I payed off my house this year. I’m 33 with a combined income of 120k. I can actually breathe now and I’ve even cut back a few hours so I have me time and time for my 2 kids. It’s the best feeling in the world!
@ccalexander1924
Жыл бұрын
That is what I find amazing. Just having that more me time ( or timr with your kids or just to live life ). You accomplished an amazing goal. I currently am a rad travel tech so I travel across the US working at different hospitals. It’s exhausting but I keep telling myself I am doing this to pay my mortgage off in a year. I know emergency things can happen so I have a stash for that but if I had my mortgage paid off I would cut down in my working hours or just find something I could enjoy more doing. Anyways … im happy for you !
@ryanclark692
3 ай бұрын
Good for you Janet
@imexotica9209
3 ай бұрын
*paid
@sirahgale
2 жыл бұрын
It may not make the most financial sense to pay off your house early, but I can tell you it’s 100% worth it. As we enter a recession and possible layoffs, the peace of mind we have with no house payment is priceless.
@NelsonLopez-so2ll
2 жыл бұрын
Invest 300 k or keep the mortgage
@randymillhouse791
Жыл бұрын
Default on property taxes can result in the loss of your house. Or do you own a shotgun and your brother is Sherrif?
@Gas_man
Жыл бұрын
As soon as you said paying off your house early doesn’t make the most financial sense, you lost the argument.
@jasonhatfield4747
Жыл бұрын
@@randymillhouse791 Yep. It's also important to choose a home in an area with relatively low taxes. A paid off home AND low property taxes...that's a nice situation. But, you can't escape those property taxes. The county will come after you very quickly. I had a check bounce once on property taxes (because I used an old check book that had been cancelled) and within a month I had a huge fee charged to my property and a very threatening letter from the auditor.
@randymillhouse791
Жыл бұрын
@@jasonhatfield4747 Sounds like gotcha Capitalism to me. Is it possible to pay off a house and still have monies paid into escrow each month? That would be like auto-pay of the property taxes.
@fuse98
Жыл бұрын
As a soon to be 43yo in a couple years, I'll have paid off 2 mortgages by then. I think the second one being paid off will be even better than the first one and that one felt pretty awesome. The security in which you gain making that last payment on the mortgage is priceless and the stress just disappears, you made it, you did it you got to that finish line of ultimate debt free. Now picture doing it again and being able to sit on an investment that you can sell at a later date if need be and hopefully the interest paid on the lifetime of that mortgage is much less than the capital appreciation it's made of that time. Pretty freakin' sweet is what that is. Thanks Dave!
@dementeduncle
2 жыл бұрын
Pay off your house for cash flow. Not having to make a mortgage payment leaves cash flow for investments. I paid mine off to reduce my cash flow needs prior to retirement. A paid off house means you need less income.
@perotal
2 жыл бұрын
Doesn't work that way. The greatest asset for an investor is time, you are never getting it back
@dementeduncle
2 жыл бұрын
@@perotal The greatest asset for a retiree is peace of mind. A paid off house is peace of mind.
@debz7682
2 жыл бұрын
@@dementeduncle your sitting on equity and should invest
@dementeduncle
2 жыл бұрын
@@debz7682 Life expectancy in the US is now 76. I am 64. I have a paid off house. I have investments, but there is only so much I want to leave behind. Investment strategies depend on your stage of life. Sitting on equity and hard assets isn't wrong when you want to live on a fixed income like Social Security and pensions.
@jameshorton3692
2 жыл бұрын
@@perotal you’re broke in real life.
@matthewjohnson1643
2 жыл бұрын
Just a thought of having my mortgage payment in my pocket every month is enough for me to pay my house
@Bestjudy001
27 күн бұрын
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@BrandonIvan-c6e
27 күн бұрын
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@Bestjudy001
27 күн бұрын
@@BrandonIvan-c6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@BrandonIvan-c6e
27 күн бұрын
@@Bestjudy001 Oh please I’d love that. Thanks!.
@Bestjudy001
27 күн бұрын
@@BrandonIvan-c6e Clementina Abate Russo is her name.
@Bestjudy001
27 күн бұрын
Lookup with her name on the webpage.
@oglee_
2 жыл бұрын
The stress that is unconsciously tied to practically any debt is tangible...and avoidable.
@Gas_man
Жыл бұрын
Not if you understand what leveraging that debt is ultimately doing for you. But many people don’t.
@kbanghart
11 ай бұрын
There's always some kind of debt.
5 ай бұрын
I don’t have any stress from it. Never had a debt other than my mortgage, and payments are a small percentage of my income. Even if I lose my job I can easily get another. If I ever need more cash I could sell some of my shares. So where’s the stress?
@nevea.4621
Жыл бұрын
Once you own the house you'll never go broke , because regardless how bad thing can go in life , you can always sell the house, buy something more affordable and keep the cash difference
@HM-ke1qm
5 ай бұрын
Not always true.
@paxtonhelms9066
Ай бұрын
@@HM-ke1qm, and you don't have to have the house paid off to sell it for cash. As long as you have positive equity it's will generate cash (after transaction costs, etc.).
@TonyRome402
Жыл бұрын
I paid off my home 8 1/2 years early and saved $52,000 in interest. It feels great to never have to worry about a mortgage again.
@oldhag2881
26 күн бұрын
Right---My Mom died in April. She hadn't had a mortgage payment since 1969. She was in her 70s when I heard her ask---Where am I going to work to be able to pay rent?
@paulconner4614
Жыл бұрын
What people don't realize is that when you have a paid off house there is a huge psychological burden lifted. This one act allows you to be more aggressive in your other investments while still sleeping easy at night. At the end of the day if you can cover your annual property taxes you will have a roof over your head.
@Dell7788
Жыл бұрын
Definitely
@MrGiggity890
Жыл бұрын
🤡
@dandennis8465
11 ай бұрын
Paid off our 30 year mortgage in 13 years. The feeling of not having to pay another payment felt great. Also we don’t have any car payments. My wife and I were 50.
@kbanghart
11 ай бұрын
Congratulations. Now, are you helping others do the same?
@rlchick5774
8 ай бұрын
So how did you ignore the people that say to invest? I can pay mine off too thanks to inheritance.
@kleindropper
Жыл бұрын
I did the same thing, I moved and pulled money out of the house sale and put it into the market instead of the new house. When the S&P drops 22% you end up wishing you had put that money into the house, and God help you if you tried individual stocks in that time
@liptongtr
Жыл бұрын
What a silly reason to not to invest. You don't take money out and the market recovers on average you get 10% returns and the bear markets are much shorter than bull markets
@kleindropper
Жыл бұрын
@@liptongtr Paying on your house is investing
@Nernst96
Жыл бұрын
I bought a house with cash in 2021. The insurance and property taxes have doubled since then, and now costs more than I ever paid in rent in my life. I feel that I would be better off living in a studio apartment in a warehouse again and investing the money in anything else.
@sattler96
Жыл бұрын
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you're careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn't king at all in this time!
@Dannyholt33
Жыл бұрын
@Mussa653 I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same. Is there any chance you could recommend who you work with?
@Dannyholt33
Жыл бұрын
I just Googled her name and her website came up right away. It looks interesting so far. I sent her an email and i hope she responds soon.
@TonyRome402
Жыл бұрын
Or you can buy a trailer by the lake and invest the rest of your profits 📈 in the stock market.
@Wilmerin11
Жыл бұрын
How much has increased the value of your house since then? If you regret of a paid off house, you can sell and get a mortgage.
@xpicklepie
Жыл бұрын
I'm an investor and I've done both. There is nothing worse than having cold dead cash trapped in a paid for house. Much better to use the banks money and put your capital to work than let it rot in dead home equity!
@currenteventsenthusiast9477
Жыл бұрын
Makes no sense…. It’s not dead cash because the home is gaining value.. oh and what about that $2000-2500 a month that you have now to invest instead of giving the bank money every month
@afg_texan5195
Жыл бұрын
Exactly, be your own bank and pay yourself that monthly payment. @@currenteventsenthusiast9477
@cindiexoxoxo3773
Жыл бұрын
Dead cash is the obscene amount of interest you pay on a mortgage every month. Complete waste of money! Pay off the house, save tens or hundreds of thousands in interest, have no stress, and add that mortgage payment to your monthly cash flow! No brainer!
@kbanghart
11 ай бұрын
@@cindiexoxoxo3773nope. I'm selling instead
@nick-oi1xf
9 ай бұрын
If my investments are earning 13% year over year and my mortgage is 3.5%, why would I pay it off?
@OregonScapes
Жыл бұрын
Ramsy will never run out of work, he tells everyone the same thing...on every video... and i still watch every one of his videos.... and dont learn....
@ClementRusso2
Жыл бұрын
I've sold a property in Michigan and I’m considering investing the proceeds in stocks. With the current market optimism, I'm unsure if it's the right time to buy stocks and how long it will take for a full market recovery. I'm also puzzled by how some are making substantial gains of over $320k within months in the same market
@VickyAlvy
Жыл бұрын
It's remarkable, but considering my portfolio's current poor performance, I really do need their help. Could you please provide me with a way to contact your mentor?
@antonnohr
Жыл бұрын
Yes, i just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. Thank you
@kennethroyer9949
20 күн бұрын
There not they are bull shitting you!
@stevevaughn3887
Жыл бұрын
Your primary home should never be used as a bank. Get it paid off and never even think about borrowing against it.
@whatsupwithsteve
Жыл бұрын
Agree! While I would continue to pay a 2.5% mortgage since I can get more than double that on my investments I would NEVER reborrow money on my house once it is paid off. Why? Because it does feel good psychologically to not have that obligation hanging over you any more!
@brentsheldon8667
Жыл бұрын
The key to borrowing and financing is to always be solvent if you have to be. I have my own business for 30 years and have borrowed money in the past but never borrowed against my house. I haven't had any debt for the past 15 years.
@peytonschuldt1045
6 ай бұрын
Sound advise.
@danimocha6598
2 жыл бұрын
Wonderful position to be in! Way to go! Enjoy your retirement!!
@RobertRoman
Жыл бұрын
I am about to pay off my mortgage at age 31. I can't wait to have all my money in my pocket and not the banks pocket when I get payed. I just need 75k more to go on a 90k income 😀
@SS-bp8yq
Жыл бұрын
I struggled with the idea of paying off my house last month because of my 3.5% loan rate. I thought about and stressed about it and finally wrote a check and payed it off. Felt great for a brief moment because I just received word I will not have a job by end of the year. At least I do not have to worry about a $1,900 monthly payment until I get things figured out in regards to a job.
@realhzl1807
Жыл бұрын
Yeah, but you still have to worry about property tax, insurance, repairs… duh
@SS-bp8yq
Жыл бұрын
@@realhzl1807 No shit!!!
@nycyaofan
Жыл бұрын
But if the money was in your bank, why were you worried
@williamhermann6635
Жыл бұрын
@@realhzl1807All of those things will become much more affordable without a mortgage.
@donaldclayton9735
11 ай бұрын
Glad for you. Some of it for me depends on how much is owed. I would rather take income from municipal bonds now that they are yielding 4 to 5% tax free in my state. This gives income to pay the mortgage, especially at a low rate.
@ballan00
2 жыл бұрын
We owe $250k on a $550k house... and while the payment is less than 25% of our monthly take home pay... having that much debt hanging over my head is still very stressful for me and causes me to be hesitant to take any risks career wise. No way I could talk my wife into selling it and buying a $300k house with cash though... so the best I can do is throw all of our extra $$ into getting it paid of as soon as possible.
@aaront936
2 жыл бұрын
What's your interest rate?
@watchman9198
2 жыл бұрын
I feel you man. I’m in the same boat
@randymillhouse791
Жыл бұрын
You have 300K in equity. Assuming you have other investments like a 401k, Roth, liquid, etc. you could retire to South America and live like a KING for 25 years.
@ChrisBorghi22
Жыл бұрын
@@randymillhouse791 South America? I’d love to because I lived there for a long time but it’s not for everyone...
@randymillhouse791
Жыл бұрын
@@ChrisBorghi22 When 250K goes as far as $750K then South America is the easiest choice.
@thenewwayhome
2 жыл бұрын
A paid-for house would feel awesome. You could truly enjoy your retirement without worrying about any debt and then steady invest. Way to go!
@aaront936
2 жыл бұрын
Investing requires time to compound. The earlier you invest more the more time your investments have to compound. Your fixed rate mortgage stays the same. You're throwing away money.
@lettuceboy2382
Жыл бұрын
Yeah but people keep focusing on feeling good today. I will be very happy paying a 2.75 rate 20 years for now
@randymillhouse791
Жыл бұрын
A paid off house is still a debt. You have utilities and property taxes.
@cbell5017
Жыл бұрын
Doesn’t feel that awesome. Still have insurance, taxes, utilities, and maintenance. The monthly expenses never ends for a house.
@jimw.5654
Жыл бұрын
Would be nice to payoff taxes and home owners insurance, they make up 40% of my mortgage.
@aiswebmaster
2 жыл бұрын
If you aren't sure what to invest in or how to invest and then sell when you shouldn't, you need to pay off the house, maybe even buy more real estate with the remaining, rather than do something you don't understand
@karlabritfeld7104
Жыл бұрын
This makes no sense at all.
@KatieBellino
Жыл бұрын
There are investments that do a lot of that work for you. I have a Roth IRA through Fidelity. I don't make the buying/selling decisions.
@nycyaofan
Жыл бұрын
For all the people that have 2-3.5% interest fixed mortgages, if you kept the money in a savings account(5% interest now), after taxes you are still up, why would you get rid of your flexibility and liquidity for no gain? If the money is in your bank account you can always pay the mortgage.
@michaelh-co8zx
11 ай бұрын
U have to pay income tax on that interest
@nick-oi1xf
9 ай бұрын
S&P returns 13%, historically. The US gov is in a situation now that it has to print up an ungodly amount of money. That will make assets go up and fixed rate mortgages cheaper and cheaper.
@av8rgrip
8 ай бұрын
This is a very simplistic view, and for most people, that is all they can understand. If you do it right and you had a 3% or less mortgage, it makes little sense to focus on the mortgage. There are tax benefits to having a mortgage and if done correctly, over time you can earn way more in the market. Dollar cost averaging is the way to go. If you aren’t averaging 10% or better, you need to make changes. Don’t try to time the market either. Even if you pay your house off you never really own it. You will always be paying rent to the government in the form of property taxes. I’m very seen many “paid off” houses sold at tax sales.
@oldhag2881
26 күн бұрын
I disagree.
@av8rgrip
26 күн бұрын
@@oldhag2881 time value of money.
@logosproclamation453
Жыл бұрын
People who are not disciplined then paying off the house is the best. If you discipline then just do S&P 500. Numbers are simple, but people do not know this. Average S&P 500 life return 7% her house is at 2.7%. Math
@miqueasmurga8698
Жыл бұрын
Great but what if life happens. What if you can’t work or make less money with a new job or you get injured.
@logosproclamation453
Жыл бұрын
@@miqueasmurga8698 Then you use the money that you have accumulated at greater interest return and pay your bills.
@SIFON5CS
6 ай бұрын
Statistically 60% people just don’t pay off their mortgage
@formula112967
6 ай бұрын
@@SIFON5CS are those the same 60% of people that carry $10k plus monthly credit card debt, and only paying the minimum payment because the monthly interest portion of the bill is huge?......and that 60% could also be the 60% of people that stand in the Starbucks line everyday for overpriced coffee-flavored mud.
@HoustonPlaysGames
3 ай бұрын
@@miqueasmurga8698 Then you liquidate the stock and pay off the house... Or you put the money into a high yield saving account - they are paying 4-5% right now. Having cash on hand in a HYSA to pay off the mortgage is better than paying off the house...
@lot2196
2 жыл бұрын
Someone asked me why I don't take out home equity loans and invest it since my house was paid off. No thank you.
@reese85
2 жыл бұрын
That’s actually what a lot of investors do!
@Nolaman70
2 жыл бұрын
I have one sitting at Chase for 50k for emergencies, it's easy to do. It has no balance but provides peace of mind. Also if I need to buy another investment property quickly I can write a check from it. It's a great tool to have sitting there.
@ryankiel4895
2 жыл бұрын
I'm glad that you had the common sense not to leverage your house. Whoever give you that advice is very ignorant about wise Financial decisions. Dave's study of millionaires shows that once they fully pay their mortgage, they never have any debt again. They used to increased cash flow to put more money into their investments. The shortest distance to wealth is being debt-free, no payments.
@reese85
2 жыл бұрын
@@ryankiel4895 having no payments and limit income, is not goin to create wealth
@reese85
2 жыл бұрын
@@ryankiel4895 I bet his house payments, wasn’t even that much money
@KingofDoubleBogey
Жыл бұрын
Nothing like not having a house payment- I bought and paid cash for mine in July 2020
@MyLifeBestLife
Жыл бұрын
I understand the risk of losing money however why would one pay-off 2.5% mortgage when s/he can get 4-5% in savings accounts or T-Bills or CDs without any risk of losing money. If these interest rates drop then you can always move money to pay-off mortgage. This caller will comfortably get monthly $2K in interest if she move all her money in safe deposits like SA, CD, T-Bill.
@leejones1782
2 жыл бұрын
Paying the home off is safe and sensible. Theres allot of factors to consider here, age of the women she mentioned she wants to retire, then very little outgoings is extreamly wise. If she was young and wanting to work for 20 more years she could leave it and keep investing.
@aaront936
2 жыл бұрын
The 30 year treasury note pays higher interest than the bank is charging me. Paying off your low fixed rate mortgage is just dumb. Let inflation whittle it away.
@Dan16673
2 жыл бұрын
100% and daves folks don't get this at all
@sbrazenor2
2 жыл бұрын
Yeah, but if you've got 20 years to work, perhaps it would make sense to pay off the house and then invest heavily for that 20 years. Or, in the event of job loss or other major events, have the security of a paid off house. With the house paid off, a person might also want to change career and with a lower monthly budget need, you can take more risks. (Opening a business, pivoting careers, etc.)
@acruzro95
2 жыл бұрын
@@sbrazenor2 correct. Either way it should work. But if you got 30 years ahead of you and you got the money. Maybe you pay off the house and regardless of the opportunity cost, you minimized the risk and can still invest
@aaront936
2 жыл бұрын
@bill joseph you're financially illiterate.
@shifteeninjee9641
5 ай бұрын
To me its balance - Yes you can in theory make more money investing. BUT in the back of my head - what if I lose my job or have to take a step back in pay. If I paid down my house enough - I can always refi and lower the monthly. Keeping a roof over my head is always my top focus.
@beth3535
11 ай бұрын
I was finally able to do this: first by refinancing from a 30 to a 12-year mortgage. Then by biting the bullet and paying off the last $5K. While I was only able to pay it off 5 months ago, having it off my back has freed up $800/month that goes to savings. Finally. The improved cash flow eases things in so many ways. In fact, I’m still getting accustomed to it. That’s something that’s pretty obvious, but it’s still jarring. Needed repairs wait in the wings, but I’m so grateful to have managed this. It’s energising and a huge weight off my shoulders. The savings from both steps was $28K in interest.
@BarbFichman
Жыл бұрын
My brilliant husband sold our home in CA and with the equity we bought a home in NV for CASH !! We are retired debt free !!!! Life is good !
@intensifier1346
Жыл бұрын
Because it is awesome. When you know others that live around you are making $3500-$4000 per month payments and you are cutting a check only once a year for that amount in taxes and insurance.
@janinesimon6076
Жыл бұрын
Can’t wait!
@intensifier1346
Жыл бұрын
@@janinesimon6076 👍
@formula112967
6 ай бұрын
I am working on it.....got my 30 year mortgage 10 years ago, and if I keep up the pace, I'll be done in 2 years, shaving 18 years off my 30 years mortgage and saving more than $60k in interest....to hell with the investor naysayers!
@Azel247
Жыл бұрын
I keep coming back to this question over and over again. Each time I decided to keep the mortgage and invest, which has honestly paid off quite well. Still, it bothers me to have a mortgage. If I pay it off right now, I can have a $1mil paid for home and $250k in the bank, with no other debt at 37. That sounds pretty tempting. But if I keep the money invested I should mathematically net more.
@tannercc
Жыл бұрын
That's a great situation to be in. I am in a similar situation and also struggle with blowing the wad to pay off the home. But, from the security standpoint, it has to feel pretty damn good to have the house paid off. Less worry. Less stress and that is better for a healthy life. Stress kills. I say pay it off. Especially if you're going to have $250k left over.
@Azel247
Жыл бұрын
@@tannercc I hear you. I'm realizing there's a certain amount of money that will be "enough." Trying to get more than that will demand additional sacrifice in the form of time, sleep, and stress. I'm leaning towards paying it off now but emotionally it's hard to let go of the investments.
@Azel247
Жыл бұрын
@@fwb777 Yea, but the experts are saying the interest rates are near peak. There's always a mathematical or economic argument for keeping the debt. I don't think I can math my way out of this one, but the psychological aspect of debt is draining, which is why I think paying it off would be wise, personally.
@brianasbell5856
Жыл бұрын
@@fwb777 Mortgage interest can't rise unless your in an ARM though
@rcaviator4310
Жыл бұрын
@@tannercc I actually think there is much less stress keeping a large amount of liquid investments even if it means having debt. If I have $200k in investments and $200k in mortgage debt, I have much more flexibility in an emergency. If I have $0 in investments and $0 in debt when there is an emergency, I have no options.
@lennyg7771
Жыл бұрын
When I was 20 years old, I bought my first house. I paid it off by the time I was 25. I wasn’t financially savvy and no clue about investing. It felt good to have a paid off property under my belt. Don’t have to worry about rent or mortgage repayments.
@gumshoe7237
Жыл бұрын
sounds a lot like you got some help along the way .
@alexralston22
Жыл бұрын
@@gumshoe7237 He didn't have help. He worked hard and paid it off. I've been there and done that. I didn't have help either. He didn't comment back because he is too busy working!
@tylerk.7947
Жыл бұрын
Bought a house at 20 andpaid it off in five years without being financially savvy? Either this was the 1950s or you had a lot of help. That’s not even close to possible anymore.
@DeanBKK
Жыл бұрын
@@tylerk.7947maybe his house was worth less than $100k when he bought it.
@angelgirldebbiejo
Жыл бұрын
Did you win the lottery or inherit money?
@Adam-kv2dh
Жыл бұрын
If you got a paid for home and car you don't need to worry about job pay offs as much either.. you can live on a lower income
@nycyaofan
Жыл бұрын
His advice is for people who aren’t disciplined and educated in investments, it’s not terrible advice but paying off a 2.5% mortgage when interest rate in a savings account averages over 4% is stupid.
@dearbravesheep
4 ай бұрын
I’ve been doing some math on our mortgage calculator and it seemed like there was a sweet spot of paying it off fast but not too fast. It showed me I understand nothing about finances, investments, and interest rates
@tonydarcy7475
4 ай бұрын
I agree, but remember you need to adjust that 4% for tax (assuming you take the standard deduction and therefore the mortgage interest doesn't matter), so the difference isn't as large as it would initially appear.
@paxtonhelms9066
Ай бұрын
It's a cash flow decision. Map out the cash flow and bake in some uncertainty. Paying off a 2.5% mortgage is probably not a good idea as long as you are disciplined about investing. Remember: you get ALL of the property value increase regardless of how much you owe.
@rosarabin824
20 күн бұрын
Why would you keep giving money to the bank? Not matter the low interest, that's money you're giving to a bank. You can use your cash flow to invest. Debts are not good at all.
@nycyaofan
20 күн бұрын
@@rosarabin824I can't believe I have to explain this, but here goes: if you have 100k, if you put it in a 4% interest savings account - you get 4k a year. If you put the 100k into your 2.5% interest mortgage by paying it off, you saved 2.5k in interest. The difference is 1.5k that you gained by not paying off your mortgage.
@bman6502
Жыл бұрын
I don’t like listing your house as part of net worth because you have to live somewhere.. granted, you could sell, and then downsize (assuming that will give you additional cash)…
@Lilbit2215
2 жыл бұрын
I don't understand how people don't understand the concept of paying your house off!!!!
@AlexGarcia-yz7rc
2 жыл бұрын
Two words: opportunity cost. If I told you to pay my $1000 mortgage in exchange for $1500+ a month for the next 30 years, then once you are done making those 30 years of payments you could keep the paid for house for free. Would you do it?
@rayosullivan4398
Жыл бұрын
Well some people are dumb and some people don't have the money and some people that have the money are really dumb,i never got a mortgage waited till i had the money then bought a house
@tesoro2250
4 ай бұрын
The correct answer is.... Don't pay it off if you don't want to. Sadly people are used to being on payments and will be until they die. Paying off your house brings freedom. I'm a fan of it
@IcyDNA
2 жыл бұрын
How does having your house paid off feel? “I feel like retiring” Sometimes we as humans need motivation to work.
@ybois3
2 жыл бұрын
Can you elaborate, isn’t retiring the end goal to a more fulfilling lifestyle after so many years of labor?
@kbanghart
2 жыл бұрын
@@ybois3 yes but retiring means different things to different people, I think that was their point. Some people love to just hang out at home and watch tv, others can't sit still.
@jls41nj1
Жыл бұрын
I kinda agree with that. Hungry dogs run faster mentality but not having much debt is such a huge subconscious weight off my mind.
@randymillhouse791
Жыл бұрын
Define "work." Define "motivation." Does each necessarily involve earning pay?
@jls41nj1
Жыл бұрын
@@randymillhouse791 I would say no !
@rosamoreno4794
2 жыл бұрын
3-6 month emergency fund is no longer good. Times have changed. One needs 7-10 months at least.
@V31lCl0ud
2 жыл бұрын
Not true. Cut your lifestyle. Then 3-6 works fine.
@spankynater4242
2 жыл бұрын
Please enlighten us. Can you give us specific information, preferably a citation? Platitudes and clichés don’t really frighten me.
@truckingmoney485
2 жыл бұрын
If you need that much reserve you must work in a bad field
@aaront936
2 жыл бұрын
You don't want to hold large amounts of cash during high inflationary periods.
@SUPAassassin098
2 жыл бұрын
7-10 months emergency fund is no longer good. Times have changed. One needs 3-5 years at least.
@JonathanIvy221
2 жыл бұрын
I’d rather invest the extra money instead of paying off the mortgage.
@Gas_man
2 жыл бұрын
And the math generally agrees with you unless your interest rate is horrendous
@oldhag2881
26 күн бұрын
Dave often advises eliminating risk. "I have the money to pay off my house anytime"----Until your investment tanks.
@Bonio84
2 жыл бұрын
This is such a simple one to understand if you take the time to look at both angles..... Yes, you can make more investing than you save against a typical mortgage interest rate, so for all those who would rather invest than pay of a mortgage, look at this other angle which is in theory identical. Once you have a house paid off, would you take out the equity to reinvest it? 95% will say no, because its unnecessary risk, which is why you shouldn't invest over paying off the mortgage in the first place. If you are however that way inclined that you would always release equity to invest, then yes do it, as you just enjoy the risk. For most of us however, the right answer is to get debt paid off
@jacobanderson4101
Жыл бұрын
Bad logic. Its silly to pay off the home, then take a heloc and invest it because you’ve lost the time value. The time is why I’ll take 6-10% over 2.5%
@Bonio84
Жыл бұрын
From the point of releasing equity, its the same on both sides. Opportunity cost isn’t lost at all. Check your maths.
@sblijheid
Жыл бұрын
Helocs are not wise. This whole hyper leverage thing has been sung too much by gurus and gambling minded people jump on the band wagon. My father did the same, not heloc, but he borrowed up to his eyeballs. He has so much debt, it crippled him. He thought he would double his investment in less than a year. He's years further and still in the hole.
@karengoetchius794
11 ай бұрын
I would not take out the equity, because home equity loan rates are at 7.7% where I live. That's worse than what I'm making with no risk.
@calihawk82
Жыл бұрын
2% interest. Never paying mine off.
@AG-so4gl
Жыл бұрын
It's wrong approach. Mortgage rate 2-3%. Investmentment retun 8-10% +. Throw it at the heaviest return, IE Investments. . Make your $$ work harder for you. It's not rocket science
@logdon17
6 ай бұрын
Or do what I did, work a high paying stressful job you hate for a some years and pay off your mortgage and then finally quit and get a normal job that I enjoy and be happy.
@paxtonhelms9066
Ай бұрын
Yeah, Dave is always about getting 11% in the stock market (as if that were 100% guaranteed which, of course, it isn't). I think his argument is basically "it feels good to have it paid off" --okay, but that's not a very mathematically sound argument.
@punxnotdead3873
10 ай бұрын
If you do the math, its smart if you want to be debt free style, but, inflation and housing market increase, make minimum payment on your home and invest in more homes. Rent them out. Whe. You retire and have someone else paying your mortage, after home is paid off, u have that monthly income , way more than your work 401k will pay you monthly
@formula112967
6 ай бұрын
Tell that to all the landlords who weren't getting the rent payments through covid.
@punxnotdead3873
6 ай бұрын
@formula112967 ur rite, banks got bailed out and we got screwed. But u can pause ur mortgage payment for free too. But now u just gota put in contract no matter what happenes ifnu dont pay ur booted. Find good renters because as soon as that crap eneded, evections started and rent went up to make up the loss.
@annkrull9894
2 жыл бұрын
Not true for everyone. Some need mortgage to avoid paying higher taxes. If mortgage is your only debt don't pay off the house and then lose cash is prices plunge.
@citygurrrl6387
2 жыл бұрын
just stop.
@Ziegfried82
2 жыл бұрын
I would never advise keeping a mortgage for tax reduction purposes. The main reason to keep a mortgage is because you have an extremely low interest rate and can invest that money elsewhere with potential for far higher gains.
@mrcrowleyoz
3 ай бұрын
Hey Dave, how do you tell your landlord you won’t be able to pay rent for a couple of months. It’s either food, or rent.
@domferris9963
2 жыл бұрын
If all your money is tied up in your house it’s a lot trickier to get the money then if your money is tied up in stocks. Plus what if you have your big emergency while you are actively paying off your house? Then you still have a house payment AND you don’t have as much liquid cash. Paying off your house early is risky too.
@Argedis
2 жыл бұрын
That's what an emergency fund is for You're acting like you're gonna need 100k cash for a big emergency
@evelynherrera-gonzalez1474
2 жыл бұрын
@@Argedis right!! Thats why Daves advice is to save 3-6 months of expenses. Have a good cushion. Paying off your home is the best thing you can do.
@aaront936
2 жыл бұрын
@@Argedis cool so since I have an emergency fund it doesn't make sense to pay off a low fixed interest mortgage. 10% compounding returns beats 2.5% simple interest.
@colinzeta4362
2 жыл бұрын
@@aaront936 💯 money is meant to work for you, and their is good debt and bad debt. No mortgage broker, accountant or financial consultant will look at a mortgage as debt this old school logic and rhetoric. Another thing to consider is interest paid in is usually covered by the change in house value. So a 25 year mortgage on a 300K house may have half that interest be covered on the house price increase.
@Lon1001
2 жыл бұрын
they will have a huge chunk of cash stil, and/or a bunch in easily liquidable assets or worse case they can get a heloc in the worst case situation.
@Leslie83249
Жыл бұрын
I'm hoping to pay off my last 73k mortgage at 2.75% within a month or two, the stress of the recession/uncertainty just isn't worth it! Can't wait to be totally free!
@markb2007
Жыл бұрын
I don’t understand why anyone wouldn’t WANT to get rid of what is usually the largest monthly payment. Once that is paid off your flexibility is greatly increased. Your stress goes way down. Risk is mitigated. I know this because I paid off two homes and now in a good position. Once your huge payment is freed up you can throw a ton into investments. Or you can juggle 27 balls and wonder why you’re stressed out.
@jacobanderson4101
Жыл бұрын
If you have a 6mo emergency fund, why would you stress?
@markb2007
Жыл бұрын
I do. I don’t want payments but if that’s your style go for it.
@ryanmorris4995
Жыл бұрын
Flexibly increasing and risk being mitigated is many times not true. Paying off your mortgage can actually make these worse.
@markb2007
Жыл бұрын
Ryan 😂
@lukerider479
Жыл бұрын
Why not just split the difference and pay the house down quicker to minimize risk. Invest the other half to boost investments
@truebengalsfan
Жыл бұрын
Crazy how some of these people call in with a good situation like they have actual problems
@malloryjohnson6192
2 жыл бұрын
Can’t wait to have a paid off house! OWN your home and you’re so much safer in my opinion
@randymillhouse791
Жыл бұрын
2008...
@15KHPCLUB
Жыл бұрын
Guess you haven't heard of tax foreclosures...
@israelramirez8891
Жыл бұрын
@@15KHPCLUB So pay your taxes ? lol one payment vs 12 is a big difference...
@15KHPCLUB
Жыл бұрын
@@israelramirez8891 "sO pAy yOuR tAxEs" Makes no sense why so many Ramsey folk are so eager to pay off their mortgage 🤷 Still will never truly own your home unless property taxes are abolished.
@bigpapa21tx1
Жыл бұрын
OWN😂😂 You are borrowing it.
@martinrbookermb
Жыл бұрын
You don't need to pay a broker to manage a fund? just invest in the S&P 500 and dollar cost average long term.
@ryanclark692
3 ай бұрын
I’m 30 and I was able to pay off my house at 28. Freed up cash flow for me to be able to renovate my house .
@standelasanantone2180
Жыл бұрын
Should I spend ~1/2 of my retirement fund to pay cash for a house --- or should I continue paying someone else's mortgage (aka: rent)? I am 68 years old, retired, in good health, have no debts and will still have an annual pension income ~$60k.
@Dell7788
Жыл бұрын
Most financial people never tell you if their house is paid off. They trying to mske money online by acting smart but they to are in debt. Im 44 and i buy and sell businesses. Currently selling 2 within the next few months and can pay my house off before 50. 50 always been the goal bevause if you bought at 20 . A 30 year mortgage should be paid by 50. I see it happening sooner but 50 the target. Without a mortgage in todays time you can uber or door dash when you want and make 50k a year. Livimg modest. Thsts many vacstions and half into investments. I have 4 kids and yougest is 13 , oldest 24 so i can focus on them instesd of having to work 60 to 70 hours a week. My dad has a car from the 90s and hss almost 400k miles. Toyota. He so proud he got that car with so many miles. It made me not buy a expensive car. I paid 6k for a car 2011 and its running like a champ. I own 2 box trucks paid for business wise. I dont have credit card debt. No matter with inflation. If you have no debt, no mortgage, then you can travel and be happy off a Walmart salary.
@alexralston22
Жыл бұрын
Why not put the cash in a CD for 4.10 percent annual growth (US Bank Jumbo CD promo). That's a guaranteed paycheck. Do not pay the house off. Your interest rate is too low to pay the house off. It's just math. Drop your money mkt account into the CD for no risk and do not pay the house off. I've asked myself this question. Pay the house off or make the cash work harder than my interest rate?!!!! Wrong answer MR. Ramsey! Love you and you're nearly always right! Get debt free people other than your house because it's a tax shelter and you can make that money work harder for you elsewhere.
@aaront936
2 жыл бұрын
It's simple you shouldn't. I have a 2.5% 30 year fixed I'd have to be financially illiterate to pay extra instead of investing.
@mechy2k2000
2 жыл бұрын
Its a tough call but I think I would pay off the house. Its more about peace of mind then getting the most financial return. I've learned the hard way there is something about having everything paid off and no debt. They can always take a out a HELOC and buy tesla calls if they change mind feel different. 😆😆
@kaycee2396
2 жыл бұрын
@@mechy2k2000 the problem is that you never own your house. failure to pay tax or HOA can result in losing your house. Better to invest that money and use the income from investment to pay house given the low interest rate. If the interest rate was higher, I would pay the house.
@aaront936
2 жыл бұрын
@@mechy2k2000 cool so you can't do math. Why should I take financial advice from someone that can't do math?
@jondoe5305
2 жыл бұрын
@@aaront936 way rather have a paid off house and super low overhead then beable to throw alot every month into investments then trying to Juggle.
@aaront936
2 жыл бұрын
@@jondoe5305 you're plan loses out to compounding interest everytime.
@ccalexander1924
Жыл бұрын
My goal right now is to have my condo paid off in one year. When I looked at how much I owe versus the interest I owe ( the interest I owe is over 20 grand ). I have a cheap HOA fee. My HOA is 200 a month ( I know others who HOA is 800-1200. So i feel 200 a month that covers siding , roof , lawn maintenance, water . Yup. Water. So I would say that’s not bad and my condo is in a very nice neighborhood . I know I would have property tax but just not having a mortgage and thinking of that over 20 grand of interest that can be going toward something else. I also have Roth IRAs and traditional IRAs that never lost in this recession. I am currently a rad tech that takes contracts across the US. I’m making double of what I would make as a staff tech. Right now I’m paying something to publish a book series ( that I believe will make me some money as well long term ). Right now I hate my career and it is stressful traveling so much but I know when I meet my goal of paying off my mortgage ( that I’m hoping will happen within one year ) then I know I can change careers or go part time bc I will not have that mortgage to pay. The only things that I do factor in is surprise things that might happen like a sudden health issue or a sudden pets health issue or car issues or emergency repair on my home. Some things we can’t control so I try my best to always have that emergency stash fund that I don’t touch except for things like that. I am cooking at home , packing my work lunches and I dropped cable. I have just one streaming channel ( HuLu. ). I hope I reach my goal
@JStuartofficial
11 ай бұрын
We have a 2.75% interest rate on our house worth about $550k. Our monthly payment is $1,100. We owe $150k. There is no logical reason for me to pay it off now. Its less than 10% of our income. The bank is basically paying me to borrow the money with inflation. If I had some life sucking monthly payment it makes a lot of sense.
@andrewgeorgelang
Жыл бұрын
Thanks Dave
@edpp6572
Жыл бұрын
Not today - Invest in a high yield CD 5.35% and keep your low Interest mortgage 2.25 % your upside is monthly $600 bucks
@Liberty-wo2iy
Жыл бұрын
BECAUSE THE FEELING OF FREEDOM AND SECURITY IS THE BEST FEELING YOU CAN HAVE. Regardless of what goes on now, OUR HOUSE IS SECURELY OURS...!!!
@randymillhouse791
Жыл бұрын
Unless you default on the property taxes. Then the house is no longer yours.
@cbell5017
Жыл бұрын
Not really. Try skipping that tax bill.
@marcielynn4886
Жыл бұрын
It is your largest monthly expense.
@marenwilliams2787
Жыл бұрын
Depends on the interest rates
@VanilAJ7813
Жыл бұрын
What will Dave Ramsey say to people paying 6 percent interest in mortgage 😢
@drkcyd1
10 ай бұрын
I was happy to see the number that came up when I googled how many millionaires there are. That being said, the 10,000 millionaires study Dave did needs to be updated. 10,000 is just not a large enough sample size
@accordio321
2 жыл бұрын
Could put the leftover (after paying the house off and emergency fund) in T bills, they are even available directly from the treasury.
@matthewbednarik3281
Жыл бұрын
The math says invest instead of paying off your house..... However math does not account for a sense of security and for the variables of life.
@spankynater4242
2 жыл бұрын
Oh dear lord, how can they have that much money and be so clueless as to what to do with it. She should just pay off her house, clearly she does not know how to invest it.
@DrGearHeadSS
2 жыл бұрын
That's why she is calling the show. She is smart enough to ask for help.
@spankynater4242
2 жыл бұрын
@@DrGearHeadSS whether she is smart or not, my question stands.
@Ziegfried82
2 жыл бұрын
@@DrGearHeadSS a sign of wisdom for sure. I remember a woman criticizing me for having a financial advisor when I know so much about investing. I told her it's impossible to know everything and it's far better to get a second opinion than to go through life thinking you know it all. Everyone has blind spots and it takes wisdom and maybe a little humility to accept that.
@jameschaves5723
Жыл бұрын
In her case yes pay the house off. She will never make money on her investments
@kstar1956
2 жыл бұрын
I don’t know about this one. I guess it would make sense if they have no other debt to worry about. She says she wants to retire and if that time is sooner than later then hopefully they will have a good income to live on during retirement.
@Theshadowfang
2 ай бұрын
Should I pay off my house when I have a 2% interest rate?
@chrise3859
Жыл бұрын
Dont get the cult of using 80% of your liquid assets to pay off a mortgagte that is sub 3%, leaving you decades behind to afford to retire. She could last 4 years maybe on 150k. Investing all of it and leaving the mortgage would yield 600 basis points in the spread. Opportunity costs are massive here
@ofcmerchant7442
2 жыл бұрын
Thank you Mr. Ramsey and Mr. Coleman!
@kennethroyer9949
20 күн бұрын
Add the expense of sounding like a Dave Ramsey hater (I AM NOT) at your job what ever mutual funds are in that 401k is what you get to chose. They may or may not be good growth funds. Many have steep fee's eating up your returns. Also this women is obviously very risk adverse. She is the type when she gets her quarterly statement there must never be any decline no matter how small. This type of person you can talk until you are blue in the face and her risk aversion will NEVER GO AWAY!
@DD-vk5yy
2 жыл бұрын
Bad advice. Never pay off a mortgage with your retirement fund. When your older you need that money working for you.
@jaywalk6628
2 жыл бұрын
She sold her home and kept the money then purchased another home with a mortgage, essentially borrowing against her home. PAY IT OFF. How is this hard? Just go right ahead and be proud of paying interest every month to the bank, I'll pass on that deal.
@spankynater4242
2 жыл бұрын
Except, he never said pay off the mortgage with your retirement fund. SMH
@trungphan2550
2 жыл бұрын
That is one stupid advice. 2.35% rate is very cheap money. Why would pay it off?
@SirishaNeelima
6 ай бұрын
Hi Dave, hope you could answer my question. I have a mortgage with 2% interest rate taken 2 years back. I have 13 more years left. I have emergency funds, 401k and 529 in place. Should I payoff mortgage with the extra cashflow or invest in mutual funds (average rate 8%) . I am 40yrs old. Please advise
@disco4535
6 ай бұрын
And what happens if she put her money into the market at an all time high (like we are now), then 3 years from now we hit a bad recession or almost depression and overall market drops 35% 1 month after they retire. Very dangerous
@MrBraceface216
2 жыл бұрын
Do both🤔🧐🤷🏻♂️ My mortgage is $1600 month, but my girlfriend and I contribute $2000 month. We max out our Roth IRA’s, and we each have regular brokerage accounts that we invest in. We’re both travel nurses.
@summerforever6736
2 жыл бұрын
Girlfriend? what is has to do with your house!
@Unami0929
2 жыл бұрын
I host travel nurses in a spare room. Y’all make good money! Many of my guests are trying hard to pay off debt/loans. Me too. It’s a win/win.
@spankynater4242
2 жыл бұрын
@@summerforever6736 he’s just probably trying to brag.
@MrBraceface216
2 жыл бұрын
@@spankynater4242 haha brag that I have a girlfriend?😅
@MrBraceface216
2 жыл бұрын
@@summerforever6736 Split expenses.
@johncameron4194
2 жыл бұрын
Pay it off
@Ryan-um5xe
2 жыл бұрын
Snuggies and shake weights is where I put my money.
@SpoonHurler
2 жыл бұрын
I'm investing all my money in Snuggies cause Dave said too
@summerforever6736
2 жыл бұрын
Gummy bears
@briandalton2200
Жыл бұрын
Bad advice Dave. CDs are now at 5.55% and her mortgage is 2.5%. I also love how your advice always rules out the market going down OR staying the same for many years. It has for over a decade in the 1960s and 1970s.
@paxtonhelms9066
Ай бұрын
Yep, there is a smug confidence about what the market will do that is just not based on facts.
@michaeldonovan7522
2 жыл бұрын
This seems like bad advice… maybe I’m wrong but I have a hard disagree on this one. I know a lot of wealthy people that still have mortgages with good rates.
@user-ne9wp8ve5u
2 жыл бұрын
So do you love giving money to the bank instead of keeping to yourself??
@Ryan-um5xe
2 жыл бұрын
Pay it off!
@teslacybertruck750
2 жыл бұрын
Better than I deserve I love that phrase from Dave
@nicole4779
2 жыл бұрын
This was good, sound advice! Glad I watched
@JasonGroom
2 ай бұрын
She didn't invest it at 0.5% she likely invested it at 5% because it is in a money market, not a general savings account at a bank.
@dr_candiru7817
Жыл бұрын
I don’t see the point my house payment and extra to the principle of $700 a month at 2.75%. Payoff is 138K. I can’t make it it work.
@stevegolacks8731
Жыл бұрын
The weight being lifted off your shoulders when you become mortgage free is a real thing...but so is a large sum of cash in your bank account knowing you can pay off that mortgage with a click of a button, when youre ready.
@formula112967
6 ай бұрын
But the longer you wait to pay off the mortgage, the more interest you pay....I have been really paying down my mortgage....I took my 30 year loan 10 years ago and I am 13 years ahead and have already saved over $60k in interest.
@stevegolacks8731
6 ай бұрын
@@formula112967 , not at all. Because the lump sum of cash is in a 6% CD making more interest than my 3% mortgage.
@basedincali8707
10 ай бұрын
This is blanket statement "advice" to keep it simple and keep boomers paying this guy. Worst advice for someone in that woman's position. She would have made tens of thousands more in this past year alone. The boomer curse continues
@jasonforeman
8 ай бұрын
she could have put her $590,000 into SPY at $391 on Sept 6th, 2022.... today at $499 per share it would be worth $752,966
@tinkwilkinson9446
7 ай бұрын
House loan is 2.75; excess cash currently paying a minimum of 8%; disagree with you.
@MegaThepow
Жыл бұрын
Most of everything is on sale on, which mean time to buy not sell!
@yuriyfromamerica3558
Жыл бұрын
Payoff a 2.35% loan? This is peak bad advice.
@raha1277
Жыл бұрын
If your retired do you need a 3 month emergency fund?
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