Writing down goals is powerful and sharing those goals creates accountability.
We’ve been pretty open about our finances because we want to encourage others that it is possible to live well on one income.
We recently set some new financial goals with our big one being to pay our mortgage off early.
In March of 2011, we purchased our home. We put 20% down and financed the rest with a 30 year mortgage. We started making extra principal payments soon after we moved in, with the hope of paying off the mortgage earlier than 30 years.
We refinanced in early 2013 to a 15 year loan with a 3.25% interest rate. The monthly mortgage payment only went up $80 by doing this.
We strategically started paying $300 extra towards our principal each month because we didn’t want to be saddled with a mortgage for 15 years.
In late 2013, we stopped making extra principal payments and started saving the money because we wanted to make some improvements in our kitchen and laundry area. Thankfully we had that money saved because in early 2014, we had to replace our septic field lines (the joys of home ownership, our kitchen and laundry still haven’t been updated!)
Then in April 2014, we put our home on the market and continued saving the money that was budgeted as extra principal money.
Once we decided selling our home wasn’t the best move for our family, we stopped making the extra principal payments – we saved most of it but we also started dipping into that money for other things.
We started to have the attitude that since we’re living in a very affordable home, we can live a little and spend our money a little more freely. We lost sight of the goal of paying off our mortgage early.
In May 2015, we attended a Financial Learning Experience at our church led by Joe Sangl of I Was Broke, Now I’m Not. We left the event ‘fired up’ again about our personal finances!
We took some time and wrote down some personal and financial goals for our family at the end of that weekend.
The big goal that we set was to pay our mortgage off in 5 years.
This is a bit of a stretch goal but we’re excited about the challenge and focused on achieving our goal.
To be honest, our 5 year goal looks impossible on paper but we know with a little creativity, frugality and focus we can reach our goal.
In the coming months, I’ll be updating you on our progress for accountability, sharing details on how we’re planning on paying off our mortgage in 5 years and posting about different ways we’re saving money to help us reach this goal.
*We’re sharing our story and this goal in a hope to encourage you in your quest for debt free living! We all have different circumstances due to consumer debts, student loans, mortgage amounts and income levels but we all can take steps to improve our finances. Setting financial goals is a great way to motivate you to work towards paying off debts, living within your means and inspiring you to set big goals, like paying your mortgage off early. No matter the state of your personal finances, you can take steps to turn things around!