Thursday, May 8, 2014

The big goals continue!

I was so inspired by my plan yesterday to pay off our second mortgage in one year, that I started really dreaming. :-) Since we've moved to California, I've been challenged by not feeling in control of our future. The cost of housing, the unknowns on buying vs renting, M's job and where that would net out. . . I'm a girl who is all about feeling in control of my own destiny, setting targets, and working towards them.

I came up with the idea to focus on the second mortgage, and realized yesterday, I can actually extend that to paying off our Seattle house, with a larger time horizon. Basically, if I set a target to pay off our entire mortgage (focusing first on our second mortgage, paid off on a one year schedule), I can consider an aggressive schedule for the rest of the mortgage. What will this get us? Well, if we can pay off our Seattle house, it will put us in a better financial position by creating a passive income stream (from the rent), minimize monthly cash outflow, and at the time I think we will be able to pay it off, our kids will be out of elementary school, and we might have a broader range of locations available to consider buying. Right now, we want to stay with the same elementary school, which puts us in a very tight location grid for buying.

So, first goal remains - pay off our second mortgage by May of next year!

Next big goal (and, it's a monster!) - pay off our first mortgage by December 31st, 2018. At that point, both of our kids will be out of elementary school (can't even believe that!) Current amount owing = $492,300.

Here are the sources of funding that I'm considering:

  • Once the second mortgage is paid off next May, funnel all of those payments to the first mortgage.
  • Standard monthly payments.
  • Additional monthly payments, based on the beach house selling & additional cash flow from that.
  • My bonuses at work.
  • My stock options at work.
  • The difference between our rent and our mortgage payment each month, save for an emergency fund we'll create for additional expenses on the Seattle house.
As you can see, I've left out M's bonuses & stock options, as he's not sure he'll be at his current employer beyond the initial year. The most exciting part of all? If I can hold out in my current career until the end of 2018, paying off the Seattle house means (drumroll. . . . ) I can move to a much more flexible job and/or reduce my hours! Hurrah! Now, that is a goal I can get behind and actively work towards achieving. 

I'm so excited to have a  more concrete plan for the future, as well as a horizon with which I can see a future that doesn't involve me working in this industry or these hours. I feel so very motivated to do this. It's going to be a huge challenge for us, but I think we can do it!

Dream big! Do you have any big goals on the horizon? What's holding you back from setting them? 


  1. That's awesome! It kind of stinks that you moved there for this employer and it sounds like both of you don't really like it there.

    1. We love the area, and are happy we moved. M's employer is good, but I think it's a question of him being in sales again, vs having an office job. He's disliking the office job more than he expected.

      I've been hoping/planning to move to a less lucrative (but more work life balanced) field for some time, employer aside, but want to accomplish a lot of financial goals before we get there. Otherwise I have too much guilt. That probably doesn't make sense, but I can't get over my own complex about scaling back when I'm highly compensated, unless I put my family in a excellent financial state first. Does that make sense?

    2. Yes, it makes sense but you need to take care of yourself first. I'm in sales and I would miss it. I love getting the deal. Its a rush for me.

  2. Please take into consideration the state of your health and how your job is affecting it. Can you keep doing this work at this pace until 2018?
    It's an awesome goal with great mental and emotional benefits but not at the expense of your physical well being.

    1. Definitely - this is best case scenario, with the need/ability to adapt if my health changes for sure. Mentioned in the comment above, but I have a lot of angst about leaving such a high paying career, and getting my family in excellent shape financially for the future will eliminate my feeling of "keep it up, you can do it, you must stay & work crazy hours & earn endless money". Or, that's the plan.

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  4. Those are big goals, but such wonderful ones! I really, really hope it all works out! What a relief it would be - I am a BIG believer in passive or semi-passive income. Wonderful prospect.

  5. I am sort of with slug mama. Lupus is not something to play with. What good is excellent financial shape if you cannot enjoy it with your family? Good financial shape is something to consider.