Hey y’all! So it’s been a couple of months since I posted! The Spring semester is in full swing and the coldest months of the season are FINALLY behind us! Thaaaaaank goodness. I am not a fan of the cold and I’m relishing in the fact that once I’m a nurse, I can work anywhere I want to. Currently, I’m working full time for a medical staffing agency and taking 11 hours this semester: Anatomy, Chemistry, and Nutrition. I have 6 classes and an entrance exam to take before I can get into nursing school and I’m taking three of those classes now. This semester has brought a few changes but I’m doing pretty well adjusting to them and I’m super excited!
I’ve also started Dave Ramsey’s Debt Snowball Plan and am on my way to realizing my dream of graduating 100% debt free! Woohoo! If you have debt and are broke and “normal” like me, I highly suggest you check out Dave Ramsey’s YouTube channel. He also has audio podcasts from his radio show and I listen to them anytime I’m in the car. I’m officially OLD, I know. Ha! I’m going to start posting my monthly totals on my DR journey on this blog. At this point, I don’t think many people read it, but it will still be fun to look back and have a record of everything! If you’ve read this far and don’t know who Dave Ramsey is, he’s created an extremely successful program for helping people get out of debt known as “The 7 Baby Steps.” I’m currently halfway funded on Baby Step #1 which is getting $1,000 in an emergency fund. The next step is Baby Step #2 which is getting out of debt except for the house(I don’t own one yet). A lot of people disagree with Dave’s $1,000 emergency fund number. He’s never explicitly stated this, but I believe his reasoning behind it is that you’ll get intense with your debt payoff if you have less in that STARTER emergency fund. For some, like me, it’s a step toward no longer living without an emergency fund at all. I never have money in the bank which is why I currently owe my mom $700! My car broke down and it was critical that I get it fixed and I didn’t have the money. If I had had a $1,000 emergency fund in place, I would have never needed to borrow the money from my mom in the first place. MOST emergencies can be covered for under $1,000. I’ve contemplated keeping more in that fund but I’m not sure. Technically, that’s what Baby Step #3 is for which is a Fully Funded Emergency Fund of 3-6 months of expenses. For me, I’d like to base it on my income which would be roughly $7,500-$15,000. Since we’re talking about Baby Step #3, I’ll go ahead and give a brief overview of the rest! Baby Steps #4, #5, and #6 are done consecutively and they are as follows: Contribute 15% of your income to Retirement(preferably in a Roth IRA), save for your kid’s college funds, and pay off your house! Since I don’t have kids or a house, I get to skip those(for now). Baby Step #7 is build wealth and become extremely generous!
So here’s my personal breakdown of the Baby Steps for March 2018! :)
Baby Step #1: Starter Emergency Fund
$511 of $1,000
Goal Date: April 2018
Baby Step #2: Pay off Debt
- Gym(Collections): $280
- Hospital(Collections): $700
- Mom: $700
- Student Loan #1: $1,100 ($50)
- Student Loan #2: $2,760 ($30)
- Car Loan: $8,760 (~$200*)
Goal Date: April 2020
*I pay my car loan bi-weekly so most months I pay $182 but there are a couple months where I pay $273. It depends on where paydays fall in the month.
TOTAL DEBT: $14,320
Baby Step #3: Fully Funded Emergency Fund
$0 of $7,500-$15,000
Goal Date: January 2021
Baby Step #4: Save for Retirement
Save 15% of income in Roth IRA
Goal Date: Ongoing
Baby Step #5: Fund Kid’s College Fund
I currently don’t have any kids, and if I still don’t by the time I reach this point, I’d like to talk to my sister about contributing to my niece and nephew’s college funds. :)
Goal Date: Unknown
Baby Step #6: Pay off Mortgage
I currently don’t have one, but I would SAVE for a down payment in Baby Step #3B
Goal Date: Unknown
Baby Step #7: Build Wealth and GIVE
This one, I can’t really put a dollar amount on, but I’m excited to be in this place one day. I’ll be a nurse once I get to this point and my income will be a lot higher which will help a lot. If you know me, you know that I LOVE giving gifts.
Goal Date: Always until I see Jesus!
My goal is to be totally debt free in 24 months while cash flowing my nursing education. I have about three years left on my Associate’s degree but I might go straight for my Bachelor’s. I haven’t decided yet. I like the school I’m at which is why I haven’t committed to transferring.
I know that was super long but if you stuck with me through that, thank you!
Until next time!
Taylor
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