Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

Dave Says – October 7, 2012

KENTUCKY (10/7/12) - This week Dave will be discussing preparing for life beyond college and first the baby or the debt?

Dear Dave,
I’m in college with a full scholarship. I work part time and should be able to graduate with no debt. What can I do now to best utilize the money I make? - Tyler

Dear Tyler,
You’re in a fantastic position right now. First, I think your main goal is to study hard and be 100 percent certain you’re graduating on time with no money issues. The next thing is to make sure you have plenty of cash on hand to make the transition to the real world. In a case like this, transition can mean anything from moving to a new city to simply finding a different place to live. You’re coming to a time in your life where you really can’t have too much cash saved.

If it were me, I’d just save every penny I could and drop it in a savings account. You can worry about investing and growing your money later, after you’ve settled into your new life and have some stability. Just think how cool it would be to graduate with $20,000 in the bank. Then, when you change gears and move out into the real world, you can do some really cool things with the money that’s left. Set three to six months of expenses aside as your emergency fund, then you can even begin to think about buying a home and investing in Roth IRAs and other pre-tax retirement plans.

But your biggest investment right now is making sure you finish school and have the cash on-hand to transition smoothly afterward. And you’re in a great position to make that happen! - Dave
 
Dear Dave,
My wife and I are following your plan. We want to start a family, but we’re still in debt and still owe about $8,000 on our car. Should we pay that off and fully fund our emergency fund before we think about having children? - Robert

Dear Robert,
When two people who are married and love each other very much decide it’s time to share that love with a family, then it’s time. You’ve done a great job of managing your money, setting goals and formulating a game plan, so there’s no reason to wait.

If it were me, I’d begin aggressively paying down the car now. Then, when the doctor confirms she’s pregnant, you can temporarily push the pause button on your Total Money Makeover. If you haven’t managed to pay off the car at that point, use the money you were putting toward it to build up a big cash pile of savings, and go back to regular payments on the car after the baby comes.

By doing this you really lose no ground on your get-out-of-debt plan. You’re just redirecting your resources in case you need additional money down the road. But who knows? It may take you guys a while to get pregnant. And if that happens, you could have the car paid off and plenty of opportunity to save up more before the little one arrives! - 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 5 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
Genovese - http://www.mchky.org/staff/bio.php?doc_id=35646&sub= Lewis - http://www.mchky.org/getpage.php?name=bracken_lewis Holt - http://www.mchky.org/getpage.php?name=drholt Napier - http://www.mchky.org/getpage.php?name=dr.napier_page Newman - http://www.mchky.org/staff/bio.php?doc_id=50353
Genovese - http://www.mchky.org/staff/bio.php?doc_id=35646&sub= Lewis - http://www.mchky.org/getpage.php?name=bracken_lewis Holt - http://www.mchky.org/getpage.php?name=drholt Napier - http://www.mchky.org/getpage.php?name=dr.napier_page Newman - http://www.mchky.org/staff/bio.php?doc_id=50353
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
Genovese - http://www.mchky.org/staff/bio.php?doc_id=35646&sub= Lewis - http://www.mchky.org/getpage.php?name=bracken_lewis Holt - http://www.mchky.org/getpage.php?name=drholt Napier - http://www.mchky.org/getpage.php?name=dr.napier_page Newman - http://www.mchky.org/staff/bio.php?doc_id=50353
Genovese - http://www.mchky.org/staff/bio.php?doc_id=35646&sub= Lewis - http://www.mchky.org/getpage.php?name=bracken_lewis Holt - http://www.mchky.org/getpage.php?name=drholt Napier - http://www.mchky.org/getpage.php?name=dr.napier_page Newman - http://www.mchky.org/staff/bio.php?doc_id=50353
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
Genovese - http://www.mchky.org/staff/bio.php?doc_id=35646&sub= Lewis - http://www.mchky.org/getpage.php?name=bracken_lewis Holt - http://www.mchky.org/getpage.php?name=drholt Napier - http://www.mchky.org/getpage.php?name=dr.napier_page Newman - http://www.mchky.org/staff/bio.php?doc_id=50353
Genovese - http://www.mchky.org/staff/bio.php?doc_id=35646&sub= Lewis - http://www.mchky.org/getpage.php?name=bracken_lewis Holt - http://www.mchky.org/getpage.php?name=drholt Napier - http://www.mchky.org/getpage.php?name=dr.napier_page Newman - http://www.mchky.org/staff/bio.php?doc_id=50353
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
Genovese - http://www.mchky.org/staff/bio.php?doc_id=35646&sub= Lewis - http://www.mchky.org/getpage.php?name=bracken_lewis Holt - http://www.mchky.org/getpage.php?name=drholt Napier - http://www.mchky.org/getpage.php?name=dr.napier_page Newman - http://www.mchky.org/staff/bio.php?doc_id=50353
Genovese - http://www.mchky.org/staff/bio.php?doc_id=35646&sub= Lewis - http://www.mchky.org/getpage.php?name=bracken_lewis Holt - http://www.mchky.org/getpage.php?name=drholt Napier - http://www.mchky.org/getpage.php?name=dr.napier_page Newman - http://www.mchky.org/staff/bio.php?doc_id=50353
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013

Most Read This Week (Site-Wide)

September 19, 2014 4248

Madisonville Man Among Three Arrested for…

in Top Stories by Muhlenberg Sheriff Curtis McGehee
September 17, 2014 3698

Two Arrested for Meth After Traffic Stop

in Top Stories by Alex Piper
September 17, 2014 3330

Wanted Man Leads Troopers on Chase…

in Top Stories by Trooper Stu Recke
September 20, 2014 2910

Large Cache of Drugs, Cash, Gun Seized;…

in Top Stories by MCSO PIO Alex Piper
September 18, 2014 2774

Hopkins County Grand Jury Indictments

in News by Karen McKnight

Most Read Stories from Hopkins County

September 17, 2014 3330

Wanted Man Leads Troopers on Chase…

in Top Stories by Trooper Stu Recke
September 19, 2014 2654

Five Injured in Two-Vehicle Collision at…

in Top Stories by MPD Officer Russell Nichols
September 17, 2014 2048

Three Injured in Two-Vehicle Accident

in Top Stories by Kyle Pharris
September 18, 2014 1835

Manitou Man Charged with DUI

in Top Stories by Madisonville Police Department
September 18, 2014 1747

Vehicle Strikes CSX Train Cars at Crossing

in Top Stories by Trooper Stu Recke

Most Read Stories from Owensboro

September 20, 2014 885

Man Charged with Theft After KSP…

in Top Stories by Alexis McGee
September 19, 2014 813

STREET CLOSINGS FOR MONDAY, SEPTEMBER 22

in Top Stories by Abby Shelton
September 19, 2014 769

Police Searching for Hit-And-Run Driver

in Top Stories by Jennifer Smith, DCSO
September 18, 2014 632

Owensboro's Nathan Morris Has Worldwide…

in Top Stories by Paul McRee, SurfKY News
September 18, 2014 464

9-1-1 Phone Lines

in Top Stories by Michael Hathaway

Most Read Stories from Muhlenberg County

September 17, 2014 3698

Two Arrested for Meth After Traffic Stop

in Top Stories by Alex Piper
September 20, 2014 2910

Large Cache of Drugs, Cash, Gun Seized;…

in Top Stories by MCSO PIO Alex Piper
September 17, 2014 1760

Muhlenberg Job Corps Support is 'Written…

in Top Stories by Karen Robinson
September 20, 2014 1282

Paradise NRA Banquet Promises Food, Fun,…

in Top Stories by Paul McRee, 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