A Michigan couple who paid off their $200,000 mortgage in 4 years shares the exact budget sheet they used, and it accounts for every single dollar of their monthly income

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A Michigan couple who paid off their $200,000 mortgage in 4 years shares the exact budget sheet they used, and it accounts for every single dollar of their monthly income

Hill Family Spring 2018 (95) (1)

Courtesy of Andy Hill

Andy Hill and his family.

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In 2013, Andy Hill and his wife Nicole decided to move from their small bungalow to a 2,600-square-foot ranch-style home in the metro Detroit area.

The couple bought the $350,000, four-bedroom house by putting down $155,000 and taking out a $195,000 mortgage. At the time, Andy was (and still is) a sales director and Nicole became a stay-at-home parent shortly after they moved.

They settled on a 15-year mortgage with a 3% interest rate and set a goal to pay the whole thing off in less than five years and ended up being debt free in just under four years.

With an annual household income that ranged between $150,000 to $180,000 and a monthly mortgage payment of $1,900 (including taxes and insurance), Andy told Business Insider that the journey to becoming debt-free required creating and maintaining a strict monthly budget.

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The couple created a "zero-based budget," meaning every dollar of their monthly income was assigned a purpose.

Using this strategy, Andy and Nicole were able to make a hefty monthly mortgage payment of $1,900 while still being able to dedicate hundreds of dollars to gifts, donations, and personal shopping.

Andy gave Business Insider an exclusive look at his monthly budget sheet from May 2016. On the spreadsheet, Andy and Nicole divided their income across nine expense categories.

Keeping reading to see how Andy and Nicole rationed $8,000 a month while paying off their mortgage.

Do you have a similar story or budget you'd like to share with Business Insider? Get in touch with this reporter at lbrandt@businessinsider.com.

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