3. Be Tax-Smart About Debt.
As your income rises, the benefits of tax breaks on certain types of debt also increase. In particular, most mortgage interest qualifies for an itemized tax deduction, reducing your after-tax financing costs even further from the generally low rates on mortgages. Similar tax breaks are sometimes available for student loans and investment interest expense, so be sure to check whether your loans qualify and, if so, how the tax break factors into your decision of whether to pay them off quickly or more slowly.