Baby Step Number 1: Complete!

So, as I have mentioned in previous posts, I am working on getting myself out of this Credit Card Debt and just being all around smarter with my money... and it is more than that. I also need to be glorifying the Lord with how I handle money, and right now I am not. I am not trusting Him to provide all things; I am attempting to control it... and that will never work. I need to open my hands and let go of many things in my life right now, and finances are just one of them.

Anyway... I have some good habits. I use a modified version of the 10-10-80 plan. Instead, I have used the 10-10-10-70 plan since I graduated from college. I live off of (or try to) what my take home amount is on my paycheck (what I get after taxes). I tithe the first 10%, put the second 10% in long term savings and finally the third 10% goes to short term savings. Here is the problem... I never really knew what I wanted to do with that money, or what "long-term" means vs. "short-term." And well, the bigger problem, early on I lived beyond my means and that is where I am right now. Learning what I need versus what I want. I earn enough that as a single adult I should be able to live off what I earn and then have some leftover. But debt and interest eats away at that. So, I need to modify, people.

I also (pre-tax) put money in a 403(b)-- the non-profit version of a 401(k). I only put in the minimum amount though, to get the match. This past fall I met with my company's financial planner and he helped me pick my funds based on my age, performance, etc. I must say, he did a pretty good job. Despite the stock market crumbling, my 403(b) doesn't look too shabby. Long way off from being able to retire on it, but that is ok... I won't be retiring anytime soon.

So... what does this have to do with now? Well, because I am in debt, and I want to live a debt-free life... and use my money to better honor God, I am making some changes. Thanks to some advice from my friend Jessica, I looked into Dave Ramsey's plan, as well as looked at my church's program through Crown Financial. At this point in time, I am not joining a class or Bible Study for it, but I like a lot of what they say about getting out of debt. For right now, I am using a modified Dave Ramsey's "Debt Snowball." Here are my Baby Steps:

1) Save $2000 in long term, high-yield savings account.
2) Save $1000 in short term, (emergency) savings account.
3) Pay off three remaining credit-card debts
4) Pay off car
5) Save 3 to 6 months worth of expenses in high-yield savings account
6) Start investing 15% of income in retirement (either Roth IRA or pre-tax retirement plan)
7) Buy a home, build wealth and give freely!

What do you think? I think it is manageable... especially since I have just completed Baby Step #1!!! I am working on Baby Step #2 right now. The one big stumbling block on number 2 is my Disney World trip in Feb, but that is ok. I am only paying in cash for that and don't mind dipping into the short-term savings to make sure that I don't use the Credit Card.

I believe I mentioned a while ago that my computer crashed... I have rigged it to work for now, so I have put buying a laptop on hold for awhile... especially since I have a laptop for work. A new computer isn't a need right now... just a want. There are lots of things I want, but they won't help me get out of debt any faster.

I also have a couple of goals for the new year and my money spending habits:
- stop all credit card use
- start using this budget worksheet I have found (to better understand how I spend my money so I can set up a realistic budget)
- set up a budget

Anyway, here are all my current budget/financial thoughts. Let me know if you have any comments and/or tips that have been working for you!