Wednesday, 8 May 2013

Mortgage Plan Revisited – Yearly 10%

Following yesterdays post I am looking at what I’ll need to make my 10% principal payments over the next four years.  The payments are laid out as follows:

Year 1 - $15,200 - PAID!
Year 2 - $15,200 - Sitting in bank account waiting to be paid
Year 3 - $15,200 - $4,697.90 sitting in bank account
Year 4 - $15,200 – Not saved yet
Year 5  - $1,900 – Not saved yet

Amount still needed - $27,602.10

The biggest way to take a bite out of that would be to get funding for my Masters tuition thus freeing up the $15,700 that I have set aside.  Other sources of money are

Tax Returns - $1050/year for four years.  ($4,200)

Yearly bonus - $300/year for four years.  ($1,200)

Tutoring 3hrs/week until September.  ($720)

Tutoring 1.5hrs/week past September.  ($4,590)

If all of these pan out I would be short $1,192.10.  That said I may be able to pick up extra hours with my day job, or more students after I finish my Masters.  I estimated low on my tax returns and assumed that my yearly bonus would not go up at all.  In a pinch, near the end I could dip into the $9,000 that I have put aside for a car but am not planning on using as long as I have two working legs and the bus system keeps running. 

In other words . . . bring it on world, that mortgage is toast! 

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