Comment on How To Pay Off Your Mortgage Early Without Making Extra Payments by Jon Dulin
In reply to <a href="https://compoundingpennies.com/pay-off-mortgage-early-no-extra-payments/#comment-143821">Stephen</a>.
I agree. But by using my strategy, I keep my cash liquid. So if something comes up, I have cash on hand. If I just throw it all at my mortgage, the money is tied up in the house. The only way I can access the equity is to take out a new loan or line of credit.
If the ultimate goal is to get rid of the mortgage as fast as possible, it is smart to throw everything at it. But I am looking at it from a different perspective.
Comment on How To Pay Off Your Mortgage Early Without Making Extra Payments by Stephen
I think you're missing the point. Every dollar you put into a bond at a rate lower than your mortgage is earning less than it could by paying down your mortgage. Instead of putting the 40% cash into bonds, you'd be better off taking that cash and paying down your principle then the remainder in stocks.
Comment on How To Pay Off Your Mortgage Early Without Making Extra Payments by Jon Dulin
In reply to <a href="https://compoundingpennies.com/pay-off-mortgage-early-no-extra-payments/#comment-143807">Stephen</a>.
I am not looking higher paying bonds than my mortgage. My money is split 60/40 which offers me an average annual return of 7%. Additionally, while my mortgage is 3.75%, after taking into account the tax write off I get, the effective rate I am paying is closer to 2.8%. I feel confident that my plan will work out in the end.
Comment on How To Pay Off Your Mortgage Early Without Making Extra Payments by Stephen
It doesn't make sense to invest in bonds that have an interest rate lower than your mortgage. At a mortgage rate of 3.75, I doubt youre finding any bonds to put cash. Would go 100percent stocks until bond rate increase s.
Comment on 5 Awesome Ways Organizing Can Help You Save Money by Desmond Mar
Great article! Couldn't agree more that you need to be organized to save money effectively. I've been using apps to track my expenses and buy groceries as well to make sure I don't spend excessively on unnecessary stuff.
Comment on 80 Easy Ways To Save Tons of Money by Desmond Mar
Thanks for the great tips. Personally, I feel that saving automatically is the most effective way to save money for me by far. What you don't see you won't spend.
Comment on 14 Tricks To Have Christmas On A Budget by Brittany
Super helpful, Michael! I think I usually end up stressing because I do wait until Nov/Dec to shop, so making a point to start much earlier could definitely help. Many great tips, thanks!
Comment on 14 Tricks To Have Christmas On A Budget by Amanda | Spending to Save
Great suggestions! One thing that has really helped my budget is that the adults in my family are moving away from gifts to experiences. Rather than stressing about gifts for everyone, we go see a show, go out to dinner, or do a cheap weekend away. It ends up being much cheaper, less stressful, and we have a lot more fun!