dave R 300KENTUCKY (3/17/13) – This week Dave discusses Can I motivate my parents? And No on rent-to-own!

Dear Dave,
My parents are close to retirement and very heavily leveraged. Do you have any advice on how I can help motivate them to succeed financially? - Jack

Dear Jack,
I appreciate your concern for your mom and dad, but I’m not sure you can motivate anyone to do something. Sometimes people don’t have motivation because they’ve lost hope. In turn, it’s that sense of hopelessness that keeps them from moving forward. I think in these situations the best you can do is to show them hope. And one of the best ways to do that is to share your own story. You can also examine the numbers with them to show that the light at the end of the tunnel isn’t always an oncoming train.

I do this a lot with callers on my radio show. After we look at the pieces of the puzzle together, I might show them how they can pay off $50,000 of debt in a year’s time. Most of these people aren’t bankrupt; they’re just plain scared. So there’s a lot of power in that little word “hope.”

Sit down with your parents and let them know how much you love them and want them to enjoy their retirement. See if you can find out how much income they have versus the amount of debt they’ve piled up, then begin to formulate a step-by-step plan. Show them how they can begin to get traction and free up their money by living on a budget and getting out of debt. You can even offer to be their counselor or accountability partner.

You want them to be safe and secure in their retirement, and they deserve some dignity after working hard all their lives. So, in my mind, hope is the best thing you can offer. Motivation is a different story. That has to come from within. You can’t really motivate the unmotivated. - Dave

Dear Dave,
What do you think about rent-to-own housing? I’m not sure we’re financially ready to buy yet, but we don’t like giving money to landlords. Is rent-to-own a wise compromise? - Mike

Dear Mike,
I wouldn’t recommend getting mixed up in a rent-to-own situation. I don’t think it’s a wise compromise, and it’s also the kind of deal that works out well for the landlord, not the buyer.

If you’re not financially ready to purchase a house, then you need to get your life in order before you take on a major commitment like becoming a homeowner. Get your debts paid off, get an emergency fund of three to six months of expenses in place, and save up for a down payment of 20 percent. I know it’ll take some time and it might be difficult, but that’s what I’d recommend.

Buying a home when you’re broke, or trying to trick the system with a rent-to-own deal, usually doesn’t work. I spent a lot of time in the real estate business, and I still own several properties. I don’t do these deals because statistically the majority of people who rent to own never end up owning the property.

Take my advice and go slow, Mike. When you buy a home, you want it to be a blessing, not a burden! - 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 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.

e-max.it: your social media marketing partner

LIKE SurfKY on Facebook - Click here to LIKE us now.

© 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 on social media.

Weather Sponsored by

1 DOW 17,719.92
-78.57 (-0.44%)    
2 S&P 2,080.41
-9.70 (-0.46%)    
3 NASDAQ 5,108.67
-18.86 (-0.37%)    

Stock Report Sponsored by

In Other News...

Meth, Marijuana, Synthetics Seized during Drug Bust

MADISONVILLE, Ky. (11/30/15) — Three Hopkins County residents were charged with drugs after a Hopkins County deputy… Read More

Sheriff's Dept. Arrests 2 Men on Drug Charges

GREENVILLE, Ky. (11/30/15) — Over the Thanksgiving weekend, the Muhlenberg County Sheriff's Department arrested two men… Read More

Most Read This Week

November 24, 2015 10648

Distillery to Operate in Old Graham School…

by SurfKY News
November 24, 2015 6883

Ohio County Most Wanted - Top 10 - November 24

by SurfKY News
November 30, 2015 5398

Meth, Marijuana, Synthetics Seized during Drug…

by SurfKY News
November 28, 2015 5127

Local Teen Hospitalized after Officer-Involved…

by Doreen Dennis, SurfKY News
November 28, 2015 4925

Woman Charged with Counterfeit Money Leads to…

by SurfKY News

Most Read This Month

November 17, 2015 17473

Ohio County Most Wanted - Top 10 - November 17

by SurfKY News
November 18, 2015 15747

Runaway Teen Returns on His Own

by SurfKY News

Stories Trending Now

November 30, 2015 5398

Meth, Marijuana, Synthetics Seized during Drug…

by SurfKY News
November 30, 2015 3876

No. 9 Steakhouse Rises from Ashes to New Heights

by Doreen Dennis, SurfKY News
November 30, 2015 1763

Alleged Thanksgiving Day Tantrum Lands…

by SurfKY News
November 30, 2015 1043

Sheriff's Dept. Arrests 2 Men on Drug Charges

by SurfKY News
November 30, 2015 939

Pet of the Day - Asher

by SurfKY News
November 29, 2015 885

Puppy Power: Law Students De-stress during 'Dog…

by SurfKY News
November 29, 2015 820

Veterans to Play Key Role in Inaugural Parade

by SurfKY News
November 29, 2015 713

Dave Says - Nov. 29, 2015

by SurfKY News
November 29, 2015 627

Legislator's Log - Week of Nov. 29, 2015

by SurfKY News
November 30, 2015 606

EDC Entrepreneurial Director Named Vice President

by SurfKY News