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.

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.

Most Read This Week

November 20, 2015 9563

Dispatchers Overhear Drug Activity during…

by SurfKY News
November 24, 2015 9118

Distillery to Operate in Old Graham School…

by SurfKY News
November 21, 2015 8536

Injuries Result from Beulah Road Accident

by Doreen Dennis, SurfKY News
November 23, 2015 7231

Relative Charged with Murder, Arson in Deaths of…

by SurfKY News
November 20, 2015 4059

Dawson Springs Woman Dies in House Fire

by SurfKY News

Most Read This Month

November 17, 2015 14751

Ohio County Most Wanted - Top 10 - November 17

by SurfKY News
November 18, 2015 14203

Runaway Teen Returns on His Own

by SurfKY News

Stories Trending Now

November 24, 2015 9118

Distillery to Operate in Old Graham School…

by SurfKY News
November 24, 2015 4021

Ohio County Most Wanted - Top 10 - November 24

by SurfKY News
November 24, 2015 2918

Man Injured When Vehicle Collides with Deer

by SurfKY News
November 24, 2015 1816

New Information on String of Break-ins, Thefts

by SurfKY News
November 24, 2015 1382

Wet/Dry Petition for Beaver Dam Submitted

by Lee Bratcher, SurfKY News
November 24, 2015 1365

Madisonville Police Reports Released

by SurfKY News
November 25, 2015 1208

Hopkins County Crime Stoppers Top Most Wanted -…

by SurfKY News
November 23, 2015 1035

Providence Police Reports Released

by SurfKY News
November 24, 2015 1032

Beshear Signs Executive Order Restoring Some…

by SurfKY News
November 25, 2015 823

Students Serve to Learn Life Lesson

by Tammy Holloway, SurfKY News