CALLER: i opened a High Yield Savings Account. my $20,000 emergency fund earns 4.5% interest. that’s $900 a year doing nothing.


DAVE RAMSEY: get rid of it. put that $20,000 toward your mortgage!
CALLER: but i’m earning $900 a year for free.
DAVE RAMSEY: debt is the enemy! pay off the house!
CALLER: my mortgage rate is 3%. i’m earning 4.5%.
DAVE RAMSEY: that’s not how you get rich!
in reality, if your savings rate beats your debt rate, keep the cash. that’s called arbitrage.
every dollar matters.
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