Wednesday, July 28, 2010


We have been thinking more and more about putting more effort into paying down the mortgage on our primary home.

First if we pay off our mortgage we will have killed our biggest and last remaining personal debt (mortgages on our investment properties are business debt). Second, if we pay off our mortgage we will have flexibility regarding hazard and wind storm insurance which are extra expensive here in South Florida. Third, paying off our mortgage gives us a known return vs. an unknown return in our investments which with the market being so sporadic has certain advantages.

I am not planning to abandon our current 2010 spending and savings plan, but just thinking more about how we can put extra money, beyond our savings plan, towards our mortgage principal. I am also thinking more about our 2011 savings plan and other options for paying down our mortgage at a faster rate (extra payments, bi-weekly payments, mortgage debt snowball). I have also been looking at accelerator loans after hearing about them recently on NPR, but I really am not a fan of taking on a loan to pay off a loan.

How about you, have you paid off your mortgage at a faster rate? If so, how have you accomplished this task?

Thursday, July 15, 2010

Two Down

Two down, four to go.

As of today, we have maxed out our IRAs for 2010. So, we have completed two of our six 2010 savings goals.

Our remaining goals, max out our 401k (51%), our baby savings (47%) and our mortgage prepayment (58%) are all on track to be completed by year end.

So lots of good news, the only goal that is lagging is our emergency fund. Our goal is to have $32,000 by year end and so far we have only accomplished 10% of that savings goal. Accordingly, this will be the next goal I will focus on since the other three are on track, via automatic payroll or automatic savings to be completed by the end of the year.

How are you doing with your 2010 goals?

Wednesday, July 14, 2010

July Numbers

(1) Max out 401ks - $33,000
(2) Max out IRAs - $10,000
(3) Prepay mortgage - $1200
(4) Add to baby fund - $3500
(5) Add to emergency fund - $7000
(6) House/Furniture fund - $3000
Total - $57,700

(1) - $15,486 (47%) (goal is $33,000)
(2) - $9500 (95%) (goal is $10,000)
(3) - $700 (58%) (goal is $1200)
(4) - $1500 (43%) ($7861 in our baby fund, goal is $10,000)
(5) - $665 (10%) ($26,665 in our emergency fund, goal is $32,000)
(6) - $3000 (100%) (Completed)
Total - $30,990 (53%)

Just about where we should be for July. Almost done with Mr. Sam's IRA funding.