Ask Paula: Which House Should I Pay Off First?

Afford Anything | Make Smart Money Choices

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Investing, Business

4.7 • 3.6K Ratings

🗓️ 1 July 2019

⏱️ 70 minutes

🔗️ Recording | iTunes | RSS

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Summary

#201: Ross and his wife are both in the Navy. They bought a home while they were stationed in Hawaii. Then the Navy sent them to Virginia, where they currently live; they’ve purchased a home there, too. They kept the Hawaii home as a rental property, and they’d like to move back into it when they retire. Which home should they repay first? Mike is 33, debt-free except for his mortgage, and earns more than $200,000 per year. He saves half of his income. What should he do with his savings? Pay off his mortgage? Invest? Josh has a nervous habit of checking his investment account balances daily. How can he break this habit? Amanda and her husband live in a duplex. They have $115,000 in equity in their home, and another $115,000 remaining on the mortgage. They’d like to move. Should they hold the duplex as a rental? Or should they sell and use the proceeds to buy a cheaper home, with a goal of being mortgage-free? Christy wants to know how to compete with other aggressive real estate investors who are bidding on homes. I answer these five questions in today’s episode. Enjoy! For more information, visit the show notes at https://affordanything.com/episode201 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	You can afford anything but not everything.
0:10.6	Every decision that you make is a trade-off against something else and that doesn't just
0:13.3	apply to your money.
0:14.3	It applies to your time, your focus, your energy, your attention, anything in your life that's
0:17.9	a scarce or limited resource.
0:19.8	And that leads to two questions.
0:21.2	First, what matters most to you?
0:23.2	And second, how do you align your day-to-day decisions around money, time, energy, focus?
0:29.4	How do you align those decisions around those things which matter most?
0:34.3	Answering these two questions is a lifetime practice and that's what this podcast is here
0:37.7	to explore.
0:38.7	My name is Paula Pant.
0:39.7	I am the host of the Afford Anything Podcast every other week.
0:43.1	I answer questions that come from you, the community.
0:46.4	This week, here's what we're going to cover.
0:48.5	Ross is in the Navy and he currently owns two homes.
0:52.5	One is his current primary residence and the other is a rental property.
0:56.3	Which of these two should he pay off first?
0:59.2	Mike is wondering whether he should focus on paying off his mortgage or investing in index
1:03.9	funds.
1:04.9	Josh has developed a habit of checking his account balances multiple times a day.
1:10.3	What should he do?
	...

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