I did want to give a more verbal update that wasn’t just numbers like our progress reports. We did hit our latest goal and things are progressing as planned. Which is thrilling and helps give us the endurance we need to continue. We’ve even experienced numerous miscellaneous expenses where I was pleased to be able to pay “cash” on every occasion. It may sound silly, but my favorite part about our current system is that we anticipate all of the things throughout the year that we may need money for and it’s already factored into our budget. I’m huge on wanting to feel financially secure (obviously). You can have all the money in the world, but if you don’t know how to save for a rainy day, you will still end up poor.
There is definately a sliding scale and whether you make twice as much as we do or half as much, if you don’t allow margin, the end result is the same. So, I can’t harp enough on planning for those unexpected expenses. Please refer to our this post and this post to see how we do that.
What We’ve Changed Up Since We Started 6 Months Ago:
We did shift gears a little. Before we were strictly doing the snowball method as far as how we choose the order of what we were paying off. I picked that method initially because I knew it would help Stephen get on board by experiencing the instant gratification of progress. For those who don’t know, the snowball method is just paying your smallest debts off first.
As we gained momentum, we both felt like things were working well enough that we could up the ante by swapping to the avalanche method. That means knocking out the debts with the highest interest rates first to save us money in the end. I’ve actually really loved experiencing the personal growth that has come from learning to be better stewards with our money.
I’ve also taken a pretty heavy interest in the stock market and I’ve been studying, learning and trading stocks for the last few months with an Etrade account. I’m no guru, (not even close) but it has become somewhat of a hobby for me and I really enjoy it. I don’t have plans of talking much about about the stock market on this blog. Although, I would like to discuss ways to invest, I’m going to leave the in depth stuff to the experts. I really only bring it to show how simply taking an interest in personal finance has broadened my horizons. [As an aside, I don’t recommend trading stocks if you have no idea what you’re doing. Please read up first.] However, I do highly encourage everyone, no matter your age, to start educating yourself on all areas of personal finance because nothing will be more beneficial than knowing how to manage your money and plan for your future.
That’s all I’ve got for now. Feel free to contact me if you have any questions! 🙂