Review

There is power in setting goals. You tend to be intentional about the things you do and much easier to keep your self accountable. This afternoon , after I ended a  financial counselling call, I decided to look at the my big goal of 2019.

If you have not yet read  it  ( please check it out here), I am on a mission to pay off my home loan within 5 years ( to be exact in 51 months). To be able to achieve this, I am had to make a few adjustments in my finances to be able to accommodate the ambitious goal. This includes cancelling an investment I had to divert the additional funds to the home loan as interest that I was earning on that investment was by far less then the interest I am paying on the loan.

January 2020 marks exactly 11 months since I got the home loan, and I will be celebrating my one year anniversary of having  a home loan next month ( everything is celebrated these days).  Here is the summary of my progress update:

  • I have started using the home loan as the main saving vehicle instead of my call account. The interest I am saving on the home loan by far exceed what I will be making on the investment. However, from this year, I am stripping out wedding savings back to the call account.
  • With my current amortization table, if I had stick to the plan, my balance should have been N$ 333 895 but it is currently at N$ 342 230. This means I am performing N$ 8 334 behind budget. This should not be too bad to make up as I am renting out a room temporary and this income can cover up for the short fall.
  • If I had not paid anything extra and continue with just the minimum payment that the bank is asking me, my balance would have been N$ 471 555.55. This is a whole N$129 325 behind where I am currently at. If I quantify this in months, I am 129 months ahead of the home loan game.

This journey is not without challenges, just when you think you’ve got it under control, expenses pop up from no where. What I have learnt to do is when I have more in one month, I pay more than I budgeted. In the months I have less, I make up because of the fact that now and then I throw in lumpsum as well as pay extra.

No one said you should pay it over 20 years.  At the end of the day, it is up to you. My goal is to improve my balance sheet and get my debt to asset ration to minimal.

Happy evening and a blessed week ahead.

*I have a work deadline coming up this week and might reduce the time I have available to blog. Expect roughly only 3 articles this week as  try to manage this in between the deadline.

 

Love

Dhalodoka

3 thoughts on “Hairy audacious Goal review

  1. Well done on your commitment to crash the home loan! And I am inspired by the idea to rent out the extra room. It seems that there is always a way to utilize what we have better, either to cut down on expenses, or create new income flow. I am on it too, I have been paying N$1000 extra towards my home loan, I actually set up my own debit order online just so that I make sure it’s always done, so even when I was mad at it, it went off anyways 🙂 haha. You reminded me, I need to review my investment accounts and channel my funds correctly coz like you said, the interest charged on us is mostly way more than the interest we earn from most investments. Thank you Friend:)

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    1. I am glad that we are in this together. The earlier you attack your debt, the faster you’ll be able to pay it off. I think I must also schedule the extra payment to recur every month so that it is not optional but rather mandatory. Do review your statements and shout out if you need any help. I also recommend that you do your personal balance sheet in the process so that you can see the bigger picture.

      Thank you too friend:)

      Like

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