Pay Off Your Mortgage Early and Become Financially Independent

pay off your mortgage early

This is a guest post from Pauline from InvestmentZen.com

You become financially independent the moment your investments yield enough money every month to cover your expenses. You can then decide to stop working and enjoy life, although most people simply decide to slow down a bit, while remaining active. If you are financially independent in your early 40s or even 50s, the perspective of laying in a hammock sipping cocktails all day long for the next 50 years is actually a bit depressing. But in order for your investments to cover your expenses that early, you need to focus on two things:

Spending less Saving more

The less money you need in order to support your lifestyle every month, the quicker you can quit your day job and focus on what is really important to you. Getting rid of your mortgage seems like a great idea in order to get . . . → Read More: Pay Off Your Mortgage Early and Become Financially Independent

Pros and Cons of Paying Off The Mortgage Early

pros and cons of paying off the mortgage early

The following post comes from Will who writes at Growing the Green. We share similar views on personal finance as a whole, especially when it comes to decisions about debt. I invited him to post after reading some of his views on paying off the mortgage and how different factors play into making a decision on whether to pay down mortgage debt or to pursue other investments. Enjoy!

Pros and Cons of Paying Off the Mortgage Early

A continuing discussion in personal finance is whether or not to pay off your mortgage early. Let’s take a look at some of the big discussion points and offer some insight.

Why you should pay it off early

1) Improved Cash flow

Paying off the mortgage puts you in a very powerful position. It frees up cash to make other investments that build wealth while also allowing you to live on less money . . . → Read More: Pros and Cons of Paying Off The Mortgage Early

5 Things I Learned While Paying Off My Mortgage

paying off my mortgage

Last year I spent every waking moment thinking about paying off my mortgage. “How am I going to pay this off by the end of the year? How can I save more money? How can I earn more money?” At times, it was probably unhealthy, but I learned a ton during that 2014 year, both about myself and about others. Here is a compilation of everything that I now realize after paying off my mortgage.

1) You Will Relate to NO ONE

In that first month I was extremely excited to do everything possible to succeed in paying off my mortgage. I knew it was unconventional, so I tried not to tell too many people, but I just couldn’t help it! I still remember the first guy that I told. I was at work and we were having a conversation around personal finance and debt – that’s when I let . . . → Read More: 5 Things I Learned While Paying Off My Mortgage

How I Paid Off My $54,500 Mortgage In Less Than One Year

benefits of extreme frugality

The bank no longer has a grip on me – I am 100% debt free.

No credit card debt, no student loan debt, no house debt – they are all paid off in full.

How did I get here? Through careful planning…and then through a whirlwind of hard work and sleepless nights when those careful plans went to crap. It still feels a bit surreal, but as of December 11th, 2014, I am completely debt free (and I intend to stay that way for life).

How I Paid Off My Mortgage – The Crazy Idea Comes Into Fruition

It was about one year after my wife left me. She had demanded $22,000 and I was miraculously able to come up with all of the money in just six months. Sure, I was frugal before and enjoyed saving money, but I had no idea that it was possible for me to . . . → Read More: How I Paid Off My $54,500 Mortgage In Less Than One Year

Will I Pay Off The Mortgage This Month?

I have spent the last 11 months aggressively paying down my mortgage with the hopes of making the final payment here in December. So am I going to pay off the mortgage this month? It actually looks promising! Before I get too far ahead of myself, let me show you how I’ve gotten to this point.

From the Beginning: Pay Off The Mortgage in 2014

After paying my ex the $20,000 she demanded in 2013, I realized how quickly I could actually accumulate money! This got me thinking about the mortgage I hated, and I soon began to wonder if I could make it disappear inside of a single year! To do this I would have to come up with $54,500 in 12 short months – not an easy task, but I rolled my sleeves up and dove in.

From the very beginning I cut down on my bills, spent . . . → Read More: Will I Pay Off The Mortgage This Month?

Paying Off The Mortgage: Failure or Success in October?

Unfortunately, another month has ended, which means that I have less than 60 days to pay off my home mortgage! AHHHHH! I don’t feel quite ready for this yet, but as we always do, let’s review how much I paid off in October and make a plan for a full payoff by the end of this 2014 year.

Paying Off The Mortgage: The Journey Thus Far

I made the audacious goal back in December 2013 that I was going to pay off my $54,500 mortgage in one single year. In the beginning I was fortunate enough to get a huge tax refund as well a few tuition reimbursements from my company. All was going swimmingly until May – this is when Google decided that I needed to be penalized and my monthly web earnings dropped by about 80%. This did not fair well for my mortgage payoff plans.

If you . . . → Read More: Paying Off The Mortgage: Failure or Success in October?

Paying Off the Mortgage: Failure or Success in September?

hate debt

Well we are getting down to the wire now. September is finished and there are only three months left to make this mortgage disappear within 2014! At the beginning of the year, I was indebted to the bank to the tune of $54,500 because of my mediocre home (according to society’s standards anyway – I think that it’s quite lovely) in West Michigan.

It wasn’t really a New Year’s resolution, but it just so happened that I had the thought of becoming completely debt free toward the end of December last year. And, after crunching a few numbers, I figured that it might be possible to pay off the remainder of my mortgage within just one year! And so, this crazy journey of paying off the mortgage began. Here is what I have been able to accomplish so far:

January – $54,217 February – $53,871 March – $43,524 April – . . . → Read More: Paying Off the Mortgage: Failure or Success in September?

Paying Off The Mortgage: August Progress Update

Ahhh!! The end of the year is coming so fast! This is the last day of August, which means that there are only four more months for me to complete my year-long challenge of paying off the mortgage! While this is a little freaky, I feel like I have done a pretty great job thus far. Here is the summary of what I have done from January through July:

January – $54,217 February – $53,871 March – $43,524 April – $39,999 May – $34,120 June – $31,252 July – $27,934

The Month of August

I knew that August wasn’t going to be an amazing month since I had to pay my $1,860 property tax bill, but I still made a valiant effort nonetheless. Within the month, I was scouring Craigslist for cheap cars, trying to find one that I could buy and then flip in order to make $1,000 or . . . → Read More: Paying Off The Mortgage: August Progress Update

Is The Next Housing Market Crash Coming?

Have you been paying attention to the housing market lately? Ever since the value of homes began rising in late 2011, they just haven’t slowed down! In the past few months, I have seen only a hand-full of for sale signs out in the front yard, and they certainly don’t last long. Many of these houses are being sold in 15 days, 11 days, and others in just 2 days! The housing market has certainly picked up steam, and the rising housing prices are an obvious indicator of this.

To be completely transparent, this is awesome news for me as I just so happened to purchase my first home in August, 2011. I mean, take a look at Zillow’s estimate of my home value after I made the purchase (that dollar sign is my purchase, and the solid blue line is my house value).

This chart always . . . → Read More: Is The Next Housing Market Crash Coming?

To Pay the Mortgage or Paint the House?

financial documents

I think it was two years ago already that my neighbor walked up to me, introduced herself, and then quickly asked, “So when do you think you’ll paint the house?” I was obviously a taken off-guard a bit, and eventually responded with, “Probably soon.”

I still haven’t painted the house…

My neighbor is probably sitting in her chair right now, stewing at the fact that I have not yet improved my home with a little bit of paint, but I have a dilemma on my hands! If I hire someone to paint my house for $3,500 (I got a quote last year), then I will certainly not hit my goal of paying off the home mortgage this year. And, as you all have probably gathered by now, I am slightly goal oriented (note the sarcasm) and always have a strong drive to succeed.

Thoughts of Painting the House . . . → Read More: To Pay the Mortgage or Paint the House?