Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Fayette | Henderson | Lakes | McCracken | Warren | 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.

3/12 - 718 switched from reg 2 to hopkins only
3/13 - 16

Stock Report

1 DOW 16,977.36
+57.77 (0.34%)    
2 S&P 1,987.98
+6.38 (0.32%)    
3 NASDAQ 4,531.48
+3.96 (0.09%)    
3/12 - 718 switched from reg 2 to hopkins only
3/13 - 16
3/12 - 718 switched from reg 2 to hopkins only
3/13 - 16

In Other News...

Drakesboro Woman Injured When Tree Falls in Front of Her Moving Car

BEECHMONT, Ky. (8/19/14) — A Drakesboro woman was injured Monday, Aug. 18, when a tree fell in front of her vehicle as… Read More

Providence Police Reports Released

PROVIDENCE, Ky. (8/19/14) — The Providence Police Department released the following arrest reports Monday, Aug. 18.… Read More
3/12 - 718 switched from reg 2 to hopkins only
3/13 - 16

Most Read This Week (Site-Wide)

August 17, 2014 3274

Greenville Police Conducting Traffic…

in Top Stories by Wes Miller
August 16, 2014 3236

Pogue's Automotive Annual Picnic Brings…

in Top Stories by Charles W. Riley II, SurfKY News
August 18, 2014 2867

Man Injured in Early Morning WKP Accident

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 18, 2014 2535

Owensboro Board of Commissioners…

in News by Beth Cecil
August 18, 2014 2424

Madisonville Man Charged for Shoplifting,…

in Top Stories by Madisonville Police Department

Most Read Stories from Hopkins County

August 18, 2014 2424

Madisonville Man Charged for Shoplifting,…

in Top Stories by Madisonville Police Department
August 16, 2014 1394

Non-Partisan Offices Deadline Passes -…

in Top Stories by Keenan Ratliff
August 16, 2014 1218

Madisonville Police Conducting Sobriety…

in Top Stories by Lt. Charles Young II
August 18, 2014 1195

Madisonville Firefighters Recognized for…

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 19, 2014 833

Firefighters Battle Blaze Near…

in Top Stories by Rita Dukes Smith, SurfKY News Director

Most Read Stories from Owensboro

August 18, 2014 2535

Owensboro Board of Commissioners…

in News by Beth Cecil
August 18, 2014 2415

Unlawful Solicitation

in News by Sgt. J.D. Winkler
August 18, 2014 2350

RiverArtes Opening at OMFA

in News by Owensboro Museum of Fine Art
August 19, 2014 1689

Free Arthritis Exercise Program will be…

in News by Woody Maglinger
August 19, 2014 1351

Municipal Art Collection on Exhibit at…

in News by Mary Bryan Hood

Most Read Stories from Muhlenberg County

August 17, 2014 3274

Greenville Police Conducting Traffic…

in Top Stories by Wes Miller
August 16, 2014 3236

Pogue's Automotive Annual Picnic Brings…

in Top Stories by Charles W. Riley II, SurfKY News
August 18, 2014 2867

Man Injured in Early Morning WKP Accident

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 18, 2014 2006

Luke's Flea Market Vendors' Home Away…

in Top Stories by Charles W. Riley II, SurfKY News
August 18, 2014 1970

'How Dry I Was'

in Top Stories by Rita Dukes Smith, SurfKY News Director

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)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (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