Comments on: The Myths of SAVING Money? http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/ Tips to Achieve Financial Freedom and Retire Wealthy Thu, 18 Mar 2010 08:05:13 +0000 http://wordpress.org/?v=2.7 hourly 1 By: David Adison http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/comment-page-1/#comment-737 David Adison Thu, 16 Nov 2006 11:28:15 +0000 http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/#comment-737 Very entertaining issue. I haven't heard of this one. It will be necessary to visit you on a thicket! ???? saved so much money at the sale that I can retire???? cool, shopping also can make us retire! --this is not new to me :) Very entertaining issue. I haven’t heard of this one. It will be necessary to visit you on a thicket! ???? saved so much money at the sale that I can retire???? cool, shopping also can make us retire! –this is not new to me :)

]]> By: Todd Derscheid http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/comment-page-1/#comment-708 Todd Derscheid Sun, 05 Nov 2006 16:42:34 +0000 http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/#comment-708 I'll second the warnings on #3. We went down from a 6.5% mortgage through a conventional bank to a 4.5% mortgage through a credit union. We had been paying extra on it in the 2.5 years since we got it, and we had a 15-year mortgage to start with. Our credit is also stellar, so we paid very little to refinance and should break even in a few years. Also consider that if a homeowner resets their mortgage clock (from 12 years back to 15), they can drop their payment and direct freed-up money into either paying down the other loans, or putting money into 401k or Roth IRA. Of course, this also presumes that you didn't buy too much house in the first place! I’ll second the warnings on #3. We went down from a 6.5% mortgage through a conventional bank to a 4.5% mortgage through a credit union. We had been paying extra on it in the 2.5 years since we got it, and we had a 15-year mortgage to start with.

Our credit is also stellar, so we paid very little to refinance and should break even in a few years.

Also consider that if a homeowner resets their mortgage clock (from 12 years back to 15), they can drop their payment and direct freed-up money into either paying down the other loans, or putting money into 401k or Roth IRA.

Of course, this also presumes that you didn’t buy too much house in the first place!

]]> By: Duane Gran http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/comment-page-1/#comment-631 Duane Gran Mon, 02 Oct 2006 15:24:01 +0000 http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/#comment-631 Good points, however myth #3 may at times reflect reality. Back around 2002 many people were refinancing from 8-10% loans to 5-6% and were able to save hundreds of dollars per month in payments. Granted, they reset the mortgage calculator to 30 years, but a disciplined investor could put the extra money to work and come out ahead. The other issue is the transaction cost to refinance. Supposing one would save $200 per month, but the refinance costs $2500 in lender and lawyer fees, it would take about 13 months to break even. For most people this is probably a good deal if they stay put for a while. Good points, however myth #3 may at times reflect reality. Back around 2002 many people were refinancing from 8-10% loans to 5-6% and were able to save hundreds of dollars per month in payments. Granted, they reset the mortgage calculator to 30 years, but a disciplined investor could put the extra money to work and come out ahead.

The other issue is the transaction cost to refinance. Supposing one would save $200 per month, but the refinance costs $2500 in lender and lawyer fees, it would take about 13 months to break even. For most people this is probably a good deal if they stay put for a while.

]]> By: DEBTective http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/comment-page-1/#comment-613 DEBTective Tue, 26 Sep 2006 15:58:56 +0000 http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/#comment-613 Great job on spreading the truth about saving money, baby! Saving the dough starts with the joe or jill in charge of it. When they decide to get on a budget and live on less than they make, THEN they are saving moolah! Here's looking at you, kid ... great job! Great job on spreading the truth about saving money, baby! Saving the dough starts with the joe or jill in charge of it. When they decide to get on a budget and live on less than they make, THEN they are saving moolah! Here’s looking at you, kid … great job!

]]> By: Harrison http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/comment-page-1/#comment-611 Harrison Tue, 26 Sep 2006 13:05:11 +0000 http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/#comment-611 ???? saved so much money at the sale that I can retire???? cool, shopping also can make us retire! :-) ???? saved so much money at the sale that I can retire???? cool, shopping also can make us retire! :-)

]]> By: Jeff Plumb http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/comment-page-1/#comment-610 Jeff Plumb Tue, 26 Sep 2006 11:51:08 +0000 http://www.finandom.com/blog/2006/09/26/the-myths-of-saving-money/#comment-610 I love myth 2: If I buy something on sale, I????m saving money! In fact, a good friend of mine has a saying, "I saved so much money at the sale that I can retire". I love myth 2: If I buy something on sale, I????m saving money!

In fact, a good friend of mine has a saying, “I saved so much money at the sale that I can retire”.

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