In the last financial year, we paid down $46,800 of debt. Plus, my partner paid off her entire student loan- seven years after graduating. That is another $4,800. I’m proud of that number! I’m not here to brag about it, just to share how we did it.
First, of, we have been fortunate in that we don’t have any other debts.
$52k of debt in one year?
How did we pay $52,000 of debt in one year? We paid ourselves first. All our debt payments are automatically scheduled and synced to our paychecks. We never see the money in our account.
Wages come in, debt payments go out. There is no way that we can get our hand on that cash.
And we have to make do with the money left over after we pay our debt obligations.
In the next financial year, we will pay down $52,000 of debt on the mortgage. $1000 per week going to our mortgage. It’s an eye-watering amount of money. But paying down now will save us thousands in the long run.
Once my partner’s student loan had been paid off, we directed all the extra money to pay down the mortgage faster. Saving $11,000 and 1.25 years on the term of our loan
You can do it to
Your debt paying schedule is not going to be the same as ours. But you need to pay yourself first.
Automatically schedule your debt payments and you can pay down extraordinary amounts on your debt. Our mortgage payment goes out the same day our wages come in. There is no time for us to get our hands on the money! This is the same method that you should use for investing. An automated payment into my investment account. You should do the same! Pay yourself first!
Schedule your automatic payments now!
That’s one of the rules of succeeding at personal finance, check out the other 9 rules of personal finance.
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