Not everything we learned in school about money is right. Well, maybe it was true with regard to our allowances, but things are a lot more complex in real life.
Here are some money myths you’ll be financially healthier without:
Myth #1: Pay Off Your Home Loan as Soon as Possible
This is one of the most dangerous and yet common pieces of financial advice around. It is often made by people who don’t understand home loans or who have very limited experience with long-term financial planning.
Why is this a bad idea? Consider this:
Say you have saved up $100,000 after many hard years of work. Your house is almost paid up; there is just $110,000 of outstanding debt. Because you believe in paying the home loan as soon as possible, you decide to empty your savings into paying off the debt. After doing so, you will owe just ......