Well...we aren't going to use it for the house. We already pay a little extra on our mortgage every month and while that helps...it isn't going to help pay for the house that much quicker. But we do feel good that we are paying a little more on it each month.
Where is the money going to go?
This year it will be divided. It will help pay for the clearing and sodding of the easement we are going to do this winter and it will go towards student loans. I have a fair amount of money saved up for the easement so the majority of the money will go towards student loans and hopefully by the time it comes time to do the easement, I will have enough for all of it and the whole payment can go to student loans! :)
In future years, all of my overtime will just be divided into two (right now three because of the cruise we want to do for our honeymoon in March). Half for house projects and half for student loans.
Also any extra money we come into will go towards student loans. It is expected that I am going to be getting a pretty good sized bonus because my production levels at work are so high so that is going to go to student loans. Half of Christmas/Bday money will go towards student loans.Whatever tax returns we get, is going to student loans. We are also expected to get raises....not much but every little bit helps. I know what 80 hours without overtime equaled when I first got hired so each week I minus that number from what I did get paid and the difference is considered overtime money. I got a raise last year but I am still using my 80 hr number from before the raise so my raise is being considered overtime money and going towards projects or student loans.
And by student loans...we mean the private one that we weren't able to consolidate. We would LOVE to pay off the consolidated one very early but it is just like another mortgage payment. Once we pay off the private student loans, we will revamp our strategy.
Why Student Loans and not house? Because while we hope and will do everything in our power to not have this happen, god forbid anything were to happen. Bankruptcy/foreclosing on the house will disappear from your credit in 7 years or so. Student loans never ever leave you. That was really the deciding factor.
We both want to pay off the house early. When we pay off the private and revamp our strategy I am going to be shooting for paying more on the mortgage to help that occur.
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