Watch Out for Potholes in your road to Debt Freedom! May 5, 2009

My wife and I encountered a pothole in our road to being debt free last week. Some how our city did not bill us for our property taxes on our vehicles last year and we obviously didn’t pay it. When we went to obtain new stickers for our license plates we were told that we needed to pay this. This why having an emergency fund is so important!

We paid the taxes and then had our inspection done on our car. The car didn’t pass inspection and we had to pay for 2 new tires. Overall, we paid around $460.00 for something we budgeted around $60.

Make sure you have at least a $500 in your emergency fund and then add $50 a month until you have $1,000 in your emergency fund. By doing this it will get you started on paying off debt faster.