This last part cannot be over-stated as a benefit. Financial worry is a, if not THE, number one cause of stress, serious health problems, and worst of all, serious relationship problems. The bottom line is financial stress kills people and it kills marriages.
X3, don’t know Ramsey but was fortunate to learn this stuff growing up. Somehow got a little stupid in my 20s doing a career change but corrected shortly there after. Couple notes that have basically been said above.
Current situation: 48 years old, married, cash paid for toys, cars, etc. Starter home mortgage will be paid off next summer. 12 months worth of emergency liquid cash always available.
For an example to support Grouse. In spring 2020 we were facing the possibility of a double job loss. Wife was freaking out and I didn’t give two sh*ts. Saw an opportunity for an awesome summer. Why? Lack of debt leads to low fixed expenses. This is the key I learned in my late 20’s when I got laid off repeatedly doing IT contract work. She ended up with a short furlough and no interruption for me. Either way, wasn’t losing any sleep and no marriage stress.
Cars – 10 years to pay cash. Started the snowball with just $50/month extra on the payment. Tax refund, take 80% and put it on the loan. Paid off early, kept making the same payment to myself = bigger down payment. Make a little more money, $200/mo extra, lather rinse repeat. 10 years after starting the snowball I paid cash for a brand new vehicle. Still make a car payment, just to myself for the day when I buy the replacement.
