Quote:
Originally Posted by golddog
Cliffs: a secret to growing wealth is diligence.
Counterpoint: The secret to growing wealth is to spend less than you bring in, and to put that excess somewhere where it will grow.
I know golddog gave the standard disclaimers, and his is definitely one way to do it, but when I tried that ish, it just stressed me the eff out and took up a ton of time. Instead, my wife and I just put all our bills on autopay as soon as we were comfortable enough that we weren't afraid that would lead to overdrafts, and cut our financial advisor a check to put in the market for us whenever the checking account gets to a certain amount. Because we are frugal by upbringing, it is more challenging giving ourselves permission to spend than it is keeping spending under control
Quote:
Originally Posted by Didace
That's not the way it actually works. Yes, 7% on the loan amount is an expense that if you eliminate it is just as good as income on an investment. But <complicating factors>
Yes, it's an oversimplification. I also ignored the tax implications of paying mortgage interest (which is not the amazing write off it once was, but is still notable if you itemize), for example. But it gives a decent approximation for illustration purposes. When the mortgage market was in the 3-4% range, for example, it would be almost criminal to pay cash when that money could be doing so much better in other, even low-risk, opportunities.