Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster

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.

Most Read This Week (Site-Wide)

September 19, 2014 4833

Madisonville Man Among Three Arrested for…

in Top Stories by Muhlenberg Sheriff Curtis McGehee
September 20, 2014 3718

Large Cache of Drugs, Cash, Gun Seized;…

in Top Stories by MCSO PIO Alex Piper
September 19, 2014 2878

Five Injured in Two-Vehicle Collision at…

in Top Stories by MPD Officer Russell Nichols
September 22, 2014 2528

Medical Emergency Ends in Drug Arrest at…

in News by Madisonville Police Department
September 19, 2014 2487

Focus on Hopkins County: Crossfire

in News by Focus on Hopkins County

Most Read Stories from Hopkins County

September 19, 2014 2878

Five Injured in Two-Vehicle Collision at…

in Top Stories by MPD Officer Russell Nichols
September 22, 2014 1827

Man Arrested for Slashing Tires

in Top Stories by Madisonville Police Department
September 22, 2014 1591

Man Strikes Tree, Arrested for DUI,…

in Top Stories by Madisonville Police Department
September 19, 2014 1518

My Kentucky Roads - Twin Maples Farm in…

in Top Stories by Amber Averitt, SurfKY News
September 20, 2014 1214

Teams Race to Benefit Hopkins County…

in Top Stories by Ami Clayton, SurfKY News

Most Read Stories from Owensboro

September 20, 2014 1145

Man Charged with Theft After KSP…

in Top Stories by Alexis McGee
September 19, 2014 920

STREET CLOSINGS FOR MONDAY, SEPTEMBER 22

in Top Stories by Abby Shelton
September 19, 2014 902

Police Searching for Hit-And-Run Driver

in Top Stories by Jennifer Smith, DCSO
September 22, 2014 467

Buffalo Paint Out Brings Regional Artists…

in Top Stories by Owensboro Museum of Fine Art
September 19, 2014 406

Owensboro Museum of Fine Art News

in Top Stories by Owensboro Museum of Fine Art

Most Read Stories from Muhlenberg County

September 20, 2014 3718

Large Cache of Drugs, Cash, Gun Seized;…

in Top Stories by MCSO PIO Alex Piper
September 20, 2014 1791

Paradise NRA Banquet Promises Food, Fun,…

in Top Stories by Paul McRee, SurfKY News
September 22, 2014 1720

Third Suspect Charged in Greenville Home…

in Top Stories by MCITF PIO Wes Miller
September 22, 2014 1106

Muhlenberg Bass Team Members Score…

in Top Stories by Paul McRee, SurfKY News
September 22, 2014 1071

Hundreds Turn Out for Greenville Festival

in Top Stories by Charles W. Riley II, SurfKY News

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 03social 04social 22social 21social 06