You may have noticed in my Financial Blogger Conference 2012 breakdown that a small group of us hung out quite a bit. During the pizza party on Saturday, Jason from Live Real, Now and I decided to make a bet.
Mortgage Payoff Race
Specifically, we decided to start a mortgage debt payoff race. We technically both have the cash on hand to pay off our current mortgages, but we also both have other big expenses and cash padding to consider. We also each have no other debts. So the bet is to see which one of us will pay off our balance first after handling our upcoming big expenses and building up some basic cash reserves again.
I will be using a huge chunk of change to pay for the 20% down payment on our new house at the end of this month. Jason will be laying down a lot of money for home renovations on the house he just inherited and needs to fix up for rental income.
In the end, we are racing to see who can pay off around $25,000 of mortgage debt and still have enough padding to be secure. For me, that means needing to close on our new house, do some basic work on our current house to get it rented, build up another $20,000 in cash padding, AND THEN I will pay off our current home loan.
I like visiting blogging buddies more often than just at the conference. I’ve already visited Suba from Wealth Informatics twice since FinCon 11. But getting those trips together can be a hassle and the airplane tickets are a bit expensive. Jason has a family of five to travel with and doesn’t like heat and humidity, but they do have a couple of family members that live near me. I really never liked snow and would be perfectly happy never seeing any of the super northern states. So the loser of our debt payoff race will have to visit the winner. Snow ain’t for me, so I will be sure to kick his butt.
Have you ever made a bet with anyone to accomplish something positive? What were your terms?