Harness Money

It seems like everyone has debt these debt these days. The federal government. Cities. Businesses. Consumers.

I believe that you should pay off any consumer debt as quickly as possible. Credit card, student loans, car and home. The big one is the home.

There is the idea out there that if you have a low interest rate then you should slowly pay that off and invest what you can into the stock market. The math supports buying assets over paying off mortgage debt.

More debt = less options

The more debt you have the more money you need to earn to pay off that debt.

The compounding interest math does not account for your emotions. Maybe you do not want to work for 30 years or maybe you get laid off. Maybe you have a medical problem where you physically cannot work for a while. Things happen in life. Having a paid off home gives you flexibility to choose or not choose work.

You are going to live a long time.

If you pay off your home earlier than 30 years, you will have more peace of mind and more money to invest in the stock market.

There is nothing wrong with keeping that 30 year mortgage. But just keep in mind that will need to earn enough money to pay that mortgage for 30 years.

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