Finally we decide to payoff our home mortgage! We are now owning two houses free and clear. We live in our primary home and let our parents live in the other house. Both houses are mortgage-free. These paid-off homes reduce required minimum monthly dramatically, which further reduces our need for disability insurance, life insurance, and a larger portfolio nest egg.
As a result, our debts are below $46,000 for the first time ever since we began keeping track of our net worth starting in May 2005. I started out in life after graduated from college with a negative $50,000 net worth while liabilities were $55,000. At one point the total debts reach $333,118 as we acquired mortgages, home equity loan, student loan and car loan. It takes 10 years to get the liabilities back down to the $40,000 territory. The good news is that the hard work to overcome big debts is over.
Now we are in a cruise control mode to get the debts down to absolute zero in this wealth accumulation stage. I plan on achieving this ultimate goal of zero debts next year before my 37th birthday.
On a side note, there are some big item tickets this month as the hospital bills are due.
- $4,665.68 for delivery and in-patient care of our newborn son ($27,557.32 without medical insurance)
- $1,419.76 for anesthesiologist ($9,593 without medical insurance)
- $1,357.96 for Quest Diagnostic lab test ($1885.20 without insurance adjustment)
- $173.01 for child’s procedure ($1762 without medical insurance)
Back in September 2010, We set our goal to have mortgage free by the year 2015. Five years later we have officially accomplished this goal.
Is paying off your mortgage one of your Financial Prize? Please feel free to comment below and let us know!