Crystal over at Money Saving Mom is hosting a Financial Shape in 2008 update. We haven't participated in this before, but I figured no time like the present to join in!
Earlier this Fall Claudio and I read The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey. We HIGHLY recommend it, even for those who are doing great financially. It is a fail proof, gimmick free way to live within your means and pay off your debts in a timely fashion.
So following Dave's plan we created a budget and other than a few tweaks of adjustment we have been keeping to it religiously. This enabled us to throw lots of extra money to our car payment and we are happy to announce that we payed off our car in just about a year!! With the economy how it is now we feel much more confident knowing that we can live below our means, we can make do with what we have, and we are well on our way to paying off all of our debt!