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.

In Other News...

Neighborhood Alliance Program Meetings - August 2015

OWENSBORO, Ky. (8/3/15) — The following is a list of the City of Owensboro Neighborhood Alliance Program August 2015… Read More

Bluegrass in the Park Folklife Festival Set for Aug. 7-8 in Henderson

HENDERSON, Ky. (8/2/15) — Thirty years, over 250 bands, one riverfront location, one of the first festivals of its kind… Read More
1 DOW 17,598.20
-91.66 (-0.52%)    
2 S&P 2,098.04
-5.80 (-0.28%)    
3 NASDAQ 5,115.38
-12.90 (-0.25%)    

Most Read This Week

July 30, 2015 3859

Webster Man Leads Police on Chase through Parts…

by SurfKY News
July 31, 2015 3784

Miss Hopkins County Fair 2015 Chosen

by Tammy Holloway, SurfKY News
July 28, 2015 2865

Hanson, Owensboro, Bowling Green Youths Win at…

by Tammy Holloway, SurfKY News
August 01, 2015 2583

24th Annual Miss Teen Hopkins County Fair Pageant…

by Tammy Holloway, SurfKY News
July 29, 2015 2506

Crime Stoppers Top Most Wanted - July 29, 2015

by SurfKY News

Most Read This Month

July 17, 2015 16713

Muhlenberg Most Wanted - Top 10

by SurfKY News
July 23, 2015 15701

UPDATE: Family Confirms Body of Missing Teen…

by Shawn Freels, SurfKY News

Stories Trending Now

August 02, 2015 1793

Poole Wins Hopkins County Fair Talent Show

by Tammy Holloway, SurfKY News
August 03, 2015 1475

Tiniest Division of Hopkins County Fair Pageants…

by Tammy Holloway, SurfKY News
August 03, 2015 1323

Two Injured in Motorcycle Accident

by SurfKY News
August 02, 2015 1290

Community Helps ‘Cram the Hummer’ for School…

by Tammy Holloway, SurfKY News
August 03, 2015 1066

Man Accused of Using Craig's List to Encourage…

by SurfKY News
August 02, 2015 942

Spinal Cord Injury Patient's Foundation Sponsors…

by SurfKY News
August 03, 2015 939

Back To School Bash Brings Crowd to Mall

by Tammy Holloway, SurfKY News
August 03, 2015 730

Two Vehicle Collision Injures One, Driver…

by SurfKY News
August 03, 2015 673

Vehicle Accident Results in One Fatality

by SurfKY News
August 02, 2015 630

'The Free' Gets Greenville Crowd Groovin'

by Mike Groves, SurfKY News