It’s been 6 months since we set a goal to pay off the mortgage by 2020 and to have a net worth of at least $1M by 2025. This is the 6th update on the progress of the goal. If you’re wondering why we set this goal, see here.
This month, we paid a total of $1,000 towards the principal balance of our mortgage to bring it down to $157,000. We are toying with the idea of buying another property, so we are trying to save up liquid cash for now. We are still on track for the goal.
| Date | Months left | Intermediate goal | Actual balance | Principal reduction |
| 2/19/2016 | 58 | $179,304 | $179,304 | – |
| 3/19/2016 | 57 | $176,700 | $174,481 | $4,823 |
| 4/18/2016 | 56 | $173,600 | $169,993 | $4,488 |
| 5/17/2016 | 55 | $170,500 | $167,000 | $2,993 |
| 6/20/2016 | 54 | $167,400 | $159,900 | $7,100 |
| 7/19/2016 | 53 | $164,300 | $158,000 | $1,900 |
| 8/22/2016 | 52 | $161,200 | $157,000 | $1,000 |
Net worth = assets – liabilities, or everything we own minus everything we owe. I’m not including our cars here, which are both paid off, to keep the calculation a little simpler. I am including an estimate of home equity.
Our cash position decreased to $24,437 this month. $5,000 is sitting in an escrow account as our earnest money deposit for a house we have under contract right now. We were able to pay down the mortgage principal $1,000 to keep us on track for our mortgage goal. Our net worth increased by $4,605.56 to $379,916.34 this month, our lowest increase to date.
| Date | Home equity | Investments | Cash | Net Worth |
| 2/19/2016 | $140,695 | $149,076 | $21,813 | $311,584 |
| 3/19/2016 | $145,519 | $164,791 | $23,512 | $333,822 |
| 4/18/2016 | $150,007 | $171,697 | $17,457 | $339,161 |
| 5/17/2016 | $153,000 | $171,305 | $21,672 | $345,978 |
| 6/20/2016 | $160,100 | $174,881 | $23,094 | $358,075 |
| 7/19/2016 | $162,000 | $185,621 | $27,689 | $375,311 |
| 8/22/2016 | $163,000 | $192,479 | $24,437 | $379,916 |
I’m still recovering from my fibula fracture. I’m off crutches now, but I’m not back to 100% yet. I’m going to physical therapy once a week for now, but I won’t be able to do any running for probably at least another month or two.
You guys are killing it. Keep up the great work. How have you decided whether to throw $$$ at your investments or the mortgage?
Thanks. We are in the process of buying a new house, so we don’t have extra money right now. I know I’m in the minority, but I prefer to pay off the mortgage with extra money although I do invest a little bit too. It’s more of a mixed approach, but I highly value being debt free.