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Investing Books / The Millionaire Mind


Subject:  Re: Ordinary People...Extraordinary Wealth Date:  3/1/2001  9:37 AM
Author:  CassandraP Number:  22 of 220

The way to look at is this. Your mortgage carries an interest rate of let's say 8%. If you put that $83 dollars toward you mortgage, essentially what you'd be doing is getting a return of 8% on your $83. Or you might choose to put that $83 in the market. You're probably going to make more than 8%. Possibly more like 10% to 15%.

Okay, I can live with that...but you must then subtract the 8% interest you are still paying on the mortgage (If you are getting 10-15% in one hand, but paying 8% out of the the other hand)...brings your gain down to 2%-7% LESS than if you were to just pay off your mortgage. Besides, there are plenty of other places to cut $83. I think the BEST investment is peace of mind. There is no better peace than living debt free!!

It's just bad advice! A previous poster made a good point though...buying less house than you can afford. That is the key! Live on less than you can afford, and invest the rest. My husband and I live very well, we have cable, a large boat, I drive a luxury car (used that we paid about 30% less for), eat steak, go to Europe every couple of years, have good savings...I do not promote living stingy and not enjoying you life now so you'll have money later....Some of the things I see on LBYM really make me sad. But don't go into debt to live a life that you'll spend the rest of your life paying for.

Okay, this has turned into a book...

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