Most people who visit this blog want to know how I paid off my mortgage in 2 years. Below, you’ll find answers to some frequently asked questions.
You may also be interested in 6 STEPS TO MORTGAGE FREEDOM, a comprehensive post about how I reached my goal.
WHAT WAS YOUR ORIGINAL GOAL?
To be mortgage free by my 30th birthday, March 2015.
WHEN DID YOU PAY OFF YOUR MORTGAGE?
I paid off my condo in December 2012, 2 years and 2 months after I bought it.
HOW MUCH WAS YOUR DOWN PAYMENT?
20% to avoid paying PMI or Private Mortgage Insurance.
WHAT TYPE OF MORTGAGE DID YOU GET?
15-year fixed at 3.75%.
WHAT WAS YOUR MONTHLY PAYMENT?
$625 before additional payments.
DON’T YOU REALIZE YOU COULD HAVE MADE MORE MONEY IN THE STOCK MARKET?
Yes, perhaps. Though I don’t think I would have saved as much if I hadn’t set a goal. I probably would have spent a lot of the money on other things.
ARE YOU RICH?
No. In fact, I am a former high school dropout. My first job out of college paid less than $25,000 a year. Even then I was able to live within my means.
HOW DID YOU MAKE MORE MONEY?
- I volunteered for extra work at my full-time job, averaging 10 hours a week.
- I was a banquet server and bartender during the fall wedding season. Bonus: I got to sample a lot of wedding cake!
- I found pet sitting opportunities on Craigslist.
- I maximized bank and credit card sign-up bonuses and rewards. I earned nearly $3,000 in 2011 alone.
WHAT IS THE BIGGEST EXPENSE YOU CUT BACK ON?
I made a conscious effort to reduce all areas of spending, but my travel budget was cut the most. I did sneak in a trip to Costa Rica in 2012.
HOW DID YOU TRACK YOUR SPENDING?
HOW DID YOU PREVENT SAVINGS FATIGUE?
There were times of fatigue, but I kept focused on achieving financial freedom and established a rewards system along the way.
For every $5,000 I paid off, I allowed myself $100 to spend on whatever I wanted.
HOW HAS YOUR LIFE CHANGED?
There’s a great sense of freedom when you’re mortgage free. It allowed me to walk away from my full-time job in January 2014 to pursue new opportunities.
DO YOU THINK YOU MISSED OUT ON ANYTHING?
Not really. I’m not an extremist. While I was able to earn more and spend less, I didn’t let it consume my life. I still bought things, just more consciously.
HOW DID YOU CELEBRATE?
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