We’ve Completed Baby Step 3!

Our 6 month emergency fund is finally fully funded!

Almost a year after becoming debt free, we’ve finally completed baby step 3! If you follow the Dave Ramsey plan then you’re already familiar with this step which is to save 3-6 months of living expenses in an emergency fund. Because I’d rather be on the safe side, we decided to save up for 6 months instead of 3.

To reach this goal, we kept our living expenses to a minimum and saved any extra income we came across. It took us a little longer than we expected due to also having to cash flow new baby expenses but we did it!

What’s next?

We will now be moving onto baby step 4, saving 15% of our income into a retirement account (most likely a Roth IRA but still need to do some research) while at the same time saving up for my husband to go back to school. We’re still not sure exactly what that timeline looks like but we will be laying out a plan in the next few weeks.

Author: Amanda

Amanda graduated architecture school in 2012 with approximately $24k in student loans. Soon after, she financed a car a year later and ended up with a total of $40,000.00 in debt at the end of 2013. After being introduced to the Total Money Makeover book by Dave Ramsey she completely changed her views on personal finance and decided to stop borrowing money and focus on becoming debt free. She is Debt Free as of October 2017.

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