Davis Motor Sales banner ad

dave ramsey turq 300KENTUCKY (5/5/13) – This week Dave discusses Essential expenses and She stole his identity.
 
Dear Dave,
I’m following your plan, and currently I have $14,000 in my emergency fund. What are essentials for three to six months of expenses? - Brian

Dear Brian,
Basically, you should ask yourself this question: What would it take to operate my household for a month? There are several different things that could be classified as “essentials,” but if you take those things and multiply the number by three, four, five or six, you’ll see how much money you need to have a fully loaded emergency fund of three to six months of expenses. This is Baby Step 3 in my plan.

Some people get really technical about exactly how many months of expenses they need to save in this range. And that’s okay. You can take a little time to evaluate things before moving on to Baby Step 4, which is investing 15 percent of your household income into Roth IRAs and other pre-tax retirement plans.

Believe me, it’s a great feeling to have a big pile of cash sitting there just for a rainy day. You don’t want to go nuts and make it so big that you sacrifice retirement or other important aspects of your life, but after a point you shouldn’t be too concerned whether you have three months or six months of expenses—or somewhere in between—saved just for emergencies.

Having a nice emergency fund, along with no debt, creates a wonderful sense of financial peace! - Dave
 
Dear Dave,
If a wife takes out a credit card in her husband’s name without his knowledge, and they get divorced, can the husband claim identity theft? - Nancy

Dear Nancy,
Absolutely! Unless they have power of attorney, anytime someone opens an account in a name other than their own, they have stolen an identity. Being married to someone doesn’t give you the right to sign their name to a document.

I knew a guy in the real estate business years ago who was doing a lot of property deals under his own name. Occasionally, the title company would require his wife’s signature, and he would sign her name on the papers himself. Sometimes he signed her name after calling her up and explaining what was happening, and she was okay with the situation. Then, he signed some papers she didn’t know about, and it came back to bite him. He was charged with criminal fraud!

You cannot legally sign your spouse’s name without first having power of attorney privileges. If you do, it’s called identity theft. It’s a crime anytime you lie to get 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 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 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 by using one of the social media links below.

In Other News...

Sorgho to Host ‘Zed’ Cartoonist

DAVIESS COUNTY, Ky. (1/31/15) — Sorgho Elementary School is hosting a Family Reading Night at 6:30 p.m. Tuesday, Feb.… Read More

Beyond Feeders and Feed: Creating a Bird-Friendly Yard

HENDERSON, Ky. (1/31/15) — Ever wonder why only the same half-dozen birds show up in your yard? Wish you could attract… Read More

Most Read This Week

January 28, 2015 18159

UPDATED: Several Involved in Two-Vehicle Accident

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News
January 26, 2015 9323

KSP Arrests Two on Child Porn Charges; MPD…

in Top News For All Sites Touching Hopkins by Trooper Stu Recke
January 28, 2015 7321

Nortonville Man Accused of Meth Possession,…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
January 26, 2015 6934

School Board Votes 3-2 for Utility Tax

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
January 25, 2015 6627

Juvenile Hit by Vehicle at McDonald's

in Local (Muhlenberg) Top News by GPD Officer Wes Miller
January 28, 2015 6483

Tax Recall Committee Formed Day After School…

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
January 31, 2015 6312

24-Year-Old Killed in One-Vehicle Collision

in Top News For All Sites Touching Hopkins by Rita Dukes Smith, SurfKY News Director
January 29, 2015 6306

Man Charged with Sexual Abuse of Child

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News

Most Read This Month

January 08, 2015 23723

Woman Claiming to be 'Lady Gaga' Tours Town in…

in Top News For All Sites by Madisonville Police Department
January 15, 2015 23305

UPDATE: Fatality Victim's Name Officially Released

in Top News For All Sites by Doreen Dennis, SurfKY News

Stories Trending Today

January 31, 2015 6312

24-Year-Old Killed in One-Vehicle Collision

in Top News For All Sites Touching Hopkins by Rita Dukes Smith, SurfKY News Director
January 30, 2015 6137

More Than 800 Gather to Encircle HCCHS

in Local (Hopkins) Top News by Tammy Holloway, SurfKY News
January 31, 2015 1635

UPDATED GAME STORY: Muhlenberg Mustangs Trample…

in Local (Muhlenberg) Top News by Mike Groves
January 30, 2015 1488

Governor, First Lady, Commissioner Celebrate New…

in Top News For All Sites by Office of the Governor
January 31, 2015 1347

Eating Only during 9-12 Hour Period May Help…

in General News For All Sites by Melissa Landon
January 31, 2015 1178

Hooked on Science - 'Chemical Reaction Splash'

in General News For All Sites by Jason Lindsey
January 31, 2015 1144

Happenings and Meetings - Hopkins County

in Hopkins News by Amber Averitt, SurfKY News
January 31, 2015 1094

Woman Veterans Video Now on KDVA YouTube

in General News For All Sites by Lisa Aug
January 31, 2015 1063

Keeping the Faith - 'Will Practice Make Perfect?'

in General News For All Sites by Ronnie McBrayer
January 31, 2015 867

Merle Travis Fans Pay Tribute to Thumbpicking…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
January 31, 2015 822

Daviess County Traffic Advisory

in Owensboro News by Keith Todd
January 31, 2015 618

Local Church Offering Food for Body, Mind, Spirit

in Local (Hopkins) Top News by Tammy Holloway, SurfKY News