Dave Ramsey says: Put your money where your house is

Jun 20, 2023, 1:00 PM

(Pexels Photo)...

(Pexels Photo)

(Pexels Photo)

Dear Dave,

I bought a house about a year ago. Currently, I have $45,000 sitting in an account with a money manager. I’ve had this account for a little over three years, and the investment hasn’t grown much, if at all. Under the circumstances, and being single, too, would it be better to pull the money out of that investment and put it toward my mortgage?


Dear Johnny,

I recommend putting 100% of any non-retirement savings, above your emergency fund, toward paying off your mortgage until the mortgage is paid off. I’d still tell you to pay down the house, even if you were making 20% on your money. Just make sure you’re following the Baby Steps, and you’re already putting 15% of your income into good retirement investments before attacking the house. Paying down your mortgage is not an expenditure that’s just lost money. The cash is sitting there, you’re just banking it in land. And on a side note, with all the craziness in the market over the last three years, you might come to realize breaking even over that time wasn’t so bad after all.

Johnny, the shortest distance between where you are and your first $1 million to $5 million in net worth is getting your house paid off. After that, load 15% to 20% of your income into a serious retirement plan. And by that, I don’t mean playing financial footsie with some little brokerage account. Investing in good, growth stock mutual funds with a proven track record of at least 10 years is a proven way to build wealth the right way.

I’m sure you can find someone on TikTok telling you to do the exact opposite of what I’m suggesting. But you won’t find that kind of advice coming from real millionaires.

— Dave


Dave Ramsey

tape being used to close box...

Dave Ramsey

Dave Ramsey says: What’s fair to everyone concerned?

Before you make promises you can't keep, you should be thinking months ahead so that you aren't walking back on your word.

3 days ago

people sitting at table and looking at the computer...

Dave Ramsey

Dave Ramsey says: Here’s how to handle a small-business budget

You’ve got to project into the future and think about what you’re going to do and how you’re going to make it happen.

6 days ago

dave ramsey gives advice regarding life insurance policies...

Dave Ramsey

Dave Ramsey says: Opt for the long-term plan, not the short-term fix

In this week's letter from Dave Ramsey, he gives advice to people who have elderly parents without life insurance policies.

10 days ago

woman with book on her head...

Jade Warshaw

Dave Ramsey says: Here’s a new kind of student loan forgiveness

Millions of Americans will be required in October to begin making payments on their student loan debt, but are they financially ready for the new reality?

13 days ago

windshield broke...

Dave Ramsey

Dave Ramsey says: Take the bigger check, it’s quick and easy

If your vehicle has been damaged and you're left with options to claim money to put toward another car, here's what's best.

17 days ago

little boy puts money into piggy bank...

Dave Ramsey

Dave Ramsey says: Make them workers and givers

As parents doing financially well, there's a few things you can do to prepare your children for long-term success: teach them how to work and give.

24 days ago

Sponsored Articles



Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.

Home moving relocation in Arizona 2023...

BMS Moving

Tips for making your move in Arizona easier

If you're moving to a new home in Arizona, use this to-do list to alleviate some stress and ensure a smoother transition to your new home.



At Ability360, every day is Independence Day

With 100 different programs and services, more than 1,500 non-medically based home care staff, a world-renowned Sports & Fitness Center and over 15,000 people with disabilities served annually, across all ages and demographics, Ability360 is a nationwide leader in the disability community.

Dave Ramsey says: Put your money where your house is