Do you have a goal to pay off your home more quickly? This has been a dream of ours for years. Today I am giving you the formula to create baby steps to achieve your ultimate dream.
As I write this we have this goal currently with the hopes to pay off our home by the end of this calendar year. This goal has been front of mind since we bought our first home and we have done very specific things to make this goal achievable.
It is looking like it is going to happen and we want nothing more than to help you reach your goals too! Paul is a big fan of Dave Ramsey and his book Total Money Make Over, which has been a big part of our success simply by keeping our goal front of mind and be inspired by those that have gone before us.
Create an envelope system, even better, make it digital.
First things first, take time to get a clear vision of your income and monthly fixed expenses. Identifying where you can make changes will be in your extras like: entertainment, eating out, and shopping. Set an amount for each category and check in weekly.
This technique isn’t the easiest thing to do especially in a world made of credit cards and quick swipes. That is why I love Qube Money because it allows the flexibility of a credit card and the accountability/awareness of the cash system.
It is set to exist at zero, which means with each dollar you bring in you assign it a job. Before you pay you open up the app to check where you are before making your amazon purchase, your gas purchase, or your shopping trip.
Learn more about how to assign your money a job HERE.
Use that raise to make a crown
If you find yourself in a position where you get a better paying job, or a raise, put it toward your mortgage. Putting this extra cash towards principal will accelerate your ability to pay off your home years sooner. Even better? Make bi-weekly payments!
By making bi-weekly payments you actually end up making two extra mortgage payments in the year which in turn results in HUGE pay offs with paying down your principal and interest.
You would be shocked to see what an extra $100 can do over the life of a loan. Not sure what I mean? Check out this free amortization schedule to see what a little extra cash will do for paying off your home!
Be Smart with Your Returns
Use any extra bonuses, tax returns or stimulus money to pay down your mortgage. This is money that you weren’t necessarily planning on. If you have a hard time saving consider having more taxes withdrawn through the year which will ensure a higher return.
It is really easy to get used to the idea of using that money for something fun and while that isn’t always a bad idea, it is amazing what discipline can do.
Consider setting a certain amount aside BEFORE the cash comes in so that you aren’t dependent upon it.
If you are needing a better snapshot of your overall goals this is where
Pay attention to Rates
Your interest rate is a big piece in how early you can pay off your home. If you are planning to stay in your home for more than 3 years and the interest rate is at least a half a point lower it is worth looking into a refinance. If you can afford a shorter term DO IT! A 15 year mortgage requires so much less interest over the life of the loan and you can snag a lower rate than the going rate for 30 year loan.
Chart your Progress
Make paying off your home an obsession. Check in with your payments weekly and watch the balance go down. Even better? Have a weekly budget with yourself and a chart you can mark off and you pay off your home.
Looking for more support? Let’s make a plan!
One of the best places to start is to create a steady foundation of understanding your financing.
Utah Money Moms has a course available for helping you discovering how to reach your goals.
Discovering your why is the starting point for being successful with your money.
In the course we will walk you through:
- Identifying your why (worksheets and video how to included)
- Working with your spouse or partner to identify their why
- Creating your financial why statement
- Creating a financial vision board
You are better prepared to set financial goals that meet your needs and address your most important financial desires when you have a financial why statement and a visual reminder of what your are working towards.
The purpose of this course is to empower you to make smart financial decisions in line with your values and goals. Often people (and especially women) don’t feel that they have the knowledge, tools, or resources to be successful when it comes to managing money. This is a self-paced course with worksheets and videos that will help walk you through mastering your money.
The course includes:
- Finding out your why
- Identifying your money Habits and attitudes
- Budgeting and tracking expenses (even through transitions)
- Managing debt
- Understanding Credit
- Savings Money
- With bonus modules on Insurance, Investing, and Homeownership
Testimonials for the PowerPay Master Money Course
“What an amazing course! I wish I had been able to take this when I was quite a bit younger. Gives me much more confidence to work towards financial freedom and I’m excited to share this with my kiddos so that they will have a greater advantage when starting out on their own.”
“The PowerPay Money Master online course was an extremely useful tool and has helped me revisit my financial plan involving saving for a home and being more financially astute and frugal holistically. I would recommend this course to friends, family and anyone who is serious about improving their financial health and money management awareness.
So many great resources! The worksheets allowed me to not only learn about the principals that were being taught, but physically incorporate them into my own financial journey! I also loved how there were additional resources at the end of each module, allowing me to continue to learn about the topics that were most interesting and beneficial for me.”
Join us live Thursday, April 8th 2021 at 11:00 AM MST. We will be discussing how to help you save and pay off your home!
I created a mortgage pay off chart as this helped us reach our goals more than anything! Fill out the form below to claim yours for free. Make it your own by choosing what each house represents. There are 180 houses on each page, this translates to 60 months or 15 years. Cross off or color one home per month, or print off the smaller chart to focus a month at a time!
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