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Paying Off The Mortgage Update: July 2014


My goal starting in January (just 7 months ago) was to pay off my entire $54,500 mortgage by the end of the year. Yeah, it was a pretty lofty at the time, but I figured that if I pushed myself hard enough, I could accomplish this goal. Well…with a website downgrade from the Big G, the money hasn’t been flowing in quite like it used to, but you know I’m not going to let that stop me! The mountain has seemingly grown a little taller (which really sucks because I was already halfway up…), but I am still continuing my climb. This is a summary of my progress thus far:

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

Through June, I had paid off over 56% of my total mortgage (which was $70,875 back in August, 2011). That means I’m over halfway done! However, this also means that I still have 44% to go before I have the house completely paid off. This climb only seems to get steeper and more painful as time goes on, but I am pretty crafty and continue to come up with new ways to put money toward this debt. As crazy as it sounds, I think I still have a chance to pay off this balance by the end of the year!

Let’s see how well I did in the month of July.

The Mortgage Payment in July

If you recall from my mortgage payoff post in June, I needed to come up with $4,317 in July to keep pace with my proposed mortgage payoff plan. First of all, that is a crap ton of money! Secondly, I discovered that my property taxes were coming due in July as well, which meant that I actually had to earn around $6,117 to keep up with the pace needed to accomplish my goal. Well goosh, this number almost had me quitting before the month even started.

If you know me at all though, you know that quitting isn’t often an option. When I realized that my taxes didn’t have to be paid until August 15th, I started to feel as though my July goal was possible. I started looking for ways to earn that $4,317.

I first started to look for things to sell around the house. As it turns out, I really don’t have that much stuff laying around, which made this pretty difficult. However, I was still able to sell a bolt of fabric, a vacuum, and a towel hook for a total of $50. The sale of these items was obviously not all that helpful, but $50 is still $50, and it’s more than I had before I sold them.

After realizing that I didn’t have thousands of dollars of items to sell, I started thinking about this whole car flipping idea again. If I could find an undervalued car, buy it for cheap, then clean it up and sell it for a thousand bucks more, I could get pretty close to this July goal.

I first found a Jeep Wrangler that was for sale for just $6,000 (which I probably could have bought for $5,200 in cash), but I quickly  talked myself out of it because of the high miles. It would have just been too difficult to sell. My second possibility was a 1997 Honda Civic. The selling price was $2,000, which was a little high for a car flip, so I offered $1,400 in cash on the spot. I thought we were going to make a deal on this ride, but ultimately he decided to keep it rather than sell it for such a small amount. So, in the month of July, I unfortunately was not able to find a car to flip, but I will keep looking because I think I will most definitely need the extra cash in August.

While I wasn’t able to make all that much extra money (with my site earnings or the car flip), I was able to keep my spending at bay and scrounged  up $3,415.42. Not too shabby. This brings my mortgage down to approximately $27,936. We’re getting there, but unfortunately, we’re falling behind on the goal pace.

7-31-2014 12-35-13 PM

Next Month: August 

Alright, so I am barely losing when compared to the orange pace line shown above, but August is going to hurt pretty bad. In the next few days, I will pay my $1,850 property tax bill, which will obviously hurt my August payment by quite a lot.

My goal for August is to pay down my mortgage by $1,436, which will bring down my total to $26,500. This definitely won’t help me keep up with the orange line, but at this point the $1,436 is a stretch goal and I will really have to push just to meet that.

As I always say, I do have a $15,000 reserve that I can use (if need be) at the end of the year. So, in theory, if I can get my mortgage to $15,000 or below, then I can make the complete payoff by my deadline.

Whew! This year has been tough and looks to be getting tougher! Any advice? Praise? Questions?

Get Out of Debt Housing Mortgage Payoff


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.


  1. WOW, that is AMAZING. I mean just look at what you have done so far. You should be very proud. I am proud of you. 🙂

    • Thanks bobbi! Sometimes I forget about how much I have done, because I’m only looking at my future goal coming up in December. I’m running out of time!! But, I sure will be close. Hopefully I can make it happen.

  2. Laser focus for sure! I still wouldn’t beat myself up if you don’t make it, but it would sure be sweet if you do.

    • It sure would be sweet wouldn’t it! I can’t wait to see how close I can get.

  3. I think it’s great how you go out on a limb to reach your goals. In some silly way I read your story and envisioned you doing all of that in my head. The car flipping, selling stuff etc. I wish more people would put that much effort into their finances each month rather than giving up. Well done mate… you’ll reach those goals I have no doubt in my mind.

    • Haha. Sometimes it doesn’t feel like I am working as hard as I could (for instance, I went away on vacation this past weekend and did not work for extra dollars at all). But, now I am back and ready to keep pursuing my goals!

  4. That’s a good point Bobbi made and I tend to do the same- I get so focused on the goal that I forget to reflect on how far I’ve come! That reflecting is usually a huge encouragement to keep working on the goal. I think you’re doing a great job of working hard but not letting it become a burden that keeps you from enjoying life. Keep up the great work!

    • Thank you for the compliments Jessica! At this point, I have paid off nearly $27,000 off from my mortgage this year. That is pretty incredible! I will almost certainly be able to bring that total to over $40,000, and even if I don’t hit my overall goal of paying off $54,500, I will still have accomplished a ton! Thanks again for the encouraging words!

  5. Awesome work! I can’t even imagine my mortgage being paid off in the next 20 years, let alone this year!

    What’s the plan for the cash flow once the mortgage is paid off?

    • Whoa. I think I’d go nuts if I knew I’d be making a large payment every month for the next 20 years (but that’s just me of course). By dumping all of my debt, I should be able to save up $4,000 every month, which means that I will have an extra $48,000 each year! At this point, I am planning to buy real estate with cash. These homes will be fixer uppers that I will remodel and then rent out for many years to come. With the rental income, my monthly savings will increase to $4,800 or so, and then $5,600, and then $6,400, and so on (the numbers get quite large in a hurry). So stay tuned, because I’ll be writing all about it! 🙂

  6. If you don’t reach your goal by the end of the year, DO NOT consider it a failure. It’s not about the result as much as it’s about the journey and the process. If you hadn’t set a BHAG like that, you never would have come as far as you have! Keep striving for the goal. At best you’ll reach it. At worst you’ll come darn close and just be off by a few months.

    • Great point Matt. I will try to keep that in perspective come December. I might miss it by a few thousand, but I am going to fight to the end! If I miss it, then I will just reset the goal for January or February. 🙂

  7. Pretty amazing Derek! I know you like to reward yourself after a BIG HUGE accomplishment like this. Keep me in mind when you have your reward planned. You’re very fortunate to be getting this far ahead financially at this point in life. Well done!

    • Thanks for the encouragement Tom! So you want to go on a trip or something? Is that what you’re hinting at? 😉 In all seriousness though, I always appreciate these encourage comments. Keep them coming as I start heading into the home stretch! 🙂

  8. This time next year we will be reading all about the rental property you are buying. 🙂
    Nice work!

    • I like the way you think Joy! And you’re probably right! 🙂

  9. Go Derek, go Derek, go, go, GO!!!!!

    You’re almost there and you WILL make it. Yeah for you!!!!!

    • $27k more to go! I still have some crazy saving to do, but it feels like I’m going to get pretty close! Thanks for the cheerleading! 🙂

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