- Sydney mother-of-one Heidi Farrelly pays off mortgage in 10 years
- The 35-year-old author and preschool teacher says she made small sacrifices
- She reveals her top finance tips to get you out of debt faster
Sydney preschool teacher and mother-of-one Heidi Farrelly knows a thing or two about paying off your mortgage quickly.
The 35-year-old and her husband, Clinton, will have finished paying off their two-bedroom house in Engadine in less than a decade.
The couple purchased it for $410,000 in 2008. The property is now worth around $900,000.
Ms Farrelly, who has written two finance books titled Mortgage Free; and Brilliant Budgets and Despicable Debt, says it’s about sacrificing small luxuries in life, ‘rather than totally giving up’.
Heidi Farrelly has written two books to help homeowners become mortgage-free quicker.
‘I wanted to show people that anyone could use what they had and still get ahead,’ says Ms Farrelly.
‘I used to be terrible with money and I taught myself how to be better and ultimately achieved financial freedom.’
Ms Farrelly, who has a seven-year-old daughter, often swaps takeaway coffees for home-made ones.
Higher house prices have left many with financial stress and huge mortgages to pay off.
‘Coffee is often at a friend’s instead of at a cafe. We picnic instead of buying lunch out. We camp instead of hoteling,’ says Ms Farrelly.
‘We make do with what we have rather than buying new. Things we do need we don’t buy full price, but wait till they go on sale.
One of Ms Farrelly’s books details steps to pay off your mortgage in under a decade.
‘Essentially it’s about short term discomfort for long term reward. Everyone makes their own choices in life but I’d much rather eat at home now and be free to travel the world later than to eat out every day but always have a mortgage.’
Ms Farrelly says people struggling to make repayments should remember their long-term goal.
‘You don’t always have to have everything at once or start at the top. Work your way to where you want to be. Start small. No one likes to miss out, but it’s all about perspective. Are you missing out, or just finding a better way?’ she asks.