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.
Continue reading “Don’t Bank on the Mortgage Interest Deduction”
A lot of people set resolutions to save more money. In fact, it was the third most popular resolution for 2015, behind only “lose weight” and “get organized.” But as we’ve noted before, only 8% of people successfully achieved their resolutions. So how do we go about making sure that we are the select few who actually do save more money?
Do you focus on the Latte Factor and cut out your daily coffee? Do you drive around in search of the best deals or spend your Sundays clipping coupons?
I would argue that if you want to save the most money, you need to first look at the areas where you spend the most money. Continue reading “Saving Money Better – Focus on the Big Wins First”