Balance act with repaying
I RECENTLY had an interesting conversation with my Baby Boomer father who was telling me now is the time to pay more off a mortgage.
Yes, he is totally right and I entirely agree, however where is the balance point?
Typically, those in their 20s are finishing their studies, take a gap year or travel periodically and work hard to save a deposit.
They then buy a property, spend too much money on a wedding (being fancy seemed like a good idea at the time) and in their late 20s some decide to start a family.
We are all different, but to generalise – that is the usual change of events.
I have just hit 30, there is a toddler running around the house and I am finally getting back on my career track.
I simply told dad that “extra money” was not typically easy to find in this chapter.
Here’s the difference though between my parents’ generation and mine – they increased their income to pay off their loans quicker.
Generation X and Y more often than not have the “pay-itoff-later” mentality, rather than flogging themselves in a second or third job. I’m not saying one way is better than the other but I do feel slightly guilty now if we go out to a restaurant for dinner or if I order a couple of cocktails with the girls.
According to dad: “You just didn’t do that in our day”.
DIFFERENT VIEW: Generations X and Y have a ‘pay-it-off-later’ mentality.