We live in a country with one of the highest household debt to income ratios in the world, but the other day, Robert and I made the final deposit against our mortgage, and became 100% debt free!
This is the second mortgage I’ve paid off, and it feels pretty much the same as it did the first time… liberating, yet anti-climatic.
In January, I wrote a post about financial priorities. If you want to know how we’ve managed to be debt free by 40, I divulge our secrets there. Actually, there aren’t any big secrets… it’s about priorities, choices, and balance.
Even before we’d met each other, Robert and I prioritized our longterm goals above our immediate wants, and it’s finally paying big dividends. By living modestly and avoiding non-mortgage debt in the first place, we’ve been able to divert most of our income to paying down mortgage principle, which has saved us tens of thousands of dollars, and given us financial freedom.
But what does it change? Not much, really. We were so excited when we transferred the money and saw the balance zero out, then we celebrated with a fancy bottle of Champagne, now it’s back to business as usual. It’s a nice feeling to be debt free, but we’re not suddenly multi-millionaires, and not much has actually changed.
We plan to continue as we’ve started. We don’t have any major celebratory purchases planned (except the bottle of Champagne). Our lifestyle won’t change. I’ll continue to shop the weekly offers, cook from scratch, buy from secondhand stores, carpool, and have my spa treatments at the local beauty college for half price. We’ll travel and splurge once in a while on jewelry or designer goods, but otherwise, we’ll continue to live our simple day to day life in our modest city center apartment, saving for sunnier days in England.
I appreciate this moment, its freedom, and what it represents, but everything we wish for and dream of is in England, just out of reach for now.
We dream of a nice historic house on a pretty English street. I want to drive a vintage convertible and shop at a well-stocked supermarket, have a garden, cook in a big beautiful kitchen on a fabulous Aga, take bubble baths in a deep clawfoot tub, sleep in a bedroom with a fireplace, cuddle Opie, and hang out with Robert.
Life right now seems so far away from all but the last two points, but I’m grateful that for now, we own our own little piece of the happiest city in the world free and clear, that property values are rising, and that we have a plan.
It’s the small choices we’ve made every day like bringing lunch instead of buying lunch, and paying cash or going without that have added up over time in a big way and made this possible. As Robert says, ‘look after the pennies and the pounds will look after themselves.’ Truth.
Carol says
Love and agree with everything you’ve posted! That’s how I’ve managed to get debt-free as well, although not quite by 40 :). Congrats!
Sage says
Thanks, Carol… and good for you!
Alanna says
Congratulations on paying off your mortgage!! Wow! What an accomplishment!! I loved reading your post! Your writing really drew me in. I am heading over to your “Financial Priorities: Glamour on a Budget” post to read that now! It’s very inspiring to hear stories like yours. I am debt free but do not own a home yet. When I own a home, I would love to be debt free within 10-15 years! Thanks for sharing your story. I will definitely be coming back to your site for tips.
Sage says
Thanks, Alanna! And way to go on being debt free : -)
rochkirstinr says
Congratulations for being debt-free. There are so many people in the world having the same dream. Seeing that you have a balance of zero is always exciting and that really deserved to have a celebration. It’s a huge milestone in your life, something you can be proud of.
Jenny says
Congratulations on achieving your goals for being debt-free. I can’t imagine paying off 2 mortgages. I hope to be able to say I have paid off one. We are still working on student loans for me but have no credit card debt.
Sage says
Thanks, Jenny! Those student loans can be a killer. Fortunately, I had a full academic scholarship and several grants, so I graduated debt free. No credit card debt is definitely something to be proud of!
Fi Ní Neachtáin says
Huge congratulations to you and Robert for paying off your mortgage, what an amazing achievement. It’s my dream one day to do this too. I absolutely hate renting, it’s such a horrible waste of money. Being debt-free is such a wonderful feeling isn’t it, enjoy the feeling for as long as you can :)
Sage says
Thanks, Fi. I joke that renting is against my religion. I bought a place when I first moved to Denmark to avoid renting and even though I lost money on the resale, I still came out of ahead of where I’d have been if I’d rented. But, I’m not sure the cost savings was worth the stress of buying, owning, and selling property in a country where I didn’t speak the language, I got more than a few grey hairs in that process :(
Dina Demarest says
Congrats! This is not an easy feat to accomplish. It takes hard work and dedication to get your mortgage paid of so quickly. These are great leads for others to follow and see that it’s hard but it absolutely can be done.
Joanne T Ferguson says
BIG congrats and what a great day and feeling that was! Think of all the things you can now look forward to doing without a mortgage over your head!
travisntucker says
Congratulations on being debt free! I’m so happy that you and your husband have the willpower to forgo so many luxuries in the name of having an incredible future. If only I could be that disciplined; I’m always looking for the next book or movie to buy!
Sage says
Thanks! We live a good life and definitely don’t feel deprived. I’d rather have nice trips, jewelry, designer bags, savings, and no mortgage than eat out a few times a week or go to the cinema. But to each their own :)
Melanie (@melaniemiddle1) says
Wow! Congratulations! I can’t even imagine being mortgage free. I don’t carry any credit debt, but we definitely have a hefty mortgage. Once the kiddos are independent I plan on taking a full time position to help pay it off, but until then I’ll live vicariously through you!
Manoj says
Great job staying true to your roots and not listing to the naysayers. Congratulations!!!
My wife and I are also debt free. I’m 42 and my wife is 38. We paid off our mortgage a month ago, have no car loans and don’t use credit cards. Cash baby!!!!!
M
Sage says
Way to go, Manoj! It’s a great feeling, isn’t it?