you're listening to Ramsey every day millionaires where we talk retirement building wealth and outrageous generosity.

And up next we have John in New York. Hey John welcome to the show. Hey guys big fan of the show. Hi John. How are you today?

We're doing great thanks for giving us a call. How can we help? I have a tough one. Okay. I have 170,000 remaining

ballots on my 15 year fixed mortgage. Okay. 2.0% rate. So it's a great rate. Financial

advisor and accountant insist I should not pay it off as they all do. However I have about 170,000 in

favor. The problem is I skip the baby step and I have no college savings for the kids. Okay. If I pay it off I have no

other debt. I can immediately start down. So I did skip that baby step. What's your mortgage?

17. No what do you pay every month in your mortgage? Principal on interest is about 2600. Okay. Holder kids. 11.

Seven and five. Okay. Okay. And household income is about 400. Oh nice. Okay. Okay. Can I say what I'm doing in my house?

Yes sir. If I have a 12 year old and a six year old and if I was in your exact exact same boat and I had 170,000

dollars in savings I would pay my house off before the end of the day is over. Full stop. You know I've always gotten me.

Yeah I love it. I've always gotten me advice that God willing I can continue to work and when they start college I'd pay for that out of my earnings.

So I never really you know started anything up. Yeah. With the anticipation that I would hopefully pay this off. Absolutely. Yep.

If I pay it off though emergency fund is gone so I should probably wait a few months to get that off. Yeah I was going to say don't

cash it all out. That's not including emergency fund. Yeah. Yeah. I think so. Don't do that. Yeah keeps keep three months and then yes and then but write a big check tonight.

I mean like have have a level of it to be like okay we're we're getting there and yes what you're saying with your income. Yeah with your income level.

Obviously depending on where your kids go to school because they all won't be in school together at the exact same time that you may be able to cash flow it completely.

Just off of your income but the question is yeah will you will you have that. That same level of income in in ten years. Let me do this here's some back of the napkin math okay I'm just using my cell phone calculator here.

If you take that twenty six hundred dollars that you pay every month. And multiply it by twelve that's thirty one thousand dollars a year you're sending not including your taxes okay.

Your child is eleven is that what you said you're oldest. Yeah okay so it's seven years till they go to college. So if I just take thirty one thousand dollars times seven that's two hundred and eighteen is two hundred twenty thousand bucks.

That you can have by not changing your life in any shape form or fashion just continuing to pay your mortgage. See what I'm saying. Yeah that's not cash.

That's just if you just kept making your mortgage payment and stuck it in a in a zero sum. I mean a zero percent earning checking account.

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