Beginner’s Steps

Step 1.

Well I did it. I cancelled the cable tv bill.

cordcutting

This will save me roughly $127 a month.
$127 a month = $1524 a year
$1524 a year for 13 years = $19812

$19,812 in savings!!!

I still have Amazon Prime and Netflix so there is plenty to watch and keep entertained.

Most of the shows I watch can be viewed on the network’s website the next day anyway.

Step 2.

I’ve been debating the last few weeks what I want to do with the mortgage.

saving-for-a-home

There are hundreds of blogs, reddit posts, forum posts, etc… about the old question “Pay off Mortgage early, or Invest?”

I currently owe 165k on my mortgage. It’s at 4.25% (which was great at the time).

If I kept this mortgage and paid an extra $331 a month, I would have it paid off right at the end of my 13 year goal.

So my personal answer to “Pay off Mortgage early, or Invest?” is:
WHY NOT BOTH?

Thanks to Brexit, mortgage rates have dropped to the lowest in the last several months.

I spoke with a loan officer and my initial quote to refinance is 3.25%. Which would save me roughly $300 a month. That $300 savings I will put back into the mortgage as the extra principle payments. The extra $331 I would have put into the original mortgage can go towards investments.

$331 a month = $3972
$3972 a year for 13 years = $51636

$51636 in savings!!!

As a bonus, the house would be paid off by the time of F.I.R.E.

Step 3.

 

Decide what else I can save on (and eventually invest).

 

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