Posted by: Brookhaven | September 1, 2008

Two Month Update

It has been two months since my last post. Things have been busy and I have been reading everything I can get my hands on about money and finances.

I am excited to say that baby step 1 is complete. I decided on $2000 as my emergency fund as $1000 just doesn’t seem like enough. Christmas is also fully funded as well as a vacation to Cancun. Now that I am pretty well buffered against any new debt it is time to aggressively work on baby step 2: the debt snowball.

The most remarkable thing that has happened in the last two months is that I have not borrowed a single cent! This is the first time I can remember I have not incurred some kind of debt for any measurable period of time. It has been very difficult to stick to a budget and live on a cash only diet. At some periods I felt like it was impossible to continue but the dream of being debt free kept me going. Changing from living beyond your means to living below your means overnight is an awakening experience. I now fully understand just how much debt really costs.

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