Dave Ramsey.. Total Money Makeover... Question
This is a question I would love to ask Dave but since I got such great feedback here last time I posted, I thought I would start here this time.
Husband and I are on our 'snowball' adventure, babystep 2.. Paying off credit card debts, then to pay off 1 car, a personal loan and last but not least attorney fees to my parents which they so generously helped me with on a custody case. I was awarded attorneys fees to be paid by my ex husband so hopefully if he ends up paying, we won't owe so much.
This all should take just under 2 yrs. Of course the ever so optimist I am married to says, it could be sooner should we get raises and bonuses as we 'hope' to receive, however I am making future plans based on my income today.
We are renting and our lease is up in April 2012. We have always planned to move and lease a home rather than the apt we are living in now. To move in April we will need a deposit, first months rent and any additional moving expenses. We also have found most rental homes do not provide a fridge, so we would have to purchase one. In order to have this type of savings we would have to stop our snowball plan and start throwing large amounts of money towards the savings and after we get that $ amount we could begin our 'debtfree' plan again. My suggestion was that we should probably stay where we are instead of moving. The rent on a house is going to be similar to what we already pay now and we would also have to consider the 'extras' of having a house. Such as lawn care, a fridge, a possible landlord that doesn't repair problems as quick as we are used to here. My husband is ok with that decision but also reminded me 'we hate it here'. Doesn't it sound like a better idea to stay here for another term while paying off our debts, instead of stopping for ten months to save? Opinions please?
Also, once we are debt free we are going to be able to throw $2500 a month into savings to start saving for a home. I suspect that after a year of savings we should be ready to buy a house. Where is the best place to put $2500 a month for savings for a down payment on a house purchase?
Thanks so much in advance for taking the time to help me out.