"Navigating Uncertain Waters:
Why I Sold Stocks to Tackle My 8% Mortgage"
Hey there, fellow financial ladies! Life has a funny way of keeping us on our toes, especially when it comes to money matters.
Recently, I found myself at a crossroads with an 8% plus interest rate on my mortgage, and in these uncertain times, I decided to make a strategic move – selling some of my beloved dividend stocks to pay down that mortgage. Although it made me very sad, it was a move in the best direction for me.
Let me share why I took this step and why it might make sense for you too.
The 8% Interest Quandary:
So, there I was, facing an 8.6% interest rate on my mortgage. In today's financial rollercoaster, that number was a cause for concern. The higher the interest rate, the more I'd end up shelling out over the life of the loan. My monthly cash requirement were also increasing substantially. It got me thinking about how I could navigate these uncertain waters and come out on top.
The Power of Dividend Stocks in My Portfolio:
As you know, in my investment journey, dividend stocks have been like the steady rudder guiding my financial ship. I love my dividend stocks! So far they have offered consistent income stream, even when the market seems to be doing somersaults.
However, with my mortgage interest rate renewal at a hefty 8%, I needed to reevaluate the balance in my portfolio and make a difficult decision.
Why I Sold Some Dividend Stocks:
- Interest vs. Dividend Spread: As I crunched the numbers, it became clear that my dividend stocks weren't generating returns higher than my mortgage interest rate. Selling some of these stocks and putting that money towards the mortgage seemed like a practical move to optimize my financial situation.
- Economic Uncertainty and Rising Rates: With the economic climate feeling more like a seesaw than a stable ground, the fear of rising interest rates lingered. I wanted to proactively reduce my stress by reducing my mortgage burden. This would provide me with a safety net for whatever financial surprises the future might hold.
- Stress Reduction and Financial Freedom: Uncertain times can bring their fair share of financial stress. By using my dividend stock income to pay off part of my mortgage, I not only lowered my monthly financial commitments but also gained a sense of financial freedom. It's like shedding unnecessary weight to sail through choppy waters more smoothly.
- Securing My Home Base: My home is more than just a property; it's my haven. By paying off a chunk of my mortgage, I'm securing my place in the property market and creating a stronger financial foundation. It's a move that brings a sense of stability and assurance, especially in times when the economic outlook is anything but clear.
In these uncertain times, it's all about making calculated moves to weather the financial storm. And boy is it a storm!!!! By addressing my 8.6% mortgage head-on, I'm not just adapting to the current economic climate; I'm setting myself up for a more secure cash flow. I feel confident about reducing my monthly expenses and as rates decrease I will continue to rebuild my dividend portfolio! Life is good!
