While purchasing a home is one of the most important decisions you'll ever make, it's crucial not to invest in a home that's priced above your means. For example, if you're pursuing a mortgage that's so high that you'll barely be able to make ends meet elsewhere in your life, you won't even be able to enjoy your home. The stress of financial insecurity can be all-consuming if your mortgage is far above your budget. That being said, your mortgage should be a rate you can comfortably cover without drastically changing your lifestyle. Make sure you leave enough in your budget after paying your mortgage to pay for other basic expenses.
With this quote, Ramsey reminds us not to fret about having a mortgage. Of course, if you can put 100% down on a home, do so. However, it's highly unlikely that this is the case for most people. While Ramsey - and all of us, really - doesn't like the idea of debt, he doesn't frown upon mortgage debt, as this is an unavoidable debt for most people. If you waited until you could put 100% down on a home, you likely would never purchase one. Some debts are inevitable. The important part about having a mortgage is ensuring it isn't above your budget and you can still live comfortably.
A vacation home is a wonderful 'extra' as you become more successful, but it is critical to remember that it is not a necessity. Prioritize your primary residence and ensure that it meets your family’s needs without overstretching your budget. The allure of a second home can often lead to financial strain if it becomes a priority over your main home. Choose wisely and balance your desires with your financial stability.
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