Tuesday, November 20, 2012


I was doing a little light reading when I found a scholarly article that showed that people under emotional duress make financial decisions with less consideration of the long term. And I can back this up with my own thoughts: I want to pay off my house in the worst way. It's not the "smart" thing to do, because the interest I pay (currently and for the foreseeable future) are tax deductible (Uncle Sam gives me a credit/refund for that). But I can't shake the feeling that, what if I die? What if my spouse dies? Eliminating that burden would be great, so if that happens, then the monthly costs would be very manageable on a modest income.

So, here's my plan. First, I will paydown our credit cards, then beef up the emergency savings, then, and only then will I snowball into the "good debt." I KNOW a lot of the money people think it's stupid to pay off a house early. I know some very fiscally conservative folks to feel this way too. I also know that when that debt burden is paid off, should something untoward happen to me, there will be many more alternate plans that will accommodate our needs.

And, now that I have a plan, it won't drive me batshit crazy.