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Ask Dave

Disagreement Over Budgeting Priorities?

Kelly wonders why you should save for retirement and college before paying off the house?

QUESTION: Kelly and her husband are having a disagreement about the order in which they should do the baby steps.  Why does Dave tell people to save for college and retirement before paying off the house?

ANSWER: The reason I tell you to save for college and retirement before paying off the house is because I’ve counseled 72-year-olds who have a paid-for house with absolutely no retirement savings. 

You only need to contribute 15% to your retirement, which should leave you plenty to save for college and pay extra on the house to get it paid off sooner.  The average baby-stepper pays off their house, while funding their retirement and college savings, in seven years, after complete the first three baby steps.
Thank you! Your guide is on its way! 

Learn to Budget Like a Pro!

Learn to Budget Like a Pro

Get the Free EveryDollar Guide to Budgeting

Learn to Budget Like a Pro

Get the Free EveryDollar Guide to Budgeting