Whether to prepay debt depends on one thing: what you can do with the money
A person borrows money for one reason: not enough cash. They repay early for one reason: too much cash.
The real question is timing. Is this money useful to me right now — in the next three months? Or is it useful in the longer term, say the next two years?
Not needing money today doesn't mean you won't need it in the coming years. What happens if a strong investment opportunity pops up and you have no capital to deploy? That's a real opportunity cost. Many investors end up hoarding large cash balances just because they want to be ready when the moment comes.
But it all comes down to one thing: what's your investment capability?
When you get your hands on money, do you only have two options — put it in a bank or buy a house? If yes, and you genuinely don't need cash for years to come, and you have no realistic home-buying opportunity ahead, then paying off that debt early makes perfect sense. In that case, your life choice is straightforward: you earn a salary, you aim for promotions and raises, that's your only goal. Money is a consumption good for you — it improves your quality of life, but it's not a productive asset.
But there's another type of person. They see things differently. To them, money is a means of production, not a consumption good.
The only way an ordinary person changes their fate is to stop being ordinary. You either accept that or you don't — and if you refuse to accept it, you're stuck accepting your lot. The sooner you realize this, the higher your chances of breaking out.
Wealth that doesn't last shouldn't be chased. Unstable returns — fine, you can go after them, but never let them become your foundation. Luck isn't something you control. Don't waste energy on factors you can't influence. Instead, build your base. Capture a hill. Seize a山头 (a foothold) from somewhere else and make it yours. From that point forward, you're the king of your own territory, and all revenue from that hill belongs to you.
It's better to stay on the right path than to stray onto the wrong one. Every extra step you take down the wrong road means you'll eventually have to backtrack.