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Fall is finally here and I’m just now starting to think about our goals and what will happen with life in 2019. We’re just about through our second year of our mortgage loan and have paid off $62,775.67 of our mortgage. It has been a haul! We’re not quite half way, but are inching our way closer and should get there by the end of the year if everything goes well.
What happened in October
This month was a comedy of errors in so many ways.
This month’s stats are:
- Current balance: $67,218
- 22 months along
- Total paid off: $62,856
- 48% complete (so close to 50%!)
- We’ve shortened our loan by 18 years, 6 months
- We’ve saved $64,138 in interest!
We paid off $2,487 which was awesome, but it didn’t come easily shall we say.
Our daughter, Terin, started walking which is super exciting. We made it official after she took 15 steps. 🙂 Then, not long after that happened, Nick broke his ankle marathon training and stopped walking. I find it so ironic that this happened this month.
We also had some tricky accounting this month on our loan and I learned some huge lessons. Our lender didn’t apply an $810 principal only payment. This was the 4th or 6th time this has happened over our 22-month loan! Getting credit ASAP for these special payments are the only way for us to get out of debt fast.
They work by reducing the actual balance rather than paying interest. If the bank doesn’t apply the funds correctly, they can charge us more interest. Yikes! Making sure the bank did it correctly is not glamorous but it can really save a lot of money, time, and frustration.
While I did a good job of checking these, I didn’t do well balancing our accounts every week. Sooo, I bounced 4 checks. This is so embarrassing because it’s not how operate. Our accounts get really lean at the end of the month. Since I didn’t check what was coming in and out of our accounts, I overestimated how much we could pay to debt.
I called our bank, sincerely apologized and vowed not to do it again. Then I asked if they’d remove the $116 in fees I was charged. They graciously did and now we can focus on next month. I’ve changed how I pay our loan so I can avoid this in the future.
The process is pretty simple:
- Get paid
- Set the budget
- Pay regular bills
- Subtract what we were paid from our week’s bills
- Pay the difference to debt.
Because some bills come in different weeks, it’s a good idea to always look at what actually came in and out of your accounts before you send money out. So glad this is behind us and we can move forward.
Trudging through the muck of this goal has been a total blessing to me. It’s easy to set goals and dream about a life. It’s another to do the work and get.it.done. You can do it, too. I have faith in you!
Side note: To see the progress you’re making on your money goals, I highly recommend signing up for a free Personal Capital account. It tracks all financial accounts in one place and will tell you if you’re overpaying on fees, a potential $100,000+ savings. Sign up for FREE through my exclusive Personal Capital link.
Goals for November
Our goals are different than in previous months. The first is to get back on track with our budgeting. We make mistakes. It’s ok if I stop, reassess and try again. One step at a time. I’m making a habit of balancing our accounts before paying principal only payments. That way I’ll have a better idea of what’s to come.
As for numbers, I’d like to pay at least $2,260 or get below 50% of our loan’s balance.
I’m also thinking about next year. I think it’ll be a big year for our family. We’re thinking about fixing our backyard since Terin is walking now and needs some outdoor space. Not sure what the costs are but we will be making a list of everything we want to do and decide from there. I’d really like a dog run and a butterfly bush. Nick’s lobbying for xeriscape since he does most of the yard work! LOL. We will see.
Around the Finance Innerwebs
I joined Twitter for the first time. You can follow me here @hansenhundreds if you’d like.
I really liked this from Mr. Money Mustache. I see too many middle class families not realize how much money they do have. They think they don’t have any because they spend it on prepared foods, entertainment and restaurants, and other expenses that never stay with you.
Memories are great. I’m all for making memories, but I’m also for spending money on items that will last longer than the two seconds it takes to eat it (or whatever).
Everyone complains that Financial Independence is only for people with very high incomes.
It’s not. Because really it comes down to honing a rare skill, that is equally difficult to learn for most:
The skill is deciding NOT to buy it, even when you DO have the money for it.
— Mr. Money Mustache (@mrmoneymustache) September 25, 2018
For those of you who think retiring early is out of your reach, think again! This article from PBS shows how penny pinchers made early retirement possible.
This letter is everything I want to say to my old acquaintances who want to sell MLMs. Too many don’t realize how much of a scam they are and how they prey on people with lower incomes. I wish I had the guts to say this in person. Maybe I should. I suppose I’ll leave this here and you can decide for yourself.
Previous debt payoff reports
- April 2018 Debt Payoff Report – $2,908
- May 2018 Debt Payoff Report – $3,506
- June 2018 Debt Payoff Report – $1,824
- July 2018 Debt Payoff Report – $1,944
- August 2018 Debt Payoff Report – $2,779
Share with me in the comments what your debt goals are? Any cheap October shenanigans you did this month?