With no mortgage, what do you do with the extra money?

Our first question of the month comes in from Nick from Tampa who responded to a blog post I wrote about paying off our mortgage (here’s the article):

Andy,

I love this blog post. As a former Dave Ramsey groupie myself, I’m really excited for y’all!

Would love to hear about your perspective one year later. I’m curious where you’re at with this? Have you followed through on your plans to allocate your savings like you say at the end of the post?

Have you invested in other opportunities?

How have the vacations gone?

Do you regret paying the mortgage off or do you still feel it was a smart decision?

From, Nick from Teach My Kids Money

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How Pursuing Financial Independence Put Us Into Marriage Counseling – with Andy & Nicole Hill

When we paid off our mortgage early, it was one of the happiest days of my life. The major reduction in our overall annual expenses and my stress level was immediate. We celebrated with the whole family (check out our epic celebration here).

Little did I know though that one of the best days of my life would lead to one of the largest disagreements I’ve ever had with my wife of 8 years. We were really good at paying off the mortgage together, but we were not prepared for what we’d do with the money afterward.

We both had different ideas of what we should do with the money, but we didn’t communicate them to each other very effectively. (Well, I really didn’t).  

To help remedy the situation, we decided to attend marriage counseling sessions after they were recommended by a good friend. It was one of the best decisions we’ve ever made as a couple.

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Should I Pay Off My Mortgage or Invest?

Our question of the month comes in from Luke from Indiana:


Hey Andy,

I was reading on your blog that you recently paid off your mortgage early. Congratulations!

I’m a Dave Ramsey guy like you and we’re getting close to baby step 6. I’m considering going heavy into paying off my mortgage like you did, but I’m also thinking it might be smarter for me to invest more for my retirement or just simply invest in the market. I also know market returns are unpredictable and we’re near all-time highs.

I have a 15-year mortgage at around 4% and the principal sits around $200,000. My wife and I are both working – we like what we do and combined we make around $200,000 per year. I feel like we could throw $50k per year at the mortgage and we’d be done in 4 years or less.

That could also be a good amount to throw at our retirement each year too.

What would you suggest for us? Should we pay off our mortgage or invest the money?

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Dear 20-Year Old, Invest Now and Retire Early

I recently sent a letter (yes, a real letter) to my 20-year old nephew encouraging him to start saving for his retirement today. With time and compound interest on his side, his options are endless. In order for him to reach financial independence, he’ll need to invest and adopt some crucial money-smart habits early on in his life.

Cross your fingers for me that the message resonates with him!

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How We Paid off $48,032 of Debt in 1 Year

In May 2010, I married my dream girl. She was funny, beautiful and chock-full of 90’s TV trivia. Our first couple of dates consisted of a lot of Saved by the Bell and Seinfeld jokes.

Outside of knowing the Soup Nazi episode verbatim, Nicole and I both came into the marriage knowing the general basics of personal finance. You know, advice like:

  • “Don’t carry a credit card balance”
  • “Always have some savings for a rainy day”
  • “Good debt is okay to have”

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5 Reasons to Choose a 15-Year Mortgage

3 years ago, Nicole and I moved into our forever house.  It was love at first sight.

Compared to our previous 1,100 square foot bungalow, this new tri-level home had a bigger yard, an open floor plan and neighbors that became instant friends of ours.

When it came time to choosing the mortgage, we didn’t want our dream home to turn into a nightmare.

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