> Yeah.. you loose the tax write off... if you have to have debt, it should be in the > deductible form... your house... but still better not to have debt in the first > place. >
WORST reason ever to have a loan...
Since I paid mine off people have said this to me 'but what about the deduction?!' All shocked that I dont have it.
Then I show them the math. Lets say I pay 100% of the payment in interest (at the front of your home loan you are). I get to deduct about 25%. So for 1000 dollars I get to keep 250 of the taxes I paid. For a cost of 750. NOW with it paid off I pay 0 and get to keep 1000 for a tidy profit of 750 a month. There is NO better way to make money faster than keep what you earn. At 3x the rate too.
A 5-7% interest loan over 30 years will cost you about 2x what you originally paid for something.
But if you HAVE to have a loan it is at least worth it to have the deduction... At letting you keep ~25% of the interest you pay.
Another good way to earn money is to find those recurring costs. And kick them to the curb. "its only a dollar" and you do that every day is 365 bucks in a year. Did that with cable (840 a year).
My goal is to fill out the EZ form with the standard deduction. That is free money and less time to fill out. It means I am not paying money to get to 'keep my taxes'.
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Re: So if you had of listened to your Loony Bin Financial Advisor
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