Monday, 26 February 2018
As you can see from the above, we have a small house (just kidding)!
Not having a house payment for the month of March (along with a bonus and pay raises) gives us enough money to pay off $4000 in bills! That is a great feeling. As well, we met with the accountant last Friday to do state and federal taxes – a refund from the feds, and a small amount to the state. Unfortunately, the Republican revisions to the tax code will cause an increase in our taxes for 2018.
Besides being able to pay off some debt – and eliminate two bills altogether – our refinance and pay raises will be increasing our monthly income. Out of this, we plan to increase our monthly savings, and use 25% of that as regular monthly investments in stocks or mutual funds, with a focus on dividend-producing stocks. We want to have a bigger emergency fund, as well as cash on hand, to pay insurance payments every 6 months, instead of every month. Even better, we will be able to remove the 18 trees in our yard, without financial stress, over the next 3 – 4 months. Firewood, anyone?
Even though we still will have debt, the increased capital will allow a payoff of another debt in July 2018, another in April 2019, and another in August 2019. From there, The Student’s school loans will be paid off in May 2021. If we wish, we could have the house paid off in February 2029. From start in January 2016 to May 2021, we will have been on this journey for 5 years and 5 months, paying off everything except the house in this time period. Longer than what Dave Ramsey suggests, but better than we ever thought possible.
Refinancing the house is allowing us to speed up our debt reduction schedule significantly. It is one of the best financial choices we have made.