Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Dave Says Don't Lose the Hog, Lose the Debt
Townhall.com ^ | February 29, 2012 | Dave Ramsey

Posted on 02/29/2012 12:58:13 PM PST by Altariel

Dear Dave,

My husband and I have been through Financial Peace University. I’ve always been the numbers nerd, although he’s catching on and doing pretty well. He has a motorcycle he bought a few years ago before we got married, and still owes $7,000 on it. My common sense says we need to sell it, but he doesn’t want to, even though we haven’t been riding in over a year. What should I do?

Gina

Dear Gina,

It sounds like he’s making progress, so we don’t want to ruin that. Here’s the question: if you win the bike battle, do you lose relationship war? In other words, if you force him to give up the motorcycle, will it damage the marriage and the progress he’s made toward getting out of debt and learning how to handle money?

If I were you, I’d first sit down with him and tell him how proud I am for the way he’s trying to improve the financial situation in your home. Then, I’d suggest that the motorcycle is a stumbling block to your shared financial goals. Ask him what he’d be willing to do to get the motorcycle paid off more quickly. Would he pick up a part-time job, or maybe sacrifice something else he’s spending money on?

But let him know the motorcycle isn’t really the issue. The issue is that you guys need a plan to get this $7,000 debt out of your life!

—Dave

(Single again … )

Word count: 374

Dear Dave,

I got divorced recently, and have custody of our children who are 12 and 17. I’m lucky enough to be debt-free, and I own the house we’re living in, which is worth about $350,000. I also have $160,000 in savings, and we receive $1,200 in child support every month. People are all telling me I should be investing, but each one tells me to do a different kind of investing. What do you suggest?

Mary

Dear Mary,

I know going through a divorce has got to be hard on you and your kids. Make sure you spend lots of time hugging on them and letting them know they’re loved. Fortunately, things are still pretty good in your world in a financial sense. Your net worth is a half-million dollars, plus you have no debt. Most ladies don’t find themselves as lucky money-wise after a divorce.

Don’t do too much with the $160,000 right now. Just park $100,000 of it in a CD for a year until you get over the shock of everything that has happened. You won’t make much money, but you won’t lose anything, either. Then, take the remaining $60,000, and invest it in good growth stock mutual funds – ones that are very conservative and have at least a 10-year track record of success.

You’ve also got to take a look down the road and decide what you want to do with the rest of your life. You’re going to be an empty-nester is a few years. Do you want to go back to school or maybe start your own business? You’ve got a little learning to do about investing, too. Taking a year or so will allow for education and thinking about what you want out of life. Knowledge has a way of erasing fear. Plus, you’ve got a responsibility to your kids to invest this money wisely.

When everything settles down a bit, just take your time, find a good investment professional with the heart of a teacher, and make sure you don’t put money into anything you don’t understand. Spend lots of time loving on your kids, too. That’ll help with the healing process as much as anything.

—Dave

* For more financial help please visit daveramsey.com.


TOPICS: Business/Economy
KEYWORDS: daveramsey; debt; money

1 posted on 02/29/2012 12:58:21 PM PST by Altariel
[ Post Reply | Private Reply | View Replies]

To: Altariel

Hey, if we vote out the Cretin-in-Chief this Nov, we can loose both the Hog and the dept.

Badda bing, badda boom!!


2 posted on 02/29/2012 1:00:39 PM PST by Da Coyote
[ Post Reply | Private Reply | To 1 | View Replies]

To: Altariel

Dear Mary,
Get a job.


3 posted on 02/29/2012 1:09:17 PM PST by Born to Conserve
[ Post Reply | Private Reply | To 1 | View Replies]

To: Altariel

Dear Mary,
Get a job.


4 posted on 02/29/2012 1:10:16 PM PST by Born to Conserve
[ Post Reply | Private Reply | To 1 | View Replies]

To: Altariel

I like Mr. Ramsey — I really enjoyed listening to him when I was driving from Richmond Airport to my apartment there.

I *was* debt-free but then went ahead and got a Mortgage (paid off in 7 years) when I got my new place in Irving. I *could* have paid cash but at 3.5% the mortgage is dang near free money.

I felt kind of bad for not being debt free anymore but the mortgage payment is so low I don’t feel it at all.

I should call his show when I get a minute to see if I did the right thing. We’ll be paying this one off in about 7 or 8 years. No plan for a new car for 10 years and we are slowly buying furniture for the new place.


5 posted on 02/29/2012 1:11:09 PM PST by freedumb2003 (Spoiler Alert! The secret to Terra Nova: THEY ARE ALL DEAD!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Altariel

IF Obama gets his wishes & starts taxing dividends at 64.5 % instead of about 15% today, there will be drastic drops in mutual funds growth & pensions in the entire country.

The chaos that kind of tax will kill our economy, period.


6 posted on 02/29/2012 1:11:32 PM PST by ridesthemiles
[ Post Reply | Private Reply | To 1 | View Replies]

To: Born to Conserve
Get a job.

That wasn't her question. You don't know enough about her situation to know if that is an appropriate response.
7 posted on 02/29/2012 1:46:12 PM PST by Dr. Sivana (May Mitt Romney be the Paul Tsongas of 2012.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Born to Conserve
Dear Mary, Get a job.

Sounds like she's a stay-at-home mom. It's a job.

8 posted on 02/29/2012 2:54:34 PM PST by ladyvet ( I would rather have Incitatus then the asses that are in congress today.)
[ Post Reply | Private Reply | To 3 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson