Retiring Early

Thursday, October 26, 2006

I love this time of year!

Fall colors
Not only is Fall my favorite season, but this is the time of year that I look forward to extra cashflow. You know the time... the time when you've fully funded your 401(k) for the year, the time when your employer stops taking Social security taxes out of your paycheck (for those who fall into this category), and the time when you can look forward to comparing your annual performance to your goals. For me, this also means it's time to start paying down my mortgage with the extra cashflow. Since we have already met our net worth goals for the year, it only makes sense for us to start paying down the mortgage. Again, one of my goals is to retire with a fully paid-for home, and I know this is within reach.

My current mortgage payment is around $1790/mo (20 yr fixed @ 5.85%), and I was very pleased to make a whopping $4500 payment for November yesterday. Granted, some of this money was extra checking account build up, but the other funds came from extra cashflow as I described above.

(Image courtesy of tiarescott)
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2 Comments:

  • At 10/26/2006 10:01 PM, Anonymous finance girl said…

    Wow, congrats on getting the mortgage paid down, that's great discipline! I agree, I also like this time of the year for the SSA reason; also it seems that for the last several years, our accounts have big runups which I love too, I call it "The Santa Claus Effect" because I haven't been able to figure it out otherwise :-)

     
  • At 10/28/2006 6:28 AM, Blogger fin_indie said…

    I like that, the "Santa Claus Effect"... I'll have to start using that with my wife...

    Yeah, see my post on the misapplied payment... It has a way of taking the wind out of your sails... :)

     

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