A few months ago, we hit our assets goal and created a stretch goal – from $527.5k to $555.5k. This month, we hit that stretch goal so we started wondering if we should have a stretch goal for the stretch goal. Initially we thought hey, let’s try to hit $575k – $580k, but instead we decided to use any excess money from the stretch goal and put it towards our mortgage.
I know a lot of people hate on paying the mortgage early but, I find the idea of having zero debt – inclusive of mortgage – very liberating, especially if we are already doing ok with the other goals. Given the market situation, we started holding more cash, and it was just kind of sitting there. And so here is the new plan to make a little better use of that money:
Our EOY goal for assets is $555.5k, which is our initial stretch goal from a $527.5k base goal. At least $10k of this to be held as cash.
Right now this stands at $551.5k (we had already passed this but used some of the cash to pay mortgage). We are hoping dividends alone can push us through to the goal by end of year providing market stays, we shall see.
Mortgage Debt Goal
Our new EOY mortgage balance goal went from $98k to $76k. This essentially puts us two years ahead of home pay off schedule, leaving about 6 years left of payments.
We still have to make an extra payment of $10,200 to hit the goal, which we should easily achieve with regular savings from income in the next two months, though I will reduce this if market pulls assets down and I have to put money there instead.
Now, that will be a stretch for sure, but fun to see how close we can get.
Crossing the $500k mark earlier this year felt like a big turning point and it is getting easier and easier to get into the habit of just saving and not worrying about it. I am very much enjoying the process and progress.
What really surprised me also, is how much joy making extra payments to the mortgage brought me. I mean, I thought it would be nice but I can see why people do this even if not THE best financial move always. I did a little happy dance with a nerdy grin when I realized the end is closer than I thought – at least for now.
Finally, I am doing so much better at ‘flowing’ and not worrying about what I cannot control. This has resulted in actually checking my balances a lot less often and most importantly no worrying about if we will go down to one income or not, market downturn, etc. Of course, ask me again when / if that actually happens, see how well my bold claims hold water :).
How about you? Have your goals changed a bit as you close the year? What is your feeling about extra mortgage payment?