From Mortgage Payment to Debt-Free Overnight | Week 24 Post-layoff

TL;DR: We closed on our house, realized we're completely debt-free for the first time in our adult lives, and we're living in this odd space between our old life and our new one.

Before the buyers' final walk-through Thursday evening, Bryan tucked towels underneath the kitchen cabinets where our cat likes to hide—our usual trick to keep her from disappearing under there when it's time to crate her so we can leave.

But when we went to get her before the 5:15 p.m. walk-through, she had pulled the towels out like she was opening a door to her personal fort and made herself completely comfortable underneath.

"She outsmarted us," I said as we realized we weren't going to be able to coax her out in time.

So we did what any reasonable pet owner would do: left a note for the buyer's agent asking them to please keep the exterior doors closed, and hoped for the best.

We didn't hear anything from our agent that evening. The next morning—house closing day—our agent finally texted with a question from the buyers about pool maintenance.

No mention of the cat. She'd apparently stayed hidden and quiet through the entire walk-through.

Maybe she knew this was the last time she'd need to hide.

This Week's Reality Check:

• ✓ Moved a van load in 95-degree Texas heat (and survived)
• ✓ Closed on our house and discovered something life-changing
• ✓ Created a time capsule for the next family
• ✓ Started living in the strange space between homeowner and tiny home temporary renter

What We're Actually Doing:

Van Day Reality

Thursday morning, Bryan and I picked up our rental van at 9 AM with one mission: move everything from a storage unit near our house to our temporary storage near the tiny home rental. Simple enough, right?

Except it was 95 degrees with Texas humidity. By the time we returned the van at 3:30, we were drenched, exhausted, and wondering if we downsized enough. But we'd done it—everything we need for the next phase is now within 10 minutes of our tiny home rental or will be moving with us in the car later this week.

The buyers' walk-through at 5:15 felt needed to happen in the middle of our sorting and packing chaos! We paused work to straighten up the house, then evacuated the animals for 45 minutes. We immediately pulled everything back out when we got back home and resumed our somewhat frenzied work. The estate sale people are scheduled to start getting setup for the sale. The whole rent-back situation has created this weird situation where we're homeowners who aren't homeowners anymore.

The Moment Everything Changed

Friday morning, we signed the closing documents at 10:30. After a celebratory lunch, we headed home and I found myself reflecting on the day.

I said to Bryan as we walked in the door. "You know, with the house paid off now, we are completely debt free!"

We both paused, thinking back through car payments, credit cards, mortgages—sometimes all three at once.

"Wow, you're right!" he said. "That's crazy!"

For the first time in our adult lives, we don't owe anyone anything. No monthly payments. No interest charges. No debt of any kind.

I felt something I'd never experienced before: complete financial freedom.

Saying Goodbye Our Way

Saturday morning, Bryan dug up the St. Joseph statue we'd buried in our front yard—a Catholic tradition that's supposed to help sell your house. Now that the house has sold, the tradition is to dig him up and give him a prominent place in the new home.

Then Bryan prepared a time capsule for the next family—a note telling our story, how we met, some Cracker Jack toys, pictures from our Chicago days, and family photos. He buried it in the backyard.

"They might find it someday," he said. "Or maybe their kids will, years from now."

It felt like the perfect way to pass the baton.

We took what might be our last swim in the pool we'd installed, floating in water that would soon belong to someone else. Then we went inside and watched TV for the last time in what was supposed to be our forever house. The whole experience felt odd knowing we were still having an estate sale and then cleaning up the house for the next few weeks in a house we no longer own.

We also reflected on how the layoff gave us the opportunity to seriously think about how we want to spend the next few decades of our lives.

What's Next

As I write this, our desks have been dismantled, some items have been moved to temporary storage, and we'll pack the car with the everyday things coming with us to the tiny rental. It feels a little bit like backing out of a room as you're mopping so you don't walk on your clean floor while it's wet.

But here's what I keep coming back to: we're not just moving to a smaller space. We're moving toward a life of downsized expenses and where we have fewer household chores, more time for camping in our RV, more time for hobbies, and more time for a slower-paced life.

One of the showings we had last month mentioned that they wanted to downsize—yet when they came to see our house, they said 'the closets were too small.' For us, downsizing isn't just about being in a smaller space.

"Real luxury is not working like a maniac to take an expensive vacation—it's living a life you enjoy every day." - Kathy Gottberg

We spent years working toward expensive vacations and weekend escapes. Now we're working toward a life we don't need to escape from.

Soon we'll lock the door of this house for the last time and drive to 399 square feet of possibility. We'll be there when our own tiny house gets delivered in a few months. We're ready to start the next chapter from within the community we're joining.

We're exhausted, we're excited, and for the first time ever, we're completely free.

Let's Talk:

• Have you ever experienced that moment of realizing you're debt-free? How did it feel?
• What does "real luxury" look like in your life—expensive escapes or daily enjoyment?

Here's to freedom in all its forms,

-Kathy & Bryan

This post is part of our Midlifehood Transition series, documenting our journey from traditional homeowners to tiny home living after an unexpected layoff. Follow along Follow along for real-time updates as we move into the tiny home rental this week on Facebook and Instagram as we navigate this life change together.