At the start of the year, I set goals for my blog in 2017. If you didn’t get a chance to read my post you can read it here. Before I provide a recap of my original goals, I want to share a new goal I set – pay off my house in 8 years.
If you’ve followed my blog, you probably know that my family recently moved. We sold our townhome in the city and we moved into a single-family home in the burbs.
The mortgage is the only debt that we carry. We paid off our student loan and car loan debt last year and we enjoyed the feeling of becoming debt-free – excluding the mortgage.
I ran a lot of numbers before we purchased our house, and we purchased a home well within our means. However, seeing the amount we pay in interest each month bothers me – especially when I think about the opportunity cost if I invested that much money.
So, I did what any other personal finance blogger that I follow would do – I plugged some numbers into an excel and using the “nPER” function I calculated what my monthly payment would be to pay off my house.
First, I calculated what I would need to pay monthly to pay off my house in 5 years. The numbers weren’t pretty. I would need to pay $5,090/month to pay off my mortgage in 5 years.
That isn’t feasible. I’d have to start out-hustling my fellow blogger Financial Panther to hit that monthly payment.
Just to put it in perspective, if I did pay off my house in 5 years compared to the traditional 30-year loan, I would save $172,000 in interest payments. I would only pay about $35,000 total in interest.
Next, I used 10 years as a goal for paying off my house. This would require a monthly payment of $2,801… That is still a crap ton of money, but it is feasible if we tighten up our budget.
Also, I would save about $140,000 in interest payments compared to a 30-year loan.
One thing I really enjoy about blogging is the accountability I set for myself by writing for all of you. My goal after running and crunching some more numbers is to pay off our house in 8 years.
Now, some people would argue with such a low interest rate you could invest the extra you would be throwing at your home loan. In addition, I could deduct the interest paid on my taxes.
I can contribute $11,000 into Roth IRAs between my wife and me. After that, any money I save would go into a taxable account that I would have to pay capital gains taxes on.
If I stick the extra money into my home, pay it off, and invest the extra money I have after my house is paid off – then, when I go to sell my home 20 or 30 years down the road, my profit is tax-free.
I plan to play around with the numbers a little more and iterate on my goal after settling into the house this year. I will keep everyone posted on our mortgage elimination goal 🙂
Pay off my house or invest – what are you doing?
1. Provide value to my readers by sharing information they can use to either: get out of debt, take better control of their finances, and/or start investing.
This is difficult for me to answer. I’ve seen my traffic continue to grow and more people are commenting on my posts. Therefore, I would like to think the value I am providing is increasing 😀
Let me know your thoughts!
2. Write one new post each week.
I’m ahead of schedule on this goal! I’ve gone off my normal Monday morning post schedule and I slightly increased the frequency of my posts. I would love to commit to two posts a week, but I am not there yet.
3.Reach 20k monthly pageviews
I have a LONG way to go to reach this goal. This continues to be a stretch goal that I hope to hit later in 2017. I hit 2k pageviews in January.
4. Grow email subscriber list to 500 people
Again, a pretty big stretch goal here. My current subscriber list is around 75 people. I am using some tools, mainly SumoMe, that are helping me increase the number of subscribers.
5. Grow Twitter follower list to 10k followers
I am confident I will reach this goal. I’m currently at 4K followers.
6. Spend at least 15 minutes each week on marketing
In January, I spent time researching and learning more about SEO. Claudia over at SEO Audit Guide has a great free course to help you get started.
I’ve also checked out Grant’s guide over at Millennial Money that is helpful for SEO.
Finally, I started using Yoast SEO when writing my blog posts. It’s hard to see the direct benefit from using Yoast, but I will monitor my traffic from Google to see the direct results of my SEO efforts.
7. Read one book each month relating to personal finance
I LOVE reading personal finance books, and I need to catch up on writing reviews.
I read three books since the middle of December: The Smartest Investment Book You’ll Ever Read, How to Build Wealth One House At a Time, and The Simple Path to Wealth.
How are YOU doing on the goals you set for 2017?