Our Journey to Mortgage Freedom: June 2016

Oh my, what a CRAZY and busy month June has been! Just in the past week we have moved THREE times! I don’t recommend it!

Anyway, I have put off this post after mid-month because I knew we were going to make TWO mortgage payments this month… AND….

if you are part of The $1,000,000 Challenge you already know WE ARE DEBT FREE!!!

Yep, screaming it from the mountain tops… WE ARE DEBT FREE!!!

 

Do you want to see the break down of how we made it happen this month? Good! You are in the right place.

Looking Back at May

As of May, our mortgage principal was $4,629.14! Let’s take a look at how we made our PAY OFF THE MORTGAGE, 2016 Financial Goal a reality!!!

June 2016 Mortgage Freedom 

 

June’s Journey to Mortgage Freedom Payment

June 1st 2016 Payment:

Principal Reduction:

Normal Payment:      $628.52
Interest:                              $2.11
Blog:                               $178.49
Fuel:                                  $32.79

Extra from Budget:   $1318.78

Total Principal Payment: $2160.69!!!

Category Breakdown

Interest ($2.11): This was the monthly interest that accrued on our savings accounts (mostly from our emergency fund). Nothing to brag about, but every dollar counts!

-Blog ($178.49): This is two months worth of blog income from advertisements in the sidebar and within blog posts. Expenses are not considered in this figure. Thank you for your continued support!

-Gasoline ($32.79): We budget $200/month for gasoline expenses. Last month we had a little extra left over and so we applied it to the mortgage!

Extra from Budget ($1318.78): We had a few less expenses last month and so this is ~$300 more than the previous month! You can take a look at our May Budget to get a better idea how we came up with this “extra” money.

New Mortgage Principal… $2,468.45!!!

During the last weekend of May we had our June Budget Meeting. We knew our expenses would be slightly less because of how our rent payment falls mid-month and that we would be moving out of our house leaving all those expensive bills behind.

Let me remind you that we pay our mortgage with the previous month’s income.

The June 1st payment was paid with May’s budget and income from May 1st and May 15th paychecks.

The following June 15th payment was paid with June’s budget and income from June 1st and June 15th. This is the reason we could make two large payments in a single month and claim DEBT FREEDOM!!!

June 15th 2016 Payment:

Principal Reduction:

Normal Payment:      $637.07
Car Repair Fund:       $498.69
Extra from Budget:   $1332.79

Total Principal Payment: $2468.45!!!

Category Breakdown

-Car Repair Fund ($498.69): We sold our British car the first week of June meaning we no longer required a car repair/maintenance fund. This fund now sits at $1167.86 which will be applied toward our PCS budget.

Extra from Budget ($1332.79): This is the “extra” we had left over in our June budget after all of our expenses and our monthly $1500 savings towards our PCS budget.

After July our PCS fund should be completely funded. Now that we do not have a mortgage we will be able to pad our PCS budget and hopefully get slightly nicer cars than anticipated. YAY!!!

New Mortgage Principal… $0!!!

WE ARE DEBT FREE!!!

It is taking some time to get accustomed to being debt free.

We’ve had this “attack debt” mentality for so long that it has become part of us and I think it will take some time to let it go. I am sure when we hash out our July budget this weekend our DEBT FREEDOM may become a little closer to feeling like reality when we realize how much “extra” we have in our budget.

Have we splurged or celebrated our debt freedom?

Honestly, we have been so busy with moving and getting ready to PCS we have not had a chance.

Our baby boy had his 4 month “birthday” the same week we became debt free and we splurged and bought him a ~$20 toy for his upcoming first international airplane ride.

What’s funny and maybe a little scary/sad… we went to several garage sales and a “like new” community sale with the plan to get him a used toy. Once we couldn’t find anything that was age appropriate. We wandered into the toy store and had a difficult time selecting a toy without feeling guilty about purchasing something unneeded. I suppose old habits die hard.

Our Debt Freedom Plans

  • Successfully complete our PCS to Hawaii and visit family in route all while staying within our allotted PCS budget.
  • Establish a workable Hawaii budget.
  • Dramatically boost retirement investing. We currently invest $722.46 each month and we would like to at the very least double it.
  • Splurge a little. There are many purchases we have put off because of our financial goal of becoming debt free. Nothing huge, but we will be purchasing a new bed, linens, computer, and clothes!
  • Save for our “Forever Home.” My husband should retire from the military in the next 7-9 years. Once he retires and we both have jobs in a location we LOVE. Then we will purchase or build our second home. The goal is 100% CASH!

 

New Mortgage Statistics

Daily Interest: ZERO!!!

After the bank tacked on $100 of “processing fees” I am SOOO HAPPY to be done with my 2nd to least favorite bank! We get rid of my ultimate least favorite bank (the one we have in England) in less than a month! YAY!

Number of Years Extra Payments have Knocked Off Mortgage: 25 Years!!!

We paid off our 30-year mortgage in exactly 5 YEARS!!! Our very first payment was July 01, 2011.

Our Journey to Mortgage Freedom Visual

Here is a breakdown of our  Month by Month Progress

Untitled design 

Looking Forward to July Budget:

Our July budget will be a bit CRAZY because we won’t have “regular” bills but will have some PCS expenses we are cash flowing. Expenses such as the entertainment/food expenses while visiting family in route to Hawaii and “going away” and “welcome home” events.

We will have a better idea after this weekend’s budget meeting but my best guess is we should be able to save an additional $2500-$3000 to our PCS fund, which will give it $1000-$1500 more than anticipated.

I hope to give you all an update to our PCS budget soon, but with our little one and trying to PCS I’ve come to find out extra time isn’t in abundance.

We are Leaving England DEBT FREE!!!

 

What do You Think?
Do you plan to pay off your mortgage early?
How should we celebrate our debt freedom?

You May Also Enjoy:

Emergency FundDebt to Wealth 3 Years into Our JourneyCalculate Your Debt Free DateOur Secret to making Huge Financial Gains

18 thoughts on “Our Journey to Mortgage Freedom: June 2016

  1. Congrats!!! I am still in amazement with how frugal you guys are! I wish I was there and I know I could be to a point but not the no TV (our cable is included in the rent so we just have that nasty tax to worry about) and not the no car because I fear I’d loose my sanity :-P!! Way to go and what a great accomplishment! Do you think you guys will keep the house as a rental property or sell soon?

  2. WooHoo! So inspiring….think about how much closer you are to financial freedom!

    Have fun with all the visits on your way to Hawaii.

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