Our youngest child should be graduating high school in 2027. If we send an extra $1350 a month to our mortgage we'll be debt free by 2027.
We'd shave off a total of 21 years and 9 months from our mortgage and save $95,600 in interest.
The only other debt we have is a car note that should be done in about 5 years. Even with the car payment, we can still save $1600 a month up until graduation. That's assuming my business income doesn't increase (which it is). The pandemic has really given my business a boost. (Appliance repair business - pretty recession proof)
In 7 years we'll be debt free and have a disposable income of around $5,000 a month. Our expenses will also be lower because one of our kids should be out on their own and the other on their way out.
We'll have saved around $98,000 in interest payments between the house and the car and at $1,600 a month in savings, we should have around $130k saved. If prices continue appreciating in our area at around 3.8% as they have been, we should gain around 30k-50k in home equity as well.
We can also sell the home and pay cash for something smaller for just me and my wife. Hopefully by then I'll be in a position to sell my business and we can travel more often.
That's the dream.
I know it sounds very slow lane, but I don't know much about investing so this is the only plan I can come up with at this moment that makes sense to me and that I can understand. At least until I educate myself better on how to properly invest our money. I figure paying off debt is better than letting our money sit in a bank account getting eaten up by inflation.
Thoughts?
We'd shave off a total of 21 years and 9 months from our mortgage and save $95,600 in interest.
The only other debt we have is a car note that should be done in about 5 years. Even with the car payment, we can still save $1600 a month up until graduation. That's assuming my business income doesn't increase (which it is). The pandemic has really given my business a boost. (Appliance repair business - pretty recession proof)
In 7 years we'll be debt free and have a disposable income of around $5,000 a month. Our expenses will also be lower because one of our kids should be out on their own and the other on their way out.
We'll have saved around $98,000 in interest payments between the house and the car and at $1,600 a month in savings, we should have around $130k saved. If prices continue appreciating in our area at around 3.8% as they have been, we should gain around 30k-50k in home equity as well.
We can also sell the home and pay cash for something smaller for just me and my wife. Hopefully by then I'll be in a position to sell my business and we can travel more often.
That's the dream.
I know it sounds very slow lane, but I don't know much about investing so this is the only plan I can come up with at this moment that makes sense to me and that I can understand. At least until I educate myself better on how to properly invest our money. I figure paying off debt is better than letting our money sit in a bank account getting eaten up by inflation.
Thoughts?
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