I seem to be having a lucky streak at the moment with 'money finds'. I had a letter waiting for me telling me that my 2005/-6 tax has been reviewed and I am entitled to an extra $2447 in super co-contributions!
Yay!! I love an election year when pollies are trying to win votes like this! It's been good for my bank balance. So that will add a bit more to my retirement funds. I will post those totals here once I get my tax done and I have all the information available.
We went reasonably well with money while we were away. We were able to get accommodation at the hospital for $40 a night including breakfast and the only other cost was takeaway food and petrol. I refrained from eating junk snack food for comfort which is what I used to do so that saved money as well.
With the sale of the coins I had enough to transfer money out of pay pal so another $217 into the mortgage account!
Here are the numbers for reaching our target of paying off the mortgage in 5 years:
Monthly payment: $3,067
Total interest paid over life of loan: $31,692
With the savings and changes we have made we are now paying $500 each week into the mortgage account instead of $250-300.
Then I have to work my butt off and my grey matter to come up with the rest each month. I am only thinking one month ahead otherwise I get discouraged. I am enjoying the challenge!
So far we are on target to hit our goals this month and maybe exceed them!
A reader asked me why I was paying the mortgage off before the credit card. The savings at this point in the loan for the house are huge. If we waited another year or two to make the extra payments it would not have as much impact as it is having now.
With the credit card I am trying to pay the minimum plus an extra $50 a week. I will record the progress to paying it off in the monthly progress report. I am quite confident that we can get it paid off in a reasonable time frame, but it isn't my priority at the moment. I know I can do that.
The mortgage goal is exciting and motivating because it is really hard and difficult and sometimes seems unachievable! Since starting this blog and writing down my goal I have become so determined to do it!
I get up every day and my mind is thinking about how I can either save money or make money without spending money. It has forced me to think about how I want my life to be in the future, and what price I am paying for debt in terms of health, happiness, freedom as well as dollars and cents.
This goal has motivated me in a way that paying off a credit card never could!
I have a clearer vision of the future I want for myself and my husband in retirement now. I think about what I will do when I no longer have to pay a mortgage any more. I will have more choices, I will have money to travel, to spend as I please. My mortgage feels like a weight around my neck and it will be gone. Gone for good.
I am not in a position to rely on any family inheritance coming my way to make my life easier as I age. It is up to me and my husband to provide for ourselves in retirement. The decision to pay off the mortgage has focused our efforts. I suppose we stopped pretending that old age, health problems and financial security as we aged would somehow sort itself out.
So my decision is a financial one and a pyschological one. It works for us at this point in our lives. It may not be the right decision for others.
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