HAPPY NEW YEAR’S EVE!
Here’s Step 6 from Dave Ramsey’s The Total Money Makeover
Get financially ultra fit and 100% debt free. Pay off your mortgage early.
Imagine the day when you can say to yourself. You have no debt, nada, zip, zilch. Nothing. No credit cards, No student loans. No nothing.
What joy! It can happen. For many people, the mortgage is the single largest payment they will ever have. Imagine the feeling when you make that LAST MORTGAGE PAYMENT. To get to this point you will have to round up all your extra money: after saving 15% for retirement, after having three to six months expenses, and after stashing away college money for your children.
You can do it.
Yes you can.
Many scoff at this step by saying: “Why pay off your mortgage when you can have the benefits of deducting the mortgage interest on your taxes every year?”
Let’s reason together, shall we?
Why pay $5,000 in interest to a bank each year just so you won’t have to pay $1,500 in taxes to the government. Sit down and do the math with your own mortgage interest payments and tax savings. Does it make sense for you?
So start paying down that mortgage principal and before you know it. You’ll be coasting on to the final step to financial freedom.
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