The elephant in the financial numbers was there, but we'd ignored it in the past. We justified the expense. Mortgage interest is a deduction. Having liquidity is important when you are both self-employed. With the apparent end of the mortgage interest deduction due to an increased standard deduction, and the stability of my legal practice after 12 years of putting it together, we were ready for a big change. With a few clicks here and there, we moved money from our brokerage and paid down a significant portion of our mortgage. Instantly saving $350 a month (we were paying $460 in interest, now it will be about $110). But we are not stopping there. A conservative path has us mortgage free in 24 months. My aggressive personality says let's pay it off by 12/31/18. The fire I had to pay off $97K in student loans in 7 years is back. Will we do it? Time will tell. The big unknown will be our 2018 health care costs. We opted for something other than the $1,300/month with a $13,000 annual deduction health plan off the exchange, electing coverage that kicks in only with hospital and surgeries.....other medical, dental, and eye expenses will be ours to bear.
2018 is brewing up to be a sail down uncharted waters. Joins us for the journey. We welcome suggestions on both sides of the frugal equation -- living on less and maximizing income. Be well, and thanks for reading.
|Winter 2010-11. Our first winter in our home. Digging out from a major snow. Symbolic of our efforts to dig out of our last debt, the home mortgage.|