Baby steps are part of the Financial Peace University (FPU) program. Dave breaks everything down in small steps, and puts them in a specific order to help you stay on the path to financial freedom. The first step is a $1,000 emergency fund, so that an emergency doesn’t send you running right back into debt.
$1,000 seems like a lot from where I’m standing.
I sat down today to look at the hard numbers for the first time this year. It was discouraging. My friends, it’s getting yucky! But it’s a good thing. I have some things I can sell. Not a lot, because I did a lot of cleaning out when I moved, but a few things. Most of what I have are books, which, unfortunately, don’t have a great resale value. They won’t help much on the path to an emergency fund, but maybe they’ll help a little bit.
Even though it feels yucky, I feel good about this. I like knowing exactly what I’m doing. I’m weird and anal retentive, but I honestly enjoy sitting down and working on this stuff. My google calendar now has a standing Thursday night budget meeting scheduled. Looking around in my class, I feel fortunate that I’m doing this while I’m young and single. While having two incomes would be really useful, I have the ability to make unilateral, split-second decisions that married couples don’t. Sure, I need an accountability partner (got one. He’s very good at his job.) to run large purchases by, but mostly it’s up to me. It’s nice, and it’s scary.
We’re moving forward.