Today, we cover this question:
My husband and I love your show and would LOVE IT if you could help us answer a question from your point-of-view.
- We’re completely debt-free except for our house.
- We make around $130,000 per year.
- We’re currently investing 10% for retirement.
- We are dead-set on paying off the house in the next 2.5 to 3 years.
Dave Ramsey suggests saving 15% for retirement for someone in our position. We can do this..but that’ll slow down our house payment goal quite substantially (or, in my mind it’s substantial, as I want this house paid off TOMORROW!)
The goal after the house repayment is to throw everything we can spare towards investing in retirement funds.
Should we stay strong on our course to pay off the house in 3 years tops only saving about 10% for retirement or do we bump up retirement savings? Ultimately how do I figure out the opportunity cost in each scenario?
Thanks so much!
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- This is the debt-payoff calculator that I use constantly! https://www.vertex42.com/Calculators/debt-reduction-calculator.html