Deploy Your Knights

The  sovereign sent knights into strategic foreign lands for gain, which is the same reason you place money into strategic investments. Experienced investors use three criteria to evaluate investment opportunities:

  1. How liquid is it?  (Can I get my money back when I need it?)
  2. How safe is it?  (Is it guaranteed or insured?)
  3. What rate of return can I expect?  (How hard is my money working?)

Home equity falls short in all three criteria.  Until you sell your home, the equity is just a number.  Too many people are trying to pay off their mortgage early, while giving up more important opportunities. Often, there are more important priorities than paying off the mortgage – so decide what goals are most important and achieve them first.

Lesson Four: Paying off mortgage debt is not the same as accumulating assets.  Paying off your mortgage is a goal, but not the most important goal.  Prioritize your goals to achieve the most important ones first. Let’s put it all together.