I got in a debate about paying my house off early and getting out of debt in general today with a co-worker.
I came to the realization that if you pay off our house early, you basically extend your the middle class range below what the typical measurement is.
Why?
Well, if you pay off your house, your take home pay increases by that much more. Basically meaning that you could make that much less and still have the same middle-class lifestyle.
So let's say you make $50,000, and your morgage runs 1,000 per month... That means you could pretty much get a job somewhere else making only $38,000 and you would still have the same middle class lifestyle.
Or course, once you do get your house paid off, you definitely should put that extra money in a mutual fund, ETF, or some type of investment that appreciates or pays a dividend of some type.
Well, I'm going on vacation, I won't be back until a little over a week...
Have a good weekend!
- D
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