Friday, January 30, 2015
Davis Motor Sales banner ad
Posted on 2/2/14

dave says2 300KENTUCKY (12/1/13) – This week Dave discusses ' Slow down on mortgage acceleration' and 'Giving beyond tithing'

Dear Dave,
Should I pay a nominal fee to be enrolled in a mortgage accelerator program? - Jennifer

Dear Jennifer,
No, you should not. Mortgage accelerator programs are similar to the biweekly mortgage deals floating around out there. Paying on your mortgage biweekly is fine. Paying for the privilege is not.

In the biweekly mortgage program, you make a half-payment every two weeks. By doing this you will pay off the typical 30-year note in about 22 years. It works because there are 26 two-week periods in a year, and 26 half-payments equals 13 whole payments. It pays off your mortgage early because you’re making an extra payment every year. That’s what’s doing it. There’s nothing magical about every two weeks; it’s the fact that you’re paying extra principal.

Instead of paying your mortgage company an unnecessary “nominal fee,” just make an extra payment each year. Or, pay one-twelfth of a payment as a principal reduction with a separate check, in a separate envelope, every month. By doing that, you’ll pay off the loan just as quickly as with a biweekly arrangement.

If you’re just now taking out a mortgage and your lender can do a biweekly setup at no cost, then that’s great. Take them up on the offer. But we’re not going to pay them an additional fee so you can make extra payments on the principal. That’s just stupid! - Dave

Dear Dave,
My husband and I tithe, but right now we’re on Baby Step 2 of your plan and we’re expecting a child in a few months. Since we’re trying to pay off all our debt except for our home, what should we do about giving beyond our tithe in this situation? - Carrie

Dear Carrie,
Evangelical Christians recognize two types of giving in the Bible—tithes and offerings. The tithe is off the top, before you do anything else. That’s why I recommend people put it on the top line of their budget forms.

After that, offerings are almost impossible to find in Scripture until you’ve first taken care of your family. The normative method found is that offerings are to be taken out of your surplus. In my mind, while your family is in debt and you’re busy taking care of your household, there is no surplus. Just because something tugs at your heartstrings or someone spews out a toxic sermon on giving doesn’t mean that you need to give offerings above your tithe.

But here’s the good news. Once you’ve paid off your debt and have a fully loaded emergency fund in place, you’ll have the rest of your lives to open up and give like never before. Getting out of debt means you will gain control of your most powerful wealth-building tool—your income. And when that happens, you can give with extraordinary levels of generosity.

There are three things you can do with money—spend, save and give. And when you reach a point where you can give well, it’s the most fun you’ll ever have with money! - Dave

*Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at www.daveramsey.com.


Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

2/6/2014 - posted
3/13 - 16
1 DOW 17,362.21
-54.64 (-0.31%)    
2 S&P 2,020.47
-0.78 (-0.04%)    
3 NASDAQ 4,691.42
+8.01 (0.17%)    
2/6/2014 - posted
3/13 - 16

Most Read This Week

January 28, 2015 17192

UPDATED: Several Involved in Two-Vehicle Accident

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News
January 26, 2015 7498

KSP Arrests Two on Child Porn Charges; MPD…

in Top News For All Sites Touching Hopkins by Trooper Stu Recke
January 25, 2015 7311

Dean’s List Announced

in Top News For All Sites Touching Hopkins by Joyce Riggs
January 28, 2015 6549

Nortonville Man Accused of Meth Possession,…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
January 26, 2015 5207

School Board Votes 3-2 for Utility Tax

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
January 29, 2015 5136

Man Charged with Sexual Abuse of Child

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News
January 28, 2015 4725

Tax Recall Committee Formed Day After School…

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
January 25, 2015 4714

Juvenile Hit by Vehicle at McDonald's

in Local (Muhlenberg) Top News by GPD Officer Wes Miller

Most Read This Month

January 08, 2015 22315

Woman Claiming to be 'Lady Gaga' Tours Town in…

in Top News For All Sites by Madisonville Police Department
January 15, 2015 21962

UPDATE: Fatality Victim's Name Officially Released

in Top News For All Sites by Doreen Dennis, SurfKY News

Stories Trending Today

January 29, 2015 5136

Man Charged with Sexual Abuse of Child

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News
January 29, 2015 3192

UPDATE - Students Have until Jan. 31 to Enter…

in General News For All Sites by James R. Comer
January 29, 2015 1773

Kentucky Highway Crews Prepare for Possible…

in Top News For All Sites by Keith Todd
January 29, 2015 1752

Group Organizing Prayer Circle for Youth

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News
January 29, 2015 1599

Hopkins County Health Department Food Scores Thru…

in Hopkins News by Barry Franklin
January 29, 2015 1522

Hopkins County Sheriff's Reports Released

in Hopkins News by Hopkins County Sheriff's Office
January 29, 2015 1484

Madisonville Police Arrest Reports - Jan. 29, 2015

in Hopkins News by Madisonville Police Department
January 29, 2015 1287

Keystone Approval Will Boost the Economy, Support…

in General News For All Sites by Robert Steurer
January 29, 2015 1242

Probation and Parole Violators - January 29, 2015

in Video by Crime Stoppers
January 29, 2015 1230

Protect Your Sensitive Information from Hackers

in General News For All Sites by SurfKY News
January 29, 2015 1122

Whitfield Meets with Fort Campbell Soldiers

in General News For All Sites by Marty Irby
January 29, 2015 1095

Revive the Art of Letter-Writing

in General News For All Sites by SurfKY News