Every conversation that I have had discussing the benefits of buying versus renting has eventually turned to the Mortgage Interest Deduction.
(What? Doesn’t everyone have those conversations? Just me?)
If you itemize deductions on your tax return, the Mortgage Interest Deduction allows you to deduct the interest that you pay on your mortgage from your income. This ultimately lowers your taxes and, in turn, your cost of home ownership.
This perk is often mentioned to me as a key reason for buying a home rather than renting.
There are a number of reasons why I disagree with this approach, but today I want to explore one in particular.
The Mortgage Interest Deduction could be gone soon.
Everybody is always looking for ways to make more money.
The Internet abounds with articles about side hustles and negotiating raises. There are entire television channels devoted to following stock market investments. Being a co-host of a show about angel investing can help catapult you into consideration to be a vice presidential candidate.
But from what I’ve seen and read, it looks like most people are taking a scattershot approach to making more money.
People try a little bit of this and a little bit of that. They jump into a side hustle and then when that doesn’t work they try another.
Like most other things that I talk about, I think it makes sense to look at earning money in a more systematic way. If we really want to make more money, we should understand the landscape.Continue reading “How to Earn More Money”