It also doesn’t have to be one or the other. Big fan of things you can put on auto pilot and stop thinking about, even if not optimal. Putting the debt snowball on auto pilot is what allowed us to focus on building our startup. The default path worked regardless of outcome
One of my friends has followed the Dave Ramsey debt snowball plan to the letter.
Attends every annual conference. Proud Ramsey advocate.
Early 40s. Husband is a cop. Couple kids. Just a great, red-blooded Ohio family.
Probably makes $200k/year as a household (just a guess).
Over the last 10 years:
• Paid off house
• Paid off cars
• 529s funded for kids
• On track to retire around 55
Now look, I’m obviously a debt-user and advocate for going out there and building wealth.
The Ramsey plan is not a character fit for me, as I’m admittedly wired very ambitious, and enjoy investing, building my business, and taking on that responsibility (and risk).
But these folks are doing better than 90% of the country - in a stress free manner - simply by:
• Finding a plan
• Sticking to the plan
• Not increasing expenses as income and savings grow
Something to be said for that, I think.
Stuck to their guns, didn’t care that it was “boring”.
Didn’t listen to other people telling them to be more aggressive.
Very happy for them.