What does that mean to me? It means that $17,000 of my debt has been paid. It’s what’s left to pay which includes my mortgage.
Why do I include my mortgage? Because I’ve realized that it’s not really an asset.
Although houses appreciate in value, they remain money pits for the entire time you live in them.
You pay interest and mortgage and repairs and renovations. The only time this can become an asset is if you are renting it and only when you make more than you have to spend on it can it be called passive income and an asset.
So all this to say that, we would rather pay if off sooner than later so that we can at least get rid of the mortgage payment part of it.
If I did not include my mortgage, the only thing we would owe right now as in what the world views as debt is a credit line of $28,753, which is the current debt we are focusing on.
And Focus is the right word here. It takes an awful lot of focus to keep yourself motivated. For every $1000 paid, we congratulate ourselves.
And when we dropped from the $160’s to the $150’s we celebrated a bit with our 5 days in Quebec City trip. Something to say that we were happy with our progress, and now we have dropped from 150 to 140’s and a nice long weekend is coming up, so a small celebration with family might be in order.
*View from my driveway. I do so love my home! Even the clouds are pretty!
Although there is no fanfare and the banks don’t send you a note telling you how great you are for paying off your debt (why would they…they are actually not making any money if you pay off your debt), we take it upon ourselves to talk about it a lot. To congratulate ourselves and remind each other what it means to get to $0 dollars owed. Our dreams and most importantly what we would need to live in a month without all those payments to make each month is by far our best motivator.
I thought I might get discouraged by the long haul ahead of us at this point when all the little debts were paid and we had to sit and watch the bigger ones go down slowly, but it’s actually not that discouraging. If anything, I feel great at being even at this point in my life. I know that when the credit line is paid, we will have money to be able to put away to lower our mortgage and invest the rest.
That we can finally make decisions with our money to make it work for us instead of working for the money, and that prospect of it excites us very much.
We are soon to come up with a template on YouTube that will both be interesting and informational to those who need help with debt and budgets.
So that if anyone wants to go on this journey themselves they can finally have somewhere to go to help with tips and motivation. So keep a look out for it! We are just working on a way to present it that it will be entertaining with great info. Nothing more boring than watching talking heads on TV and we would prefer to inspire than to bore!
Who said budgeting couldn’t be fun!