This is just a heavy numbers post where I project out my next 6, 18 month and 5 years.
Current total debt stands at 320K today.
Projection for next 6 months, and 18 months. Basically I’m cutting debt by about 15K every 6 months. Paying extra mortgage 800 a month, while still saving over 20% of income.
I’m keeping Credit Card at it’s current amount. We pay off every month, but it just fluctuates from about 4K-15K depending on where we are in the month.
|6 Month||18 Month|
15K every 6 months would be about 128 months (10 years 8 months) to 0 debt without accelerating any of your current pay off schemes. This doesn’t count the likelihood of another car purchase or lease during the next 2 years. It basically lines up with the mortgage being paid off ~10 years.
What about assets. Taking my trailing 18 month 6 month average, we are looking at 37K average saving increase each 6 months (non-retirement).
Current liquid assets 305K. 6 Month projection, 342K, and 18 month projection 416K. Prime earning years definitely. Here is the 6 month projection. A 37K surplus, which is well ahead of my old projections, and on track with my most recent projections.
On the assets there is about a max drop of 25% due to my investment risk profile, with an 18 month recovery (I’ve modeled this after the financial crisis of the previous decade… sure it could be worse, or not).
So that leads us to 638K vs 185K debt in June 2024. I think that seems the likely time to pay off the mortgage if investments are not in that ’18 month recovery phase’. That would put us at a 15 years on our 30 year mortgage (15 years and 2 months to be exact).
This would leave us with 453K invested in non-retirement accounts, which is a pretty nice place. 5 years… age 47. This would be no gap in employment and continue on basic 2% raises and stock bonuses. Prime earning years…. fingers crossed that I can keep this up. Puts the family in a very good financial position.