- \n
- Step 1 – Save $1000 Emergency Fund<\/span><\/li>\n
- Step 2 – Pay off debts using snowball method<\/span><\/li>\n
- Step 3 – Fund 3-6 Months Expenses Emergency fund<\/span><\/li>\n
- And so on<\/span><\/a>…<\/span><\/li>\n<\/ul>\n
The Mistake of Acting Out of Order
\n<\/b>We made the mistake (and now glad we did) of working the steps out of order. \u00a0We started with saving for retirement. We chose to do the one that seemed easiest for us to implement first. \u00a0At any rate, as we progressed through the steps we finally got to the \u201c3-6 Months of Expenses Emergency Fund\u201d.\u00a0<\/span><\/p>\n![\"\"](\"https:\/\/i0.wp.com\/kerryaclark.com\/blog\/wp-content\/uploads\/2018\/03\/20180323-TIF-SM-Way-Bills-Were-Meant-to-Be-Paid-Part-3-400x400.png?resize=400%2C400\")
<\/p>\nDo you know how hard it is to save 3-6 months of your expenses?<\/span> \u00a0Sure you do and so do we, it was darn near impossible. \u00a0But we didn\u2019t give up, it led us to creating a process that may be the solution for you. \u00a0\u00a0We ended up abandoning Dave\u2019s method [baby step 3] and created our own.<\/span><\/p>\n
Just 1 Month Expenses for Now
\n<\/b>After reviewing our finances, we noticed that our mandatory expenses weren\u2019t the largest expenses we incur. \u00a0In fact, if you <\/span>take note of your mandatory expenses, you\u2019ll find they are very manageable<\/span><\/a>. \u00a0It\u2019s all the extra stuff that makes a mess of your money. \u00a0So we concluded that we\u2019d save 3-6 months of our mandatory expenses, like Dave recommends. \u00a0The exception is this; we didn\u2019t try to be too aggressive, but instead our goal was to be intentional. \u00a0We weren\u2019t going to save the money, but pay the expenses in advance. There’s no way we\u2019d be able to keep our hands off the extra funds sitting in an account somewhere.<\/span><\/p>\nBefore you check out, here\u2019s what we mean. \u00a0We decided to pay service providers one month in advance. \u00a0Instead of us owing them when we receive the statement, they\u2019d owe us. \u00a0We figured if we could get our bills a month ahead, we win financially and we accomplish our goal of \u201cowing no man anything\u201d. \u00a0If you recall the problem with bills is <\/span>they are always behind when you get them<\/span><\/a> and we decided to turn this around. \u00a0We decided to get just one month ahead of our service providers.<\/span><\/p>\n
I bet you\u2019re wondering how we do it. \u00a0How we got those bills ahead by even one month without having any extra money. \u00a0That\u2019s a good question. But before I give you that answer…<\/span><\/p>\n
Today is Friday!<\/span><\/p>\n
There\u2019s more we will share about this process, but you\u2019ll have to join us in the next installment to find out how we got 1 month ahead of our service providers without having any extra money.<\/span><\/p>\n
- Step 2 – Pay off debts using snowball method<\/span><\/li>\n
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<\/a> is available now!