Recently I chanced upon some YouTube video of Dave Ramsey. In each video, there will be listeners who call in to ask for his advice on their debt problem.
There were times where listeners told of their debt of 300k against annual income of 80-90k and Dave would said that their debt levels are very scary.
When I think about my own situation, I too am in this same situation but I didn't think I was in that bad a shape.
This kept me pondering about myself. I always had this thought that if I ever made enough money, I would go buy a large condo and live there. But after listening to Dave Ramsey, I realised living with a peace of mind without having to worry about my debts is more practical. I remember him saying (cant recall exactly his words though) why do you want to spend money that you don't have, to impress people that you don't know and don't care about you.
This is so very true. I ditched my idea of buying a condo, and will focus on repaying my housing loan.
My loan is 300k, 20 years. MI is 1559, fully financed with cpf. 4 years fixed interest rates. I intend to pay off my loan in 13 years. At the end of 2021, I would have 266k loan left with about 100k in cpf increasing at at annual of 10k. At end of 2031, I should have 200k in my cpf. And I will pay off the rest in cash.
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