Posted by Tim Stobbs on May 26, 2011
As it currently stands I’m about 2 years from paying off my mortgage. Yet because that date is so close to the end of 2012, I looked into the difference to finish it off at the end of 2012 instead of early 2013. Total cost was about $5500. Now given that is about 20 months from now I think I can manage to find that extra money in that time frame.
So that is what I’m going to do and try and have my mortgage completely paid off by Dec 31, 2012. Yes, I’m going to try and pay off a $68,000 debt in just 20 months. It isn’t impossible, but I know it will have some challenges as I’m cutting into my usual margin of error. So to get that extra $5500 paid off I’m going to have to either divert money from other items or just earn more. Yet the amount is still reasonable since it works out to an extra $275/month.
To get that done, I took a recent minor raise and dumped that into my mortgage payment for about $75/month (or $1500 in total). Then I am taking some extra cash from our investing accounts and moving it over as well for another $750. So without too much effort I’m already 40% towards that extra $5500 being paid off.
The rest of the extra money will now have to come from either my wife or my businesses earning more or savings on other items. While not impossible, it will provide some motivation for the next year and a half to get creative on what we do.
Now an obvious question on this plan would be: why bother? I’m going to be done in a few more months, why bother pushing it. The reason in this case is simple: I like a challenge. Saving for a long period of time is well, boring as hell, so you have to get creative on making the journey interesting at times. So this is why I think we get these odd experiments like the 100 mile diet, owning just 100 things or paying off large amounts of debt in short time frames. You won’t know what you can do unless you push yourself.
So what is your thought on the 20 month dash? Pointless or interesting? Would you ever do something similar and push yourself further than you think you can go?