It is hard to believe that everyone has been hard at work on the Debt Free Challenge for 9 weeks!! (Oh – and before you go looking for a week 8 article, we didn’t have one last week). Remember to keep on working hard – I’m sure it is challenging, but hopefully, it is beginning to be rewarding for you as well.
One thing that seems to always happen when you start an endeavor such as this is that Murphy comes a knockin’! You know – Murphy’s Law: “Anything that can go wrong – will.” Hopefully you are ready for him when he visits (and trust me – he always does).
We previously talked about creating your $1000 emergency fund savings. I hope that you have set this aside, as this will be your saving grace when something comes up. It could be the furnace going on the fritz or even an unexpected medical expense. Whatever it is, you want to use cash to pay for it and not revert back to using your credit cards and thus, increasing your debt. Of course, since you are all good pupils, you have cut up your cards and no longer have them anyhow (wink…..wink).
Once you pay cash for your unexpected emergency, you will need to get back to your $1000 in savings again. What that means is a temporary hiatus on paying down debt and applying all extra money, windfalls, tax returns, etc. towards reaching $1000 in the bank again. I know that it is frustrating to know you have taken 2 steps forward and one step back. However, try to look at the positive — How GREAT is it that you had the cash to pay for it rather than resorting to credit? You did it! You deserve a round of applause!!! Plus, now that you see you CAN pay cash and do this, it will keep you on the path to living a cash only lifestyle.
Just keep on keepin’ on. You are all doing fantastic!! You will hit bumps in the road. There will be detours that will take you off course. What is important is that you just find your way back to the main road again as quickly as you can!
(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.)