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I could have used the money to buy a car or trip around the world. I could have bought something at Tiffany's. It doesn't matter what I spent the money on (well, it does to me). I took the risk. I'm uncomfortable.
Two more paychecks....
You are right spending the money in any capacity would create the liquidity problem however that alone wouldn't have been relevant to this conversation as well as prior ones. The fact you spent it on paying off your mortgage is the direct reason for your liquidity crunch and uncomfortableness. There is no reason to keep going on with this because you are agreeing with me now even if you don't realize it
You are right spending the money in any capacity would create the liquidity problem however that alone wouldn't have been relevant to this conversation as well as prior ones. The fact you spent it on paying off your mortgage is the direct reason for your liquidity crunch and uncomfortableness. There is no reason to keep going on with this because you are agreeing with me now even if you don't realize it
I bet the OP doesn't feel uncomfortable and he paid off his mortgage.
Just wanted to share my excitement about paying off my house this week! I made the wire transfer last Friday and received confirmation this week that everything went through correctly.
Congratulations!
It's a personal decision and there is no one-size-fits-all answer for everyone. You did what was right for you.
I think we were last in our group of friends to pay off the house but it was such a good feeling when we did.
Just wanted to share my excitement about paying off my house this week! I made the wire transfer last Friday and received confirmation this week that everything went through correctly.
For me I decided to do it for a couple of reasons. I'm 37 and maxing out a 401k, IRA and HSA, so I have a good chunk of money already going into equities. Of course stocks look a little rich and most indications are that we're going to have to settle for lower rates of return over the next few years. Knowing those things, I felt comfortable throwing the extra money at the house. I realize I might miss out on some extra growth that I could have earned by stretching the mortgage out to its full term and investing the difference, but I paid it off start to finish in 5 years so that difference will be small since I can now start throwing the leftover money into investments.
*No I don't make 250k or anything crazy. I'm not as extreme as Mr Money Mustache, but his inspiration to live on significantly less than I make is largely what helped me get to where this was a possibility and I recommend him along with Clark Howard for anyone who wants to get ahead.
That is great... THANK YOU for posting your story.
I'm working on numbers... but have to wait a couple of months before some raises kick in. Running the numbers I hope to have my condo paid off soon. I also max my 401, save on the side, etc.
I am also 37 and we paid ours off 6 weeks ago. We are really happy it's done, but it's been a slightly bumpy road ever since. First of all I kinda sorta threw in our emergency funds to cut off the last 3 months of waiting. Not all of it, but a substantial portion of it. I knew it was a risk, a temporary one, that would be all but forgotten after 3 pay checks and the escrow check. So we got the escrow check and we've had one pay check and our liquidity is back to about 4 months worth of living expenses, but I thought it would be a little higher... since the escrow account paid the taxes I never knew when property taxes were due... so you can imagine the surprise that I had when I looked up the due date and discovered a tax due date just two weeks after paying off the mortgage. I had to turn over the escrow funds almost immediately. Bummer...
Also, in the few weeks prior to pay off my husband was talking to a very reputable corporate executive recruiter. The job is at least 5 levels above where my husband currently is and it seemed so far fetched that I didn't give it any consideration. But low and behold he was given a verbal offer last week and apparently a written offer is simply lacking a signature from the CEO's right-hand man before coming our way... so yeah, my husband has a very high chance of changing jobs in the next month and if he does, we have to pay back his current employer last month's cash bonus... oh, and my husband feels that NOW is the time to take vacation, so I'm planning a 10 day road trip in California.
I think our emergency fund is going to remain stationary at 4-5 months for the next 8-10 weeks if this all happens. I know for many, that's still a lot of cash reserves, but it doesn't make me comfortable. Fortunately we have credit cards and family that can easily help us if anything goes seriously wrong. And that first pay check from the new job will give us nearly 9 months of living expenses at once.. that would be amazing!
I still think it's going to be fine, but I've not been comfortable.
I hope you're in a better place and can just relish in your big achievement! It's really great! Go have fun!
It seems oddly compulsive to create such anxiety by somewhat depleting your emergency fund because you feel such an overwhelming need to pay off the house NOW. I understand the general concept, but I prefer to feel more in control of my spending so that I'm not compelled to do ANYTHING - it is always a rational decision.
In fact, it almost seems like a "high" you're getting....because even though you're anxious, you aren't delaying the vacation. And surely since I've read about this possible new job for weeks now, you knew there was a good chance of having to return the bonus check. I guess it's just another kind of high....enjoy!
I hear this phrase amongst a certain socioeconomic class. I used to hear it a lot when my husband was in academia...
In their case, as in yours, it's said in a manner that presents itself with a sense of objectivity, but really, one communicates disapproval or reproach. I also understand from previous discussions how you really feel. Don't even bother with the pretense.
But to answer the question: ABSOLUTELY. My 2016 goal was to pay off the mortgage on July 5 and have a remaining balance of $30k or so. That's about as much liquidity as we ever keep anyway.
Ahh...now that I'm reading the rest of the thread...the lady doth protest too much (sorry, not trying to be academic). You keep denying the anxiety you repeatedly admit to. Either you can't stop crowing about your good fortune or you're trying to allay your own anxieties. And any time someone points it out, you can't help but try to persuade them otherwise. You're not comfortable...you've said it yourself.
And congrats OP - you're on a great track - just don't go overboard.
Just wanted to share my excitement about paying off my house this week! I made the wire transfer last Friday and received confirmation this week that everything went through correctly.
For me I decided to do it for a couple of reasons. I'm 37 and maxing out a 401k, IRA and HSA, so I have a good chunk of money already going into equities. Of course stocks look a little rich and most indications are that we're going to have to settle for lower rates of return over the next few years. Knowing those things, I felt comfortable throwing the extra money at the house. I realize I might miss out on some extra growth that I could have earned by stretching the mortgage out to its full term and investing the difference, but I paid it off start to finish in 5 years so that difference will be small since I can now start throwing the leftover money into investments.
*No I don't make 250k or anything crazy. I'm not as extreme as Mr Money Mustache, but his inspiration to live on significantly less than I make is largely what helped me get to where this was a possibility and I recommend him along with Clark Howard for anyone who wants to get ahead.
Congratulations!! I am sure you will find solace in your new monthly cash flow; it does give you options. Again, congratulations!
Greatest feeling in the world. Being 100% out of ALL debt and owing nothing is true freedom. I congratulate you!
Having a paid off home really saved my bacon during the recent economic events. I was laid off in 2009 and did not find suitable employment for a couple of years. I don't know if I would have made it if I had a mortgage payment hanging over my head.
No I congratulated the OP well before that response. I'm not against paying off your mortgage but there are some potential risk to it
Not if you also have other money.
Congrats, op!
I wanted to have a burning party, but then I realized it might be obnoxious.
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