Sunday, August 16, 2009

Our goal to pay off our mortgage and how we are doing it

As I mentioned before we have set a deadline for our mortgage. I am not going to say how long we have set, as most people think it is impossible. My husband and I are determined.

We currently own a house we are not living in. We plan on selling it and buying here, where we now live in 2 years. Now, before you jump the gun and go, well you'll be making a big profit, you'll be downsizing etc... We're not. We will be upsizing. I am pretty sure that to buy the sort of house here that we'd like it will be at least $50,000 more than our house is worth.

Yes, we will make some money off the sale of our house, but it will leave us with about the same mortgage we currently have, so we are basing it on what our mortgage currently is.

There are so many things that we will be doing to reduce our loan, that I will be splitting them into catergories and posting on them separately. But to give you an idea, here is a rough idea of our plan.

1.) Checked the size of our mortgage, divided it by the amount of years we want it paid off in, then divided that by fortnights, giving us the amount we need each pay to pay it off.

2.) We have committed to putting all tax returns to our mortgage. No exemptions.

3.) We have gone over all our expenses and seen where we can make changes. Anything that is fixed, as in we have no control over them e.g. land rates, rent/mortgage etc.. can not be changed (Although you can move house to cheaper rent and look at new mortgage providers, once done, this is a fixed cost.) Everything else is put under the microscope to see where we can save more.

4.) We have committed to not buying a new car til our house is paid off.

5.) No other large expenses unless absolutely necessary. For instance, we were going to buy me a computer, but have decided against this. Unless an appliance dies, or furniture breaks, we are not getting anything.

The main thing is, we have committed to this. No mattter what, we are determined to do it. Obviously, somethings are outside of our control, such as illness or injury, inability to work etc... but if none of these things happen, we will achieve our goal.

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