On our Mortgage Freedom series today, we’re going to interview someone who eliminated their mortgage on a single middle-class income in less than 8 years.
Jessi Fearon is a wife, mother to three little ones and during their nap time, she’s a financial coach. Her inspiring story of complete debt freedom has been featured in The Huffington Post, Nerd Wallet and BuzzFeed. When Jessi’s not crushing her debt and motivating others to do the same, she’s singing Garth Brooks songs and spending time with her family.
What would it feel like to never make a mortgage payment ever again?
For our Mortgage Freedom series, we’re interviewing Colin Murphy who eliminated his mortgage in less than five years. Colin is a father, a husband, and a Chicago native. He’s going to let us peek inside and see how he made this monumental feat happen.
For the young couples and parents that are reading this, I think it’s safe to say that a whole bunch of you are looking for a little more freedom and fun in your lives. And I truly believe that when you become debt free, you will experience that freedom. You’ll also experience a reduction of stress like you never have before.
I know that me just spouting off words and phrases like “debt freedom” or “stress reduction” may not motivate you to jump out of you seat and start crushing debt. But perhaps if we get a little more specific together, it may just do the trick.
Here are 7 dreams that can come true when you’re debt free:
Our second question of the month comes in from Amanda from Cleveland!
Hi! I had a question about credit cards and travel rewards.
My husband and I have no credit cards and we’ve paid off all of our debt except our mortgage. We’re looking to go to Hawaii for our 10-year anniversary and didn’t know if there was a credit card that we should sign up for to help us redeem more travel rewards.
We’re also not sure if getting a credit card is a good thing to do since we haven’t had them for a while.
Should we get a new credit card for the rewards or just pay with cash?
For some people, their pile of debt can feel so huge that paying it off just feels like fiction. It feels impossible. It feels overwhelming.
Well today, I’ve invited someone on the show who felt the same exact way, but then she took action and won the battle against her debt.
Allison Baggerly and her husband partnered together to pay off $111,000 of debt in 4 ½ years. They completed this difficult feat on two teacher’s salaries with two little kids at home. In our interview, she’s going to share with us how she did it.
Our first question of the month comes in from Nick from Tampa who responded to a blog post I wrote about paying off our mortgage (here’s the article):
I love this blog post. As a former Dave Ramsey groupie myself, I’m really excited for y’all! Would love to hear about your perspective one year later. I’m curious where you’re at with this? Have you followed through on your plans to allocate your savings like you say at the end of the post?
Have you invested in other opportunities?
How have the vacations gone?
Do you regret paying the mortgage off or do you still feel it was a smart decision?
When we paid off our mortgage early, it was one of the happiest days of my life. The major reduction in our overall annual expenses and my stress level was immediate. We celebrated with the whole family (check out our epic celebration here).
Little did I know though that one of the best days of my life would lead to one of the largest disagreements I’ve ever had with my wife of 8 years. We were really good at paying off the mortgage together, but we were not prepared for what we’d do with the money afterward.
We both had different ideas of what we should do with the money, but we didn’t communicate them to each other very effectively. (Well, I really didn’t).
To help remedy the situation, we decided to attend marriage counseling sessions after they were recommended by a good friend. It was one of the best decisions we’ve ever made as a couple.
Our question of the month comes in from Luke from Indiana:
I was reading on your blog that you recently paid off your mortgage early. Congratulations!
I’m a Dave Ramsey guy like you and we’re getting close to baby step 6. I’m considering going heavy into paying off my mortgage like you did, but I’m also thinking it might be smarter for me to invest more for my retirement or just simply invest in the market. I also know market returns are unpredictable and we’re near all-time highs.
I have a 15-year mortgage at around 4% and the principal sits around $200,000. My wife and I are both working – we like what we do and combined we make around $200,000 per year. I feel like we could throw $50k per year at the mortgage and we’d be done in 4 years or less.
That could also be a good amount to throw at our retirement each year too.
What would you suggest for us? Should we pay off our mortgage or invest the money?
I recently sent a letter (yes, a real letter) to my 20-year old nephew encouraging him to start saving for his retirement today. With time and compound interest on his side, his options are endless. In order for him to reach financial independence, he’ll need to invest and adopt some crucial money-smart habits early on in his life.
Cross your fingers for me that the message resonates with him!