CastleShave
Legendary Member
This is a very complicated question that is very much dependable on your current situation and the whole picture in mind. Things you need to take into account are. Age, income, debt, self employed or employee & commitments. If I had to answer this blind you will never get an accurate answer. Having a mortgage is not a bad thing, having no equity in your mortgage is a bad thing. Mortgages drive you to work they keep you alive and the fuel the constant purpose to your life. I understand they are called mortgages for a reason. In Italian Morto means death in other words pay till you die. That’s fine, what if you can work your mortgage and leverage it on another property and become a landlord? Being a landlord could be your most lucrative business if you have enough equity in your home. The reason I say this is that if the equity is sufficient enough you may be able to capitalize on a Lower rent to optimize a profit in your rental property. The last thing you want to do is leverage luxury!
Another way to save would be to invest in a non registered cash account/ retirement savings plan that is not registered to your government. If you are self employed this may not be a good strategy (or if you are over 55 yrs of age) as you may want to capitalize on write offs but this can work as an account you can’t touch with 25% of your leisure money being deposited directly in. It is much harder to obtain your money from these plans which forces you to save, it will also generate an interest that can be more or less guaranteed if invested in segregated funds. When doing so make sure you understand MERs and Front & Back end loads.
Saving is ultimately possible the key is to start the hard part is not to stop!
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