Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

Dave Says – Dec. 1, 2013

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 2014 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.

Posted on 2/2/14

SurfKY TV

2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013

Stock Report

1 DOW 17,374.37
+178.95 (1.04%)    
2 S&P 2,013.89
+19.24 (0.96%)    
3 NASDAQ 4,626.11
+59.97 (1.31%)    
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013

Most Read This Week

October 29, 2014 9109

UPDATE: Medical Examiner's Official Report…

in Local (Lakes) Top News by Dennis Thomas
October 27, 2014 6228

Earlington Woman Charged With Burglary for…

in Local (Hopkins) Top News by Madisonville Police Department
October 29, 2014 4454

UPDATE: Two More Arrested for Meth at Area Motel

in Local (Hopkins) Top News by Trooper Stu Recke
October 27, 2014 4448

Baptist Health Madisonville Performs Baptist…

in Local (Hopkins) Top News by Kristy Quinn
October 28, 2014 4298

UPDATE: 'Runner' Ran Home; Family Happy

in Hopkins News by Lisa Crook
October 29, 2014 4242

Central City Businessman Indicted by Grand Jury…

in Top News For All Sites by Charles W. Riley II, SurfKY News
October 28, 2014 3643

UPDATE: Extended to Wednesday; Heaven's Gates and…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
October 27, 2014 3443

Woman Charged for Domestic Assault with Scissors,…

in Local (Hopkins) Top News by Madisonville Police Department
October 28, 2014 3339

Hopkins County Grand Jury Indictments

in Hopkins News by Karen McKnight
October 30, 2014 3038

Three Injured When Pickup Truck Overturns

in Local (Hopkins) Top News by Rita Dukes Smith, SurfKY News Director

Stories Trending Today

October 30, 2014 3038

Three Injured When Pickup Truck Overturns

in Local (Hopkins) Top News by Rita Dukes Smith, SurfKY News Director
October 30, 2014 2648

UPDATE: Missing Elderly Couple Found

in Local (Hopkins) Top News by Chief William C. Crider
October 30, 2014 1802

Man Charged with Criminal Abuse of 2-Year-Old Girl

in Local (Hopkins) Top News by Lt. Charles Young II
October 30, 2014 1724

Man Accused of Using Bass Guitar to Strike…

in Local (Hopkins) Top News by Madisonville Police Department
October 30, 2014 1425

Madisonville Police Arrest Reports - Oct. 30, 2014

in Hopkins News by Madisonville Police Department
October 30, 2014 1307

Political Races Affecting Hopkins County

in Local (Hopkins) Top News by SurfKY News
October 30, 2014 1268

Man Charged for Criminal Trespassing at Cross…

in Local (Hopkins) Top News by Madisonville Police Department
October 30, 2014 1117

Bond, Conditions Set for Central City Man Accused…

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
October 30, 2014 1085

MCTI to Present 'Anne of Green Gables'

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
October 30, 2014 1084

Golden Arches Added to City’s Eastern Skyline;…

in Local (Hopkins) Top News by Tammy Holloway, SurfKY News

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss