July 23rd is the day I get SERIOUS!

[carolinakaren]

Ok, I have to do this....if I don't bring all of you guys into it I won't stick to my guns.  I want to challenge myself to make a few changes.  I mainly have two problems: 
                                                               
 1.  I am overweight.  Not by much, but losing thirteen pounds would seriously help me get healthier.  I understand that being overweight will soon lead to high blood pressure if I don't change my habits.  I want to enjoy my early retirement in awesome health!

2.  I have a burning desire to be rid of the last debt in my life.....a mortgage just under $137,000.  I need to continue to pay this down in an accelerated fashion.  It may involve downsizing to a smaller home that costs less.  We currently have only 1750 sq ft, but could get away with 1200 sq ft in my opinion.  In March I paid over $27,000 to eliminate the second mortgage... so, I am focused.  (Please note that money was saved over a period of time)  I have saved another $20,000 towards additional payments, but have been wishy-washy on refi's or selling.  I believe this is a bad case of wussypants!!  I can do better and spend less!!!

In four weeks I will update the Mustachians on progress for both goals.  My goal is to be 8 lbs lighter and more decisive on the house issue.  I know the last goal is vague, but the local property website is currently down.  I will need to pay extra on the loan while I determine if a lower cost property is feasible.

Thank you for listening!
Karen

[James]

I hear you, sometimes the right decision isn't obvious and takes time to develop.  We can get so tied up in the desire for the end result that we make a huge decision too quickly and risk regret and lost money or opportunity.  Focussing on paying down the mortgage in the short term sounds great, and setting a solid goal for have the decision made also sounds wise.


What is the plan for weight loss?  There isn't one right answer, but I do think you need a solid plan to go along with the goal.

[Dee]

I like this approach of setting a deadline to arrive at a decision!

[MooreBonds]

Do you truly enjoy your current house? (house itself, area, resale value 20-40 years down the road)

If so, I wouldn't hesitate to refinance to lock in these insanely low rates, and just plow most of that extra money into diversified investments. If you really feel motivated, earmark 10% of your free cash to pay down the mortgage early, but I'd be maxing out my 401k and ROTH IRA (if you qualify) before doing anything w/ the house...and even then, diverting most of free cash to investments. It allows you to dollar-cost average into the market. Instead of attacking the mortgage solely for the next 23 months, and then having huge extra cash flow available to then invest, why not invest a good chunk continuously over the next 23 months, and keep investing after that 23 month mark?

Perhaps the market will be lower 23 months from now, but that's a chance we all take. At any rate, the reason you will ultimately invest in the market is because you think eventually, the sectors you invest in will rise long-term. Since none of us know when those upward motions will happen, better to have some skin in the game all the time, rather than hoping it sits idle for another 3 years (or drops more).

[carolinakaren]

Thank you all for your comments!  I appreciate the support. 

What is the plan for weight loss?  There isn't one right answer, but I do think you need a solid plan to go along with the goal.

I already have a healthy diet....mostly vegetarian whole foods with some fish, whole grains, occasionally lean chicken.  My biggest change for diet will be portion control, because I LOVE to eat!! 

As far as activity/exercise.... I am using a workout that is yoga based.  No equipment needed, just my own body weight for resistance.  I have used this before with great results.  It builds long lean muscle, rather than short bulky man muscle!  ;)  For cardio i will walk/jog, bicycle, and swim......this mix mainly because I have signed up to compete in the Ramblin' Rose mini-triathalon this fall in Charlotte.  I thought it would help increase my motivation!

Do you truly enjoy your current house? (house itself, area, resale value 20-40 years down the road)

If so, I wouldn't hesitate to refinance to lock in these insanely low rates, and just plow most of that extra money into diversified investments. If you really feel motivated, earmark 10% of your free cash to pay down the mortgage early, but I'd be maxing out my 401k and ROTH IRA (if you qualify) before doing anything w/ the house...and even then, diverting most of free cash to investments. It allows you to dollar-cost average into the market. Instead of attacking the mortgage solely for the next 23 months, and then having huge extra cash flow available to then invest, why not invest a good chunk continuously over the next 23 months, and keep investing after that 23 month mark?

I really like the neighborhood I'm in for location, resale, and cool people next door.  I feel like the size of the house is a bit too much with the extra rooms to clean/heat and fairly large yard to maintain.  I am already maxing out my 403b and 401a, for exactly the reasons you mention above.....dollar cost averaging rocks!  I have considered additional investments while paying down the mortgage, so I'm glad to see someone recommending that approach!

[James]

I was in yoga last night, certainly helps me feel better and get the flexibility I need.  Glad you have a triathlon to train for, I find that having something coming up that requires me to be fit and lean does wonders for my discipline...  :)  I also use runkeeper for publishing my stats when I exercise.  I know no one notices or cares how far I ran, biked, or whatever, but there is something about pushing "save" and "publishing" my run that gives me a little extra feedback and satisfaction.  Use psychological tricks, they work!   


Good luck with your goals, keep us updated!

[MooreBonds]

I really like the neighborhood I'm in for location, resale, and cool people next door.  I feel like the size of the house is a bit too much with the extra rooms to clean/heat and fairly large yard to maintain. 

I understand what you're saying, and there is a true direct cost for a larger house (possibly larger real estate taxes, utilities, insurance coverage, etc.). However, there are also things like paying 6% realtor commissions to sell your house, costs of moving, spending money to remodel your other/smaller house, etc. And there are ways to mitigate some of that extra space you don't use all the time (closing air vent registers, keeping doors closed, etc.). Plus, there's also a possible ease of selling your current house (far) down the road to move into an assisted living facility, versus possibly selling a less desirable house - although it would be so far down the road, the net present value could be tiny when discounted. :)

But don't forget to put a value on your pure enjoyment and appreciation of it. My house is 1,767 sq ft. I live by myself. I bought it 3 years ago, and tackled my first remodeling project with it. It turned out great! Is it more house than I need? Sure. But you gotta spend a tiny bit of money somehow, and I know how to live very frugally and really minimize the expenses to offset some other items. And the overall safety net is that my lot is large (1 acre), and will always have the ground value going for it, even if I stay here for 20-30 years and the house becomes run down and aged....versus buying a smaller house with a smaller lot, and having more depreciation reduce the total home/lot value.

I am already maxing out my 403b and 401a, for exactly the reasons you mention above.....dollar cost averaging rocks!  I have considered additional investments while paying down the mortgage, so I'm glad to see someone recommending that approach!

Great! Since you're already maxing those out....I assume you are familiar enough with things like Health Savings Accounts, and 529 plans (if you have children you are thinking of college expenses for)? Those offer incredible tax breaks if you meet the simple qualifications...although as a CRNA, if you work for a healthcare network, you likely have a gold-plated, low-deductible plan that costs you peanuts. :P

[carolinakaren]

Just wanted to put a quick update out there....

Registered online today for the Ramblin' Rose triathalon so no backing out!
Tried to step it up a bit with the yoga today, added extra you know....
Called my current bank, a local CU, and a mortgage broker for Good Faith Estimates to compare possible loans.

@Moorebonds...  I just started working hourly a few months ago, so I no longer have the gold-plated health insurance plan!   I bought one on my own, and while I'm convinced I could find a lower price, the coverage is pretty good.  So far with the higher hourly rate I'm taking home more than before, and job satisfaction is better because I don't have to be on-call during weekends.  Yay! 

[arebelspy]

Registered online today for the Ramblin' Rose triathalon so no backing out!
Tried to step it up a bit with the yoga today, added extra you know....
Called my current bank, a local CU, and a mortgage broker for Good Faith Estimates to compare possible loans.

That sounds like getting serious to me.  Good progress!

[Somnambulist]

Just wanted to put a quick update out there....

Registered online today for the Ramblin' Rose triathalon so no backing out!
Tried to step it up a bit with the yoga today, added extra you know....
Called my current bank, a local CU, and a mortgage broker for Good Faith Estimates to compare possible loans.

@Moorebonds...  I just started working hourly a few months ago, so I no longer have the gold-plated health insurance plan!   I bought one on my own, and while I'm convinced I could find a lower price, the coverage is pretty good.  So far with the higher hourly rate I'm taking home more than before, and job satisfaction is better because I don't have to be on-call during weekends.  Yay!

Good luck! I know you're right in BB&T country in Charlotte, NC and they have insanely low rates right now and are incredibly easy to deal with. They also won't sell your loan to another company. We refinanced with them in January after banking with them for a few years and cut the length of our loan from 25 years left to 15 and only increased our monthly payment about $300.

On the weight front, I know I need to lose about 30 pounds, but it is hard. I ride about 50-75 miles a week usually for exercise but I also love to eat and my diet isn't great. I am about to launch my own blog where my wife and I plan to document our personal struggles with weight/stuff/money because I feel like it will help us be more mindful of what we are deciding daily.

[carolinakaren]

Thank you for the recomendation Somnambulist.  I'll look into BB&T.  The weight/health issue is always a struggle, you are right.  That's why I put it in front of the mustachians.....they don't let you back down!  (my favorite thing about you guys)

[sowantere]

If your counting calories try myfitnesspal.com wife loves it.

Paying off a mortgage is satisfying however just think about where it is and if you will want to stay there.  I paid mine off only to put it up for sale as it is 40 minutes from work.  As you mentioned moving may make more sense.  I didn't refinance it as the costs would equal months of principal so it depends on how much extra you are throwing into the mortgage a month and what are your other debts.  I personally do not regret paying of the mortgage just because of the mindset it gave me.  I do not think i will ever have another mortgage on a non investment property.  Lowing my monthly overhead has made retirement that more feasible. 

The good part is there are obvious correlations between debt reduction and weight loss.  So shed those pounds and shed that debt.  Good luck to you.

[carolinakaren]

Thank you Sowantere, for the calorie counter as well as the thoughts on mortgages!  It sounds like you have a very similar outlook to mine.  I have considered both down-sizing to a smaller house and refinancing.  My house is already close to work, so that is a + 1 for location.  It's nice to know that my thought processes are in line with other mustachians....let's me know I'm on the right track. 

[carolinakaren]

I left for a short vacation on August 23rd, so I did not get to update any of you on the results of this challenge. 

1.  I did not lose the required 8lbs.  Maybe 2lbs and some increased muscle tone.  This failure was largely due to a couple of minor workout injuries which have now been resolved.  I did get two full weeks of kick ass toning in before that happened!  I also should have made more efforts to change my eating habits.

2.  Mortgage savings are up an additional $5000 since I started on July 23rd.  I have decided not to refi....all my fishing efforts turned up was one credit union with a decent interest rate, but over $6000 in closing costs!  The mortgage broker never could get back to me, and my current bank once again didn't even bother following up on the information I requested.  I was disappointed.... I have excellent credit and no real obstacles for refinancing, but oh well.  I think we will try to sell the house in the spring.  Turns out there are some very decent properties around that are less expensive, smaller options.  I think that might be a good way to go since we don't really need this much space.

Thanks to all of you who provided encouragment, Sowantere, James, Arebelspy, MooreBonds, Dee, and Somnambulist.!  I appreciate the interest of other mustachians and hope to cheer for you during all of your adventures too!

[carolinakaren]

I have an update for you guys. In December I closed on a refi from the same company that currently held my mortgage.  I know that their interest rate is not absolutely the lowest, but it was definitely the easiest!  I didn' t need an appraisal or anything and closing cost around $700-800. My loan went from a thirty year at 5.89% to a fifteen year at 3.18%..... best of all my payment is only forty dollars more than before.  I am very pleased.  Even if we get the opportunity to sell and downsize it only takes a few months to recover the cost of this loan. 

[arebelspy]

Well done!  Way to unleash your inner Hasslehoff.

[Hamster]

Nice work on the refi! That will make a huge difference in long run.

Did the injuries keep you out of the triathlon? Did you decide to give the weight loss another go? Only trying to hold you accountable as you'd suggested before that you wanted that. Not trying to be a meanie...

[carolinakaren]

No, the injuries were very minor and healed in a few weeks. My friend who inspired me to do the triathlon had cellulitis in her leg at the time and was advised by her physician not to participate. We did not do the triathlon, but my part of that was wussypants! She would have understood if I wanted to do it without her. We only get to hang out one weekend a year, and I preferred to stay home with my houseguest.  I HONESTLY was not excited to be participating for myself, it was something I was doing to support my friend. It was just a side benefit that I would have more motivation to meet the weight-loss goal.  It would have been good for me to do the race anyway!  I am hoping to get the exercise thing underway again now that the holidays are over.  No weight-loss has been accomplished beyond a couple of pounds. Thanks for asking..... I don't mind a kick in the pants!

[Matt K]

It would have been good for me to do the race anyway!  I am hoping to get the exercise thing underway again now that the holidays are over.  No weight-loss has been accomplished beyond a couple of pounds.

I find exercise for the sake of exercise to be really hard, especially when you are below the "athlete's wall" (that point where exercise stops being difficult, and instead becomes an addiction, where you feel the need to get out and burn energy every day). I saw you mentioned that you're joining the 100 push up challenge. Good luck with that <please read that as enthusiastic support, not sarcasm>. I failed my 100 push up challenge.

The trick for me, is to do something hard but enjoyable, with a solid viewable progress until I overcome my personal wall. Running was never enjoyable for me, nor are push-ups, weights, or any other 'exercise'. It has to be fun, a sport. Personally, I'm a mountain biking addict, and a lover of rock climbing. Those are how I get back into shape every time I fall out of it.

If you have an indoor climbing gym near you, I highly suggest grabbing a friend and getting out there once a week for a month (it's indoors, so you can't slack off due to weather!). It is a great social activity (you spend half your time standing around talking, holding the rope for your partner who is climbing). First time out, it is hard (if it isn't, you just aren't pushing yourself anywhere near hard enough). But it gets easier, and very quickly the routes that looked insane become challenges to try, which eventually become your warm up routes.

Obviously, I'm biased towards climbing, but it really doesn't matter whether you climb or do some other fun hard activity. But get out there with a friend (or your husband - climbing is wonderful for staring at your hubby's tush), commit to doing it once a week for a month.

I noticed you mentioned Yoga earlier. But I missed if you updated us on your progress with it. While I love yoga, I don't find it a great way to get back into shape, but rather something that keeps you in shape. Until I'm something resemblign fit, yoga is just plain difficult for me, and I don't get the sense of satisfaction that I do from completing a climbing route or riding a new bike trail.

[carolinakaren]

You know I have tried indoor climbing.  It was several years ago and lots of fun! Thanks for reminding  me of that!  I'm also not into exercising just for the sake of exercise.  I enjoy walking and so I do it every day.  I've never really been into running either, but it was something I had to do when I was in the Army.  I like yoga, but the workout I was using was very challenging. I think it was some kind of hybrid or power yoga if there is such a thing. It really did whip a girl into shape!  I'm not capable of doing it right now....but I could probably start with an easier version.  The pushup challenge seemed like it would be possible because it's only one exercise. I have been working a lot this past year and simplicity rules! Otherwise I just seem to lose focus.  My financial Hasselhoff is much more badass than my workout Hasseloff is right now!  ;)

[Matt K]

My financial Hasselhoff is much more badass than my workout Hasseloff is right now!  ;)

One Hasselhoff out of two ain't bad.

Power Yoga is definitely a thing, and something to be approached with caution if you are badly out of shape; it is very easy to get hurt doing it (speaking as someone who dislocated a shoulder at his first power yoga class). I'm all for power yoga, but you should know all the forms from less intense classes first. Hatha Yoga is the classic 'gentle' yoga. Most entry classes are Hatha. Hatha is my preferred class because it is still a great workout, but I find it stretches and undoes all the crap I do to my body doing my other sports.

[carolinakaren]

Hatha would be more my speed right now...

[needmyfi]

I have more like 30 lbs to lose (only 27 more as of today-yeah) and started swimming before Christmas.  Swam a mile straight for the first time in almost 30 years-I took me an hour.  Swam my mile in 50 minutes today.  I already feel a little "addicted", Keep it up the good fight.

[carolinakaren]

Sounds like you are doing very well!  Swimming is so good for you too, because it works many muscles at the same time.