financial history

In October 2012 we reached our 2012 goal of saving $20,000. We decided to include 401k and retirement savings in that amount to make it more feasible. Once we reached our goal we took November and December off from saving large chunks of money. It felt really good to not be thinking about how to put $1700 a month in savings each month. We had done alright considering we met our goal in October instead of December as originally planned. It felt like a break to not worrying about putting money away for a couple of months. The money we saved in 2012 went to several things. First we started and finished an emergency fund that would cover six months of household expenses or a major disaster/repair. Secondly we put aside money to update the electrical system in our house. In June of 2012 we sold our fist house and bought a new (to us) house. So with $20k socked away for a rainy day we relaxed and spent in November and December.

Then we started thinking if we were able to meet so a challenge in 2012 what could we do in 2013?  I started crunching numbers and discovered that if we took the $1700/month we were putting in savings and applied it to our brand new mortgage we could pay off our 30 year mortgage in roughly 5 years. I told my husband and he readily jumped on board with the plan. Then one day in December he came home and said, “What if we paid it off even fast?”. My initial reaction was that it wasn’t possible. But the thought kept rolling around in my brain. We had already saved 80% of my take home pay in 2012, which meant we lived off of my husband’s take home. What if we switched and lived off my take home and put all of his take home towards our mortgage since we brings home more money? Living on just one income while we had two was my husbands idea; and after I cut down some spending here and there we saw that while challenging it was completely within reason to live off one income. The same day my husband suggested we live on one income and use the other to pay off the house this post from Kelly at View Along the Way was delivered to my inbox. It was a sign, proof that real people could do exactly what my husband had just suggested! I knew it couldn’t be coincidence. And thus the plan to pay off our house in 3.5 years was officially born!

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