“What the heck do we do next?” This was the question my wife and I started to ask after getting out of debt. After following Dave Ramsey’s first three baby steps to get out of our basic debt, we starting wondering what our next goal would be. With “new” money discovered after paying off debt and most debts (we still have a mortgage) paid off, what was next. Dave Ramsey recommends that you invest 15% of your 401k and max out your Roths. We increased our investing to a good level (approximately 11%) and starting saving for things we needed such as a minivan for our ever growing family and things we wanted, such as a couple of summer trips, but over time, we began to think about things that were important to us.
For me, I figured we still had a massive amount of debt that needed to be addressed, namely our mortgage. As I’ve stated in previous post, I HATE debt. Knowing that you owe someone else a ‘grip’ of money always weighs heavily in the back of my mind. We considered a couple of things before making this decision. First, we purchased life insurance for both of us which is something I highly recommend you put in place as soon as possible. I had previously had coverage from my employer, but I hadn’t updated it since starting to work which was before marriage and kids, so it was dreadfully inadequate. We got our current policy updated and put in place in 2016, so we had comfort knowing that if something happened to me or my wife, the family would be okay.
For me, my next priority was to ensure my family had a place to live if, god forbid, I should die. I know this sounds a bit morbid and a little hard to think about, but upon reflecting on what was important should I die earlier than expected, I wanted to make that my family had money to live on (life insurance) and had a place to live (paid off home). After talking this over with my wife, we both agreed. Thus, the next objective of our financial experiment was birthed, pay off our home as soon as possible. This does two things for us:
- One. It gives us peace of mind should anything happen to us.
- Two. It eliminates ALL of our debt so that we owe NO ONE.
How awesome would this be? Is this unrealistic? Well, our current goal is to pay the house off in 6 years, starting from the beginning of 2017. Faster if possible! Yes, I’m a bit behind on posting our objectives for this year. Partially because I got super busy earlier this year and procrastinated (these will definitely be topics for a future blog!) starting this blog, but I’ll be following up with our plan for paying off our home in the next post! Stay tuned.