Marc Guberti

Thu, May 22, 2025, 5:30 AM4 min read

Dave Ramsey has offered financial suggestions on his radio show, "The Ramsey Show," for decades. He has heard various stories and has helped people navigate their financial challenges.

However, he had a bit of a difficult time offering guidance for a recent caller. A 70-year-old woman won $200,000 from a game show and wanted advice on paying off the mortgage or saving the money. As the situation unfolded, Ramsey found himself in a tight spot.

"You're kind of in the middle," Ramsey stated during the episode.

Don't Miss:

• Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late.

• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share!

That's because she has $200,000 in a high-yield savings account and no other nest egg. She also owns a home with her husband and pays $756 per month on the mortgage. The mortgage balance is $85,000. If she had a net worth of $100,000, Ramsey would tell her to not pay the mortgage or else the couple would starve. However, if she had $600,000, Ramsey would suggest paying off the mortgage right away.

Here's what Ramsey suggested instead.

One of the glaring issues that exposed itself in the conversation is that the caller doesn't know where her money goes. The couple does not have a budget and is unsure about how they spend their money.

She acknowledged that it was an issue right when Ramsey asked her how much the couple spends. He wanted to know what money they had left over after their part-time job wages and Social Security checks arrived.

Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.

Creating a budget can help the couple discover opportunities to reduce their spending. Regardless of whether they pay off the mortgage or continue to save the money, the couple should keep a budget. However, Ramsey followed up the budget suggestion by explaining what he would do if he were in the couple's situation.

After thinking about it for a bit, Ramsey concludes that it is a good idea to pay off the mortgage. However, he ties some conditions to paying off the mortgage early. He wants the couple to invest $1,000 to $1,500 per month in a mutual fund. It will be easier for the couple to achieve this goal since they will no longer have $756 monthly mortgage payments.