A very close friend and his wife have poured their time, resources and money into paying off their mortgage by age 40. They have not gone on a vacation for the past 10 years; they use public transport to get to work and rarely go to restaurants. They have achieved their big goal of paying off their mortgage 18 months early. This is a big deal for them and we are all very proud of their accomplishment. So, what is next? What do they do with the extra cash each month now that they do not have a mortgage?
A mortgage or credit card debt is tangible, measurable and extremely motivating to see your balance reduced month after month. Is it easy to channel that additional extra cash into savings or retirement? Not as easy as it sounds. Retirement goals or savings are far less concrete because there are so many uncertainties and it really difficult to measure your progress. If you increase your retirement savings by $1000, there is no guarantee that your retirement account will increase by $1000... Read More
A mortgage or credit card debt is tangible, measurable and extremely motivating to see your balance reduced month after month. Is it easy to channel that additional extra cash into savings or retirement? Not as easy as it sounds. Retirement goals or savings are far less concrete because there are so many uncertainties and it really difficult to measure your progress. If you increase your retirement savings by $1000, there is no guarantee that your retirement account will increase by $1000... Read More
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