27, married and semi-obsessed with retiring early

[Outtahere]

I paid off my mortgage last year, it was a great feeling to not have that debt or any debt for that matter.* All that money was directed elsewhere like 401K, money market funds, a new account at Emigrant Direct.* There was no way I wanted to fall into the trap of having that money to play with every month.

[Nords]

Originally Posted by brewer12345

Its 3.9% money for another 4.25 years.* I'll be getting a bonus in January that will dump more than enough cash in my lap to kill the loan.* This is my mst expensiive debt, and its pretty cheap money.* Hmmm...

Geez, brewer, if you've been paying the loan from cash flow so far, then wouldn't you want to dump the bonus into a 4- or 5-year CD (or even a short-term bond fund) and keep paying the loan?

[bow-tie]

Originally Posted by brewer12345

The problem with both the spending discipline and the feeling of freedom is that you are potentially letting emotions drive financial decisions.* Usually not the greatest way to get ahead.

You're abosolutely right, Brewer.* But it seems to me, people being people, that emotions are the order of the day.* So much volatility in the markets is driven by not fundamentals, but fear and greed.* Fundamentals may win out long-term, but oftentimes, here in the now...

I consider myself rational and level-headed when it comes to monetary decisions, but I'm busting butt to pay our house off early.* It's "good" debt supposedly, but the feeling of being debt-free will totally rule.* That combined with the financial flexibility a paid-off mortgage allows.

[brewer12345]

Originally Posted by Nords

Geez, brewer, if you've been paying the loan from cash flow so far, then wouldn't you want to dump the bonus into a 4- or 5-year CD (or even a short-term bond fund) and keep paying the loan?

Yes, except its not all that dfferent from taking a 0% credit card cash advance and plowing it into a savings account, and I can't be bothered to do that either. *And iftruth be told, cash flow could be a bit richer on a month to month basis.

[Nords]

Originally Posted by brewer12345

Yes, except its not all that dfferent from taking a 0% credit card cash advance and plowing it into a savings account, and I can't be bothered to do that either. *And iftruth be told, cash flow could be a bit richer on a month to month basis.

Yep, then you're absolutely right. And you'll sleep better at work night, too.