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63. Pay Off Your Mortgages

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Average people feel entitled to rest after working 40 hours per week. This entitlement is for wimps. You can easily enjoy a full rich life working 50 hours per week, divided into 40 hours to pay your bills and 10 hours a week for your investment funds.

Initially, you will be saving money for your down payments. Later, you can use the money for accelerated debt reduction.

Over time, your debt service will gradually shift from interest payments into principal reduction building your equity. If you take out 20-year mortgages, fixed rate if possible, your mortgage debt will be zero in 20 years or less.

Paying a mortgage is a forced saving account. Every month you pay your principal and interest and reduce your mortgage obligation. Every April, you reduce your tax obligation with your interest deduction. Over time, properties appreciate in value adding to your equity wealth. Do this. Repeat x 6.

Many tenants will be spending 25% - 40% of their gross incomes on rent. Or, the government will be subsidizing them. This will be money coming to you. Patience. You will have many years of enjoying a substantial cash flow, as will your children, grandchildren and great-grandchildren. Thank you, Grandpa. Thank you, Grandma.

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