Every year, I sort of give my year a theme. In that year, I will do things that uphold and make it easier for me to reach one thing. I thought I was the only one until my friend Kasape yesterday shared in a voice note that she wakes up every morning at 3:50 am, do a bit of exercise and she work on her “one big thing”.
As I contemplated on the one big thing concept, I was reading a book title “Manage your money like a F*cking grown up” in which the same concept came up. The one chapter end with asking the question what is that crazy goal that you have? That one goal that scares you a little that you do not really share it with everyone unless they are as crazy as you are?
I did some digging into my diary, and I came across an amortization table. An amortization table is a calculator that is used mainly by banks to work out how much you should be paying back per month when you borrow money from them. The last calculation I was doing is regarding my home loan. This is then where it all started.
So what is my one big thing? For me is to pay off my home loan within 4 years. Yes, you heard right, 4 years. This sparked a lot of ideas in my head of what I can do within the 4 years and what I must delay until the 4 years are over. This is a little crazy considering that the normal repayment for a home loan is 20 years. So how on earth am I able to pay it off on 4 years? Here is my plan:
- I did not borrow excessively. I borrowed what I can afford and not what I can qualify for. Do not fall in the trap. The bank will work out your affordability based on what information you give them .If you do not say, they would not know.
- I worked out just how much I need to pay extra if I want to do that. For me , it will require me to double the installment. Too steep but its still affordable.
- I enquired with the bank how long I have to early pay off my loan without any cancellation fees and they said 3 years hence the 4 year target.
- I am working against the compound interest. if you do the math, you will realize, the earlier you pay the loan, the less interest accrue. so going aggressive at the beginning of the loan will make it easy for you to reduce the capital portion on which interest is charged.
So then, what is your one big thing? Just a little enough to scare your neighbor? For my boyfriend, is to actually go do his trade test after completing formal school more than 5 years ago. For my friend Kasape is to submit her application to be a registered engineer.What is yours? give it some thoughts.
There is no harm in dreaming. Just a little wilder than the usual.