- Andy and Nicole Hill paid off their $195,000 mortgage in about four years, bringing their income to $150,000.
- The money they are saving for housing goes to their children’s college education.
- Andy Hill shared a budget sheet that breaks down his monthly spending by the dollar.
In 2013, Andy Hill and his wife Nicole decided to move out of their tiny bungalow into a 2,600-square-foot, four-bedroom home in the Detroit area.
The couple purchased a $350,000 house with a $155,000 down payment and a $195,000 mortgage. At the time, Andy was the Director of Sales. Nicole became a stay-at-home mom not long after she moved. They settled on her 15-year mortgage with a 3% interest rate and set a goal to pay it all off within five years.
They were finally debt free in less than four years.
Five years after paying off the mortgage, the couple was able to secure thousands of dollars for their children’s college education. Andy also quit her day job and started her own business. Part-time personal financial coachNicole went back to school to become an esthetician.
The Hills family’s annual household income ranged from about $150,000 to $180,000 during the time they paid off their mortgage. Andy told his Insider that his road to debt-free — even while self-employed — required maintaining a strict “zero-based budget.” This means that every monthly income has a purpose assigned to it.
By budgeting and cutting expenses, Andy and Nicole were able to make additional principal payments of varying amounts each month. Any extra money the couple earned was put towards a mortgage, whether it was a bonus at work, a tax refund, or money earned from selling things around the house.
The couple have been blogging about their experience since 2016 marriage, kids and moneyI have been making money from my blog since 2017.
Andy EXCLUSIVELY shared with Insider his monthly budget table in May 2016 when the couple was in full swing paying off their mortgage. In a spreadsheet, the couple divides their income into his nine expense categories.
Take an inside look at how Andy and Nicole distributed their monthly income while paying off their mortgage.
Have a similar story or budget you’d like to share with Insiders? Contact reporter Alcynna Lloyd at Alloyd@insider.com.