This chart has been up on my work cabin for a long while…
It read – “We will pay off our home loan by 2024 and Retire…. And Go on World Tour”
All in my husband’s hand.
One day while I was cleaning up my cabin and wanted to put away all irrelevant papers I gave this some attention. I asked him what his plan was to make this happen.
“When I put it up here I thought I will get LTIP (the equivalent of ESOP – something like performance bonus) and we will pay off the loan. But now that isn’t possible as I have resigned from the job. So I don’t know… The universe will conspire to make this happen. That’s why I have put it up here” – was his answer.
Very inspiring…! Are you serious about this, I asked. He said yes.
So we rolled up our sleeve and wore the planner’s hat –
Step 1) We redid our home loan by increasing the EMI. A 25% increase in EMI halved the remaining tenure of the loan (more details on another post)
Step 2) We worked on our budget to create a surplus. We follow it diligently.
Step 3) We are putting away this surplus in liquid mutual funds. We plan to redeem the balance every 6 months to pay against principal outstanding.
Step 4) Put up a “Fully Paid off” board by November 2024 🙂
Now the chart reads as you see in the picture – “We will pay off our home loan by 2024 by (^) increasing EMI by Rs.25000/- and keeping aside Rs. 1 lac/month for prepayment”.
Now, this is a plan. Not some wishy-washy hope.
Is your financial life also riding on such random hopes?
– My children will go to the best college, I will make that possible…
– I will retire comfortably and not depend on my children…
– I will create 100 crores wealth…
Or do you have a plan?