Wiggle Room On Baby Steps Program

Posted: Feb 23, 2018 9:58 AM
Wiggle Room On Baby Steps Program

Dear Dave,

My husband and I are in our forties. We have no children, and we bring home $95,000 a year combined. We’re also debt-free except for our home. We owe just $10,000 on the house, and can take care of that in a few months. Would it be okay to rearrange the Baby Steps a bit, and pay off our home before getting serious about saving for retirement?


Dear Nan,

I don’t usually give folks any wiggle room when it comes to sticking with the proper order of the Baby Steps. But if you’re that close to being completely debt-free, I don’t see anything wrong with paying off the house first.

Most people I talk to still have anywhere from $100,000 to $300,000 left on their mortgages. This is a little bit of a different story, however, and you two are obviously managing your money well. 

Knock out that mortgage, and start pouring at least 15 percent of your income into retirement. You’re going to love the feeling — and the freedom — that comes with being completely debt-free!