The three most important things about real estate are location, location, location. If we broaden that out to all financial decisions, I think the three most important things are goals, goals, goals. If you don’t know what you’re trying to achieve with your money, it’s hard to know how to get there.
We all have different financial goals in life. Some people are working hard to give their children an ivy league education and buy a house on Lake Minnetonka. Some people want to retire at age 35. Some want to leave a giant legacy for charity.
Those different goals lead to very different financial choices. I paid off my mortgage in my 30s because I want more flexibility in my monthly budget. I have friends my age who took out as much mortgage as they could afford at record low interest rates. They are more concerned with maximizing their wealth. Both are good decisions.
The next time you compare financial decisions with someone at happy hour, make sure you share your goals. Otherwise, one of you might give the other one bad advice.
About the Author: John O’Connor
Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.