Would you believe this month will be our anniversary of 5 years debt-free? You can read about our final mortgage payoff here. Dave Ramsey’s final baby step is to “build wealth and give like no one else” and I thought over the coming weeks I would examine what Baby Step 7 looks like for us.
While it would be fun to tell you about a yacht or a luxury berth on the QE2, as the kind of practical people that follow Dave Ramsey, those are not choices we have made. A major amount of the money that would normally be spent on a mortgage payment has been directed towards saving for largish home renovations and repairs. A siding project that also required masonry work… flooring… painting that required patching… floor refinishing…and currently we are saving to add a bathroom in the basement.
When you have committed to being debt free and never paying interest, you have to save a lot to be able to pay for home renovations and repairs without financing. Sure we have 100% equity in our house, but we don’t view our home equity as a bank account to tap into.
Other Dave/Mr Money Mustache fans might choose to do some of this work themselves, and more power to you if that sounds like you. For us, a choice we can make being debt-free is to have someone else do the work and hire people whom we believe to be trustworthy and conscientious.
If you are following Dave, what are your priorities for Baby Step 7?
I’ll have some additional thoughts on living step 7 throughout the month.