How I paid off my mortgage – MoneySmart Teaching

Visit www.teaching.moneysmart.gov.au for teacher professional learning and resources to help young people be MoneySmart.

This video is from the Financial Health for Teachers program – www.teaching.moneysmart.gov.au/fht

Developed by the Australian Securities and Investments Commission (ASIC).

TRANSCRIPT
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Hi, I’m Di Motton, I’m a teacher and I teach at Wesley College in Victoria and I’ve been fortunate to be able to pay my mortgage off early. I in fact paid my first house off in my thirties. It’s not so much good fortune, it’s a decision I made. I wanted to do this. I made the choice to pay it it off.

I prioritise where I put my money. Essentially teaching traditionally has never been a super well paid job. People tend to go into it because they love children or they love the content; they have a passion for what they’re teaching. But look like most professions, it’s paid adequately and I think everyone who earns money really needs to be able to control their finances. Whether you earn a lot of money or a very small amount of money. You work hard for it so you need to have a sense of control and a sense of knowing where to put it to your advantage

I come from the generation that very much saved for what it wanted. But of course a house mortgage is quite different you can never save the entire amount of money. But my goal was to borrow the smallest amount I possibly could to have a big deposit. And then to try and pay it off as quickly as I could. It was difficult but I think I made the decision that, yes, I was going to pay that mortgage off come hell or high water.

I drove around in a very old car, which was yeah a little bit of a beaten up model. And a lot of people said to me oh why don’t you go and buy a new car. And I went no I don’t want a new car I want to pay the mortgage off. And so every year I’d just add a little extra payment. I might have paid an extra month’s payment every year. And I was determined, very, to see that paid very quickly.

The sacrifices were absolutely worth it because I paid it off in my early thirties. And I remember getting the bank statement with the zeros and it was a fantastic feeling. I actually went around and kissed the walls of the house with great joy the day I got my final statement. And I felt really proud about that too, um, that I’d done that on my own, it was great, really good feeling

Once I paid the mortgage off it meant that all of my disposable income was literally at my disposal. Apart from paying bills I then had a bit more money left over to indulge the children. I had a bit more money to go on overseas travel. I had choices that I probably didn’t have beforehand and that’s a great feeling. You can do it absolutely everyone can do it if they really want to