Posted by Ronald * Starr(in No CA) on December 08, 2001 at 24:48:14:
Mike Lively–(AZ)----------
You state: ‘My wife keeps whining something about “Peace of Mind” what’s that all about,anyway?’ Something you should be paying attention to if you want to stay married, I’d guess.
About seven or eight months ago I went into a long discussion on this topic. Here, I will just recap.
If you can make investments that pay you a higher rate of return than the loan interest rates, you will be better off financially to put the “extra” money there. By the “extra” money, I mean money beyond what is necessary to make the minimum payments on the loans. However, this is only the financial anlysis of the situation, it does not take into account the emotional response.
There are people who are very nervous about being in debt. I don’t think this is logical. But it is emotions. In my opinions it is emotion based on a false view of what is happening and could happen. I think that a person who thinks and feels this way can change themselves if they are willing to review the situation, recognize why they feel the way they do and recognize what the fear is about, then change the perceptions of the situation. They might need people to talk to about their thinking to clarify it and perhaps correct it.
Most often, I think they fear losing the property on foreclosure. If you can allay this fear, that may be all that needs to be done.
My argument is that one can build up more assets with the “extra” money. If one got into financial trouble, one could sell or refinace the added investment assets and then use that to aleviate the problem which threatens to cause a foreclosure.
Good Investing and Good Financial Counseling*************Ron Starr***********