BLOG – I paid off my mortgage in 7 years. How? Earn, Learn, Yearn & Return (2 minute read)

“Up to 1 million Aussie households set to go into mortgage default”. Those were the news headlines last week.

Independent analysis suggests that if the big four banks raise standard variable rates by as little as 0.15 percentage points, 975,000 Aussie owner-occupiers will default. None of us can afford to be a victim of an interest rate rise.

I paid off my first mortgage in 7 years instead of 25 years.

I’m not telling you this to gloat. Far from it. It was really hard work. I’m telling you because we’ve all been led to believe that it takes 25 or 30 years to pay off the average mortgage. I’m sharing my experience to inspire you to try something different.

Everyone’s circumstances and financial obligations are different. This is what worked for me.

EARN – I had a full time job in an engineering consultancy. I also worked part-time as a scuba diving instructor. I picked up casual work tutoring literacy, I picked up shifts cooking on a dive boat and silver service waitressing. A few extra hundred dollars here and there takes years off a mortgage.

“I don’t have time to work a 2nd job” I hear you say….

LEARN – I learnt to do things differently. I rented out my driveway, my garage, my spare room and scuba equipment. A lodgers rent can cover half the mortgage. If you live near a train station you could get $60 a week from a commuter needing a park.

YEARN – I realised that when you get your first mortgage you need to spend less than your earn. Yearn for smashed avo on toast and takeaway coffee, and then do what I did – I packed my own lunch, I cooked meals from scratch and I made breakfast at home.

RETURN – I’m not a financial planner and I’m not giving financial advice, but I did return every cent to the bank. I found a high interest savings account, put every spare cent there and every 12 months I made lump sum mortgage overpayments. Speak to your bank to see what could work for you.

Galileo said, “We cannot teach people anything; we can only help them discover it for themselves”….

BUY the Underspent book. Available in paperback and e-book, iBook & kindle formats in all book shops or buy a signed copy from me via ‪‪‪‪‪‪www.cyclingrachelsmith.com‬‬‬‬‬‬

Next week I’m offering all readers access to a free 3 day Underspent program.

Until next week…