Should You Save, Invest or Pay off your Mortgage in 2024?

This video looks at how you should use your money in 2024? Save, Invest or Pay off your mortgage. It's a tough decision, what are you going to do?

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[presterjohn]

We paid the mortgage off. The security that gives you against change can't be underestimated.

[cainsd]

For us our priority was to pay the mortgage off, with a target by the time we were 45 which we achieved. At the same time we used the cheap interest rates over the last decade to take loans and completely do the house up completely. In March 2020 we hit all our goals and now are heavily investing through contributing into our work place pensions and S&S ISA's. We have zero debt and also as we have got older our income has peaked due to the natural career progression. The key thing now is not letting lifestyle creep come in as we have spare income, and invest it through our work place pensions utilising the tax benefits and company contributions. Fingers crossed our next target will be retirement at 55. However if it doesn't go to plan, we sleep easy knowing we will always have a roof above our head. For us the piece of mind and zero debt is priceless.

[xunlxct]

I’m debt free including home I love the weight lifted off me I don’t have to stress about making money and we now go on 4 holidays a year .

[tridau]

Still investing each month but with remortgage approaching we are putting a small amount each month into a high interest savings account (rather than overpaying) in order to pay off a chunk at remortgage and get that loan to value ratio down. Makes sense to get 5% on the cash until that time rather than overpay mortgage at 1.6%. By keeping it out of the stock market we are guarding against short term market shifts around remortgage time.

[FinancialFinesse]

Thanks Tony for this valuble and informative episode you have a very interesting perspective direct to the point and concise keep the gems coming

[TomsPersonalFinance]

Great video to the start the year, Toby. Happy new year 😊

[billymasters]

2.5 percent interest rate on my mortgage here in the US and it wont go up until the loan is paid off (18 years from now because we took a 30 year mortgage). I have been considering paying off the mortgage early because of the peace of mind that would give me, but decided to invest it instead. Just last year, I made 9.6 percent interest on the money I would have spent to pay down my mortgage and there is no doubt that I made the right decision. Thank you for taking the time to make this video and including multiple scenarios to appeal to a broader audience!

[valerienewbatt]

Happy New Year Toby. Great videos as always.

[gkhan]

Agree in that whilst it doesn’t make financial sense to pay mortgage off early especially if you’re fortunate enough to have a low rate, the feeling of knowing you’re bringing that mortgage term down and potentially bringing yourself into a lower LTV when it comes to remortgage is a big emotional relief factor. Not always black and white like a lot of people make out. We’re human after all. Good info and perspective as always!

[SombhooG-xdbq]

happy new year Toby! another great video

[ianashelford]

I am trying to strike a balance between saving (for rainy day, planned repairs for car/house), investing and paying off the mortgage early. Hopfully attacking each equally all at the same time!

[andyburton]

Happy New Year to you and your family Toby 👍

[Abdul_Rahman]

I’m a simple man. Here’s my top tips to be rich.
1) I invest into a SIPP to protect my money from MYSELF!!
2) I SEE a Toby Newbatt video, I simply click.
3) I only drink in whether spoons.
Happy new year

[magoo]

For those still on low % rate mortgage deals and who want to pay the mortgage off early they also have the ability to save now with the higher savings rates and then use the extra gains to pay off a lump sum when their fixed term ends on their mortgage giving them the best of both worlds and bringing them even closer to that goal. Seems far better than paying overpayments and gives people the ability to access it in the interim should an emergency arise - could even use the extra gain to pay for a holiday and still make the same total overpayment at the end of the fixed term.

[brianturvey]

Happy 2024 Toby good subject to start year and thank you for shining light on savings and interesting mortgage pay off v investing question. With Bitcoin halving next year and possible SEC authorisation of Bitcoin and Ethereum ETF in the next 2 weeks, I am taking chance on high risk Alt coins crypto to pay off 2 mortgages (fingers crossed !)😊

[TheCompoundingInvestor]

Very informative. Great work Toby and Happy New Year!

[JohnBowman-utdz]

Hi great video you explained this very well as you said it all comes down to the person being happy with the level off det they are leverage.but it can go very badly if they get to greedy it can be a bit like gambling you can get carried away and you only see what you want to see.thanks John.

[manapause]

If you pay the extra money you have towards your mortgage it does leave you with less flexibility if you need that money for some life event. Even beyond making sure you have an easy accessible savings pot for emergencies. Would be the dream to be mortgage free though!

[meinages]

I'm going to start to overpaying the mortgage and continuing investing I think, only a £150 in each, each month. Just to try and get my money working at both ends of my finances. Thanks for a great video.

[theYoutubeHandle]

depend on the valuation. If the stock market is in a bubble, then I would suggest to pay off the mortgage first. How do you know if stock market is in a bubble? I would sugggest put some towards mortgage and some towards investment depend on how likely you think there is a bubble.