Onward to Baby Step 4!

Team Watkins, aka Debt Slayers 2013, is moving onward to Baby Step 4. So what is Baby Step 4? Well, here are the Baby Steps:

Baby Step 1- $1,000 saved for emergency fund
Baby Step 2- Debt snowball (Get out of debt plan)
Baby Step 3- Save 3 to 6 months living expenses
Baby Step 4- Save 15% of your income for retirement
Baby Step 5- Save for kids' college
Baby Step 6- Pay off the mortgage
Baby Step 7- Build wealth and give

The Baby Steps are simple enough on paper. It's a logical progression/plan to try and ensure a strong financial future, but it's not easy at first. I've written before about how behavior modification is key to this program. It's actually key to achieving most things in life. We wouldn't be able to get to Baby Step 4 if we hadn't gotten our stuff together and started acting like adults with out money. Because we got it together, I feel confident in our financial future even on one income.

As of late, I have been wanting to take out a credit card and CHARGE!!! I've been buying a lot of unplanned stuff that was needed after we moved, so August's budget has been a bust. Since it's been a bust, my mind has been like, eh what's another $20? It's another $20 is what it is! However, I know the ramifications of those actions, and we are on Baby Step 4 looking towards buying a home soon. We had our monthly budget meeting, and now we are back on track. It's just goes to show that the plan is not fool proof. It's not perfect because we're not perfect. However, I don't have to use my credit cards to get the things I need and want. We just come up with a plan for it.

For the first time ever, we may max out our Roth IRA's. I've always wanted to do it, so now I don't know what to do with myself. I'm quite eager to see if we can do it by April 2014. Oh the things that I get excited about now. Maxing out Roth's, babies, and Heath Bar ice cream! Lol.

- Faithwalking for Life