We can't follow Dave Ramsey's plan the way it was meant to be followed because we have a lot of variable income. We have, however, been following his progression of which bills to pay off first. Since about the beginning of last year, we've cut our expense by $1,105 per month.
We're going to be upgrading my car, & this will actually REDUCE our car payment by at least $80 per month because we're going from an interest rate of 16.25 to 5.75. Then we're selling my current car ourselves, & since it's worth much more than we owe, we expect to have an extra $2,200 over the loan pay-off. We'll use some of this to pay off 2 more bills for another $150 a month in savings. The rest will go into our savings to increase that to $,1500. So in less than 1 1/2 years, we will have reduced our bills by $1,335 (or more) & increased our savings, too. And the real shocker: I quit my job to run an eBay business at home! Not too shabby, huh?
Donna (Upstate NY)
"Even monkeys fall out of trees."
"Suffering is the tuition one pays for a character degree."
"Accept your diagnosis, but never your prognosis." home.roadrunner.com/~andydonna
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