A little over a year ago, Adam and I set a very ambitious goal of paying off our mortgage in 1 year. At the time we owed a little less than 300K so this was no small feat, however, we knew we were going to sell two of our rental properties so we figured it was doable.
We paid our mortgage off in October of 2016 using a combination of savings and proceeds from the sales of our rental properties. Woo Hoo! Big celebrations!
Then I noticed something interesting. Without the ambitious goal leading us like a carrot in front of a donkey, our spending slowly crept up. An extra meal out here, a thoughtless purchase of some new fancy thing there and before we knew it, we were spending way more than we were at the beginning of the year when we had a clear, specific measurable goal.
I guess there is something to that goal setting, hu?
Since we are no longer paying off any debt, our new stretch goal is all about accumulation. We ended 2016 with about $235,000 in investments. If we save at the rate that we intend to, we should reach $375,000 by the end of next year (this includes a lot of random extra income from various sources that we are counting on over the year and the fact that we have no mortgage to pay!).
So, because I’m completely nuts, I’ve decided our stretch goal will be $400,000 by the end of the December 2017. In order for this to happen, the market will have to continue its amazing growth, I will need to bring in more money with my business, and we will have to save even more than we currently do.
But…its is doable.
I’m not sure that we are going to make this goal, but here is to trying!