The Ramsey Show Highlights "This Isn't An Investment Strategy, This is Stupidity"
Oct 31, 2025
A caller seeks advice on how to allocate a $40k bonus, sparking a lively discussion about prioritizing financial obligations. Dave stresses the importance of paying off student loans first, declaring it essential before any investment moves. He then suggests tackling a rental mortgage next to free up cash flow quickly. The debate highlights how quickly paying off debt can make interest rates less significant, emphasizing the power of prompt financial decisions. Tune in for practical insights and solid money management tips!
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Pay Off Student Loans First
- Do pay off high-impact consumer debts (student loans) immediately instead of treating it like an investment choice.
- Then eliminate the smaller rental mortgage and refinance the high-rate primary to lower long-term interest costs.
Caller’s Rental And Income Snapshot
- The caller owns a rental with $80,000 remaining and a $240,000 primary mortgage while earning about $160k before bonus.
- The rental produces roughly $2,200 gross monthly rent and about $1,500 net cashflow.
Knock Out Small Mortgage Next
- Do clear the rental mortgage after eliminating student loans because its smaller balance makes it quick to pay off.
- Then refinance the primary mortgage to reduce its high interest rate and monthly cost.