It’s amazing! We have lowered our mortgage by about €100.000 in just 3,5 years. How did we do this? What’s our secret? Here is an analysis how we reduced our mortgage by €98.212 in 41 months!
We spent less than we made and put the rest in our mortgage. Well, that’s not entirely true, we prioritised the investments and added some into the mortgage too.
Oh, you expected more? Sorry…. well not really.
Look at me, look at me!
As posted earlier, I hate the “look at me, look at me” attitude in some click-bait blog posts you find online, and even in the personal finance community.
- It’s not impressive to lower your mortgage debt! If you have not noticed, it actually goes automatically every month (or bi-weekly). Who knew?!
- When you have a €100.000 or more annuity mortgage, you will end up paying off €100.000 (or more) on your mortgage. Whoop, whoop!
- If you earn a lot of money, and you are smart with what you do with it, it’s not impressive to drop ton’s of money into your mortgage. It simply isn’t. It’s NORMAL!
- Paying off your mortgage faster may not even be a smart thing to do. If the interest is only 2% or so, it’s likely far better (financially) to add money into your investment accounts.
The only time you can officially boost about lowering your mortgage way before it’s maturity date is if you:
- Have a tiny to average income;
- Work 3 (or more) side jobs or hustles;
- Scrip and save every penny you can;
- Send two (or more) kids to school;
- Have not been on a holiday in 10 years;
- Eat beans and rice 5 times per week;
- Have not bought new cloths in the last 5 years;
- Do not own a cell phone; and,
- You are still happy with your life.
Well, guess you get my drift. If you work hard, make a few “sacrifices”, are frugal, do the occasional deprivation and still manage to pay of that mortgage way ahead of it’s schedule completion. You’re a hero in my book! We actually know a few, but they are a rare breed.
No magic bullet
I know, life sucks and mortgage debt does not disappear magically. Now go and do something useful today instead of clicking on these type of posts as if you suddenly going to find a magic bullet or secret debt repayment plan. You’re not going to find one!
Work hard, be smart and get rich(er). Now bugger off!