Paying off a house quickly

Question: Explain how you paid off your house so quickly.

Answer: There are three things we did to pay off our first home in nine years:

1) Think small. We bought a small (1,458-square-foot) repossessed house and financed less than the bank said we could. Many people think that buying a bigger house is better. Larger houses cost more to heat, cool, insure and maintain, and you pay more in property taxes. Don’t buy a larger house to impress your friends and family — they aren’t the ones who will lie awake at night worrying about making the payment. Thinking small helped keep our payments manageable and allowed us to pay extra each month.

2) Have a budget. Having a way to control your saving and spending is the key to reaching your financial goals. Our budget allowed us to save in advance of all anticipated expenses. It also revealed when we had extra money, which we used to pay off the house.

3) Hate debt. We avoid debt like the plague. It’s an attitude we share. So paying off our house was more of a priority to us than buying new cars or taking fancy vacations. We bought gently used cars when needed and took enjoyable annual vacations, spending only the money we had saved for that specific purpose.

As we watched our house’s principal balance plummet, we experienced a feeling of euphoria. This led us to find more ways to save money on other expenses such as groceries, home repairs, clothing and car insurance.

And the best part was the day we paid it off! Whew, what a great feeling. Give it a try — it’s fantastic!