On Paying off the Mortgage…

“For the next 6 or 7 years, we did everything in our power to pay off our mortgage, and to the extent I can point to a specific time when my aversion to debt became a life-altering force, this is it.  I could not stand having that debt; it felt burdensome beyond all reason, like a whole-body flu I couldn’t shake.”- Ben Hewitt in ‘Saved: How I Quit Worrying about Money and became the Richest Guy in the World’

I had to share that quotation with you.  If you are on the journey to be debt-free, and are ‘gazelle intense’ you will understand this statement with every fiber of your being.  We feel the same way about ever taking on any type of debt again.

I requested this book from the library after Fiscally Fit Chica mentioned it a few weeks ago.  I am enjoying the book, but the chapters about the monetary system are a little too much to contemplate while sitting at swim team practice.  I am gaining the most from the author’s personal stories.

Have you read any great personal finance books this summer?


14 thoughts on “On Paying off the Mortgage…

  1. Jack Collier

    There’s a book called Thrift by Samuel Smles (I think). Published when Victoria was queen of England. Real eye-opener how everything changes but everything stays the same.

    1. healthfulsave Post author

      It’s funny you say that, because I was thinking the same thing as I read the book. I really enjoy learning from other’s personal experiences, which is why the blog posts are so great.

  2. "No Pension, Will Travel!" with Cheryl & Paul

    We made the final declaration and became debt-free about 8 years ago, although we’d been working towards it before that. It’s been great how it’s reduced stress and opened up possibilities we didn’t have before. We earmark a considerable percentage of our savings to travel, so we get to do quite a bit of it, and not have to come back to bills. We’ve read many books on investing and finance over the years, but some of the classics – and most have the same “debt-free” message include “The Wealthy Barber”, “The Millionaire Next Door”, “The Richest Man in Babylon”, and “Your Money or Your Life”. It also helps to have an investment advisor that shares this perspective; ours has always said, “Paying down your mortgage has a greater return than anything I can sell you. The only thing you want to borrow money for is an investment with a risk-adjusted, after-tax return greater than the interest rate, … and you don’t see many of those!”

    1. Jack Collier

      Theoretically, you cannot borrow money at a lower interest rate than it is possible to receive in the same market. Deduct tax and it’s really impossible to borrow money at a lower interest rate than the return you can make on an investment. Any miss-match in rates should be spotted by the arbitragers, theoretically speaking. It is always better to pay off debt before saving or investing because of the difference between the bid / offer rate and the fact that investment income is taxed. However, if you want to get deep into risky financial engineering, then you could give it a go.

      1. healthfulsave Post author

        For me personally, I like investments to be simple enough to explain to my 8 yo. We don’t buy a lot of individual stocks, but today we had fun sitting down and looking up stock prices for things she knows, like Mattel (Barbie!) and Starbucks. I hope over time she can get a grasp on people paying YOU to use your money rather than borrowing and paying interest.

  3. Kelly O'Keefe

    Healthfulsave, I just got the book (Saved) and while I am barely into it, I like it so far. He can get a bit “technical” but I like the thoughts and premise. Thanks again for letting us know about it. Kelly / yourfinancialtoolkit


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