1 00:00:00,280 --> 00:00:05,680 Speaker 1: Mortgage free by thirty four. Could you even imagine this? Well, 2 00:00:05,800 --> 00:00:08,440 Speaker 1: let's talk to Kathy who managed to do this in 3 00:00:08,520 --> 00:00:11,560 Speaker 1: less than seven years. She's going to share with us 4 00:00:11,560 --> 00:00:14,680 Speaker 1: exactly what she did, where she found out what to do, 5 00:00:14,920 --> 00:00:18,200 Speaker 1: and what was her biggest source of inspiration and motivation 6 00:00:18,560 --> 00:00:36,159 Speaker 1: to keep going with this powerful financial goal. Welcome back 7 00:00:36,159 --> 00:00:40,040 Speaker 1: everyone to Sugar Mama's Fireplay, the podcast that fills you 8 00:00:40,120 --> 00:00:43,880 Speaker 1: with inspiration, motivation, and education when it comes to efficiently 9 00:00:43,960 --> 00:00:47,720 Speaker 1: achieving your financial goals and dreams. Before we begin today's 10 00:00:47,760 --> 00:00:51,120 Speaker 1: episode where I chat with Kathy, who is managed to 11 00:00:51,159 --> 00:00:54,240 Speaker 1: have her mortgage off by age thirty four, I want 12 00:00:54,240 --> 00:00:56,800 Speaker 1: to do a quick reminder that all of my content 13 00:00:57,200 --> 00:01:00,520 Speaker 1: is general in nature. It is never personal advice. Device 14 00:01:00,560 --> 00:01:04,160 Speaker 1: also treat strategic advice, so please keep that in mind. 15 00:01:04,200 --> 00:01:07,160 Speaker 1: All right, enough from me, Let's just hit play and 16 00:01:07,319 --> 00:01:11,200 Speaker 1: let's hear from Kathy, who is mortgage free at age 17 00:01:11,360 --> 00:01:13,880 Speaker 1: thirty four. I have a feeling that we're all going 18 00:01:13,920 --> 00:01:18,600 Speaker 1: to learn a lot from Kathy, including myself. Kathy, Good morning, 19 00:01:18,640 --> 00:01:19,240 Speaker 1: how are you? 20 00:01:20,120 --> 00:01:22,960 Speaker 2: I well, thank you, and thank you so much for 21 00:01:23,000 --> 00:01:25,520 Speaker 2: having me on your podcast today. I've been a big 22 00:01:25,560 --> 00:01:27,760 Speaker 2: fan of yours and You've been a big part of 23 00:01:27,800 --> 00:01:31,640 Speaker 2: my journey as well in terms of motivation and in station. 24 00:01:32,080 --> 00:01:33,480 Speaker 2: So thank you for what they to do. 25 00:01:34,080 --> 00:01:37,120 Speaker 1: Oh my gosh, my pleasure. And wow, that is a 26 00:01:37,200 --> 00:01:42,360 Speaker 1: huge honor and something that I take with amazing gratitude 27 00:01:42,480 --> 00:01:46,319 Speaker 1: and respect because I'm really passionate about helping everyday people 28 00:01:46,840 --> 00:01:49,840 Speaker 1: and helping them realize that with a little bit of 29 00:01:49,880 --> 00:01:53,040 Speaker 1: confidence and faith and some hard work along the way, 30 00:01:53,200 --> 00:01:55,600 Speaker 1: it's actually quite amazing what you can do to improve 31 00:01:55,600 --> 00:01:58,720 Speaker 1: your financial wellbeing and go from strength to strength. Wants 32 00:01:58,800 --> 00:02:01,440 Speaker 1: to get into the flow of it all. So can 33 00:02:01,480 --> 00:02:04,360 Speaker 1: you tell me a little bit about yourself, like where 34 00:02:04,400 --> 00:02:09,200 Speaker 1: you live, what you do, and then we can sort 35 00:02:09,200 --> 00:02:12,680 Speaker 1: of dive into this crazy idea of being mortgage free 36 00:02:12,720 --> 00:02:14,760 Speaker 1: at thirty four. I'm so jealous. 37 00:02:15,000 --> 00:02:18,560 Speaker 2: Yeah, one hundred percent. So I live in Auckland, New Zealand, 38 00:02:19,480 --> 00:02:23,639 Speaker 2: and I lived with my husband Joel, and we've got 39 00:02:23,639 --> 00:02:28,360 Speaker 2: a food baby. My dog wents so hopefully he doesn't 40 00:02:28,400 --> 00:02:32,600 Speaker 2: make too much noise today. And apparently I work part 41 00:02:32,639 --> 00:02:36,280 Speaker 2: time and the commercial property sector as a property manager. 42 00:02:36,560 --> 00:02:43,120 Speaker 2: And I also started money coaching business recently called Curative Money. 43 00:02:43,840 --> 00:02:45,480 Speaker 2: And yeah, that's about me. 44 00:02:47,000 --> 00:02:51,560 Speaker 1: So can we go back to before you started tackling 45 00:02:51,560 --> 00:02:55,000 Speaker 1: your mortgage, like what was your lifestyle like, because I 46 00:02:55,040 --> 00:02:58,679 Speaker 1: know you mentioned you went literally living paycheck to paycheck 47 00:02:59,160 --> 00:03:02,360 Speaker 1: to suddenly going hardcore and paying off your mortgage. There 48 00:03:02,360 --> 00:03:06,600 Speaker 1: are two very different, polar opposite worlds, like can we 49 00:03:06,639 --> 00:03:09,000 Speaker 1: go to the old Cathy before we're here one? 50 00:03:10,040 --> 00:03:16,320 Speaker 2: Yeah, So I guess my Monday journey started when I 51 00:03:16,320 --> 00:03:19,079 Speaker 2: guess maybe when I was fourteen was when I first 52 00:03:19,160 --> 00:03:23,320 Speaker 2: got into working. I worked part time at a cafe, 53 00:03:23,360 --> 00:03:24,000 Speaker 2: just on the weekend. 54 00:03:24,000 --> 00:03:26,240 Speaker 1: Obviously I was at school. 55 00:03:26,760 --> 00:03:31,800 Speaker 2: And I think my initial motivation was to have my 56 00:03:31,880 --> 00:03:34,760 Speaker 2: own money where I didn't have to ask my parents 57 00:03:34,800 --> 00:03:39,120 Speaker 2: for permission to buy something. And I was reflecting back 58 00:03:39,160 --> 00:03:41,880 Speaker 2: on this, and I feel like, maybe that's what caused 59 00:03:41,880 --> 00:03:44,600 Speaker 2: me to be living paycheck to paycheck because I was 60 00:03:44,640 --> 00:03:46,720 Speaker 2: kind of used to, Okay, all the money I earn, 61 00:03:46,880 --> 00:03:49,000 Speaker 2: I spend on whatever I want. 62 00:03:49,640 --> 00:03:53,880 Speaker 1: And that's so interesting. It's like the freedom almost became 63 00:03:54,400 --> 00:03:59,320 Speaker 1: a like poison for you. Yeah, you took that freedom 64 00:03:59,360 --> 00:04:05,040 Speaker 1: and just had like squandalous will create this squandalous life Styes, yeah, yeah, 65 00:04:05,760 --> 00:04:08,000 Speaker 1: you know rat race almost and. 66 00:04:08,200 --> 00:04:12,040 Speaker 2: Yes, and yeah, I think something that I thought would 67 00:04:12,120 --> 00:04:15,680 Speaker 2: be and I obviously don't regret getting a job because 68 00:04:15,720 --> 00:04:18,280 Speaker 2: it taught me the value of a dollar. But I 69 00:04:18,279 --> 00:04:20,600 Speaker 2: think back at the time, I didn't even think about, 70 00:04:21,200 --> 00:04:26,040 Speaker 2: you know, saving a bit or anything like that, and yeah, 71 00:04:26,279 --> 00:04:28,880 Speaker 2: or definitely not that. And even though I saw, like 72 00:04:28,960 --> 00:04:33,080 Speaker 2: my mom openly talked about her investment portfolio and how 73 00:04:33,160 --> 00:04:35,479 Speaker 2: much it was worth, but that never clicked for me 74 00:04:35,640 --> 00:04:38,520 Speaker 2: to ask her more, and she never kind of told 75 00:04:38,520 --> 00:04:41,000 Speaker 2: me I should invest. I kind of just didn't do anything. 76 00:04:41,040 --> 00:04:42,880 Speaker 2: And I think when you're young as well, you're kind 77 00:04:42,880 --> 00:04:45,039 Speaker 2: of like, oh, I have time, and I'll do that later. 78 00:04:46,440 --> 00:04:51,800 Speaker 2: And so really I didn't start my financial journey until 79 00:04:52,160 --> 00:04:56,520 Speaker 2: one year into us having bought our home. So we 80 00:04:56,600 --> 00:05:00,800 Speaker 2: bought it in twenty fourteen, And just to share some 81 00:05:00,920 --> 00:05:03,400 Speaker 2: numbers because some people find that helpful, it was five 82 00:05:03,480 --> 00:05:08,200 Speaker 2: hundred and fifty thousand dollars, which fork an hour is 83 00:05:08,279 --> 00:05:11,120 Speaker 2: quite cheap. I think the medium price is about a million. 84 00:05:11,600 --> 00:05:13,640 Speaker 1: So for everyone listening right now going, oh, well, that's 85 00:05:13,640 --> 00:05:16,159 Speaker 1: such a small, you know price to pay for a property, 86 00:05:16,200 --> 00:05:19,360 Speaker 1: can we just bring this back into perspective for everyone 87 00:05:19,800 --> 00:05:23,680 Speaker 1: as a relation in comparison or into relationship to your income, 88 00:05:24,400 --> 00:05:27,800 Speaker 1: you know, was that still a significant multiple of your 89 00:05:27,800 --> 00:05:30,640 Speaker 1: income to be able to afford and pay for that. Yeah. 90 00:05:30,839 --> 00:05:35,200 Speaker 2: So back when we bought our home, we were earning 91 00:05:35,240 --> 00:05:40,479 Speaker 2: about one hundred and twenty one hundred and thirty growths combined. 92 00:05:40,839 --> 00:05:44,400 Speaker 1: So that's still a big stretch, you know, not like you, 93 00:05:44,400 --> 00:05:47,640 Speaker 1: you know, you're earning two hundred and fifty thousand dollars 94 00:05:47,680 --> 00:05:49,720 Speaker 1: year and bought a five hundred thousand dollar property. It's 95 00:05:49,720 --> 00:05:53,960 Speaker 1: still you know, possibility. And I'm sure you borrow conservatively, 96 00:05:54,000 --> 00:05:56,400 Speaker 1: you know that golden rule of spend less than you 97 00:05:56,480 --> 00:05:59,480 Speaker 1: earn and borrow less than you can afford. I'm sure, 98 00:05:59,520 --> 00:06:02,520 Speaker 1: But still so people would the old wow tiny mortgage. 99 00:06:02,839 --> 00:06:06,680 Speaker 1: It's all in perspective here, okay. And so you know 100 00:06:06,920 --> 00:06:09,000 Speaker 1: you were still on that lifestyle creeper like you were 101 00:06:09,040 --> 00:06:14,240 Speaker 1: still living it up. Yeah, paycheck to paycheck, but you've 102 00:06:14,279 --> 00:06:16,320 Speaker 1: now got a year into your mortgage. 103 00:06:17,440 --> 00:06:21,400 Speaker 2: So yeah, a year in town mortgage. We were actually 104 00:06:21,400 --> 00:06:25,040 Speaker 2: not doing anything differently. We spent everything we made, we 105 00:06:25,080 --> 00:06:28,440 Speaker 2: went on holiday, we bought things for the house. And 106 00:06:29,240 --> 00:06:33,279 Speaker 2: I guess there's two things that was their drive for 107 00:06:33,440 --> 00:06:38,440 Speaker 2: us changing. So number one was after a year, we're like, okay, 108 00:06:38,640 --> 00:06:40,600 Speaker 2: we should probably just have a look at it and 109 00:06:40,800 --> 00:06:44,480 Speaker 2: see how much we've paid off. And as your know, 110 00:06:44,760 --> 00:06:48,919 Speaker 2: but we didn't. I think like thirty thousand was the 111 00:06:49,040 --> 00:06:51,680 Speaker 2: interest roughly that we're paid. 112 00:06:52,320 --> 00:06:54,719 Speaker 1: Yeah. When people say rent, mind's dead money, but so 113 00:06:54,960 --> 00:06:58,440 Speaker 1: is interest. Yeah, And I always say to people, look 114 00:06:58,520 --> 00:07:01,080 Speaker 1: at your mortgage repayment. It's like, look, when you go 115 00:07:01,120 --> 00:07:03,360 Speaker 1: and pay your mortgage, don't don't think of it as rent. 116 00:07:03,400 --> 00:07:06,920 Speaker 1: Going into payments and look on your internet banking where 117 00:07:06,920 --> 00:07:09,520 Speaker 1: you can see, you know, mortgage repayment, you know, four 118 00:07:09,520 --> 00:07:13,160 Speaker 1: thousand dollars interest four thousand, sorry, three thousand, seven hundred. 119 00:07:13,200 --> 00:07:17,520 Speaker 1: Like it's quite It's very sobering, isn't it. Yeah. 120 00:07:17,760 --> 00:07:22,160 Speaker 2: Yeah, and only about like five thousand was towards the 121 00:07:22,240 --> 00:07:26,320 Speaker 2: principal or the actual loan, And that was really shocking. 122 00:07:26,520 --> 00:07:31,800 Speaker 2: And even like I did mortgage calculations back at university 123 00:07:31,840 --> 00:07:35,080 Speaker 2: because that was one of our papers, property finance, but 124 00:07:35,240 --> 00:07:36,800 Speaker 2: I still didn't click. 125 00:07:37,360 --> 00:07:39,119 Speaker 1: So that was one. 126 00:07:40,160 --> 00:07:43,400 Speaker 2: The second was there was a lot of restructure going 127 00:07:43,440 --> 00:07:49,640 Speaker 2: on with my husband's job, and that was terrifying. Like 128 00:07:49,760 --> 00:07:52,320 Speaker 2: I didn't we didn't have an emergency fund. I didn't 129 00:07:52,360 --> 00:07:54,800 Speaker 2: even know what that was back at the time. So 130 00:07:54,920 --> 00:07:58,640 Speaker 2: that's how you know, little I knew about personal finance, 131 00:07:58,800 --> 00:08:02,000 Speaker 2: and we definitely could and have lived off my income. 132 00:08:02,880 --> 00:08:07,840 Speaker 2: So that was when my husband said, oh, we really 133 00:08:07,880 --> 00:08:11,400 Speaker 2: need to pay off this mortgage. And I was like, no, 134 00:08:11,520 --> 00:08:16,960 Speaker 2: people have mortgages for twenty thirty years hours of alone. Yes, 135 00:08:17,080 --> 00:08:20,000 Speaker 2: it's going to happen, but it's not going to happen now, Like, 136 00:08:20,480 --> 00:08:23,480 Speaker 2: you know, what are you saying this crazy? 137 00:08:23,600 --> 00:08:23,880 Speaker 1: Yeah? 138 00:08:23,960 --> 00:08:26,000 Speaker 2: And I didn't, but I thought he was just being 139 00:08:26,040 --> 00:08:28,200 Speaker 2: weird to be honest, but he was like, no, like 140 00:08:28,360 --> 00:08:30,880 Speaker 2: this really bothers me. I think we should do something 141 00:08:30,920 --> 00:08:34,560 Speaker 2: about it. And then I went on Google and I 142 00:08:34,640 --> 00:08:37,200 Speaker 2: was really shocked to find that there were actually a 143 00:08:37,200 --> 00:08:40,319 Speaker 2: lot of stories with other people that had paid off 144 00:08:40,360 --> 00:08:44,840 Speaker 2: their mortgage early, like five years, ten years, fifteen, And 145 00:08:45,640 --> 00:08:48,959 Speaker 2: that kind of started my journey into learning about personal 146 00:08:49,000 --> 00:08:51,840 Speaker 2: finance as well. And of course I found you that 147 00:08:51,960 --> 00:08:54,320 Speaker 2: time because I knew you had quite a few you know, 148 00:08:54,320 --> 00:08:58,000 Speaker 2: how to peru your mortgage early videos on your YouTube channel, 149 00:08:58,920 --> 00:09:01,560 Speaker 2: and yeah, that was kind of where it all began. 150 00:09:02,200 --> 00:09:04,800 Speaker 1: Wow, Oh my gosh, Well, I'm so glad you found 151 00:09:04,880 --> 00:09:07,719 Speaker 1: my YouTube account. And I mean that video is I 152 00:09:07,840 --> 00:09:10,880 Speaker 1: had like over one hundred thousand views. So, and it's 153 00:09:10,920 --> 00:09:13,440 Speaker 1: so interesting you say this because when Tom and I 154 00:09:13,840 --> 00:09:16,720 Speaker 1: before we had kids together, I remember we were sitting 155 00:09:16,760 --> 00:09:19,200 Speaker 1: on the sofa at his apartment and he was like, oh, yeah, 156 00:09:19,200 --> 00:09:21,120 Speaker 1: you never pay off your mortgage, No one ever does. 157 00:09:21,160 --> 00:09:23,000 Speaker 1: And I was like, what are you talking about, Tom, 158 00:09:23,040 --> 00:09:24,760 Speaker 1: Like that'd be ridiculous. Of course you can pay for 159 00:09:24,760 --> 00:09:27,640 Speaker 1: your home loan and he was like, no, come on, 160 00:09:27,760 --> 00:09:30,160 Speaker 1: like as if. And so it showed him. I was like, Okay, well, look, 161 00:09:30,160 --> 00:09:32,200 Speaker 1: if you put an extra one hundred dollars per month, 162 00:09:32,520 --> 00:09:34,640 Speaker 1: you'll save this much ten thousand dollars and you'll pay 163 00:09:34,640 --> 00:09:36,720 Speaker 1: for your home like six months earlier. And then if 164 00:09:36,760 --> 00:09:39,040 Speaker 1: you do two hundred dollars a month, and his face 165 00:09:39,280 --> 00:09:42,360 Speaker 1: was just like, oh my gosh. And he ironically he's 166 00:09:43,040 --> 00:09:45,800 Speaker 1: ex girlfriend, who was an accountant, had told him this, 167 00:09:45,880 --> 00:09:48,120 Speaker 1: and he said, why didn't anyone ever show me I 168 00:09:48,120 --> 00:09:50,760 Speaker 1: could pay extra off my homelan. I'd never one show 169 00:09:50,840 --> 00:09:53,480 Speaker 1: me that you can actually save huge amounts of money, 170 00:09:53,600 --> 00:09:56,840 Speaker 1: let alone time. And so that was instantly a catalyst 171 00:09:56,920 --> 00:09:59,400 Speaker 1: for him to go, right, Okay, I can actually do 172 00:09:59,480 --> 00:10:02,040 Speaker 1: this it actually, you know, if I can imagine it, 173 00:10:02,080 --> 00:10:05,880 Speaker 1: I can do it. So and he's now just obsessed 174 00:10:05,880 --> 00:10:08,920 Speaker 1: as I am as paying off our homelan together. So 175 00:10:09,760 --> 00:10:12,600 Speaker 1: very very important to have that awareness, you know. So 176 00:10:13,000 --> 00:10:16,120 Speaker 1: all right, you've now clicked. And it's interesting how it 177 00:10:16,320 --> 00:10:21,880 Speaker 1: was the fear of I guess, instability and almost danger 178 00:10:21,960 --> 00:10:25,280 Speaker 1: with your husband potentially losing his job and being without 179 00:10:25,280 --> 00:10:27,800 Speaker 1: work that made you go, all right, we need to 180 00:10:27,800 --> 00:10:29,640 Speaker 1: do something about this. And good on you guys were 181 00:10:29,679 --> 00:10:32,800 Speaker 1: coming together as a team. That's so powerful. What did 182 00:10:32,840 --> 00:10:35,040 Speaker 1: you do then, like you go, okay, all right, I 183 00:10:35,080 --> 00:10:36,760 Speaker 1: get it, it's important to pay this off. Like what 184 00:10:36,840 --> 00:10:38,080 Speaker 1: was the first thing you did? 185 00:10:38,480 --> 00:10:42,120 Speaker 2: Yeah, so the first thing I did. And to be honest, 186 00:10:42,800 --> 00:10:45,520 Speaker 2: in the beginning, like we were just winghing it. There 187 00:10:45,640 --> 00:10:50,640 Speaker 2: was no amazing, perfect master plan that we came up with. 188 00:10:50,880 --> 00:10:53,880 Speaker 2: I obviously watched your videos. I listened to a lot 189 00:10:53,880 --> 00:10:58,120 Speaker 2: of podcasts where to love books, and we just did 190 00:10:58,200 --> 00:11:02,600 Speaker 2: something very simple, which was, like yours, say, do a budget. 191 00:11:03,600 --> 00:11:08,520 Speaker 2: And that's when we realize actually, even though when you 192 00:11:08,559 --> 00:11:11,240 Speaker 2: don't have a budget feels like you can't cut anything 193 00:11:11,520 --> 00:11:14,360 Speaker 2: on paper, if you just put down your necessities, we 194 00:11:14,440 --> 00:11:18,120 Speaker 2: saw that there was some money there. And in the 195 00:11:18,120 --> 00:11:21,480 Speaker 2: beginning it wasn't actually a large amount, and I think 196 00:11:21,559 --> 00:11:24,680 Speaker 2: I'm really happy that we didn't see that as oh, 197 00:11:24,760 --> 00:11:26,920 Speaker 2: it's only I think for Memoria would have been like 198 00:11:26,960 --> 00:11:30,200 Speaker 2: around one thousand dollars extra a month that we could 199 00:11:30,240 --> 00:11:33,280 Speaker 2: come up with. Yeah that's a lot, Yeah that's true. 200 00:11:33,520 --> 00:11:36,679 Speaker 2: But yeah, at the time, we're like, okay, well, we 201 00:11:36,920 --> 00:11:40,640 Speaker 2: have the potential to spend less and save this money. 202 00:11:41,080 --> 00:11:44,320 Speaker 2: And we also, from a practical point of view, just 203 00:11:44,480 --> 00:11:46,760 Speaker 2: checked with our bank in terms of how we could 204 00:11:46,800 --> 00:11:52,360 Speaker 2: go about paying off more repayments. So unfortunately, our loan 205 00:11:52,520 --> 00:11:55,200 Speaker 2: was structured because it was fex for like a year 206 00:11:55,280 --> 00:11:59,080 Speaker 2: or two that you could pay up to I think 207 00:11:59,120 --> 00:12:02,480 Speaker 2: it was one thousand dollars off a month extra each month, 208 00:12:02,800 --> 00:12:06,600 Speaker 2: but you had to commit to that until that term 209 00:12:06,600 --> 00:12:07,200 Speaker 2: ex by it. 210 00:12:08,000 --> 00:12:09,160 Speaker 1: But yeah, because we. 211 00:12:09,160 --> 00:12:12,760 Speaker 2: Didn't have an emergency fund that we didn't want, we 212 00:12:12,880 --> 00:12:16,280 Speaker 2: didn't feel comfortable doing that because we're like, what if 213 00:12:16,280 --> 00:12:18,560 Speaker 2: we get to month three and someone loses a job, 214 00:12:18,600 --> 00:12:22,080 Speaker 2: we can't commit to even more money. So that first 215 00:12:22,679 --> 00:12:25,720 Speaker 2: maybe it was about a year. We ended up just 216 00:12:26,240 --> 00:12:30,600 Speaker 2: saving that and then we talked to a mortgage broker 217 00:12:30,760 --> 00:12:34,079 Speaker 2: and by then we kind of figured out a revolving 218 00:12:34,160 --> 00:12:38,160 Speaker 2: credit was probably the best way for us to have 219 00:12:38,240 --> 00:12:43,600 Speaker 2: the flexibility of paying extra, but also because we didn't 220 00:12:43,679 --> 00:12:48,000 Speaker 2: have a separate emergency fund to take out that money 221 00:12:48,000 --> 00:12:52,040 Speaker 2: if we really needed to, because our bank also didn't 222 00:12:52,080 --> 00:12:58,600 Speaker 2: offer offset accounts, which would have been better. And so yeah, 223 00:12:58,679 --> 00:13:02,520 Speaker 2: I guess pretty much from there on it was we 224 00:13:02,559 --> 00:13:05,520 Speaker 2: would kind of have a goal of what we could 225 00:13:05,679 --> 00:13:09,920 Speaker 2: We thought we could make an extra payments that year 226 00:13:10,679 --> 00:13:13,400 Speaker 2: and have that as of revolving credits. So in the 227 00:13:13,440 --> 00:13:16,880 Speaker 2: beginning it would have only been like maybe ten twenty thousand, 228 00:13:17,679 --> 00:13:21,520 Speaker 2: and towards the very end of our journey where we 229 00:13:21,600 --> 00:13:27,640 Speaker 2: had seen big increases in our income, that was sixty thousand, 230 00:13:28,160 --> 00:13:31,280 Speaker 2: and I think because of COVID we didn't actually spend 231 00:13:31,320 --> 00:13:33,320 Speaker 2: money on holidays, so I think we even had like 232 00:13:33,360 --> 00:13:36,640 Speaker 2: twenty thousand extra by the time we had filled up 233 00:13:36,960 --> 00:13:38,559 Speaker 2: that sexty in that last year. 234 00:13:39,160 --> 00:13:42,760 Speaker 1: That's amazing, it really, that's incredible. It's amazing there we are. 235 00:13:42,920 --> 00:13:45,600 Speaker 1: You know, compounding interest is when it comes to building wealth, 236 00:13:45,640 --> 00:13:48,520 Speaker 1: is phenomenal. But also you know, the reverse impact of 237 00:13:48,559 --> 00:13:50,760 Speaker 1: compounding interest when you're trying to pay off debt is 238 00:13:50,880 --> 00:13:54,280 Speaker 1: very powerful and the biggest impact you can make in 239 00:13:54,360 --> 00:13:57,160 Speaker 1: saving yourself tens of thousands, if not hundreds of thousands 240 00:13:57,200 --> 00:14:00,880 Speaker 1: of dollars in interest and time. Is actually in the 241 00:14:00,880 --> 00:14:03,719 Speaker 1: first five years of your home loan. The harder you 242 00:14:03,760 --> 00:14:08,080 Speaker 1: can go sooner the better. Yeah. You know, as you said, like, 243 00:14:08,160 --> 00:14:11,280 Speaker 1: it's you know what sounds like you guys, you just 244 00:14:11,320 --> 00:14:13,200 Speaker 1: had lots of little goals to focus on at the 245 00:14:13,240 --> 00:14:16,439 Speaker 1: time that then obviously added up to be one massive, 246 00:14:16,520 --> 00:14:17,720 Speaker 1: big goal being achieved. 247 00:14:18,120 --> 00:14:21,360 Speaker 2: Yeah, And I think it helped because we were already 248 00:14:21,560 --> 00:14:25,440 Speaker 2: on that kind of habit of saying, okay, let's set 249 00:14:25,440 --> 00:14:29,160 Speaker 2: our goal. As our income grew, we might have spent 250 00:14:29,240 --> 00:14:32,120 Speaker 2: a little bit more like on a one off holiday. 251 00:14:32,200 --> 00:14:34,560 Speaker 2: I mean, to be honest, we took maybe one holiday 252 00:14:34,640 --> 00:14:34,960 Speaker 2: a year. 253 00:14:35,600 --> 00:14:36,600 Speaker 1: That's really good. 254 00:14:36,800 --> 00:14:41,000 Speaker 2: But yeah, but you know, our as our incomes grew, 255 00:14:41,320 --> 00:14:45,200 Speaker 2: we directed that to the mortgage. And one thing that 256 00:14:45,320 --> 00:14:47,520 Speaker 2: did really help us, and I know you talk about 257 00:14:47,560 --> 00:14:52,960 Speaker 2: gamifying your finances all, yeah, is we gamified trying to 258 00:14:53,080 --> 00:14:57,400 Speaker 2: live off one income and use the other income to 259 00:14:58,280 --> 00:15:01,840 Speaker 2: basically kill out mortgage. So in the beginning it was 260 00:15:01,880 --> 00:15:04,560 Speaker 2: like little steps like just being able to pay our 261 00:15:04,640 --> 00:15:09,840 Speaker 2: basic necessities nothing fun with the higher income, and eventually 262 00:15:09,880 --> 00:15:15,240 Speaker 2: we were able to pay everything including fun things with 263 00:15:15,600 --> 00:15:18,680 Speaker 2: our lot income, which was mine, so and that was 264 00:15:19,600 --> 00:15:21,600 Speaker 2: you know, over a long time. It wasn't like it 265 00:15:21,840 --> 00:15:24,080 Speaker 2: happens stand away that we could live off on income. 266 00:15:24,200 --> 00:15:26,440 Speaker 2: That was those little goals that would make me be like, 267 00:15:26,840 --> 00:15:30,000 Speaker 2: how can I cut this to make it fit into 268 00:15:30,040 --> 00:15:30,680 Speaker 2: this income? 269 00:15:31,240 --> 00:15:34,440 Speaker 1: How powerful? And I love that idea of living off 270 00:15:34,560 --> 00:15:36,400 Speaker 1: if you can. You're in a situation where you can 271 00:15:36,520 --> 00:15:39,040 Speaker 1: live off one person's income and then all the other 272 00:15:39,040 --> 00:15:40,320 Speaker 1: goes to the mortgage. Obviously you've got to be on 273 00:15:40,360 --> 00:15:43,040 Speaker 1: the same page. You've got to have obviously respect and 274 00:15:43,040 --> 00:15:46,160 Speaker 1: boundaries and transparency and even you know, you know, an 275 00:15:46,200 --> 00:15:49,240 Speaker 1: agreement in place. But it is definitely if you, if 276 00:15:49,280 --> 00:15:52,840 Speaker 1: any couple can do that is it really does supercharge 277 00:15:52,840 --> 00:15:58,320 Speaker 1: your mortgage reduction journey. How valuable was the conversation with 278 00:15:58,400 --> 00:16:02,000 Speaker 1: your mortgage broker leaving this school, because it sounds like 279 00:16:02,040 --> 00:16:05,080 Speaker 1: you really did educate you about understanding your mortgage where 280 00:16:05,080 --> 00:16:06,840 Speaker 1: it was probably maybe had a bit of a black 281 00:16:06,840 --> 00:16:08,320 Speaker 1: hole around the numbers previously. 282 00:16:08,720 --> 00:16:12,600 Speaker 2: Yeah, So to be honest, I feel like when we 283 00:16:12,640 --> 00:16:16,600 Speaker 2: met with her, she kind of already had like we 284 00:16:16,720 --> 00:16:20,680 Speaker 2: already kind of had a game plan and we're like, hey, 285 00:16:20,840 --> 00:16:22,720 Speaker 2: this is what we want to do. We want to 286 00:16:22,760 --> 00:16:25,240 Speaker 2: pay off our mortgage rely, and we were thinking of 287 00:16:25,920 --> 00:16:27,400 Speaker 2: using our revolving credit. 288 00:16:27,520 --> 00:16:28,880 Speaker 1: What you think and. 289 00:16:28,720 --> 00:16:31,720 Speaker 2: She was really supportive, which was great, but she did say, 290 00:16:32,000 --> 00:16:36,240 Speaker 2: look like revolving credit, most people use that because they 291 00:16:36,720 --> 00:16:40,120 Speaker 2: want to pay off their mortgage early. They do need 292 00:16:40,160 --> 00:16:43,240 Speaker 2: to caution you that it can be quite dangerous and 293 00:16:43,320 --> 00:16:46,240 Speaker 2: some people end up just spending it all again. 294 00:16:46,520 --> 00:16:50,640 Speaker 1: So yeah, I completely agree with that advice. And this 295 00:16:50,720 --> 00:16:53,200 Speaker 1: is why having a good mortgage broker is so incredibly important. 296 00:16:53,240 --> 00:16:55,400 Speaker 1: You know, that's that's they can actually give you that 297 00:16:55,480 --> 00:16:59,880 Speaker 1: word of warning. Yeah, is priceless. But she's right, and 298 00:17:00,080 --> 00:17:03,040 Speaker 1: I've seen this, you know where quite often people banks 299 00:17:03,040 --> 00:17:05,359 Speaker 1: attached like a credit card, and so they tell people, Okay, 300 00:17:05,720 --> 00:17:07,840 Speaker 1: you know, put all your pay into this account which 301 00:17:07,880 --> 00:17:09,480 Speaker 1: is like an offset account, and then live off the 302 00:17:09,480 --> 00:17:11,720 Speaker 1: credit card so you earn lots of points and then 303 00:17:12,080 --> 00:17:14,199 Speaker 1: you know, you just do these sweeps across. But the 304 00:17:14,280 --> 00:17:17,120 Speaker 1: thing is in reality, because you're spending credit, and there 305 00:17:17,200 --> 00:17:19,880 Speaker 1: is all these scientific studies around us spending more money 306 00:17:19,880 --> 00:17:21,800 Speaker 1: when we space for things on credit than we do 307 00:17:21,840 --> 00:17:24,440 Speaker 1: when we pay cash, you end up like either going 308 00:17:24,480 --> 00:17:27,280 Speaker 1: backwards or just keeping ahead of the water and on 309 00:17:27,480 --> 00:17:30,000 Speaker 1: paper it looks good, but in reality does not play 310 00:17:30,040 --> 00:17:32,880 Speaker 1: out like that and people end up like so many 311 00:17:32,920 --> 00:17:36,119 Speaker 1: times as a financial planner, people would come to me 312 00:17:36,200 --> 00:17:37,959 Speaker 1: with this and they'd be like, the bank put us 313 00:17:37,960 --> 00:17:40,040 Speaker 1: on this, it's not working. We're actually in so much 314 00:17:40,119 --> 00:17:42,320 Speaker 1: credit card debt now, plus the mortgage hasn't done anything, 315 00:17:42,400 --> 00:17:44,639 Speaker 1: and another two years has gone by, like and I'm like, 316 00:17:44,720 --> 00:17:47,040 Speaker 1: all right, let's you know this is not the right 317 00:17:47,040 --> 00:17:49,720 Speaker 1: structure for you. The banks, you've never done this. Let's 318 00:17:50,119 --> 00:17:52,960 Speaker 1: trim it all back, keep it no frills, home loan 319 00:17:53,359 --> 00:17:56,760 Speaker 1: read or facility if an offset account maybe, and let's 320 00:17:56,760 --> 00:17:59,040 Speaker 1: get you a mortgage broker that can fix all of 321 00:17:59,080 --> 00:18:00,679 Speaker 1: this and get you back on I can also make 322 00:18:00,760 --> 00:18:03,520 Speaker 1: up for lost time. So you know, great advice from 323 00:18:03,520 --> 00:18:05,320 Speaker 1: your mortgage broken. It makes me so happy because I 324 00:18:05,320 --> 00:18:07,320 Speaker 1: hear a lot of bad stories about mortgage brokers, which 325 00:18:07,480 --> 00:18:10,160 Speaker 1: which is why I only have one in my life, 326 00:18:11,080 --> 00:18:12,800 Speaker 1: you know. So that's so good that there are good 327 00:18:12,840 --> 00:18:13,840 Speaker 1: quality ones out there. 328 00:18:13,920 --> 00:18:17,159 Speaker 2: Yeah, And I'm so glad you actually brought that up, 329 00:18:17,240 --> 00:18:20,880 Speaker 2: because that method you just talked about was the ones 330 00:18:21,240 --> 00:18:25,160 Speaker 2: that I came across a lot. And I guess this 331 00:18:25,200 --> 00:18:28,520 Speaker 2: is about knowing yourself. I knew for me, like I 332 00:18:28,560 --> 00:18:32,240 Speaker 2: am quite an impulsive spender and back from my paycheck 333 00:18:32,280 --> 00:18:36,520 Speaker 2: to paycheck days, I have a tendency to like spending 334 00:18:36,600 --> 00:18:41,480 Speaker 2: things down to zero. So how we actually did the 335 00:18:41,520 --> 00:18:48,040 Speaker 2: revolving credit was we agreed as a couple like this 336 00:18:48,280 --> 00:18:51,679 Speaker 2: is a one way street. We're going to put money 337 00:18:51,720 --> 00:18:55,840 Speaker 2: in and unless it's a true emergency, we're never going 338 00:18:55,920 --> 00:18:58,720 Speaker 2: to take it out. And in that six years that 339 00:18:58,760 --> 00:19:02,359 Speaker 2: we were paying offer, like, we never took any money 340 00:19:02,359 --> 00:19:06,440 Speaker 2: out because I knew once you kind of break that seal. 341 00:19:07,240 --> 00:19:13,240 Speaker 1: It becomes a slight pretty slope. So yeah, yeah, absolutely, 342 00:19:13,840 --> 00:19:16,480 Speaker 1: And you know people tap into the emergency money once 343 00:19:16,480 --> 00:19:18,200 Speaker 1: they've done that is you said, you break the seal, 344 00:19:18,280 --> 00:19:22,320 Speaker 1: break the ice, and then people blur their justification as 345 00:19:22,400 --> 00:19:26,240 Speaker 1: to what a real emergency is. You know, yeah, we 346 00:19:26,320 --> 00:19:29,480 Speaker 1: can come up you know, it's human nature. We can 347 00:19:29,480 --> 00:19:33,800 Speaker 1: come up with so many excuses, creating excuses to justify 348 00:19:33,880 --> 00:19:37,719 Speaker 1: anything our lives. So you know that self awareness is 349 00:19:37,840 --> 00:19:41,160 Speaker 1: very powerful. Can I talk to you about you know, 350 00:19:41,359 --> 00:19:45,520 Speaker 1: the lifestyle creep and was it hard to go? All right, 351 00:19:45,720 --> 00:19:47,439 Speaker 1: We're not going to have lots of holidays year, We're 352 00:19:47,440 --> 00:19:48,640 Speaker 1: just going to have one, which I have to say, 353 00:19:48,640 --> 00:19:53,119 Speaker 1: even one holiday year I think is an amazing luxury. Like, 354 00:19:53,400 --> 00:19:55,760 Speaker 1: was it hard for you? Did you ever think, oh, 355 00:19:55,840 --> 00:19:59,040 Speaker 1: I just stuff that, let's just you know, not worry 356 00:19:59,040 --> 00:20:00,920 Speaker 1: abot the mortgage as much, slow down a bit or 357 00:20:00,960 --> 00:20:05,800 Speaker 1: take off and have more balance. Or was the sensation 358 00:20:06,080 --> 00:20:10,720 Speaker 1: of freedom and control and that stress off your shoulders 359 00:20:10,960 --> 00:20:14,240 Speaker 1: completely outweigh having buying stuff in your life. 360 00:20:14,920 --> 00:20:19,000 Speaker 2: Yeah, I mean, to be honest, I would be lying 361 00:20:19,040 --> 00:20:21,520 Speaker 2: if I said no. I never felt like when I 362 00:20:21,600 --> 00:20:24,040 Speaker 2: saw friends. Let's say, we had some friends that I 363 00:20:24,119 --> 00:20:26,879 Speaker 2: knew were on a similar income to us and similar 364 00:20:26,880 --> 00:20:30,399 Speaker 2: mortgage to us, and they would be going away like five, 365 00:20:30,960 --> 00:20:32,800 Speaker 2: you know, eight times a year because they didn't have 366 00:20:32,920 --> 00:20:37,040 Speaker 2: kids either, And sometimes I'm like, wow, you know, that's 367 00:20:37,119 --> 00:20:42,600 Speaker 2: pretty nice. But I think also because I did consume 368 00:20:42,760 --> 00:20:47,360 Speaker 2: a lot of financial content, like watching your videos, listening 369 00:20:47,400 --> 00:20:50,760 Speaker 2: to podcasts, and reading books, I think I was trying 370 00:20:50,800 --> 00:20:55,920 Speaker 2: to surround myself with people that were trying to reach 371 00:20:56,040 --> 00:21:02,400 Speaker 2: their money goals and trying to just redirect my attention 372 00:21:02,760 --> 00:21:05,959 Speaker 2: to you know, our why why we want to do this? 373 00:21:06,040 --> 00:21:08,200 Speaker 2: When it write out that way, and I think over 374 00:21:08,240 --> 00:21:12,800 Speaker 2: time it gets easier and especially when you see the 375 00:21:12,840 --> 00:21:16,879 Speaker 2: momentum and you can see the progress you're making, I 376 00:21:16,920 --> 00:21:19,640 Speaker 2: think that makes it a lot easier. And I think 377 00:21:19,720 --> 00:21:26,480 Speaker 2: also just flipping any negative stories or thoughts or phomo 378 00:21:26,600 --> 00:21:29,960 Speaker 2: that I had to gratitude, Like you said, even you know, 379 00:21:30,080 --> 00:21:34,320 Speaker 2: one holiday, Wow, we can take one holiday that's really 380 00:21:34,359 --> 00:21:38,200 Speaker 2: meaningful to us, even when we're paying off our mortgage early. 381 00:21:38,720 --> 00:21:41,600 Speaker 2: How great is that rather than thinking I could. 382 00:21:41,440 --> 00:21:43,520 Speaker 1: Have had five. Well, they say, like too much of 383 00:21:43,520 --> 00:21:46,480 Speaker 1: a good thing is not good for you, you know, 384 00:21:46,560 --> 00:21:49,480 Speaker 1: like going on holiday all the time, like lose your 385 00:21:49,520 --> 00:21:53,960 Speaker 1: sense of appreciation and gratitude for that that thing. Like 386 00:21:54,000 --> 00:21:56,720 Speaker 1: it's like going to a restaurant every week, you know, 387 00:21:56,760 --> 00:21:59,119 Speaker 1: it become just the norm who cares? Whereas to go 388 00:21:59,240 --> 00:22:01,679 Speaker 1: to a response once every three months or just for 389 00:22:01,680 --> 00:22:04,720 Speaker 1: special occasions, it's so much more meaningful. And you know, 390 00:22:05,320 --> 00:22:07,840 Speaker 1: I was reading the other day about the dopamine hit 391 00:22:08,320 --> 00:22:11,000 Speaker 1: and it's actually not in the in the receiving of 392 00:22:11,000 --> 00:22:13,520 Speaker 1: the items, actually in the anticipation of that of that 393 00:22:13,600 --> 00:22:18,439 Speaker 1: item or that experience. So you know, delayed gratification is 394 00:22:18,560 --> 00:22:22,080 Speaker 1: very very powerful. And I bet now you know you 395 00:22:22,160 --> 00:22:24,560 Speaker 1: were so glad you made those sacrifices because financially you'd 396 00:22:24,600 --> 00:22:26,600 Speaker 1: probably be a lot more ahead than those friends of 397 00:22:26,640 --> 00:22:29,439 Speaker 1: yours that were going on five holidays a year, you know, 398 00:22:29,880 --> 00:22:32,520 Speaker 1: to where you are now, Like mortgage freeze is huge 399 00:22:32,640 --> 00:22:34,960 Speaker 1: especially is insane? 400 00:22:35,440 --> 00:22:37,960 Speaker 2: Yeah, and it's just thinking about, wow, now we're not 401 00:22:38,040 --> 00:22:42,280 Speaker 2: paying thirty thousand dollars an interest. That's a pretty nice holiday. 402 00:22:43,000 --> 00:22:45,639 Speaker 1: Oh, very nice holiday. But I have to ask you 403 00:22:46,040 --> 00:22:48,359 Speaker 1: what you have you replaced that goalie? You now that 404 00:22:48,400 --> 00:22:50,639 Speaker 1: your mortgage free? Now are you looking at you know, 405 00:22:50,680 --> 00:22:53,840 Speaker 1: you understand how important financial wellbeing is. How are you 406 00:22:53,960 --> 00:22:56,000 Speaker 1: making sure that Okay, we've got all this cash flow, 407 00:22:56,000 --> 00:22:58,440 Speaker 1: we've paid off a place. Do you want to grow 408 00:22:58,480 --> 00:23:00,200 Speaker 1: your wealth or do you just want to ask spend 409 00:23:00,200 --> 00:23:03,080 Speaker 1: all that money? Like where has this now taken you to? 410 00:23:03,280 --> 00:23:06,280 Speaker 1: Is your financial well being going further now? 411 00:23:07,119 --> 00:23:09,800 Speaker 2: Oh yeah, one hundred percent. We've got a new goal 412 00:23:09,840 --> 00:23:14,800 Speaker 2: as well. So I think also because this is kind 413 00:23:14,800 --> 00:23:17,280 Speaker 2: of even though I know, like sex or seven years 414 00:23:17,320 --> 00:23:20,359 Speaker 2: doesn't seem like a long time, you do build up 415 00:23:20,359 --> 00:23:23,080 Speaker 2: a habit and it becomes part of your life and 416 00:23:23,119 --> 00:23:26,879 Speaker 2: it does become really easy. And I think actually switching 417 00:23:26,960 --> 00:23:30,000 Speaker 2: the mindset to be like actually, now we can spend 418 00:23:30,040 --> 00:23:34,560 Speaker 2: more was a bit more difficult. So our new goal 419 00:23:34,760 --> 00:23:39,200 Speaker 2: is to be investing a lot more on shares and 420 00:23:39,640 --> 00:23:43,639 Speaker 2: at the moment we are targeted to hit investing forty 421 00:23:43,680 --> 00:23:45,960 Speaker 2: five percent of our income or this year. 422 00:23:46,480 --> 00:23:49,959 Speaker 1: Wow, so that is amazing. And have you allowed now 423 00:23:49,960 --> 00:23:51,800 Speaker 1: that you check that box of being morgit Frey, have 424 00:23:51,880 --> 00:23:54,960 Speaker 1: you got have you allowed maybe an extra holiday per year? Like? 425 00:23:55,000 --> 00:23:57,960 Speaker 1: Have you? I guess have you brought back some balance 426 00:23:58,320 --> 00:23:59,040 Speaker 1: now that even chance? 427 00:23:59,119 --> 00:23:59,320 Speaker 2: Yeah? 428 00:24:00,119 --> 00:24:00,520 Speaker 1: Yourself? 429 00:24:01,000 --> 00:24:03,600 Speaker 2: Yeah, so I think, yeah, it's definitely all about balance. 430 00:24:03,680 --> 00:24:06,760 Speaker 2: So we're gonna get our laundry done this shire, which 431 00:24:06,800 --> 00:24:09,960 Speaker 2: is something we've been putting off since we started the journey. 432 00:24:10,080 --> 00:24:13,720 Speaker 2: So that's quite exciting. And I think as well, because 433 00:24:13,760 --> 00:24:17,640 Speaker 2: we've delayed gratification, that makes it more exciting rather than 434 00:24:17,680 --> 00:24:19,680 Speaker 2: if we've just done it and put it on a 435 00:24:19,760 --> 00:24:23,200 Speaker 2: mortgage or something like that in the beginning. And we're 436 00:24:23,200 --> 00:24:28,439 Speaker 2: actually heading off to Bali in June, so in a 437 00:24:28,480 --> 00:24:31,120 Speaker 2: couple of weeks, so yeah, that'll be nice. And we're 438 00:24:31,119 --> 00:24:32,600 Speaker 2: playing business class. 439 00:24:32,720 --> 00:24:37,640 Speaker 1: Oh wow, I like this business class lifestyle and mortgage 440 00:24:37,640 --> 00:24:43,159 Speaker 1: free lifestyle. Thank you. I need to what would you 441 00:24:43,520 --> 00:24:46,320 Speaker 1: say to people right now who have got a mortgage 442 00:24:46,440 --> 00:24:50,840 Speaker 1: and just feel like it's draining, is exhausting, it's overwhelming. 443 00:24:51,800 --> 00:24:55,240 Speaker 1: What would you say to that person right now listening, 444 00:24:55,520 --> 00:24:58,359 Speaker 1: you know who's gone through the hard work, had that 445 00:24:58,440 --> 00:25:00,679 Speaker 1: wake up call, realize that they need to step up 446 00:25:00,720 --> 00:25:04,959 Speaker 1: and take ownership and responsibility and gotten through not just 447 00:25:05,160 --> 00:25:07,639 Speaker 1: on the journey, but you are mortgage free. Like, what 448 00:25:07,760 --> 00:25:08,440 Speaker 1: is your advice? 449 00:25:10,000 --> 00:25:13,560 Speaker 2: Yeah, I would say definitely just think of your why 450 00:25:14,560 --> 00:25:17,359 Speaker 2: and dream a little of what life could look like 451 00:25:17,480 --> 00:25:20,800 Speaker 2: without a mortgage, because it's at the end of the day, 452 00:25:20,840 --> 00:25:25,359 Speaker 2: it's not about just saying you don't have debt on 453 00:25:25,440 --> 00:25:28,600 Speaker 2: a spreadshet because it's not really exciting, But. 454 00:25:28,520 --> 00:25:29,679 Speaker 1: It's about what's. 455 00:25:31,920 --> 00:25:35,080 Speaker 2: Yeah, it's about what kind of what would your life 456 00:25:35,119 --> 00:25:37,359 Speaker 2: look like without the mortgage. So for me, it was 457 00:25:37,400 --> 00:25:40,800 Speaker 2: being able to cut down my hours, cut down my 458 00:25:40,880 --> 00:25:43,840 Speaker 2: income without feeling guilty, so that I could do the 459 00:25:43,920 --> 00:25:46,920 Speaker 2: things that I love and brings me joy without having 460 00:25:46,960 --> 00:25:51,200 Speaker 2: to stress about how to pay for food basically, and 461 00:25:51,240 --> 00:25:53,719 Speaker 2: even like I've talked to other people that paid off 462 00:25:53,760 --> 00:25:56,840 Speaker 2: your mortgage, their why was so that they could not 463 00:25:56,960 --> 00:26:00,240 Speaker 2: work so they could be full time parents and spend 464 00:26:00,720 --> 00:26:04,879 Speaker 2: more time with their kids. So I think if you first, 465 00:26:04,960 --> 00:26:08,479 Speaker 2: think of the reason. And then the second thing is, 466 00:26:08,640 --> 00:26:13,199 Speaker 2: like I mentioned earlier, we didn't know what we were 467 00:26:13,240 --> 00:26:15,960 Speaker 2: doing in the beginning, but we just kept taking action 468 00:26:16,359 --> 00:26:20,720 Speaker 2: and as we learn more, we refined our process and 469 00:26:20,800 --> 00:26:24,480 Speaker 2: how we did things. So don't stress about not doing 470 00:26:24,520 --> 00:26:28,320 Speaker 2: it perfectly. And even if it's just a small amount, 471 00:26:28,480 --> 00:26:34,480 Speaker 2: it does snowball and it gains momentum. And don't discount 472 00:26:34,880 --> 00:26:38,080 Speaker 2: those small things and don't think because I think a 473 00:26:38,080 --> 00:26:40,480 Speaker 2: lot of people I talk to they're kind of like, oh, 474 00:26:40,520 --> 00:26:42,080 Speaker 2: it's such a small amount, what's the point. 475 00:26:42,880 --> 00:26:47,680 Speaker 1: No, yeah, yes, yeah. And this is a shout out 476 00:26:47,720 --> 00:26:51,320 Speaker 1: to the calculators on the Sugar Mama website where if 477 00:26:51,359 --> 00:26:53,040 Speaker 1: you put your mortgage in there and you just rate 478 00:26:53,119 --> 00:26:54,840 Speaker 1: the amount you owe and how far into the loan 479 00:26:54,920 --> 00:26:56,560 Speaker 1: term you are, and you look at the impact of 480 00:26:56,560 --> 00:27:00,000 Speaker 1: saying extra ten dollars per week on your home life, 481 00:27:00,720 --> 00:27:03,240 Speaker 1: you will be shocked as to the amount of money 482 00:27:03,320 --> 00:27:05,800 Speaker 1: you will save, Like thousands of dollars in interest you 483 00:27:05,800 --> 00:27:08,480 Speaker 1: will save and time you will get back. Even just 484 00:27:08,520 --> 00:27:12,120 Speaker 1: ten dollars extra a week is huge. And the other 485 00:27:12,200 --> 00:27:14,479 Speaker 1: thing is is in this in these calculators you can 486 00:27:14,480 --> 00:27:17,280 Speaker 1: also put in lump sums so you can say, okay, 487 00:27:17,280 --> 00:27:18,960 Speaker 1: well I can afford an extra ten dollars per week 488 00:27:18,960 --> 00:27:20,800 Speaker 1: of my mortgage. Look at that, and then go, okay, 489 00:27:20,800 --> 00:27:23,040 Speaker 1: well I know that I'm going normally get you know, 490 00:27:23,080 --> 00:27:25,280 Speaker 1: a thousand dollars back in tax each year and as 491 00:27:25,280 --> 00:27:27,280 Speaker 1: a tax refund, put that in there as a lump sum, 492 00:27:27,720 --> 00:27:30,680 Speaker 1: and then watch that loan term quickly come down. Look 493 00:27:30,720 --> 00:27:33,399 Speaker 1: at the tens of thousands of dollars interest you can save, Like, 494 00:27:33,960 --> 00:27:36,199 Speaker 1: never turn your nose up at small amounts into the 495 00:27:36,240 --> 00:27:39,159 Speaker 1: home loan, even if it's two dollars, just the habit 496 00:27:39,200 --> 00:27:41,800 Speaker 1: of transferring, because it grows from there. You might be 497 00:27:41,840 --> 00:27:43,680 Speaker 1: two dollars, but then next week it might be ten dollars, 498 00:27:43,720 --> 00:27:45,320 Speaker 1: the next it might be fifteen dollars, and the next 499 00:27:45,320 --> 00:27:47,359 Speaker 1: week it might be twenty two dollars. Like it. Do 500 00:27:47,400 --> 00:27:49,239 Speaker 1: you agree that it gets bigger and bigger the will 501 00:27:49,320 --> 00:27:50,640 Speaker 1: you discovered you go. 502 00:27:50,720 --> 00:27:54,359 Speaker 2: One hundred percent to find one hundred percent because also, 503 00:27:54,920 --> 00:27:57,600 Speaker 2: as wow, what I did like about when we had 504 00:27:57,640 --> 00:28:02,920 Speaker 2: our evolving credit, so you can see exactly like each 505 00:28:02,960 --> 00:28:06,560 Speaker 2: month how much was interest and then as you saw, 506 00:28:06,760 --> 00:28:09,080 Speaker 2: the more we paid off, the less the interest was. 507 00:28:09,119 --> 00:28:13,960 Speaker 2: And that was really motivating seen that connection in terms 508 00:28:13,960 --> 00:28:17,200 Speaker 2: of Wow, the more we put, the less we're paying 509 00:28:17,560 --> 00:28:21,160 Speaker 2: and adjust no balls. And I think also I heard 510 00:28:21,200 --> 00:28:24,639 Speaker 2: the other day from someone they were talking about how 511 00:28:24,760 --> 00:28:28,879 Speaker 2: it's just starting. Because let's say you're you never exercise 512 00:28:28,960 --> 00:28:31,920 Speaker 2: and you're not a runner, and someone runs ten minutes. 513 00:28:32,320 --> 00:28:35,159 Speaker 2: The person that's going to run ten minutes and be 514 00:28:35,240 --> 00:28:38,960 Speaker 2: able to run sixty is one hundred percent more likely 515 00:28:39,000 --> 00:28:40,600 Speaker 2: going to be able to do that than someone that 516 00:28:40,880 --> 00:28:42,840 Speaker 2: you know sits on the couch to run five minutes, 517 00:28:42,920 --> 00:28:46,040 Speaker 2: even though that's a smaller amount. It's all about just 518 00:28:46,120 --> 00:28:50,640 Speaker 2: getting the momentum starting and being that person that does something. 519 00:28:50,920 --> 00:28:53,600 Speaker 1: So beautifully said like thank you so much for sharing that. 520 00:28:53,640 --> 00:28:56,960 Speaker 1: It's just have a go, just get off the sofa 521 00:28:57,080 --> 00:29:00,760 Speaker 1: and and do the best you can do. And you 522 00:29:01,560 --> 00:29:03,200 Speaker 1: have to put ten dollars per week. If you can't 523 00:29:03,200 --> 00:29:05,280 Speaker 1: afford ten dollars per week, that's fine, But if you 524 00:29:05,320 --> 00:29:07,680 Speaker 1: have a spare five dollars in your wallet or in 525 00:29:07,800 --> 00:29:10,680 Speaker 1: a savings account, transfer that you don't have to do 526 00:29:10,760 --> 00:29:13,520 Speaker 1: it every single week necessarily if you can't, of courbviously, 527 00:29:13,880 --> 00:29:17,880 Speaker 1: if you can. Brilliant, but don't underestimate random ad hoc 528 00:29:18,280 --> 00:29:20,200 Speaker 1: lump some transfers, and that's why I had this built 529 00:29:20,240 --> 00:29:23,360 Speaker 1: in lump some transfer calculator. You can see the powerful 530 00:29:23,360 --> 00:29:26,600 Speaker 1: effect of both of them together or just using a 531 00:29:26,680 --> 00:29:29,920 Speaker 1: lump some random ad hoc or regular increases as well. 532 00:29:29,920 --> 00:29:33,080 Speaker 1: Like it is actually amazing what you really can do. 533 00:29:33,640 --> 00:29:36,880 Speaker 1: And it's as you said tracking the homeland, like look 534 00:29:36,960 --> 00:29:39,640 Speaker 1: jump online, look at your transactions, and look at the 535 00:29:39,680 --> 00:29:41,840 Speaker 1: interest amount coming down every time you do that. It 536 00:29:41,920 --> 00:29:45,200 Speaker 1: is a powerful source of motivation to keep going and 537 00:29:45,800 --> 00:29:48,959 Speaker 1: make it actually a really fun challenge. And you know, 538 00:29:49,280 --> 00:29:50,480 Speaker 1: I know when Tom and I are working on a 539 00:29:50,520 --> 00:29:52,080 Speaker 1: goal together, we feel so much closer. 540 00:29:52,520 --> 00:29:57,200 Speaker 2: Yeah, one hundred percent, one hundred percent, Like we had 541 00:29:57,200 --> 00:30:01,959 Speaker 2: our monthly money day and I think just it was just, 542 00:30:02,320 --> 00:30:06,040 Speaker 2: you know, such a big team goal that we had 543 00:30:06,360 --> 00:30:10,280 Speaker 2: and it definitely brought us closer. And even my husband 544 00:30:10,360 --> 00:30:12,320 Speaker 2: was saying, like, you know, I'm so proud of what 545 00:30:12,360 --> 00:30:16,719 Speaker 2: we've achieved, and that was such an amazing thing that 546 00:30:16,760 --> 00:30:21,000 Speaker 2: we did together, and that definitely and I did want 547 00:30:21,000 --> 00:30:26,000 Speaker 2: to mention as well. So we also did start investing 548 00:30:26,560 --> 00:30:29,760 Speaker 2: in twenty eighteen, so three years before we paid off 549 00:30:29,800 --> 00:30:33,360 Speaker 2: our mortgage, so kind of I'm out. 550 00:30:33,400 --> 00:30:34,920 Speaker 1: So that you've said that because some people think, oh, 551 00:30:34,960 --> 00:30:38,000 Speaker 1: mortgage more good for mortgage only and mortgage first, Yes, 552 00:30:38,120 --> 00:30:39,720 Speaker 1: non deductible debt you want to get rid of, but 553 00:30:39,760 --> 00:30:43,480 Speaker 1: you can definitely. There's no rule that says you must 554 00:30:43,520 --> 00:30:46,080 Speaker 1: do one or the other, like you have to pick 555 00:30:46,080 --> 00:30:48,680 Speaker 1: between the two. You can do both at the same time. Absolutely, 556 00:30:48,720 --> 00:30:50,600 Speaker 1: And I'm so glad you've shared that. Thank you. 557 00:30:50,920 --> 00:30:53,360 Speaker 2: Yeah. Yeah, And it was more just saying because I 558 00:30:53,400 --> 00:30:58,360 Speaker 2: think and it wasn't. We still concentrated on our mortgage mainly, 559 00:30:58,520 --> 00:31:00,960 Speaker 2: but the reason we kind of that, and we did 560 00:31:01,000 --> 00:31:03,040 Speaker 2: have a bit of a debate because my husband only. 561 00:31:02,880 --> 00:31:04,520 Speaker 1: Wanted to concentrate on the home loan. 562 00:31:04,880 --> 00:31:08,120 Speaker 2: But I think if we hadn't done that, it would 563 00:31:08,200 --> 00:31:12,320 Speaker 2: have been quite scary to then put a big chunk 564 00:31:12,360 --> 00:31:16,760 Speaker 2: of our money into investments after we paid. I think 565 00:31:16,840 --> 00:31:20,240 Speaker 2: the jump would have been too big, and I don't 566 00:31:20,600 --> 00:31:23,960 Speaker 2: think we would have ridden out that's and downs and 567 00:31:24,040 --> 00:31:26,520 Speaker 2: volatility of the market as much. 568 00:31:26,720 --> 00:31:30,840 Speaker 1: Yeah, I'm so this is such an inspiring story, and 569 00:31:30,920 --> 00:31:33,400 Speaker 1: thank you so much for taking your time out of 570 00:31:33,400 --> 00:31:35,959 Speaker 1: your day to share this with us. And I feel 571 00:31:36,280 --> 00:31:39,200 Speaker 1: I feel this like rush of motivation as well, like 572 00:31:39,720 --> 00:31:41,880 Speaker 1: even even though I'm honeding on my mortgage and doing 573 00:31:41,920 --> 00:31:43,640 Speaker 1: all these things. It just makes me want to just 574 00:31:43,680 --> 00:31:46,160 Speaker 1: go and look at my mortgage and look at where 575 00:31:46,160 --> 00:31:49,080 Speaker 1: it's up to and just haven't seen my quick brainstorming 576 00:31:49,120 --> 00:31:50,360 Speaker 1: session as to how I can come up with extra 577 00:31:50,400 --> 00:31:51,920 Speaker 1: like a couple hundred dollars put on the homeland, because 578 00:31:51,920 --> 00:31:54,520 Speaker 1: it does really make a big difference. So thank you 579 00:31:54,880 --> 00:31:59,760 Speaker 1: so much, and just to you know, end with one question. 580 00:32:00,400 --> 00:32:02,800 Speaker 1: If you could go back to your younger self, you're fourteen, 581 00:32:02,840 --> 00:32:05,560 Speaker 1: your self working, you know, part time in a cafe, 582 00:32:06,480 --> 00:32:08,280 Speaker 1: what advice would you give your younger self. 583 00:32:09,600 --> 00:32:15,600 Speaker 2: Definitely start investing sooner on this. Yeah, twenty percent of 584 00:32:15,640 --> 00:32:16,600 Speaker 2: your income done. 585 00:32:16,960 --> 00:32:20,160 Speaker 1: Yeah, great advice for you. Thank you well for all 586 00:32:20,200 --> 00:32:22,880 Speaker 1: the listeners right now, Like I think you know, I'm 587 00:32:22,880 --> 00:32:24,840 Speaker 1: sure you join me in thanking Kathy for coming in 588 00:32:24,840 --> 00:32:27,040 Speaker 1: and sharing her incredible story of being mortgage free at 589 00:32:27,080 --> 00:32:30,600 Speaker 1: age thirty four and all and you just the rush 590 00:32:30,640 --> 00:32:33,840 Speaker 1: of inspiration and motivation, and you know, I'm buzzing with 591 00:32:34,040 --> 00:32:35,600 Speaker 1: the thoughts of all the different things you can now 592 00:32:35,680 --> 00:32:39,000 Speaker 1: do being without having the monkey in your back, you know, 593 00:32:38,800 --> 00:32:41,240 Speaker 1: the noose of a mortgage around your neck, Like it's 594 00:32:41,320 --> 00:32:44,080 Speaker 1: just liberating. And you know if you're listening to this 595 00:32:44,160 --> 00:32:46,360 Speaker 1: thinking what can I do? Can I just remind you, 596 00:32:46,720 --> 00:32:49,360 Speaker 1: don't think about perfection. Don't look for the perfect plan, 597 00:32:49,400 --> 00:32:53,520 Speaker 1: because it doesn't exist. It's actually all about progress. Start 598 00:32:53,560 --> 00:32:55,560 Speaker 1: the path. Start walking on the path, and you will 599 00:32:55,560 --> 00:32:58,200 Speaker 1: find your way. Things will come together, but you've got 600 00:32:58,200 --> 00:32:59,760 Speaker 1: to be on that path, and you've got to be 601 00:33:01,160 --> 00:33:04,080 Speaker 1: Start with what you can afford to increase your mortgage repayments. 602 00:33:04,280 --> 00:33:06,240 Speaker 1: Ten dollars a week, one dollar a week, I don't care. 603 00:33:06,400 --> 00:33:09,480 Speaker 1: Just start. Then, on top of that, look around you 604 00:33:09,520 --> 00:33:11,760 Speaker 1: as to what you can do to come up with 605 00:33:11,800 --> 00:33:15,320 Speaker 1: some extra money, whether it's one dollar, fifty dollars, five dollars, 606 00:33:15,360 --> 00:33:19,520 Speaker 1: five thousand dollars, look around you, leave no stone unturned 607 00:33:19,560 --> 00:33:21,800 Speaker 1: and throw it towards the mortgage. And check your mortgage 608 00:33:21,840 --> 00:33:24,920 Speaker 1: on a regular basis. Look at that interest repayment coming 609 00:33:24,960 --> 00:33:27,280 Speaker 1: out by the bank. Look at it as a game. 610 00:33:27,320 --> 00:33:29,960 Speaker 1: Look at the way you can get that mortgage repayment down, 611 00:33:30,320 --> 00:33:33,840 Speaker 1: the interest down, the time down. I promise you no 612 00:33:33,880 --> 00:33:36,920 Speaker 1: one ever regretted paying off their mortgage earlier. And this 613 00:33:37,160 --> 00:33:40,160 Speaker 1: is your sign to show you that you actually have 614 00:33:40,360 --> 00:33:44,440 Speaker 1: everything within yourself to pay your mortgage off. So much 615 00:33:44,520 --> 00:33:47,760 Speaker 1: sooner and take the stress off your shoulders, where you 616 00:33:47,800 --> 00:33:53,440 Speaker 1: can then open yourself up to all the other wonderful opportunities, tools, 617 00:33:53,480 --> 00:33:57,560 Speaker 1: and strategies out there to create even greater sense of 618 00:33:57,640 --> 00:34:04,680 Speaker 1: financial freedom, independence and authenticity in your life. All right, everyone, 619 00:34:04,800 --> 00:34:07,400 Speaker 1: thank you so much for listening. I hope that you 620 00:34:07,520 --> 00:34:10,279 Speaker 1: love this episode. I know I certainly have, so if 621 00:34:10,280 --> 00:34:11,839 Speaker 1: you could take a moment to leave me a rating 622 00:34:11,880 --> 00:34:15,560 Speaker 1: and review, I would greatly appreciate it. And as always, 623 00:34:15,560 --> 00:34:18,960 Speaker 1: if you ever have any requests for sugar Bomba's fireplate, 624 00:34:19,160 --> 00:34:23,600 Speaker 1: shoot me through a dam on Instagram. Enjoy your week, everyone, 625 00:34:23,920 --> 00:34:45,680 Speaker 1: chow now.