Rules: I will not be using this to pay off debt
If you have debt of any kind this is a really dumb rule. [/quote]
In general yes, but I don’t always agree with this. Hypothetically, if you had a loan at a 2 percent rate and you had an investment available that was a safe 4 percent return, it would then make sense not to pay off the loan.[/quote]
True; however, what are the chances you have debt at 2%? What are the chances you’ll also yield 4% on your investment?
Point being most people have debt at rates higher than any short termand even long term ROI. Credit card debt being the main culprit.