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

Stock Report

1 DOW 16,614.81
+215.14 (1.31%)    
2 S&P 1,941.28
+37.27 (1.96%)    
3 NASDAQ 4,419.48
+103.40 (2.40%)    
2/6/2014 - posted
2/6/2014 - posted

In Other News...

Public Works Department to Start Pothole Campaign

OWENSBORO, Ky. (10/21/14) — In preparation for cold weather and the difficulty in obtaining hot asphalt mix for pothole… Read More

First Adult CO-ED Dodgeball League Looking for Players

OWENSBORO, Ky. (10/20/14) — The Owensboro Parks & Recreation Department is offering its first ever Adult Co-ed… Read More
2/6/2014 - posted

Most Read This Week

October 17, 2014 11532

UK Women's Soccer Welcomes Ole Miss, No. 5/4…

in General Sports For All Sites by UK Athletics
October 20, 2014 4232

Uncle Lee's in Greenville is Closing Its Doors…

in Local (Muhlenberg) Top News by www.unclelees.com
October 15, 2014 3593

Family Business, Graphics Pros to Open Friday

in Top News For All Sites by Shawn Freels
October 15, 2014 3442

Chamber Meeting and More Announced

in Local (Muhlenberg) Top News by Dorothy Walker
October 17, 2014 3343

Single Vehicle Collision Results in One Injury

in Local (Muhlenberg) Top News by Trooper S. C. Recke
October 15, 2014 3240

Madisonville Police Arrest Reports - Oct. 15, 2014

in Hopkins News by Madisonville Police Department
October 19, 2014 3198

Kentucky Energy Department Releases Virtual Solar…

in General News For All Sites by Dick Brown
October 15, 2014 2884

Woman Arrested for Domestic Dispute in the Street

in Local (Hopkins) Top News by Madisonville Police Department
October 17, 2014 2647

Woman Arrested at Taco Bell for DUI

in Local (Hopkins) Top News by Madisonville Police Department
October 16, 2014 2563

Madisonville Police Arrest Reports - Oct. 16, 2014

in Hopkins News by Madisonville Police Department

Stories Trending Today

October 20, 2014 4232

Uncle Lee's in Greenville is Closing Its Doors…

in Local (Muhlenberg) Top News by www.unclelees.com
October 20, 2014 2326

Man Charged for Assaulting Pregnant Wife

in Local (Hopkins) Top News by Madisonville Police Department
October 20, 2014 1680

Man Arrested for Shoplifting, Assaulting Police…

in Local (Hopkins) Top News by Madisonville Police Department
October 20, 2014 1389

Hopkins County Sheriff's Arrest Reports Released

in Hopkins News by Sheila Hopper
October 20, 2014 1307

Madisonville Police Arrest Reports - Oct. 20, 2014

in Hopkins News by Madisonville Police Department
October 20, 2014 1282

Paul Simon Headlines COPD Tribute for Phil Everly

in Top News For All Sites by Paul McRee, SurfKY News
October 20, 2014 1268

Muhlenberg Community Hospital Prepares for…

in Local (Muhlenberg) Top News by Erin Warren
October 21, 2014 1188

UPDATE: Pedestrian Struck by Vehicle on Shamrock…

in Local (Hopkins) Top News by Officer C.P. Haynie
October 20, 2014 1175

KU and LG&E to Fund Qualified Tree-Planting…

in General News For All Sites by Cliff Feltham
October 20, 2014 1065

Fall Frolic at Nature Station

in Lakes News by Land Between The Lakes

SurfKY News Group, Inc.
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