When people ask me whether or not they should pay off their mortgage, my answer is always, unequivocally YES.
There are a number of psychological and financial burdens that are lifted once that proverbial noose around the neck is loosened. There’s a world of happiness and freedom out there just waiting for you once your biggest monthly expense is eliminated.
In my new book You Can Retire Sooner Than You Think – The 5 Money Secrets of the Happiest Retirees, I conducted a study of more than 1,350 retirees across 46 states to see what makes the happiest retirees.
One of the main recurring themes was that the happiest and most successful retirees had either eliminated or dramatically reduced their mortgage payment before pressing the retirement button.
A lot of people when faced with the prospect of paying down their mortgage or investing the money would say, “Why not put this money in the market and let it make some money instead?”
The answer to that is simple—we don’t know that the market is always going to go up. But we do know that not having the stress of a mortgage every month is worth its weight in gold.
Paying off your mortgage takes one big concern off the plate
Paying off your mortgage by the time you retire will bring you peace of mind. It will dramatically reduce the amount of income that your retirement safety net will need to produce. When the burden of paying a mortgage is eliminated, you have the budgetary freedom to spend more money on finding purpose and happiness in life.
Your retirement years are meant to be happy ones; you don’t want to wake up in the middle of the night mid-way through retirement worrying about how you are going to pay the mortgage. Happiness levels rise undeniably as mortgages vanish.
Read contributor Mike Timmermann’s popular article ‘6 Steps To Pay Off Your Mortgage Early.’
It’s your time to enjoy a deflationary moment
Deflationary moments don’t happen often in life. There are just not a lot goods and services in our day-to-day that are getting less expensive; prices are generally on the upward trajectory.
Whether it is gasoline, land, day care, groceries, etc., things are just getting pricier. With all of this inflation, when do you see any deflation? The answer is rarely—if ever.
This preview article is published on ClarkHoward.com where Wes Moss is a guest contributor. Click here to to read the full article as it originally appears.