The more I take in when it comes to index investing the more I come to realize that this is our golden ticket to early retirement. Therefore I have decided to increase the amount I automatically invest each month with €100. Between the two of us we now automatically invest €600 each month.
Up till now we haven’t thrown any extra money into these investment accounts yet. All that is going towards the interest-only part of our mortgage. As that will be paid off by the end of this year our plan is to throw extra cash into our investments accounts from then on. We still have to calculate things…but it seems like throwing extra money into the savings part of our mortgage will bite us in the ass in the end…because of our weird tax system. This means that we’ll go for a twenty-year mortgage (seventeen years to go still). Unless the tax rules will be changed, then we’ll pay off the damned thing much quicker.
We do find it very scary though…throwing the difference between our income and spending into investment accounts. I guess we’ll just have to get used to that?!