So out of curiosity what kind of return are you getting annually with a safe fixed asset portfolio? Mind you I do not know what your definition of this is but what little I have seen is 2%ish. I haven't seen an APR on a home loan that low around here so you are still paying out more in interest than you are getting in return. My wife and I are trying to do both so it all merges at the right time, We are investing (not as much as we would like) and working away at the mortgage.

 

"Money does not buy happiness."

That is correct, but it can make one hell of a down payment on it!

 

underdog2003, I have to commend you on making this tough decision! Family First! You made a decision that I unfortunately was forced to make at a too early age. Long story short, in 1996, my 42 year old best friend, wife and mother of my then 4 and 7 year old kids passed away after a 9 month battle with cancer. Boy did things change in a hurry. Widowed at 41, and facing raising two very young children by myself, I decided then and there I had to change and vowed to park my bike until my youngest turned 18 (tried to reduce as much risk as I could) and I made it my mission to get debt free and to pay off my house before they were out of high school. Many years of sacrifice allowed me to accomplish that. The day I paid off my mortgage was one of the happiest days of my life. I felt that if something happened to me, at least they would have a home to live in. Jump ahead to two years ago, I was diagnosed with cancer, but that ***** didn't beat me. 2 years cancer free, but I had to stop riding for 8 months, but so what! If you stick to your plan, your financial future will be very bright and you will ride again, maybe even with your kids like I do today!

 

I commend anyone that can sacrifice in the now for the future to live a "cash is king" life. In the OP's case it makes a lot of sense.

However, there is a time value to money, and to what it buys. If someone understands the interest they're paying to enjoy the now and it is worth it to them, what is the harm? This requires of course still planning for your future, but some people are willing to have a crappier retirement for a better now. What's more fun, a powerboat at 26 or 66 (I sure as hell know which group of friends I wanna see and remember forever in bikinis haha).

This is what the Ramsey followers miss. Some people have the math down, and choose to pay some interest. Like the other guy here mentioned, I have no problem w/ math or finance and have the degrees and job experience to prove it. I still choose to finance some stuff now to enjoy it while I'm young. 5 years of saving for a boat is 5 years of not having one, etc, and the interest on that loan is worth it to me.

My big investment was my house like many others, luckily for me it lost a ton of value, I'm locked at a high interest rate and there's little I can do. Had I been pissing that money away renting, etc I'd at least have been able to move to pursue other job opportunities.

I guess my point is that a self-help book might be the right path for some guys, but that doesn't mean people can't figure out other ways for themselves that all lead to the same goals.....

 

I'm not here to put you down....but the reason for this thread was a brave young man looking for a little support for a difficult choice he made. You are on a different path....why even chime in??

Young fella, your rationalizations about money, are the same a alcoholic use to pick up the bottle of wine. It's the human impulse for Immediate gratification that many cannot deny.

It's the old, "Grasshopper and the ant" story over and over again.

I'm here to tell you looking at life after 1/2 a century in the blue collar work force that no one can put a dollar amount of value on the piece of mind and enjoyment being retired and living debt free gives me. Every minute of my time is my own to enjoy. I ain't rich, but do have a nice place in Montana for the warmer months, and a little place in Arizona for the winters. I haul horses and my Harley with us when we go. Beats greating shoppers at Wal-Mart to suppliment a SS Check.

Sadly when your my age, your idea of a crummy retirement my have changed some. Just a little food for thought.

 

Montana, Thank You. The first real voice of reason I've seen in this thread. You and I think alike. It may not be our age, or wisdom, but we have gained some experience along the way. Well said my friend.

 

RLJ676

The Op is married with kids. The girls in bikinis are always nice to look at but the op has clearly moved beyond the stage of chasing them. He wants to provide for his family as well as stay alive to help them grow up. While there are other choices, he is making the ONLY correct one here. There will always be more Harley and girls in bikinis. Your kids only get one childhood and one father. Bravo to the OP!

 

Did you not read the very first thing I said? In his case his decision makes complete sense and I totally respect it.

This thread is more than a little off track w/ the self help book pushers claiming their way is the only way. Guess what, it's not.

Oh, and my idea of a crummy retirement is owning my home and $1 M in a 401K (hopefully) as I will have no pension and expect no SS. I won't be retiring filthy rich or early though. While still on track to do that I'll pay some interest now was my point.

 

most of us have been in that situation before..After more kids and less money, sold my scoot and didn't get another for 29 years....well worth the wait.....

 

Exactamundo. My wife took Dave Ramsey too. Last year we were finally able to have a beach front credit card cutting ceremony. We're Debt Free today. Bought my Harley with cashola.