I have enjoyed reading the advice that you all have sent regarding your top financial values. This financial sermon series has encouraged more talk about where we are financially in my own household, as well.

One of the most significant things that Eddie and I have done to help us move forward financially was the decision to pay next month’s principal on our mortgage.

Early in my ministry, back in 1991, I had a colleague who had been in the finance side of business before his call to the ministry. He shared with our ministry group that there is such a thing as an amortization schedule for our house loan. He explained what it was, and how to use it. He told us that if we would simply discipline ourselves to look at the schedule, add this month’s payment with next month’s principal and write the check, that we would save next month’s interest, 100%, off the back end of the loan.

In case you don’t know, you can’t beat that return, especially at the beginning of a loan, because if you look at your amortization schedule, next month’s principal may just be 20 dollars. But, the interest might be 700 dollars. Of course, as you move further into your loan schedule, the numbers become more even. But, by then you are used to it, and you may be able to handle it. If you can handle it to the end, you will have just cut your loan in half.

Now, after you pay off your loan and you own your house free and clear, what will you do with all your extra money? It’s a nice problem to have!