Questions Regarding my Real Estate Strategy

[Michael Moreno]

Dear Community,

I hope this message finds you well. I'm currently faced with a financial dilemma and would greatly appreciate your insights and advice.

Background: I am 23 years old and earn a monthly salary of $3992.00. While I am committed to aggressively paying down my debt, particularly my mortgage, to achieve financial freedom in 12 years, I find myself losing money every month due to my repayment strategy.

Financial Breakdown:

• Monthly Income: $3992.00
• Mortgage Payment: $1608.86
• Additional Mortgage Principal Payment: $1000.00
• Furniture Payment: $500.00
• Water Softener System Payment: $370.00
• Investment Contributions:
  • Coinbase: $500.00
  • Schwab: $500.00
  • TD Ameritrade: $812.50

Current Mortgage Status:

• Remaining Balance: $249,000.00
• Interest Rate: 4.875%

Dilemma: While I aim to invest in various accounts and accelerate my debt repayment, I am burning through my cash at a faster rate than anticipated. I am banking on a promotion in the fall, but without it, I fear I may run out of funds.

Question: Given my situation, what strategies would you recommend? How would you manage finances and investments if you were in my shoes?

Thank you all in advance for your invaluable advice and insights.

[Chris Seveney]

@Michael Moreno

1. Do not pay down your mortgage - save that money and invest it. You can find investments greater than 7% (needed because taxes to offset your 4.875 mortgage rate)

So paying down your mortgage traps that equity whereas investing it and making it liquid gives you more flexibility

That I the first thing I would do.