So we’re two months down the track with this. So far we have paid out two credit cards and a business debt, about $13,000 worth of debt! Wow!!! Now that wasn’t a financially normal two months, we both received fairly hefty tax returns, and Eddie cashed out an insurance policy that wasn’t worth paying into. And what a difference it’s made!

I did our budget on Excel last night, and as long as we are very very careful with our money we can survive on Eddie’s wage. We won’t be putting away money for Christmas or clothes, but we will be able to pay bills. I am obviously planning on working, but it may take a month or so for me to find employment. I’m still coaching, however we really need a larger income to get rid of all this debt. We’re both so sick of paying $1000′s of dollars each year in interest!

We haven’t done so well following the budget up to now. In fact we didn’t have one at all for November! Then I was sick and we ate take-away a lot, we’ve both been really busy with working, school, Christmas coming, preparing to move etc. January is going to be a crazy month, so we’re using a fairly flexible budget there…. February we’ll need to get a lot more serious about following it.

I still need to draw up some charts that show our debt reduction visually. I don’t think it’s ‘real’ to Eddie or Dian what we’ve achieved so far. This is really me pushing the debt reduction and budgets so far, and trying to sell the idea to them. If I want them to buy into this and not blow the budget and to make it a truly teamwork effort then they need to be able to clearly see the benefits and the progress we’re making. Unfortunately I’ve misplaced my papers that have our net worth and balances on them, I’m assuming that they’ll turn up sometime after we move! I’ve probably filed them, if I have then it’s no wonder I can’t find them! LOL!

We’ve spent the money, now we’re paying the bills. A comment that I read today was really interesting. It was in one of Dave Ramsay’s books and said that if you invested $1850 per month in a good mutual fund, in 15 years you’ll be a cash millionaire. Another five years to make the second million and then three years to the third. Five million in 28 years. Most people spend thirty years paying off a mortgage at about the same monthly rate. There’s a big difference between $5,000,000 and a $300,000 house!