2010 Goal

So with my focus on paying off my mortgage you would think making a goal would be easy.  In some ways, yes since I’ll be picking a number related to my mortgage.  On the other hand doing the math to determine a specific number and cross checking if I can put all that money on the mortgage wasn’t easy.

Yet in the end I did the math and came out with a few things.  First off I expect the mortgage to finish the year at about $121,600, which would mean I’ve paid off about $15,000 this year on principle.  That’s fairly good given I haven’t focused too much on it.  So in 2010 I’m really going after it I’m heading for a goal to have my mortgage at $78,000 or less by Dec 31, 2010.  So for those of you with sharp math skills I’m planning on paying off over $43,000 in principle next year.

So obviously that is a huge number, so how the hell can I get there?  Well that’s got a few factors to it:

  1. I’m reducing my investment activity down to just my pension, regular RRSP contributions and regular RESP contributions which should free up some cash.
  2. I’m putting all my after tax income from my second job towards the mortgage.
  3. I’ve increased my regular payments by 15% and the balance has dropped so each regular payment I’m now paying off a fair bit of principle.

The longer term result of all  of this should be paying off the final mortgage balance sometime in 2012.

So do you have any goals for 2010?  If so, what are you focusing on?

11 thoughts on “2010 Goal”

  1. Wow, this is an amazing goal! I really hope you can reach it 🙂 My goal for 2010 financially is to pay off my only Credit Card (balance $2000) and pay off an extra $1000 on my personal loan (above my regular monthly payments). Thanks for the inspiration!

  2. An ambitious goal! I look forward to following along with you in 2010 are you strive toward it!

    My goal for 2010 is to work toward my 2011 goal, haha.
    My goal for 2011 is to be debt-free (except mortgage and car) by the time I am 30 in May of 2011.
    I don’t have that far to go, but I still have a lot to learn about it!

  3. That’s quite a goal you have there. In my best year (1997) of paying down my mortgage, I paid off only about $31.6k of it. Then again, I owed only about $49k (original mortgage was $56k in 1989) so I was paying down about 2/3 of it. In 1998 I paid off the rest of it.

    Still…..I hope you get this done. Once you do, there will be a snowball effect whereby more and more of each payment will go towards principal, not interest, further accelerating the payoff of the loan. But you knew that already, of course! 🙂

  4. That is a great goal – i wish you tremendous success!
    My goal in 2010 is to make the most out of my first FULL year of being debt free (paid off line of credit in July ’09). Looking to up my savings in RRSP and RESP for my children and build the emergency fund up as well. Good luck!

  5. I like this goal! It’s ambitious, but you can do it!

    I’ll have a great challenge for 2010: I have to find 31K to reimburse my parents loan (that I used to buy my house 4 years ago). I have about 10K aside so far, so I will need to work really hard this year to make it happen!

  6. No mortgage for 2012 is our plan as well… we have a $90000 GIC which matures around the same time as our mortgage comes up… by then the GIC is worth $100000, more than enough to pay the bastard off once and for all.

    Mortgage free at 40 – has a nice ring to it. This is a key component to my early retirement plan.

  7. Thanks everyone. It’s good to hear about all of your goals.

    @ Jon Snow – It does have a nice ring. Too bad for me mine will likely be mortgage free at 34, it doesn’t seem to have the same ring. Oh well I guess I can live with that. *grin*


  8. After many years of savings goals, we are actually going the other direction. My wife is on maternity leave and I will not renew my contract and we’ll be spending the next summer in Paris while she takes some courses. I’ll take care of our (then) 9 month old.

    I guess my goal will be to figure out what my next career is and how we can be frugal enough so that I can stay home with the baby longer term while we live on one salary alone.

    Extra mortgage/savings won’t be possible, but keeping up our current rate should work out.

  9. That is awesome that you will be done in 2012. That should give you the flexibility to quit your day job if you wish.

    I am on the same path, just a little behind you. 🙂

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