Do you always lack money at the end of the month?

[Stormspark]

Nope...I haven't paid attention to paydays for a couple of years now. But I've certainly been there in the past. Living paycheck to paycheck sucks and I'm glad I don't have to do that anymore.

[Deleted]

There is not really a need to amortize (or not to take out loans) if you got a situation when interest rates are favorable. Then you will see a net loss burning savings, incomes and capital at being debt free. Instead, you can borrow cheaply and allow your savings to work and generate returns, making you richer, net.

You can of course pay down mortages if you are unsure of the value of the security (such as the home) and the market value (bubble).

But being against loans on principle is wrong. If the interest rates changes and your loans becomes more expensive, you will hopefully have both fiscal space in your budget to cover increased expenses and savings that you can use to pay down debt.

I'm not saying I'm against loans on principle at all - cheap debt is great: it's just that I'd need the savings interest rates to be over 5% to be beat overpaying interest costs from my mortgage. Getting that level of return at the moment is twicky.