In light of rising economic uncertainty, personal finance expert Suze Orman advises individuals against hastily using savings to pay off mortgages after job loss fears arise. On her podcast, she addressed a listener whose spouse, a federal worker, faces potential layoffs. She counseled to keep savings intact for now, emphasizing that preemptively paying off a mortgage might hinder future financial flexibility. Orman argues that although paying off a mortgage provides peace of mind, preserving savings maximizes potential growth and ensures a financial safety net in case of emergencies.
"We don't know that he's going to definitely lose his job. You can always pay off the mortgage [with savings], but why not let the savings grow and make a nice interest rate..."
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