My year to get leaner worked some magic on my mortgage. My mortgage isn’t lean but it is definitely leaner.
At the start of the year my mortgage was in the high $500,000, so the interest is huge. The $38,000 off the principal this year is almost matched by the interest I paid. All of that didn’t come from not not buying clothes! I didn’t buy much of anything – no furniture, no household appliances, no jewellery, no knick-knacks, no magazines. I was careful with groceries – menu planning and only buying what we needed.
For 2014 I am torn between continuing to throw money at my mortgage and getting it below $500,000 or paying the minimum (or just above the minimum) and using the funds to have some work done around the house.
The logical, money-wise action would be to pay down the mortgage. Money saved on not paying interest is a huge saving, and would allow me to get work done in the future without having debt.
But having a nice home is important to me. Mr Sans and I are not handy, and don’t enjoy DIY. I also work long hours in a stressful job, so when I have time off, I need to rest and recuperate, or I would not be able to continue.
So my choice for goals: do I get my mortgage below $500,000 by the end of 2014, and wait a year for the work I want done – house painted, garden landscaped and maintained, and kitchen renovated.
Or do I do the work now?
Which way to go?
Maybe I can do both?
I will be getting a small pay rise next year, and I could look to cut some expenses, like electricity and gas. Mmmm. Thinking.