I have vowed to pay off my mortgage by the end of this year, 2014. At the end of February, I still owed $53,800 to the bank, which is a huge amount (to pay off in a year anyway), but I still think it’s possible.
Paying Off The Mortgage: Money Windfall in March
I expected March to be good to me, but not this good. If you remember my post, “Paying Down the Mortgage: My Successes and Failures,” you probably recall that I expected to receive about $3,000 back in taxes, get about $3,000 in insurance money, and I expected to sell my Malibu that I was flipping for $6,500.
Well, I got a little soft-hearted and sold the Malibu for only $6,000 (but still made a $650 profit), and my insurance check was as expected for approximately $2,850, but the tax return left me a little speechless. In fact, it was actually a little embarrassing.
I had a fantastic year of blogging income in 2012, which left me paying in a ton of taxes (like, over $4,000), so I definitely didn’t want this to happen again. In 2013, my income slowed down a bit, but I kept paying in the normal tax amount for fear of underpaying. Well, I definitely did not underpay this time. Instead of owing money at the end of the year, my accountant informed me that I was going to get $4,700 back from the government due to my tax over-payment. Yikes! It’s great to receive the inflow of money, but I really wish I didn’t allow the government to use my hard-earned money for free all year. I probably could have handled it much better myself. 😉
So, with the $4,700 tax return, $2,850 from the insurance company, and $6,000 from the car flip, I ended the month with quite a beefy bank account. Because of this, I decided to put $10,000 extra toward my mortgage, which leaves me owing $43,500 to the bank yet.
The Outlook for the Future
Next month will be a normal one with no large inflows of money expected. However, I have been earning quite a lot with my website lately, so as long as I keep my personal expenses down and continue to earn my normal income from my full-time job, I hope to make another sizable payment, which might just bring my mortgage below $40,000. That would simply be fantastic!
I have another opportunity to make a large payment in May. Since I get paid bi-weekly, there are two months out of the year where I actually get paid three times (instead of the normal two). My first triple payment month happens to be in May this year. On top of this, I will also be receiving a reimbursement for my college tuition from my company. With this fortunate month of May, I hope to drop my overall house payment below $30,000. From there, it may be a struggle to keep up with that orange line, but I am going to give it my best! I want nothing more than to get rid of this debt and to show all of you that it is possible!
Are you cheering me on as I pay off my mortgage?! Comments and personal emails are welcomed! 🙂
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.