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.

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

April 13, 2015 6196

Three Juveniles, Adult Accused of Vandalizing…

by Deputy Will Coursey
April 17, 2015 5481

An Open Letter from an Addict

by Olivia Kirks
April 14, 2015 5006

Several Juveniles Charged in Connection with Fight

by SurfKY News
April 18, 2015 3979

Man Charged with Attempting to Coerce Minor for…

by Madisonville Police Department
April 16, 2015 3384

Crime Stoppers Fugitive of the Week – April 16,…

by Hopkinsville – Christian County Crime Stoppers

Most Read This Month

April 02, 2015 8463

UPDATE: Madisonville Man Injured in Head-on…

by Doreen Dennis, SurfKY News
March 27, 2015 6686

Three Arrested during Execution of Search…

by Madisonville Police Department/Hopkins County Detention Center

Stories Trending Now

April 17, 2015 5481

An Open Letter from an Addict

by Olivia Kirks
April 18, 2015 3979

Man Charged with Attempting to Coerce Minor for…

by Madisonville Police Department
April 18, 2015 953

MPD Offers Advice On Prom, Underage Drinking

by Lt. Billy Poe
April 18, 2015 673

Market Commentary - April 18, 2015

by Randall L. Franklin
April 18, 2015 372

Happenings and Meetings - Hopkins County

by Amber Averitt, SurfKY News
April 18, 2015 369

Home, Garden Show Concludes Today at Ballard…

by Tammy Holloway, SurfKY News
April 18, 2015 357

WKCTC Offers Minecraft Class to Teach Students…

by Tammy Thompson
April 18, 2015 355

Keeping the Faith - 'God Smiles'

by Ronnie McBrayer
April 18, 2015 350

TVA's Regional Energy Resource Council to Meet in…

by Tennessee Valley Authority
April 18, 2015 343

Hooked on Science - Skewer a Balloon

by Jason Lindsey