Paying off the Mortgage October 9, 2010

 

I am striving to live a debt free life.  I am focusing on getting my mortgage paid off while balancing expected and unexpected debt that pops it ugly head in our lives.  The one thing that has helped us.  I pay extra on my mortgage, always have.  This is one of the more important  suggestions I can make to all folks who want to pay off their mortgage faster. 

I am blessed that we can almost survive off one income and have the second income at our disposal.  I said ALMOST!!! 

In May, we refinanced our 11 year 1^st (6.0%) 2^nd (6.25%) mortgages into our 7 year 4.25% first mortgage.  Our monthly payment went up of course but that is 4 YEARS! Worth of savings to us.  This ended up saving us roughly $25,392.  WOW!

I am paying any extra I can to help get this debt down to 5 years.  I am paying at minimum to the next $1,000.  Meaning if my principal payment is $727 for the month of November I am paying at minimum $273 worth of extra principal. 

Every time I think I figure out this game of debt I get an unexpected twisted.  Little Farmer at the age of 7 is having some orthodontic problems.  At least this debt is interest free.

To keep our finances in check, I have a weekly budget.  I only have a few categories which include Groceries, gas, lunches, fun, babysitter, and household goods.  If there is any left over from the week before it automatically goes to the savings account. 

I also use coupons for groceries and household goods.  I am better at shopping the sales than using coupons but I do use them.  I am contentious about what we spent too.  If we don’t have a use for it, we do not buy it. 

 What do you do that helps you save money? 

 XO,

Becky