You can disagree all you want Super Realtor - it's not your money or your livelihood. We almost lost our house when my husband, the sole provider of income for our family, was seriously injured and out of work for several weeks.

We won't be in danger losing our house if we fall on hard times again. I have never been comfortable with debt or with risk. Ever. And I never will be.

Not everyone wants to monetize every aspect of their lives. Leaving equity untapped might be a sluggish business decision, but most folks do not want their homes at risk in a leveraged state. It is stressful and requires maintainence and disciplne. In short is adds risk.

If interested in doing this on a low risk level you could borrow against yourself. Assuming you have a mortgage and want to pay it down, establish your own account for overage principal payments designed to balance out your owed principal. Use it as you wish or not at all. Why allow the bank to have principal payments early?

Once the balance of the account matches the principal owed, you will have a choice to make though. At that time you can balance your tolerance for risk and act from there.

That's my whole point in that if something happened to you or your spouse then the income is gone.

Even with a paid off house they only let you refi out to about 75% these days.

So that money would be gone quick if you needed to tap it.

What I am doing is making investments and growing my portfolio to the point where I can live off the cash flow and then some.Then my closings are icing on the cake.

I certainly respect how you want to live and your right it's your choice.I was just throwing out another way for people to think about planning for the future.

I hope your husband isn't in a skilled trade profession that involves labor.As you get older the body wears out and the income and productivity goes down unless you can work up to foreman etc.and just direct people.

I have seen it happen to others before once they reach a certain age.

Our house we bought 7 years ago is actually way underwater.So all I care about is the monthly payment.

My brothers house is paid for and he owns a used care dealership.I guess it's all about preference.My mother-in-law's house is paid off as well.

I would tell her to invest the money and get it to grow.The thought of doing anything with it scares her to death so it sits diminishing by the day in value.

We paid our house off this year (15.6 yrs of payments). Our interest rate was something like 6.125%. Returns on investment haven't been that great and the interest deduction was virutal nil at tax time. I will say hubby is much, much happier, feels more secure that the hugest debt we had is now gone. We pay cash for large expenses, although I woudn't be surprized if, when he needs to trade in his motorcycle (he commutes with it b/c the MPG is extremely good and motorcycles get free, underground parking (a $350 value - would cost him that much to vanpool but vans don't go his way/his time)...so I wouldn't be surprized if he finances the new one for one year - just to keep the credit score up and alive. I'm happy the house is paid off. Despite any good intentions you all have of making your money grow, it could be easily lost too. I just posted this week that I lost $20k this quarter. Normally, I would say I didn't lose something that I never had, but the economy is now dipping into my principle, so, yes, I LOST $20k.

The one thing you always want is a roof over your head. You can't pay your house off if your investment are down, down, down. So, I'm in full agreement with Perky (and Suze Orman) that paying the house off is the way to go. At least, with the house paid off, it's $1,258 we DON'T have to have every month to pay a mortgage payment when we retire. Take out the insurance and r.e. taxes we still have to pay, it still comes out to roughly $12,000/year we DON'T have to worry or wonder where it's going to come from at retirement time.

I agree if you're young and just into your mortgage, leverage may be a good thing, but, many people out there re-financed and cashed out on their homes to buy depreciating junk or just plain junk, and some, even another house (that leverage thing). Those that cashed-out deserve to be hung to dry. It's time to pay back the money THEY borrowed but they don't want to. Why so? Greed, just plain greed. It'll get you sooner or later.

I'm sorry, but I don't categorize my personal expenses with my business expenses. I rarely buy new clothes - only as needed, not wanted. I 'group' all my errands together in one trip per week. I search the cheapest gas prices that are along on my errand route. I stock up on food when it's on sale (got lots of Del Monte canned goods for 75 each - what a sale). Just loaded up on Dr. Pepper (one of my few vices besides a smoke & Mich) at 99 cents for two-liter bottles (got 6 each at two stores on my errand round). I use coupons whenever I can.

I wait until my marketing postcards (design yourself) are on sale (usually 50% off once a year) and I stock up at that time. Buy stuff at Staples when it's on sale.

We try to live like the Millionnaire next door. We live in a decent neighborhood (acreage and homes averaging around $350-525k presently in my neck of the woods). Our truck is 11 yrs. old this year. We have an old MGB but he only paid $1k for it but it runs! I drive 'used' cars, although hubby says the way we keep a car for 10+ years that maybe the next one should be new. Told him we'll buy it the year after it comes out when some schmuck is unhappy with their car so we don't pay for the instant $5,000+ depreciation when you drive it off the lot.

We're just not picky about some things because we don't care to impress someone (we're more impressed with bank accounts). My thinking maybe be wrong (but I don't think it is), but when I see alot of people around here driving NICE vehicles, in a BIG a** house that's got to cost $500-600/mo. to heat & cool I really wonder about their true financial situation...I have a relative who likes to impress, private school for kids, school trips for kids (we're talking over-seas trips via the school), music lessons, dance lessons...she's living high on the hog...but I seriously don't think she can really afford to feed the hog...especially when grandma paid for the school books this year!

It all has to do with buying right for investment property.

For every 1 investor that buys right I can show you 8 to 10 that are idiots that overpay or talk themselves into marginal deals.Then when something goes wrong they go into a negative cash flow position.

When you are multi-millionaire like Susie is you can invest in marginal returns to outpace inflation.

When you are dealing in smaller dollars you need a maximum return to get to where she is at.

Have you thought about taking some money out of the house and buying a triple net lease property?? Easy mailbox money from credit rated tenant.

You can get a loan only putting 10% down because those lenders will take higher ltv's with a credit tenant with less risk.You can hit 7 to 9% annual returns on your money.

I have a few vices, mainly collecting camera stuff (but I use that for business as well as pleasure, 95% of the use is for business, I'd say) and for personal entertainment I buy movies and books, lol.

Like VABroker, we prefer to live a simpler life - yes we have some nice things but I could also very easily slip into a truly rural hick lifestyle if needed - I don't strive to impress anyone. My van is a 2004 and is closer to 200,000 miles than 100,000 - and I expect to easily get another 50,000 - 100,000 out of it before I retire it. I don't believe in showing off, really (though sometimes, I really do want to buy a hot sporty convertible or fancy schmancy Harley or something, but then it passes, lol).

I just want to live comfortably and am grateful for everything the good Lord above has given me- whether it be outright gifts (like a 2million dollar buyer out of nowhere) or whether it be the ability to do things - I'm thankful for what I have and am not interested in being Richie Rich - just want to be comfortable. And be able to buy a camper to travel the country with one day. lol

I think of all the people taking risks in the 1920s, trying to "imitate" the rich people - until October 24, 1929 that is...

No thanks - I'm content to live safely, and comfortably...and teach my kids to do the same.

Psst, to go back on topic, I don't count my personal expenses as business expenses either.

I count the newspaer as a biz expense. I look first to the foreclosures everyday. I also nned the RE advertising section on occasion for reference. I also look to the transfers.

My son reads the comics though. We clip some coupons on occasion.

i definitely live below my means as well..i drive a ford explorer i live in a 250k home..

my business expenses about 3k-2k of that is marketing-
1k on core expenses-copies,car note,cell phone,websites,signs,desk fees, mls fees, lockboxes,gas,tools..
my household personal expense about 2k-1200 mortgage
then -food-electric-gas

therefore the 5k number

i need to know the 5k number..'

because as mike ferry calls it..

my minimal survival number..

but i do have a nice bank avcount with about las i checked 10 months reserves

if i had to survive i could shed 2k in monthly marketing expense
and be able to survive for over a year..liquid

i usually dont keep this much month reserves liquid..

but this economy makes me nervous..it gives me peace of mind..

although my mentors think its stupid..and i should spend more to make more..but im holding my ground..

i have substantial investments but i dont touch them
and they are not liquid..down big time but im 32 so at least 20 years away from retirement.

im ultra frugal..

trust me i was forced at gunpoint to do the dance and karate lessons, and some of the vacations..

either that or sleep on the couch..