Our Journey to Mortgage Freedom: May 2016

Happy Cinco de Mayo!
Yes, I’m a guilty American that uses this holiday as an excuse to drink tequila and eat Mexican food. LOL! Perhaps not this year… but next year, bring on the Margaritas and nachos! LOL.

I apologize for the extended absence. Little man is keeping me busy… good thing he’s a cutie. ūüėČ

Budget Baby

I hope everyone had a wonderful April, full of financial progress!

Looking Back at April

As of April, our mortgage principal was $6,577.18! One of our 2016 Financial Goals is to PAY OFF THE MORTGAGE!!! I’m keeping my fingers crossed that we can pay it off before we leave England.

May 2016 Mortgage Freedom

 

May’s Journey to Mortgage Freedom Payment

Principal Reduction:

Normal Payment:      $620.81
Interest:                              $2.04
Road Tax:                      $213.36
Fuel:                                  $23.70

Extra from Budget:   $1088.13

Total Principal Payment: $1948.04!!!

Just shy of $2000 paid on our mortgage this month all while saving $1500 for our upcoming PCS (military move). Definitely something to celebrate!!! We paid about $300 more this month than we did last month.

Category Breakdown

‚ÄďInterest ($2.04):¬†This was the monthly interest that accrued on our savings accounts (mostly from our emergency fund). Nothing to brag about, but every dollar counts!

-Road Tax¬†($213.36):¬†We budgeted to pay 6 months of the British Road Tax. However, when we received the bill we realized it didn’t save us much to pay 6 months vs. a monthly (~$38/month). Plus this way we will not have to wait for a reimbursement when we sell our vehicle in the next month or two.

-Gasoline ($23.70): We budget $200/month for gasoline expenses. Last month we had a little extra left over and so we applied it to the mortgage!

‚ÄďExtra from Budget¬†($1088.13): We had a few less expenses last month and so this is a couple hundred dollars more than the previous month! Here is to hoping we can have a couple more similar payments in the upcoming months!

New Mortgage Principal… $4,629.14!!!

WOW!!! We have a mortgage less than $5000!!! In all honesty it is so difficult to wrap my brain around how little amount of debt we have left. For so many years we had HUGE numbers staring back at us. 

We could easily use some savings to pay it off. However, we are saving for our move. I can’t believe how close we are to DEBT FREEDOM!!! Two to four months remaining… CAN’T WAIT!!!

New Mortgage Statistics

Daily Interest: $0.60 ($0.26/day reduction!)

Our monthly interest is now $18! LESS THAN twenty dollars a MONTH! When we started paying off our debt, just over 4 years ago. We were paying $24 EVERY. DAY. in interest! Incredible!

Number of Years Extra Payments have Knocked Off Mortgage: 24.5 Years!!!

Minimum Payment Amortization: January 2017! 8 months left… even if for some reason we need to go back to paying minimum payments.

Our Journey to Mortgage Freedom Visual

Here is a breakdown of our  Month by Month Progress

MortgageApril2016-page0001

 

Looking Forward to June Mortgage Payment

Challenges:

  • Saving for PCS¬†‚ÄstWe are saving¬†$1500/month until ~July to pay for PCS (military move) expenses.¬†This takes up a large portion of our ‚Äúextra‚ÄĚ income that has been previously applied to our mortgage payment.

Good News:

  • No Major Expenses as far as we can predict there shouldn‚Äôt be any BIG¬†extra expenses this¬†month.
  • Blog Income – I should have a small amount of blog income this month to apply to our mortgage in June. Every little bit helps! Thank you for your continued support!

Will We be Mortgage Free before Leaving England?

We will be moving from England to Hawaii this summer. We should have two more mortgage payments before moving. This means we would need to average a $2314/month principal payment on our mortgage. This would be¬†$300+ more than May’s mortgage payment.

Considering these numbers, it will be EXTREMELY¬†difficult to pay off our mortgage before leaving England. It appears we will be $700-$1000¬†short from paying off the mortgage. Considering these numbers, you better believe we will be scraping up any extra change and trying to trim down our PCS budget to find some “extra” money to PAY THE MORTGAGE OFF!!!

What do You Think?
Do you plan to pay off your mortgage early?
If you were in our shoes… would you pay the mortgage off now or wait to make sure you have plenty to cover our PCS move and have plenty in the event of an emergency.

 


You May Also Enjoy:

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

Our Journey to Mortgage Freedom: April 2016

My goodness, newborns take up A LOT of time! Especially cuties like the one pictured below who fight falling asleep and then insist on being held during his naps. I did purchase a baby carrier similar to a Baby K’tan which arrived today in the mail (YAY!). I’m hoping and praying it will help me get a few things done around the house and maybe should we dare dream… actually blog! ūüôā

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I hope everyone had a wonderful March, full of financial progress! Also, I hope you all had a wonderful and blessed Easter last weekend. How cute is our little man’s¬†“First Easter” outfit. ūüôā

Budget Loving Baby Easter Bunny Budget Loving Baby Easter

 

Looking Back at March

As of March, our mortgage principal was $8,213.27! One of our 2016 Financial Goals is to PAY OFF THE MORTGAGE!!! I’m keeping my fingers crossed that we can pay it off before we leave England (~4 months).

April 2016 Mortgage Freedom

 

April’s Journey to Mortgage Freedom Payment

Principal Reduction:

Normal Payment:      $614.33
Interest:                              $1.87
Blog:                                 $102.36

Extra from Budget:   $917.53

Total Principal Payment: $1636.09!!!

Definitely one of our smaller mortgage payments this year but still a step in the right direction. The good news… even if we average these smaller payments. The mortgage will be GONE in 6 months! I can’t wait! ūüôā

Category Breakdown

‚ÄďInterest ($1.87):¬†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 Income ($102.36): This income was from advertisement (ads in the sidebar and at the bottom of posts).  This income does not consider expenses. We budget blog expenses within our monthly budget.
Thank you so much for your continued support and inspiration!!!

‚ÄďExtra from Budget¬†($917.53): This is a few hundred dollars than last month. One of our smallest amounts of “extra” applied to our mortgage. This is due to saving $1500/month for our¬†military move to Hawaii) and a couple of other expenses for baby, a house repair, my continuing education, and a quarterly water bill.

New Mortgage Principal… $6,577.18!!!

WOW!!! Our mortgage is¬†so small! We could easily use some savings to pay it off. If we didn’t need to save for our move.¬†I can’t believe how close we are to DEBT FREEDOM!!! Four to six¬†months remaining… CAN’T WAIT!!!

New Mortgage Statistics

Daily Interest: $0.86 ($0.21/day reduction!) Under $1/day!!! YAY!!!

Our monthly interest is now $26! When we started paying off our debt, just over 4 years ago. We were paying $24 EVERY. DAY. in interest! That is a dramatic difference!

Number of Years Extra Payments have Knocked Off Mortgage: 24.3 Years!!!

Minimum Payment Amortization: March¬†2017! Less than a year left… even if for some reason we need to go back to paying minimum payments.

Our Journey to Mortgage Freedom Visual

Here is a breakdown of our  Month by Month Progress

MortgageApril2016-page0001

 

Looking Forward to May Mortgage Payment

Challenges:

  • Road Tax¬†‚ÄstOne of the British taxes we have to pay is the road tax, which has to paid for each car and ranges between $150-$500/year for most vehicles. Our Road Tax is due in April and we plan on paying for 6 months, which will cost ~$250.
  • Saving for PCS¬†‚ÄstWe are saving¬†$1500/month until ~July to pay for PCS (military move) expenses.¬†This takes up a large portion of our ‚Äúextra‚ÄĚ income that has been previously applied to our mortgage payment.

Good News:

  • No Major Expenses as far as we can predict there shouldn‚Äôt be any BIG¬†extra expenses this¬†month,

Will We be Mortgage Free before Leaving England?

We will be moving from England to Hawaii this summer. We should have three more mortgage payments before moving. This means we would need to average a $2192/month principal payment on our mortgage. This would be approximately $1570 extra beyond the minimum mortgage payment.

Considering these numbers, it will be EXTREMELY difficult to pay off our mortgage before leaving England. Although not entirely impossible. Most likely, we will be $2000-$3000 short from paying off the mortgage. We are still holding hope to come up with a little extra to pay it off!

Should I let you in on a little secret??? (or not so much of a secret) We want to pay off our mortgage soo bad. We are willing to sacrifice! We have seriously considered modifying our PCS budget in order to pay off our mortgage before leaving England. We have talked about delaying a second car purchase and/or cutting other PCS expenses. Only time will tell! ūüôā

What do You Think?
Do you plan to pay off your mortgage early?
What would you sacrifice to pay off the mortgage?




You May Also Enjoy:

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

Our Journey to Mortgage Freedom: March 2016

WOW! Mid-March and I am FINALLY getting around to posting our March Mortgage Payment! Don’t worry it is no indication of our progress. We had INCREDIBLE progress this month and even hit a major milestone.

baby BLMW 3

It is this cutie who is just so cuddly and yes, a little demanding who has delayed this post by a couple of weeks. This little guy decided to make our Valentines Day an eventful one and our lives have been turned upside down (in a good way) ever since!

 

Looking Back at February

As of February, our mortgage principal was $11,490.71! One of our 2016 Financial Goals is to PAY OFF THE MORTGAGE!!! I’m keeping my fingers crossed that we can pay it off before we leave England (~4 months). However, realistically it will be closer to 6 months. At any rate, I am THRILLED we should be DEBT FREE before the end of the year! YAY!!!

March 2016 Mortgage Freedom

March’s Journey to Mortgage Freedom Payment

Principal Reduction:

Normal Payment:      $601.36
Interest:                              $1.80
Gasoline:                          $6.90
Income Tax Return:  $604.00
Blog:                                 $655.71
Dry Cleaner:                    $22.96

Extra from Budget:   $1384.71

 

Total Principal Payment: $3277.44!!!

WOW!!! I LOVE huge mortgage payments!! We thought last month would be our last big mortgage payment for a while. However, we were surprised with some unexpected income and we ended up with another incredible step towards DEBT FREEDOM!

Category Breakdown

‚ÄďInterest ($1.80):¬†This was the monthly interest that accrued on our savings accounts (mostly from our emergency fund). Nothing to brag about, but every dollar counts!

‚ÄďGasoline¬†($6.90):¬†We continue to budget $200/month for gasoline just to be on the safe side. The much lower gas prices and it being winter (and extremely pregnant) had us staying close to home. We had a lot more “extra” in this fund initially. However, we spent extra time in the hospital, due to a c-section birth of our little guy. Which resulted in increased expenses to feed my husband and baby expenses. Fortunately, we were able to adjust our budget to cover these expenses and not have to dip into any savings!

-Income Tax Return ($604.00):¬†Although, we were hoping for ~$2000 tax return because it would make paying off our house before leaving England a real possibility. It wasn’t the case this year. We had a few less deductions and didn’t qualify for a tax credit like we did last year. But at the very least, we didn’t owe.

-Blog Income ($655.71): This income was from advertisement (ads in the sidebar and at the bottom of posts). As well as affiliate sales from the past YEAR. One of the companies was having issues with payment. After months and months of pestering them, I finally received payment. Woo-Hoo!!!
This income does not consider expenses since we budget blog expenses within our monthly budget.
Thank you so much for your continued support and inspiration!!!

-Dry Cleaning ($22.96): My husband over-estimated last month what it would cost to have his uniforms dry cleaned. This extra is being applied to our mortgage!

‚ÄďExtra from Budget¬†($1384.71): This is significantly less ($1400) than last month because we are now saving $1500/month for our upcoming PCS (military move to Hawaii)!!! However, we are quite thrilled to¬†have “extra” in our budget to apply to our mortgage despite saving for our overseas move.

New Mortgage Principal… $8,213.27!!!

YAY!!! Our mortgage is BELOW $10,000!!! The fact that we were able to reach this tremendous milestone just weeks after our baby boy was born, is incredible! Having such little debt when adding a baby to our family has been such a blessing. Knowing that we will be debt free in just months is quite exciting!

New Mortgage Statistics

Daily Interest: $1.07 ($0.42/day reduction!) Next month we will be under $1/day!!! YAY!!!

Number of Years Extra Payments have Knocked Off Mortgage: 24.2 Years!!!

Minimum Payment Amortization: April 2017!

Our Journey to Mortgage Freedom Visual

Here is a breakdown of our  Month by Month Progress

MortgageMarch2016-page0001

 

Looking Forward to April Mortgage Payment

Challenges:

  • Road Tax¬†‚ÄstOne of the British taxes we have to pay is the road tax, which has to paid for each car and ranges between $150-$500/year for most vehicles. Our Road Tax is due in April and we plan on paying for 6 months, which will cost ~$240. When we sell the vehicle in June/July we will get a refund for a couple of months.
  • Saving for PCS¬†‚ÄstWe are saving¬†$1500/month until ~July to pay for PCS (military move) expenses.¬†This takes up a large portion of our “extra” income that has been previously applied to our mortgage payment.
  • Extra Expenses – We have several extra, smaller expenses for April: home repair (~$90), Occupational Therapy National Certification ($65), water/sewer bill ($110), and husband’s work expense ($20).

Good News:

  • No Major Expenses as far as we can predict there shouldn‚Äôt be any BIG¬†extra expenses this¬†month, impacting our April¬†mortgage payment!
  • Blog Income¬†‚Äď We should have an extra ~$100 in blog income to apply to the mortgage. Thank you for your support and encouragement!

Will be Mortgage Free before Leaving England?

We will be moving from England to Hawaii this summer. We should have four more mortgage payments before moving. This means we would need to average a $2050/month principal payment on our mortgage. This would be approximately $1400 extra beyond the minimum mortgage payment.

Considering these numbers, it will be extremely difficult to pay off our mortgage before leaving England. Although not entirely impossible. Most likely, we will be $2000-$3000 short from paying off the mortgage. We are still holding hope to come up with a little extra to pay it off!

What do You Think?
Do you plan to pay off your mortgage early?

 


You May Also Enjoy:

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

Our Journey to Mortgage Freedom: February 2016

January definitely flew right on by in our household. We have been busy, busy getting ready for our little bundle of joy who should be arriving in the next few weeks! YAY! AND trying to get as much done as possible for our up and coming move this summer.

February should be another busy and eventful month and so we are starting the month off with a BANG! Yes, you guessed it! An incredible mortgage payment that takes us one BIG step closer to DEBT FREEDOM!!!

 

Looking Back at January

As of January, our mortgage principal was $16,325.80!¬†One of our 2016 Financial Goals is to PAY OFF THE MORTGAGE!!! I’m keeping my fingers crossed that we can pay it off before we leave England (~6 months). However, realistically it will be closer to 9 months. At any rate, I am THRILLED we should be DEBT FREE before the end of the year! YAY!!!

February 2016 Mortgage Freedom

February’s Journey to Mortgage Freedom Payment

Principal Reduction:

Normal Payment:      $582.22
Interest:                              $1.89
Gasoline:                          $59.20
TDY:                               $1055.39
Blog:                                 $280.66
College:                             $92.05

Extra from Budget:   $2763.68

 

Total Principal Payment: $4835.09!!!

WOW!!! I LOVE that we were able to come up with such a HUGE mortgage payment this month! It will most likely be our last big mortgage payment for a while. We will begin saving for our PCS (military move) this month and so the mortgage payments will become smaller starting in March.

Category Breakdown

‚ÄďInterest ($1.89):¬†This was the monthly interest that accrued on our savings accounts (mostly from our emergency fund). Nothing to brag about, but every dollar counts!

‚ÄďGasoline¬†($59.20):¬†We continue to budget $200/month for gasoline just to be on the safe side. The much lower gas prices and it being winter (and me being extremely pregnant) has us staying close to home during the weekends which helps¬†us stay quite under budget in this category. We keep the higher budget just in case I end up needing to go to the doctor/hospital more than anticipated or if we end up needing to rent a car if sharing one car ends up being too much of a hassle with all my appointments.

-TDY ($1055.39):¬†My husband had a TDY in November and December which we cash flowed the expenses. This “extra” money is his per diem pay and the $250 “family separation” pay. You can read about how we Budget for a TDY to take advantage of the small increase in pay to apply it to our financial goals.

-Blog Income ($280.66): This was advertisement (ads in the sidebar and at the bottom of posts) and affiliate income from two months. This does not consider expenses since we budget blog expenses within our monthly budget. Thank you so much for your continued support and inspiration!

-College ($92.05): We budgeted for the cost of a book for my husband to take a college class. However, he was able to borrow the book from the library.

‚ÄďExtra from Budget¬†($2763.68): This has been one of our biggest amounts that has been “extra” in our monthly budgets. It is¬†$300 more than last month! We did not have any large expenses or “surprise” expenses in January. Resulting in a HUGE payment this month! As I have stated before, we will start saving for our move. So this will be last “BIG” amount that is extra from our budget. We plan on saving $1500 each month, so on “good months” we should still be able to apply an extra ~$1000 towards our mortgage.

New Mortgage Principal… $11,490.71!!!

YAY!!! You have no idea how excited I am to be sooo close to having less than $10,000 in debt! The thought of bringing our baby boy into this world with very little debt is absolutely wonderful. To think that we should be DEBT FREE before he is even crawling or talking is absolutely mind boggling. Life is good. God is good!

I have definitely noticed the closer we get to that DEBT FREE moment, the more temptation there is to PAY IT OFF! If we didn’t have major life events this year (having a baby and moving back to the states). We would have most likely paid it off this month. However, we are practicing patience and the security of our emergency fund will definitely be needed this year with all of the unknowns and different possibilities.

New Mortgage Statistics

Daily Interest: $1.49 ($0.63/day reduction!) We are under $2/day and under $50/month!!! LOVE IT!!!

When we started this journey 4 years and 2 months ago, we were paying $24… EACH… DAY in interest!!! That means today, $8200/year is going into our pockets instead of the bank’s pockets! The banks have to be hating us! Right? LOL. :)

Number of Years Extra Payments have Knocked Off Mortgage: 23.8 Years!!!

Minimum Payment Amortization: September 2017!

Our Journey to Mortgage Freedom Visual

Here is a breakdown of our  Month by Month Progress

MortgageFeb2016-page0001

Looking Forward to March Mortgage Payment

Challenges:

  • Baby‚Äôs Arrival!!! ¬†Our little one will be arriving in the next few weeks and although we have budgeted for expenses. We may end up with “surprise” expenses. We increased our food budget to stock up. We also increased our restaurant fund, thinking we may be more likely to order take out during those first few weeks of pure exhaustion with a newborn. I have prepared several freezer meals to make it easier on us, but we will see how things go.
  • Saving for PCS¬†‚ÄstWe will start saving $1500/month for the next 6-7 months which will take a huge portion of what we were applying to our mortgage payments.

Good News:

  • No Major Expenses as far as we can predict there shouldn’t be any BIG¬†extra expenses this¬†month, impacting our March mortgage payment!
  • Income Tax Return – Based on estimates we should receive some type of income tax return. Definitely not a huge return like last year because we adjusted our with-holdings. My goal is to finish up our paperwork¬†and get it¬†submitted next¬†week. Hopefully we receive our return in time to apply it to our March mortgage payment!

What do You Think?
Do you plan to pay off your mortgage early?
Will we be mortgage free before leaving England?

 


You May Also Enjoy:

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