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110 sats \ 3 replies \ @boisechampion 20 Dec 2023 \ on: When not to pay off a loan early. Personal_Finance
I’m actually more like your friend. It’s all about emotional management which leads to better decision-making.
I don’t like the idea of somebody having power to call alone on my family. It’s an invasion into my territory.
Sometimes I lie awake stressed about my mortgage. Logically, there’s no reason to be I can pay my mortgage pretty easily with my income.
But regardless, it pisses me off that somebody owns a part of my property aka the bank.
By having less debt in our family were able to make better more long-term decisions. And we sleep better at night.
It has nothing to do with the math.
Everyone is different, and that’s OK
That's a fair point, and I can understand not wanting the threat of foreclosure or repossession held over you. Technically the bank does still own part of the property, and with a vehicle it's much easier to end up owing more than the remaining equity.
On the flipside, my friend could have paid cash for the car, and if that cash was still sitting in a money market account or better in BTC they would be well ahead right now.
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I don't think there are wrong decisions when it comes to debt, savings etc. The major factor at play is your internal state.
Does the decision make you calmer and make better long term decisions? Thats how I operate.
I know guys in my industry who are leveraged to the tits with 20 rentals. They could care less. Good for them. It could never be me.
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I relate to the idea of sleeping better at night
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