EPTOn June 27 2013 09:50 Race is Terran wrote:
how does taking out a 15 yr mortgage build wealth? Don't you accumulate interest during those 15 years....?
What are you doing with the money that you didn't use to pay off the house immediately? Pls tell me its not just sitting in a savings account
![[image loading]](http://i.imgur.com/wuMwkiK.png)
how does taking out a 15 yr mortgage build wealth? Don't you accumulate interest during those 15 years....?
What are you doing with the money that you didn't use to pay off the house immediately? Pls tell me its not just sitting in a savings account
I do have 20k sitting in a checking account making like 0.00002%, but that's the emergency fund incase something breaks in the house that needs replacing or what not. No point to argue why keeping a mortgage is a good financial decision or not, who knows what the house value will be when I do move to a bigger house or not, but the rate I locked in at (3.25%) is historically very low and with the tax considerations and stock situation, should be easily able to make more than that % in the long run.
I worked for around 7 years full-time before getting married, and saved ~40% of my income during all of those years - enough to buy a standard starter family home (3 bed, 2.5 bath, 2400 sqft) with cash, but would have had to liquidate a large chunk of my investments (and pay tax on that). My guide to saving money while single to prepare for that house, kids, and eventually college. I'm sure I could have done things better (and could always use logical advice)
Fail engineer's guide to saving money after entering the job market
1) Don't become a beer or wine snob: get that water when you eat out and save! Also don't smoke.
2) Use coupons, buy online from vendors that don't collect tax, eat lots of samples at Costco! lol
3) Don't pay off loans you can get a better ROI from. 0% car loan = no point to pay off early.
4) Become an expert at something at work and get invited to all sorts of lunch meetings.
5) Drive a 4 cylinder car as sweet as a civic.
6) Cut off cable - pirate what media you do consume - movies, cable tv shows, nba games.
That's all I can think of now. Happy thursday!
