Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.Dave Ramsey
Over the last month I mentioned where I was at in my financial life; where I needed help, where I was not being healthy, where I was trying to improve.
One emergency came up, just as I had freed up around $700 a month for groceries and gasoline for the vehicle, our air conditioner and furnace went out. It gets to be well over 100 degrees where I live, so this was not optional. The final bill was $8,200 and I do not have this kind of money in my savings.
I decided to do a 18 month no interest loan and try to get it paid off with my bonus in March. I just got the first bill for the monthly payment and it came to $300, so I now only have $400 a month for food and gasoline.
I purchased a great deal of food storage over the last few months for emergency preparedness, so I think if we budget well we can pull this off. We really do not drive much, so that is not a big deal, the bigger deal is eating out, which we will have to stop. I have learned to smoke food on our Pit Barrel and that is much more fun anyway!
We do have a vacation planned and it is all paid for with the exception of Gasoline, food, and souvenirs etc. I put away $500 for this trip so that will have to be enough for the week.
Finally, I have $1,000 in an emergency fund, $1500 in savings, and $350 rebate from the A/C coming to me in a month or so. There is also around $2,000 in a health savings account for any medical needs.
Not in the best shape, but better than we have been in a long time and if we budget it correctly, we should be able to avoid any Credit Card mess like we got into before. This is really the ultimate goal, is just to not borrow anymore, so we can at least make a dent in our debt, rather than add to it.