In an earlier post, I mentioned that paying down the mortgage was the next item in the “Be Debt-Free” to-do list.
But after filling out this year’s tax form and realizing that the education interest loan deductions that we got were ineffective in lowering our income tax, I decided to shift financial gears. Instead of going from “highest interest to lowest interest”, it’s “lowest balance to highest balance.” That way, we can free up more money per month faster, which we can use to pay off the other debt down the list.
With the Hubby’s school loan from graduate school hovering around $19K, paying that off by year’s end is highly feasible, which would leave just the mortgage and my graduate school loan as the remaining debt.
In this deepening recession, I’m always mindful of those two sides of the Lizardqueen’s financial sheet: assets on one side, liabilities on the other. My goal, once I shuffle off this mortal coil, is to have nothing on the “liabilities” side and have a big, fat amount of cash and property on the “assets” side, to give financial security to my family.
And, the older I get, the more I better get a move on to do that, as I know that medical bills only mount up as the years go by. (I’ve heard enough horror stories on the news of elderly people losing their houses and going into bankruptcy because of insurmountable medical expenses). Hence, my “GO GO GO” of getting rid of this debt.
Naw, I don’t see me retiring; like some professors I know at my alma mater, I’ll probably work till I die.
Good thing I like my job. 🙂