WalletPop

So here's the deal. We're broke. Not poor, just broke. We live paycheck to paycheck and it's just rough. We can't live like this forever. It's not safe and just doesn't make sense. So we have to develop a plan. A plan for today, a plan for tomorrow.

What can we do to get out of this financial mess? I think it's obvious to state that I'm not a financial planner or expert by any means. What I'm planning is based off what I have read and been told and plain ol' common sense.

We can't save money if we don't have money to spend. So the first thing I have done is lowered our monthly bills as much as possible. I've only made a few changes but already I have saved us about $120 a month on our TV and cell phone bills. We are all working on using less electricity and gas to hopefully bring those bills down as well.

Our biggest bills, the bike, the house and the car aren't negotiable. Those will be around for a while and won't lower themselves. So we need to work something out on that. I don't think that lowering our bills is enough to help build our financial future. We need better credit to help out for the future.

I've told you in previous posts that we are selling our house. In doing so, we can clear up $400-$500 a month to rebuild credit. This is a 5-year plan we are working on. We plan on renting upon selling the house. We know we can find a new place for about $400 a month in our area. That would save us $400 a month that we can put toward our bills.

I plan on using the Snowball method to pay-down our loans. If we take the $400 we are saving on the mortgage and apply it to our car and motorcycle loan, we can pay them both off in three years! That would be awesome.

After those three years, we would take the $1200 we were paying to our debts and use that to pay off our credit every month until we cleared our reports, hopefully driving up our score.

I think this entire process can be accomplished in about four years from the date of sale on our house.

What do you all think?