Today I’m sharing with you our experience so far of being on Baby Step 6 of Dave Ramsey’s 7 Baby Steps.

Check out Deedra’s Channel:
https://www.youtube.com/channel/UCXCq2D3t0YH0ABlMo3RbJBw

Also be sure to check out these other YouTubers who are also working on Baby Step 6:
The Fun and Budget Act: https://www.youtube.com/watch?v=y517uIQ-BOc
Delisa Lyfe: https://www.youtube.com/watch?v=2mSdl2J5XHE
Cash Flowing Life: https://www.youtube.com/watch?v=mLgGbRNk1Qc
The Former Mrs. Jones: https://www.youtube.com/watch?v=xg9WASVG9fo
Jessica Ashley: https://www.youtube.com/watch?v=q2pjDqBLnIE
Reynelle: https://www.youtube.com/watch?v=addiPsO4hlk

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Our Life… On A Budget : Baby Step 6 TAG: Paying off the Mortgage

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40 COMMENTS

  1. Thanks for your numbers and year calculations. They are eye opening. Those color-in charts don't do anything for me, but my own chart that I have where I simply write the numbers dwindling down. I write it in pencil and once I get down a few $100s, I write that number down in black marker instead of pencil for that notation and then continue down in pencil again. The weird thing now, is that I'm monitoring my interest going down, too, and not just my balance. For instance, while still in debt, regardless of what I pay from now to the rest of the year, I'll be paying $500 in interest for all debt.

  2. Live like no one else as Dave Ramsey states! We never had cable. We never take vacations. We Squeeze out any extra money at the end of the month to throw extra on the principal. Fear is a great motivator! I love safety and it feels good to have savings, 401k and paying down the house! Its sad but we barely have a social life. But we must cut back as we both work in retail, so our income is low. Disciplined! Evaluate our savings rate monthly. Watch some folks like Steve and Courtney from A Streamin Life on youtube- they retired by age 30! We live on $28,000 @ year…

  3. Great video I did print out the colour mortgage chart but I don't know how to work out the figures as it's different than savings with the interest of the mortgage going up needs to be taken into account any ideas I'd appreciate your help 🙂

  4. Great video I think we have about 10 yrs left on our mortgage. I haven't bought the book yet and I was just wondering from a fellow Canadian how effective the program is as I live in the suburbs of Ottawa

  5. THANK YOU, THANK YOU AND THANK YOU. I love the fact that your so real and humble. Yes, I think the same! Its going to take "forever to pay off". 😉🤣🤣 That made my day!

  6. We're on Baby step 6 too. Here are some smaller, alternative goals to celebrate on the way. What's the date you knock that sucker under $100,000? What's the date that you get the payment ratio flip? (the point where more than 50% of your payment is actually going towards principle rather than interest?) From the date you started paying attention (or the beginning if you were already aware) when is your principle at HALF of the original amount? When is the earliest date (assuming you have a regular savings plan) that you COULD just pay it off, even if it drained your saving down to one month's full bills? Some interesting thoughts, IF you have no mortgage payment, so all you have to pay is the taxes and insurance (add 10% when you calculate it just in case), and you have your 6 months CURRENT expenses saved, how far will that money actually go as soon as you no longer have to make that loan payment?! Best luck!

  7. Were having an anuity mortgage which means the mortgage gets paid of in 30 years.
    Its fixed on a very low intrest rate and we decided not to pay of extra but to invest the money we have left en get we hope a return of about 5-8 percent on it.
    So after 20 years when the fixed mortgage stops we are planning to pay the rest or not because our house will be taxed if its paid of.

  8. what is your annual income? have you taken into account how your principal payment increases and your interest decreases over the time of the mortgage . If you have a decent annual income I would think ( with no other debt) you could do a 4 to 5 year plan

  9. Baby Step 6 is where I think the Ramsey plan requires each person to take a seriously hard look at their financial situation and be sure that paying off the house early is worth it. When all you have is the mortgage, if it's low interest, on a 15 year note, and you are paying a bit extra each month, I think that is much more sensible for most people. It's important to balance living your (one and only) life with financial goals. Your house is paid off the year you retire, and if you have that time to save and invest and compound interest, you might come out ahead by not paying off the house early. In the end, everyone should run the numbers and do what's right for their situation- and that might not necessarily be what Dave says is the right thing!

  10. I am surprised at your 15 year amortization. We owe over 250k and our amortization is about 15 years too. We are at the beginning of our home ownership.
    We played with the amortization at the beginning to maximize our payments, something to think about when your term is up. It really helps motivate me.

  11. We have been debt free including mortgage since 2014. I am cheering for you guys. We really don't have any experience with the baby steps. We paid off our debt by just being disciplined. Just take it one payment at a time.

  12. Remember, every extra penny paid on your mortgage goes straight to principal! Less money to add interest to. Unless they don't do that in Canada. : ) There's got to be an app or website that you can use to calculate how long it could take you to pay off your mortgage. Figure how much extra you want to pay a month and stick to that number. We chose to divide our monthly payment by 12 months and pay that much extra. It can take off more years than you think. Good luck!

  13. Thank you for sharing! I found this so inspiring! We just paid off a credit card and have almost all of our 6 month emergency fund in place. We still have one remaining loan to pay off but feel so much better knowing we have that emergency fund in place, we can focus on paying off the loan and then onto paying off the mortgage. We will be downsizing so hopefully when we get to baby step 6 we will have a smaller mortgage so less to pay off. Do you get to go back to Dave's to do a mortgage free scream? Is there such a thing?

  14. Hi from Australia! An interesting book to read is The Barefoot Investor (Aussie guy) who recommends splitting your wage by percentage. 60% expenses, 10% splurge (fun money), 10% smile (cars, holidays) and 20% fire extinguisher (extra money that goes towards your debt). Easier for those who struggle with zero doller budgets!
    Love your channel! It was you that inspired me to get serious with money and get rid of the debt. Watching you be able to pay for cars, holidays in cash has been very motivating!

  15. We have been debt free for a few years. We are closing on a house I am determined to have it pd off in five yrs. What helps us is having a chart and when we meet a goal we treat ourselves. So when we pd off 35k of debt every 5k we did something fun. We planned in advance to get the best price and the farther along we went we made it a bigger reward. 5k was dinner out, 10k was bowling, all the way up to the pay off where we took the kids to TN for a 2 week trip. We didn't feel deprived and we enjoyed our boys growing up while doing it.

  16. You got this. Close your eyes and pretend it is 15 years from now, you are retired, your house is paid off, your kids have graduated, and you have chunky investments. Then smile at how smart and awesome you are!

  17. Baby step 6 is the step I won't be pushing. I'd rather get that interest from adding extra money to our 401ks,iras,and enjoying our family. I will say though that we are only 29 and our mortgage will be paid off by 43 if we don't do anything extra. So I'm not too worried about having years without a mortgage. Our interest is also very low. Doing this we allow us to retire by 50 and 55 IF we decide to.

  18. I daydream about how life will be once the mortgage is paid off-that motivates me. At the end of this month we’ll be in the $129,900’s woooot! I love my chart too each line is $5,500 on ours. It’s definitely a marathon though but wish it was a sprint!

  19. I too am on BS 6, last year I started putting money on the mortgage but then took a break to save money for renos but I then took the reno money and went on a 2 week Greece/Bulgaria vacation (and even came home way under budget), now that I'm up for renewal end of summer I figure I will put money down on it until then and then decide to either continue or save again for the renos–or a little in both

  20. We are choosing to pay extra on our mortgage but still prioritize travel and home renos. Our mortgage is at $67,000 now, which is pretty exciting! We've been had a mortgage for almost 13 years, but only 5 years in our current home. I would love to have to paid off in 3-4 years if we are actually paying it down using just our income. But we also have a rental home we could sell anytime and easily cover the balance and put skme toward retirement. I just need to convince my hubby to sell now! He isn't in a rush but I feel the pressure of our kids growing up and needing more of our income to be available to save for school, weddings, braves, etc.

  21. I very much want to be mortgage debt free. Having a mortgage makes so I have to continue to work full time at a job that I am not enjoying. We just can't seem to find a way to do it very fast. We have been considering downsizing but housing prices are so high and inventory is so low.

  22. Wow, you are retiring young. Most Canadians retire at age 60 to 65 when you get your old age pension. Another possibilty would be keep working longer since you will be only in your 50s and fully retired. Also, my dad retired early with a pension but had to get another job because it can be very boring and expensive to retire to early. Another possibilty would be to sell your home and use equity to buy a smaller home or condo when the kids leave leave the nest. Lowering upkeep cost.

  23. We’re trying to pay off our mortgage by the time our oldest child finishes elementary school (4 years), but it’s really tough on one income. It would be slightly easier if we weren’t deviating from Dave’s plan a bit and doing more than the 15% retirement recommendation… we want to allow that extra time for compound interest to do as much as possible for us over the next 30 years or so. So yeah… we have no life. Lol. As Dave says, ‘Live like no one else now…’ 😉

  24. This is our struggle too. We are "slow-paying" extra on our mortgage by sending $200 – $300 extra per month. This will shave some time off, but we can't bring ourselves to get really intense about it because there is a lot of life to be lived, and tomorrow isn't promised. I think it's a good balance for us.

  25. I don't think my bank allows me to dump money down on the mortgage 🤔 I'm allowed one extra payment or one lump sum of 10% of the mortgage per year. My mortgage is up for renewal later in this spring, I think I will pay it all off since it's not super huge amount.

  26. Thank you so much for doing the TAG!! It is still hard for us on Baby Step 6! It is so daunting!! It seems like its dragging on. LOL We have paid off a little over 20% since January. Finding balance is hard. Like you said any little bit helps! Thanks so much for sharing Angela!!

  27. If you need motivation, just pull out your amortization table and look at the amount of interest you save for every level you drop down the chart…take a look you will be surprised at the actual dollars you save!!!

  28. Do you incur fees if you pay off your mortgage too fast? Here, if we pay it off five years or more before the end date we incur fees. We worked out that we if we pay an extra 100 every month off it'll take less than 5 years off and we won't pay any extra and save lots of interest!

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