Back in November 2016 my wife and I started a journey to better our future. Like many other Americans we buried ourselves in debt. Much of our pay was going right out the door to payments for stuff we couldn’t even remember purchasing. So in our frustration and on the recommendation of a friend we looked for a better way. We found Dave Ramsey, and began following his financial advice.
So here we are 3 months later and one month into Dave’s baby step 2. Let me lay this out, Dave’s plan has 7 baby steps. Step 1 – get a $1,000 emergency fund saved. Step 2 – the debt snowball. Here is how it works, first you list out all your debts from smallest to largest, ignore the interest rates. You begin throwing all the money you can at that first debt while paying minimum payments on the rest, then once it’s paid off you apply that payment to the next debt. This way the amount you are paying builds over time like a snowball and you are able to pay off your debts faster and faster. To increase your ability to pay off your debt you must budget! This helps you assign every dollar to a place and lets you see what more you can use to attack your debt. We spent almost 15 years with no real plan for our future and now we have that plan and a future. The image I’ve associated with this post is our visual representation of our debt. Each marble has a monetary value. As we pay off our debts we remove marbles. Within 2 years we plan to be completely debt free. I’d like to set my family tree up for financial success in the future.
This process has allowed me to step back and take a longer look at my life and future. It’s motivated me to improve myself both physically and mentally. Hockey has been a passion of mine for the last 2 years. Trying to skate as much as I can while also doing a lot of business travel has been challenging. I’d love to be able to slow things down and play on a regular team in a league. But that is not in the foreseeable future. But once I’m debt free I’ll have more funds and maybe even time to dedicate to that passion.