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How Long To Pay Off 70000 Mortgage – Today we have a great story to share from reader Samantha Brandon. In this way, her family paid off a debt of $70,000 in 7 months. Like others, the pandemic is making us pause and review our lives. We were lucky. There are decent paying jobs (I’m a pharmacist…
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How Long To Pay Off 70000 Mortgage
Today we have a great story to share from reader Samantha Brandon. In this way, her family paid off a debt of $70,000 in 7 months.
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We were lucky. We have decent paying jobs (I’m a pharmacist and my husband is a maintenance manager). I was lucky enough to buy a house in late 2019 before it hit the market.
I know what some of you are thinking. How to earn a six figure salary and still live paycheck to paycheck?
That’s easy. It is a nursery for two children; Student loans and some public debt in a Sun Belt city where the cost of living has skyrocketed.
I’m sorry but I can’t. I wouldn’t leave all my family and friends to save money and move to another city with a lower cost of living.
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So here we are. A 15-year-old truck; 7-year-old Nissan Murano; A house below our “means” but a six-figure living wage for it.
I’m a firm believer in taking control of your future, so we made some tough decisions and got down to business.
Ah, financial day. If you’re a parent, you know there’s nothing you can do about kids running away.
So if we take it seriously, we know that it takes six hours as a single parent to get our finances in order.
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Yes, there are plenty of apps that can do this dirty work for you. But there is something different about doing it yourself.
To get an accurate cost of how much we spend per month; I checked all our bank accounts and credit cards for the last 3 months for an accurate picture.
Going through our accounts in real time, we include all “permanent” invoices as follows. Although we already have a “budget” sheet that we use. It’s good to make sure we have the right amount. We’re surprised that some bills, like car insurance, have changed since we last checked.
You can break things down any way you like, but we have household expenses; Necessities and luxuries have fixed costs.
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One of the biggest things we’ve discovered is that we’re paying for subscriptions we don’t even remember. They are written in a separate area to be deleted later.
Another thing to watch out for is “costs”. Usually, we estimate food, shopping, and other living expenses. But its purpose is to get an honest and truthful account of our spending habits. So we closed two of our bank accounts in the last three months; I scored them all with a credit card and an Amazon account.
You can add different categories than we do, but that includes Grocery, Food, Kids, Home, Personal Medical, Other (birthday parties, gifts, etc.); That is saved as overhead for later costs.
Again, don’t forget that Amazon account. We can add up your monthly spend, but it’s best to look at what you buy and allocate accordingly. We realize that we spend too much on things we don’t really need.
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Once you’re done, add it all up and divide by three to get an accurate monthly budget. Now, that’s where adult drinking comes in, and we’re pretty excited. We are not big spenders; Life seemed so expensive. Five years ago, we were terrible at wearing the same clothes and taking care of ourselves; We don’t have fancy cars; Or you’ll feel like you’re dining in a five-star restaurant. But our monthly expenses are very high.
My husband and I eat more than we should, but twice a week. We have two date nights a month, but if you add in babysitting and Uber, we easily spend $200-300. We feel like we live as frugally as we can, but we still spend about $2000-3000 a month on living expenses.
After the necessary meal break, I took the numbers from the “expenses” sheet and transferred them to the “living expenses” sheet.
Finally, student loans; The reason we group debts like auto loans and medical loans. One category is that we hope to eliminate them entirely from our budget in the future.
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Meanwhile, we realize that we no longer have balance. I was actually on $100 a month, so I was spending more than I was bringing in. We know this is not a long-term solution to meeting our goals and investments, and before we talk about ROTHs or estate growth, we need to conquer our debt quickly.
Update: I forgot to include preschool as a required budget. At $2,500 a month, that was a big hit for us.
Well, I offer no analysis of this; But basically, add up all your debts and write down their interest rates.
So our total debt excluding mortgages and student loans is about $70,000. We don’t include them because they have a long term payment plan.
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Now, if we add to our debt, we won’t open our eyes. We live paycheck to paycheck except for the minimum payments we have to make.
We know we’re doing amazing, but we don’t really understand how long it will take to pay off the debt until we have the numbers in front of us.
We realized that if we continued on the path we were on, with no savings other than a 401k, we would never make it to 40. So we have a lot of options.
To eliminate all luxury bills; First, we looked to reduce our expenses and truly live frugally.
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Doing this will save us $1,000-$2,000 per month, but it will still take 4-5 years to pay off the debt. 5 years into the prime of our life I knew there was no way I could go on like this. Needless to say, this took a lot of time away from investable time.
Another way to generate income is to rent a house and look for a small apartment at low cost. expenses; When you add in the storage costs of all our furniture, it can add up to an extra $1000 per month. This reduces our debt repayment time to 3 years. It’s not worth it to us.
Then I went to see him with my parents. This reduced the cost of living, but it took almost two years to pay off the debt. A bonus of this choice is that we can live in a convenient city near all our friends and family. Our way of life is not so bad; Let us still enjoy life. But when my parents worked, we had to send our kids to daycare, which was $2,500 a month.
It is the best financial option and it is unbelievable how much money you can save every month.
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The catch: My in-laws are out of town. We live in the middle of the desert over an hour away from life.
Bonus: My in-laws are retired, which means no babysitting. $2500 a month or $30,000 a year is extra.
Yes, if you are wondering which option we decided to pursue, we will live with my in-laws for a year to pay off all the debt. And to experience the lifestyle with my parents throughout the year. back
But then something happened: a spinal cord leak was discovered from a medical procedure that forced me to spend more time with my in-laws to get help for the kids. And we’ve been here ever since.
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I had at least a 40% cut in pay while on disability, but when the rental market picked up, I was able to make up for the loss by renting out our home and making a small profit.
Based on that, I think it will take about a year to pay off all of our debt.
Anyway, we have countless savings. I live in a very small town on the outskirts of a large city with only one grocery store.
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