.png)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
“If we are honest, we can still love what we are, we can find all the good there is to find, and we may find ways to enhance that good, and to find a new kind of living world which is appropriate for our time.” ― Christopher Alexander
6
Our inability to change everything should not stop us from changing what we can.
4
4
Some people age like fine wine. I aged like milk … sour and chunky.
7
8
John F Dean wrote: I have added making 1/2 of my monthly payment every 2 weeks. That adds an extra payment a year. The payment every 2 weeks also reduces the overall interest paid.
![[Thumbnail for french-taunt.gif]](/t/262548/a/246944/french-taunt.gif "Filename: french-taunt.gif
Description:")
3
3
If your interest rate is less than 5%, then you could earn more by putting the money in a high-interest savings account (or something else). You would also lose the tax benefits of a mortgage. quote wrote:
That's part of the trick/catch. You have to be disciplined enough to follow through with this. All too often, this 'extra' cash that could be put towards added principle ends up going into 'savings' for 'a while' instead of 'investment' (and by 'a while', I mean - or it ends up as - 4-6 months) and ends up being spent on some 'must have'.
I'll add a personal experience to this: both halves of the marriage have to be committed to this. It's exponentially more difficult if the two of you are at opposite ends of this approach. In other words, one 'spends' and the other 'invests'. It can be done though.
6
5
6
12
Trying to achieve self-reliance on a tiny suburban plot: http://gardenofgaladriel.blogspot.com
8
Weeds are just plants with enough surplus will to live to withstand normal levels of gardening!--Alexandra Petri
12
5
Douglas Alpenstock wrote:Following up, we are indeed free and clear.... I have zero regrets in shafting the bank as much as possible.
“If we are honest, we can still love what we are, we can find all the good there is to find, and we may find ways to enhance that good, and to find a new kind of living world which is appropriate for our time.” ― Christopher Alexander
3
"Draw your own conclusions, but draw them in pencil so you can change them again later."
-- Douglas Black
8
Douglas Alpenstock wrote:Following up, we are indeed free and clear. I beg pardon if this sounds like crowing, and I know many folks have difficult situations, but there was a lot of
sacrificediscipline involved (avoiding FOMO and shiny cars and competing with neighbours).
"Draw your own conclusions, but draw them in pencil so you can change them again later."
-- Douglas Black
8
5
Invasive plants are Earth's way of insisting we notice her medicines. Stephen Herrod Buhner
Everyone learns what works by learning what doesn't work. Stephen Herrod Buhner
5
Douglas Alpenstock wrote:Following up, we are indeed free and clear. I beg pardon if this sounds like crowing, and I know many folks have difficult situations, but there was a lot of
sacrificediscipline involved (avoiding FOMO and shiny cars and competing with neighbours). No whining about any of that -- we are global 1-percenters, more or less. I have zero regrets in shafting the bank as much as possible.
Referring to the OP, though, it seems to me that the current chaos means that building up a pretty fat contingency reserve is really important. Paying down debt (esp. high interest) is still a high priority, but right now it's important to know you can cover your existing mortgage payments for an extended period. It's not a get rich strategy, but you will sleep better. My 2c.
"Ah, but a man's reach should exceed his grasp,
Or what's a heaven for?"
Andrea del Sarto by Robert Browning
8
Dave Lucey wrote:For any money I have to 'sock away', here is how I allocate it:
Top Priority: Make sure I have enough cushion in savings. For me, this is six months of living expenses - all up. Basically half a year's household income after taxes. Most folks think I over-save, but I'm pondering bumping that up to a year. If i don't have this, this is where the money goes until I do.
After that, what are my debts and investments in order of interest rate or expected rate of return. Paying down a debt returns the interest rate in perpetuity, so I see it the same as an investment. I put all the money into the highest rate or interest/return. That's usually any outstanding credit cards first, auto loans next, whether it is home loan or investing after that comes down to what you think the rates of return are. If they are in the same ballpark, I split them. Since either can go up or down in the near term (ARMs or stocks or bonds or ...) I'm pretty loose with that one. If I had a SUPER low fixed rate mortgage, like 2.9% or something, I'd pay the minimum forever. I'm not that lucky.
I avoid taking out new loans, and use the savings cushion to avoid needing to. I can't always do it, but it's my guiding principle. If I can plan for an expense I build up my savings beforehand (like planning to buy a car). If I can't plan for it (like discovering I need to replace my roof) then I dig into savings and replenish it.
"Ah, but a man's reach should exceed his grasp,
Or what's a heaven for?"
Andrea del Sarto by Robert Browning
7
"Ah, but a man's reach should exceed his grasp,
Or what's a heaven for?"
Andrea del Sarto by Robert Browning
8
Douglas Alpenstock wrote:And yet now, the thing is, having slain the dragon (a second time) and taken the trophy shot, I'm slightly adrift. Hmm!
Trying to achieve self-reliance on a tiny suburban plot: http://gardenofgaladriel.blogspot.com
|
The City calls upon her steadfast protectors. Now for a tiny ad:
Kickstarter for Cleaning our Rivers and Oceans movie
https://permies.com/w/kickstarter
|
