I have been taking the Financial Peace University class at my church for the past 10 weeks. It has been a great time watching the Dave Ramsey DVD’s and learning about some of the mistakes I have made in the past. We are working towards being debt free within the next year and a half. It will mean having a tight budget but once we have our Credit Card and Car Loan paid off we will get to join the ranks of those who are debt free except for their home.

The next step (Baby Step 3) will be to have an emergency fund of 3-6 months of expenses. This is really a challenging thing for me but an important one as the California budget is looking grim.