As we've navigated through Dave Ramsey's Baby Steps towards getting out of debt, financial freedom and building wealth, the next step is to pay off your personal home mortgage.
As we work through the Baby Steps, so far you have essentially paid off your debts, saved three to six months worth of expenses, and are saving for your retirement and your children's higher education. In conjunction with saving for retirement and college, you are going to begin paying down your mortgage.
This is a big one, and it is going to take a while. More than likely, your home has been your largest purchase. But making extra payments towards the principal of your home will save you tens (or even hundreds) of thousands of dollars in interest. Think of this goal as a marathon and not a sprint. You have already learned good habits and now you are truly putting them to the test. Once your home is paid for, you are truly debt free and your opportunity to give your money and invest is tremendous. Can you imagine NO MORTGAGE?!
Make a plan and decide the best way to execute it. For some it may be making additional lump sum principal payments (ensure the payment is marked towards principal) or it could be doing extra payments monthly. If you aren't already on a 15-year fixed-rate mortgage, this could be the first step to getting your mortgage paid off early. Speak to a trusted lender, I am happy to connect you with some amazing people who want the best for you, just like I do!
Comments (0)
Be the first to comment on this post!
Post a Comment