What’s Better Financially: Paying Off Your Home Mortgage or Investing That Money?
My household has finite income. It turns out this is a common problem. When you have a limited amount of money coming in each paycheck, it can be very easy to have conflicting financial goals. My wife and I find ourselves in this situation. Here are our top two long-term financial goals:
Achieve financial independence through property investment.
Pay off our personal home.
These two goals create tension, competing for every extra dollar that we can make available. It’s easy to have an “I want it all” attitude, but life has a way of forcing you to prioritize. Which of these goals should get the focus of our attention and money? I’ve had this discussion numerous times with friends and colleagues. Across the board, the priority for most people is to pay off their home. Other than some retirement account contributions, most people plan to begin investing only after they are mortgage-free.
Is this the best way to approach this problem?
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