• III - Interest,  IV - Investing

    Pay off your debts before investing in the Stock Market

    Ever build one of those mortgage spreadsheets? Take your interest rate, the term of the mortgage, your payment, and plug it all into a spreadsheet to see how it amortizes over time? It’s a pretty good exercise. Here is the key step—open that spreadsheet and add up the interest you will pay over time, assuming you don’t make any prepayments. The answer will probably blow your head off. For example, on a $250,000 30-year 4% fixed rate mortgage, you will actually pay about $430,000 in total over the course of those 30 years. Every butthead reading this is like, “But you get to deduct that from your taxes!” I have…