In Debt11:04 AM
The straw that broke the camels back came in July 2013. It was the day before the closing on our rental house. The title company called and told us we had to bring $5600 to closing. Who had that kind of money just laying around? Not us. Luckily the buyers had a paperwork issue and the closing was pushed back a couple of days. We scraped together the money, mostly with a loan from my 401K (which later I found out Dave said do no do!). At that moment I decided we needed some serious help.
- Your $1000 emergency fund
- Your debt snowball. Pay off the smallest debt first and then when that is paid off put that payment with the next smallest debt and so on until it's all paid off.
- Finish funding an emergency fund of 3-6 months of expenses.
- Maximize retirement funding.
- Save for college.
- Pay off the home mortgage.
- Build Wealth and give 10% of your income to charity.
I debated for a while on whether or not to write about this. Although I finally decided a while ago, it has taken me a couple of months to actually sit down to write this post. I figured that while sharing publicly about our debt struggles might be humiliating, it will also be energizing and we will be held accountable for updates to said struggles.