Baby Step #6 - Pay off your home mortgage!
Dave Ramsey's Baby Step #6 is a biggie -- a seemingly monumental task for many families, at least until you've been working your way through the lower steps. I'm currently in this place and, let me tell you, it's the most invigorating one yet! My family & I are so excited at this prospect and what it will do for our financial future. Just imagine, if you have your house paid off all that money you normally send to the mortgage company will one day be used for....well, what would YOU want to use it for? That's the point, amazing, yes?
Dave recommends that you do steps #4, 5 & 6 together. From step #4 you know that you should be putting 15% of your income away for retirement. Don't stop or reduce this while you're also doing baby step #6. Same for kids' college, if you choose to help fund it for them, you don't want to do it to the exclusion of either your retirement (step #4) or paying off your home to secure your financial future (#6).
If you're an accountant like me, you love playing with your home amortization schedule to see how fast you can get to the finish line by adding $500, $1000, or more each month to your payment. If you need some help with this, a financial adviser or coach will be able to assist you.