Dumping Debt: The 7 Baby Steps

Real quick, I thought I'd share the 7 Baby Steps for your Total Money Makeover:

Baby Step 1: $1000 to start an Emergency Fund

Baby Step 2: Pay off all Debt, using the debt snowball

Baby Step 3: 3 to 6 months of expenses in savings

Baby Step 4: Invest 15% of household income into Roth IRAs and pre-tax retirement

Baby Step 5: College funding for Children

Baby Step 6: Pay off home early

Baby Step 7: Build wealth and give!

We're in baby step 2, paying off our debt. Here is a little description from Dave Ramsey's website about using the debt snowball:

"List your debts, excluding the house, in order. The smallest balance should be your number one priority. Don’t worry about interest rates unless two debts have similar payoffs. If that’s the case, then list the higher interest rate debt first. 

The point of the debt snowball is simply this: You need some quick wins in order to stay pumped up about getting out of debt! Paying off debt is not always about math. It’s about motivation. Personal finance is 20% head knowledge and 80% behavior. When you start knocking off the easier debts, you will see results and you will stay motivated to dump your debt." 

 Andrew and I paid off my little school loans within the first couple of months of finishing FPU (Financial Peace University) and it's true, seeing those debts gone really is a motivation. Now we're tackling the big ones; his school loans and the Army Career Starter Loan But we couldn't do it willy-nilly, we've had to make a budget, which will be my next dumping debt post.

Walking on Sunshine, Wooah

Malachi's face perfectly describes how it made me feel seeing the sun shining into our apartment this morning. =)

Now onto cleaning!

20 Weeks - Half Way

Well we've reached the half way mark! 20 weeks down, and 20 more to go. I have to say this pregnancy is going by much faster and easier (although it sure is nice to have some energy back and not feeling as nauseous). I am very grateful to feel so normal. During Malachi's pregnancy I was hungry and therefor eating 24/7. I appreciate not feeling that hunger and cravings(!) as much this time around.

This past week as been so sunny, it makes me antsy for summer! What a fun and blessing-filled summer we have ahead of us; we get to meet our little one, Robin is getting married along with many other friend's weddings as well! 

I can't wait!

Yesterday: Anniversary of Roe vs Wade

"Today, on this 41st anniversary of Roe v. Wade, we consider the past four decades in which our society has legally permitted abortion and wondered far from God. Instead of accepting children in joy and hope, many hearts seem hardened against making commitments to others, fearing the demands others may make on our time or our freedom. We are becoming a culture marked by rejection, by loneliness and sorrow. In today's Gospel, we hear how Jesus grieved over the Pharisees' hardness of heart, as he heals a man with the withered hand. They remained silent when Jesus pointedly asked them: "Is it lawful to do good on the sabbath rather than to do evil, to save life rather than to destroy it?" Our laws now make it legal to destroy life by abortion, by abortifacient drugs, in destructive embryo research, in the course of in vitro fertilization procedures and in some states by assisted suicide and the death penalty. How Jesus must grieve over this culture of death! Let us open our hearts in faith, entrusting our culture to the healing power of Christ, the One who has overcome sin and the power of evil"

I know I'm a day late, but I wanted to share a reflection from the 9 Days for Life novena I am partaking in.  This novena is for those who have; lost their lives to abortion, who have lost loved ones to abortion,who are suffering from abortion, those who are performing abortions and those fighting against abortion. It is so important to pray for changed hearts and respect for life. It can be devastating thinking about the laws in our country (Canada included) but when you see all the people who participated in the March for Life in Washington DC and those in San Francisco, and those who fight every day in their home towns, with friends and family; there is a renewed sense of hope. It is by these efforts guided by our Lord that we may stop abortion, whether by law or just by changing hearts.

Dumping Debt: Invitation to Follow Us on a New Journey

I've decided to start something a little different on my blog for the next year and a half. This past summer I was told by a friend I should do more on my blog...seeing as I thought only family and a few friends follow to keep up with Malachi and our little family, I didn't think much of it, but I feel like this is a perfect opportunity to do something different. But not only different, possibly it will be something that may inspire a follower to do the same.

Andrew and I have decided we want to be debt free. We no longer want to be "slave to the lender" -Proverbs 22: 7. So for the next 20 months I am going to share this journey with you. Here's how it started.

Several different people throughout our dating and in our first year of married life told us about Dave Ramsey and a class they had attended called Financial Peace University. It wasn't until Andrew finished school (adding to my already existing school loans) and after we accepted a Career Starter Loan from the Army to buy our van, did we start to think about how much debt we actually had and became interested in this Dave Ramsey guy. Not really knowing exactly what we were getting ourselves into, we bought the "Financial Peace University DVD Home Study Kit" (at an incredible discount on their website might I add) and started listening to each class while we traveled around Missouri last year. We very quickly agreed with Dave Ramsey's approach to living without debt, building wealth and giving to those in need, and desired to follow his plan. SO, for the past year we've told ourselves we were "doing Dave Ramsey" (or as Dave Ramsey would say, starting our Total Money Makeover)...but really we weren't, I mean we upped the amount we put towards paying off loans but we were not fully committed.
Until now! 

We have set our goal to be debt free by the time Andrew turns 30, which will be in August 2015. That being said, we have created a budget and will need to live off a lot less money so we can put more towards loans and knock these suckers out!...you think it sounds crazy? Yeah it kind of is, but we are SO excited for the goal we have set and look forward to "Living like no one else, so that later we can live and give like no one else." A quote Dave Ramsey uses all the time. Meaning: if you make sacrifices and live like no one else...not eating out, spending very little on unnecessary items, so that you can pay off your debt. Then later you will have the means to save your money and use it to live like no one else, because you won't be a slave to the monthly payments of existing debts and you will have the freedom to do what you want with your money, including building wealth and giving to the needy.

I hope I didn't bore you and if you aren't at all interested, no problem just skip over these posts and keep looking for Malachi =) If you are interested then welcome! Also feel free to click here for Dave Ramsey's website to learn more.

Seeing as this is new for us, there will be many ups and downs and I plan on sharing all of it. Why? Because I myself am a very practical, realistic person. When I ask about something I want all the details, even if they are scary or intimidating. For example, before giving birth to Malachi I asked all my friends who had children for their birth stories and I wanted all their details no matter how scary they may have been (as long as they were ok with sharing of course). So when I listen to callers on Dave Ramsey's radio show call in and tell their story about becoming debt free I am bummed that I can't get all the details, especially during their hard times. I like to know that they are people just like Andrew and I. That they made mistakes or failed at times just like we will. So that is the approach I am taking. I invite you to comment/write/call or get a hold of me in any way if you have any questions or suggestion for us in this process.

Ok I think that's enough for now. I'd like to finish by saying that I fully believe, like I attempt to do in all areas of my life, that this whole undertaking will not be possible without God's grace and help. Because really the money we have is a gift from Him.
So, with Him, may we start our journey to being debt free!

 "You need to be able to win with money. Part of winning with money is getting yourself out of debt, learning to live on less than you make on a written plan, learning to communicate in quality ways with your spouse, building that emergency fund, building that retirement fund, building the kids’ college fund, getting the house paid off. That’s what winning looks like." -Dave Ramsey

Our Littlest One

We had our anatomy ultrasound today, everything looked as it should...Baby is doing GREAT! We feel so blessed.

Little Brother or Little Sister??

Look at that heartbeat!

If anyone finds themselves pregnant in Bellingham WA or near here (or Canada like us) I would HIGHLY recommend Bellingham OB/GYN. Everyone who work there are very professional, thorough, personable and nice.
Andrew and I think it's best to deliver in Canada so we don't have to worry about traveling and border wait times but we're sad to leave such a great group of people.

Christmas pics

Here are some pics from Christmas, better late than never!

Christmas outfit...ready for midnight mass =)

Missing Robin (and Todd) =(

Family of 4!!

Christmas morning, first dumptruck

My parents Manger Scene, Andrew made for them a couple of years ago.

Schaal Epiphany gift giving.

Enough presents you think??

Quatro's...yes that is their actual name (4 times as big as legos)

New vest and delicious popcorn; waiting for cousin Charlotte's baptism

Nap time while hanging with cousin Avila next to the firepit we were enjoying.

Strawberry santa's Andrew made for our goodby brunch.

Happy 2014!

Hope everyone had a great Christmas Season and 2014 is starting off better than expected.

Andrew and I joined 3 of his siblings, their spouses and a friend downtown Portland for New Years. It was so nice to go out and do something different (for us anyway). Last year we were in a hotel in Kansas City waiting for our friends to get back from Oregon, on our way back from Winterset Iowa. It wasn't much fun seeing as I had mastitis and we were barely awake at midnight, I remember thinking "Can we celebrate east coast time instead", as we ate our deliciously greasy burgers and milkshake from Sonic.