Debt Reduction, Debt Story, Emergency Fund, Savings

Get Out Of Debt – The Emergency Fund

I recently wrote about our debt reduction process – a simple one-page guide to getting out of debt. Over the next few days, I plan to elaborate on each of the steps mentioned in the article, starting today with a few notes about step 1 – and the emergency fund. My wife and I have our primary checking account with our local bank.  This allows us to deposit our paychecks locally – and is a great place for my son to find coins for his collection.  The account is interest bearing and is free. Our saving account is online – and that’s where we keep our emergency fund.  Withdrawals from our checking account and deposits into our savings account take…

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Debt Reduction, Debt Story

Get Out Of Debt – One-Page Summary Of Our Process

It’s been a minutes since I last wrote about debt reduction – so I thought I would write out a simple, one-page summary of the steps that my wife and I have taken to eliminate our debt. 1. We established a small emergency fund. We started with $1000 in cash – and our fund fluctuated between $800 and $2000 during our debt reduction process. 2. We created a (and followed) a zero-based budget. We “spent” our paychecks, on paper, at the beginning of each month, so that we would know where our money was going to go. 3. We listed our creditors and associated debts, by amount, smallest to largest. (Another option, used by many, is to list debts by…

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Debt Reduction, Mortgage

Paying Off Our Mortgage – Update With Chart September 2015

It’s time for a new chart!  We are working to pay off our fixed-rate, conventional, fifteen-year mortgage. Our goal is to pay it off in less than 10 years. I use a simple pie-chart to track our progress – and post our updates here at No Credit Needed. Having a visualization keeps us motivated! Here’s a chart with details for our current progress – The percentages above represent the amount of our mortgage we have paid – 32.83% – and the amount we still owe – 67.17%. Each month, we make our scheduled mortgage payment, plus an additional principal-only payment. Some months, we make more than one principal-only payment! This chart doesn’t represent our entire equity – It represents that…

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