A brief time-line leading up to our FPU journey:
- 2003; Graduated college in May, Justin started his first "big boy" job in June, purchased a house in July, married in August, I started teaching in August.
- 2004; Find out we are pregnant with Alexis in April and deliver her (3 months early) in September.
- 2005; Justin loses his job in January and we bring Alexis home from the hospital in February.
- 2006; We are in a financial tailspin, barely scraping by and putting things like Alexis' monthly perscriptions on credit cards. Started FPU in September.
- Baby Step 1 – $1,000 to start an Emergency Fund
- Baby Step 2 – Pay off all debt using the Debt Snowball
- Baby Step 3 – 3 to 6 months of expenses in savings
- Baby Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement
- Baby Step 5 - College funding for children
- Baby Step 6 – Pay off home early
- Baby Step 7 – Build wealth and give!
We dove head first into FPU. During our first year we....
- Saved $1,000 emergency fund.
- Downsized cars to eliminate payments.
- Paid off $18,000 in credit cards.
We were truckin' right along and on track to start our 3-6 month emergency fund when Justin lost his job in October of '07. There goes the $1,000 emergency fund and we had JUST cut up all of our credit cards. Yikes. More stressful times.
Thanks to a recommendation from a great friend, Justin got a new job in January of '08 and we were back on track.
FPU Timeline from '08 to current...
- Saved the $1000 emergency fund again.
- Paid cash for Amy to get her Master's degree .
- Decided Justin would go back to school for his Master's degree.
- Start our 3-6 month expenses in savings.
- Move to Newell, rent out our Clive house.
- Finish and exceede our 3-6 month in savings.
- Decide instead of invest in Roth IRA's to hold off and save $$ to buy another house to avoid 2 mortgages.
- Purchase a house in Newell.