Our Plan

 I’ve got all my Financial Documents together and am now ready to get our plan underway.

1. Take all of our savings and investment account (excluding 401k) down to a $1000 cash emergency fund and a $1000 extra emergency fund.  I put my extra emergency into an Emigrant Direct savings account.  The savings account can easily be moved to the bank account for use.  The cash fund will be used for immediate emergencies and built back up quickly when used.  These will be used to fight Murphy and to pay off property tax at the end of the year.

2. With $2000 set aside the rest is put towards debt, starting smallest to largest from the debt snowball.  This helped us pay off Lowes, Chase, Furniture and Student Loan #1.

3. If we didn’t already have a few 0% credit cards then at this step I would have begun looking for some to transfer current cards to.  You want cards that have no transfer fee if possible.

4. Use our Spending Plan to spend every dollar on paper for the next month before actually spending it.  Some of the expenses we’re trying to plan for are Christmas, school supplies and drum lessons.  Make sure that each debt has the minimum payment applied.

This is exciting to finally feel in control and have a plan of attack to eliminate our debt.  I can’t wait to be in complete control of our money, have it work for us instead of us working for it.


5 Responses to Our Plan

  1. […] Our Plan on Two Cent Finance. Coming up with a plan is sometimes a daunting task. Here’s how Two cent Finance is approaching their debt. […]

  2. Good plan! From my limited experience, success with money is all about having a plan. A budget for me has been very empowering.

  3. TCF says:

    Thanks. It isn’t perfect and we’re making adjustments as we go. However since we started in June we’ve noticed a huge difference in our financial life. Having a plan, any plan is better than no plan.

  4. speedy says:

    I found I made absolutely NO progress on my finances until I put everything down on paper and started making a plan.

    Not only that, but I realized that I just had to start somewhere, and I could make changes later on if I needed to. Once I started planning, I also started looking for more ways to save money — by doing balance transfers, taking advantage of bonuses to open savings and checking accounts, by signing up for rewards programs, and by working a bit of overtime here and there to boost my income.

    I keep a spreadsheet to plan debt repayments and savings goals, and I am surprised at how much I can gain by making small changes in spending and applying the savings to a debt or a savings goal.

  5. TCF says:

    Speedy, I completely agree with everything you said. I haven’t put my goals up yet but plan to in the future. Something very small can really change your debt repayment and feels great when it happens.

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