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by andrewmcwatters 1989 days ago
> CapEx does NOT affect profits

Yeah, yeah, and paying a mortgage doesn't affect my savings rate.

1 comments

What?

"Savings rate" is defined as monthly disposable income. Your mortgage absolutely lowers your savings rate.

Your mortgage would also affect your cash flow. If we're talking about profit/loss, the interest-portion of your mortgage absolutely affects your profit/loss.

Only the principle portion of your mortgage statement is "free" from a profit/loss perspective. Which it is: you can always leverage the principle into a HELOC or other financial instrument if you need emergency cash.