A caller to The Dave Ramsey Show sought guidance on how to manage extra cash, considering options between paying off his mortgage early versus saving for a future home down payment. Ramsey and co-host Warshaw advised prioritizing mortgage repayment, suggesting that incremental extra payments can serve as a form of forced savings, thereby reducing temptation to squander cash on unnecessary purchases. They emphasized the value of reducing debt over saving for future expenses as a more disciplined financial approach.
The main advice the caller received was to pay off the mortgage early. Warshaw suggested making extra payments over time as extra money comes in, rather than saving for a large payment.
Ramsey explained that paying extra on the mortgage acts as forced savings since, once the mortgage is paid down, the funds are less likely to be spent on non-essentials.
Collection
[
|
...
]