Now that we have started to get our finances on track it is time to start looking at what we can do with any cash we have after paying all our bills and paying money into our retirement fund.
One of the things we want to look at doing is paying extra payments into our house as a minimum we really want to be paying off at least one extra monthly payment a year but if you can afford to pay off more it will mean that your house will be paid for that much quicker and you will be able to become totally debt free. By doing this you not only own your house, but you also save a lot of money on interest payments that you no longer have to make.
Many people at this stage may choose to invest their money in things that will increase in value or provide an income that is higher than the interest that they are paying their bank as a percentage of interest on their mortgage. They are therefore hoping to earn more money from this than money that they are going to pay the bank. However, they may be forgetting that by instead of paying off their mortgage they put this money at risk by investing the money and could lose a good chunk of the money. You do need to consider the risk and you therefore may be best paying off your mortgage.
Once you have paid off your house it will also free up even more cash for you to use on other things or to add to savings for your future and the future of your family.
The other thing with doing this is that you will from this point always own your home and no one can really take this away from you.
Once you have paid off you mortgage you can finally call yourself debt free and it means that you can forget about housing costs for probably the rest of your life and since housing costs is almost always a person’s biggest costs.
There are plenty of other reasons to pay your mortgage off earlier, but we can look at these another time in another post.
I know this is one of our main aims at the moment to pay off the mortgage and become totally debt free. Let us know where you are in your financial success journey.
The Normal Person