{"id":17358,"date":"2020-10-30T22:10:00","date_gmt":"2020-10-31T02:10:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=17358"},"modified":"2020-11-11T17:43:28","modified_gmt":"2020-11-11T21:43:28","slug":"baby-step-6-total-money-makeover","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/baby-step-6-total-money-makeover\/","title":{"rendered":"Baby Step 6: Be Truly Debt Free & Pay Off Mortgage"},"content":{"rendered":"\n

What is baby step 6 of the Total Money Makeover<\/em> program? How can you pay off your mortgage?<\/p>\n\n\n\n

Baby step 6 is to pay off your mortgage. This is usually the largest debt people hold and freeing yourself from it is exciting.<\/p>\n\n\n\n

Read more about baby step 6 of the Total Money Makeover <\/em>program.<\/p>\n\n\n\n\n\n\n\n

Baby Step 6: Pay Off Your Mortgage<\/strong><\/h2>\n\n\n\n

By baby step 6 in your Total Money Makeover, you\u2019re nearly debt-free, you\u2019ve saved $10,000+ for emergencies, you\u2019re investing 15% of your income, and you\u2019re saving for your kids\u2019 college education. <\/p>\n\n\n\n

Being totally debt-free puts you among the top 10% or 15% of Americans. This accomplishment is like achieving marathoner status as a result of great effort and persistence\u2014but don\u2019t be tempted to rest on your laurels. You can become an ultra-marathoner by completing baby step 6\u2014paying off your home mortgage and becoming 100% debt-free.<\/p>\n\n\n\n

By now you know how to do it. There\u2019s no special formula. Devote every extra dollar you can find, beyond your emergency fund and investments, to paying extra on your mortgage each month until it\u2019s paid off.<\/p>\n\n\n\n

Most people believe that paying off a mortgage, especially early, is next to impossible. But numerous Total Money Makeover adherents do just that. For three to five years, they live differently from everyone else\u2014sacrificing to pay off their mortgage. Then they continue to live differently from everyone else by being debt-free.<\/p>\n\n\n\n

Most people who start a Total Money Makeover pay off their mortgage and complete baby step 6 about seven years later.<\/p>\n\n\n\n

Paying for a Home<\/strong><\/h3>\n\n\n\n

Of course, baby step 6 may not be necessary. The biggest myth about home-buying is that you need a mortgage in the first place\u2014that it\u2019s the only way to pay for a home.<\/p>\n\n\n\n

There\u2019s another way: paying 100% down. Paying cash for a home is possible if you save enough, long enough. For instance, a couple in the Total Money Makeover<\/a> program paid cash for a $150,000 home. With a household income of $80,000 a year, they did it by living on $30,000 and saving $50,000 a year for three years.<\/p>\n\n\n\n

That said, if you choose to take out a mortgage, follow these two rules:<\/p>\n\n\n\n