Paying towards principle vs. saving - Page 2 - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

Casper Rieper-Holm · #11 (**permalink**) 03-19-2008, 11:53 AM

Hi David i can transfer the 2000 UD Dollar today, then please by the stocks for me, but please transfer them to my offshore account.

AllThingsPersonalFinance · #12 (**permalink**) 04-10-2008, 10:53 PM

Pay off the mortgage as quickly as you can. Take the amount that are currently paying for your home monthly and invest it in a good mutual fund that you and your wife can decide on.

Right now, you are arguing like family instead of discussing like husband and wife.

maat55 · #13 (**permalink**) 04-13-2008, 03:05 PM

Quote:

Originally Posted by James13242

Gary hit the nail on the head. Placing any extra money on your home each month will save you money in the end. I will take this one step further though. You need to get on the same page with your wife regarding financial goals and priorities. Remember that money is near the top of the list for reason for divorce in the United States. Sit down once a month and create a budget, develop spending and saving priorities and overall financial and life goals.

With that said, it may not be best to put that $100/month into the house. I would look to do several other things first: 1) Make sure that you have some money in the back for an emergency fund, 2) Pay off all consumer debt such as credit cards and student loans, 3) Work on retirement by maxing out a Roth IRA for both yourself and your wife as well as contributing to a company matched 401k if available, 4) Put money away for the kid's college fund if applicable and something you wish to help them with, 5) Pay down to mortgage, 6) Start investing in mutual funds.

I agree, Gary needs to payoff other high interest consumer debt and fund roths before adding to house payments. Investing in more aggressive mutual funds can beat the interest on his mortgage also. Having an emergency fund of at least 3 months is his first priority.

bdasolutions · #14 (**permalink**) 04-20-2008, 02:52 AM

Saving the money in the bank for 3% interest, while you pay 6.25% interest to the other bank (mortgage company) sounds like a bad deal to me. I would pay more towards the principal on the loan. The mortgage company does no like that, but that is the right thing to do. Sorry, your wife is right AGAIN!