Is anyone else obsessed with paying off debt?

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AznAnarchy99

Lifer
Dec 6, 2004
14,705
117
106
I was so wired to obsess about debt that I was at a loss when I became debt free. Now I just collect rocks and bother people on the internet.

So I too obsess over what I owe all the time and check my balances daily. By next Friday, I should be in the green officially for the first time in a while. I have no idea what I'm going to do with my checks going forward besides knowing I need to save $1000 a month for property taxes and a vacation in July. It's gonna be so weird.
 

Red Squirrel

No Lifer
May 24, 2003
67,194
12,025
126
www.anyf.ca
I feel I will be the same way by the time I pay off my mortgage. What do I do with this extra 1,200/mo!

Probably just buy more real estate at that point. :p Though seriously what I should probably do at that point is start saving more towards retirement. Like, more than I do now, which is a paltry amount.
 

skyking

Lifer
Nov 21, 2001
21,959
4,683
146
We paid extra to pay off the mortgage about 16 years ago. Now I'm commuting to Seattle and we entertained getting a different house closer to the commute, but that no debt feeling is hard to shake. That, and the overinflated real estate prices in the greater Seattle area means we are staying put. Real estate has flattened out and started back down in some locales.
 

Scarpozzi

Lifer
Jun 13, 2000
26,389
1,777
126
We got through the student loans ASAP because they were around 6.5% interest at the time and a sizeable chunk of change. I focused on paying living expenses and told my wife to buck up and pay the piper. Took about 3 years for her to dig out of that mess, but she did it. All of my debt is insured debt (house and car loans)... Worst-case scenario, insurance will equalize it and we walk away. I never want to be so far in over my head that if bad luck strikes, I get stuck dealing with loss and owe money on the losses too. My cousin had a his apartment robbed about 20 years ago in Florida....they took a bunch of stuff he had charged and he had no insurance. He was stuck making monthly payments on a television and computer that were stolen...that would really suck.
 

Scarpozzi

Lifer
Jun 13, 2000
26,389
1,777
126
I feel I will be the same way by the time I pay off my mortgage. What do I do with this extra 1,200/mo!

Probably just buy more real estate at that point. :p Though seriously what I should probably do at that point is start saving more towards retirement. Like, more than I do now, which is a paltry amount.
It's amazing what a few thousand a year can turn into over the years in a Roth. You should do the math and see what you can afford. I had to borrow from my 401k 2 years ago when I needed cashflow for a project. I've got multiple retirement savings accounts, so I pulled out about $6.5k and have been making monthly payments on it that matched a recent cost of living adjustment... I'm planning on increasing my monthly contributions to match my payments once that loan is paid up in another year or so.

I'm also wanting to start accounts now for my kids that I can give them....aside from college savings. I'd like to give them enough cash for a 20% down payment on their first house so they don't get stuck paying extra PMI insurance and other crap that's basically a liability tax for the poorly funded....
 

DietDrThunder

Platinum Member
Apr 6, 2001
2,262
326
126
It's amazing I'm also wanting to start accounts now for my kids that I can give them....aside from college savings. I'd like to give them enough cash for a 20% down payment on their first house so they don't get stuck paying extra PMI insurance and other crap that's basically a liability tax for the poorly funded....

Just remember, you can only give your children $11.18M and your wife can only give them $11.18M (total $22.36M), then the estate taxes will have to be paid. ;)
 
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Red Squirrel

No Lifer
May 24, 2003
67,194
12,025
126
www.anyf.ca
Not sure what a roth is but I do put some money towards RRSPs. A bit under $1000/year. It's a paltry amount but it's something I guess. I only have 20k in there so far, not even close to enough to live for 1 year let alone retire. TBH the only reason I do is so I don't have to end up having to pay taxes. Downside is I will be taxed later in life when I take them out. I think it's like 50%. There might be some tricks or w/e to reduce that. I'll figure it out when it happens. I think after a certain age you don't pay as much, or something.

I only have like $300ish left over at the end of the month when I factor in all my costs of living though so at this point not much more savings I can do, but my priority is debt. Thinking of putting another $100 on the mortgage. It's tight but I figure I will save a lot in the long run if I pay it off faster.
 

skull

Platinum Member
Jun 5, 2000
2,209
327
126
I was at one time, but eventually I realized the best way to create wealth is with debt. Companies do it when they invest in plants or buy other companies, homeowners do it when they purchase property. The goal to to borrow at a lower rate than your returns. So if you can borrow for a mortgage at 3.5% and the stock market returns 7- 8% on average, it makes sense to put the money in the market instead of paying off the mortgage early.

Thats where I'm at got enough cash in the bank to pay off the only debt I have which is the mortgage but can't bring myself to pull the trigger rather keep the money liquid for an investment. I'm in construction though so looking to get a rental or a flip, just dont know if its a good time to buy right now..
 

TXHokie

Platinum Member
Nov 16, 1999
2,557
173
106
The only debt I'm obsessed about paying off is my CC each month so I can rack up points but pay no interest. Mortgage and auto loan are 3.5% so I can get much better return dumping that into HSA, Roth, 401k etc. It took me a while to get past the need to feel good to pay off debt vs actual earnings in investment when you look into the numbers.
 
Nov 8, 2012
20,828
4,777
146
It's amazing what a few thousand a year can turn into over the years in a Roth. You should do the math and see what you can afford. I had to borrow from my 401k 2 years ago when I needed cashflow for a project. I've got multiple retirement savings accounts, so I pulled out about $6.5k and have been making monthly payments on it that matched a recent cost of living adjustment... I'm planning on increasing my monthly contributions to match my payments once that loan is paid up in another year or so.

I'm also wanting to start accounts now for my kids that I can give them....aside from college savings. I'd like to give them enough cash for a 20% down payment on their first house so they don't get stuck paying extra PMI insurance and other crap that's basically a liability tax for the poorly funded....

I think Red is a silly Canadian, so he has no idea what an IRA/ROTH is.
 

Scarpozzi

Lifer
Jun 13, 2000
26,389
1,777
126
Just remember, you can only give your children $11.18M and your wife can only give them $11.18M (total $22.36M), then the estate taxes will have to be paid. ;)
I just learned that 2 weeks ago!


I think Red is a silly Canadian, so he has no idea what an IRA/ROTH is.
Yeah....well...any tax sheltered account will do. If Canadians don't have those, then investing in index funds are the way to go.