War on Debt | Introducing ‘Operation: Save’

Did you think the War on Debt was over since we paid off the last credit card in February?

Sadly, you would be wrong.  We still have quite a bit of debt hanging over our heads.  More than what the credit cards were, actually.  Because I went to college for 3+ years on Uncle Sam’s buck and then there was that car we had to buy last year.  Combined, it’s over $23,000 in debt.  Ouch.

And while I’m all, “Bring it on, Debtors!” and motivated to continue on by our successes thus far, I know that if we want to keep ourselves from acquiring NEW debt, we have to take a break from the war and fight a different battle, called ‘Operation: Save.’

Yes, I know this isn’t how Dave Ramsey does it…  But I’m inclined to believe that perhaps I am better equipped to make financial decisions for my family.  (Although he has made millions selling his “cookie cutter” financial strategy.  I guess that counts for something.)

After much deliberation, Matt and I have decided to start saving an Emergency Fund.  Or more precisely an Imminent Demise Fund.  Because in the near future, it is a very real possibility that we will need to replace a car and a roof.  Neither of which are small purchases.

So to avoid the risk of having to finance either of these expenses, we have decided that we want to build a fund for the likely event that these items will go kaput.  The goal is to be fully funded at $7000.  That amount should cover one or the other.  But not both.  So I better not be jinxing ourselves by declaring this information and then next week the roof will leak and the car won’t start.

Last month we were able to save about $500.  And I feel like that will be a pretty average amount with our current budget.  That means we are looking at 14 months to save the entire amount.  That sounds like a long time to my impatient self, but our budget is already pretty bare bones so unless our income increases, it is what it is.  And I know that we are fortunate to have that kind of surplus in the first place.

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