whether your home costs $500,000 or $2 million. A 30-year loan on $270,000 at 6% requires an initial monthly payment of $1,618. With this technique, you would also write a second check for an extra $270 — next month’s principal balance — a very small number, relatively speaking. That second check of $270 is money you’ll never pay interest on. To be clear, you’re not paying extra money; you’re simply prepaying next month’s principal a touch sooner. Hold yourself to this pay-it-forward strategy each month, and, again, you’ll be able to pay off a 30-year mortgage in just 15 years — cutting the total cost of your home by close to 50%.

So here’s the kicker: with the state taxes we’re saving every year, we are literally paying off our entire new home in six years! Did you catch that? We’re paying for our entire home out of the tax savings we now get as residents of the Sunshine State instead of the Golden State. Kind of makes you think we should have done it sooner, huh? Better late than never.

A person who pays with their time now is more likely to pay with their money later.

As taxpayers we gave one of Warren Buffet's companies, in 2006, an interest-free loan of $665 million dollars, and he only has to pay half of it back 28 years from now. ...Imagine ...you bought a house in 1980 at the price in 1980. Up until now you haven't made any payments on the house, and this year you have to pay half in the... dollars you agreed to back then, no adjustment for inflation. Do you think that alone might make you a wealthy man?

Figure it out. Work a lifetime to pay off a house. You finally own it, and there's nobody o live in it.

"Safety of principal," yes—that is the first essential. But what is "principal"—is it merely the obligation of some sound organization to repay a certain number of fluctuating measures of value at a future date? What if, at the date of repayment, the measure has shrunk to one-half of its present size? Has the principal been safeguarded?

Figure it out. Work a lifetime to pay off a house. You finally own it, and there's nobody to live in it.

Traditionally, someone would purchase an apartment, struggle with maintenance, managing tenants, and end up with a payback period of almost 20 years,The stress of managing these properties reduced the attractiveness of such investments.

The big celebration, the wedding or housewarming, takes place not when the debt is discharged, but when it is undertaken. What is emphasized on TV, for example, is not the middle-aged man who has finally paid off his mortgage, but the young man who moves into his new home with his family, proudly waving the papers he has just signed and which will bind him for most of his productive years. After he has paid his debts — the mortgage, the college expenses for his children and his insurance — he is regarded as a problem, a “senior citizen” for whom society must provide not only material comforts but a new “purpose.

Work a lifetime to pay off a house. you finally own it, and there's nobody to live in it.

It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world.

Work a lifetime to pay off a house. You finally own it, and there's nobody to live in it

Our debts don't leave us much in terms of choices. We can choose to pay now or try to pay later. But the longer we wait the steeper the bill

Want to see how the investment income changes with a change in principal? Simply divide the figures by the change in principal. With a $20M portfolio (twice the principal) just multiply by two: instead of $40,000/month, you’d receive $80,000/month and $1M per year. With a $1M portfolio, divide the results by ten: instead of $40K per month, you’d live comfortably passive on $4,000/month and nearly $50,000/year.