davesays300KENTUCKY (1/20/13) – This week Dave discusses be tightfisted until the crisis is over and should we ever buy a house?

Dear Dave,
Recently, my husband had to quit his job due to an old back injury. We have $25,000 in debt, but I’ll be receiving a $38,000 inheritance in a couple of weeks. Should we use the money to pay off our debt, or hold on to it in case he needs surgery? - Kristen

Dear Kristen,
Now is the time to keep the cash piled high. You’re in the middle of an emergency, and that means you push the pause button on your Total Money Makeover and stop paying extra on debt. Surgery is a possibility at this point, plus you may need some of that money to live on until his job situation improves.

Then, the moment he returns to work and things are stabilized, you jump back into getting control of your finances. Use whatever is left of the $38,000 to pay off debt that very day. But right now you don’t need to worry about becoming debt-free, only to turn around and be in a mess in the event he has trouble finding another job.

Let me give you a warning too. Thirty-eight thousand dollars is a great gift. If someone handed me a check for that amount, I’d cash it in a heartbeat. But it’s not $380,000 or $3.8 million. It’s easy to develop a false sense of security if you’ve never received a check of that size. This kind of money is enough to keep the wolf away from the door for a while, but it’s nothing to retire on.

This little nest egg is a real blessing, Kristen. Just make sure you handle it wisely, and take into account all of the possibilities over the next couple of months. In a best-case scenario your husband won’t need surgery, he’ll find a job pretty soon, and you guys won’t have to dig in to the inheritance money. Hang on to as much as possible, though. This sounds like a time of personal and professional transition for you both, and having that kind of extra cash around could be a lifesaver! - Dave

Dear Dave,
My husband and I are on Baby Step 2 of your plan. We move every two or three years due to our jobs, so would it ever make sense in our situation to buy a house? - Janelle

Dear Janelle,
In most cases like this it doesn’t make sense to buy a house, especially if the real estate market in your area is lethargic. Some markets have bounced back and are doing very well, while some are worse than slow. It all depends on where you’re moving.

Here’s the big question: Can you get the place sold quickly the next time you have to move? Another thing to consider is whether or not you can sell it for more than it cost when the time comes. If not, you’ll be writing a check for home ownership, and that’s not a good plan.

As a general rule, a two- to three-year window is not enough time to own a home. There are rare exceptions to this rule, places where you have a hot, escalating price market. But if you’re not careful you’ll end up leaving behind a rental property and playing landlord, whether you want to or not! - Dave

* Dave Ramsey is America’s trusted voice on money and business. He has 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 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 17,798.49
-14.90 (-0.08%)    
2 S&P 2,090.11
+1.24 (0.06%)    
3 NASDAQ 5,127.52
+11.38 (0.22%)    

Stock Report Sponsored by

In Other News...

Mahr Park Planning Committee to Meet Nov. 30

HOPKINS COUNTY, Ky. (11/27/15) — A special called meeting of the Mahr Park Planning Committee has been scheduled for 10… Read More

Local Teen Hospitalized after Officer-Involved Shooting

MADISONVILLE, Ky. (11/28/15) ― Kentucky State Police Post 2 in Madisonville is investigating an officer involved… Read More

Most Read This Week

November 24, 2015 10214

Distillery to Operate in Old Graham School…

by SurfKY News
November 21, 2015 8895

Injuries Result from Beulah Road Accident

by Doreen Dennis, SurfKY News
November 23, 2015 7756

Relative Charged with Murder, Arson in Deaths of…

by SurfKY News
November 24, 2015 4856

Ohio County Most Wanted - Top 10 - November 24

by SurfKY News
November 24, 2015 3427

Man Injured When Vehicle Collides with Deer

by SurfKY News

Most Read This Month

November 17, 2015 16305

Ohio County Most Wanted - Top 10 - November 17

by SurfKY News
November 18, 2015 14580

Runaway Teen Returns on His Own

by SurfKY News

Stories Trending Now

November 27, 2015 3001

Madisonville Man Charged with Attempted Murder…

by SurfKY News
November 28, 2015 2661

Woman Charged with Counterfeit Money Leads to…

by SurfKY News
November 28, 2015 2473

Local Teen Hospitalized after Officer-Involved…

by Doreen Dennis, SurfKY News
November 28, 2015 1886

KSP Arrests Ohio Co. Man on Drug Charges

by SurfKY News
November 27, 2015 1596

First United Bancorp Set to Purchase Town &…

by SurfKY News
November 27, 2015 1152

Farm City Breakfast Recognizes Importance of…

by Tammy Holloway, SurfKY News
November 27, 2015 1093

Hooked on Science - Pinecone Hygrometer

by SurfKY News
November 27, 2015 857

Webster County Man Injured in Two-Vehicle Crash

by SurfKY News
November 27, 2015 666

Governor-Elect Bevin Names Two Key Appointments…

by SurfKY News