Smart Financial Planning: Balancing Data with Peace of Mind

We like to believe the numbers tell the whole story when it comes to financial planning. After all, when the math is clear, it seems like the obvious guide for our decisions, right? But what happens when logic clashes with your emotions? When the spreadsheet says one thing, but your gut—and your peace of mind—pull you in a different direction?

That’s where financial planning gets real. Because while the numbers may outline the smartest financial choice, they don’t always account for the emotional weight of those decisions. Sometimes, the right move isn’t the one that looks best on paper—it’s the one that feels right in your heart and aligns with your values.

The Spreadsheet Said No, But We Said Yes: Why My Wife and I Chose to Pay Off $482,870 in Debt

“The borrower is slave to the lender.” At first glance, this might seem like an outdated or overly harsh perspective, especially when debt is often seen as a tool in modern financial planning. But as my wife and I reflected on our situation, this verse from Proverbs resonated with us.

Ironically, the position that allowed us to pay off our debt came from incurring massive debt in the first place. Not the reckless kind, but intentional, strategic debt that, thankfully, worked out in our favor. At one point, we carried substantial real estate loans while building our personal Airbnb empire. We had cracked the code on properties that generated extraordinary returns, and the plan was working.

Then came the post-COVID real estate boom. Property values surged, and a quick look at the numbers showed we could accelerate nearly a decade of cash flows by selling the properties. So we did. Suddenly, we were sitting on significant cash assets—assets that gave us options.

At first, the math made one thing perfectly clear: don’t pay off the low-interest debt. Why pull money out of savings earning 5% to eliminate loans averaging just 2.68%? On paper, it was a no-brainer. Keeping the debt and allowing the money to grow would leave us over $100,000 ahead in just 8 years (after accounting for taxes!). Abandoning that strategy seemed, frankly, foolish.

But here’s where the numbers fell short. The weight of owing $482,870—across two mortgages (1.875% and 3.25%) and a car loan at 0.9%—was still there. It wasn’t financial stress, but it was a quiet loss of control. 

Even though the payments were manageable and the terms were favorable, part of our money wasn’t truly ours to direct. A portion of every month was already spoken for, forcing us to spend according to someone else’s schedule. My wife and I wanted more. We wanted freedom—the freedom to decide where every dollar went, to live on our terms, and to align our finances with our values and goals. 

The Power of Peace of Mind

Despite the spreadsheets, the projections, and the math telling us to stay the course, we made the decision together to pay off the debt. It wasn’t a reckless move—it was a strategic, intentional choice to close one chapter and open another.

The truth is, financial planning goes beyond the numbers on a spreadsheet. I often remind my clients that making sound financial decisions is only 50% about the data; the other 50% is about how you feel about that data. The numbers might point to a clear path, but if that path comes with stress, anxiety, or an emotional weight that hangs over you, is it really the right choice?

For us, paying off the debt brought a sense of peace and clarity that no investment spreadsheet could provide. It wasn’t just about eliminating payments—it was about eliminating the feeling of being obligated, however small that obligation was. It was the freedom of knowing that our income was now ours, to save, spend, or invest as we chose, without the quiet shadow of monthly bills lingering in the background.

Debt, even at a low interest rate, carries an emotional cost. It’s like background noise you don’t always notice until it’s gone. When the last payment was made, it was as if a weight we didn’t even realize we were carrying had been lifted. The mental freedom to move forward without that burden gave us more clarity and confidence than any projected return ever could.

Sometimes, the value of peace of mind can’t be measured in percentages or future cash flows. It’s a different kind of return—one that doesn’t show up on a balance sheet but makes an immeasurable difference in your quality of life. Financial independence isn’t just about maximizing wealth; it’s about finding the balance between financial optimization and emotional well-being.

But achieving that peace of mind starts with clarity. You can’t decide how you feel about a financial move until you fully understand its impact—both short-term and long-term.

Getting Clarity: How to Decide What Feels Right for You

Before my wife and I decided to pay off our debt, we had to start with a clear understanding of the numbers. I’m not talking about vague calculations or gut assumptions—I mean crystal-clear data that showed the full impact of our options. Only then could we decide how we felt about the decision.

Here’s the truth: paying off debt is not always the right move. In fact, for some people, it could be disastrous. Taking large amounts of money from savings or investments to eliminate low-interest debt might leave you vulnerable. Without assets in your accounts, you risk losing flexibility to weather emergencies, take advantage of opportunities, or sustain your long-term financial goals.

That’s why clarity is everything. You have to see the numbers in black and white:

• What is the true cost of keeping the debt?
• What will you gain—or lose—by paying it off?
• How will this impact your savings, your goals, and your overall financial future?

Only when you have the data laid out in front of you can you fully evaluate the decision. And only then can you decide what feels right.

But here’s a caution: be careful whose advice you trust. If someone—especially a financial advisor—tells you not to pay off your debt, consider their motivations. Financial planners who are compensated based on the assets they manage might have a subtle conflict of interest. Paying off debt often means moving money out of investments, which reduces the assets they oversee (and get paid on). While their advice might be rooted in sound math, it’s important to recognize this potential bias and weigh it carefully.

At the same time, don’t blindly assume paying off debt is the best move either. Debt, especially at low interest rates, can be a powerful tool for wealth building. The key is understanding the numbers and the trade-offs. Ask yourself:

• Will paying off this debt give me peace of mind, or will it compromise my financial flexibility?
• How much interest will I save compared to how much I could earn elsewhere?
• What does this decision mean for my family, my goals, and my future?

In the end, the point is this: you can’t make an emotional decision until you’ve done the math. Start with data, get clear on the impact, and then allow yourself to decide how you feel. Sometimes the spreadsheet will win. Other times, the peace of mind will.

Either way, you’ll be making a decision you can stand behind—one that balances financial strategy with emotional clarity. And that’s what smart financial planning is really about.