One of our goals since before we got married was to get debt free and stay that way. We started out in 2012 basically broke, with $106,701.24 of school loans between us. And we had several financial setbacks over the first few years. But we read Dave Ramsey’s baby steps and started on them. The $1,000 starter emergency fund was the easy part.
Step two, snowballing your loans, took what felt like forever. The idea is, you pick your smallest loan and put all your extra money into that loan. Once it’s paid off, the extra money goes to the next smallest, and so on. We adapted this step because Fred wanted our private loans gone first. We worked hard and paid off our last loan in October, 2017! Talk about a weight lifted!
Next step, a three to six month emergency fund. We made it, last week! Here is where we are branching off from the baby steps, because we are hoping to move back to the lower 48 early next year, unless doors open sooner. And moving off island is very expensive. So our next step is saving $10-15,000 for moving. Hopefully it will be cheaper than we are anticipating, but having surplus money at the end would be fine with us.
Next steps are in God’s hands; we have thought that we were close to leaving before and have felt His leading to wait. But for now we are preparing as if we are leaving Kodiak fairly soon, excited to be closer to our families and our other homes, already missing much about being here. And loving being debt free!!!