Is Investing or Paying Off The House More Important?

Listen to how ordinary people built extraordinary wealth—and how you can too. You’ll learn how millionaires live on less than they make, avoid debt, invest, are disciplined and responsible! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, Christy Wright, Rachel Cruze, Anthony ONeal and John Delony. -

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[AnnaOllsson]

I’ve been diligently working, saving and contributing towards financial freedom and paying off my high interest mortgage, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.

[elchavinha]

I’ve taken steps into paying off my house, I managed to put 60k into it this last year… I just turned 28 I’m hoping to have it paid off by the time I turn 30, I have 98k left to pay with 10k in the bank and an 8k emergency fund… the thought of being able to pay off my home feels so good! Still single, debt free with a job I love (full time photographer)… I moved here from Mexico 10 years ago without a penny to my name, I learned english, made good financial decisions… this is the American Dream🙏🏻

[brrmols]

I was a little nervous about paying off the house, but I took Dave's advice and paid off the house. It was the best move I ever made. It reduced the stress of having a debt/payment, and now I am amazed how fast I am accumulating wealth with no house payment.

[plantsthewin]

Im going intense on my house....plan to have it paid off in Oct 2023. I want this mortgage GONE!

[bunkerputt]

I like this answer from Dave. The question is a lot like asking which pedal is more important when driving a car, the gas or the brake? If you're running off a cliff, the brake. If you're in a good stretch of highway, the gas. Same with finances on the road of life. Apply wisdom and figure out your situation.

[MP-njqy]

I refuse to keep sharing my roof with the bank for longer than I have to. I'm $65k away from paying off my mortgage, my deadline is Dec. 2022 for a total of 7 years, then I can quit working two jobs.

[VictoriaWood-ucmp]

I recommend diversifying your investments by considering stocks alongside real estate. During a recession, there are potential buying opportunities in the stock market if approached cautiously. Additionally, market volatility can offer short-term buying and selling opportunities. However, please note that this is not financial advice. It's important to be proactive in investing as cash may not be the most advantageous option during these times.

[FennaVa]

My wife and I's monthly payment was $3415 month. We would pay an extra $500 a month towards the principal. We currently just refinanced to get a lower interest rate and to get off of PMI. Our new monthly payment is $2918 a month. We plan on still paying $3700 a month but are now going to do bi-monthly payments.

[kdavis]

Look at your budget with only home insurance and property taxes. Are you able to quit your job or maybe work part time once it's paid? Also, do you like the home and area you live? Paying the house off will give you more options and peace. I love how Dave adds in "Giving like no one else". It's such a great way to live once you are debt free.

[ForgeofSouls]

If you want the house paid off that's a psychological benefit, it's also a better move if you are not doing anything else with the extra money paying the house is good. However, opening up a brokerage and starting up some ETFs is a more optimal move, especially when your returns beats your low mortgage rate.

[Donnafrank-ke]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing below the $100k mark and in the first 2 months, my portfolio was reading $234, 800. Crazy right!, I decided to reinvest a huge percentage of my profit and it got more interesting.! For over a year we have been working together making consistent profit just bought my second home at the beginning of summer.

[CalmerThanYouAre]

If she is in finance, she should know the smarter play is not to pay down the low-interest mortgage any faster than she has to. Investing is the way to go. Let your investments pay off your house 3-6 years down the road if you really want to pay it off. The probability is higher you will both pay it off faster and be wealthier in the long run.

[PhilipMurray]

Putting well-earned money into the stock market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me? I'm nearly 60.

[steve]

I am 56 retired and pulling $93, 000+ a year the only thing I am focused on is paying off the last 65, 000 on this house.

AFTER it is paid off I will throw that extra $5000. a month into mutuals .... I prefer the security of a paid for house.

[jeffmorse]

Investing should be the #1 priority. the math over time would always favor investment over paying off a 3-4% mortgage

[jogirl]

We’re at this same level. We struggle trying to find a compromise between paying off the house and saving for business/retirement investments.

[kurtismiller]

Paying off a house first means no more interest payments or mortgage.

[monicarenee]

Wanting to pay off my house is making me look for additional income opportunities I otherwise wouldn’t have due to comfort with a 30 year mortgage. I would not work all these side gigs just to invest the money. I know this because I didn’t do it until I had the goal for my “forever home” pushing me to want to earn more. I’ve almost doubled my salary in a few years just because I want to pay off my next house fast. I also invest still. It’s not (all) passive income, but it’s so rewarding.

[michaelwoods]

I really can't say about paying off the house as a priority, but it surely is freeing! You won't know the feeling until you do it. And then you're free to do whatever you like...

[deanalbertson]

I agree. Paying off the house is a type of investing.