"97% of 65-year-olds cant write a check for $600"
I think its easy to think about retirement as a time of relaxing and playing golf but it seems like this isn't reality for most people.
"49% of Americans could cover less than one months' expenses if they lost their income"
Good reason for an emergency fund. Buffer against debt.
"If your mortgage payment is $900 and the interest portion is $830, you will pay that year around $10,000 in interest. What a great tax deduction! Right? Otherwise, you'd pay $3,000 in taxes on that $10,000. But who in their right mind would chose to trade $10,000 for $3,000?"
I dont know many people who pay cash for a house. How bad are mortgages really? Thoughts anyone?
Here's my pennyworth....
ReplyDeletePeople have to live somewhere, and if you don't own your own house you pay rent. It's not easy to save enough money to buy a house whilst paying rent.
Mortgage interest is like paying rent to the bank, and the capital repayment is like having a savings plan. So you pay rent for 25 years and at the end you own your own house. If you manage to pay off the mortgage before the 25 years, even better.
It's a very long term arrangement and it's not necessarily for everyone, but that's how I see it.
proud of you baby :)
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