However, we do well with big giant goals, so I think it's time to focus on our next priority - paying off our second mortgage on our house in Seattle. (As a refresher, we are renting this house out, and considering it part of our larger retirement portfolio. At some point, we may need to sell to afford a house in California, but would really like to keep it if possible.)
By paying off the second mortgage, we will ensure that we will be cash flow positive on the rental, reduce our monthly payments, as well as put us in a better position for buying a house in California, when & if the time comes.
Down to the nitty gritty details & the BIG GOAL. To pay off this second mortgage in one year - by May, 2015!
Current balance: $148,703.
Plan to pay off (obviously, these numbers are all based on estimates of things like, stock price, predicting timing of a house sale, etc., & will need to be adjusted monthly based on actuals):
- M's stock options (vesting in September) - $48K
- My stock options (vesting in October) - $23.7K
- Sale of beach house (expected by September?) - $40K
- Monthly stock vests (October-May) for me - $9K
- January bonus for me - $5K
- Regular monthly payments - $12K
- Rolling beach house payments into second mortgage (September-May) - $13.5K
If all of these things work out, and I tried to build in some flex, we can pay off close to $150K in a year! That would be amazing & would make me extremely happy!!!!!!
I have a feeling, if we measure this as a very doable & trackable goal, we will achieve it (or, come a lot closer than if we don't pay attention). Isn't that the case with all goals? The focus & intensity ups the importance and makes it easier to achieve. . . :-)
What about you? What big goals are you working on, thinking about, or hoping to accomplish?