Great to see that you're inspired to get out and do something good for your mind and body. Ruth Ann, great points you bring up. Not only does being in shape help the healing process, but I'm sure it helps to lessen the impact of an injury. And the best way to be is when you can't wait to get back into it. There are worse things to be addicted to than working out.
Barbara, kudos to you for going for it, and best of luck with it.
And Linsey, I only rock (subject to interpretation) because I've had the help of other people who truly rock, especially YOU!
Thanks for reading, and remember to get out there and break a sweat. Clothing is optional.
The one thing your scenarios of investing versus paying off the mortgage ignores is the risk associated with two. Obviously it makes mathematical sense to borrow at 5.5% with tax deductible interest payments to invest at 8% with tax deferred interest payments if the risks associated with the two are equal. The problem lies in that you are locked in to pay the 5.5% no matter what, rain or shine, housing bubble or boom, job or no job. The 8% could actually end up being 2% it could end up being 12%. There is risk involved.
If I have a paid off house and then start investing and then lose my job I can stop investing. If I am still making house payments and I lose my job I may be able to use my investments to make my house payments or they may be in a low period like we are in now and I would have to sell them at a huge loss to make my house payments. I'm sure there are many that are in this very situation right now. No job and having to sell investments in the stock market at 50 cents on the dollar to make their house payments.
My wife and I plan to have our 15 year mortgage paid off this May in 5 years while still investing about 15% of our income in retirement and college for the kids.
Lindsey, I am new to this site. I was so happy to see the dump recipe. Except I don't like Peaches. I was about to E you when I seen that Sherry and Jessica mentioned pineapple and cherries.
Thanks gals!!
there are solar stills out there, use wood and grass for sugars, but you can NOT drink it, its poison. lots of methonal i think, what ever it is, its not ethonal. as far as plastics and the plastic amazing still? its low temp, long time. its easy to build from scratch and it works, same as a solar still actually, heat source is low, tank heater or sun, and it collects slowly
ok, buy sugar bread yeast and get some 5 gallon buckets for free at the bakery or deli at the store. sterilize and clean buckets well,,, those pickle ones carry an odors. boil water and cool, when it hits 100 deg F, add sugar, keep a tablespoon and add to bowl of water, pitch the yeast by adding to water, sit for 20 minutes, it grows and smells great (home brewers love it) while its sitting, stir the sugar well, this also aerates the water, you don’t want to add extra oxygen after you add yeast.
add yeast, still lightly, add top, top off with airlock (balloon will work with pin hole)
give it a while, weeks, keep it in a closet with a plastic bag under it, drop a drier cling if you want, no real need.
i like to pull off the wash in another bucket to get it away from the old sediment, for flavour issues
let it sit another week.
buy the largest, cheapest lobster pot you can, i got 5 gallon stainless at old time pottery for about $9. some copper tube, a brass fitting at 90 deg that will hold tube. cut hole in lid, put in fitting, seal with black or red silicone, they are chemical and temp resistant. the fitting should stay on its own though. you can use dough to seal it each time if you want. when the lid is on, the copper comes off at 90 deg, lays flat on lid for support. comes down to counter into lid of mason jar, tip is submerged in wash, about 1 inch, another hole the rest of the tube comes out where it can collect steam only. the coil comes off and coils down off the counter to a jar on the floor. make sure you don’t create an air lock, the coil needs to drain down without it elevating.
when you take the final wash, pour it off so you won’t take sediment, taste bad in the pot. pot on stove, make a paste of wet bread or flour and water, seal the lid, and mason jar holes, anything else that leaks, i use large metal paper clips to hold the lid, they have handles and are black, get them at Wal-Mart.
flame on high till the pot hits about 160, then watch it till it starts to steam, it will steam into the thumper till the wash in there gets hot, then that will steam and you get vodka. \
once you collect it, use an old Britta water filter, i collect them just for this,, after 3 passes, you get grey goose. if you want to still again,, add distilled water, 50/50 and put in a clean pot and do again, if you want flavour, add lemon or orange peels to thumper.
take it apart when you are done, rinse well, no evidence
The comparison of $3400 in interest savings vs. $6800 in potential investment return is a bit misleading. I'm not saying it's incorrect, it's just that a few key pieces of information were not mentioned.
1. That extra $1k at year 5 does indeed cut the overall payments by $4,434. (netting you just over 3,400) But more signifiantly, it makes the payments over and done with almost 5 months earlier. (last payment would be about $363) The example payment would be $1,199.10, so that gives you an additional $5,633 extra cash when compared to the same term ending date as not paying the $1k. Total net from the 1,000 payment = $8,067.
2. A fixed rate mortgage has no sense of investment risk. Adjustable rate mortgage? Sorry I can't help you there. You have total control over when and how much extra you pay on a fixed rate "no pre-pay penalty" loan. With an investment, 8% is a great goal but honestly not in our control. Markets do what ever they want without regard to you specifically. It may go up, it may go down. Pre-payment savings are 100% guaranteed.
I bring this up because my mortgage was for 198k, and otherwise nearly identical to the example. By paying an extra $200 nearly every month, (if I was secure enough with the extra part-time income I would have maybe just picked the 20-year loan), I was able to cut about 8 years off the payments. So for the first 10 years it was about $25k extra cash. Ouch, right? But the interest savings comes out to over $90k! Nets out to about $65k actual savings, but that's still not too bad considering all I had to do was send a little bit extra if I had it. And the best part is the 8 years at the end with NO payments. That's another ... $115,000 ... that I can put to whatever other use I wish.
Housing is expensive enough, but when you realize that when you get done paying the mortgage it usually costs between 2 and 3 times the original amount, who in their right mind would want to pay so much interest?
Not to insult anyone's intelligence, but we're headed quickly to somewhere between a Depression and a second American Revolution. The value of the dollar is about to crash and when it does the American experience will change forever. In fact, it would be true to say it already has.
Like most people, my prime motivation is to a) provide for and protect my family. If nothing else that includes providing: food, clothing, shelter, and warmth.
At a base level, I can do all of those on a CASH basis. And, if the dollar bottoms out as I feel it will, then my credit score or morals aren't worth much, because just like you, I will take what I need from others, by force if necessary. Any of us would.
That being said, I have wrestled long and hard over this, and prayed more than I ever have about what to do.
Though I am in the minority on this at this point in time, I have finally concluded this is NOT a financial decision, NOR a moral decision .....
It is a SURVIVAL decision.
My family is in no immediate financial danger, however, I'm faced with a choice.
1) Act now by walking away from my debt of +/- $350k and start putting the combined monthly payments of $4500 in to gold, cash, food, non-US investments, etc. while we still have jobs. Upside: Lots of cash and hard assets. Downside: Ruined credit score.
or ....
2) Keep paying into a broken system in which I played by the rules, but now am being forced to pay for the mistakes and or greed of others. Upside: Get to keep my integrity and pride. Downside: I ultimately end up financially ruined anyway because the bad guys outnumber the good guys.
For me, the path is leaning toward the former. Here's my rationale:
If I choose # 1 and the whole thing blows up, I'm better prepared.
If I choose # 1 and things eventually get better, I can rebuild my credit and jump back on the wagon later down the road.
If I choose # 2 and the whole thing blows up, I am caught completely unprepared.
If I choose # 2 and things eventually get better, I'm glad I "did the right thing"
My wife is on her path to making a decision about this, and together we will decide on something.
Whatever we do, I only hope it's not too little too late.
I'm not really advocating early payoff, and I am really looking at payoff vs. stock, bond, savings investment -- just pointing out that it is helpful to look at the entire picture and to dissect what some financial advisors (who may be better at figuring sales commissions than taxable income and tax rates) are really telling you, and if their assumptions or rather generalizations apply to you personally. For example, the return on early payoff of a large mortgage is reduced b/c of the loss of the mortgage interest deduction but the return on Mrs. Accountability's mortgage would likely be the same as her interest rate (assuming that it is below 20%, which it sounds like it is, and her tax status is married/filing jointly).
As far as PMI, it would depend mostly on how close you were to having 20% equity and how much benefit the insurance is to reducing your taxable income.
The value of the home appreciation would really impact the purchase vs. not purchase home decision (or your price negotiations), not necessarily the paying the mortgage vs.saving/investing decision; if the home increased to $250,000 for example, you would have a $50,000 capital gain (with no capital gains taxes btw, another point to consider) but that gain would be independent of the equity the homeowner has. The equity though would impact the cash flow from the sale, so basically, you'd get more money back at the closing than if you'd hadn't added extra to your regular payment.
Right now, with extra cash, I'd make sure I had a cash cushion or very readily accessible funds in case of a job layoff; and take advantage of investment opportunities within your risk tolerance. Funding a Roth could be ideal for some b/c you can earn tax-free returns and take out contributions with no penalty in case you do need the money.
Today just seems to be a motivating, inspiring day.
After reading this post, and then going to see my hair stylist who's in the best shape of her life from working out the last 6 months, I just signed up for my city's 10K in April. Bonus? My boyfriend and a big group of our friends train for it every year together, so I'll have others to motivate and keep me going.
Hello, I would like to know what risk could I have if I buy a house in cash??
the house cost is $148,000 dollars, the neighbors houses prices are $200,000 or more. This house is the smallest house in the neighborhood. I like the house a lot. I just do not know what to do.
Jan, your dolls are quite pretty. I hope the congress straighten this law out quickly because there is only a month left until many small mom and pop shops may be punished or forced to dump their inventory. I did read somewhere that they're exempting things made out of cotton, but if their are metal or plastic components they still need to test those.
My local home and garden store was selling those battery powered votive 'candles' by the box only for something north of 15.00. Dollar Store had 2 in a pack for 1.00.
I'm 29, have had my mortgage for 5 years at 6% and am looking to refi to a 15 year for 4% hardly increasing my payment at all. There's nothing I would like more in the world (realistically and financially) than to pay off my mortgage. We've all heard the mantra "It's called personal finances blah, blah, blah..." but who wouldn't like roughly an extra 1k to invest each month. Especially now. The US economy is on sale and everyday is like black friday. I'm buying now and forgetting about it for 5 years or when I feel the market has recovered enough for me (pending significant jumps). When is "enough"? When I can sell what I've invested today and pay off my mortgage. That's my goal. 5 years. Done. To each his/her own though!
Also, regarding the 1k in equity, it should also be noted you didn't factor in appreciating value over the same 25 years. Add that to your interest savings and now you have a more realistic comparison (especially if you are looking to sell in the next few years).
We used a small inheritance 8 years ago to pay off our mortgage. When we sold that house 5 years ago and bought a condo, we "rolled over" the equity and still no mortgage. There's nothing like being debt-free! I don't care what theoretical benefits there might be, if you don't owe you're not owned by your creditors. Peace of mind and a high degree of financial security, what can compare to that?
A suggest for those who don't have a lump sum: stock away that extra money in CDs or something where it'll serve as your emergency fund. When you have enough (plus some left over for emergencies), pay the mortgage. Sure it might take years, but you'll be growing net worth and getting peace of mind the whole time.
This book sounds like a fun read and I imagine that it will definitely help a lot of people. However, sometimes it gets a little old when it's assumed that women know very little about technology and only want "pretty" laptops and other gadgets? We can handle industrial strenght, and besides, there are plenty of boys out there who don't have a clue what they're doing either! ;-)
I am a grandmother who loves to make waldorf style dolls. In the last year my husband changed jobs and took a deep pay cut. We needed me to bring in some money. Since February I have sold over 100 dolls ... all made of cotton, stuffed with clean, carded (USA sourced)wool .. from my very rural homestead. It made a difference in our lives. I know the dolls brought joy to other people's lives. And now the CPSIA law. Didn't they realize how many tiny little home businesses are in our country that sustain people's lives? Did some even read the law? I hope they are able to fix this mess.
If you really want to save, do your own. It's exceedingly simple for most vehicles, and you need only to find where there's a used oil recycling location in your locale.
That said, since hand-me-downs and recycling/reusing things you "may think twice about", I can see that things aren't really that difficult, it's just that you now have to be somewhat accountable instead of giving money away like a drunk. Oh noes!
I guess the DIY is probably out of the question for the author, based on that, but for anyone else...
Another good reason to exercise is so that you'll be in better shape should something happen and you have to have surgery. I had knee surgery earlier this week...it was planned so I had some time to prepare. I got some exercises (from my surgeon as well as the staff at my gym) to do specifically to strengthen the muscles that I'm using now, post-surgery. I can tell that it's made a huge difference. Having strength in my bad leg has helped a lot, but what's been even more helpful is having the strength in my good leg - the one that I'm spending more time standing on, bending from, etc.
Also huge has been the good balance that I developed (that was more just something that I've been working on rather than something that I did in preparation for the surgery). The balance especially is quick and easy to do. I do unweighted, unsupported in any way squats on a balance cushion, first with both legs and then on each leg indivdually, one set of 12, once a day about, four or five days a week. It takes me less than five minutes and has made a huge difference in my balance.
Now I'm hoping that after my follow-up appointment on Monday I'm cleared to go back to the gym to at least do upper body weights, abs class and maybe some light biking. I really do miss it.
Phthalates are, since you didn't bother to look them up, an additive to plastic, generally PVC, that is used to soften plastics (know as a plasticizer). They are nasty things that cause endocrine disruption, which means they screw with your hormones.
Their use has been severely limited in children's toys in the EU since 1999. Finally, the US is catching up on this. Speaking as some one who has worked in the US toy industry, in some cases the EU overreacts to dangers in toys. This is NOT one of those cases and is an issue that should have been addressed ASAP, once discovered.
Generally, I recommend, when people ask me, that they stay away from all PVC toys, especially for young kids who are apt to put things in their mouths.
I can only speak for myself, married 32 yrs I am 52 and hubby 54 I paid off my mortgage 2 yrs ago to be secure.Husband works for a hospital I am a nurse who works full time for an insurance company and per diem for the hospital neither of us worried about lay offs at the time but we thought it gave peace of mind and security to have the house paid for.We do the same for cars, I drive a 95 camry been paid for since 97.Husband drives honda element 2007 that will be paid off in 1 more year.We have all the safety nets in place like long term disability,health ins,dental/eye ins,life/house/car ins.Last debt is home equity loan to pay off our roof.We have 401K,403b retirement accounts from the hospital towards our retirement AND still I worry.The pay off of a mortgage was the best thing we ever did from psych to financial.If I was young starting out and could get a mortgage at 5-6% I would handle it totally different.I believe it depends on your individual situation
@Kristin:
For many cars, changing oil at 3000 miles is too soon--my Saturn manual tells me to wait untill 5000, and the oil meter doesn't come on until at least 7500. The 3000 stressed by your local oil-change place is a racket. Consult your manual, and you might be surprised.
Why not start with the wholesalers? Why should retailers get stuck with bad goods in the first place? If it's a matter of compliance make it a standard pracice to test stuff at the docks, charged to the manufacturer and sent back at their expense. That way it's more costly to produce bad stuff than good. It seems it's always easier to nip things in the bud instead of waiting for seeds to be blown around and start to root.
Hey Everyone,
Great to see that you're inspired to get out and do something good for your mind and body. Ruth Ann, great points you bring up. Not only does being in shape help the healing process, but I'm sure it helps to lessen the impact of an injury. And the best way to be is when you can't wait to get back into it. There are worse things to be addicted to than working out.
Barbara, kudos to you for going for it, and best of luck with it.
And Linsey, I only rock (subject to interpretation) because I've had the help of other people who truly rock, especially YOU!
Thanks for reading, and remember to get out there and break a sweat. Clothing is optional.
Fred
Parenting the Hard Way
Green in the Green Mountain State
The one thing your scenarios of investing versus paying off the mortgage ignores is the risk associated with two. Obviously it makes mathematical sense to borrow at 5.5% with tax deductible interest payments to invest at 8% with tax deferred interest payments if the risks associated with the two are equal. The problem lies in that you are locked in to pay the 5.5% no matter what, rain or shine, housing bubble or boom, job or no job. The 8% could actually end up being 2% it could end up being 12%. There is risk involved.
If I have a paid off house and then start investing and then lose my job I can stop investing. If I am still making house payments and I lose my job I may be able to use my investments to make my house payments or they may be in a low period like we are in now and I would have to sell them at a huge loss to make my house payments. I'm sure there are many that are in this very situation right now. No job and having to sell investments in the stock market at 50 cents on the dollar to make their house payments.
My wife and I plan to have our 15 year mortgage paid off this May in 5 years while still investing about 15% of our income in retirement and college for the kids.
Lindsey, I am new to this site. I was so happy to see the dump recipe. Except I don't like Peaches. I was about to E you when I seen that Sherry and Jessica mentioned pineapple and cherries.
Thanks gals!!
there are solar stills out there, use wood and grass for sugars, but you can NOT drink it, its poison. lots of methonal i think, what ever it is, its not ethonal. as far as plastics and the plastic amazing still? its low temp, long time. its easy to build from scratch and it works, same as a solar still actually, heat source is low, tank heater or sun, and it collects slowly
ok, buy sugar bread yeast and get some 5 gallon buckets for free at the bakery or deli at the store. sterilize and clean buckets well,,, those pickle ones carry an odors. boil water and cool, when it hits 100 deg F, add sugar, keep a tablespoon and add to bowl of water, pitch the yeast by adding to water, sit for 20 minutes, it grows and smells great (home brewers love it) while its sitting, stir the sugar well, this also aerates the water, you don’t want to add extra oxygen after you add yeast.
add yeast, still lightly, add top, top off with airlock (balloon will work with pin hole)
give it a while, weeks, keep it in a closet with a plastic bag under it, drop a drier cling if you want, no real need.
i like to pull off the wash in another bucket to get it away from the old sediment, for flavour issues
let it sit another week.
buy the largest, cheapest lobster pot you can, i got 5 gallon stainless at old time pottery for about $9. some copper tube, a brass fitting at 90 deg that will hold tube. cut hole in lid, put in fitting, seal with black or red silicone, they are chemical and temp resistant. the fitting should stay on its own though. you can use dough to seal it each time if you want. when the lid is on, the copper comes off at 90 deg, lays flat on lid for support. comes down to counter into lid of mason jar, tip is submerged in wash, about 1 inch, another hole the rest of the tube comes out where it can collect steam only. the coil comes off and coils down off the counter to a jar on the floor. make sure you don’t create an air lock, the coil needs to drain down without it elevating.
when you take the final wash, pour it off so you won’t take sediment, taste bad in the pot. pot on stove, make a paste of wet bread or flour and water, seal the lid, and mason jar holes, anything else that leaks, i use large metal paper clips to hold the lid, they have handles and are black, get them at Wal-Mart.
flame on high till the pot hits about 160, then watch it till it starts to steam, it will steam into the thumper till the wash in there gets hot, then that will steam and you get vodka. \
once you collect it, use an old Britta water filter, i collect them just for this,, after 3 passes, you get grey goose. if you want to still again,, add distilled water, 50/50 and put in a clean pot and do again, if you want flavour, add lemon or orange peels to thumper.
take it apart when you are done, rinse well, no evidence
The comparison of $3400 in interest savings vs. $6800 in potential investment return is a bit misleading. I'm not saying it's incorrect, it's just that a few key pieces of information were not mentioned.
1. That extra $1k at year 5 does indeed cut the overall payments by $4,434. (netting you just over 3,400) But more signifiantly, it makes the payments over and done with almost 5 months earlier. (last payment would be about $363) The example payment would be $1,199.10, so that gives you an additional $5,633 extra cash when compared to the same term ending date as not paying the $1k. Total net from the 1,000 payment = $8,067.
2. A fixed rate mortgage has no sense of investment risk. Adjustable rate mortgage? Sorry I can't help you there. You have total control over when and how much extra you pay on a fixed rate "no pre-pay penalty" loan. With an investment, 8% is a great goal but honestly not in our control. Markets do what ever they want without regard to you specifically. It may go up, it may go down. Pre-payment savings are 100% guaranteed.
I bring this up because my mortgage was for 198k, and otherwise nearly identical to the example. By paying an extra $200 nearly every month, (if I was secure enough with the extra part-time income I would have maybe just picked the 20-year loan), I was able to cut about 8 years off the payments. So for the first 10 years it was about $25k extra cash. Ouch, right? But the interest savings comes out to over $90k! Nets out to about $65k actual savings, but that's still not too bad considering all I had to do was send a little bit extra if I had it. And the best part is the 8 years at the end with NO payments. That's another ... $115,000 ... that I can put to whatever other use I wish.
Housing is expensive enough, but when you realize that when you get done paying the mortgage it usually costs between 2 and 3 times the original amount, who in their right mind would want to pay so much interest?
Here's why:
Not to insult anyone's intelligence, but we're headed quickly to somewhere between a Depression and a second American Revolution. The value of the dollar is about to crash and when it does the American experience will change forever. In fact, it would be true to say it already has.
Like most people, my prime motivation is to a) provide for and protect my family. If nothing else that includes providing: food, clothing, shelter, and warmth.
At a base level, I can do all of those on a CASH basis. And, if the dollar bottoms out as I feel it will, then my credit score or morals aren't worth much, because just like you, I will take what I need from others, by force if necessary. Any of us would.
That being said, I have wrestled long and hard over this, and prayed more than I ever have about what to do.
Though I am in the minority on this at this point in time, I have finally concluded this is NOT a financial decision, NOR a moral decision .....
It is a SURVIVAL decision.
My family is in no immediate financial danger, however, I'm faced with a choice.
1) Act now by walking away from my debt of +/- $350k and start putting the combined monthly payments of $4500 in to gold, cash, food, non-US investments, etc. while we still have jobs. Upside: Lots of cash and hard assets. Downside: Ruined credit score.
or ....
2) Keep paying into a broken system in which I played by the rules, but now am being forced to pay for the mistakes and or greed of others. Upside: Get to keep my integrity and pride. Downside: I ultimately end up financially ruined anyway because the bad guys outnumber the good guys.
For me, the path is leaning toward the former. Here's my rationale:
If I choose # 1 and the whole thing blows up, I'm better prepared.
If I choose # 1 and things eventually get better, I can rebuild my credit and jump back on the wagon later down the road.
If I choose # 2 and the whole thing blows up, I am caught completely unprepared.
If I choose # 2 and things eventually get better, I'm glad I "did the right thing"
My wife is on her path to making a decision about this, and together we will decide on something.
Whatever we do, I only hope it's not too little too late.
I'm not really advocating early payoff, and I am really looking at payoff vs. stock, bond, savings investment -- just pointing out that it is helpful to look at the entire picture and to dissect what some financial advisors (who may be better at figuring sales commissions than taxable income and tax rates) are really telling you, and if their assumptions or rather generalizations apply to you personally. For example, the return on early payoff of a large mortgage is reduced b/c of the loss of the mortgage interest deduction but the return on Mrs. Accountability's mortgage would likely be the same as her interest rate (assuming that it is below 20%, which it sounds like it is, and her tax status is married/filing jointly).
As far as PMI, it would depend mostly on how close you were to having 20% equity and how much benefit the insurance is to reducing your taxable income.
The value of the home appreciation would really impact the purchase vs. not purchase home decision (or your price negotiations), not necessarily the paying the mortgage vs.saving/investing decision; if the home increased to $250,000 for example, you would have a $50,000 capital gain (with no capital gains taxes btw, another point to consider) but that gain would be independent of the equity the homeowner has. The equity though would impact the cash flow from the sale, so basically, you'd get more money back at the closing than if you'd hadn't added extra to your regular payment.
Right now, with extra cash, I'd make sure I had a cash cushion or very readily accessible funds in case of a job layoff; and take advantage of investment opportunities within your risk tolerance. Funding a Roth could be ideal for some b/c you can earn tax-free returns and take out contributions with no penalty in case you do need the money.
Today just seems to be a motivating, inspiring day.
After reading this post, and then going to see my hair stylist who's in the best shape of her life from working out the last 6 months, I just signed up for my city's 10K in April. Bonus? My boyfriend and a big group of our friends train for it every year together, so I'll have others to motivate and keep me going.
Thanks so much!
Hello, I would like to know what risk could I have if I buy a house in cash??
the house cost is $148,000 dollars, the neighbors houses prices are $200,000 or more. This house is the smallest house in the neighborhood. I like the house a lot. I just do not know what to do.
Anyway, thanks.
Sara
Jan, your dolls are quite pretty. I hope the congress straighten this law out quickly because there is only a month left until many small mom and pop shops may be punished or forced to dump their inventory. I did read somewhere that they're exempting things made out of cotton, but if their are metal or plastic components they still need to test those.
oh, it is actually pronounced "thal-ates." the "ph" is silent.
My local home and garden store was selling those battery powered votive 'candles' by the box only for something north of 15.00. Dollar Store had 2 in a pack for 1.00.
I'm 29, have had my mortgage for 5 years at 6% and am looking to refi to a 15 year for 4% hardly increasing my payment at all. There's nothing I would like more in the world (realistically and financially) than to pay off my mortgage. We've all heard the mantra "It's called personal finances blah, blah, blah..." but who wouldn't like roughly an extra 1k to invest each month. Especially now. The US economy is on sale and everyday is like black friday. I'm buying now and forgetting about it for 5 years or when I feel the market has recovered enough for me (pending significant jumps). When is "enough"? When I can sell what I've invested today and pay off my mortgage. That's my goal. 5 years. Done. To each his/her own though!
Also, regarding the 1k in equity, it should also be noted you didn't factor in appreciating value over the same 25 years. Add that to your interest savings and now you have a more realistic comparison (especially if you are looking to sell in the next few years).
We used a small inheritance 8 years ago to pay off our mortgage. When we sold that house 5 years ago and bought a condo, we "rolled over" the equity and still no mortgage. There's nothing like being debt-free! I don't care what theoretical benefits there might be, if you don't owe you're not owned by your creditors. Peace of mind and a high degree of financial security, what can compare to that?
A suggest for those who don't have a lump sum: stock away that extra money in CDs or something where it'll serve as your emergency fund. When you have enough (plus some left over for emergencies), pay the mortgage. Sure it might take years, but you'll be growing net worth and getting peace of mind the whole time.
What is the advice when you are paying PMI? Are extra payments worth it in that case?
This book sounds like a fun read and I imagine that it will definitely help a lot of people. However, sometimes it gets a little old when it's assumed that women know very little about technology and only want "pretty" laptops and other gadgets? We can handle industrial strenght, and besides, there are plenty of boys out there who don't have a clue what they're doing either! ;-)
I am a grandmother who loves to make waldorf style dolls. In the last year my husband changed jobs and took a deep pay cut. We needed me to bring in some money. Since February I have sold over 100 dolls ... all made of cotton, stuffed with clean, carded (USA sourced)wool .. from my very rural homestead. It made a difference in our lives. I know the dolls brought joy to other people's lives. And now the CPSIA law. Didn't they realize how many tiny little home businesses are in our country that sustain people's lives? Did some even read the law? I hope they are able to fix this mess.
Follow your owners manual for oil changes.
If you really want to save, do your own. It's exceedingly simple for most vehicles, and you need only to find where there's a used oil recycling location in your locale.
That said, since hand-me-downs and recycling/reusing things you "may think twice about", I can see that things aren't really that difficult, it's just that you now have to be somewhat accountable instead of giving money away like a drunk. Oh noes!
I guess the DIY is probably out of the question for the author, based on that, but for anyone else...
Oh, and it pronounced "fie-lates".
Another good reason to exercise is so that you'll be in better shape should something happen and you have to have surgery. I had knee surgery earlier this week...it was planned so I had some time to prepare. I got some exercises (from my surgeon as well as the staff at my gym) to do specifically to strengthen the muscles that I'm using now, post-surgery. I can tell that it's made a huge difference. Having strength in my bad leg has helped a lot, but what's been even more helpful is having the strength in my good leg - the one that I'm spending more time standing on, bending from, etc.
Also huge has been the good balance that I developed (that was more just something that I've been working on rather than something that I did in preparation for the surgery). The balance especially is quick and easy to do. I do unweighted, unsupported in any way squats on a balance cushion, first with both legs and then on each leg indivdually, one set of 12, once a day about, four or five days a week. It takes me less than five minutes and has made a huge difference in my balance.
Now I'm hoping that after my follow-up appointment on Monday I'm cleared to go back to the gym to at least do upper body weights, abs class and maybe some light biking. I really do miss it.
Phthalates are, since you didn't bother to look them up, an additive to plastic, generally PVC, that is used to soften plastics (know as a plasticizer). They are nasty things that cause endocrine disruption, which means they screw with your hormones.
Their use has been severely limited in children's toys in the EU since 1999. Finally, the US is catching up on this. Speaking as some one who has worked in the US toy industry, in some cases the EU overreacts to dangers in toys. This is NOT one of those cases and is an issue that should have been addressed ASAP, once discovered.
Generally, I recommend, when people ask me, that they stay away from all PVC toys, especially for young kids who are apt to put things in their mouths.
I can only speak for myself, married 32 yrs I am 52 and hubby 54 I paid off my mortgage 2 yrs ago to be secure.Husband works for a hospital I am a nurse who works full time for an insurance company and per diem for the hospital neither of us worried about lay offs at the time but we thought it gave peace of mind and security to have the house paid for.We do the same for cars, I drive a 95 camry been paid for since 97.Husband drives honda element 2007 that will be paid off in 1 more year.We have all the safety nets in place like long term disability,health ins,dental/eye ins,life/house/car ins.Last debt is home equity loan to pay off our roof.We have 401K,403b retirement accounts from the hospital towards our retirement AND still I worry.The pay off of a mortgage was the best thing we ever did from psych to financial.If I was young starting out and could get a mortgage at 5-6% I would handle it totally different.I believe it depends on your individual situation
@Kristin:
For many cars, changing oil at 3000 miles is too soon--my Saturn manual tells me to wait untill 5000, and the oil meter doesn't come on until at least 7500. The 3000 stressed by your local oil-change place is a racket. Consult your manual, and you might be surprised.
Why not start with the wholesalers? Why should retailers get stuck with bad goods in the first place? If it's a matter of compliance make it a standard pracice to test stuff at the docks, charged to the manufacturer and sent back at their expense. That way it's more costly to produce bad stuff than good. It seems it's always easier to nip things in the bud instead of waiting for seeds to be blown around and start to root.