Gnashing

I am a BIG Dave Ramsey fan. I have been trying to follow his plan for nearly a year. We are on baby step 2 and eager to move on. For those of you that do not know what the baby steps are, here is a quick run down. (I highly recommend that you read his book, The Total Money Makeover).

Step 1: Baby Emergency Fund of 1k
Step 2: Pay off all debts
Step 3: Big Emergency Fund of 3 to 6 months of expenses
Step 4: Invest 10 to 15% of household income into retirement funds
Step 5: College funds for children
Step 6: Pay off house
Step 7: Invest, build wealth and give (He is big on giving money)

We are to the point with our debts that all we have left are Eduardo's student loans. We are happy about this, but it seems that it will take forever to pay them off. So with that we are considering doing something big.

First, we knew when we purchased our house that it would eventually get to the point that we would out grow it and we would have to move on. We have two bedrooms and Livy's room is too small to put another bed or crib for baby #2. So we would have to move.

We are planning on trying for baby #2 some time next year. We are debating whether to sell now or wait until next year. When we sell, we have enough equity in our house that we could put down a large down payment on another house, pay off Eduardo's student loans, put 6 months of expenses in the bank and have enough to fix up the new house. Plus, and this is a HUGE plus, there is a strong possibility that I would no longer have to work. I want more then anything to quit my daycare (Oh! The stories I could tell you!) and be a stay at home mom. We would then be working on baby step 6! (We have skipped a head a little and opened a College Savings account for Livy).

It all sounds great, right? We sell the house, be more financially secure and I get to finally stay home with Livy. I don't want to move. I am comfy here. It is extremely hard for me to make friends. I have lived in this house for 3 1/2 years and I just now feel like I have friends. Plus both Eduardo and I enjoy our callings at church, I am DUP Captain next year, and I live 2 blocks from my mom. I love that! The move would mean a 40 minute drive to visit my mom. Yuck! What to do, what to do!

Eduardo talked with his supervisor earlier this week to see if they could transfer him to another office. (Where we are considering moving to). This was going to be one of the determining factors whether or not to consider this. They told him that they would work with him. He really has found a great company to work for.

If we moved, it wouldn't be until this summer. We still have to sell our house and the market is slow.