When life throws you curveballs, when all is said and done all you really can do is get back up and start working towards that goal again. Sometimes it seems like a continuous cycle – save up some money in the emergency fund, have an emergency, empty out emergency fund, rinse and repeat. But in the end, we’ve been making great progress over the past 2 years towards our ultimate goal of being debt free, and that is what matters.
Our first priority right now is to get our emergency fund to $2500. With a $250 transfer I made this morning, it is back up to the original $1000. At the end of the week I get paid, so I may be able to transfer some more money in then. I don’t know if we will be able to get it up to the full $2500 by the end of the month, but looking at my projected income for this month I am cautiously optimistic that we will be able to get it to at least $2000, barring any more unforeseen emergencies.
Our next priority is to save $10000 for a new-to-us vehicle. Our primary vehicle has shown itself to be less than reliable, and we would like to be able to replace it without incurring additional debt, were it to have any more serious problems. We will not start saving for this until we get the emergency fund to $2500, so it still stands at $0 right now. This fund will also double as a backup emergency fund in the case of a very expensive emergency, but it will remain earmarked for use to purchase a new-to-us vehicle.
Our final current financial priority is to pay off our remaining non-mortgage debt, my student loan. I made a $300 payment to this today, which is double the actual minimum, and what we’ve decided to pay to it each month until we complete the above two savings priorities (or we change the order of the priorities). This brings the current balance owed on the loan to $9553.46. This means that according to my NCN Network chart, we have paid off 73.79% of the total non-mortgage debt we had as of June 2007.
Nothing exciting or earth shattering happened this week, and at this point, I consider that a good thing! I am considering re-prioritizing the student loan above saving for a new-to-us car, but I think that might be just because the Saturn has behaved for the last month. We’ll see. I get antsy about the debt still hanging over our head and unwilling to let it just sit with me for too long.