Save $500-$1000 for Unplanned Expenses

http://www.daveramsey.com/baby-steps/1

This is Step 1 of the Baby Steps in the Dave Ramsey Program

We are just starting this step over again and so I wanted to share it with you too. Like always something unplanned always comes up in expenses. Right now my husbands new car has spongy breaks and another dragging sound and he bought it this way I hope that it doesn't cost alot to fix but we don't have our emergency fund set up so we have to just hope it doesn't cost more than what extra we can afford this paycheck. It would be much better if we had $500 or $1000 saved for this kind of unplanned expense. He is saving with this new to us car he traded in his ford f250 truck for this ford taurus car and the saving is 1/2 the gas so $20 a week instead of $40 and our insurance went down from $60 a month to $30 so I think he made a smart choice. I'm considering trading in my Mitsubishi Sport SUV as it averages 15 mpg gas I know that I can get something better than that that's not an suv we do like the extra space or when we go camping but priority is to save that emergency fund of $500 we make more than $20k a year but this should give us a good cushion and then we can jump into step 2 which is the debt snowball. we already have $150 to start the snowball from my husband using our savings to pay off his truck payment which was $150 a month.

Here's a link to step 2: http://www.daveramsey.com/baby-steps/2

for this step you write all your debt down in order from least to greatest and you use any freed up money you can to start a debt snowball and you keep making the monthly minimum payments on all other debt accept for the least one until you get that one payed off and then you take that payment amount and add it to the 2nd debt so each one you pay off you take the total payment you were making and add to the next this increases your payments and decreases your debt. love it!

My husband is wanting to apply for a better paying job which really makes me nervous as he's been at his job for 8 years even before we knew each other but i understand as the starting pay is almost $4 more than where he's working but their's two catches they usually start newbies on night shift which he just got switched to days on his job now and we owe $3k in 2 401k loans that must be payed back before he could do that or they would be due immediately upon resignation. so i think we will be starting by paying those off first as him increasing his income is a priority.

I wish that I could help by getting a part time job but my oldest child will just be starting Kind. and my youngest want start pre-k until next year and that's only 3 hours. Sometimes my husband works 12 hours so that would leave only a few hours at most i could work a day and that's if my husband only gets 5 hours of sleep so yeah that doesn't work unless i could find something at home.....

hoping and praying! in Christ's love

Kim Fincher

More Resources:  Free Budgeting Tool           The Dave Ramsey Show
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