Baby Step 3 Progress

It’s been a while since I’ve had any baby step updates. We have finally some decent progress to report.

Quick summary – In October we finished paying off debt (baby step 2).

We started our 6 month emergency fund, with a “50% of the way there” starting point.

In February, we reported we were at 53% of our goal.

Since that time, we are excited to report we are now at 65%!  After a slow period, we were able to increase 12% since February. We credit this to a huge shift in some of our expenses.  We were finally able to get our medical insurance figured out, so that decreased our monthly bills. We were also able to make some adjustments to our cellphone and electricity bills. The positive double whammie of lowering these bills is that 1. we have more money to go to the emergency fund each month and 2. our monthly expenses are lower than the total “6 months of expenses” emergency fund goal is lower.

Another important item to note is that we recently purchased a new (to us) vehicle.  And we stuck to our budget and paid cash!!!! 😀  So… we are now the owners of a nice, 2007 Honda Odyssey. It did mean that we had to use $9,300 that WOULD have gone toward the emergency fund. Obviously, that’s a decent chunk of change that would have increased our percentage saved, but we wanted to purchase a vehicle that would best meet our needs. And more importantly, have ZERO monthly payments.  My old jetta was getting up there in years and miles and VW’s are known for having expensive repairs. We hope to increase the size of our family in the next handful of years, which will also make the jetta obsolete. So we said good-bye, traded it in, and came home with a minivan.

Since October, it has been slower than we expected to make progress on Baby Step 3. However, we think we are in a good place.  With lower expenses, and one huge looming expense (the vehicle situation) already taken care of, we are set up well to make some large strides. Stay tuned…

 

 

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Filed under budget, car, emergency fund

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