense.
God has blessed me with a job making about $70,000 a year and because He has blessed me with this, I have to manage what He has given me. So off I go....
$53,000
That's how much money I owe the federal government for my degree. $17,000 for undergraduate and $35,000 for graduate school. It's not the exact amount, but I like round figures. And I'm going through the Financial Peace University to help me pay off this money. It is my only debt besides a doctors bill that I just got from when I broke my toe a few months ago.
And this is my blog that will chronicle my journey....
