Home Emergency Fund Challenge | Debt Calculator Guidelines

Emergency Fund Challenge | Debt Calculator Guidelines

EMERGENCY FUND CHALLENGE RULES

$1000.00 is typically the advised “starter” amount to begin an emergency fund. Our ultimate goal is to save our first $1000.00 over the next 12 weeks or less.  The timeline starts, for each subscriber, whenever you sign up for the challenge.

If you can and want to save more–go for it. Be sure to tell us about your successes in the blog comments and in our Facebook group. The steps are simple:

  1. Join Facebook Group.
  2. Open a savings account (if you don’t already have one) and start making your deposits.
  3. Like/Follow at least one social media account Instagram, Twitter or Snapchat.  Where applicable, use the following hashtag to let me know you are a part of my crew #goodbyebrokesquad
  4. At the end of your 12 weeks, report back to the Facebook Group, Twitter and/or IG  that you kept this commitment to yourself and saved your $1000.00 adding the hashtag #goodbyebrokesquad1K.   For, then we can publicly celebrate your win and each other!

TIPS TO GET MOST OUT OF CALCULATOR:

  1. Gather all your bills
  2. Take note of interest rates
  3. Enter them into the calculator one by one so as to get the truest picture of your condition
  4. Once you determine a comfortable monthly payment for each of your creditors
  5. Tally up the totals so you can know how much you need to set aside each month toward your total debt reduction
    1. If you really want to geek out–you can calculate the percentage (%) of each debt category in relation to your total monthly net income. This will allow you to see what percentage of your take home pay is eaten up by debt. This is really sobering and usually will get many motivated when they see how much of their earnings go out to bills.  For example.  Total Monthly Take Home Income = $3500.  Credit Card Payments per month total = $500.  500 divided by 3500 =14%.  So, 14% of your take-home pay goes toward credit card debt.  
  6. Let this figure (however daunting) motivate you vs. deflate you as you can start devising an “income strategy” to accelerate the payoff date.
  7. You can’t “turn up” on your debt to eliminate it until you know exactly where you stand.

Now, go crush your goal so you can move on to the next one!

 

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