Should you repay your home loan before you start investing?
What is more important: repaying your home loan or investing? If you don’t need to repay it in full before you begin investing, should your home loan balance be below a certain amount before it is safe for you to invest?
Watch the below 4:45 minute video to learn about the 3 questions you must ask to work out if repaying your home loan is your most efficient financial strategy.
In my experience, many people over-estimate how important it is to focus on repaying their home loan as soon as possible. In fact, doing so could be costing them a lot more money (in terms of missed opportunity). Of course, for some people, it’s the right thing to do… but not for everyone. The above 4:45-minute video sets out the three questions that you must answer to help you work out if repaying your home loan is your best financial strategy.
In my experience, clients that focus on home loan repayment as a priority are doing so more out of “emotion” than practicality. Emotional financial decisions rarely result in the most optimal outcome. In fact, they almost always result in mistakes. Set aside your “emotions” or “preferences” for a second and watch the video above.
If you have any questions or comments on any of the videos, it would be great to hear from you.