So as I said in my last post, we've been on Baby Step 2 since the end of March. Baby Step 2 is to pay off all debt (except the house) using the Debt Snowball. The snowball is basically you paying minimum payments on all your debts but the smallest, and then putting any extra money you can find on that smallest debt until it's gone. Then when it's gone, you take what you were paying on the smallest and put it toward the next smallest and- you get the picture.
Thankfully, we had never had much stomach for mass amounts of debt, so we only had one item in our snowball. We had just bought a car in January. Or should I say we had just FINANCED a car in January, which we plan on owning very soon. So in the last 4 months we have paid off over $5,000 on that car. To say I'm excited would be an understatement. We are well on our way to turning a 5 year loan into 1 year. I will NEVER finance another car. EVER. Toldja we want to be weird.
The thing that is so great is that we really haven't felt it. I mean, we aren't eating beans and rice to make this happen, although if we had had more debt, I'm sure that's exactly what we would be eating. The thing that's made it work is getting a plan- a written budget. I'm not going to go into the whole budgeting thing in depth, I'll just say read the book.
More on our quest for weirdness later. ;-)
So the DOW lost 311 points yesterday and 208 at the close today. And everybody's in a tizzy over it. I don't get it. Did we not just hit a record high of 14K??? Get a grip people. Go see your broker, buy something and have a good weekend.
I leave you with a passage of scripture. It explains the name of this blog and gives insight to what the Bible has to say about debt. (Note: Surety is a Bible term for debt.)
Proverbs 61 My son, if you become surety for your friend,
If you have shaken hands in pledge for a stranger,
2 You are snared by the words of your mouth;
You are taken by the words of your mouth.
3 So do this, my son, and deliver yourself;
For you have come into the hand of your friend:
Go and humble yourself;
Plead with your friend.
4 Give no sleep to your eyes, Nor slumber to your eyelids.
5 Deliver yourself like a gazelle from the hand of the hunter, And like a bird from the hand of the fowler.