Is This Plan Too Intense?
Travis wants to take drastic measures to not have a mortgage ... maybe too drastic even for Dave.
QUESTION: Travis and his family are almost debt free. They make $50,000 a year and have $50,000 in house debt, along with a $4,000 student loan. What does Dave think of them moving into their parent’s trailer, selling their house, and saving his wife’s entire salary for 5 years to buy a house? Dave doesn’t like the idea because of one major reason.
ANSWER: I would not sell my home. Your home is going up in value and you have a very reasonable mortgage that you can pay off if you focus on it. If you do this, you are going to lose all the house appreciation value and drastically lower your standard of living at the same time. I think you make plenty of money to pay this house off and become very prosperous during that 5 years without having to go to this extreme.