Wednesday, February 25, 2009

Playing Around with Various Scenarios

Lately, I've been busy re-vamping our main household spreadsheet to reflect the increased cash flow from the non payment of mortgage prepayment. What a mouthful!

Chris made this comment on my post relating to the dilemma:

"How about a compromise.

You keep saving money. Once you have enough to pay off the remaining mortgage, suggest that he let you pay for it, but that he puts that same payment away into savings instead of to the mortgage company.

That way, he'll still be paying the mortgage for the remaining 4-5 years, and you'll both save on interest.I do agree that it is most likely a pride issue, although my wife and I agree on the principle that it is a "common pot"."

Awesome suggestion. I've been looking at how to incorporate the idea. By the time I received the comment, I have made some massive changes to our spreadsheet.

I must admit, this debate has made some things a lot better. For example:

  • We are able to have by the end of each year, enough to pay for our yearly trip to France (flights, spending money, apartment rental) and spring ski flights.
  • By April of each year, we will have our BC taxes, ski seasons' passes and Christmas ski flights accounted for.
  • What it means is a leaner, meaner, less cluttered spreadsheet and much more consistent cash flow throughout the year. We will be much less affected if my business goes down.
  • The "working" accounts (home, car, properties, travel) will be topped back up to $5000 each at the end of each year.
  • All the while saving on average $31260 per year for the next 5 years. I say 5 years because I am leaving the option of cutting back my work week at that point.
  • I have also been able to negotiate a $4000 a year mortgage prepayment with D. That will have the effect of decreasing overall amortization to around 8 years. He is impressed with how much the increased cash flow can do to make our yearly routines easier.
That's the version today. I cannot guarantee that it will be in the same form many ways to make things work... :)


  1. Pay off the mortgage! The absence of a large monthly obligation will give you as much (if not more) flexibility in your budgeting as the same amount of cash in the bank.

  2. Now how did I know you would say that :)

    If you get a chance, I'd love to hear how you would handle D's (or if you spouse were to take similar) points of view on my Feb 12th and 17th post.


  3. Well I've definitely seen the effects of men, pride and money in my relationship. It's a powerful force. I guess my pf advice is a little odd, I don't always go for the right thing financially. Humans aren't logical, I don't think we have to be completely logical when it comes to money. If D likes your payoff/savings plan then great.

  4. Hi Miss M!

    Thank you for your thoughts!

    Money is not an easy topic within a relationship. I see it as a form of energy.

    Thus common relationship money management to me is unique to each couple and deals with where and how they decide to allocate their "energy" and resources.

    I agree with you that it may not be logical.