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.

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.

In Other News...

Aces Upend University Heights, 6-2

HOPKINSVILLE, Ky. (4/20/15) — John Mark Boarman belted a three-run home run in the bottom half of the fifth inning to… Read More

Owensboro Health Announces Medical Group Changing Name to 'One Health'

OWENSBORO, Ky. (4/20/15) — Owensboro Health has renamed its medical group to One Health, a move that reflects the… Read More
1 DOW 18,034.93
+208.63 (1.17%)    
2 S&P 2,100.40
+19.22 (0.92%)    
3 NASDAQ 4,994.60
+62.79 (1.27%)    

Most Read This Week

April 17, 2015 8942

An Open Letter from an Addict

by Olivia Kirks
April 13, 2015 6329

Three Juveniles, Adult Accused of Vandalizing…

by Deputy Will Coursey
April 14, 2015 5471

Several Juveniles Charged in Connection with Fight

by SurfKY News
April 18, 2015 5244

Man Charged with Attempting to Coerce Minor for…

by Madisonville Police Department
April 16, 2015 3530

Crime Stoppers Fugitive of the Week – April 16,…

by Hopkinsville – Christian County Crime Stoppers

Most Read This Month

April 17, 2015 8942

An Open Letter from an Addict

by Olivia Kirks
April 02, 2015 8565

UPDATE: Madisonville Man Injured in Head-on…

by Doreen Dennis, SurfKY News

Stories Trending Now

April 20, 2015 3295

Nortonville Woman Charged with Meth Possession at…

by Madisonville Police Department
April 19, 2015 2382

ATV Ride, Cookout Raises Funds for Shanice Bean…

by Tammy Holloway, SurfKY News
April 20, 2015 1416

Madisonville Man Charged with Sex Abuse of Two…

by SurfKY News
April 19, 2015 1225

Tru Blue BBQ Wins Earlington Downtown Showdown BBQ

by Tammy Holloway, SurfKY News
April 20, 2015 1184

Traffic Stop Results in DUI, Drug Possession,…

by SurfKY News
April 18, 2015 963

Home, Garden Show Concludes Today at Ballard…

by Tammy Holloway, SurfKY News
April 20, 2015 957

Pick Greenville's 'Saturdays on the Square' Free…

by Beth Newman
April 19, 2015 853

Children Thrilled with Superhero Pancake Breakfast

by Tammy Holloway, SurfKY News
April 19, 2015 818

Gov. Beshear Orders Flags to Half-Staff on April…

by Office of the Governor
April 19, 2015 667

KET Documentary Follows UK Doctor's Work Helping…

by Elizabeth Adams