Ana from DebtFREE-Revolution tagged me with her new meme, “If I were debt free…” I had to think about this one for a while. Whatever would I do if I had no debts to pay?
First, I would fully fund my emergency fund. I would want to have 6 months of expenses saved. This last year has shown me how important an emergency fund is. I never want to be here again. Our emergency fund is currently down to about one month’s worth of expenses. That’s not a great place to be when you have no income. :) My husband is very resourceful, though, so I have no doubt that we’ll have some form of income soon.
After my emergency fund was funded, I’d throw extra money at our retirement savings. Unfortunately, we don’t have a lot of money there either. I’d also begin saving for a down payment on a house.
If we still had time left after we bought a house and funded our retirement, I’d put some money toward our children’s college educations.
Beyond that, I don’t think our lifestyle would change too much. I’d be committed to staying out of debt, living frugally, and helping others when I can. Being debt-free would just make it that much easier.
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I'm just an average mom, trying to live a frugal life and get out of debt. I write about things that have (and haven't) worked to improve my family's financial situation. What works for me may or may not work for you, and you should always consult a financial advisor before making important financial decisions.
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