Inevitably, the leveraged investors will quickly point out that you can make more money in the stock market or with (further) leveraged real estate investments
Well, I’m here to say that the correct answer for one person may not be the right solution for another. After all, personal finance is personal.
I’ll also point out that there is very little risk in paying off debt so the comparisons that are often made are not apples to apples.
When you add up all of your anticipated monthly expenses, these are called your fixed expenses. With each increasing fixed expense, you have locked yourself into a monthly required income that is higher with each expense.
Lowering those fixed expenses through paying off our debt doesn’t just provide freedom. It also provides a lot of cash flow, which has some very real benefits, too.
I remember being a medical student or resident and having a car repair. It was painful. I’d have to check the bank account to see if we had enough money to pay for the expense.