Bang for your buck

People often wonder what gets the most bang for your buck, paying off debt or investing for the future ? Well I think it all boils down to which will give you the greatest return. It is best to look at the costs of your debts, do you just have a mortgage with a rate below 5% or do you also have a line of credit, credit cards and a vehicle loan.

If you can generate a greater return in the market higher than what you are paying to service your high interest credit card debt then by all means invest it in the market. However unless you are Warren Buffett, George Soros or Ray Dalio you should start by paying off your high interest debts before investing in the market.

There is one thing to consider before you put your tax return, your bonus or your big commission towards paying off your debts and that is have you set up and funded your reserve fund? It is important to have a reserve fund with at least 90 days of your living expenses as this will prevent you from falling into credit card debt if you hit a rough patch in the future.

Today I am thankful for a quiet house and the sound of rain, discovering new music or music that I have not heard in a long time by using auto play from Apple Music and for the kind words from clients.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here