Paying Down the Mortage

Lately my posts have been functional and factual. Today will not be an exception, but perhaps next week will be a bit more fun. I think I need to put down what I am trying to accomplish in this blogosphere format so that I will feel motivated and actually do what I set out to do. Are you like that too? So, onto today's subject: getting our mortgage amount down.

This year, we want to get our mortgage down by $10,000. That means on December 31st of this year our mortgage hopefully will be $10, 000 less then it was on January 1st of this year. With our regular payments we would be able to put around $5000 onto our principle. That is the sad thing about being at the beginning of our mortgage, just over half of our payment goes to the interest!

Here are some of our plans to get to the extra $5000 onto our mortgage. (Before you do this double check your mortgage rules. Most mortgages will allow to pay a certain percentage each year or increase payments without penalties, so check those amounts. No one wants to pay a penalty.)

1. Increase the mortgage payment.

Currently we pay every two weeks. We have it so the mortgage is taken off right after we get paid, which is really handy as it is out of the account before we even notice it.

This year my husbands company is restructuring how they receive part of their bonus. So now instead of being paid out a big amount in March, and then getting taxed at the bonus tax rate (which is super high), all employees across the board are getting a pay raise!

We have decided to increase our mortgage payment by at least the percentage of the pay raise though we will probably do more. This is something that you could do too. Most mortgages allow you to increase your payments by a certain percentage each year. If you get a pay raise calculate the percentage of increase, then increase your mortgage by the same amount. It is pretty painless and you don't have to think about it. The only thing you have to do is call and set it up. Then sit back and let it happen.

We are planning on taking this a step further. When we got our mortgage interest rates were pretty low. We know that when our 5 years is up (we have 2.5 years left), and we have to renegotiate, the interest rates will undoubtedly be higher. We don't want to be stuck in the lurch (hence why we are trying to payback as much as possible), so this is what I did.

• I found out the highest interest rate for a 5 year fixed mortgage.
• I calculated how much would be left on our mortgage at the end of our term if we put nothing extra on it. (There are lots of online calculators that will help you do this.)
• I calculated what the payment would be at that interest rate that mortgage amount lowering the amortization period to what it will be when we renegotiate.
• I made that number our new payment

It is a bit higher than what is most comfortable, but we are really wanting to make a dent in our mortgage. If it is too much we can always lower it again. I figured this way if our payments did go up, we would already be used to it, but also, it is an easy way to put more on your mortgage and then not have to pay as much with the next term. Or we could even shorten our amortization if we wanted. Doing this allows us to have more options when it comes to renegotiating our mortgage.

2. Extra pays

Since we get paid every two weeks there are two months each year where we have a third pay. When those third pays come up, we will put the leftover onto the mortgage. So, whatever is left over after the usual things come off (i.e. savings and mortgage payment) we will put it right onto the mortgage. For us that means putting on the equivalent of another months mortgage when you add up the two payments. That's pretty substantial. And the best part, it goes right on to the principle (though you should double check that). Lower principle means lower interest and that makes me happy.

This could also include any bonuses you might receive. At my husbands company they get paid a bonus every March. While this years bonus is going to go towards savings goals we have, next year the bulk will be going onto the mortgage.

Tax returns are the same. This year again, we are putting our tax return to savings but next year we will be putting a big chunk of it onto the mortgage. We want this sucker gone!

3. Be financially prudent

As I have said in another post, this is the year that we are really going to be watching our spending, curbing our wants and really get our financial house in order. We have other financial goals, besides the mortgage. We want to have $5000 in savings by the time this year is done and we want to be able to save for our summer vacation so we don't have any debt because of it. So, our aim for our vacation is around $5000, though hopefully we can do it for cheaper. (Though the exchange rate is not going to be very kind to us unless the dollar picks up before summer.)

If we achieve these two goals quickly, because of being prudent, we will be able to shift our focus solely onto the mortgage and adjust the cashflow so more can go onto the mortgage. That way, if we have extra cash because we don't have to pay our health insurance fees for a pay period, or if we have maxed out our CPP and EI payments and don't have to pay those anymore (it usually happens in September for us) we can put all of it on the mortgage instead of savings or some other debt we could have if were were not being prudent.

I know I sound like a broken record when I say that every little bit helps and it all adds up, but it is true. Little things will make a big impact down the road. Sometimes we want things to be different or change right away. And the thing is, that's not going to happen. If you have debt, of any kind, you have interest working against you and it is a constant obligation. It doesn't take you long to dig a financial hole, but filling it up takes a while, and it is not the most fun thing to do. But you know what? Just do it, and you will feel so awesome when it's done. That's how I felt when I made my last student loan payment (and I did that only four years after graduating!)

Do you have any tips for paying down your mortgage, or other debt? What has worked for you?

So... what do you do?

Sorry for the hiatus. Last week when I was sitting down to write my post, a simple one about to-do lists, it kept getting bigger and bigger and bigger. I realized I had so much to say, that it was really like two or three blog posts. So, I decided to stop and take a week to figure things out and break it down. Hopefully I have been able to do so, and I won't go off on any crazy tangents. I still feel my thoughts are scattered. Let's see where this post takes us.

There will be times when I have to fill out a form, or when I am talking with another group of adults and inevitably the question will come, "So, what do you do?"

How do you answer that? The term "housewife" seems antiquated and now is used as a word that is almost synonymous with trophy wife. "Homemaker" is another term that doesn't quite fit. Using the term "full-time mom" is a bit closer, but, may make other women who are working outside the home feel that they are not pulling their own weight as mothers, as they have a full-time career outside the home. You don't stop being a mom just because you are not with your kids all the time. You are a mother always. Some people have adopted "domestic engineer". I kind of like that. It makes those who choose to stay at home full-time seem industrious, building something, and for lack of a better word, worthy of respect from those who work mostly in a corporate setting.

I know this might seem like over thinking things, but in today's world, when you stay home to raise your kids, or to make your home more industrious, society either looks at you as if you are too stupid to get a job, or some crazy hippie lady who is trying to make some political statement (no disrespect to actual hippie ladies), or you are trying to cash in on your rich husband. None of those accurately represent the majority of women or men who stay home, and they do not accurately represent me. Though, if my husband did get rich, I wouldn't complain. Society just doesn't get that some people just want to make their home a thriving and loving place to live full-time. That I would rather be the one that raised my kids, then paying others to do it for me. This decision is not an easy one to make and it comes with lots of sacrifice, but then, if we are trying to live more simply without all the stuff that says "you are successful" the sacrifices don't seem as great. It is getting to that point mentally that is tough though. As I have stated before on the blog, I can be a bit of a magpie, I like new and shiny things.

Okay, so now you have labelled yourself as a "domestic engineer". What the heck does that actually mean? What is the actual job description? Well, there isn't one. Or at least, there is no one fits all description. And that is where it becomes difficult for others to know what you do, and for you to know what you do yourself. I decided to make a list of all the different roles I do as a domestic engineer. In the space of about 5 minutes I came up with over thirty different roles. I won't list them all, but here is a random sampling: dietician, spiritual leader, event coordinator, laundress, walking encyclopedia, interior decorator, stylist, and teacher. That's a lot for one person to do with just that list, and then put even more on top of that and okey dokes. That is crazy.

a random sampling of things representing what a domestic engineer does

With all the different hats we wear it can be overwhelming. We want to do everything  and do it flawlessly. When we fall short of that standard, even though we are doing our best, we can feel frustrated and discouraged. Being a domestic engineer is an organic and moving job. This means we need to be flexible and forgiving. Life throws us curve balls, and we need to be able to be adaptable to those. And we have to remember the mantra, times and seasons. Sometimes it can be tough to be that flexible. I would love to have a set schedule, but I have discovered, that kids don't always want to follow that schedule, thus making being adaptable essential. (That was definitely an AHA! moment.)

Another difficult aspect with being a domestic engineer is that it is at times a solitary endeavor. Your spouse is off at work, your have young children at home. You need to be self motivating at times when you just want to through in the towel. You feel outside pressures coming at your because your house isn't perfect, you aren't looking perfect. It can be tough. When you are feeling those pressures get to you, reach out to trusted friends, online groups, or reread your favourite blog posts or inspirational quotes. If you are religious, turn your focus to God and his teachings to help you get the motivation to keep going. Being a self-started can be tough, but you just need to pull up your bootstraps and do it. Once you begin, it is amazing what else you can get done.

So while we are don't necessarily have a working definition of a domestic engineer, we know that it encompasses a lot, and that we are fortunate in our "job" to tailor it to fit our and our families' needs. That is a luxury not every job comes with.

Next week I will discuss ways we can gain focus in our role as domestic engineers and through that focus how happiness in our role can be achieved.

I hope you have a wonderful and happy weekend!

Whimsical Last Days of Summer

Well... Today I just don't know what to write about. I feel like I have done so much in the past few weeks, yet I also feel like I have done nothing at all. Most of the things that we have done are family memory building activities. I haven't been canning, though I really should, I haven't been preparing things for the fall, or anything of that nature. I have been relishing in the last few days of summer vacation and loving being able to stay at home with my kids and doing things at a whim.

For example. Tuesday, was one of the hottest days of the summer. It has been a really chilly summer and the heat was nice. Since it was so hot, we decided to go to the beach at Pinehurst (A near by conservation area). It was so nice. My husband took off a few hours off work and came with us, which was a really nice treat. That beach was nice because there was lots of shade that was close to the water. Also really nice change rooms. If we had more time we would have gone for a little hike or something but it was just nice to be out in nature, on a beautiful day, being cooled off at a little lake. We packed a picnic lunch full of yummy snacks and cheeses and tomatoes bought fresh from the Farmer's market that morning. Really it couldn't have been a nicer midday activity.

Today I happen to have the van at home which is bit of a rare thing, quite often my husband has it at work. So, I took the kids to the St. Jacob's Farmers Market. I had the little one on my back in my Boba (best baby carrier ever!!!), and the other two walking along beside me. The girls loved seeing all the different things for sale. What they really wanted to do was bounce in the bouncy castle. So I let them and they even paid for the ride themselves! They were so excited to give the worker their money. They felt so proud. We then had lunch at Conestoga Fries which serves their food from a covered wagon. It was fun. The girls especially liked it because their favourite babysitter works there and served them. After lunch my middle girl bought a dream catcher. She found the most sparkly one there. My oldest bought a package of candy for us all to share and one for my husband. (We then drove to his work which is nearby the market and surprised him!) We walked back through the vegetable/fruit vendors and the girls loved calling out all the different kinds of food they saw. We saw some yummy corn so we are going to have corn on the cob with our dinner tonight. It will be delicious!

It is nice when you have days like this. Not to hot, beautiful sun and clear skies, and nothing on tap to do. It is nice when you have the flexibility to go ahead and do things and not worry about time off etc. 

When you decide to live off of one income your life becomes one of trade offs. You trade off exotic vacations for staycations. You trade off going to fancy resorts, to going to camp grounds and local parks. You trade off big renovations with making do and doing a little at a time. You trade having to work every day 9-5 for the ability to be flexible about where you want to spend your energies and time that day. 

There are times when I wish I could go to an office and someone else could look after my 18 month old because she does drive me crazy! But then there are days like this, when all the kids are sweet, the dishes are done, we have the car, and we are ready for adventure. I like these days the best. It is worth the trade off.

The Sacrifices We Make Aren't Really Sacrifices at All

I have been reflecting a lot about sacrifice of late. We all make sacrifices, though we might not always call them that. We allow a car to merge ahead of us on the highway, we are sacrificing our spot in the line of traffic to help someone out. We need a new driveway so we might sacrifice some of our savings or a planned holiday to pay for it. A lot of the sacrifices we make are just day to day decisions, conscious effort to sacrifice a life we don't want to live for one that we do.

As a stay-at-home mom of three goofballs people could justifiably say that I sacrifice a lot to be home with them. I sacrifice a second income, which would definitely come in handy as we try to pay off the mortgage and do home repairs. Trips to Home Hardware for supplies sure add up. I sacrifice my clothes, they are never pristine for long. They are a snot rag, a paper towel, and who knows what else. I sacrifice my privacy. The bathroom is no longer a sacred place. Why they need to come in when the door is clearly closed is a mystery that seems to be beyond me. I sacrifice my sanity. Hearing my 16 month old constantly say Momma, over and over and over and over and over again. Gak! Or when the older ones come and start complaining, or whining or asking for things or whatever. I seriously start thinking, perhaps a paying job wouldn't be so bad. And I sacrificed my body to bring them into the world. Stretchmarks from here to there and everywhere. I don't know where the stretch marks came from, as I never get that big ,but geez Louise, my career aspirations of being a bikini model is out, unless there is quite a lot of airbrushing ;) There are other things that we sacrifice, I could probably be here all day.

But, when all is said and done, I wouldn't have it any other way. I get to see the mischief they get into. I get to see them build towers and habitats for their animals. I get to see them have a crazy dance party. I get to hug them when they are sad and be their confidant. There are somethings that when we think of the checklist of the world that we are for sure giving up, but when you think about love and family and things that really matter, the sacrifices don't really matter. We would and still do keep doing the same sacrifices over.

habitat that my oldest made

a dance performance for their dolls

a tall tower for their turtle

By being a one income family, it allows us to prioritize what is important to us, especially where our dollars go, and what family activities we should do. Are our priorities always what they should be? Heck No! We make lots of mistakes, but we are learning along the way and doing our best. It is also showing our kids that we can't always get what we want exactly when we want it. We have to work and save and plan for things. Are we perfect teachers? Nope! But, we are trying. We are trying to teach them the value of a dollar, what are needs and what are wants and that we have to cherish what we have already instead of going out and consuming more.

Sacrifice does not need to be a hardship. If we think about it. Sacrifice is an opportunity to live a life that will make us feel happy and fulfilled. That could be going against the norm and being less driven by consumption, or it could be going the other way and embracing consumerism and instead forgoing the simple pleasures in life. Sacrifice is about choice, about choosing how you want to live and then tailoring yourself and your surroundings to fit that ideal. If you want to get out of debt and stay out of debt, spending and mindless shopping needs to be sacrificed. If you want to have a garden, a nicely manicured part of your lawn will need to be sacrificed. If you want to spend time with your children as they grow up, a career may have to be sacrificed.

There is no one size fits all when it comes to sacrifice. It also doesn't mean you have to choose between a bad and a good thing. It could be choosing between a good and a better or best thing. So, think about what is important to the way you live, whether it be your own morals, ethics, or religious beliefs and say to yourself "what are the best things I should be doing to achieve the ideal?" Then strive to do them. As we do this we will realize that the actions, habits, or ways of life we are shedding is a freeing experience and that the sacrifice really isn't a sacrifice at all. It is bliss.

What are some of the ways that you sacrifice to live how you do? Do you consider them a hardship or do you find them to bring joy?