Reply to Family of 5, appx $300K HHI - would you do anything different?

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[quote=Anonymous]We prepay our mortgage too, and my husband is a financial advisor/CFP with an MBA, so I don't feel like we're idiots for doing that. Part of it is psychological, yes. But it's not just about the feeling of safety . . . it's also using your psychology in a positive way. If you aren't spending that money on your mortgage, you might just spend it on unnecessary stuff, and then you'll really never get ahead financially. It's important to recognize that maximizing returns isn't the only factor . . . it's also important to mitigate risk (risk of job loss, etc.).

That said, I agree that it doesn't make sense to focus on this when you have student loans. Pay those off first. If your spouse can't completely give up on overpaying the mortgage, then propose $1000 extra to the mortgage and $600 extra to the student loans.

Re personal spending . . . We've recently implemented slush funds. Again, it's working with your psychology. I'm less spendy that my husband, so he's merrily buying himself whatever he wants and I'm debating the $39 Amazon dress like you are. So the slush fund helps him spend less and me spend more. Let's be honest, I donated some of mine to the PTA, but I also took my kids to Disney World, so there's that. And I bought myself some expensive shampoo.

I also agree that the kids' activities seem excessive, not just financially, but time/energy wise.

Good for you for wading through everything to get to the bottom of your financial situation! [/quote]

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