NEW PERSONAL FINANCE CHALLENGE!!

WEDNESDAY, JANUARY 14, 2009

Seeing my savings goals written down made them seem much more tangible.  I realized that I had a long-time goal within grasp:  finishing my emergency fund!  After I posted the last post I went to my bank online and transfered the last $1000 to my emergency fund.

MISSION ACCOMPLISHED!!

Now, onto bigger and better things.  I felt so inspired that I decided to challenge myself.  As previously posted, I have a second mortgage that was originally $138,000 on which I now owe $128,000.  This second mortgage is part of how I financed my house - I did 100% financing with an 80/20 loan.  I thought I was doing pretty well with paying down this loan, but $10,000 in twenty months doesn't seem good enough.  Now that I am free of needing to put money in my emergency fund, I feel light, happy, giddy, and ready for a new challenge.

NEW CHALLENGE:  Pay off another $10,000 of the loan by the end of 2009!

I think I can do this!  I am already increasing my monthly principal payment to $500 (that is $6000), plus part of my regular payment goes to principal (about $140, equals $1680 for the year).  That means I only have to come up with another $2320 by the end of the year.  I still have $500 left from my extra January paycheck, now I only need $1820 of unplanned money by year's end.  No problem!

Stay tuned for progress in the 2009 Mortgage Challenge!

POSTED BY K-MONEY AT 10:00 AM
LABELS: 2009 MORTGAGE CHALLENGE

2 COMMENTS:

Miss M said...
Here's to success! Some days I think I should try paying down the mortgage, then I remember what a money pit it's been and I decide to hold on to my cash instead.
JANUARY 14, 2009 7:10 PM

K-Money said...
Yes, I vacillate about this too. It sometimes feels like sending good money after bad since I am underwater. Realistically, I make enough money to pay the mortgage and have no hardship so I don't qualify for any current refi/adjustment plan. Like it or not I am going to stay in the house so I might as well pay it down.
JANUARY 14, 2009 9:02 PM