DUE TO HEAVY SNOWS IN WESTERN KENTUCKY...WIDESPREAD 6 TO 12 INCH SNOWFALL AMOUNTS HAVE HAULTED AREA TRAVEL. ISOLATED 15 INCH AMOUNTS HAVE BEEN REPORTED. DRIFTS UP TO A FOOT AND A HALF HAVE ALSO BEEN REPORTED. THIS IS A DANGEROUS STORM SITUATION AND TRAVEL SHOULD BE AVOIDED IF AT ALL POSSIBLE. (National Weather Service)
Davis Motor Sales banner ad

dave ramsey turq 300KENTUCKY (9/8/13) – This week Dave discusses 'Serious talk time' and 'Big car debt, small income'
 
Dear Dave,
My wife and I make together about $100,000 a year, almost $50,000 in an IRA and no debt except for our home. The problem is I’ve had several health issues lately, and we’ve diverted a lot of money we’d put into saving and investing toward medical bills. We also have two kids in high school who want to go to college. Do you think we should cash out the IRA to help send our boys to school? - Jeff

Dear Jeff,
You guys make $100,000, and expenses at a good in-state school would be roughly $17,000 a year. If I were you, I’d trim the household budget and make the kids get to work. Look around and see what you can sell, too. There’s no reason you all can’t pull together and cash flow an education for these guys.

Providing an education for your kids is a noble pursuit, but you’re low on money right now because of health problems and medical bills. You didn’t do anything wrong to create this scenario. It was just a case of life happening. So, you shouldn’t feel ashamed to sit down with your kids and say, “Okay, serious talk time. You guys know what’s happened recently, so if you want to go to college, you need find a good, affordable institution and start applying for every available scholarship. You also need to plan on working after school and on weekends—now and when you’re off at college—and saving money like crazy. Your mom and I will help out some, but we all have to pull together to make this happen.”

There’s a better way to do this than borrowing money and going into debt. There will be times when it’s not easy, but walking around with student loans hanging over your head—or nothing set aside for retirement—is no fun, either! - Dave
 
Dear Dave,
My mom has about $35,000 worth of debt from a $17,000 car and $18,000 in student loans. She makes $20,000 a year. How can she get out of this mess? - Christina

Dear Christina,
No one needs a car that’s worth nearly all of their yearly income. That’s just ridiculous. If you listen to me on the radio, I’m sure you’ve already heard me say what I’m about to say now—sell the car! That will get rid of almost half her debt, then find her a little $2,000 beater to drive until she can save up for a better car.

Remember this simple rule: Never buy a car that costs more than half of your annual income. Also, never go into debt to buy a car. Automobiles go down in value like a rock, and you never want that much money wrapped up in something that’s depreciating.

We also have an income issue here. Your mom has to do something in the short term to get her income up and pay off debt. A part-time job nights and weekends would be a really good idea. Then, she needs to address her long-term situation with an eye toward a decent job. Whether it’s more formal education or technical training in a particular field, she needs to find a career that will significantly increase her income. - 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.

© 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.

springhour

Most Read This Week

March 02, 2015 9414

Madisonville Teen Faces Numerous Drug Charges

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 25, 2015 8774

Multi-Agency Investigation Nets Large-Scale Meth…

in Top News For All Sites by Trooper Stu Recke
February 25, 2015 6436

New Asian Restaurant Coming to Madisonville

in Local (Hopkins) Top News by Gary Gates, SurfKY News
March 03, 2015 5687

Three Arrested during Traffic Stop

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 25, 2015 4430

Local Man Makes Unique Display from Area’s…

in Local (Hopkins) Top News by Tammy Holloway, SurfKY News
March 05, 2015 3867

State of Emergency Declared for Hopkins County

in Local (Hopkins) Top News by Leslie Curneal

Most Read This Month

February 12, 2015

UPDATE: Name of Pennyrile Fatality Officially…

in Top News For All Sites Touching Hopkins by Doreen Dennis, SurfKY News
February 16, 2015

UPDATE: State of Emergency Declared for Kentucky

in Local (Hopkins) Top News by Rita Dukes Smith, SurfKY News Director

Stories Trending Today

March 05, 2015 3867

State of Emergency Declared for Hopkins County

in Local (Hopkins) Top News by Leslie Curneal
March 03, 2015 2687

Superintendent: Spring Break Won't be Touched…

in Hopkins News by Tammy Holloway, SurfKY News
March 05, 2015 2673

UPDATE: I-24 Open Between 50-45 MM

in Top News For All Sites Touching Hopkins by Keith Todd
March 04, 2015 1742

Highway Crews Dealing with Landsides in…

in Local (Muhlenberg) Top News by Keith Todd
March 04, 2015 1538

KSP Warns of Old Scam Resurfacing in the Post 2…

in Top News For All Sites Touching Hopkins by Trooper S. C. Recke
March 05, 2015 1443

Deep Snowfall Stalls Western Kentucky

in Top News For All Sites by SurfKY News
March 04, 2015 1288

Adamson Chosen as Madisonville MSU Campus’…

in Top News For All Sites Touching Hopkins by Tammy Holloway, SurfKY News
March 04, 2015 1242

Madisonville Police Arrest Reports - March 4, 2015

in Hopkins News by Madisonville Police Department
March 04, 2015 1211

Muhlenberg County Educator Inducted into Kentucky…

in Local (Muhlenberg) Top News by WKU News
March 04, 2015 1010

Mental Health Services Expanded at Western…

in Top News For All Sites Touching Hopkins by Steve Beshear