Dave Ramsey Approves

[jonp]

Paid off the house today about 20yrs early. I thought Halloween would be a day we would remember. Lots of no vacations, day old bread, meat on sale, 6 day work weeks to get here pinching dimes till they scream and keeping focused on the goal

Now we dont owe a cent to anyone. Vehicles free and clear, house, hunting camp etc

WooHoo

[sigep1764]

Congrats! We have 28 more years to go on our first home lol

[dannyd]

Free and clear unless you have property tax now the state owns it ;)

[parson48]

Congrats!!

[AlHunt]

That opens a lot of doors for you. Nice job,

[MaryB]

Feels good doesn't it!

[jonp]

Free and clear unless you have property tax now the state owns it ;)

Ok Debbie Downer

[No_1]

Congrats! Now you can afford primers. :kidding:

[jonp]

Feels good doesn't it!

I was free and clear years ago and it was surprising how little it took to make a go of it. Met my wife, moved and bought a house. Now free of debt again. Good feeling as one weeks pay from either of us will get us done for a month with money left over

[jonp]

Congrats! Now you can afford primers. :kidding:

Not hardly No. 1. We didnt hit the megaball

[waksupi]

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.

[dverna]

You are way ahead of most folks.

It is a great feeling to not have any debt. You are fortunate to have a wife that has the same mind set.

BTW, the habits I learned to get my head above water never really left me. I would buy day old doughnuts..good enough. I keep buying everything I can in bulk.

[jimlj]

Weerr debt freeeee!!!!
I haven't had a house payment for over 10 years.

[Huskerguy]

I admire your ability to establish a plan and stick with it to completion. Blessings

[jonp]

You are way ahead of most folks.

It is a great feeling to not have any debt. You are fortunate to have a wife that has the same mind set.

BTW, the habits I learned to get my head above water never really left me. I would buy day old doughnuts..good enough. I keep buying everything I can in bulk.

Old school thrifty yankees that grew up hard under people that knew what tough times were and didnt expect any help from Big Government. No mystery

[CastingFool]

Congrats! I was blessed with a good job and we were able to pay our mortgage in 2009.

[alfadan]

Great job! Paid mine off way early but a goid job and single made it much easier. Its a good feeling working on YOUR house, even mowing YOUR grass isn't it?

[ShooterAZ]

Congrats, and yes it is a good feeling indeed to be debt free. Great way to set yourself up for retirement.

[lavenatti]

Made 3 payments a month when I bought my current house and paid it off 11 years ago. Since then I took all the money I was putting towards the house and invested it.

Retirement is going to be early and well funded.

[redriverhunter]

glad for you. I have been plugging away at mine. I hate my job soo much that I have not been able to bring myself to do overtime knowing full well the benefits of it.

[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.

[762 shooter]

First of all, congratulations on no mortgage.

Sadly, you will eternally be renting your house from the government in the form of taxes.

As far as the "investing to make money and don't pay off your house" theory is not for me.

I have been investing like a 90 year old trapped in a 70 year old body. I don't mind if I don't make money, but I do mind losing it.

Just me.

Paid off my house 10 years ago.

762.

[alfadan]

Even paying my somewhat low balance loan off at 3.375 saved me around 22k. Thats 22k the bank did not make off me for nothing. I also invested into retirement the whole time anyway so I lost nothing and gained an appreciating asset 23 years ealier than "letting debt work for me."

[lightman]

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.

A lot of financial people think this way. My advisor, a trusted friend, says to keep an open mind and look at the big picture. When you are nearing the end of a home mortgage you have already paid most of the interest. Like paying off a loan that has a 3% interest rate that you have already paid most of the interest on when your retirement account is making between 9 and 19%? It makes sense. We paid ours off early anyway as I had already maxed out what I could contribute to my retirement accounts. If it actually cost me anything it was worth the peace of mind.

We finance our cars and trucks because I can get 2.5-3% interest rates and my retirement accounts are earning more that that. Like playing with someone elses money.

[MUSTANG]

Houses, properties, Cars, Vacations, Guns, and.... are all payed off long ago. Could I have looking back made a better return through creative financing? Maybe; but guess what - barring the Tax and or Federal Government Confiscation - it's all ours and not a thing anyone can say about it. Having paid it all paid off we do not worry about what happens to the markets, the economy, or other issues that impact many in society. We can live off my retirement and what we have saved is available for "Fun", safety cushion, or emergencies.

Been Listening to Dave Ramsey's show off and on for years. Only place I ever disagreed with him on was "No Credit Card". We have always had credit cards for 40 years because they were a "Safety Valve" when away from home or shopping necessity these days - But...... we have not had a balance on them for over 30 years because we ay them off as soon as they arrive - easy to do when you have no debt.


As an aside; a couple years ago one of the local kids wanted a job and I put him to work picking up rocks (yes, literally picking up and piling up rocks). After a couple of days he was feeling more comfortable with an adult and asked me: "Are you Rich?" I thought a couple of seconds and told him - Yes we are rich; but we are not wealthy. We have our health, we have friends and neighbors we like, and everything you see here is ours and is not financed at the bank; so yes, we are rich. Have always hoped he was influenced by that conversation. He seems to have remained a good kid, not into trouble, and has a part time job elsewhere after school. I think the "No debt" discussion can be much broader than some see immediately.

[Handloader109]

Congrats. we got rid of ours 2 years ago. Great feeling to owe NO. ONE.

Sent from my SM-G892A using Tapatalk

[Ithaca Gunner]

The less bills, the better when you retire. That's a fact.

[kevin c]

Congratulations. I admire your determination and commitment.

We’ve been doing the next best thing: no consumer debt. We got credit cards based on the perks, benefits and low or no fees, ignoring the interest rates. The balances are ALWAYS paid off monthly. Ironically, even though the card companies aren’t making money off us, our credit ratings are nosebleed high and they keep raising our limits.

[Ole Joe Clarke]

Paid off the house today about 20yrs early. I thought Halloween would be a day we would remember. Lots of no vacations, day old bread, meat on sale, 6 day work weeks to get here pinching dimes till they scream and keeping focused on the goal

Now we dont owe a cent to anyone. Vehicles free and clear, house, hunting camp etc

WooHoo

Congratulations!!!! With the Lord's help, we paid off the home loan in 12.5 years. I remember both of us going to the CU and paying the last few thousand $$$ for my Wife's birthday gift. What a relief. Don't let any of the discouragers get you down, you have already done the deed. We haven't had debt since, except for a few days on a credit card.

Have a blessed day,

Leon

[woodbutcher]

:D Several years ago,a friend picked up 25 acres at a tax sale.Had a good job and got a mtg to build a nice house for he and his wife.
About 6 months after that,he had a couple of bucks in pocket change and thought WTH,and bought a couple of lottery tickets.He hit it big,and paid off the mtg and invested the rest.Kept working and retired at 55 years old.With his retirement and investments he and his wife are very well off.
And to the OP outstanding Sir on a job well done.
Good luck.Have fun.Be safe.
Leo

[slohunter]

Everything paid off but house still cost $350 a month, taxes & insurance!

[Winger Ed.]

Congrats!! It's a great sensation.

[CWME]

Congratulations!

We have exactly two more years left and are projecting to save $96,000 in interest on our loan. The savings will put our kids through college VS giving it to the bank. We were debt free aside from the house 2 years ago. What a relief that was. Life's curve balls have less impact stress wise now. Wife had some unexpected medical stuff come up. Being able to write a check to pay it off without worry is worth all the sacrifices made. Knowing we can pay all our essential bills from one income is a huge relief as well. If something happens to me she is in good shape with zero debt, retirement funds, and $ to take care of our girls.

[jonp]

Been Listening to Dave Ramsey's show off and on for years. Only place I ever disagreed with him on was "No Credit Card".

Yeah, me too. We have a couple of Credit Cards. We use one to buy gas as it gives 5percent back and gets points. The other I use to pay my bills online and transfer the money from my account to pay it off. Get points on that, too. We got a table saw and a couple of other things for free with the points. Never have debt on them. Besides, as a truck driver when I was over the road I always had one in case I had to drop everything and fly home for some reason. Used it when my father drowned.

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

Put almost all of my pay into retirement savings. Looking for a few acres of land south central US that is warmer during the winter with ground good enough to plant a garden. Thinking of buying one of those gable two story garages at home depot and finish it to live in. Sell our house in a couple of years and bank the money. Split the time between my paid off hunting camp up north in the summer and south in the winter. We found 25acres in Arkansas near when the wife's grandfather was from for $50k. Good looking soil on it.

[MT Gianni]

Just because you have stopped a mortgage of $x a month doesn't mean you should live on more. Bank so much a month for taxes and insurance, so much for utilities and so much for car payments. If you pay cash for a car, keep putting what your car payment should have been in savings for the next one.

[geezer56]

I'm 70. Paid my house off when I was 45. I now own three houses, I paid cash for the last two. I drive a 98 model Ford Explorer, that I bought for 1,200 bucks. It feels like someone rolled a boulder off your back when you make that big last payment on your house.