#19 - Pay Off Mortgage or Invest With @lookingafteryourpennies

The Making Money Simple Podcast

Charlotte from @lookingafteryourpennies joined me on this episode to discuss a very common question - if you have some extra money per month, should you use this to invest more or pay off your mortgage quicker?

First, we talked about the benefits of investing more per month. Conclusively, by investing more per month, you're likely to earn a higher return. This is because the stock market averages around 8% per year over the long term. But, even if this annual average return is much lower at 3% then this is still likely to beat the interest rate you will pay on your mortgage. Hence, from a mathematical point of view, investing is likely to be better.

Second, we talked about the benefits of using this extra money per month to pay off your mortgage quicker. Doing this is likely to be psychologically better, as people don't like debt, even if it is a mortgage. Paying off your mortgage quicker allows you to achieve debt-free status earlier and lifts a weight from your shoulder. Eliminating this large monthly payment also puts a lot more money in our pockets each month.

Charlotte and I then went on to discuss whether we could do both at the same time - and this is exactly what Charlotte does personally!

We then went onto talk about further pros and cons of each approach, as well as looking at - based on certain personality traits - whether one approach or the other may be better.

Listen to the podcast for full details!

-----------------------------------------------

💻 Need somewhere to track all of your investments in one place? https://payhip.com/b/9tB2

📈 How to start investing in 2021 & beyond workshop - https://payhip.com/b/1fic

🎥 Youtube - https://www.youtube.com/c/MakingMoneySimple/

📸 Instagram - https://www.instagram.com/makingmoneysimple/

🐦 Twitter - https://twitter.com/makingmsimple