A good way to keep yourself accountable is to put your goal in writing and to tell others. If other people know what you are striving for they can help keep you in line and encourage you along the way. I know many people feel that money is a taboo subject but that is one of the main points I even started this blog. To be REAL about money. So I am sharing one of our goals. I don’t expect this to be your goal and I don’t want anyone to feel badly about where you are on your financial journey.
This is what we have decided we want for our family.
Our (BIG!) goal: Be Mortgage FREE in 10 years, or less!
The first place I read about someone paying off their house was here. It was a BIG motivator!
Yikes! Even writing it down doesn’t make it seems and more possible but I’ve crunched the numbers and I know we can do it in 10 years. The ‘or less’ part will be a stretch but that is what we are ultimately trying for!
So here are our real numbers. We bought our house in March 2016 for $142,900 and were able to put down 30%. This was because we got a great price for our other house and we have lived debt free for the last 3.5 years. We got a 15 year mortgage at 2.875% and our payment is $890 each month including taxes. We round that up and pay an even $900 a month just because it’s easier math 🙂 By adding a measly $10 we are shaving 3 months off of our mortgage length. I know, it’s barely worth even mentioning but every little bit helps!
I am a nerd and I am visual so I like to make little charts that I can color in to show our progress. For every $10,000 we pay off we want to celebrate in some way…which will be decided when we get closer to that goal 🙂
I wanted to know how much extra we would need to pay to hit our goal. I used an online mortgage calculator and these are the numbers that it gave me.
If we pay an extra:
$100 every month it will save us 2.5 years
$150 every month it will save us 3.5 years
$200 every month it will save us 4 years
So what is our plan to get to the 10 year mark?
1) Consistently pay at least $100 extra each month. This is an attainable number for us. There are months that we will be able to do more, but $100 is our base number.
2) Any ‘extra’ money will got towards the mortgage. There are times when we are under budget and have ‘leftover’ money. Every so often we find things to sell. Sometimes we are able to do small side jobs. Instead of spending that money on something or rolling it over to the next budget we will put it on the mortgage.
3) We have been fortunate enough to get a Christmas bonus from J’s employer each year. This is not guaranteed. IF we get a bonus again this year we will add it to our tax refund money and the cost of living raise J receives to add a once yearly payment of $1,000 to our mortgage. That yearly payment will save us another 2 years.
These 3 things should bring us to the 10 year mark! #2 will be the real game changer for us and is really what we are focusing on. We really, really, REALLY want to get our house paid off ! 🙂
In the meantime, we continue to budget and keep our expenses low. We aim to be content with what we have and try to not compare ourselves with others. We still have a life. We still eat out. My kids are not in rags. We are even able to help others. We are just determined to be COMPLETELY free of debt.
What about you? Do you think you will be able to pay off your mortgage early?
Disclosure of Material Connection: I have not received any compensation for writing this post. I have no material connection to the brands, products, or services that I have mentioned. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”