As you may have previously read, Art and I paid off all of our debt, and were officially debt free as of 2015. We then spent 2 years saving 30 big ones for a down payment on a house. It’s hard to believe that was a reasonable down payment as housing prices have tripled since we bought our home in 2017. Nevertheless, we purchased our home with the goal of paying it off as quickly as possible.
I believe the original timeline was 5 years. Cue scoffing and laughter. That may have been manageable, if all we ever ate was rice and beans, never had kids, didn’t get a dog who poops in my favorite shoes (that’s a story for another time) and chews up bedroom doors (ditto), dog beds, and whatever else is lying around that tickles her fancy. 2 kids, a destructive pooch, and 8 years later, we still haven’t paid off the house. But GOODNESS GRACIOUS are we close. And in a series of mental gymnastics, the closer we get to a $0 balance, the more uncomfortable I am.
The more we pay off, the most bothered I am that we still have a mortgage. Through some really aggressive work and saving, we have managed to pay off $27,000 in principal in the last year. Some would argue that this is foolish, considering our mortgage interest rate is 3.375% and we could be earning 8+% in investments but I don’t like to gamble my home today for the promise of future earnings. It is likely that we would have earned more by investing but if I were to be laid off, we are ever so close to being done with a mortgage, which would cut our monthly living expenses by 22%. At 22% less in expenditures each month, I know we’d be ok. So I feel good about our decision.
We owe around $21,000 at this point. If we scrimp and save, we can pay it off in 2-3 months. By utilizing a tax return, any bonuses earned, and cutting out the things we don’t really need, we will be done by May of this year. Having been avid Dave Ramsey fans at one point, my heart is singing at the prospect of truly having no debt. This has been the goal and the dream for the last 12 years. Our home has seen us through 2 pregnancies, 2 newborns, 2 destructive little ladies who leave a string of chaos in their wake. It will be so nice to own it outright and know that if times are tough, we have a refuge that is ours at no additional cost (other than property taxes, homeowners insurance, etc).
The future is bright, and I am so excited to see if we reach our goals of paying the mortgage off by April 30th, 2025. Of course, I have been racking my brain trying to figure out how to speed things up. Unfortunately, work has slowed down an insane amount in the last 2 months. There has been an uncharacteristic slump that has foiled my plans to pick up overtime and get through things quicker. But that’s life. Having a budget and knowing our expenses are controlled allows me to breath easy (sort of) and let things shake out as they may.
So what’s next? Next, we fully fund our pre-tax retirement accounts first, then our post-tax retirement accounts. I don’t know what the future will hold but I know that we can’t count on Social Security to be around or providing for us in our old age so it’s time to start saving seriously for the future. We will also be saving towards braces for the oldest and potentially for Art, which I know is going to be a good chunk of change. I am thankful for interest free credit in office with the orthodontist and plan to take advantage of that.
But where is the fun in all of this? I find it fun to think about the prospect of retiring earlier than 62, being able to explore the world with Art, have time to see my grandkids and maybe help my kiddos out with moves, births of babies, occasional child care, etc. And if I can start that process earlier than 52, all the better! In the meantime, we are planning to celebrate our big win with the girls by taking a trip somewhere. We initially thought about going for a week somewhere but have since changed our minds and are opting for multiple day trips over spring break (hopefully). We have never taken the opportunity to thoroughly explore our locale and there are several historical, hiking, and amusement related destinations we are aiming to hit to make memories with the kids.
This summer, we will also aim to take a special summer trip with the kids to celebrate our newfound freedom. 8 years ago, I said I’d like to take the family to Hawaii when things were paid off. We are sadly not in a place to make that happen this year. Plus I’m not sure how much a surly toddler would remember about the trip and I don’t have the iron fortitude to imagine a several dozen hour flight with her prior to reaching that destination. So I will save that trip for when my girls are older and both are patient and understanding. Here’s hoping that day eventually comes! I will definitely have more money saved for the adventure when it does.
Why does being Debt Free Matter?
To me, there is a feeling of smothering that came with student loans and personal debt. The sensation on payday was always ‘money in, money out’, a fleeting feeling of my hard work slipping through my fingers and going swiftly elsewhere. Once we paid everything off, things started to come much easier. When there is no $700 minimum payment, a flat tire, broken phone, or unexpected plumbing bill feels a lot less like a life altering emergency. I used to CRY like a crazy person every time anything unexpected came up. Now, I might say a choice word or scrunch my face up, but I pay the bill and life goes on. A few minutes to a few hours later, I have forgotten about the issue, and I am lighter for it. I can’t even imagine what getting rid of a mortgage will feel like. The only other expense that would have such a huge impact on our monthly expenses is daycare and we are easily a decade away from ditching that. So this is big moves territory.
Photo by Peter Conlan on Unsplash
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