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If I have a big mortgage to pay off that slows my growth because I'm wasting about 60% of that monthly expense solely on debt repayment. Without the big mortga
by grannyg00se 14y ago
If I have a big mortgage to pay off that slows my growth because I'm wasting about 60% of that monthly expense solely on debt repayment. Without the big mortgage - and the same salary - I could be making monthly investments that actually produce income.
- podperson 14y agoThis is true in a sense, but we're not talking 60% vs. 0%, but 60% vs 55%, or (in fact) 7.2% vs. 7.1% (in the case of the US servicing its debt). The fact that we're talking about shaving a tiny amount of debt servicing by, say, gutting education seems more like "I'll save money by getting rid of my cable bill, but now I can't work from home".
- NoPiece 14y agoThe US spends 6% of the budget for interest on the debt, and 2% on education. Doesn't that say we are already deep into the problem, are already too deep in debt, and need to reprioritize? The bigger the debt is, the more legitimate spending will get squeezed. The longer we wait to address debt, the harder it will be to get out of the hole. http://www.cbpp.org/cms/?fa=view&id=1258 http://www.cbpp.org/cms/?fa=view&id=1258
- anigbrowl 14y agoHow many successful investors also live in their car? If not mortgage, then you'd have to pay rent. You could also save money but not eating, but how sustainable is that?