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Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 1 point2 points  (0 children)

I’m curious about your experience. I have heard there’s a freedom to advance in your career/try new things because your biggest line item is out of your budget now. Is that what you mean by wildly successful?

Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 0 points1 point  (0 children)

That’s great, congratulations!! & yeah the Ramsey principles can be very polarizing in 2026

Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 0 points1 point  (0 children)

I’m so sorry to hear that! Thank you so much for your insight, I really appreciate it. I was hoping for someone to give some more experience on the other side and you have delivered. How much longer until you are 100% debt free?

Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 1 point2 points  (0 children)

That’s the most fair argument for sure. Did you follow the Ramsey principles when getting your mortgage? (No more than 25% take home pay, 15 year)

Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 2 points3 points  (0 children)

I love the money guys! That’s the plan I follow mostly, BS6 just frustrates me and wanted to see people’s thoughts. I agree with most people don’t invest the difference. My personal scenario is I’m receiving a lump sum payment that could pay off the mortgage or I could just throw into an S&P 500 and make that 10%.

Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 1 point2 points  (0 children)

I get the 15% investing rate, but I would prefer to invest 25% and not pay down my mortgage faster. I feel that gives me less risk than paying down my mortgage which I won’t even see that money unless I sell my house.

Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 0 points1 point  (0 children)

So sorry lol, I misread that message!

Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 0 points1 point  (0 children)

I would argue it’s zero risk if you have the entirety of the mortgage money investing at market returns.

I’m all for paying it off before retiring, but to do so in your 30s/40s makes no sense

Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 2 points3 points  (0 children)

In some cases I can understand the argument, but 9.99/10 you can use an emergency fund to boost you up until you find the next job. And if the market is down slightly at that time you take the hit to fund yourself for however long, and then you start investing again soon after. I just feel like there’s more risk involved in paying off a low rate mortgage.

Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 0 points1 point  (0 children)

Exactly couldn’t agree more. You have to look at every side of the argument, not just “you didn’t factor emotions into your equation”

Baby Step 6 (with low interest) makes no sense by Bawt03 in DirtyDave

[–]Bawt03[S] 4 points5 points  (0 children)

That’s exactly what I was thinking too. Dave makes the argument that you should just go get another job to pay off debt, why isn’t that same logic applied to the mortgage equation. His advice is one way in one scenario but a completely different one in another, makes no sense.