It’s been 4 months since we set a goal of paying off the mortgage by 2020 and to have a net worth of at least $1M by 2025. This is the 4th update on the progress of the goal. If you’re wondering why we set this goal, see here.
This month, we paid a total of $7,100 towards the principal balance of our mortgage to bring it down to $159,900. I got a real estate commission this month from selling a house, which provided some extra income. We used some of it to pay extra on the mortgage. We are still on track to pay off the mortgage by 2020.
| Date | Months left | Intermediate goal | Actual balance | Principal reduction |
| 2/19/2016 | 58 | $179,304 | $179,304 | – |
| 3/19/2016 | 57 | $176,700 | $174,481 | $4,823 |
| 4/18/2016 | 56 | $173,600 | $169,993 | $4,488 |
| 5/17/2016 | 55 | $170,500 | $167,000 | $2,993 |
| 6/20/2016 | 54 | $167,400 | $159,900 | $7,100 |
Net worth = assets – liabilities, or everything we own minus everything we owe. I’m not including our cars here, which are both paid off, to keep the calculation a little simpler. I am including an estimate of home equity.
We increased our cash position to $23,094 with some extra income this month. We were able to pay down the mortgage principal $7,100 to get us a little further ahead on our mortgage goal. Our net worth increased by $12,097 to $358,075 this month.
| Date | Home equity | Investments | Cash | Net Worth |
| 2/19/2016 | $140,695 | $149,076 | $21,813 | $311,584 |
| 3/19/2016 | $145,519 | $164,791 | $23,512 | $333,822 |
| 4/18/2016 | $150,007 | $171,697 | $17,457 | $339,161 |
| 5/17/2016 | $153,000 | $171,305 | $21,672 | $345,978 |
| 6/20/2016 | $160,100 | $174,881 | $23,094 | $358,075 |
so how did your net worth grow almost 50k in 5 months?
Thanks for the question. Our net worth increase comes mostly from multiple income streams (patent job, wife’s job, real estate, rideshare driving, and blogging). This blog just surpassed $1,000 in income this month, and all the other activities have earned more than that right now. We also contribute a good amount into our retirement accounts and part of that gets matched by our employers. Most of it is invested in index funds, which have experienced some growth over the past few months. We are using some of our income to pay down our mortgage, as you can see above. We’ve used about 20k of our liquid assets to pay down principal on the mortgage so far.