Moving on to Baby Step 3

I recently read Dave Ramsey's response to someone else's question and it made me wonder if we should be paying off a HELOC in Baby Step 2. I found out that if your HELOC is more than 1/2 your income (which ours was barely over)then you should move paying that off to BS 6. So, we are getting to skip BS 2! That will really make us feel like we are making progress. Now our next step is to get 3-6 months of expenses in savings. That amounts to about $10,000. That will take a while. It really is amazing though how we are much more relaxed about money and have the money for the things we need and can step back from frivolous "wants" and keep focused. We hope others will be inspired to try this plan or another one to get out of the debt cycle.

Baby Step 1 complete!

Well, it took our tax refund to do it, but we got Baby Step 1: Save $1000 for a baby emergency fund, DONE!

Baby Step 2 is Pay off Debt Snowball. I feel very fortunate that the only thing we have in this category is a HELOC. It is not a small amount, but we are going to get it paid off before its maturity date of July 2021.

All of this is going great. Not perfect or we would have had our $1000 by Jan 31, but we still are making progress.

YEAH!!