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Should You Be Tracking Your Savings Rate And Net Worth?

June 20, 2017 By Omar

Getting out of debt is hard to do but it isn’t hard to track your progress. More than likely you’ve got some huge number in front of you and your goal is to get it down to zero. Having that goal in front of you constantly is motivating as hell. For me, tracking my progress towards a goal motivates me to stick with it. 

The big goal Kim and I are trying to accomplish currently is financial independence. How in the world do you track a goal that big? By breaking down your progress towards that bigger goal into smaller, trackable goals. What exactly should we be tracking though?

I researched ways people track their progress to financial independence. This is when I came upon the FIRE community and bloggers. FIRE stands for Financially Independent, Retire Early. These are people that “retire” well before the traditional retirement age (usually age 60+).    

** side note: These are the bloggers and their articles that I came across during my research. Some of them I found before we started blogging and others I found afterward.

  • Sam at Financial Samurai | How To Retire Early And Never Have To Work Again
  • Joe Udo at Retire By Forty | Are you on track to retire by 40, 50, or 60?
  • Mr. 1500 at 1500 Days To Freedom | Goal Progress
  • PoF at Physician On Fire | Physician On Fire Guide To Retiring At 45 | The Live On Half Challenge

I’ve summed up all these articles into two numbers you need to track – Savings Rate and Net Worth. Since getting my hands on this information we’ve been tracking both our savings rate and net worth. 

Should You Be Tracking Your Savings Rate And Net Worth?

Disclosure: This page contains affiliate links, which means that we may receive compensation if you click on those links and make a purchase or sign up for a program. This is at no additional cost to you and helps support the blog. You can read our affiliate disclosure here for more information.

Savings Rate

Savings Rate equals how much you save (per month or per year) divided by how much you’ve earned. For example, if you bring home 40k a year and save 10k a year then you have a 25% savings rate. If you are budgeting it should be extremely easy to get these numbers and calculate your savings rate. 

If you aren’t budgeting but want to start feel free to subscribe to our blog to get our free budget template. You can also check out our post How To Get Started With A Zero-Based Budget to show you how to get started with doing a budget. 

Net Worth

Net worth is the value of your assets minus your liabilities. Assets are anything that you own of value that can be converted to cash. Liabilities are anything that you owe money on including any debts, loans and even things that are considered assets if you owe any money on them.

Net worth can be a bit harder to track in comparison to savings rate.

So let’s say I own a home worth 200K, have 10K in cash, own a car worth 15K, and have 25K in retirement funds. The value of my assets would be 250K. Now let’s say that I owe 190K on that home, 18K on that car, have 20K in credit card debt, and 50K in student loans. These are my liabilities, which equal 278K. In this case, my net worth is negative 28K (250K – 278K). Your net worth is the big picture and represents the result of financial decisions made over a long period of time.

Tracking Our Savings Rate And Net Worth

Our Savings Rate

We started tracking our savings rate at the beginning of this year. I created a formula in our own personal budget template that will automatically calculate our savings rate. 

Here’s a picture of a special “Year to Date” tab I created in our budget template to help us track our savings rate.

YTD Savings Rate

Our Net Worth

We decided to start tracking our net worth last year when I was losing motivation towards reaching our financial goals. When we bought our house the plan was to cash flow updating it. After it’s updated we discussed that we would work towards paying our home off. We’re on track with how long we thought it would take to update our house. However, I am beyond ready for financial independence since our house is the only debt we have. Kim, on the other hand, wants our house updated. It’s her motivation for wanting to stay here, and it’s definitely working now that we have the kitchen updated.   

Our compromise to make this work for the both of us was to make sure we were investing 15% of our income (baby step 4) and to track what we were investing. Last year I started researching ways to easily track our net worth. That’s when I came across Personal Capital, which is a free online tool that you can use to track your net worth. All you have to do is create a login and then link it to your banking and investment accounts. You will also add any car loans unless they’re paid off. If they’re paid off, you add the car value. The same goes for your house – add the amount of your loan, but also add how much your house is currently worth. It will do the rest for you. 

Personal Capital also has really cool reporting features that allow you to see your investing rate of return compared to the indexes over a time span that you specify. That’s particularly helpful for me because I need to see progress in order to stick with something. The ability to look back exactly a year ago and see what we’ve been able to accomplish is huge for me. 

** side note: They also have a Retirement Planner Calculator that you can use to help plan for your retirement. After all, part of the reason for increasing your savings rate and net worth is so that you can plan appropriately for your retirement.

Personal Capital has helped to keep me motivated as well. Kim says I check it too much – OK maybe I’m a little excessive since I check it at least three times per week. But I think it’s amazing to watch our net worth grow as our investing increases and our mortgage loan decreases. 

Final Thoughts

Parts of this post was math/numbers intensive. I want to clarify that even though the numbers are fun for me that isn’t the point of this. I remember some years ago when Kim and I were talking about this with a group of friends one day. One of them who doesn’t really care for this stuff said, “So this is just a big game to see who can get the biggest number? Is that the point?” My answer – NO. This isn’t just about amassing a huge sum of money just to brag about it. It’s about having the ability to NOT work if I don’t want to and being able to take a vacation without always having to ask my boss for permission. It’s about making sure my family is always financially stable no matter what is happening in the world. Money is only a tool to accomplish these goals and we’re tracking our savings rate and net worth to aid in doing so.

Do you track your savings rate and net worth? If so, what tools do you use? If not, have you thought about it?

** If you’re currently using our budget template and would like help adding the savings rate calculation to your budget template, let us know! Also, if you’re looking for an easy way to track your net worth, don’t forget to check out Personal Capital. **

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Filed Under: Personal + Finance Tagged With: net worth, personal capital, savings rate

See what’s happening on Instagram…

thinkingofsomeday

As of 1/8/2022, it’s been one year since we beca As of 1/8/2022, it’s been one year since we became mortgage free. What better way to celebrate than a date night in our paid off home?! 😏
⠀⠀⠀⠀⠀⠀⠀⠀⠀
So how does it feel?
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Financially, we invested the most money we've ever invested. We also increased our lifestyle a bit as well to keep a healthy balance.
 ⠀⠀⠀⠀⠀⠀⠀⠀⠀
Kim’s Perspective: 
⠀⠀⠀⠀⠀⠀⠀⠀⠀
It’s been great. For the longest it felt surreal and unbelievable that we actually did it. I never really worried about paying off the mortgage because I knew that worst case scenario, it would be paid off in 15 years, which would’ve been when we were 45 (and that’s not a bad age at all). However, it’s been nice to know that it’s not something that Omar is stressing over anymore. And since it was one of his biggest dreams/goals, it’s nice knowing that I was able to support him 100% of the way in making this happen for us and our family. I’m glad this is something he wanted to pursue and that I was actually on board with it. What I’ve enjoyed most about it is being able to spend more money (of course 😆) because a lot of things were put on hold while we focused on the payoff. So now I feel like I’m at that point where I can make our house more of a home for us. It literally feels like we’re in a new space (mentally and physically) and we’re loving it.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Omar’s Perspective:
⠀⠀⠀⠀⠀⠀⠀⠀⠀
This past year has probably been the best year I've had in life. I've been the least stressed I've ever been, but took on the most responsibility at work I've ever taken on which lead to a promotion and an increase in income. This boggles my mind as more responsibility at work usually means more stress. I feel like I’ve been able to focus on other areas of my life more (my health/weight as well as making more of an effort to maintain my relationships with friends/family). Most importantly, I realize the strength of my marriage.  With the state of dating/relationships these days, I realize I won the lottery with Kim.  She's an amazing wife and mother. We've always had a good relationship but we're stronger than ever.  We started from the bottom now we're here (in my Drake voice). 🎶 #thislifeafterdebt
After taking some time to think about what we want After taking some time to think about what we wanted to focus on for this year, we decided that our word for the year is health.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Overall we both want to continue making healthier choices when it comes to eating. And we both want to focus on exercising more than we have in the past and be way more consistent with it.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
At the end of the day, what’s money, financial freedom/independence and wealth if you’re not healthy? And we definitely have high blood pressure, diabetes, etc that run in our families. We have kids to live for and that’s what we plan to do to the best of our ability!
This is what our financial goals ended up looking This is what our financial goals ended up looking like for this year. We’re pretty pleased with the outcome and the fact that we still enjoyed ourselves throughout the year and even made some pretty big purchases (like that whole couch saga I shared in my stories 😆). We’re looking forward to seeing what the next year holds! #thislifeafterdebt
We didn’t officially choose a word for 2021, but We didn’t officially choose a word for 2021, but if we had to say a word that was our word for this year it would be “intentional” by far.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
At the end of 2020 and beginning of 2021 we were very intentional about pulling money from an inherited IRA so that our tax bill wouldn’t be ridiculous like it would have been if we pulled a lump sum at one time. We then used the money to help pay off our mortgage 8 days into 2021.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
What we were even more  intentional about was our plan for what we were going to do with our mortgage payment once we didn’t have a mortgage anymore. We didn’t want to frivolously spend that money. So we actually came up with our plan a couple months before making our final payment. But literally after that payment on January 8, 2020, our new mortgage-free budget was in full effect! So yea, “intentional” is definitely a good word to sum up 2021 for us. #thislifeafterdebt
Some of the things we automate are:
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Our Budget:
⠀⠀⠀⠀⠀⠀⠀⠀⠀
For the longest we use to type everything we were going to spend or save into our budget template. It wasn’t super time consuming but it wasn’t efficient when it came to our regular bills/expenses. Then one day we decided to prefill the template and copy and paste it month to month for our regular bills/expenses. All we have to do is add anything else we spend.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Savings / Investing:
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Most of our savings/investing and even our gas and spending money our automated transfers. It beats having to go in and make multiple transfers to our personal accounts and our sinking funds. The 529 accounts for the kids and the Roth IRAs are automatically transferred. But for the brokerage account we have to manually transfer the money because it’s never the same amount each paycheck.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Bill Pay:
⠀⠀⠀⠀⠀⠀⠀⠀⠀
I’ve never been a fan of bill pay because I don’t like companies having that type of access to my money. 🥴 And whenever they mess up and charge you too much, they’ll try to just credit your account instead of putting the money back in your bank account. 🙄 However, I’m a tad bit more trusting these days. Lol. Our home alarm had no option but to be auto drafted. Since the amount wasn’t much and is always the same price, I agreed. And the only other bill auto drafted is our cell phone bill after many many years (gasp! haha). Some of the other bills are paid via online bill pay via our banking account. #thisfinancialconfession
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Doing all of this has been a game changer and time saver. Are you team automate or team manual?
It’s been a minute since I’ve made a charcuter It’s been a minute since I’ve made a charcuterie board. So I figured Christmas brunch was the perfect time. And plus, that meant less time in the kitchen for me with cooking because I knew I was going to be cooking dinner today. #piecesofsomeday
Merry Christmas! And 2 pictures because it’s gua Merry Christmas! And 2 pictures because it’s guaranteed that someone isn’t going to be looking. 😆 #christmas2021 #piecesofsomeday
We purchased our house for $168.5k (after the down We purchased our house for $168.5k (after the down payment). We refinanced at $165k.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
If we took 30 years to pay it off, our total would’ve been $293k.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
If we paid the 30-year mortgage like a 15, then it would’ve been $225k.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
After we refinanced to a 15-year, if we took 15 years to pay it off, then our total would’ve been $205k.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Instead, we paid off our mortgage in a little over 7.5 years.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
We ended up paying a total of $200k with interest.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Paying $200k for this home with how it looked when we purchased it sounded a lot better than having to pay a total of $293k if we end up being here for 30 years! This was yet another factor that helped us decide to pay it off early. #thislifeafterdebt
Part of the reason we decided to refinance and eve Part of the reason we decided to refinance and even pay our house off early is because of the amount of money we were paying in interest on our mortgage. So of course, several months after we paid off the mortgage I began to wonder just how much did we really pay in interest. So I asked Omar if there was a way to figure it out. At first he was like, “Really Kim?” 😳 And of course I was like, “Ummm yea.” 😬 Lol.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Jun 2013 is when we bought the house. So there wasn’t much interest paid then.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
2014 and 2015 is still when we had the 30-year mortgage. It’s also the years that we paid the most interest. We refinanced at the end of 2015.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
2016 is when we made our first payment with the 15-year mortgage. It’s crazy how the amount of interest decreased based off that alone.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
2019 is when we decided to pay off our mortgage early. It was supposed to take 6 years. But instead we used RSUs and sped it up tremendously.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Jan 2021 is when we paid it off before our first payment would’ve been due. $27 was the last bit of interest we paid on our mortgage.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Grand total: $35,102.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
If we had continue to just make regular payments on the 15-year mortgage, we would’ve paid a total of $56,279. A difference of $21,177. 🙌🏽 🙌🏽 #thislifeafterdebt
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Comments

  1. Kris says

    June 20, 2017 at 5:52 pm

    I use an excel spreadsheet to keep track of my finances(including savings rate) on a monthly basis. It is almost to your budget template in which includes my monthly income and a breakdown of my expenditures(rent, groceries, bills, etc..). I think it’s great to see your savings rate just to know how much you are saving and see what areas I could save more.
    And just like you guys, I have Personal Capital to see all of my investment accounts so I do not have log in to each one individually, its all there. I was like you Omar when I first had it, I logged on like 2-3 times a week just to see the progress of the accounts…lol. But now checking up on it 1-2 times a month is fine.
    Overall, I believe evaluating your financial situation especially your savings rate and net worth are important factors to see if you are making good progress to reach one of your goals like buying a home, retirement, to keep building up your savings, etc..

  2. Omar says

    June 21, 2017 at 7:52 am

    Thanks for the comment Kris. I think I’ve cut checking personal capital to twice a week now(lol)! I’m going to get it down to 1-2 a month like you one day though! It has been so fun and motivating seeing my networth grow so quickly! It’s amazing how much money you can save when you are debt free. I can’t wait to get rid of this mortgage!

  3. Ms. Frugal Asian Finance says

    June 23, 2017 at 9:10 am

    Interesting question and analysis! I agree with you that we should! Mr. FAF and I have been focused mainly on the savings rate. We didn’t really think much about net worth until I joined the PF blogging community. To us, we were just poor and didn’t have a big net worth because we are still in debt (mortgage). But after I calculated our net worth, we were relieved to see that maybe it’s not as bad as it seems. 😀

    • Omar says

      June 23, 2017 at 1:28 pm

      Tracking our networth is relatively new to us as well. It’s crazy to see how much debt hurts you when you look at the numbers. I’m glad you are doing better than you thought though!lol!

  4. Miss Mazuma says

    June 24, 2017 at 9:34 am

    Yes, yes, yes. You should be tracking your net worth and savings rate. These two thing have motivated me to push harder for FI. It is a numbers game, but not in comparison to others. I’ve been tracking my net worth since 2012 through the loss of my properties, divorce, and rebuilding my life. It is nice to look back and see the progress you’ve made! As for my savings rate, I’ve only been tracking that for a couple years but knowing that number makes you losely aware of your timeline in terms of FI. See: http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

    I’ll add, tracking your expenses is HUGE in helping to see where the holes in your spending are. I found a lot of waste in my grocery, restaurant, and entertainment areas. I still do all of those (obviously groceries!) but I have trimmed all of those expenses considerably and STILL live an awesome life including plenty of travel. 🙂

    • Kim says

      June 24, 2017 at 10:35 am

      It’s nice to hear that even with having to rebuild your life, you started tracking both your savings rate and net worth. I think it’s important to do so especially in times like that because you still have to be prepared for now and for your future. Being able to look back and see how our savings rate and net worth has grown is one of the things that we like about tracking it. It’s like motivation within itself to see if we can do better.

      When it comes to budgeting and tracking our expenses, it’s definitely easy to look back and see where our money is going. We don’t eat out much, but our grocery bill is always a debate. I don’t think it’s something Omar will ever agree to try to decrease and I’ll never agree to try to increase it. Lol. It’s also nice to hear that you feel like you still live an awesome life because so many people think that by budgeting or tracking their expenses they won’t be able to do so.

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A married couple making someday a reality all while balancing family + finances + avoiding debt. Find out more about us, here.

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See what’s happening on Instagram

thinkingofsomeday

As of 1/8/2022, it’s been one year since we beca As of 1/8/2022, it’s been one year since we became mortgage free. What better way to celebrate than a date night in our paid off home?! 😏
⠀⠀⠀⠀⠀⠀⠀⠀⠀
So how does it feel?
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Financially, we invested the most money we've ever invested. We also increased our lifestyle a bit as well to keep a healthy balance.
 ⠀⠀⠀⠀⠀⠀⠀⠀⠀
Kim’s Perspective: 
⠀⠀⠀⠀⠀⠀⠀⠀⠀
It’s been great. For the longest it felt surreal and unbelievable that we actually did it. I never really worried about paying off the mortgage because I knew that worst case scenario, it would be paid off in 15 years, which would’ve been when we were 45 (and that’s not a bad age at all). However, it’s been nice to know that it’s not something that Omar is stressing over anymore. And since it was one of his biggest dreams/goals, it’s nice knowing that I was able to support him 100% of the way in making this happen for us and our family. I’m glad this is something he wanted to pursue and that I was actually on board with it. What I’ve enjoyed most about it is being able to spend more money (of course 😆) because a lot of things were put on hold while we focused on the payoff. So now I feel like I’m at that point where I can make our house more of a home for us. It literally feels like we’re in a new space (mentally and physically) and we’re loving it.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Omar’s Perspective:
⠀⠀⠀⠀⠀⠀⠀⠀⠀
This past year has probably been the best year I've had in life. I've been the least stressed I've ever been, but took on the most responsibility at work I've ever taken on which lead to a promotion and an increase in income. This boggles my mind as more responsibility at work usually means more stress. I feel like I’ve been able to focus on other areas of my life more (my health/weight as well as making more of an effort to maintain my relationships with friends/family). Most importantly, I realize the strength of my marriage.  With the state of dating/relationships these days, I realize I won the lottery with Kim.  She's an amazing wife and mother. We've always had a good relationship but we're stronger than ever.  We started from the bottom now we're here (in my Drake voice). 🎶 #thislifeafterdebt
After taking some time to think about what we want After taking some time to think about what we wanted to focus on for this year, we decided that our word for the year is health.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Overall we both want to continue making healthier choices when it comes to eating. And we both want to focus on exercising more than we have in the past and be way more consistent with it.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
At the end of the day, what’s money, financial freedom/independence and wealth if you’re not healthy? And we definitely have high blood pressure, diabetes, etc that run in our families. We have kids to live for and that’s what we plan to do to the best of our ability!
This is what our financial goals ended up looking This is what our financial goals ended up looking like for this year. We’re pretty pleased with the outcome and the fact that we still enjoyed ourselves throughout the year and even made some pretty big purchases (like that whole couch saga I shared in my stories 😆). We’re looking forward to seeing what the next year holds! #thislifeafterdebt
We didn’t officially choose a word for 2021, but We didn’t officially choose a word for 2021, but if we had to say a word that was our word for this year it would be “intentional” by far.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
At the end of 2020 and beginning of 2021 we were very intentional about pulling money from an inherited IRA so that our tax bill wouldn’t be ridiculous like it would have been if we pulled a lump sum at one time. We then used the money to help pay off our mortgage 8 days into 2021.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
What we were even more  intentional about was our plan for what we were going to do with our mortgage payment once we didn’t have a mortgage anymore. We didn’t want to frivolously spend that money. So we actually came up with our plan a couple months before making our final payment. But literally after that payment on January 8, 2020, our new mortgage-free budget was in full effect! So yea, “intentional” is definitely a good word to sum up 2021 for us. #thislifeafterdebt
Some of the things we automate are:
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Our Budget:
⠀⠀⠀⠀⠀⠀⠀⠀⠀
For the longest we use to type everything we were going to spend or save into our budget template. It wasn’t super time consuming but it wasn’t efficient when it came to our regular bills/expenses. Then one day we decided to prefill the template and copy and paste it month to month for our regular bills/expenses. All we have to do is add anything else we spend.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Savings / Investing:
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Most of our savings/investing and even our gas and spending money our automated transfers. It beats having to go in and make multiple transfers to our personal accounts and our sinking funds. The 529 accounts for the kids and the Roth IRAs are automatically transferred. But for the brokerage account we have to manually transfer the money because it’s never the same amount each paycheck.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Bill Pay:
⠀⠀⠀⠀⠀⠀⠀⠀⠀
I’ve never been a fan of bill pay because I don’t like companies having that type of access to my money. 🥴 And whenever they mess up and charge you too much, they’ll try to just credit your account instead of putting the money back in your bank account. 🙄 However, I’m a tad bit more trusting these days. Lol. Our home alarm had no option but to be auto drafted. Since the amount wasn’t much and is always the same price, I agreed. And the only other bill auto drafted is our cell phone bill after many many years (gasp! haha). Some of the other bills are paid via online bill pay via our banking account. #thisfinancialconfession
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Doing all of this has been a game changer and time saver. Are you team automate or team manual?
It’s been a minute since I’ve made a charcuter It’s been a minute since I’ve made a charcuterie board. So I figured Christmas brunch was the perfect time. And plus, that meant less time in the kitchen for me with cooking because I knew I was going to be cooking dinner today. #piecesofsomeday
Merry Christmas! And 2 pictures because it’s gua Merry Christmas! And 2 pictures because it’s guaranteed that someone isn’t going to be looking. 😆 #christmas2021 #piecesofsomeday
We purchased our house for $168.5k (after the down We purchased our house for $168.5k (after the down payment). We refinanced at $165k.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
If we took 30 years to pay it off, our total would’ve been $293k.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
If we paid the 30-year mortgage like a 15, then it would’ve been $225k.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
After we refinanced to a 15-year, if we took 15 years to pay it off, then our total would’ve been $205k.
⠀⠀⠀⠀⠀⠀⠀⠀⠀
Instead, we paid off our mortgage in a little over 7.5 years.
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We ended up paying a total of $200k with interest.
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Paying $200k for this home with how it looked when we purchased it sounded a lot better than having to pay a total of $293k if we end up being here for 30 years! This was yet another factor that helped us decide to pay it off early. #thislifeafterdebt
Part of the reason we decided to refinance and eve Part of the reason we decided to refinance and even pay our house off early is because of the amount of money we were paying in interest on our mortgage. So of course, several months after we paid off the mortgage I began to wonder just how much did we really pay in interest. So I asked Omar if there was a way to figure it out. At first he was like, “Really Kim?” 😳 And of course I was like, “Ummm yea.” 😬 Lol.
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Jun 2013 is when we bought the house. So there wasn’t much interest paid then.
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2014 and 2015 is still when we had the 30-year mortgage. It’s also the years that we paid the most interest. We refinanced at the end of 2015.
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2016 is when we made our first payment with the 15-year mortgage. It’s crazy how the amount of interest decreased based off that alone.
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2019 is when we decided to pay off our mortgage early. It was supposed to take 6 years. But instead we used RSUs and sped it up tremendously.
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Jan 2021 is when we paid it off before our first payment would’ve been due. $27 was the last bit of interest we paid on our mortgage.
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Grand total: $35,102.
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If we had continue to just make regular payments on the 15-year mortgage, we would’ve paid a total of $56,279. A difference of $21,177. 🙌🏽 🙌🏽 #thislifeafterdebt
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