How to be mortgage free after 8 years

investorblogger

The battle for financial independence has almost never been about how much money you make, but how much you keep from whatever you earn.

It's as easy for rich people to blow their wealth as us ordinary ones. In fact it may be easier, given the luxuries that higher salary earners get used to.

Also, careful reading of "The Millionaire Mind" and such like books really helps to open your eyes to the meaning of wealth. Worth a good read.

Kenneth

kondormid

The battle for financial independence has almost never been about how much money you make, but how much you keep from whatever you earn.

I fail to see how a person on high income has to spend more than a person on low income.

If high income familly cut back to the bear minimum on their spending and I mean bear minimum as the OP did then surely they would have more spare cash to throw at a mortgage than a low income familly that also cut back to the bear minimum.

Are you living in some sort of special place where wealthy people pay more for their electricity and gas and shopping than someone who is poor?

In the street that I live in they never ask how much you earn when working out how much to bill you.

Two people, both buy a house next door to each other, both house cost 150,000. The first person earns 100,000 a year, the second earns 15,000. They both cut back to the bear minimum and spend the rest on the mortgage.
Which one do you think will pay it off first?

Is it just me???

Also, careful reading of "The Millionaire Mind" and such like books really helps to open your eyes to the meaning of wealth. Worth a good read.

There is always a risk that you can open your eyes that far that they fall out. Much better to close them and think things through me thinks.

Thefunkygibbons

Strictly speaking you are right

But then again, someone from a poor country would think that some one on £15k a year in the Uk was wealthy

The point is, that richer people get trapped into the same type of keeping up with the Jones as everyone else, and the habits involved are just more expensive

I know people who earn more than £100k a year and they manage to spend it all

Simply because their spending habits grew as their income grew

halloweenqueen_2

Well - thanks to this site I found out I was in a higher band than my neighbours- they've made a mistake and willbe refunding me for about a decade of overpayment - will put that towards the mortgage!

halloweenqueen_2

community tax that is!

Thefunkygibbons

Nice, worth a pretty penny I should imagine

investorblogger

I absolutely stand by my statements.

It's never how much you make that is the problem. It's always how much you keep. To fail to see that point makes me think that you would be better following your own advice

kondormid wrote:

There is always a risk that you can open your eyes that far that they fall out. Much better to close them and think things through me thinks.

Here where I live, people on the lowest of earnings give multiple tens of thousands of dollars to charity. Supposedly people on good incomes find themselves upto their necks in consumer debt. And rich people go bankrupt. REGULARLY. And I guess the same is true in many countries. To say this is the rule is absurd, but like I said, Read the Millionaire Next Door. It will blow up nearly all of your preconceptions on who are the millionaires.

chrispyphillips

Fair play, this thread has been going for over a year and is still going strong.

Well done the OP, some good advice, no matter what other people say about it. Theres something there for everyone that may at least enable some people to get their mortgages paid off in at least half the time, or knock a few years off! I'll be trying some of it, if I can get to grips with it <not... enough... hours... in... the... day!!!>

Ladygrim

To thefunkygibbons, well done on your achievements. I have read through all the replies to this post and I wish to apologise for the less than supportive comments made by some. Youve worked hard, raised what sounds like a wonderful family, and youve tried to pass on some very good advice. Unfortunately, some are not ready to think about the advice in its true context.

From reading your advice, I will now look at my incomings and outgoings and stop throwing good money after bad. The only person who can make a difference to my finances is me. Taking personal ownership is the first step to a more secure financial future.

Thankyou once again for your thought provoking advice. Paying that little bit extra to clear the bills will certainly reap rewards in the longterm.

Im gonna be debt free!!

Pauper_Princess

Thefunkygibbons

Don't know if you ever post in here any more, but I'll take a shot anyway!

Read your thread with interest... you're a chartered accountant? I could DESPERATELY use some advice before next Tuesday, if you have time? It's only work-related, nothing exciting :rolleyes:

Many thanks if you read this in time and can help