Paying Off the Mortgage Update: June 2014

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Ever since I bought my house back in August, 2011, I have had the intention to pay it off early. Well, then life happened… (we’ll leave it at that). But, as of January, 2014, I have refocused my energies toward this house pay-off! In the beginning of January, I owed about $54,500 on my 3 bedroom, 1.5 bath home, and I planned to pay off the total amount by the end of December, 2014 (yes, this year!). Here is how the payoffs have gone thus far:

  • January – $54,217
  • February – $53,871
  • March – $43,524
  • April – $39,999
  • May – $34,120

The balance has definitely been coming down! In five short months, I have paid off over $20,000 worth of debt. Hopefully I can keep this train rolling!

The Mortgage Payment in June

In my last post, I did not expect to pay all that much to my mortgage debt because I thought property taxes were on the way, which would have been an $1,800 bill or so. Thankfully, those taxes did not yet come so I did not need to take that hit in the month of June (but I’m sure I’ll see them this month so I won’t get too excited just yet). However, I did have to pay my quarterly business tax of $850, so that did hurt a little.

The budgeting in June (as you can see in my previous post) was amazing. I did not need to fuel my car at all (thanks to my bicycle) and my utilities bills are finally low again. Outside of my business tax, I spent less than $1,000 in the month. That’s pretty incredible! Think of how cheaply I could live if I didn’t have a mortgage!

I kept my expenses low in June, but I also worked my butt off to earn a decent side income. One of the major ways I planned to increase my income in the month of June was to write articles, and boy did I! In just that single month, I wrote 64 additional articles (on top of the articles that I write for this site). In total, I think I wrote about 75 articles, which probably equates to about 45,000 words typed in one month. Phwew!

My loan balance at the end of May was $34,120. With my minimal spending and my extra efforts writing, I was able to put another $2,868 toward the mortgage and bring the balance down to $31,252.

mortgage payoff June 2014

That Dreaded Orange Line

At this moment, I am still technically below the orange line, which is the payoff pace I need in order to achieve my house payoff by the end of December. With my property taxes still on the way, I am not feeling all that great about this position on the chart. In order to stay below the orange line in July, I need to pay my mortgage down to $26,936, which means I need to come up with $4,317…Yikes….

So if you factor in those $1,800 property taxes, I need to find $6,117 of additional money. I’m all about optimism, but this simply is not going to happen. I need to start calculating what is necessary for the long term to figure out if I’ll have enough to make the payoff by December.

Month-to-Month Projections

By keeping my expenses low and by continuing to write articles (by the way, if you need more articles written, let me know!), here is what I can expect to accomplish in the upcoming months.

  • July – $30,000
  • August – $27,500
  • September – $26,000
  • October – $22,000
  • November – $19,500
  • December – $17,000

Based on my projections (by continuing to do what I’m doing), I can realistically pay my mortgage down to $17,000 by the end of December. If you recall, I do have a $15,000 cushion in my savings account that I could use toward the payoff, but I certainly don’t want to use it all since this is technically my emergency fund. At most, I would feel comfortable putting $10,000 toward my mortgage, which would put my mortgage number at $7,000. It’s respectable, but it does not allow me to hit my goal. I need to figure something else out.

Can you think of ways that I could increase my earnings each month? Any advice is welcomed!

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Money

Derek

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

30 Comments

    • Awesome! You’re going to put me to shame aren’t you…? πŸ˜‰

  1. You are really doing a great job and should pause for a brief second to commend yourself for what you have been able to accomplish! We are on the same goal though not as speedy as you to get our home paid off and are looking harder out what we spend our money on.

    Is there any chance you can expand more of your writing to increase cash flow? Anything left to sell?

    • There might be a few things to sell in my house. Probably only $100 worth or so though – but it’s something! I will take a look tonight. There also is a book that I wrote a couple of years ago that I might try to improve and sell.

  2. Derek, You are doing a great job!! You will get there, I just feel it!!

    • I hope so. I have a couple of ideas that I could implement by the end of this month!

  3. Derek, you could always flip a couple more cars. You do pretty well with that!

    • Thanks JD. I have been looking at cars, but that amazing deal just hasn’t come along yet. I’m sure I will have a couple more that come along before the year is over though.

  4. Way to go Derek!

    • Thanks Joy! Hopefully the income will continue! I am definitely doing some brainstorming lately to figure out how I can make it by December.

  5. Yay! Now that you’re done with school do you have any books or materials you could sell? Maybe another look around the house would lead you to a few things you could sell in amazon or craigslist.

    • I do have some books. I thought I would use some of them, but I really haven’t – so yeah – maybe I will try to sell a few of those. Thanks!

  6. You are doing a great job!! Maybe it’s time to think ahead. You have lawn mowing for the summer, but what about fall and winter? Maybe start brainstorming some ideas for how to cash in during future months. The more time you spend thinking now, the better the chance you have of coming up with something good.
    Jon @ Money Smart Guides recently posted..Benefits Of Paying Off Debt

    • I have a book that I wrote a while ago and really didn’t promote. I think it’s time to resurrect it, add some audio and speaking material, and sell it for a nice profit. I still have a lot to learn about how to sell it, but it’s an idea at least.

  7. Go Derek, go Derek, go, go GOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!

    You’re so damn close. Mega Congrats to you! Even if it takes a few more months – so what! It’ll be here so damn fast it’ll make your head spin (ha! a parental saying from the 60’s).

    You should be so proud of yourself!!!!! We are!

    Best of luck.

    • Thanks Mrs. Jim! I love the encouragement and you’re right. Even if it takes me 2 extra months, it will still be gone in no time (although I still do intend to push it to get it done by December)! πŸ˜‰

  8. I have been without internet access for a few days (traveling & moving), so I was running a bit behind. I just wanted to say that the articles you wrote for me (budgetingfortherestofus.com and choicetraveltx.com) were both excellent. I would highly recommend your article-writing to anyone.

    Oh, and I will be wanting more fairly soon!

    • Thanks for the compliment Howard! More article orders would get me closer to my overall goals of paying off my mortgage. Can’t wait to complete some more for you. πŸ™‚

    • True, but I’m still going to push for December! That will be way more fun. πŸ™‚

    • The way I figure it anyway – yeah, need $7k. I’m reworking my book and might start speaking a little bit. I definitely need to get things rolling soon though to give myself a chance.

  9. Good job Derek, you really had a good result with your minimal spending and your extra in writing. I’m trying to keep my expenses low and currently I still failed to do it.
    Kate @ Money Propeller recently posted..Work Desk Essentials

    • Well if you want to see a budget fail, check out my January budget post. I think I was a couple of thousand dollars over budget. Just keep working on it and it will happen for you! Thanks for reading!

  10. Derek,

    Your articles have been inspiring. I am not much of an entrepreneur so I was wondering if you have a list or some ideas of ways to increase income. Unfortunately I do not have a bachelors degree only an Associates degree which is in liberal arts basically general studies. My job is at a University (30,000) and I officiate, referee and umpire different sports throughout the year. Trying to study up on “how to’s” since I haven’t had much luck with flipping cars or selling things.

    Thanks!

    • Hi Brandon. Sure, I’ve got about 101 ideas! Lol. A few years back I wrote a book wrote a book called, “101 Ways to Make More Money”. Here’s the page that will get you to the free download – https://lifeandmyfinances.com/make-more-money/ . πŸ™‚

    • Thanks for the compliments Evan! True. I think if I leave at least $3,000 in there I should really be fine. It should move up about $3,000 per month anyway – maybe even faster without that mortgage payment. πŸ™‚


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