When I look at the calendar, it feel like we just began 2012, but September is knocking on our door! Â Many of you have made some great progress – including getting your debts paid off! Â Congratultions!! Â So – does that mean you are done? Â Not hardly!!!
Next up on your financial makeover is to build up your savings account. Â A few years ago, it was believed that if you had at least 3 months of income in the bank you would be OK. Â As the economy has changed, so has the way of thinking when it comes to savings. Â It is really important to have at least 6 months of income saved. Â I know that may sound like a lot of money, but just look at the debt you paid off and you thought that was impossible!
Just keep living like you are working your way out of debt. However, instead of sending the money to someone else each month, just deposit that into your bank account. Â One great idea is to set up 2 savings accounts. Â One is for your liquid savings (where you put money that we are saving for annual expenses, holidays, etc). Â Â Set up another which is strictly your emergency fund. Â This actually separates the money and can make it simpler to track. Â Not only that, you won’t ever dip into it – unless you truly need to!
The worst thing you can do to yourself is to have worked hard to get out of debt, and then to have an emergency come up which forces you right back where you started from. Â With careful planning now, you can avoid lots financial stress later!
| **Please, if you have recently paid off another debt, share with us! Â You can report every single debt — so that we can have an accurate amount reflected!! Â As a reminder, the survey is completely anonymous – there is truly no way for me to know who you are at all. Â You can share your amount you have PAID OFFÂ HERE. |
(I am not a financial advisor and the information listed within these Debt Challenge posts is not to be construed a financial advice.  This is knowledge we gained through our own personal experiences and information as outlined in Dave Ramsey’s Financial Makeover — and is being shared as such. Participants are not required to follow any steps listed if they do not wish to do so. Financial concerns/issues should be addressed with a professional in order to receive advice and assistance.)
New to the site? Â Catch up on all of our previous lessons and join us for the 2012 Debt Free Challenge!!
Tracie is a stay at home mom to three young children; ages 4, 6 and 8 in Raymore, Missouri.   In November 2007, she and her husband decided to eliminate their debt and made many changes in their lifestyle to do just that.
In 27 months, they eradicated over $37,000 in debt through both budgeting and learning how to live a frugal life. She now shares her knowledge in order to help you stretch your hard-earned dollars so you can live the life you want.