Why Comfort Can Be The Enemy of Financial Progress

June 10, 2021

Are you feeling fairly comfortable right now? Not ‘laid up on the couch with your feet up’ comfortable, but financially comfortable?

It’s never been cheaper to borrow money, which means even if your mortgage is on the large side (let’s face it, prices are crazy) - it’s costing less to pay it than it was a few years ago.  

You might even be feeling better than comfortable, flush even - because the data suggests your house is worth more than you paid for it (or potentially much, much more). Plus, you can’t exactly splurge your savings on an overseas holiday just now, right? (thanks Covid!)

Cha-ching. That’s why builders and plumbers are busy putting in new kitchens and bathrooms and new car salesmen can’t keep up with demand.

So, what’s the problem with that?

Well, while low interest rates present an opportunity to borrow more cheaply than ever, they also present an opportunity to get ahead faster than ever.

But the key here is it’s just an opportunity to get ahead faster – progress is not a natural by-product of low interest rates.

Instead, low rates allow those with a mortgage to feel more comfortable – and comfort can be the enemy of progress.

It means you’re less likely to champing at the bit to get rid of your mortgage faster, because it’s not exactly cramping your lifestyle right now. You’re less likely to want to look too closely at your spending because there’s enough money coming in to enjoy your life. And why would you focus on a strategy to grow your wealth, when it feels like your house is doing for you?

Well, for a start - while your house might well be worth more, so is every other house! So, unless you're moving away to a cheaper town or seriously downsizing, it doesn’t actually change much - you might feel richer, but you aren’t really.

The current conditions represent a window of opportunity.

Your biggest cost – the mortgage- is currently the cheapest it’s ever likely to be, but it won’t stay there forever. Right now, you have the chance to double down and get mortgage-free much faster, not only saving yourself thousands of dollars in interest, but giving yourself the freedom to make different choices, or be more ambitious for your family.  

Achieving that sounds simple, but if it was, everyone would be doing it already. In reality, it requires the right framework, the right mindset, the right strategy – and all of that requires the right advice.

Hannah McQueen and the team at enable.me – financial strategy & coaching have helped thousands of Kiwis get in control of their finances, get mortgage-free faster, grow their wealth, and prepare for retirement.

They can help you, too! See whether there's a seminar near you soon, or jump straight to booking a consultation with one of their financial coaches.

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