Should I Pay Down My Mortgage Or Save For Retirement?

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[@SkinnyJennyVSG]

I'm so grateful to know as much as I do at 36. Debt free,maxing my retirement and my mortgage will be paid off in 4 years. I came from nothing and my parents are living off the government. Im changing my family tree.

[@youngjedi5599]

SkinnyJenny_VSG similar story we have.

[@hollyb6885]

Same here.

[@clair233]

So cool ! Please tell us your story x

[@3bdullah93s]

YOU ARE A ROCKSTAR !!! KEEP THE HARD WORK 🤩

[@bee5961]

Weldone!! You go girl!!!

[@JenniferBeeston]

I literally have people call me to take money out of their homes to buy speculative investments. It’s the worst idea in the world and I always tell my clients that . Your house is not a piggy bank to invest with. It is the roof over your head

[@deepatterson1835]

$145,000 income is really $95,000 net. Dave should start using take home pay first instead of gross.🤔

[@triad6425]

Does it really change his advice? Is it hard to invest 30k and live on $65k after taxes???

[@camilla4547]

Listen. The guy is already 60. He’s gonna be ok. Dave tellls him to live on beans and rice in his 60’s.

[@andytaylor1588]

@@camilla4547 If he suddenly needs to retire and his wife suddenly needs to retire, both for medical reasons, then beans and rice will be more like fish head soup.

[@fpsoftdev]

Maybe they should tell him take home pay and not pre tax pay.

[@superfly19751]

Dee Patterson Exactly! Davey must not been pay his taxes 😂😀

[@toscatattertail9813]

I pushed to pay off my mortgage 3 years ago, i am so thankful i did. I have one less thing to worry about now.

[@eyeheartsushi2212]

That’s wonderful.

[@Scorpiomaj27889]

If I'm 59 and broke I'm scared sh*tless that I won't ever be able to retire, yet it sounds like he's not sure he wants to sacrifice. Life everything in life, pay now or pay later, but you always pay.

[@annstillwell730]

I've just accepted ill always be working.

[@GavinScrimgeour]

Hello, hope you’re doing okay.

[@dianad3080]

I'm debt-free, mortgage paid off and a good portion of my money after paying bills (less than $1200 monthly) goes towards retirement (15 years to go to retire at 62, although I prefer 60, will see). It's peace of mind right now which is priceless.

[@jerrymaushard3835]

I love how Dave never considers tax. I am a believer in his teachings. A guy making 140k will pay at least 45k with all the taxes. Income, property sales, etc

[@eckelnp1]

I was thinking the same thing watching this. I love Dave, but there was 0 consideration of taxes

[@fisher9915]

I enjoy watching daves videos but i would like to know what is the value he puts on life itself? I watched my parents scrimp and save so they could pay off all thier debts and thier mortgage early, retire and enjoy traveling the us, only to watch my mother die from cancer at the early age of 52yrs old. Insurance paid most of the cost but it still consumed a lot of thier savings. The facts are that many people will live like a pauper so they may enjoy retirement only to die early. Never having the opportunity to fully enjoy life. I believe you have to find a happy medium between savings, living debt free and also enjoying life. We are only here for a short while, enjoy life while you can.

[@overcomer4226]

I'm 55 single female. My stepfather just died at almost age 90. He knew how to live he was engaged with life he was up on cultural events and world events he put people before things. His deaf showed me that I may not have till I'm 90 my financial advisor projects me out to age 90 but I may not have that long life can go at any time I could die at any time I have a ton of money in a bank but I live below my means I have a house that's an absolute squalor. Every time I try to remodel I get nailed with some huge financial situation what I'm going through now is that I have to care for my mother I can't leave the house for less than 200 bucks A-day for her care. I make a decent income but I'm self employed and a ton of my money goes out the door for taxes health insurance and savings. My mortgage is small but I am bound and determined to be debt free and when that happens I'm quitting my job and I'm gonna do something fun and rewarding and I don't give a shed if I make money or not. We only have today right now all we have is now. Your points are very valid we should live and enjoy our life while we can and I think there is a balance between being smart and putting something away for to morrow and living and enjoying ourselves right now

[@jakemf1]

fisher9915 well put

[@bluesnjax9134]

Sorry to hear about your mom. Imagine how much more difficult the following years would have been with increased financial difficulties.

[@fernandopereira4299]

I share the exact sentiment with you. It always boils down to balance in your life. Yes, have a budget and have a financial plan but don't stop living. Life is too short.

[@ryanward9625]

Another question to ask is what if she anticipated dying young and didn’t save anything? Also, what kind of legacy did she want to leave her family? I think it’s far better to plan for a long life and lasting wealth by saving as much as possible. I hate when people say “what if you die tomorrow? You can’t take it with you!” That is such an idiotic thing to say because what if I live to 110 and didn’t plan for it?...

[@AnnMitt]

Live way below your means. Key.

[@carojames6776]

Some people find it difficult to curb that spend spend habit.

[@taskcasburn6086]

Spending less than 30% of what you make every paycheck (save for living, rent or utility bill costs aside. Which is probably around 25% of working people's income and an unavoidable expense. Which means that 5-15% should be going for food and clothing needs, maybe medical if needed and a rare and occasional treat like eating out). If you make around 2k a month or even for someone who makes only 1.5k a month that means you should easily be able to put 500$ away every month, at least. Minus rent which should be around 500-700 and no more and if these people live in a place with high cost of living, MOVE. That simple.) That's a 6 grand surplus in finances for minimum wagers every year not counting what you may get back after tax filing and even the social security safety nets you can take advantage of (As much as I hate the idea of people abusing the system like that). If third worlders can come to these shores and do that for their entire family it's a shame that natural born citizens can't do that for just themselves. Even people with children can do this living on canned food, rice and juice. The problem is, most people are too proud or too foolish or both, to do it.

[@WeaponX-mk6lo]

Ramsey just outlined a new successful life plan for this guy, and the only thing he can focus on and is hung up on is " you really want me to cut up my credit card? Buts it's only 2%?!"

[@alexJohnson9119]

He didn't factor in income tax and other deductions. They're not taking home $145k.

[@Maggabklyn]

That is exactly what I was wondering

[@baronvonnembles]

Are you suggesting that Dave Ramsey is playing a bit fast and loose with the math? lol

[@Pandoraaaa408]

Mark Johnson Dave NEVER factors in income taxes. It’s really perplexing ..🤔

[@jasonhart3888]

Well he should tell his net.

[@donhill1825]

I don't understand what point the "Dave doesn't factor in taxes waaaaa!" crowd is trying to make. The advice/philosophy doesn't really change. Dave isn't sitting down & making a detailed financial plan. He's hosting a radio show. They have to make these obvious tax adjustments themselves. PERSONAL finance.

[@tejashyamgopal]

What’s wrong with rice and beans…some fried sardines on the side and life is good…Love Dave’s no BS personality…

[@JB23669]

Doctor: how do you feel after triple bypass surgery? Dave: better than I deserve

[@me_not_me]

😂

[@poopcanothegreat9947]

Random Person: good morning Dave. Dave: what’s your household income?

[@navdeepdhaliwal3854]

Poopcano the Great random person: better than i deserve

[@jacksonpuckett6115]

Hey Dave, nice to meet you! I'm a huge fan! How much debt do you have?

[@kaohsiung99]

@@jacksonpuckett6115 Hey Dave, nice to meet you! I'm a huge fan! ------ "You need to get on beans and rice." replies Dave Ramsey.

[@Trejokjw]

You know, in his defense, there are some of us who didn't know the concept of paying more than the payment on things. So, he sees that he has to pay for the full 30 years. Once he starts seeing how it will shorten that mortgage, I think he will get more focused!

[@lowermichigan4437]

He is focused on the rates and ignoring the risks of staying in debt. The risk factor is often ignored.

[@rangerdoc1029]

That's sales tactics #1: "never talk about the cost.... Only the payment". Most of what you hear from the mouths of these callers reveals how they are victims of years of maketing tactics & conditioning to be a consumer.

[@andytaylor1588]

@@rangerdoc1029 debt slavery is an odd thing. The first time I had everything paid off, it felt very weird.

[@xxP1ST0LER0xx]

Dave: Pay mortgage and save for retirement Next caller...

[@coltonstogner4363]

xxP1ST0LER0xx would be better advice to switch those around

[@xxP1ST0LER0xx]

Colton Stogner I basically said do both

[@amandafoster24]

Dave is coming to my church in Texas!! So excited to hear him speak live, and partake in the FPU church small group!!

[@deepdrop7970]

Amanda ,,,you are from Texas and attend church. That makes you twice as stupid.

[@Mafiaman677]

@@deepdrop7970 I think that you are twice as pathetic and ignorant for coming into this thread just to talk trash.

[@kaohsiung99]

@@deepdrop7970 Yeah, this is a pretty pathetic comment. Just go ahead and delete this one, sir.

[@zaidchalabi1599]

Why doesnt dave calculate tax ? I make 100k a year After tax, health insurance, 6% 401k, its $2447 biweekly. $63,622 a year Not 100k....

[@Crusader143d]

ouch, should have served d your country and got that tax free income baby.

[@zaidchalabi1599]

CrusaderFTW what u mean ?

[@edb484]

Move here to Texas, no state income tax

[@zaidchalabi1599]

ed b i heard cost of living went up too in TX as well as prices of homes and property tax I was thinking AZ maybe since its closer to CA and i have family here Can get new construction houses in like casa grande for 200k. But looking for a high paying job isnt easy. Texas has some high paying jobs though for chemical engineers

[@edb484]

Zaid Chalabi Yea the property taxes are only downside and it’s getting more expensive here because all these move here from Cali. Arizona is nice place to live. I wouldn’t mind living there either

[@aarohivijh]

Dave, I kicked everyone else out of the house but Uncle Sam - he won't leave.

[@rachaelwhite8614]

Hilarious!! Love you sense of humor!!!!

[@slippinslidewayz]

Uncle Sam is a mooch!

[@meilad4178]

Love the quote

[@justusbryce3392]

The Founding Fathers had a strategy for dealing with stuff like this

[@Akash-mq6ov]

Everyone over at the Dave Ramsey show, just would like to say love your work I'm 19 years old from Melbourne, Australia and been listening to Dave since I was 17. Unfortunately cant call in from down under :(. Thankyou Dave for the financial advice. Its embedded in me.

[@braxxian]

Well done mate, i'm 51 from Tasmania and have been listening to Dave for a few years now. Wish I had discovered him when I was 19. Take his advice, it works.

[@04006201666]

30 from Tasmania here, been listening for a few years now, debt free paying off my house extra into retirement.... life’s great

[@GarageSupra]

33 Brisbane here and although I am on DSP I am debt free and live a life within a budget. I use advice from Dave to help family and friends when required. They should teach this stuff in school.

[@julyfirst4412]

Akash Deo MELBOURNE here. I started with a $23,000 car debt, $6000 tax debt and $8,000 in credit cards. 7 years later I have $40k saved in cash, $35k in retirement and no debt. The best ever!

[@johnl1165]

28, From Sydney, big Dave Ramsey fan!

[@hirambright9357]

So many people are shortsighted and have the mentality of paying only their mortgage minimum when they can pay more.

[@andytaylor1588]

Anxiety sometimes plays a part as well.

[@DiceBaseballDigest]

The caller’s thinking is confused.

[@l.ls.8890]

This caller has me confused, I hope he got the message. Whew!

[@DrDoke]

I just some random guy on the internet but the best way to financial security in retirement is to have a paid for home and zero payments. Then you can live on a low monthly income if required. There are very few guaranteed investments. Paying if your debt is 100% guaranteed to return your investment.

[@Thetatraderz]

Probably should do both but maybe lean more on the retirement side. I recommend to other teachers to not retire until you paid your house off.

[@spankynater4242]

Like you, Dave teaches his own plan. So it is what it is.

[@MrNGTfan123]

How do 60 year old men not know this basic stuff?

[@ChrisParrishOutdoors]

Dave's generation (and gen X to an extent) was the generation of excess. Dave's mindset changed because of his bankruptcy. Most millennials are very averse to consumer debt(most are burdened with student loan debt). The theory is millenials have seen the negative impact debt has had on their parents. In fact there have been a lot of studies and articles detailing how "millennials" are hurting specific industries because of the low credit card utilization.

[@trebmaster]

People making 225%+ what I make and having problems that friends of mine are managing in 4 years or less with even slightly less income than me...smh

[@samanthahincks9203]

It baffles me tbh

[@__Ryan_]

You need to be on beans and rice right now😂😂 Its true but it made me laugh like crazy.

[@afernan17]

Never let yourself be in this mess at this age.

[@hirambright9357]

Sadly, he still better than most people because of his income.

[@andytaylor1588]

Some of us have unfortunate circumstances and haven't broken out of them yet, near retirement age. Euthanasia looks promising.

[@groofromtheup5719]

I was happy in a small house....4 kids later.....

[@tomjames2569]

But Dave... what about taxes?? Theirs fed, state, local, property taxes. $145k is probably $80 to 90k after taxes.

[@trh917]

Tomis Kroondyk: Ya. Dave never mentions taxes as if he doesn’t know.

[@hoppybeerdrinker49]

exactly. After taking out (max) medical, and 401k( max) I take home 51% of gross.

[@edb484]

They should be able live off 50k-$55k

[@vinniebozzuto3534]

Correct...he never mentions Uncle Sam when he asks about income. He should say "after all taxes and benefit deductions" what's you annual take home income. That's what he needs to know before firing off advice. You can't use Uncle Sam's money to payoff your stuff..maybe I'm nuts..😉

[@th3p00r5]

90k a year is a loy of money to spend

[@x2for10x]

I think the hardest part is letting go of the money even though you have the money to pay off the 5k.... I used to think that I could pay half and have half to spend... Then... When I paid off that debt...I realized I'm in a much better place even tho I just paid a huge chunk of cash

[@lynnebucher6537]

I did both concurrently. Maxed out retirement plans then put anything extra towards mortgage. I didn't want to lose x number of years of retirement savings opportunity by focusing only on the mortgage first. The retirement accounts also ended up earning more on an annual average than my mortgage's interest rate.

[@MrDarthvis]

That’s a good point! I also feel the same way too. Because when we do our taxes, and if you want to max out your IRA each year, you only have until April 18th to decide. Wouldn’t that be a good thing, while also paying off the mortgage’s principal (considering you have extra cash to do both!)?

[@mollybrown8361]

I’m 17. I make £4.35 an hour since April but £4.20 before that (not including about £90 commission a month) and I’m only guaranteed to work 5 hours a week. From my first job, that I’ve been currently working for just over a year, I’ve managed to save £2,600 whilst still enjoying my money and contributing to supporting myself. This has been from working loads of extra hours and getting myself some side hustles.

[@williamhadley549]

Put that money in an index fund when you turn 18, and continue to contribute to it. £250 a month, every month. You'll be able to retire comfortably when you're 40 > 45. I'm from the UK as well (19). By investing right now, we'll be living easy while our friends and colleagues get into credit card debt, and buy mortgages they can't afford. We'll be a minority of a generation where we'll have a lot of money saved young, without generousity from our parents.

[@mollybrown8361]

William Hadley I was planning on saving to buy a property/ deposit on a property. What you proposed sounds good but there is no way I could actually do that right now as I’m on guaranteed £190 a month with my part time job. When it’s more it’s from extra hours and my cash in hand side job once or twice a week. Also the account I’m saving in right now has 5% interest so ill make £130 keeping it in there. I might follow your advice once I begin full time work, so thank you for your advice.

[@mollybrown8361]

William Hadley ahhh sorry I missed where you said once I’m 18 😂

[@williamhadley549]

@@mollybrown8361 5% interest is really good. What Bank are you with?

[@mollybrown8361]

William Hadley I’m with nationwide. I can’t remember which type of saving account it is but in the first year it’s 5% interest and then I think it decreases to 3% interest in the following years, but you have to be a pre exiting customer to set up one (I’ve had at least one account with them since I was born as my parents put a little bit on money away for my sister and I each month). I’m currently doing research into index funds as we speak. Seems really interesting, but are they guaranteed to make you money or are you better off just putting £250 into an account a month and letting it sit? What’s the risk potential?

[@PassportBrosBusinessClass]

THE SOONER YOU PAY OFF YOUR MORTGAGE: THE BETTER. Same goes for your Student loans, car loans and any other loan.

[@pranksterguy1]

Yes!

[@rangerdoc1029]

I calculated that if I pay off mine 20 years early, it is a guaranteed 64% ROI on my money.

[@andytaylor1588]

@@rangerdoc1029 Bingo! Good on you!

[@rons.6683]

Bigtruckseriesreview Motorsports for sure!

[@mounirjamaaoui9780]

@J Wil Better off, maybe not if we factor in the market risks. The ROI on mortgage payment is meanwhile guarranteed

[@yayyareaa2997]

Love when Dave goes tough love mode 😂

[@andytaylor1588]

Sounded like a man to man talk to me.

[@MrsThollo]

"It's not tough love, it's just love." ❤️

[@adamb3183]

Sounded like poor advice to me...

[@debbietucker1038]

Dave is a Boss.

[@dakotadak100]

Depends on your APR

[@superfly19751]

Don’t forget about income tax Davey... They don’t take home $145k per year.

[@jasonhart3888]

Well he should tell his net.

[@fivebooks8498]

Dave never takes in account income taxes. Guy makes $150k. Dave thinks if he pays $50k on the house he will have $100k left but that’s not true. At that income level income taxes are pretty high. Net is closer to $95k. After $50k paid on the house and $20k saved in retirement fund he’s got $25k for two people to live on.

[@chrisstaub5880]

$25k/year should be more than enough to live on when there's no debt payments coming out of it.

[@dreamzofhorses]

Most people are terrible with their money. The more they make the more they spend. When I started making serious money I did not increase my spending, I saved and bought my car with cash. Stay away from credit cards and refinancing. My business partner is in debt and needs more money. New cars, bigger house, traveling to Jamaica, wife buys jewelry and shoes... yet we have the same salaries. It’s only math, not rocket science! But at the end of the day it’s up to you and your own ego and greed that’s your biggest enemy.

[@ericclaeyborn3600]

What strange talk if this... to "pay down my mortgage"? Having any kind of mortgage doesn't help retirement. Paying off your mortgage is saving for retirement.

[@molsharma4943]

This guy is awesome and strictest 💯

[@mrgarypaterson]

Sitting here feeling like I've missed out because I only found DR when I was 29. Then I seen this. Never too late to start, but that isn't an excuse to put it back either - once you know the baby steps, you are throwing away your growth potential = aka money if you ignore it.

[@andytaylor1588]

Gary, I only took Dave seriously a year ago. I'm turning 57 on Nov 7th.

[@DanielGarcia-zz9eg]

You forgetting, $140,000 is not completely free Everyday lif expenses Health bills Taxes Insurance Home/car maintenance Helping out grand kids 140 Is probably 60k free Money comes and goes fast. Do what you can do. Hes right, pay off that debt

[@artemthetrain14]

Does everyone who calls in talk in take home numbers or does Dave just forget that income gets taxed?

[@David-cm4ok]

I was just thinking that very thing. If you're smart, before you call, you'd better work out your take home pay and give Dave that.

[@spankynater4242]

Just trust that Dave knows what he’s talking about. I roll my eyes at people who think they know more than any one else.

[@hollyb6885]

Once you realize how much you Home is REALLY costing you with the interest you’re paying, you will want to pay it off ASAP. I’m tired of people saying, “but the interest rates are the lowest they’ve been in years...”. Check out a mortgage calculator ( like on bankrate.com) and look at the actual interest amount you’ll pay

[@Corpsecreate]

Don't need a mortgage calculator -> Invest at 8% vs mortgage at 3%. Its a no-brainer.

[@mrslcom]

Not true. Interest rate is more important than the interest amount. If your mortgage is say 3.5%, by paying down your mortgage, what you are actually doing is investing your money at the same 3.5%. So if the financial market can give you a better return than 3.5%, then you should borrow more money with your mortgage and invest it where it’ll give you a higher return. It’s called leveraging where you use the bank’s cheap money to work for you.

[@Corpsecreate]

@@mrslcom yes exactly. So we are in agreement

[@mrslcom]

Corpsecreate. Yes we agree. The other thing we need to consider is risk. Investments carry risks while paying down debt do not. Everyone’s situation is different in estimating acceptable level of risk.

[@jakemf1]

Tanah Merah leveraging is risky and is how Dave got in trouble. Why not pay off and invest also. Lower debt and make long term investments

[@TheBlueQuasar]

Dave was spot on for the advice (setting aside the taxes aspect) but you could tell dude on the phone was listening just to argue. Clearly they muted the guy.

[@sherrystewart7745]

The guy on the phone was arguing because his personality is controlling! Those kind of folks are "know it alls".

[@pamk1967]

Please give Grace DR Grace... we all at different levels in our finacial journey. People want to be heard even when seeking advice. God bless you Sir in your gifting and Purpose

[@brianfleck2997]

How about the 20% taxes he's paying

[@tedkrygoske535]

Dave always forgets about taxes when he blurts out his numbers....

[@rons.6683]

Ted Krygoske I’ve said the same thing for years.

[@martykimble9999]

So true.

[@fpsoftdev]

Kinda on the caller to give their take home pay figures

[@Fred1294]

Dave thinks you take home what you make

[@Hallowsaw]

Yeah of course you can pay off a house when taxes are not factored in

[@rosseldridge6395]

I'm 21 and I feel like I am behind the curveball. I don't wish problems upon others but these calls make me feel like I'm doing okay.

[@scottthompson3493]

You very likely are doing ok.

[@Michaeldpress14]

You’ll be 36 before you know it , be smart

[@rfbead321]

Why is DR forgetting fed+state income taxes?

[@666dynomax]

3:42 TODAY... haha this callers funny 6k in the bank, 5k credit card, "but its ONLY 2.99"

[@dominped23]

Ha! I’m on beans and rice and hadn’t listened to this video yet! Ahhaha

[@Mjim59]

That’s a Mexican joke lol

[@oneisnone7350]

The only problem I have is his investment assumptions. Very difficult to make those kind of returns.

[@devildawg4730]

Im sorry, but i have learned that only about 60% of what Dave says is correct. He is wrong in this call. He states that caller should live off of 90k and pay 50k towards debt out of his almost 146k salary. THERE is NOT 90k left. 146k MINUS 30% in deduction's ( fed, state, fica, social security, insurance, etc) only leaves you 102k....NOW if you pay 50k in mortgage YOUR ONLY left with 52k which is very difficult for avg fam of 4, a mortgage, medical and LIFE.

[@chrisstaub5880]

$52k after taxes should be more than enough - that's over $4k a month, and the mortgage doesn't come out of that since it's already accounted for in the other $50k. If they have trouble living on $4k/month with no house payment, something else is going on that wasn't mentioned here.

[@strokerace4765]

If you don’t have your house paid for retirement is going to be hard.

[@magsteel9891]

Or you could sell it and buy something cheaper for cash

[@kbobdixie1829]

Savage..I'm scared to call 😁

[@karin0963]

I'm almost 56 on BS2. I won't be able to afford 15% investing AND payoff house as fast as I want to (by age 65). Yes, I made stupid financial decisions in my early years. 😣

[@DavidJohnson-is2lc]

Pay off debt, save for retirement, then have a bad heart attack like me just waiting to die and not be able to enjoy the money what about living for today and forget about retiring

[@karin0963]

@@DavidJohnson-is2lc I am so sorry David. I know too many people that died way too young or became disabled and never got to enjoy their retirement years. We are not guaranteed tomorrow. I agree with you 100%.

[@biggutter3335]

We're throwing 2k/mo at our 1300/mo mortgage. Hope to have it paid off when I'm 55.

[@biggutter3335]

@J Wil Thanks. It's hard to do when I golf so much. Hahaha

[@tjones2550]

Are you applying the $700.00 directly to the principal?

[@spawn11]

Namaste Dave

[@naposapo81]

I never thought about prioritizing the mortgage payoff after eliminating all the other debt honestly. I'm warming up to it, but I feel investing should be done as well.

[@xman666soad]

If you prioritize paying your house, the amount you’re no longer spending on a mortgage and can now put into retirement and it will be so fast, having a mortgage hanging around your neck is a risk!

[@j.3854]

NO ONE STATES INCOME AFTER TAXES. THIS IS NONSENSE. I like Ramsey but that 145k is NOT 145k. Such nonsense. It’s like 60% of that. Shut up!!!!!!

[@warrenpuckett4203]

As someone who has had problem with maintaining a steady income, retirement has come. So without the $950 month rent payment? At least I have NO credit card debt. But I do have enough income to buy a car. The present wife is still one of those if you gots money spend it before you die.

[@Santaheckler]

Some people make things so complicated...

[@leehancock2782]

Always live below your means

[@tinaduncan72]

Listening to your podcast 2weeks now. For myself, I had to picture in my mind what you was saying about the snowball attack on debt, with in 2 weeks I've paid off one card and now working on the 2nd card. Too bad I didn't find you sooner. Thanks

[@Dave-tz9zx]

Taxes are about 20% of a budget (FICA, Sales Tax, Property Tax, Federal Income Tax, State Tax, Poop Tax).

[@drunclecookie216]

pay off mortgage or save for retirement? Let's do both! *smacks the computer monitor with a bud light bottle"

[@andytaylor1588]

15% to retirement and the rest to mortgage to pay it off quicker. Win/win.

[@edrisjohnson3858]

Why does everyone talk about the gross salary rather than the net? That cannot be overlooked. That's a major difference in the bottom line.

[@TILLEYJS]

2k a month mortgage(assuming 10 years left on loan as worst case scenario) Clears 2k a week paycheck. Can clear credit card debt off table. Math is fairly easy on this one. He doubles up on monthly payments or more. Debt paid off in 5 years.

[@tomd1434]

I'm fortunate to be doing well right now but I live in a very expensive area. I bought a small apartment that was very affordable and I'm very content living below my means. There are many benefits but there's always people asking when I'm going to move, get a bigger place, ect. Questions like don't you want more? Well sure, but I don't need the extra space yet. My gf and I live in a 585 sq. ft. apartment. It's plenty. If we start a family then of course more space will be needed. My point is living happily below your means can feel/be a blessing. Give it a try and tune out the keeping up with the Joneses nonsense.

[@JoseRivera-io9qr]

How about taxs

[@sflow4675]

Both can be done. Starting is the hardest part.

[@kathope4484]

TODAY!!!

[@evillink1]

Dave is providing a real service here lol

[@KARIMALH1]

Why does Dave not take taxes into consideration? I live in NY I make 92k but I take home about $65k after taxes and deductions for health savings. Anybody else have this problem?

[@rustyshackleford1419]

You can hear the defeatist tone in his voice talking about 82 years old. Dave went Tony Robbins on him radically interrupting his frame of thought.

[@learnsomethingneweveryday1539]

Anyone know if Dave ever goes off track and advises some tweaked version of the baby steps? It's the same advice all the time but people who call up want to change it lol

[@andytaylor1588]

It will always remain the same, because it works when followed to the letter. It isn't based upon ANY assumptions or artistic interpretation. The Baby Steps plan is based solely on what has been historically know to work and to not work. The data is absolute. The data works. Humans are not machines, or we'd always do the obvious. (pay highest interest debt off first.) . . .which doesn't work for humans, statistically speaking. Paying off the smallest debt first is proven to work for humans.

[@gratefulRed69]

I love Dave, have read his books, been through Financial Peace University, etc...but it's just super hard for me to get on-board with plowing money into paying off a low interest, tax-deductible mortgage EARLY. In 15 years? Absolutely. In this callers case?? I wouldn't. He's got 40k for retirement and he's already 59. As for the stock market..it's NOT "timing the market" that makes the difference...it's "time IN the market". 4 years of additional "time IN the market" could potentially be huge when that 4 year span is 15 years down the road. I'm 51 and have zero debt outside my mortgage (which is well within my means). I'm trying to get 20-30% of my household income into retirement. I could pay more towards the house but I feel like the return on that money has more upside in the market than it has by shortening my mortgage payback. If I were in my 20's or 30's, yeah....pay off the house and you still have a couple of decades to plow money into the market, but at 59?? Not sure I could do that. I've found a mortgage calculator that provides you the exact amount of additional principle payment necessary to pay off your mortgage in whatever future date you wish. So, I'm shooting for having my loan paid off at my age 60 (about 14 years early on a 30 yr) but I don't see as much value in paying it off in say....the next 5 years, if that comes as the expense of additional funds into the market.

[@Mitzi73]

I agree with you 100%.

[@ryanthepianoman27]

Always pay off your debt! Dave Ramsey’s net worth is higher than yours I guarantee it!

[@spankynater4242]

Under current tax laws, mortgage interest deductions are practically nonexistent. So you’re getting no benefit there. Besides, it’s not Dave’s plan. His plan is get out of debt first. Of course, he says after non-mortgage debt is paid off, you should put 15% of your income into retirement investments. So it’s not like he tells you not to invest.

[@brents1643]

$140K MINUS income tax???????

[@righand]

Hi Dave thanks for taking my cawl...

[@arymonem]

We all have an uncle we have never met, and his name is Uncle Sam. How come Dave never mentions him, or factors him in the equation?

[@UpInRank]

I don’t understand how we’re doing math on how much money we make and can invest without factoring in taxes? You make $140k. Not true. They have to be paying at least 20% in taxes. Glad we glaze right over that though.

[@TheJpep2424]

He doesn't glaze over anything

[@chrisstaub5880]

Ok, let's factor in taxes. Assume $50k comes out for taxes, then add the $50k Dave suggests putting towards the debt. That still leaves $40k/year, or over $3k/month. They can easily live off that even without a strict beans-and-rice lifestyle.

[@peaches75x]

TAX!

[@Aggie4life77]

A lot of people don’t think about this stuff early on and end up like this guy. I specifically speaking about the house. If you’re 45 plus, don’t get a 30 year mortgage, get a 15 year or you will be working until your 75/80.

[@eyeheartsushi2212]

I’m fixing to refi and do just that: get it paid off in 15.

[@kckuc310]

Depends on age. 59 pay mortgage and also save, I did both at the same time. Dave also deals with gross income not take home.

[@austinselleck9484]

I am currently 28 and will be debt free except the house in a year. Trying to figure out how aggressive to get with paying the house down.

[@NoahBuddyIsReal]

Why does Dave not factor in taxes 😂😂😂

[@th3p00r5]

Wait, he makes a $140k a year and it takes him that long to paid off a $200k? The question is "what's he doing with his income?"

[@taskcasburn6086]

Yup. Some of these people have lived 'high off the hog' much of their lives and wouldn't know frugality if it crept up on them and handed them a can of beans.

[@KnowArt]

"that has not worked for anyone" Meet Kevin left the chat

[@seandorrian2752]

Beans , rice lol

[@saulpelayo5561]

Got rid of debt by sticking to the plan. Got my own plan free. Pay yourself first

[@in2thezm]

Minus Taxes Dave!

[@texfam]

We are in our 60's and my husband is a teacher. He can't afford to retire because our mortgage is too high, so we are looking at ways to reduce it. Would it be best to refi into a 30-year again or get a HELOC, pay it off and just pay on the HELOC? It is worth about $300- $320K and we owe $160K on it. Would love some helpful feedback!! Thank you.

[@TheUndulyNoted]

I totally get what Dave is saying, like in risk terms why you wouldnt want to borrow on your house to invest in index funds, because if you lose your job the mortgage doesnt go away. Is that the only reason though? Because over a long term average stocks return about 10% (ignoring inflation). Mortgage interest is low at 2-3% (again ignoring inflation). So hypothetically speaking, if you can afford to meet the interest payments on the mortgage over a 30 year period, you would make far more than those interest payments from investing in the S&P 500 for example. Would appreciate the reasoning on why this would be a bad idea.

[@magsteel9891]

Let's see, liquidate my brokerage account and pay off my house now? Or refinance the house to a 15 year 2 3/8% tax deductible fixed rate mortgage? Dave would probably say pay off the house. I'm getting the cheap money to work for me.

[@spankynater4242]

And quite frankly, no one cares what you would do. Why are you even here? Dave has his own method, and he forces no one to follow it. And I’ve never heard him say to liquidate your investment accounts to pay off your mortgage.

[@magsteel9891]

@@spankynater4242 oh look, the chat moderator is here. Get a real job, loser

[@La_sagne]

i wonder if i should really pay down my 0.92% interest mortgage over investing

[@ws775]

Do both.

[@michaelsnelling3338]

Of this there is NO argument. Pay off your debt! NOW!

[@arymonem]

No it doesn’t work like that Dave! He’s at $145 pre tax, he’s got property tax, home insurance, HOA, utilities, car payment and insurance, and credit card for food and groceries, and don’t forget his wife’s car payment and insurance, maybe his got kids expenses too. IT ALL ADDS UP AMIGO! Now to save 20k to 30k / year everyone has to be on the same page with pork and beans, and it still may not work due to medical expenses since he’s at 59 years old. So let’s factor in everything including UNCLE SAM. But I still love you man.