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.

Posted on 2/2/14
3/13 - 16
3/13 - 16

Most Read This Week

May 23, 2015 7911

Missing 5-Year-Old Boy Found

by Doreen Dennis, SurfKY News
May 27, 2015 6641

VIDEO: Sparks Fly Over Hanson Rezoning Issue

by Tammy Holloway, SurfKY News
May 28, 2015 4329

Four Charged with Burglary for Entering Elderly…

by SurfKY News
May 25, 2015 3761

Can Sunscreen Save Your Life?

by Melissa Patrick
May 27, 2015 3486

Midnight Ride on Rabbit Ridge Ends in Jail

by SurfKY News

Most Read This Month

May 15, 2015 10975

New Madisonville Business In Full Operation Soon

by Tammy Holloway, SurfKY News
May 23, 2015 7911

Missing 5-Year-Old Boy Found

by Doreen Dennis, SurfKY News

Stories Trending Now

May 28, 2015 4329

Four Charged with Burglary for Entering Elderly…

by SurfKY News
May 28, 2015 1290

Greenville Man Charged with Rockport Robbery,…

by SurfKY News
May 28, 2015 1104

Livingston Street, Hanson Rezoning Request…

by SurfKY News
May 28, 2015 855

Teens Injured When Vehicle Crashes into Tree

by SurfKY News
May 28, 2015 809

Dawson Springs Woman Charged on Drug Offenses, DUI

by SurfKY News
May 28, 2015 669

Southside Elementary Wins $30,000 in National…

by Doreen Dennis, SurfKY News
May 28, 2015 616

Slaughters Student, Madisonville Faculty Member…

by Joyce Riggs
May 28, 2015 540

Hopkins County Health Department Food Scores Thru…

by Barry Franklin
May 28, 2015 392

'The Patrick Rudd Project' Encourages Community…

by Ron Sanders