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> CapEx does NOT affect profits Yeah, yeah, and paying a mortgage doesn't affect my savings rate.
by andrewmcwatters 6y ago
> CapEx does NOT affect profits
Yeah, yeah, and paying a mortgage doesn't affect my savings rate.
- dragontamer 6y agoWhat? "Savings rate" is defined as monthly disposable income. Your mortgage absolutely lowers your savings rate. Your mortgage would also affect your cash flow. If we're talking about profit/loss, the interest-portion of your mortgage absolutely affects your profit/loss. Only the principle portion of your mortgage statement is "free" from a profit/loss perspective. Which it is: you can always leverage the principle into a HELOC or other financial instrument if you need emergency cash.