"This Isn't An Investment Strategy, This is Stupidity"
The Ramsey Show Highlights
Ramsey Network
4.5 • 840 Ratings
🗓️ 31 October 2025
⏱️ 5 minutes
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| 0:00.0 | Zander shops all the top-term insurance companies to save you money. |
| 0:06.8 | Get started at zander.com. |
| 0:08.5 | My situation here is I'm going to be receiving an annual bonus in a month, a few months, |
| 0:13.7 | and I'm trying to decide what is the best use for the cash. |
| 0:18.6 | So current situation, I have a little more than a emergency fund in the bank. I have |
| 0:24.0 | about 50,000 in cash right now, about 25 of which I would say is emergency fund related. And I'm |
| 0:30.9 | going to be getting a bonus of 60,000 gross, so probably about 40,000 after taxes. |
| 0:42.5 | Between my wife and I, we have about 50,000 in student loans. |
| 0:46.2 | And then I have, the only other debt we have is two mortgages. So I have a rental property that was originally my primary residence that I have about |
| 0:51.7 | 80,000 left on. |
| 0:53.7 | And then I have my current primary residence that I have about 80,000 left on, and then I have my current primary |
| 0:55.6 | residence that I have about 240,000 on. And the simple thought was put the money toward the |
| 1:03.9 | student loans, pay them off completely. But the rate on my current mortgage is about 7%, whereas |
| 1:10.3 | the rate on my rental mortgage is about 3.6, |
| 1:15.0 | and my student loans are at about 5. |
| 1:16.9 | Well, you'd still have... |
| 1:17.9 | So when I look at the long term, you're wrong. |
| 1:21.6 | You look at the wrong term, you've got to get rid of the stupid student loans. |
| 1:24.9 | You're not going to prosper as long as you keep those things around. |
| 1:27.1 | This is not an investment strategy. This is stupidity, and you've got to clean it up. Right. So the student loans was the, that was the first one where I assumed that's what I should probably put it towards. You're right. You assumed correctly. And then you'll still have, you'll still have a little bit because like you said, |
| 1:44.4 | your emergency fund is inflated. |
| 1:46.1 | So you'll still have a good chunk that. I'd take 25 and put it on a student loan a day. Uh-huh. And when the bonus comes in, pay off the rest of student loan. That's right. And then you'll still have money left over that if you wanted to throw it towards, what were you saying, your primary? Is that what you're trying to do? |
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