Pay off your mortgage in your sleep - #2
So, have you filled out your Personal Financial Position Review? If you haven't—stop and go and do that now.
Like and journey, you need to work out exactly where things are right now and where you're headed. Rather than simply wandering aimlessly though life, you are at the crossroads—the tipping point—and are committed to doing things differently this time.
That's the hope at least. And if you want to pay off your mortgage in your sleep... then it's a must. So now it's about where you are going. What are you working towards.
Several very good reason, but the three best will do.
- Emotional Leverage
- Clarity, and
For many people, watching their diet and exercising is mundane and boring, especially over the long term, the period of time that results become obvious. But for pretty much everyone, turning up at the beach in summer looking smokin' hot, fitting in that new dress, making sure you're around to see your kids grow up... that has a lot of emotional pull and leverage. Most everyone can see their outcome very clearly and it will spur them at those moments when they just can't be bothered.
Paying off your mortgage is the same. Everyone says they want to get rid of their mortgage. Probably 100% of people who have one will swear they want to be rid of it. So how many people take steps to do something constructive about it? Probably less than 5% of people. In fact the biggest challenge is inertia.
But it's what you could do with the money—that you are currently spending on 'money rental' every month— that has some emotional leverage. The mortgage payment, the rent you pay to the bank, is usually in the tens of thousands of dollars every year. What else could you do with that money? You need to know... and be very clear about it. That will provide the leverage you need.
You need to be absolutely clear about what it is you want to achieve. Why are you even bothered to think about getting rid of debt. Everyone has a mortgage don't they. It's just the normal thing to do. It's not that big a deal... is it? And then the kids need to go to school, the dog barks, you're stuck in a traffic jam on the way to work and life slips back into that rut again.. Before you know it a year or two has gone by.. And what's changed... nothing. How do you know? Because you already done it several time before.
You need to have clarity of purpose that means in a heartbeat you can see exactly why you will pay your mortgage off. Picture it, smell it, taste it, touch it. 3D, surround sound, hi res clarity.
Just like having clarity, you need to be able focus on the job at hand when required. There is so much wonderful replacement activity that's just go to be done... right now... NOT. Ignore the extraneous noise and cut through the clutter. Focus on the outcome, focus on the actions. The rest will happen. And when you've done what you need to do, get you focus back onto enjoying life again. To many well laid plans are set asunder by wandering minds. Emotional Leverage, Clarity and Focus. Easy really.
Now take 20 minutes to scribble down some goals and outcomes that will drive you ad give you that emotional leverage. First write them down or use our Goals & Objectives form as a prompt.
This is not necessarily for publication, it's for you to get clear in your mind what the big capital expenditure items are over the next 15-20 years and beyond. Life will not go on hold while you try and get on top of your mortgage. It also brings into focus the thing that you could be putting your money towards if you weren't stuck with a mortgage. Get excited about that and make a decision to take it on.
Next time we can work out what to do with what you've got down on paper.