Are you focusing on being completely debt free like me? If you’ve taken care of your credit card, student loan, and car loan debts, then you are probably trying to take a bit out of the biggie: the home loan. Fortunately, I didn’t take out a large loan for this house since it was a fixer-upper, but $70,000 is still a lot debt to try to get rid of.
I was incredibly motivated at first, putting $2k toward the loan each month, but then the divorce happened… That was almost a year ago now. Suddenly, instead of putting my money toward the house loan, it was going to my ex. Now I’m trying to get focused again, but it sure isn’t easy, but I’m sure you already know that.
Most of you know that I have a goal to pay off my house loan by the end of 2014. This means that I’ll have to reduce my mortgage to $40,000 in the next 3 months to even have a chance at paying it off next year. And, in order to get my loan balance down to $40k, I’ll have to do something miraculous. Here is how my house payoff has gone so far (tracking back to its purchase in 2011).
My Old Plan For Paying Down the Mortgage
Because of my not-so-awesome circumstances, my payoff has really planed out. But, it’s time to make that all change! If I just continued to make my normal payment of about $700 a month, my mortgage balance would be at about $54,500 by the end of this year. If you recall from a couple of months ago, I had a plan to pay this amount down substantially. It consisted of:
- Saving my regular income aggressively
- Flipping two cars for a profit
- Starting 10 new websites and selling them (for at least $5k total)
While this was a pretty solid plan, I just haven’t gotten around to creating those sites, and quite honestly, I’m not so sure if Google will ever be doing a PR update again, which would make it very difficult to sell. As for the cars, I have been looking around for some to flip, but ideally I would drive this car while I was selling it, which means that I would most likely be getting much worse gas mileage than my 37 mpg that I’m getting right now. So, is it really worth it to do this? Only if I find a super amazing deal, and I’m not so sure this is going to happen in the next month. So that leaves me with paying down my mortgage with my regular income and my website profits.
My New Plan For Paying Down the Mortgage
To be completely honest, my new plan is not air tight. I’m not so sure if I can get my mortgage down to $40k by the end of December, but if I’m close, that will still be an accomplishment, right? Here’s the breakdown of the new plan.
- Save my regular income aggressively
- Increase my current website income
Haha. Pretty elaborate plan huh? 😉 Well, so far it has enabled me to save about $5,000 already that I could put toward the house, and with some conservative estimates, I could save another $6,000 in the next three months. That would get me down to about $43,000. If I do find an amazing car flip, then that would get me amazingly close to the $40k goal.
How Will I Increase My Web Income?
Now that is a good question. Currently, my site load time is pretty poor, and I feel like Google is penalizing me for it. I have worked very hard in the past couple days to speed it up, and within the next week I plan to get on a dedicated server with my iPage web host. This should not only attract repeat visits from my readers, but it will put me higher in the ranks of the Google Search.
As usual, thanks for visiting and spending time here on my site! If you’re looking to learn more about personal finance, perhaps you’d like to read these posts from my PF friends!
How to Build Passive Income For Financial Independence at Financial Samurai
Does $1 Million Dollars Make You Rich at Eyes on the Dollar
Do You Plan or Plan to Fail at Krant Cents
Fall Finance Tip: Improve Yourself at Making Sense of Cents
Why You Should Track Cash Flow at Free Money Finance
Negotiating for Non-Negotiators at Average Joe’s Money Blog
The Great Lengths Scammers Will Go to Screw You at Stumble Forward
6 Flea Market Shopping Tips That Will Save You Big at Frugal Rules
When I Grow Up I Wanna Be Average at Cash Cow Couple
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.