Why paying your mortgage is a good cashflow strategy?

There is 2 way to increase your cashflow:

• Increase your income
• Reduce your spending

If you don't have good cashflow investment strategy, paying your mortgage is a good one and especially now due to low interest rate. Paying your mortgage is a way to reduce your spending or a way to make your money work for you (making sure your spending on assets is a priority in your budget.   

Having no/little mortgage is a good start to freedom.

Question: Yes but I should rather buy RSP?
Answer: Yes if you want to stay in the Employee quadrant and make sure your employee salary is locking you in that slavery quadrant.

Question: Yes but my mortgage is high?
Answer: Increase your monthly payment slowly. In most banks, you are allow to double your monthly payment without additional fees and do a 15% down payment every year.

 

Once your mortgage is payed, leave your monthly payment as an expense to invest in another asset.