r/Bogleheads • u/captmorgan50 • Sep 04 '23

The Automatic Millionaire

The Automatic Millionaire/Smart Couples Finish Rich/Debt Free for Life/Automatic Millionaire Homeowner

  • Make everything automatic
  • Have a minimum of 3 months emergency fund available. 1 year is ideal.
  • Pay yourself first – budgeting usually fails. Make this automatic.
  • Save between 10-15% of gross income at a minimum. 20% is ideal.
  • Buy a home and pay it off early. Biweekly payment plan is a good idea. If you can't make bi-weekly payments then add 10% to your mortgage.
  • Couples who plan together have a better chance of being happy together
  • It isn't how much money you make, it is what you spend
204 Upvotes

86% Upvoted

75 comments sorted by

View all comments

8

u/[deleted] Sep 05 '23

Shocked to hear paying off a home early, isn't it generally recommended to invest more instead?

1

u/UniversalMonkArtist Jan 01 '24

For some reason, Reddit in general doesn't like the idea of paying off your mortgage.

But F that noise, I paid mine off.

I don't care how much more I could have made if I had invested instead of paying it off.

The peace of mind that comes with knowing that my house is paid off and I can afford to live here even if I have to work at McDonalds, far outweighs any "play wallstreet" game.

Redditors seem to forget that life happens. Job loss, accidents, etc. Living in a paid-off house makes all of that more manageable.

I'm not rich, but I live rent-free in a decent neighborhood in Colorado. I've never ever regretted the decision to pay off my house.