He's a liar. This is the study …. just those who call on his show... and he and hulk Hogan will be jotting down the notes.... throw out anyone who's info does not align with his preconceived notion.
@@carianin5293 Not necessarily ..they may have children. If you don’t give your kids everything want and don’t get pulled into the American idea that you have to have everything you want and give your kids everything you can save money. We did it and it was a huge blessing not only to our children but us as well.We raised our kids to not feel entitled and to work hard.
Yup, we started raising my teenage nephew and we spend only a extra $200-300 per month for food, clothing, and other things (yearbook, other essentials, etc). He works a part time job for any extra fun things aside from the occasional treat, bc we are in debt payoff mode. Occasional family outting. As my mom says, kids aren’t too much extra, whatever you want the expense to be on them. You could spend hundreds or thousands. Or thrift around, use hand-me-downs as much as possible etc.
@Derrick Horvath Amen, brother. Mine are not only off the payroll, they both have Masters degrees without loans. The oldest is married and they have their house already paid off at the age of 32. They aren't making the mistakes I made of student loans and car payments right out of college.
$1600/mo adoption subsidy + $2000/mo SS for children in care when drawing retirement =$3600/mo BIG pay raise when kids are on the payroll. I tell people in your state there are 20000+ Kids waiting to be adopted. When one person draws SS retirement, The spouse draws regardless of age, if taking care of kids
I'm paying off my house in 2.5 years. Single mom of 2 kids. Been through Bankruptcy, Divorce and income range: 17,000 - 31,000. It will be paid off in a total of 9 years!!! Thank you Dave!
I thought about doing this, but I deal with people all day for my job. I couldn't deal with people tearing my stuff up. My uncle, and boss all sold theirs. Too much of a hassle.
Bought my home in '99 with a 30 year loan, refi in late '05 to a 15 year loan, and got a drop in interest simultaneously by 1.5%. Began paying extra to principle and got thru the 15 yr loan in 12-13 years. Paid off 14 months ago. Not a huge success story but we do what is possible!
You guys are so amazing! Please pay off your home asap because as soon as you pay off your home, then its yours forever. You will be set for life given your age. I was 56 by the time I paid off my home and my financial life has soared ever since as I still work full- time. I'm now 59. Now have money to travel and drive the car of my choice. I enjoy working and have no plans to retire but I don't have to ever work again if I didnt want to. Paying off my home is the most financially liberating thing I have ever done! Its now worth 1.4 million. I bought it for 750k. Best wishes!
Ttthhhhaaannnnkkk yyyooouuu for your jolting truth! I feel better ...bc these other comments make me feel like I should add cement blocks to my ankles and try to swim.
@@winstonchurchill3597 he bought it for $750k so he probably makes more money than you. He doesn’t have a mortgage so he can probably afford taxes. A lot of states also have homestead exemptions that limit the amount of taxes you pay on a primary residence.
Trouble is homes are not forever. They deteriorate and you have to put a huge amount of resources into keeping them up. A home is not an investment. Yes it's great to have a paid up home - but don't kid yourself that it's some sort of wealth. Unless your gaining income from owning your home and that income surpasses all the upkeep expenses - then it's not wealth, it's not an investment. It's merely a luxury that's mostly paid for, right now at this very moment.
That’s exactly what we did. We put every penny to the mortgage and paid it off in about 8 years and never had a loan of any kind after that. We’ve never had a car loan in our 26 years of marriage. We are the millionaires next door.
@@kristymarie6065 That's what paying off your house is. Stop hopping from one house to the other and just stay in one and focus on paying it off. You will reap the benefits after that believe me.
@Sharon H...I know you’re telling the truth. It’s hard to get my mind overturned but I believe it can be feasible. I just cannot get it through my head and I hate it. How did you think about it?? (Edit to correct.)
18 months ago, our real estate taxes went up $100 a month; homeowners insurance followed suit with $30 per month. We were drowning. Our home was located in a developing part of town with McMansions driving up taxes and insurance. We sold to a developer, bought a beautiful condo cash outright with very low fees, insurance and real estate taxes. We have money in the bank. I got a better paying job and closer to home, husband reinvented himself and his work- increase income. As the new year started, I took on-the remaining debt in a snowball effect budget. I'm down 2 credit cards to date. I'm determined. Thanks Dave Ramsey.
Just want to take a moment to appreciate this couple’s success. Never be jealous of another persons income or current state. People making that kind of money work hard, study hard, sacrifice a lot of their free time, and put in the extra effort. Surround yourself with people you consider successful and you’ll start to see their habits and routines and pick up on a lot of good advice and be motivated to improve yourself.
Don't forget about luck. People for the most part are a product of their environment. For example most people who grow up in the ghetto never leave the ghetto. Don't want to take away the work ethic but unfortunately for a lot of people it doesn't matter how hard they work, they won't ever as achieve financial success because how society is structured.
Great advice, l like your comment. Yes work hard, save your hard earned money $. I realize and l wish l would have been disciplined enough to do this in my earlier yrs, to save more than you spend- this world is nothing but a money trap, buy this buy that, buy stuff to impress- well who’s going to pay that Debt (s) for you- l learned the hard way- but I’m debt free now- l save more than l spend- l need nothing fancy- I’m good with what l have- food, water, and shelter and of course my son
I had a large down payment on a 30 year fixed, then a year and a half later, refinanced at a lower fixed rate dumping more towards the principal on a 10 year mortgage. 11 1/2 years total, paid off.
@@mikeynkoey A year and a half into a 30 year mortgage, I refinanced ( w/lower fixed interest rate ), going to a 10 year mortgage adding to the principal with what I saved in the year and a half I had the 30 year. Then just made regular payment's on the 10 year. I bought a small house. Didn't need a big house - no kid's - ever. I've always lived below my means. Retired @ 57.
Just paid off my house on 13 March 2021. 30 year loan in less than 12. While it feels good right now to know that I’m paid off, I can’t wait to look back on this moment over the years to come.
How did you do it? Walking through the baby steps? Some people cheat and skip investing for retirement and skip funding their kids' college fund. I would not do that.
At 35 years old my husband and I got turned down for a mortgage and was super glad we did as we decided to build a house in cash on our own. Love not having a mortgage
Paid off our mortgage in 12 years & being debt free (no car or CC payment) in our late 30’s (8 years ago) is the absolute best decision my wife & I have ever made...😄
We are just about to start on paying the house off. We are debt free except the house. It is really encouraging seeing how many of you have done it. I can't wait!
I'm disabled and make less than $25k a yeàr. Hope to pay off my $70k mortgage by 45 because I don't anticipate being able to work long term. Reducing expenses now so hopefully I can survive when it gets to that point.
May God keep you healthy and help you pay your mortgage faster. When you have a roof over your head life is easier. You can work for less money or you can live with less when you own a house.
You got this! If you educate yourself on amortization tables and how to live on half your income (which, you may not be able to actually accomplish however, it will give you great ideas) you will do well! It is within reach.
im 24 and ive seen alot of woke news type of stuff trying to tear dave down. but hes the type of person young people like me need to be listening to! even if some people dont want to impliment all of his strategies, the idea behind them all is such a solid foundation for a financial and life mentality.
I've almost paid off my mortgage and now I'm looking to make some investment with the extra income. I've even saved up 40k for this purpose. What is the best way to proceed?
Congrats on that, man. It feels like a very big milestone when you do that. To invest, I think it's about finding the right moment to take advantage of and generate colossal profit, which usually involves a financial advisor. At least that worked for me.
True. Even with the right technique and assets some investors would still make more than other. Personally I had to reach out to a market analyst for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
I’m hesitant to make recommendations like this online so I can't drop her contact here, but you could look her up yourself and contact her if you wish. Her name is Marissa Lynn Babula.
I just bought my first home a month ago, it's a small starter home 20 mins from work and in a quiet small town. I did 30 year to get my payments low, but I'm sending an extra principal payment on top of my regular payment every month. Projected to pay of in 10 years without any sort of lump sum (income tax refund, escrow, savings) thrown at it.
For those who pay the extra principal payments, instead of paying once a month try dividing that amount into 4, and pay that amount every Friday. I did this and it knocks the balance down a little bit faster. Debt free since 2019
People like this make me really happy. Working hard, saving aggressively and not living far over their means. I wish all my clients would be like this! But then I would be out of a job..
Watched this 4 years ago and came back to say I cleared my mortgage and am now officially debt free aged 39. Thankyou for this advice Mr.Ramsey. Wellwisher from the UK.
I paid aggressively on my 30 year until I was happier with the amount going towards interest (reference amortization schedule). I currently pay extra each month but plan on paying base the last 10 years or so when the mortgage company gets very little of the payment.
The way I paid off almost painlessly was to note how much goes to principal and interest each time. Principal is just a small % of the total at the beginning and that was the amount extra I added. The time to pay off was cut down considerably. It has been too long. I paid 72 for the home in 1976 and paid it off in `93 the same year my second graduated college. Was a great year and neither had student loans. I am 77 now and add $75,000 to my holdings each year. Children will be very rich some day.
I don't think people always understand how mortgage interest works. Paying extra on the principal every month greatly reduces your interest paid. Great job!
Paying off the mortgage is as vital as having a running game in football. It isn’t the only way to win the game but it sure does make it so much easier to win if that foundation is set.
Yo this is giving me 2015 Super Bowl vibes lol. Seattle had the foundation to win it all but they wanted to get cute with Russell Wilson throwing the game winner td and they lost it smh
If you read between the lines, Dave really wasn't concerned at all that they have a CC and pay it off every month. He could tell they were making good $ and were responsible. He says that as a blanket rule because the huge majority of people he deals with are financial "alcoholics" and have no discipline whatsoever and don't make that much $ to begin with.
Wife and I plan to focus on paying off our home. Today we made the first extra payment on our principal. It's a long road ahead of us. Sometimes I sit and imagine what life would be like if the mortgage was already paid off.
Entering into a $300k first mortgage (South Florida) is scary thought.. But we’re ready for the challenge and to knock this out ASAP! All thanks goes to Ramsey and his advice putting me in a great position to buy a property here.
If it's any help, we paid off our 100k mortgage balance once the kids finished college in 2016. Took the college money and I paid $200/week towards the principal plus the monthly mortgage. Balance of 57k in 2019 wrote a check for 57k with cash reserves!!! BEST DECISION I'VE EVER MADE. TOTALLY DEBT FREE since 2019...
we just paid off our mortgage. things worked the way they did in 2004 and had an ARM until 2020 and never paid over 3.5%. i got a 15yr fixed at 2% in early 2020. we just paid off the house this month so we now have bumped our work 401k to 15% each, 25 or 30% of any work bonus. we have enough money (mostly settled estate from my parents) that were going to pay our daughter's Masters program as a gift from them to her. were going to need probaby 3-4 months of those previous payments for taxes and insurance. i need some sort of solid investment because my wife and i are both 58/59 and want to retire in a couple of years.
Bought my first house in 2009 (early 30s) paid if off in 2022 (mid 40s). It makes a huge difference! The key to achieving this was we bought a house 25% below what we qualified for and refinanced to a 15 year mortgage as soon as we could financially. Also, almost any extra money (like bonuses, etc) went directly towards extra house payments. Just because you qualify to spend X, doesn't mean you need to spend X.
I’ve only got £6500 left in my house, and double that in the in the bank. I’m tempted to pay it of now. My plan is next April, no fees etc. I cannot wait. I’ve been paying all my life and I really need this gone. I need to save and travel, see this world etc.
So it’s gone! Feels good. So far I’ve had three pay cheques and not saved a bean, nothing, I’ve spent the lot. I guess I’ll settle down soon and start putting it into my S&P index fund. Probs diversify a little too.
Paying off my mortgage in 3 months. My 401-k was an amazing blessing, and I have a pension that doesn't exist for many younger people. I will be 55 in October, and will be living my best life in my latter years.
I make the typical monthly payment on my 27-year or 30-year home mortgage at 2.990%. I have an emergency fund at 6 months of expenses. I instead invest my extra money to grow what I owe on my home rather than to add an extra $1-2K a month to the principal. My ROI on stocks compounds far more than paying extra monthly on the principle. If I keep doing what I'm doing, my home will be paid off in 3-5 years using my stock money specifically designated to pay off my mortgage. If I throw cash at the principal every month, it will take 2X that time. Consider a financial advisor before just throwing money at your principal.
Well any financial advisor should start with saying that investing in stocks comes with risk, and paying principle is risk free. You hope for your stocks ROI to be 2x higher than attacking the mortgage which might be doable with the mortgage interest rate you have, but you need to have in the back of your head the scenario where investing won't go perfectly and you go "ah shit I should've been just paying off the mortgage and would've been better off".
@@gryzew That’s why investing is long term, for me it’s 20 years + on highly managed mutual funds. The dividends alone compound for me too. Don’t forget that. The dips are irrelevant to me because I won’t need this money for at least 2-3 decades.
My answer would've been move out, add that cash to the equity, buy the next cheaper house in cash (what I did this year) in a different area to become debt free. You also make less money but once house is paid off the money accumulate much faster.
Dave Ramsey's insights have been a game-changer for me! His practical approach to financial management has empowered me to take control of my money and work towards a debt-free life. The Total Money Makeover is my go-to guide, and I appreciate how he breaks down complex concepts into easy-to-follow steps.
Paying off my mortgage this week and still almost $500,000 in retirement accts. Will be finally retired next August at 65. Getting there- but it’s been a very long road. My hope is that people in their 30’s and 40’s are getting ready now and not waiting until it’s too late. My ss plus my retirement and a small pension will be more than enough with no housing payment!
I just bought a house...my plan is to have it paid off in 5 years. my family is trying to convince me to "take my time" for the income tax deduction. I've tried to explain how stupid that is...then, there's the theory that you could be compounding interest in a Roth IRA, instead and getting the income credit...Maybe I'm crazy, in my mind, the best thing is to have an emergency fund & get the house paid off.
@@themontephone875 I appreciate the encouragement, because doing that on my single income is an enormous "sacrifice" that will mean choosing the mortgage over having & doing other things. THEN, I think about how great I will feel afterward & know it'll be worth it.
I factored in 2 extra payments a year, divided it between the monthly payments (w/ extra going to principal) from day 1. I don’t think about it because I did it off the bat. Re-fi’d during covid for lower rate and now even more goes to principal. Will pay it more aggressively when I can. We can be creative. God bless.
My friends said it was stupid to finance our house at ten years. Paid it of 4 years ago and they still have almost 20 years left. Not feeling so stupid now. Lol 😂
peartfaldo what is smarter, paying $20,000 in interest to the bank to save $6,500 in taxes or just paying the $6,500 in taxes? Grandma always said, “Don’t drop dollars to pick up pennies.”
Getting a house soon, already have a plan for paying it off in 7 years, everyone is telling me not too and that I'm stupid for spending most of my money that way. I'll see what they say when I'm 37yrs old with a paid off house 😎
Boostang 👍🏽👍🏽👍🏽 Anyone that thinks that’s not the best move is really bad at basic arithmetic or is a hater that wants everyone to make the same bad mistakes they’ve made
@@dr.markevers8331 It's smarter to pay the $6,500 in taxes. Same reason it's smarter to not invest and forfeit $60,000 earnings to save $20,000 in interest to the bank. Right?
Yup. Paid off my mortgage in January. Got laid off in March. Collecting unemployment. Wife is still working and medical insurance is under her. Son has distance learning for school so I can teach him. Established my own consulting business, but hard to get clients when businesses are closed or working from home. Paying off that mortgage was a massive weight off my shoulders.
@@johnhwang339 - Yep. With no mortgage, it makes it easier if you only have one income. Eventually, you will get a 2nd income when your biz takes off or if you get a job. Either way, help is coming.
I understand where your coming from but you still have costly repairs and taxes people need to figure in its not the holy grail paying off a mortgage your in it for the long haul investment yes liability yes
@@JasonCallaghan-q3wstill building equity, if shit really hits the fan you can even do a cash out refinance and put it right back into the home. The whole point is unless the house just falls apart your consistently building wealth paying off a mortgage and when it’s paid off that’s 90% of peoples largest expense and most necessary expense. With that gone you can do so many other things so much easier, your needs can shrink from 50% of your income to 20% or even lower. That is so substantial and that’s what you fail to realize
I finally found a video with someone who didn't have a mortgage balance of $100-$200k! This was super helpful for me. My wife and I do very well (north of $300k annually) and as such, we bought a $900k home. We've been paying extra but we've still got about $680k left on it since we bought under two years ago. We'll have our car paid off in the next 2-3 months and after that, I'm putting extra mortgage payments on overdrive. Debt free by 40 is the goal and if we keep earning what we're earning and attacking this mortgage, we'll no longer be slaves to the banks by 40 and that is my dream!
Firstly congrats on great salaries under 40! My wife & I make about $300k together and I thought it was bad that we owed $320k on a $420k mortgage....I can't imagine having a $900k home! More power to ya!
I know several people who are either retired or close to retired who make from $400,000 to $800,000 a year and have not paid off their mortgage because their CPA told them not to pay it off because of the tax deductions. What a joke, pay your house off now.
Takes me back to when my wife and I were young. DINKs with a cute little house. Sometimes we'd find one of her uncashed paychecks in the drawer because we had more money than we needed. And then we had kids. And now I'm always broke LOL.
InfamousCrimes lol. Dave Ramsey wouldn’t approve of your decision. He would tell you not to financially plan by not having parasites. Have as many as you like. I really don’t like that religion mixed in with his financial advice. But according to the indoctrination you are not complete until you have kids in his book....oh and go to church and tithe....a Christian church that is.
I got married when I was 31 or 32 and my wife is 11 years younger. We bought an older house for $59,900. and have lived there for 36 years. We raised two sons, sent one to private school and paid our house off about 5 years early. I never made more than about $42K and I got hurt on the job and was forced out on a disability. That was twenty years ago. Our home is no showpiece, but it's got a good roof and a good a/c. We don't go out to eat much and pay cash for our vehicles, no cc debt. My wife still works and I have been collecting s/s since 02. I drive my trucks till the doors fall of before I will even look at a new one.
I stumbled on Dave's video's And thankfully i did I bought my house 5 years ago @ $121,500 (modest home ) But with tips I've learned from watching his videos I managed to get my Mortgage down to $85,000 by applying more to principal , i started by paying off the remaining balance owed on my Truck (13k) and that increased my ability to save dramatically My goal is to have my house paid off in 3 more years Definitely motivated and encouraged Thank u Dave
4 years left and I''m trying to live frugal. The bank let's me know if i need to borrow more money I can.... No thanks Bank, I've borrowed enough already
your bank WILL be involved forever. You still have to make a property tax payment and pay insurance on the home in perpetuity. If you live somewhere like NJ or CA, you still will have a monthly payment of AT LEAST $600 a month, even with a house paid off.
My interest rate is so low, it would be dumb for me to take money out of my investments returning 11% to pay interest at 2.5%. I'm gonna let inflation do it's thing to make my mortgage payments even less over the years, and grow that money I would pay towards the mortgage.
I live in Los Angeles. Thank god my family had some money, we live in a house they paid off. My dad still only has like 2 pairs of pants and drives a used Toyota. It’s important to save money. Only pay about 1000 a month in tax/HOA allowing us to put away about 20k a year. If it wasn’t for them we wouldn’t be able to live in a house in LA, good parts at least.
This is great advice for middle class W-2 9-5 employee. Rich people build and grow business with extra cash flow then pay off their house. Rich people will never pay off a mortgage then start business. Funny how he always talks about his 10,000 millionaire study. When you are already a millionaire with a successful business then it’s easy to pay off your mortgage.
You make a premise that rich people are rich before they start a business, as in they inherit their money. The millionaire study showed that is generally not true; people can get rich through working OR starting and building a business; the mortgage payoff can happen anywhere in that process. There is no true correlation as you seem to imply.
About to start paying off a 204k loan @ 30yrs but attacking it as a 10yr at 2.625% interest rate in October. Using all you Success stories as motivation to knock it out. Hope to come back and make Updates as I go.
We bought a bigger house and rented out our smaller house instead of paying off our mortgage at 30. Once that was done, we were still making enough money to pay down our mortgages, but at only 4-5% interest rate, we decided to max out our 401K and Roth contributions to the IRS limit, then pay for some of each of our kids' college through a 529 plan, then max out the 15% towards my company's ESPP, then by my wife's company's private stock offering, then make alternative investments (see what Reserve List Magic the Gathering cards have done since 2015 when I was able to start investing), always keep our cash reserve at the greater of 6 months expenses or 3 months wages, and still be able to send our relatives money when they need it (yeah, most US homeowners are privileged and don't do this). We make a very good amount of money a year, but we also live in one of the highest cost of living areas in the US. Not paying off our mortgage enabled us to make numerous diverse investments that return a higher yield than our mortgage interest rate, plus keeping the deduction. I highly recommend diversifying. If paying off your mortgage means more than 75% of your wealth is in one real estate property, you may find out like many did in 2008-2009 that real estate is far from a sure thing. Think like a wealthy person and diversify to reduce your exposure to a single industry/asset group. So far, by not paying off our 5% mortgage, we were able to use the funds to return an average of 16% over these past 6 years (not counting home value appreciation because that is the same) and someone is actually paying more rent to live in our smaller house than our mortgage. Legally using other people's money to build wealth for my family is a win. Another thing to consider, over the past 10 years interest rates have been at historic lows (~5%). It might not be in a year, it might be in 5 years or it might be in 10 years. However, if interest rates go back up to 7-10%, that 5% loan (and tax deduction) is going to look like a great deal. All you need is investment vehicles that can generate more than 5% over time. You don't want to go too heavily into stock or something, but the 30 year average in the market is over a 10% annual return. Not paying off your mortgage also means you have more liquid cash in case you can't sell your stock or alternative investments that you might already have. If you are not already maxing out your 401K/Roth contributions, or taking advantage of reduced priced investments, that is a really good 1st step instead of paying off your mortgage. Not saying it is right for everyone or even most people. It takes a lot of discipline to even get to the point of making the decision to pay off your mortgage or not. For me, taking advantage of low interest loans to help build wealth for my kids is what drives me.
This program is mainly for those who have had discipline and/or organization problems when it comes to finances. This system works for everyone, but nit everyone needs this system. It’s designed for behavior change; you seem to have always been disciplined, so good on you. Would just be wary about offering this advice to people who aren’t as disciplined and aren’t in control of money - which debt exposes that reality.
I have retirement investments that earn 7-8% in dividends. My 30-year mortgage is at %5. I don't have any other significant debt. I don't see any reason to burn down my higher yielding investments to pay off my mortgage. It doesn't make sense. Can you explain?
Carl Millholland It’s to reduce risk in case you have an emergency and cant make that money anymore. The progress you can make without a house payment is awesome and you can put even more in retirement
Peace of mind and Independence. I've rarely heard of a person say that they regretted paying their mortgage off early. With that being said, i understand what your saying, and I understand the math - you're right. But I choose to pay my mortgage off early and not see $1000/month go to the bank in interest every month. It just burns me. I'll catch back up when I'm done paying it off.
dan cussin I’m retired. Most of my income is dividends. Paying off the mortgage reduces a revenue source that pays a better return than 5%. That’s the balance I work with.
In Romania and similar countries (poland, ukr, etc.), a 2-bedroom apt is 60-80k and you can live with 300-400 euros a month so..i'm so mad i wasn't born as an american, i'd have worked one-two years and then move to a cheaper country and sustain my whole life from it. With 200k euro you can buy 3-4 apartments here and rent each for 300-400 euro a month...
Most financial "advisors" will say the same thing. It's a personal choice, a security of not owing the bank. I personally hate seeing that I pay $1000 month to interest. It is purely wasted money to me. I understand that the extra money I am throwing at my mortgage could bet invested somewhere and get a (historically) higher return but with me it's the satisfaction that I won't be giving it to a bank and I'll be doing a catch up very soon.
Joewilliecleveland I do understand the emotional aspect. I doesn't bother me at all though. I have no debts other than the house, and I will be selling it anyway after the kids are gone. The interest is a deduction for me as well. More capital in the house has no effect on the house appreciation. So I'd rather put any excess cash where it can grow. That's why I'm saying his advice lacks nuance. He doesn't really consider individual circumstances. I'm reminded of a radio financial guy from many years ago who's only advice to everyone was "multi family income property". 90 yeas old, blind, and on social security? Multi family income property! 18 years old and in college? Multi family income property! He actually went bankrupt as I recall.
man i feel good about my rate, i have fixed 30 at 3.5%. Of course I am paying off as fast as I can but in the case of job loss I have built in time savings insurance
The problem with this thinking is essentially putting off enjoying your life now, in order to enjoy it later. If all my extra money was going to towards paying off my house. I would never be able to have nice things or go on cool vacations while I am young. Pay off house young, do fun things when old. Or, do fun things when young, pay off house when old. Also, no guarantee you will even get old to enjoy it. The choice is easy.
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
I'm 27 and my wife is 30. We are making our final house payment tomorrow!
WHAT! amazing!
Your eternity is more important
@@thechiefcornerstone9774 we're Christians too
Congratulations! You’re an inspiration.
By the time you read this you are already paid off great job. I’m 59 and I won’t be done for a year
If I had $1 every time Dave mentioned his study on 10,000 millionaires , he could then say 10,001 millionaires
Underrated
"We did a study" means they got the answers they wanted so they could hock some nonsense for air time. They definitely didn't ask the right questions.
He's a liar. This is the study …. just those who call on his show... and he and hulk Hogan will be jotting down the notes.... throw out anyone who's info does not align with his preconceived notion.
Also his opinions are affected by winner's bias
@@ZaoZaoification It's not "winner's bias" to discount the opinions of those who failed at a goal in "how to achieve this goal".
Paid off my house 4 years ago and it still gives me pleasure just to stare at it knowing there isn't a bank in the loop.
Must be nice having all that extra money each month. Can't wait.
Don’t pay the taxes on it for a year or two and you’ll find out who really owns it quick ;)
@@ALCAN52 Where are these places? besides Florida.....
@@ALCAN52 I didn't know there was places like that. Where are those places?
Guess I might be moving to Alaska when I retire.
I paid off my 🏠 yesterday. God Is Good 🙏🏼
Congrats!
Amen 😇🙏🏽 and congratulations
Congratulations 🎊
💫🌠💫
You must not see the news
I paid off my mortgage in 12 years at the age of 50. Life is good. Thanks Dave Ramsey !!!
You obviously have no children.
@@carianin5293 Not necessarily ..they may have children. If you don’t give your kids everything want and don’t get pulled into the American idea that you have to have everything you want and give your kids everything you can save money. We did it and it was a huge blessing not only to our children but us as well.We raised our kids to not feel entitled and to work hard.
Yup, we started raising my teenage nephew and we spend only a extra $200-300 per month for food, clothing, and other things (yearbook, other essentials, etc). He works a part time job for any extra fun things aside from the occasional treat, bc we are in debt payoff mode. Occasional family outting. As my mom says, kids aren’t too much extra, whatever you want the expense to be on them. You could spend hundreds or thousands. Or thrift around, use hand-me-downs as much as possible etc.
@@saraphillips1038 or if you din't have children with special needs ,lots of expenses with that.
@@sobeliever1638 yes I’m sure in that situation you would definitely have more expenses.
$14,000 left on my mortgage!!
Keep going man!
rckdude12345 keep it up!
Killing it!
You're gonna have the real deed in hand in a year man!
rckdude12345 reply when you finish, rooting for you
I love how she seems so appreciative for what she has.
agreed!
Gratitude goes a long way.
It's called privilege....white people have it, but most refuse to acknowledge it.
@@andyw6996 really? All she is doing is showing gratitude.. what does that have to do with privilege?
@@andyw6996 nahhhhhh, this is definitely NOT about race.
The 2 biggest pay raises I ever got were when the kids finally went off the payroll and the mortgage was paid in full.
Kids are never off
@Derrick Horvath Amen, brother. Mine are not only off the payroll, they both have Masters degrees without loans. The oldest is married and they have their house already paid off at the age of 32. They aren't making the mistakes I made of student loans and car payments right out of college.
$1600/mo adoption subsidy + $2000/mo SS for children in care when drawing retirement =$3600/mo
BIG pay raise when kids are on the payroll.
I tell people in your state there are 20000+ Kids waiting to be adopted.
When one person draws SS retirement, The spouse draws regardless of age, if taking care of kids
InfamousCrimes 👍
@@BullshitMan4 $3600 each month for 4 adopted kids, That's $40K/yr, that's $600K
in 15 Years, MAKE hundreds of thousands of dollars.
I'm paying off my house in 2.5 years. Single mom of 2 kids. Been through Bankruptcy, Divorce and income range: 17,000 - 31,000. It will be paid off in a total of 9 years!!! Thank you Dave!
Congratulations!!!
Rockstar status🥂🍾
You’re a hero ! Well done!
You are a rock star!!!
You go, girl! I'm trying to do the same in the next 2.5 years as a single mom. My goal is to pay it off so I can stop working the night shift.
Paid off our house in 7 years (at age 35), saved that money and bought rental properties. It feels great!
How much debt have you taken on to buy rentals? Any?
Mr Gwarn Stylee $280,000. Paid that off in 10 years. That feels really great
I thought about doing this, but I deal with people all day for my job. I couldn't deal with people tearing my stuff up. My uncle, and boss all sold theirs. Too much of a hassle.
How are your rental properties doing??
Amazing i guys deserve it
Bought my home in '99 with a 30 year loan, refi in late '05 to a 15 year loan, and got a drop in interest simultaneously by 1.5%. Began paying extra to principle and got thru the 15 yr loan in 12-13 years. Paid off 14 months ago. Not a huge success story but we do what is possible!
1redrubberball it doesn’t matter if it’s HUGE, you did it!!! That’s what counts! Congrats!! 💪🏻
@@fanoftoast
Thank you! It feels wonderful!
1redrubberball that’s one huge success story there, bravo 👏🏻
Yes, that is a huge success story!! So many people never accomplish what you have!
Yes. That’s a huge success story. 👍🏻
You guys are so amazing! Please pay off your home asap because as soon as you pay off your home, then its yours forever. You will be set for life given your age. I was 56 by the time I paid off my home and my financial life has soared ever since as I still work full- time. I'm now 59. Now have money to travel and drive the car of my choice. I enjoy working and have no plans to retire but I don't have to ever work again if I didnt want to. Paying off my home is the most financially liberating thing I have ever done! Its now worth 1.4 million. I bought it for 750k. Best wishes!
Ttthhhhaaannnnkkk yyyooouuu for your jolting truth! I feel better ...bc these other comments make me feel like I should add cement blocks to my ankles and try to swim.
1.4 million - I wouldn't want your property tax bill.
As long as Yu pay your taxes!
@@winstonchurchill3597 he bought it for $750k so he probably makes more money than you. He doesn’t have a mortgage so he can probably afford taxes. A lot of states also have homestead exemptions that limit the amount of taxes you pay on a primary residence.
Trouble is homes are not forever. They deteriorate and you have to put a huge amount of resources into keeping them up. A home is not an investment. Yes it's great to have a paid up home - but don't kid yourself that it's some sort of wealth. Unless your gaining income from owning your home and that income surpasses all the upkeep expenses - then it's not wealth, it's not an investment. It's merely a luxury that's mostly paid for, right now at this very moment.
That’s exactly what we did. We put every penny to the mortgage and paid it off in about 8 years and never had a loan of any kind after that. We’ve never had a car loan in our 26 years of marriage. We are the millionaires next door.
Sharon H did you stay in the same home and just pay it off?
@@kristymarie6065 That's what paying off your house is. Stop hopping from one house to the other and just stay in one and focus on paying it off. You will reap the benefits after that believe me.
MJ I agree
@Sharon H...I know you’re telling the truth. It’s hard to get my mind overturned but I believe it can be feasible. I just cannot get it through my head and I hate it. How did you think about it??
(Edit to correct.)
@@matthewkoch6937 spot on mate. Having a stable, quiet life is bliss
Retired. 100% debt free. Loving life. Listen to Dave..follow the steps.
me too Lake
why you still listening ? then haha
@@christophercolumbus8944 he said he listened. That's why he's doing better.
The mental health aspect of the baby steps is so often overlooked.... that piece of mind is so vital!
peace*
18 months ago, our real estate taxes went up $100 a month; homeowners insurance followed suit with $30 per month. We were drowning. Our home was located in a developing part of town with McMansions driving up taxes and insurance. We sold to a developer, bought a beautiful condo cash outright with very low fees, insurance and real estate taxes. We have money in the bank. I got a better paying job and closer to home, husband reinvented himself and his work- increase income. As the new year started, I took on-the remaining debt in a snowball effect budget. I'm down 2 credit cards to date. I'm determined. Thanks Dave Ramsey.
But you have to live in a condo. I know some people are fine with that, but unless I'm over 65 and retired, I wouldn't want to live in one of those.
hehehe money in the bank sounds like baby steps out of order drop that bank down to 1k or pay off those cards 😉
That's a good feeling. Good job!
what are you doing,,
Just want to take a moment to appreciate this couple’s success. Never be jealous of another persons income or current state. People making that kind of money work hard, study hard, sacrifice a lot of their free time, and put in the extra effort. Surround yourself with people you consider successful and you’ll start to see their habits and routines and pick up on a lot of good advice and be motivated to improve yourself.
Don't forget about luck. People for the most part are a product of their environment. For example most people who grow up in the ghetto never leave the ghetto. Don't want to take away the work ethic but unfortunately for a lot of people it doesn't matter how hard they work, they won't ever as achieve financial success because how society is structured.
@@KT-ed8hj nope
@@edgar9739
Keep believing 😂😂😂 We all know the economic system in the US is skewed towards the 1%.
Great advice, l like your comment. Yes work hard, save your hard earned money $. I realize and l wish l would have been disciplined enough to do this in my earlier yrs, to save more than you spend- this world is nothing but a money trap, buy this buy that, buy stuff to impress- well who’s going to pay that Debt (s) for you- l learned the hard way- but I’m debt free now- l save more than l spend- l need nothing fancy- I’m good with what l have- food, water, and shelter and of course my son
I had a 30 year mortgage, paid it off in 11 1/2 years in 03. Well worth it.
bob marker how do you do that, we are in a process of buying a new built home $258,900? 30 years loan. Please explain; greatly appreciated. God bless
SeePrewitt Family just do bi weekly payments and all additional money goes to mortgage.
I had a large down payment on a 30 year fixed, then a year and a half later, refinanced at a lower fixed rate dumping more towards the principal on a 10 year mortgage. 11 1/2 years total, paid off.
bob marker Just to clarify, the monthly payments you made were the same as if you had a 10 year mortgage?
@@mikeynkoey A year and a half into a 30 year mortgage, I refinanced ( w/lower fixed interest rate ), going to a 10 year mortgage adding to the principal with what I saved in the year and a half I had the 30 year. Then just made regular payment's on the 10 year. I bought a small house. Didn't need a big house - no kid's - ever. I've always lived below my means. Retired @ 57.
Paid off our mortgage in 7 yrs. Drove junk vehicles put every dime of overtime at it and lived well below our means. Glory to GOD.
No, glory to YOU.
@@Elizabeth-yg2mg i can't take credit. God gave it all
@Phoenix That's incredible
Thanks
I year later...needed this, thank u.
Just paid off my house on 13 March 2021. 30 year loan in less than 12. While it feels good right now to know that I’m paid off, I can’t wait to look back on this moment over the years to come.
Mine was on March 10th. a 20 year in 14.5.
Great job! mine will be paid by August 2027 or sooner, cutting 17 years off a 30 year mortgage.
Paid off my house in February!!! As Braveheart said.......FFFFRRRREEEEDDDDOOOOMMMM!!!
How did you do it? Walking through the baby steps? Some people cheat and skip investing for retirement and skip funding their kids' college fund. I would not do that.
Ryan Kiel . It’s not cheating. It’s fast track.
Ryan Kiel paying off your house is still also building wealth which will still lead to earlier/better retirement.
Your comment gave me goosebumps! Congratulations!!
@@yesicacortez7971 thanks
At 35 years old my husband and I got turned down for a mortgage and was super glad we did as we decided to build a house in cash on our own. Love not having a mortgage
Just turned 33 yesterday and have 69k left on my first duplex! 3 more years and I'll be debt free with passive income and couldn't be more excited!
How’s it going so far?
Paid off our mortgage in 12 years & being debt free (no car or CC payment) in our late 30’s (8 years ago) is the absolute best decision my wife & I have ever made...😄
Good for you! Most people don’t get this until later in life.
Paying mine off this month! Took 18 years.
well done
We are just about to start on paying the house off. We are debt free except the house. It is really encouraging seeing how many of you have done it. I can't wait!
My house was 228k bought in Dec 2015. I'm down to 58k. Hope to have it paid off by the end of 2021.
Wow that’s so awesome!!
@@dee.mrtinez its paid off!!!!!
Congrats!
Amazing!! Congratulations! 🥳🥳
@@alexarihani2902 congratulations!!! 💕🥳🏡
I'm disabled and make less than $25k a yeàr. Hope to pay off my $70k mortgage by 45 because I don't anticipate being able to work long term. Reducing expenses now so hopefully I can survive when it gets to that point.
May God keep you healthy and help you pay your mortgage faster. When you have a roof over your head life is easier. You can work for less money or you can live with less when you own a house.
You got this!
If you educate yourself on amortization tables and how to live on half your income (which, you may not be able to actually accomplish however, it will give you great ideas) you will do well! It is within reach.
Your post in encouraging for me to not only attack my debt but to decrease spending to train myself for post working budgeting
All the very best Jeremy!
A year ago!! Hope you doing good, please let us know how's going🌞
im 24 and ive seen alot of woke news type of stuff trying to tear dave down. but hes the type of person young people like me need to be listening to! even if some people dont want to impliment all of his strategies, the idea behind them all is such a solid foundation for a financial and life mentality.
I've almost paid off my mortgage and now I'm looking to make some investment with the extra income. I've even saved up 40k for this purpose. What is the best way to proceed?
Congrats on that, man. It feels like a very big milestone when you do that. To invest, I think it's about finding the right moment to take advantage of and generate colossal profit, which usually involves a financial advisor. At least that worked for me.
True. Even with the right technique and assets some investors would still make more than other. Personally I had to reach out to a market analyst for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
I’m hesitant to make recommendations like this online so I can't drop her contact here, but you could look her up yourself and contact her if you wish. Her name is Marissa Lynn Babula.
Thanks a lot for the recommendation. I'll send her an email and I hope I'm able to connect with her
I paid a 25 year mortgage in 15 years - best thing I ever did. I love the security of being mortgage free.
Iain D., we owe 42k on our home; what's the way to go to have this paid off in the next 5yrs?
joe hernandez go get Dave’s total money makeover book. He’ll teach you
@@joehernandez550 save as much as you can dont but that 5 dollar cofee dont get that uber ways of saving it
What about insurance and taxes. The state owns your home, not you. Don't believe me? Stop paying the taxes.
@@miketheyunggod2534 stop pay rent and same thing happens...I rather pay taxes
I just bought my first home a month ago, it's a small starter home 20 mins from work and in a quiet small town. I did 30 year to get my payments low, but I'm sending an extra principal payment on top of my regular payment every month. Projected to pay of in 10 years without any sort of lump sum (income tax refund, escrow, savings) thrown at it.
How's it going with the payments? Did you start on track?
@@tamararene5913 Yes its been going excellent.
That’s what I do, I pay extra $150/mo
@@mspikachu738 I pay extra $450/mo
For those who pay the extra principal payments, instead of paying once a month try dividing that amount into 4, and pay that amount every Friday. I did this and it knocks the balance down a little bit faster. Debt free since 2019
I'm debt free, bought and paid off my house in 5 years. I'm 46 and what a great feeling it is !!!
Are you single
People like this make me really happy. Working hard, saving aggressively and not living far over their means.
I wish all my clients would be like this! But then I would be out of a job..
What job is that?
Ling Lee I do financial and managerial consulting for businesses. I have a few videos on my channel that cover pretty much what I consult on.
It's cool that you are learning still
Daniel Iles - Small Business . Huh?? Mr. Iles, what are you trying to say?
I can't believe you guys all fall for his bait scam
Watched this 4 years ago and came back to say I cleared my mortgage and am now officially debt free aged 39.
Thankyou for this advice Mr.Ramsey.
Wellwisher from the UK.
Welly Welly Welly!
Thats awesome. This is my goal too
David would thank you for your support of his program
Paid off my mortgage a few years ago. Just paying off small debts now. It's a good feeling
@Sophia Smith Nope
*Making Good money is one thing, managing it once you have it is another, and they seem to have done a good job at both.* 💪
I see you everywhere lol
Making legitimate RUclips comments is one thing, advertising your channel through commenting on finance videos is another. You are great at one.
Black Vito - Moneyology not everyone can earn that kind of money working at a job
I paid aggressively on my 30 year until I was happier with the amount going towards interest (reference amortization schedule). I currently pay extra each month but plan on paying base the last 10 years or so when the mortgage company gets very little of the payment.
The way I paid off almost painlessly was to note how much goes to principal and interest each time. Principal is just a small % of the total at the beginning and that was the amount extra I added. The time to pay off was cut down considerably. It has been too long. I paid 72 for the home in 1976 and paid it off in `93 the same year my second graduated college. Was a great year and neither had student loans.
I am 77 now and add $75,000 to my holdings each year. Children will be very rich some day.
No. DR will not agree to that
Now spend some on your self
Children will get something later
I don't think people always understand how mortgage interest works. Paying extra on the principal every month greatly reduces your interest paid. Great job!
$247,906.41 left on the mortgage. Plan is to pay it off in 5 years. Hope I remember this post so I can do a 5 year update.
Shoot $1M home!
Put a Google calendar reminder to share with us, if your Google account is still relevant then...lol
What’s your income?
What's your income and what are your plans to accomplish this? No other debts, children, etc?
Similar. I have £185,600 left to pay and a 4 year target to get rid of that too.
Paying off the mortgage is as vital as having a running game in football. It isn’t the only way to win the game but it sure does make it so much easier to win if that foundation is set.
Yo this is giving me 2015 Super Bowl vibes lol. Seattle had the foundation to win it all but they wanted to get cute with Russell Wilson throwing the game winner td and they lost it smh
I love Dave's positivity in this video !
On my way to pay off our home.!! God bless everyone and keep fighting for your dreams. Thank you Dave.
Great job! Paid mine off in 12 years at the end of 2020. It has been great!
If you read between the lines, Dave really wasn't concerned at all that they have a CC and pay it off every month. He could tell they were making good $ and were responsible. He says that as a blanket rule because the huge majority of people he deals with are financial "alcoholics" and have no discipline whatsoever and don't make that much $ to begin with.
Ryan De Witt Agreed.
Ryan De Witt man at 240k a year a credit card 💳 is negligible.
@@themasterteacher you'd be surprised
Well he needs to clarify that then, each time, so there's no misunderstanding.
You all are justifying your credit card usage.
Wife and I plan to focus on paying off our home. Today we made the first extra payment on our principal. It's a long road ahead of us. Sometimes I sit and imagine what life would be like if the mortgage was already paid off.
Entering into a $300k first mortgage (South Florida) is scary thought.. But we’re ready for the challenge and to knock this out ASAP! All thanks goes to Ramsey and his advice putting me in a great position to buy a property here.
Update?
If it's any help, we paid off our 100k mortgage balance once the kids finished college in 2016. Took the college money and I paid $200/week towards the principal plus the monthly mortgage. Balance of 57k in 2019 wrote a check for 57k with cash reserves!!! BEST DECISION I'VE EVER MADE. TOTALLY DEBT FREE since 2019...
This might be your best advice yet ! ..thank you happy new year...paid off my home at 40 ...life is easier now.
we just paid off our mortgage. things worked the way they did in 2004 and had an ARM until 2020 and never paid over 3.5%. i got a 15yr fixed at 2% in early 2020.
we just paid off the house this month so we now have bumped our work 401k to 15% each, 25 or 30% of any work bonus. we have enough money (mostly settled estate from my parents) that were going to pay our daughter's Masters program as a gift from them to her. were going to need probaby 3-4 months of those previous payments for taxes and insurance.
i need some sort of solid investment because my wife and i are both 58/59 and want to retire in a couple of years.
Bought my first house in 2009 (early 30s) paid if off in 2022 (mid 40s). It makes a huge difference! The key to achieving this was we bought a house 25% below what we qualified for and refinanced to a 15 year mortgage as soon as we could financially. Also, almost any extra money (like bonuses, etc) went directly towards extra house payments. Just because you qualify to spend X, doesn't mean you need to spend X.
I love your videos Dave. Your a great example of what a human being should be.
Interesting name because I think Singh is a sirname
I feel the same way. His teachings helped me break the cycle of generational poverty.
I’ve only got £6500 left in my house, and double that in the in the bank. I’m tempted to pay it of now. My plan is next April, no fees etc. I cannot wait. I’ve been paying all my life and I really need this gone. I need to save and travel, see this world etc.
So it’s gone! Feels good. So far I’ve had three pay cheques and not saved a bean, nothing, I’ve spent the lot. I guess I’ll settle down soon and start putting it into my S&P index fund. Probs diversify a little too.
I Paid off our house in 10 yr (at age 40) it feels great
Paying off my mortgage in 3 months. My 401-k was an amazing blessing, and I have a pension that doesn't exist for many younger people. I will be 55 in October, and will be living my best life in my latter years.
I sold my house right at the peak and made $235k. I bought another smaller house outright and I’m mortgage free🎉
Paid off house in 10 years and was able to retire real early.
Wow! What's the value
Nathaniel Carreon same here! How old are you?
That's what I'm aiming for I'm 31 have 4 years left to pay off house and I'm hoping to retire at 50 or 55. If that.
ALCAN52 congrats!
💃🏾💃🏾💃🏾💃🏾💃🏾 I know that’s right!
24 years old. Paying mortgage off tomorrow as a big lump sum! Can not wait
Congratulations!
You're 24?? Dang. Im 25 and just starting my mortage payment. Took my way to long to realize i needed to lock in
@@guanedits6349 sweetie you are way ahead of the game at 25 trust me
Great Job in paying off mortgage, STAY DEBT FREE!!!!
@@guanedits6349 small payments extra each month add up!!
OMG - we paid off our house in 10 years and never borrowed any money again. And now we are multimillionaires.
Nice what do you do for work?
Just paid of my house here Adelaide Australia 🇦🇺. The real estate market in OZ is crazy
I make the typical monthly payment on my 27-year or 30-year home mortgage at 2.990%. I have an emergency fund at 6 months of expenses. I instead invest my extra money to grow what I owe on my home rather than to add an extra $1-2K a month to the principal. My ROI on stocks compounds far more than paying extra monthly on the principle. If I keep doing what I'm doing, my home will be paid off in 3-5 years using my stock money specifically designated to pay off my mortgage. If I throw cash at the principal every month, it will take 2X that time. Consider a financial advisor before just throwing money at your principal.
Well any financial advisor should start with saying that investing in stocks comes with risk, and paying principle is risk free. You hope for your stocks ROI to be 2x higher than attacking the mortgage which might be doable with the mortgage interest rate you have, but you need to have in the back of your head the scenario where investing won't go perfectly and you go "ah shit I should've been just paying off the mortgage and would've been better off".
@@gryzew That’s why investing is long term, for me it’s 20 years + on highly managed mutual funds. The dividends alone compound for me too. Don’t forget that. The dips are irrelevant to me because I won’t need this money for at least 2-3 decades.
paid cash for our home 10 years ago in las vegas,nv. best thing we ever did.
My answer would've been move out, add that cash to the equity, buy the next cheaper house in cash (what I did this year) in a different area to become debt free. You also make less money but once house is paid off the money accumulate much faster.
Sang Kim housing in SD is so expensive, that your idea would be hard to implement. Her house is relatively modest in CA.
Dave Ramsey's insights have been a game-changer for me! His practical approach to financial management has empowered me to take control of my money and work towards a debt-free life. The Total Money Makeover is my go-to guide, and I appreciate how he breaks down complex concepts into easy-to-follow steps.
Nice plug
Paying off my mortgage this week and still almost $500,000 in retirement accts. Will be finally retired next August at 65. Getting there- but it’s been a very long road. My hope is that people in their 30’s and 40’s are getting ready now and not waiting until it’s too late. My ss plus my retirement and a small pension will be more than enough with no housing payment!
I just bought a house...my plan is to have it paid off in 5 years. my family is trying to convince me to "take my time" for the income tax deduction. I've tried to explain how stupid that is...then, there's the theory that you could be compounding interest in a Roth IRA, instead and getting the income credit...Maybe I'm crazy, in my mind, the best thing is to have an emergency fund & get the house paid off.
They’ve lost their minds. They forgot that it was how it was years ago.
You’re the new generation! Go for it!
@@themontephone875 I appreciate the encouragement, because doing that on my single income is an enormous "sacrifice" that will mean choosing the mortgage over having & doing other things. THEN, I think about how great I will feel afterward & know it'll be worth it.
I paid my house off in 2011, 100% debt free - It will change your life. Ignore Dave at your own peril.
Ignore Dave? So why are you here?
@@themontephone875 Read the whole sentence, if you ignore Dave it may cause you peril... get it?
Yup. We did too. It’s amazing how much you can save with no mortgage payment
Starting to add $500 on the principal payment this past month. Goal is to pay off our house in the next 10 years. Let’s go!
I felt like Andy Dufresne when he escaped Shawshank when I paid off my home.
😂
Haha. Get busy livin or get busy dyin
I factored in 2 extra payments a year, divided it between the monthly payments (w/ extra going to principal) from day 1. I don’t think about it because I did it off the bat. Re-fi’d during covid for lower rate and now even more goes to principal. Will pay it more aggressively when I can. We can be creative. God bless.
My friends said it was stupid to finance our house at ten years. Paid it of 4 years ago and they still have almost 20 years left.
Not feeling so stupid now. Lol 😂
"Yeah...but now you have nothing to write off." Don't you love that one;-)
peartfaldo what is smarter, paying $20,000 in interest to the bank to save $6,500 in taxes or just paying the $6,500 in taxes? Grandma always said, “Don’t drop dollars to pick up pennies.”
Getting a house soon, already have a plan for paying it off in 7 years, everyone is telling me not too and that I'm stupid for spending most of my money that way. I'll see what they say when I'm 37yrs old with a paid off house 😎
Boostang 👍🏽👍🏽👍🏽
Anyone that thinks that’s not the best move is really bad at basic arithmetic or is a hater that wants everyone to make the same bad mistakes they’ve made
@@dr.markevers8331 It's smarter to pay the $6,500 in taxes. Same reason it's smarter to not invest and forfeit $60,000 earnings to save $20,000 in interest to the bank. Right?
I sleep much better at night without a mortgage!
Yup. Paid off my mortgage in January. Got laid off in March. Collecting unemployment. Wife is still working and medical insurance is under her. Son has distance learning for school so I can teach him.
Established my own consulting business, but hard to get clients when businesses are closed or working from home.
Paying off that mortgage was a massive weight off my shoulders.
Your words are inspirational! Keeping young people like myself working towards financial freedom!
@@youtubecommentsgivemehope5449 go for it. you can do it. remember...its not what you make...its what you spend.
@@johnhwang339 - Yep. With no mortgage, it makes it easier if you only have one income. Eventually, you will get a 2nd income when your biz takes off or if you get a job. Either way, help is coming.
Focused on the mortgage. I owe 112k as of January 1st. I'm trying really hard to knock that out in 24 months. Lord willing and the creek don't rise!!
thats the spirit keep it up
You got this!
I understand where your coming from but you still have costly repairs and taxes people need to figure in its not the holy grail paying off a mortgage your in it for the long haul investment yes liability yes
@@JasonCallaghan-q3wstill building equity, if shit really hits the fan you can even do a cash out refinance and put it right back into the home. The whole point is unless the house just falls apart your consistently building wealth paying off a mortgage and when it’s paid off that’s 90% of peoples largest expense and most necessary expense. With that gone you can do so many other things so much easier, your needs can shrink from 50% of your income to 20% or even lower. That is so substantial and that’s what you fail to realize
@@JasonCallaghan-q3wit’s definitely not as bad as other liabilities and it builds value if you do it correctly
I finally found a video with someone who didn't have a mortgage balance of $100-$200k! This was super helpful for me. My wife and I do very well (north of $300k annually) and as such, we bought a $900k home. We've been paying extra but we've still got about $680k left on it since we bought under two years ago.
We'll have our car paid off in the next 2-3 months and after that, I'm putting extra mortgage payments on overdrive. Debt free by 40 is the goal and if we keep earning what we're earning and attacking this mortgage, we'll no longer be slaves to the banks by 40 and that is my dream!
Firstly congrats on great salaries under 40! My wife & I make about $300k together and I thought it was bad that we owed $320k on a $420k mortgage....I can't imagine having a $900k home! More power to ya!
I know several people who are either retired or close to retired who make from $400,000 to $800,000 a year and have not paid off their mortgage because their CPA told them not to pay it off because of the tax deductions. What a joke, pay your house off now.
My dad used to always tell me: "if you have to borrow money, borrow it from yourself."
Takes me back to when my wife and I were young. DINKs with a cute little house. Sometimes we'd find one of her uncashed paychecks in the drawer because we had more money than we needed. And then we had kids. And now I'm always broke LOL.
if you set your self up, so say you have kids at 30, you do everything to have the house paid off by then, make it a lot easier,
InfamousCrimes lol. Dave Ramsey wouldn’t approve of your decision. He would tell you not to financially plan by not having parasites. Have as many as you like. I really don’t like that religion mixed in with his financial advice. But according to the indoctrination you are not complete until you have kids in his book....oh and go to church and tithe....a Christian church that is.
Kids are they are commonly known, I refer to them as Ferrari's which financially is probably still not even accurate
@@77Tadams Yea I also hate that. He would say oh yea give hundreds each month to the church but if you did that with a car you are insane.
logdon17 o
I got married when I was 31 or 32 and my wife is 11 years younger. We bought an older house for $59,900. and have lived there for 36 years. We raised two sons, sent one to private school and paid our house off about 5 years early. I never made more than about $42K and I got hurt on the job and was forced out on a disability. That was twenty years ago. Our home is no showpiece, but it's got a good roof and a good a/c. We don't go out to eat much and pay cash for our vehicles, no cc debt. My wife still works and I have been collecting s/s since 02. I drive my trucks till the doors fall of before I will even look at a new one.
Most women will leave a man if he gets sick or injured.
👍👍
400k to go. I hope to pay it off in the coming 3 years with the help of God.
We paid off our mortgage 12 years early. Yippie-Skippie!
I stumbled on Dave's video's
And thankfully i did
I bought my house 5 years ago
@ $121,500 (modest home )
But with tips I've learned from watching his videos I managed to get my Mortgage down to $85,000 by applying more to principal , i started by paying off the remaining balance owed on my Truck (13k) and that increased my ability to save dramatically
My goal is to have my house paid off in 3 more years
Definitely motivated and encouraged
Thank u Dave
4 years left and I''m trying to live frugal. The bank let's me know if i need to borrow more money I can.... No thanks Bank, I've borrowed enough already
There is nothing quite like having no debt at all. Sigh of relief when I paid off the mortgage.
your bank WILL be involved forever. You still have to make a property tax payment and pay insurance on the home in perpetuity. If you live somewhere like NJ or CA, you still will have a monthly payment of AT LEAST $600 a month, even with a house paid off.
$250,000 in CA is like $100,000 anywhere else.
Ya it’s not much
No joke.
So true
My interest rate is so low, it would be dumb for me to take money out of my investments returning 11% to pay interest at 2.5%. I'm gonna let inflation do it's thing to make my mortgage payments even less over the years, and grow that money I would pay towards the mortgage.
I live in Los Angeles. Thank god my family had some money, we live in a house they paid off. My dad still only has like 2 pairs of pants and drives a used Toyota. It’s important to save money. Only pay about 1000 a month in tax/HOA allowing us to put away about 20k a year. If it wasn’t for them we wouldn’t be able to live in a house in LA, good parts at least.
A nice honest answer. How refreshing!!
Paid cash for my first home. Still have it. Paying off the second now. Once I have that paid off, it's on to a third. I like real estate.
Bought our house when I was 24, will be paid off when I’m 40-42. The plan is to be able to retire by 55.
You’ll pay it off before 29-what are you waiting for?
??? I’d like to have some life with my terminally ill wife and one child. Not sure what you mean exactly. Life isn’t just about paying bills.
This is great advice for middle class W-2 9-5 employee. Rich people build and grow business with extra cash flow then pay off their house. Rich people will never pay off a mortgage then start business. Funny how he always talks about his 10,000 millionaire study. When you are already a millionaire with a successful business then it’s easy to pay off your mortgage.
You make a premise that rich people are rich before they start a business, as in they inherit their money. The millionaire study showed that is generally not true; people can get rich through working OR starting and building a business; the mortgage payoff can happen anywhere in that process. There is no true correlation as you seem to imply.
About to start paying off a 204k loan @ 30yrs but attacking it as a 10yr at 2.625% interest rate in October. Using all you Success stories as motivation to knock it out. Hope to come back and make Updates as I go.
We paid ours off in 9.5 years. The sense of freedom is immense.
The mrs and I were making very good money for a few years so we paid off our house in 30 months, it feel so good to be debt free.
Wow! 30 months sounds much better than 2.5 years
She should plan for when they have children. Live on only 1 income. Having a child changes everything financially but its such a blessing.
We bought a bigger house and rented out our smaller house instead of paying off our mortgage at 30. Once that was done, we were still making enough money to pay down our mortgages, but at only 4-5% interest rate, we decided to max out our 401K and Roth contributions to the IRS limit, then pay for some of each of our kids' college through a 529 plan, then max out the 15% towards my company's ESPP, then by my wife's company's private stock offering, then make alternative investments (see what Reserve List Magic the Gathering cards have done since 2015 when I was able to start investing), always keep our cash reserve at the greater of 6 months expenses or 3 months wages, and still be able to send our relatives money when they need it (yeah, most US homeowners are privileged and don't do this).
We make a very good amount of money a year, but we also live in one of the highest cost of living areas in the US. Not paying off our mortgage enabled us to make numerous diverse investments that return a higher yield than our mortgage interest rate, plus keeping the deduction. I highly recommend diversifying. If paying off your mortgage means more than 75% of your wealth is in one real estate property, you may find out like many did in 2008-2009 that real estate is far from a sure thing. Think like a wealthy person and diversify to reduce your exposure to a single industry/asset group. So far, by not paying off our 5% mortgage, we were able to use the funds to return an average of 16% over these past 6 years (not counting home value appreciation because that is the same) and someone is actually paying more rent to live in our smaller house than our mortgage. Legally using other people's money to build wealth for my family is a win.
Another thing to consider, over the past 10 years interest rates have been at historic lows (~5%). It might not be in a year, it might be in 5 years or it might be in 10 years. However, if interest rates go back up to 7-10%, that 5% loan (and tax deduction) is going to look like a great deal. All you need is investment vehicles that can generate more than 5% over time. You don't want to go too heavily into stock or something, but the 30 year average in the market is over a 10% annual return. Not paying off your mortgage also means you have more liquid cash in case you can't sell your stock or alternative investments that you might already have. If you are not already maxing out your 401K/Roth contributions, or taking advantage of reduced priced investments, that is a really good 1st step instead of paying off your mortgage. Not saying it is right for everyone or even most people. It takes a lot of discipline to even get to the point of making the decision to pay off your mortgage or not. For me, taking advantage of low interest loans to help build wealth for my kids is what drives me.
This program is mainly for those who have had discipline and/or organization problems when it comes to finances. This system works for everyone, but nit everyone needs this system. It’s designed for behavior change; you seem to have always been disciplined, so good on you. Would just be wary about offering this advice to people who aren’t as disciplined and aren’t in control of money - which debt exposes that reality.
Great comment!!
Paying off your mortgage early “IF” you have a low IR is a horrible use of capital.
Today was my last house payment!!!! 350k paid in 26 years!!!!! I have no clue what to do with the extra money. 🤣
I owe 10,000$ on my mortgage and am 35 year old ....yessssss
I have retirement investments that earn 7-8% in dividends. My 30-year mortgage is at %5. I don't have any other significant debt. I don't see any reason to burn down my higher yielding investments to pay off my mortgage. It doesn't make sense. Can you explain?
Carl Millholland It’s to reduce risk in case you have an emergency and cant make that money anymore. The progress you can make without a house payment is awesome and you can put even more in retirement
Peace of mind and Independence. I've rarely heard of a person say that they regretted paying their mortgage off early. With that being said, i understand what your saying, and I understand the math - you're right. But I choose to pay my mortgage off early and not see $1000/month go to the bank in interest every month. It just burns me. I'll catch back up when I'm done paying it off.
dan cussin I’m retired. Most of my income is dividends. Paying off the mortgage reduces a revenue source that pays a better return than 5%. That’s the balance I work with.
In Romania and similar countries (poland, ukr, etc.), a 2-bedroom apt is 60-80k and you can live with 300-400 euros a month so..i'm so mad i wasn't born as an american, i'd have worked one-two years and then move to a cheaper country and sustain my whole life from it. With 200k euro you can buy 3-4 apartments here and rent each for 300-400 euro a month...
If I followed Dave's advice, I would be paying off 2.65 APR 30 year mortgage rather than investing in balanced portfolio returning 7.5 annually.
What country are you from?
Did a cash out refinance to 15 years at 2.75% fixed back in 2016. Not paying a dime extra on it with a rate almost equal to inflation.
Which makes total sense, as long as you use the cash wisely. Dave's advice here completely lacks nuance.
Most financial "advisors" will say the same thing. It's a personal choice, a security of not owing the bank. I personally hate seeing that I pay $1000 month to interest. It is purely wasted money to me. I understand that the extra money I am throwing at my mortgage could bet invested somewhere and get a (historically) higher return but with me it's the satisfaction that I won't be giving it to a bank and I'll be doing a catch up very soon.
Joewilliecleveland I do understand the emotional aspect. I doesn't bother me at all though. I have no debts other than the house, and I will be selling it anyway after the kids are gone. The interest is a deduction for me as well. More capital in the house has no effect on the house appreciation. So I'd rather put any excess cash where it can grow.
That's why I'm saying his advice lacks nuance. He doesn't really consider individual circumstances. I'm reminded of a radio financial guy from many years ago who's only advice to everyone was "multi family income property". 90 yeas old, blind, and on social security? Multi family income property! 18 years old and in college? Multi family income property! He actually went bankrupt as I recall.
man i feel good about my rate, i have fixed 30 at 3.5%. Of course I am paying off as fast as I can but in the case of job loss I have built in time savings insurance
The problem with this thinking is essentially putting off enjoying your life now, in order to enjoy it later. If all my extra money was going to towards paying off my house. I would never be able to have nice things or go on cool vacations while I am young. Pay off house young, do fun things when old. Or, do fun things when young, pay off house when old. Also, no guarantee you will even get old to enjoy it. The choice is easy.