Dave Ramsey Approves

[BigboreShooter]

we paid off our modest home in 1998. It opens a lot of doors, vacations,trips,RVs,etc!
BigBoreShooter

[Wayne Smith]

Paid off our house several years ago, too. Last 18 year loan was paid off in 9 years. Bank lost a lot of money on our house - paid it off with way less interest than they expected.

[MrWolf]

My mortgage payment is my only debt. Refinanced a year or so ago and my interest rates is very low. Not worth paying off yet (15 year on refi) as I believe interest rates will be increasing. Funds are in a retirement account if I kick the bucket so kids would get it free and clear.

[Shawlerbrook]

Congratulations ! Just love Dave Ramsey. If our Federal government only took his advice.

[LAH]

You did good.

[rancher1913]

we have done the ramsey thing since before we knew of dave ramsey with a few exceptions, we use a points credit card for all purchases and pay it off every month so no interest but we get the points, most of my primer and powder stash was all free by using the points.

after your house is paid for you kind of get lax on being frugal, we have bought a lot of stuff that is nice to have but would never have bought if we had a mortgage.

[pworley1]

Congratulations!

[ih772]

Congrats! It really does feel different when your house is paid off.

The wife and I became 100% debt free in February of 2020. It took us 8 years to get there. One side effect that I never really thought about until it happened was the ability to easily quit a job I hated and to take some time to find something else I liked even though it paid less.

[Rapier]

Congratulations. Very satisfying to be free of debt. At this point you have a great deal of latitude. I used my clear home to buy a farm, build a new house, then sold the old house, paid off the note, plus put money in the bank. Debt free again.
Be smart with the funds, a clear home is money, in a different form.

[lightman]

Congratulations! It feels good don't it?

We paid ours off a few years ago. We paid the Wife's Expedition off last week, 2 years early.

[dverna]

The other side is not pretty...

I have a friend who is 72, and works side jobs when he can. They still have a mortgage and some years they cannot pay their property taxes on time (less than $1000).

He made good money when he was younger and his wife worked too...but they pissed most of it away. No retirement account and no savings...living week to week and sometimes day to day.

His wife still has the attitude, "Everything will work out...it always has".

[Ithaca Gunner]

We paid ours off some years ago, then I began putting 25% of my gross pay into retirement. That was very smart, aside from normal monthly bills and food, etc. all I owe is tax's and car/home insurance as pesty bills. I'm retired and doing what I want, and not doing what I don't like! I say. keep your money out of the banker's hands, invest in gold, silver, brass, lead ordinance grade steel, walnut, and other precious minerals like powder and primers. Short term bonds are a good hedge, but keep an amount of cash on hand. Banks ain't worth it at .05%, doesn't even keep up with inflation.

[Forty Rod Ray]

You run with good company.. good for you and your home.

[lavenatti]

The other side is not pretty...

I have a friend who is 72, and works side jobs when he can. They still have a mortgage and some years they cannot pay their property taxes on time (less than $1000).

He made good money when he was younger and his wife worked too...but they pissed most of it away. No retirement account and no savings...living week to week and sometimes day to day.

His wife still has the attitude, "Everything will work out...it always has".

Sadly, this is more common than people who were financially responsible during their lives. I know a few people in their 60's with nope hope of retiring anytime soon.
I have 7 engineers working for me, I tell them constantly to invest 20% of their pay. A few of young ones listen and should easily retire millionaires.

[Gray Fox]

We paid ours off earlier this year. Wife and I both drive 20-year-old Fords which aided us in sometimes doubling or tripling the monthly payment. Of course, we reload to save money, too and with two shooters that helps! GF

[JimB..]

Congrats, a solid accomplishment!
But wait there’s more, or at least there should be. You’re way ahead of most, what’s the next financial goal?

[Daekar]

We should have our house paid off by the time I'm 45, and every year that gets a bit closer. Can't wait for that day, I feel like we should throw a party when the time comes.

Hopefully that will be the last debt we ever incur. No point in taking out a loan to buy a car unless you have no other choice... it's not like any new car is going to do the job better than my existing one, and it's almost always a better plan to just maintain what you have than to buy something new.

[Daekar]

The other side is not pretty...

I have a friend who is 72, and works side jobs when he can. They still have a mortgage and some years they cannot pay their property taxes on time (less than $1000).

He made good money when he was younger and his wife worked too...but they pissed most of it away. No retirement account and no savings...living week to week and sometimes day to day.

His wife still has the attitude, "Everything will work out...it always has".

The very thought of that terrifies me, to have nothing between you and a few bits of bad luck. I really don't understand how people can tolerate it, I would live on ramen and cold water for a year to get out of a situation like that. To have no control...

[MaryB]

My parents and grandparents taught me the idea that Ramsey espouses. Don't owe a penny, never have. Paid cash for my land, and materials to build my cabin. Never took out a car loan, and never had a credit card.

I paid $500+$300 in back taxes for my house on a tax auction. 20' tall brush around it, missing some windows and a door... brush hogged the yard twice, cut down 3 trees that were up against the house causing damage, moved some good windows from the north side of the house and boarded up the holes I took them from(saves me a bundle on heat, north windows in MN are stupid! And only 1 lit up a living space), replaced the door, shot/chased out the critters that had set up shop inside the house... did a deep clean then started remodeling. I room or project at a time as I could afford it. I bought a window every payday and when I had enough to do the whole house replaced all the old ones. Then did the same with siding, bought and stockpiled some every payday... went on to the interior with gut, wire/plumbing(I can do both, saved $$), insulate, drywall... eventually had the entire house done for under $20k in materials. I don't count my sweat equity... want to get ahead sweat a little!

[David2011]

A local financial advisor has a radio show that’s a thinly disguised infomercial every Sunday afternoon. He recently espoused that paying off a house is a way that poor people think. He went on to demonstrate how people should invest instead of paying off a mortgage. I thought and still think the advice was terrible even though the reasoning was sound for people that already have deep pockets. Then I realized that we were doing exactly what he suggested. If investments are growing at a rate much larger than the cost of the mortgage it makes no sense to take funds out of the investments to pay off the mortgage and reduce the return. Everything else including cars are bought without financing a penny.