Introduction
It is my personal finance research. My goal of the research is to push myself to learn the value of dollar based on my own experience. I like to document my home equity line amount and interest, and then how I can learn from the experience.
Case study
I did document my lesson of learning the value of dollar; from 1998 December to 2001 September, I made net income $110,000 dollars, and in 1999 I purchased a condo with $25,000 US dollar mortgage.
$110,000 dollar net income definitely I can pay off the mortgage in Sept. 2001. But I did study my Citi bank credit card statement, I had so many issues to spend on clothing, airline tickets and other wants not needs from Dec. 1998 to Sept. 2001.
The road to learn the value of dollar was so slow.
The condo property tax is up and down. The following is the history.
The market value is the following.
The interest I paid for mortgage and home equity line from 1998 to 2017
What I learn
The most important is to learn that I should pay myself first. I should save money to pay off my mortgage or home equity line. The formula should be income - savings = expenses.
I saved less than $20,000 dollars from those $110,000 US dollar net income from 1998 December to 2001 September. My formula is income - expenses = savings.
If I choose to save 80% of net income $110,000 from 1998 December to 2001 September, then I will not take more than 18 years until 2017 to pay off the home equity line.
How to save my income? Delay gratification, pay myself first. That is to pay off my own debt.
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