We have been working on the baby steps outlined by Dave Ramsey for a year and a half now. During this time, we have completed baby step one several times (this step is where you save up $1000 for your emergency fund). So far this year we have been able to keep our emergency savings account full and have diverted 2 emergencies (having to replace our hot water heater and having to pay for a new electrical panel for the furnace) by covering them with money from our tax return. Unfortunately, a legal situation arose last week that required me to take $300 of our emergency fund to take care of it. But, since Mike's payday was only a few days away, we promptly budgeted the money to go right back into the emergency fund. Then yesterday came around and we had a pipe burst in our basement (again... the same pipe that caused us to have to replace the hot water heater and electrical panel on the furnace a few weeks ago) and I had to rent a sump pump to pump the water out, about a foot deep I might add, and then today I had to call a plumber to fix the problem. Luckily, we are friend's with a guy that owns his own plumbing company so we got a bit of a discount, but the fix wasn't easy and required a bunch of digging, so it ended up costing $297, basically the same amount we just re-funded the savings account with (Oh, and thank God neither the furnace nor hot water heater were damaged this time!!!). So, we are back to baby step one and baby step two will be on hold until we get that one completed again. Not long ago, this would have been very frustrating for us and we would have completely given up on the whole thing. But, we still have $700 in the emergency fund, we have a home with all the utility bills paid, we have clothes on our backs, and dog gone it, we have food to eat. Our emergency fund may not be fully funded but we do have padding there just in case and as we have seen a million times before, God will provide. I have to say though, it wasn't long ago when a repair such as this would have literally brought us to our knees. Not that $300 was too much to spend on "stuff" that didn't really matter. But, that's just it... that extra money that is now our emergency savings account, used to be spending money. We would buy all sorts of things we just had to have. We had cars with car payments and as many things as possible financed simply because it was supposed to be the American way. If only we had found Dave Ramsey 13 years ago. None of that matters now... all that matters is that we are working on it NOW and every day we get a little bit closer to being debt free. Our journey to be debt free is going to be much longer one than it is for most people, but one day we will be debt free!!!