It is common for those practicing simplicity to be misunderstood and to have the majority of society disagree with their choices. I mentioned in an earlier post that I chose to step out of the management track at my company in exchange for a low-stress position with no management responsibilities. Although I did not take a pay cut, I will forgo future salary increases associated with promotions. I expect to continue to receive annual merit increases and performance bonuses. My friends were aghast with my decision and couldn't believe I'd pass the opportunity of having a prestigious title at my company. Well, I did pass on it. And I'm glad.
When I revealed my decision on this blog to pay my mortgage off early, I received a few comments from readers stating that I'm basically leaving money on the table by not considering the impacts of the mortgage interest tax deduction or the very low interest rate of my mortgage. And in response to that, I completely agree! In the short term, yes, this is costing me money. But in a quickie analysis I did, if I am able to maintain $10,000 per year in extra principle payments, I will pay off my mortgage in approximately 10 years and eliminate about $100,000 in future interest payments. In 10 years I will be 47 years old and will be mortgage-free. The opportunities this will offer will be amazing! I might decide to quit corporate America at that point and take a part time job. Or maybe I will buy a new house and keep my condo as investment property. By going against the grain and keeping my sights on a long-term goal, I will have many future opportunities.
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