I’ve read more than my fair share of personal finance blog posts during the last three years. I’m sure some of you out there can relate :). One topic that comes up repeatedly is whether it is better to pay off your debts or invest with your extra money. The answer to this differs from person to person depending on their personality and what motivates them.
I think most people would agree that if you have any high interest debt, say anything above 5-6%, then you should take the guaranteed 5-6% return on investment and pay off the debt.
But when your interest rate is lower, say in the 3-4% range it becomes a less obvious choice. Mrs. Dragon and I don’t have any non-mortgage debt, and our mortgage is at 3.65%.
Our goals for FI are $600,000 in liquid assets and a paid off house by Feb 2025.
Each of these is a long road, but we’ve decided to prioritize investing over paying off our mortgage and here are all the reasons why (in no particular order).