So today is December 30, and I am starting to plan out how in the world I am going to pay off my mortgage by the end of 2014. At this very moment, the amount I owe the bank is still at $54,562.20 and I was hoping to have it down to $40k by now… My tonsillectomy and tuition payment didn’t help things, but I am still holding onto about $9,000 because I always seem to be surprised by what I owe when tax season comes. Here is the breakdown as I see it though:
My current total is $54,562.20
Here is my projected disposable income for 2014:
- Tuition Reimbursement – I have paid all of my tuition for my MBA, but will be reimbursed by my company in January and May, which will total approximately $7,000.
- I will likely be able to pay another $7,000 out of my savings from 2013 and live comfortably on what’s left
- My website will earn about $1,000 per month after taxes are taken out
- My new website (which is not yet complete) will hopefully earn about $200 per month (I chose a low number since it is just a brand new site)
- I will have a disposable income of about $1,000 from my day job
- Since I am paid bi-weekly, I will have an additional $3,000 or so a year in “extra” paychecks
- My regular mortgage payments of $706 per month will take $350 or so off the principle
So what does this total? After my tuition reimbursement and the payment from my savings, my mortgage will be down to approximately $40,000 (where I was hoping it would be at this very moment).
Then, after factoring the old website earnings, the new website earnings, the extra thousand dollars from my job, and the regular mortgage payments that I will make (1,000+200+1,000+350), that totals a monthly contribution of $2,550. Multiply that by 12 months and I will be able to put $30,600 toward that mortgage, which brings the total down to $9,400. Then, add the $3,000 in extra paychecks and I only have $6,400 left to dig up.
Here’s the summary:
$54,562.20 – Mortgage
– $14,562.20 – Tuition Reimbursement and 2013 Savings
– $30,600 – From monthly payments of $2,550
– $3,000 – From extra paycheck money
$6,400 – Amount of money that I need to scrounge up to hit this goal in 2014
What Is Your Advice?
So, of course I have a few ideas of what I could do to come up with this $6,400, but what are your ideas to overcome this shortfall? Perhaps it is something website related (starting a new one), or maybe there is some way that I could make some extra cash on the weekends? When you want to earn some extra money, what do you do?
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.