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You're listening to Ramsey everyday millionaires where we talk investing, retirement, building wealth and outrageous generosity. Jay is with us in Fort Lauderdale, Florida.

Hi Jay, how are you?

Dave, how are you doing?

Good man.

How can we help?

Well, I'm new to the show and I'm sure you get this question a lot but I've never heard the answer.

I'm trying to figure out why I should pay off a 2% mortgage with money that's making 5% or 15% or whatever.

I mean I can pay it off but man I get 12 years left on a 2% loan it's I can't what's your balance find the reasoning

92,000 okay all right so I understand your question and as a math nerd I used to make all of my decisions

through the math lens as well the more I've developed at teaching this stuff and learning

about it over 30 years and working with very very wealthy people one thing a couple

things that come to mind and I completely grasp your concept it seems ludicrous in the way you're looking at it to do that

but let's first break down and say what are you really making okay so at 92,000 I'll round it up for your benefit to 100 so the math is real easy.

And so if you're paying out 2% and let's just say you're making 7%. You're netting 5, agreed? Yes. Okay and so that's

5,000 bucks, right? Yes. Okay. What's your household income?

It's about 140. Okay, all right. And well it's actually more than that because I collect the pension as well. How old are you? I am 63. Okay, so am I. So, okay, so can we agree that $5,000 a year, $400 a month, is not going to make substantial difference in your wealth.

I mean we can agree that yeah. It's 400 bucks. A lot of families spend that on pizza.

Great. Great.

Okay.

So, I mean, it's not a lot of money we're talking about.

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