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We’ve Made Our Decision!

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Okay, so we have made some decisions over the last week, yay!  It actually ended up being a pretty easy decision when we looked at the numbers.  Here is our plan for the rest of the year.

Our Financial Plan for 2013

So I took a closer look at all of our savings accounts and that helped make up our mind.  With the $2000 we added to the mortgage payoff total at the end of our own budget month, that savings came to $17,000.  We also had $3000 set aside so far for our Roth IRA’s for 2013 that we could pay back before year’s end.  Seeing that $20,000 ready for the mortgage payoff pushed us to the conclusion that paying off the rent house mortgage just needs to happen.

Sooooo, we’re going to borrow $2000 from our emergency fund and pay off that loan within the next 3 weeks.  I’ve already requested the official payoff quote.  😀

Once that mortgage is nice and dead, we’ll spend the next 6 months paying ourselves back.  We’ll owe $2000 to our emergency fund and have to build up $11,000 for the Roth IRA’s.  I will look into refinancing our current mortgage in May 2014 after we have two tax returns that show nothing but our self employment income.  Throughout all of that, we will take a close look at our goals and savings all over again and decide what our next steps will be.

As a few of you pointed out, at least this loan payoff will mean that we will always own at least one house outright and we’ll be freeing up about $500 a month.  That’s cash that can be used on whatever our priorities are…paying ourselves back, saving for retirement, new investments, etc.

Long Term Plans

By the end of 2013, we hope to have some plans in mind for the following few years at least…although it does seem that priorities change often enough that goals are generally suggestions to ourselves rather than rules set in stone.  Our main goal is to be financially independent as soon as possible since the main fear of self employment is instability.  We hope to continue our current business as long as possible, but it will feel way better to do so if it is by choice.  Financial independence is a sort of power in my mind.  The power to choose your path without the fear of losing your home or needing to make drastic changes at a moment’s notice based on your income.  I like the power of choice.

What are your financial plans?  What is your largest financial goal?

FYI:  I worked at a dead end cubicle job from 2005-2011 for about $30,000 per year.  I went self-employed in July 2011 and make between $70,000-$90,000 through blogging, professional pet sitting, hubby's reffing, and our rental home.  If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you, PLUS a free custom header banner from me!).  Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!
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22 thoughts on “We’ve Made Our Decision!

  1. Right now our largest goal is to get rid of my fiancee’s student loan debt. After that we’ll have to pick another goal, but I don’t think we’ll be attacking our mortgages.

    Congrats on making the decision! It should free up a ton of mental bandwidth and I’m sure it’ll make you feel good 🙂

  2. I agree this is the right move. Once that loan is gone, you’ll have a lot more monthly cash flow. Speaking from personal experience, it is nice not having to worry about multiple mortgages. As always, it’s a great success story for you.

  3. Years ago when my wife and I finally got within $5K of paying off our credit cards, we suddenly just had this urge that it HAD TO BE DONE IMMEDIATELY. We just couldn’t wait anymore. We borrowed money from family members and were able to just get rid of it. And it felt GREAT. And we paid everyone back as quick as we could, but of course family loans are interest-free, which is awesome. Sometimes you get that fire under your butt and you just gotta do it! Congrats on making that decision!

  4. Woo!!! I am slightly jealous of you guys. My current plan is that when my mortgage balance gets below $20,000, to empty most of my savings to pay off the last bit, just so that it’s gone and then it would take a few months to build up the emergency fund again. I’m also considering delaying putting money into my 401(k) and Roth IRA in the final stretch, we’ll see!

  5. It’s the right move as far as I am concerned. Enjoy the peace of mind of knowing that no matter what risks you take moving forward, you will never have to be homeless! Trust me… it is a VERY GOOD feeling (I know from experience).

  6. Very, very cool! Definitely spend a few minutes driving by or walking around the house after you pay it off and let us know how it feels. My bet is it feels really, really cool to take a look at it and KNOW it’s all yours!

  7. That’s so great about owning the rental outright. We hope to kill the student loans this year then go after the primary mortgage, but it’s always subject to change. I always want to do everything at once, but as long as we’re moving in the right direction, that’s the important thing.

  8. @Mrs. Pop, yep, I should be winning against Jason at Live Real Now. 😀

    @Lance, yep! Just making a decision feels good, lol. Good luck with the student loans!

    @First Gen, how have you been? I’ve missed you!

    @Sheryl, thanks! One almost down and then one to go. 🙂

    @TB, LOL, yep – sometimes I get really, really impatient and just have to do something immediately. 🙂

    @SavvyFinancialLatina, I agree.

    @Grayson, oh yes it will. 😀

    @Leigh, good luck!!!

    @Denise, thanks for always giving me great advice.

    @Nick, it’ll also be an amazing feeling to get the actual deed to go along with our two car titles, lol. Like winning at the Monopoly of life, hahaha.

    @retired, just have to get the official quote in the mail and then mail off the bank check. 🙂

    @Jane Savers, jealousy is hard to avoid, but try to concentrate on feeling good about your own debt payoff strides. That always helps me avoid negative feelings. Good luck!

    @Kim, yay, death to the student loans!

    @Tony, thanks.

  9. Congrats on beings so forward thinking and having a solid plan to get the mortgage payed off! One of the biggest reliefs I ever had was doing the same thing. To use the cliche, it’s a huge weight off of the shoulders.

  10. Congratulations! I think you made the right move. Sometimes we have to measure our financial actions not only in how much we make or save, but in how much we are motivated to keep moving forward.

  11. Woot. One less headache …. and it’s yours. Lock, stock and barrel (as they say).
    Awesome’oliamundo. Sounds like your emergency fund just got a lot bigger! 😉

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