Mormon Life - Finance tag

Dave Says: How Do You Know It's Your Calling?

Tue, 20 Mar 2012 00:03:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: How do you know you've found your true calling when it comes to a career?

Dear Dave,

How do you know when you’ve found your true calling when it comes to your job or your career?

Matt

Dear Matt,

I’ve met a few people who’ve had a spiritual experience in this area. Something has happened, almost like they were struck by lightning, and they knew what they were supposed to do with their lives. This isn’t the normal way people come to realization about their futures, but it does happen from time to time.

Usually, I believe this kind of revelation starts out as a simple idea that gradually grows into a job and then into a career. Then, it evolves over time into a calling. That’s how I stepped into what I’m doing today. I can’t honestly tell you that when I started on radio, or began writing and teaching, that I knew it was God’s purpose for my life. But I felt the weight and the drawing of it, almost like a magnetic pull.

I’ve been doing it for 20 years, so it definitely evolved over time into what it is today. Still, I’m positive it’s the reason I’m on this planet!

—Dave

For more financial help, visit daveramsey.com.

Dave Says: Question about Home's Value

Tue, 13 Mar 2012 00:03:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: Is it legitimate for a law firm to offer protesting the value of our home in return for 50 percent of any tax savings? Dear Dave,

We keep getting offers in the mail from a law firm that offers to protest the assessed value of our home for property tax purposes. They say that we’ll pay them nothing if they can’t save us money, but if they do the fee is 50 percent of the property tax savings. Do you think it’s ethical to dispute these findings, and are these services legitimate?

Kristen

Dear Kristen,

There’s no real problem with this, so long as there are no up-front fees. The real question, though, is whether your assessment is accurate.

First, there would have be some kind of basis for the protest – like if your assessment is really out of line compared to similar homes in the neighborhood. Usually, they aren’t assessed at 100 percent. But if you discovered that a comparable home was assessed at 73 percent and yours was based on 82 percent, then you’d have both an ethical and legal right to protest the assessment.

I think one of two things will happen. If you talk to this firm, you’re either going to find out that there’s something going on with the tax base that makes them think they can actually reduce the numbers, or they’re going to try and hit you with a “processing fee” or some other kind of garbage.

If this is the case, you should just walk away.

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: Lost Job, Might Move

Tue, 13 Mar 2012 00:03:00 -0600

by Dave Ramsey
source: MormonLife.com

Mormon Life says: I have two job offers with varying pros and cons, including one with a move. What do you think? Dear Dave,

The job I have currently is about to be phased out, and I’m looking at two other offers. The pay for both is the same. One is short-term, nine months to a year, and it has a per diem so I wouldn’t have to move. The other job would last much longer, but I’d have to move and that would throw me about $3,500 further into debt. This company acts like it doesn’t want to help with the moving expenses, but I think I’d like the job better. What do you think I should do?

Michael

Dear Michael,

I’d move. And I’d also try to negotiate the heck out of this company and get them to foot some of the bill for the move.

If you’re valuable enough, and they like you enough to want you on their team, then I’d use that as a negotiating point before accepting the position. Tell them that you really want the job and you’re excited about it, but the only thing holding you back is $3,500 in moving costs.

You never know until you ask. And at that point they may see the wisdom of kicking in some cash to make it easier for you to decide!

—Dave

For more financial advice please visit daveramsey.com.

Dave Says: Saving Is Always Smart

Tue, 10 Jan 2012 00:03:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: I can't convince my wife to save because she believes the Lord will return in our lifetime, so it will all be gone anyway. What can I do?

Dear Dave,

My wife and I have gone from having almost nothing to making about $90,000 in the last few years. The problem is that I can’t get her interested in saving money. What’s worse, her father is the preacher at our church and he has convinced her that he knows the Lord is coming back in our lifetime. Thinking this, she says there’s no reason to save because it will all be gone anyway.

What can I do?

Brian

Dear Brian,

I’m all for people living their lives according to God’s word. But the Bible says that no man knows when the Lord will return. So, I get pretty leery when a guy – especially a preacher – tells me he knows when it’s going to happen.

The Bible also tells us very clearly that it is wise to save, and the Bible does not contradict itself. So basically, if you don’t save you’re being foolish. Still, it probably wouldn’t be a great idea for you to run and tell your wife that financially she’s behaving like a fool.

This is a touchy situation in other areas, too. Right now her dad’s theology is ruling your marriage, and that’s not good. Husbands and wives should grow in their faith together. I think you guys should sit down with a good marriage counselor and, for the good of your family, come to an agreement on a new place of worship.

I mean, even if her dad is right about this – and if he turns out to be right, I’m pretty sure it’s not because he has inside information – there’s some stuff going on here where he’s interwoven his own ideas and spiritual authority in with your household authority.

And that kind of thing could cause more problems down the road!

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: Company Needs to Step Up!

Tue, 10 Jan 2012 00:03:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: My company reimburses for travel, but sometimes they send it late. Does this affect my credit score?

Dear Dave,

My company makes me use my personal credit card for overseas travel. They take care of my expenses, but sometimes they don’t send the money until after the payment is due. Does this affect my credit score?

Marshall

Dear Marshall,

Unless you pay on time instead of waiting for their money, you bet it affects your credit score. It’s your card! You signed for it, and it’s in your name. Every late payment affects your credit bureau score.

I don’t know who you work for, but this is a very dangerous and bad practice – both by you and your company. Your company is using your credit and abusing you in the process. Talk to them about furnishing you with a corporate card. Better yet, a corporate debit card! If your employer is going to send you overseas, or anywhere on the road, it shouldn’t cost you money or cause you problems.

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: Stick with Term

Tue, 10 Jan 2012 00:02:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: Should we get mortgage life insurance on our new house?

Dear Dave,

My husband and I both work, and we just bought a great house for $150,000. He makes $50,000 a year, and I make about $30,000. We’ve been getting lots of different mortgage life insurance offers in the mail. They say they will pay off the house if one of us dies. Do you think we should take advantage of this?

Blasha

Dear Blasha,

No! These kinds of offers are terrible unless you’re uninsurable, because most mortgage life insurance policies are a lot more expensive than term life insurance.

You and your husband both need about eight to ten times your annual incomes wrapped up in good, level term policies. Forget that overpriced stuff. These will take care of you both, and the house, for a lot less if something unthinkable happens.

—Dave

For more financial advice please visit daveramsey.com.

FHE: Self-reliance

Mon, 09 Jan 2012 00:03:00 -0700

by Shauna Gibby
source: MormonLife.com

Mormon Life says: Prophets have commanded us to be self-reliant and prepared for all situations. Use this lesson to discuss these principles and how to attain them. Conference Talk:
For more information on this topic read “Providing in the Lord’s Way” by President Dieter F. Uchtdorf, Ensign, Nov 2011, 53.

Thought:
The Lord’s way of self-reliance involves in a balanced way many facets of life, including education, health, employment, family finances, and spiritual strength. Familiarize yourself with the modern welfare program of the Church.

(President Dieter F. Uchtdorf, “Providing in the Lord’s Way” Ensign, Nov 2011, 53.)

Song:
“The Prophet Said to Plant a Garden,” Children’s Songbook, p. 237.

Scripture:
And again Alma commanded that the people of the church should impart of their substance, every one according to that which he had; if he have more abundantly he should impart more abundantly; and of him that had but little, but little should be required; and to him that had not should be given. (Mosiah 18:27)

Lesson:
Display a 72-hour kit, or other food storage item. Explain that when a natural disaster occurs, people often begin to think about preparations they wish they had made. Have your family suggest things they think are important to have prior to a natural disaster. Invite a family member to read Exodus 11:1–3. Ask:

• What was Israel asked to do?
• Why were they successful in their requests of their Egyptian neighbors?

Ask your family to silently read Exodus 11:5–10, looking for the plague about to come upon the Egyptians. Ask your family why they think Pharaoh would not let the children of Israel go, even after all the previous plagues sent upon Egypt (see footnote 10a).

Read D&C 43:23–27 aloud. Testify that the Lord continues to speak to us by the voice of disasters and plagues, and that it is important for us to heed His warnings. Make a plan to be prepared both physically and spiritually and to follow the warnings of our modern prophet.

(Dennis H. Leavitt and Richard O. Christensen, Scripture Study for Latter-day Saint Families: The Old Testament, [Salt Lake City: Deseret Book, 2009], p. 37.)

Story:
During a particularly difficult financial time, I turned to God for help. I suppose that I am like other people whose prayers are offered with more feeling in times of urgent need. I remember feeling ashamed that I had not previously put more effort into my relationship with God when money had been plentiful. Still, believing that such petitioning could help, I arose one morning and began to plead for help.

The answer came in a strange way. A thought entered my mind: Your friend Paul [name changed] has no food in his house. Go and take him some money.

“But I have so little,” I said aloud. Then, considering to whom I was talking, I asked, “How much?” One hundred dollars.

I felt anxiety shoot through me. One hundred dollars was all I had in the bank! I searched myself, hoping that I had imagined the whole thing. I tried to pray again but felt only silence. Then, through the quiet I perceived a message. It seemed to say, Will you trust me or not?

Paul was a good man who had recently lost his income source and was struggling through very difficult financial times. No effort of his had seemed to be able to stop the rapid decline of his assets and reserves.

I drove to the bank, withdrew one hundred dollars, and headed to Paul’s house. When I pressed the money into his hand, he couldn’t hold back the tears. He said, “My wife and I totally ran out of food last night. We have been up since four o’clock this morning praying for a miracle.”

I never missed the one hundred dollars. One thing after another fell into place that allowed me to sustain my family. But no miracle was as great as the one that occurred inside me when I discovered that God truly loves his children and often uses other people to prove it.

(Larry Barkdull, Gifts: True Stories of God’s Love, [Salt Lake City: Deseret Book, 2004], p. 101.)

Activity:
Build a pyramid with canned goods. Try for highest, largest, or most creative.

Refreshment
Shufly Cake

4 1/4 cups flour
1 cup light brown sugar 1 cup sugar
1 cup butter
2 cups boiling water
1 cup molasses
1/4 cup apricot jam
1 tablespoon cinnamon
2 teaspoons soda
Blend flour, sugars, and butter into crumbs. Set aside 1 cup of crumbs for topping. Mix boiling water, molasses, jam, cinnamon, and soda. Add to remaining crumbs. Grease and flour 13 x 9-inch pan. Pour in batter and sprinkle with reserved crumbs. Bake at 350 degrees for 40-45 minutes. Do not overbake.

(Hollee Eckman and Heather Higgins, All that Jam, [Salt Lake City: Shadow Mountain, 2003], p. 81.)

To get the PDF version of this lesson, click here.

Dave Says: Where Do Toys Fit in the Baby Steps?

Tue, 03 Jan 2012 00:03:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: According to your savings plan, when is it okay to get a toy like a boat or motorcycle?

Dear Dave,

When is it okay to have a little fun and get a boat or a motorcycle when you’re doing the Baby Steps?

Jennifer

Dear Jennifer,

I always recommend that folks complete the first three Baby Steps before running out to buy a bunch of toys. Baby Step 1 is to save up $1,000 in the bank for a starter emergency fund. Baby Step 2 is to pay off all your debts, except the house, using the debt snowball method. Then, on Baby Step 3, we go back and fully fund the emergency fund to contain three to six months of expenses.

After you’ve gotten this far, it’s okay to have a little fun and save up for a toy. But don’t forget about Baby Step 4, which is putting 15 percent of your income into pre-tax retirement plans, like mutual funds and Roth IRAs. Don’t neglect saving for college, either, if you have kids. That’s Baby Step 5.

Baby Steps 6 and 7 are paying off the house early and building wealth and giving. Everyone likes having fun, and there’s nothing wrong with a few toys if you an afford them. Just make sure you don’t sacrifice your financial health for the shiny things!

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: Guilt and Cynicism

Tue, 03 Jan 2012 00:02:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: Why do you think people get so defensive when it comes to talking about budgeting and how they handle their money?

Dear Dave,

I’ve noticed that lots of people get defensive when it comes to talking about money and living on a plan. Why is this?

Tonya

Dear Tonya,

I think it’s because there seem to be two negative emotions connected to people who have failed with money: guilt and cynicism. They feel guilty because they’re terrible when it comes to handling money, and they don’t want to talk about it.

Cynicism may be more prevalent in people who feel like they’ve been messed over by some “money expert” out there. Maybe they got caught up in a deal that went bad, or they lost a lot of money following their advisor’s advice. The results can be they end up believing that anyone connected to the financial arena is a bad, incompetent or manipulative person.

If you’ve made mistakes with money, that just makes you human. Everyone alive has messed up financially, and that includes me. I made mistakes with lots of zeroes on the end, but I managed to turn things around. Now, I’m running my own company based on those mistakes, how to fix them and how to keep people from making the same mistakes I did years ago.

Sometimes people just don’t want to be around others who are trying something new or different and winning in the process. Then, there are people in life—I call them losers—who just don’t want anyone else to win, because it reminds them that they’re not winning. Being stuck around those kinds of people is no fun for anyone!

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: Trust Broken after Co-signing

Tue, 27 Dec 2011 00:04:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: I missed some car payments after my dad co-signed on it, and our relationship has been affected. How do I make things right?

Dear Dave,

My dad cosigned on a car loan for me a few years ago before I began working your plan to get control of my money. I missed some payments back then, and it has affected our relationship. I’ve since paid off the car, but how do I make things right with my dad?

Stephanie

Dear Stephanie,

I know you’re hurting, but a lot of this is up to him. The truth is he’s partially to blame for being dumb enough to cosign in the first place. And if this was just a mistake you made when you were a kid, then he should be mature enough to realize that and recognize the progress you’re making now with your finances.

If you haven’t yet apologized for messing up, I think it’s something you should do very soon. Let him know how much you hate that it harmed your relationship, and tell him you’re following a program that will help you make sure nothing like that ever happens again.

Then, if he can’t accept that and move on, it’s all on him. I know that’s not what you wanted to hear, but sometimes time is the only thing that heals those kinds of wounds.

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: Review the Research

Tue, 27 Dec 2011 00:03:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: What do you mean by, "people spend more with plastic than cash"?

Dear Dave,

I’ve heard you say that people spend more with plastic than with cash. Exactly what does that mean?

Edmund

Dear Edmund,

There have been several studies done in recent years that show people spend less money when buying with cash as opposed to swiping a credit card. One study in particular conducted by MIT and published in Carnegie Mellon magazine, indicated through the use of Magnetic Resonance Imaging (MRI) that the pain centers of the brain are activated when you spend cash. Of course, it depends on the item in question and individual spending patterns as to exactly how much less is spent, but the average is between 12 and 18 percent.

Want some more information? When McDonald’s first began accepting credit cards they conducted a focus group study in their restaurants on credit card users versus cash users. At that time, the difference was about 42 percent, meaning that a person using cash bought 42 percent less in a fast food setting than someone paying for their meal with a credit card. On other, more expensive items, the percentage generally drops. But these studies and others have proven that people spend more when using credit cards instead of cold, hard cash.

See what I mean when I say you can’t beat the credit shark at his own game? Even if you’re one of the few who pays their credit card bills on time every month, you’re still throwing your money away!

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: Where Does Debt Go When Filing Bankruptcy?

Tue, 20 Dec 2011 00:04:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: What happens to all the money owed when someone files bankruptcy?

Dear Dave,

What happens to the money that is owed when someone files bankruptcy? Do creditors just have to write it off, or do other people pay the price through taxes or higher interest rates?

Grace

Dear Grace,

In most cases the creditor just loses the money. That’s one of the risks businesses face. Of course, any bankruptcy is also a seriously bad mark against the filer’s credit record.

Chapter 13 filings may be considered a little less severe than Chapter 7 because you’re showing an interest in retiring the debts. They often allow – if you have a regular income and limited debt – to keep some of the property you might otherwise lose. Also, some debt balances may be partially discharged, with the filer agreeing to make monthly payments to the trustee for distribution among remaining creditors.

A Chapter 7 bankruptcy is lots tougher on the one who files. It involves liquidating all assets that aren’t exempt. Some of the filer’s property may be sold by a court-appointed official – a trustee – or just turned over to creditors.

It’s really a lose-lose situation, Grace. The business loses money, and the filer suffers the emotional pain of participating in a shameful process.

—Dave

For more financial help please visit daveramsey.com.

Dave Says: Where Does the Donation Go?

Tue, 20 Dec 2011 00:03:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: How can we know if a charitable organization is using our money wisely?

Dear Dave,

Our financial situation is pretty good now, and my husband and I feel it is time to start giving something back. There are several organizations we’re interested in helping, but how can we know if they’re legitimate and will use our money wisely?

Laura

Dear Laura,

I really appreciate your giving spirit, but the truth is you can never be 100 percent certain about this kind of thing. About the best you can do is put in some serious time researching and digging beneath the surface of various organizations to find some that are a comfortable fit for you.

My wife and I give the majority of our donations to Christian ministries. It’s not unusual for us to take a tour of the place to see what kind of feel we get while we’re there. If they’re secretive or not forthcoming with what we consider to be basic information about how they operate, or if we see signs of opulence or super-luxury, you can bet we’ll be asking lots of questions.

Talk to the leaders and administrators about what they plan to do with the money from your donation. You have a right to know this. I mean, if they’re going to give the money to hurricane victims, you want the victims to get the money, right?

People who work for a charitable organization need to make a decent living just like everyone else. But if they’re ultra-rich, it could be a sign that they’re not being responsible with their donations. Take a look at their administrative costs - what percentage of donations goes directly to the cause - and anything else you feel would help you make the right decision.

Giving is like anything else. It takes time and work to do it responsibly and with excellence!

—Dave

For more financial help, please visit davesays.com.

Dave Says: Co-signing Leads to Stupid Tax

Tue, 13 Dec 2011 00:03:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: A collection agency is after my wife for a loan she co-signed years ago. Do we have a better option than bankruptcy?

Dear Dave,

My wife co-signed on a loan for an ex-boyfriend five years ago when they were together, before we even met. Now a collection agency is after her. Our attorney has recommended we take Chapter 7 bankruptcy, but the debt is only $5,000. Is there a better way?

Jeff

Dear Jeff,

You bet there’s a better way! It’s just plain stupid to even consider trashing your financial life over $5,000, because bankruptcy stays on your record for years.

This is an old loan with very low expectations for collection. The collector probably bought it for next to nothing, and everything he gets will be profit. It’s not uncommon for debts this old to be settled for fifty cents on the dollar, and sometimes even less. Haggle with them, and I’ll bet you can talk them down to $2,500.

Get an agreement in writing before you send them a dime, and do not give them access to your bank account. They’ll threaten to sue, or ruin your credit and that kind of stuff, but my guess is you can work this out. It may take a couple of weeks and some patience, but that’s nothing if it will save you $2,000 to $3,000.

You guys will have to pay some Stupid Tax on this one, but I hope it will teach you both a very valuable lesson. Never co-sign a loan!

—Dave

For more financial help please visit daveramsey.com.

Dave Says: Business and Friendship

Tue, 13 Dec 2011 00:02:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: My friend wants to rent part of my duplex, but I'm worried this could jeopardize the relationship.

Dear Dave,

I’m about to buy my first home. My plan is to buy a duplex and rent out the other side to help pay down the mortgage quickly. A friend of mine wants to be my renter, but I’m worried that this could jeopardize our friendship. What do you think?

Jerry

Dear Jerry,

This can work, but the odds aren’t in your favor. When you do business with friends you always face the risk of running into a situation that can damage the relationship.

Does this mean you can never do business with friends? Of course not. I do a lot of business with friends. But I make sure that the specific requirements of our relationship are laid out very clearly, in writing.

It would be a good idea to make sure he understands that he absolutely must come talk to you ahead of time if there’s even a chance that he might not make the rent one month. Most problems can be worked out, but you’re not running a charity. This needs to be emphasized in a kind-but-firm manner.

Sometimes friends have unrealistic expectations on both sides. The friend who is renting may think he’ll get some slack on the payments, or the friend who’s the landlord may assume the renter will be a model tenant. These dangerous myths need to be addressed and ironed out before anything is signed.

You can make it work, Jerry. Just be straightforward, and make sure the rules are understood by everyone involved. Then, when you have to enforce the rules, do it gently but firmly.

—Dave

For more financial help, please visit davesays.com.

Dave Says: Intensity Hurting the Marriage?

Tue, 06 Dec 2011 00:03:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: I think all our effort to get out of debt is hurting our marriage.

Dear Dave,

When does reaching the point of being debt-free become more important than marriage? We’re following your plan and doing the debt snowball, but my husband’s been working a second job, and it’s really cutting into our together-time at night and straining our relationship. I’m afraid we’re going to end up debt-free, but divorced. When does one outweigh the other?

Tracy

Dear Tracy,

Getting out of debt is never more important than your marriage. But families go through all kinds of stuff, and one of those things is cleaning up messes they’ve made. It’s not always fun, but there’s a price to pay if you want to win with your money or anything else.

It sounds to me like your husband has gone gazelle intense about getting out of debt, and in the process may have left you behind a little bit. I don’t recommend that! He probably needs to take some time to come back and emotionally re-connect with you. And I’m sure some good, old-fashioned back rubs and words of encouragement from you are in order. Your man could use them if he’s been working two jobs!

But there’s plenty of time for snuggling and stuff later. Right now, you’re trying to do something—something really important—for the good of your family. I know it can be difficult, but it won’t last forever. And I can promise you this: Once you’re done, you’ll be very glad you toughed it out!

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: Ready to Buy?

Tue, 06 Dec 2011 00:03:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: With a good job, great savings, and no debt, am I ready to buy a house?

Dear Dave,

I graduated from college in May, and I already have a job in my field. It was a part-time position that went full time, so I already have $15,000 in an IRA and about $23,000 in savings. I’m also debt-free, because scholarships paid for my education. Am I ready to buy a house?

Zack

Dear Zack,

This is an awesome position you’re in right now! Financially, you’re okay to buy a house. I do have one slight hesitation, though. There are going to be lots and lots of things happening in your world during the next few years, and there’s a possibility you’ll end up moving—maybe for a girl, or even another job—during this time period. It’s going to be a time of transition, and having a piece of real estate tied around your neck could be a huge pain. But if you’re sure that’s where you want to be for a while, then it’s not such a big deal.

Keep in mind that there’s a word for real estate that sells quickly, and that word is cheap! Lots of times, the only way to get out from under something like that fast is to practically give it away. It’s a great time now to buy a home, though. It’s like they’re on sale. Interest rates are really low, too.

Don’t use the entire $23,000 as a down payment on a place, and keep an emergency fund of three to six months of expenses set aside. Make sure you get a 15-year, fixed-rate mortgage, too. If you play this right, Zack, you’re going to be sitting pretty!

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: No Help for the Unreasonable

Tue, 29 Nov 2011 00:04:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: We want to help our daughter with college expenses, but she's chosen a very expensive school. What do we do?

Dear Dave,

My stepdaughter is 17 and will be starting college this fall. Her dad and I want to help her with expenses, but she’s chosen a private university (with the help of her other parents) that costs $250,000 for an undergraduate degree. We don’t want her going into student loan debt, but we can’t afford that kind of money, and she’s really pressing the issue. What do you suggest?

Christina

Dear Christina,

The biggest problem I see is that you’ve got a 17-year-old girl wagging the dog. I can tell you right now this wouldn’t happen at my house. When it comes to the parent-child relationship at that age, the adults tell the children what to do. It doesn’t happen the other way around.

If this child is going to take your money, then she needs to take your advice too. If she’s not willing to be reasonable and take your advice, then she gets none of the money. There’s no undergraduate degree on the planet worth $250,000. The whole idea is absurd, and somebody needs to say that out loud.

This girl can work, and she can go to a state school and get a great education for about a fourth of that price. Since you’re in Texas, there’s absolutely nothing wrong with the University of Texas or Texas A&M. They’re great schools. And at that price range, I’m sure it would allow you guys to pitch in and help out some.

But seriously, a quarter of a million dollars for an undergrad degree? I don’t think so!

—Dave

For more financial help, please visit daveramsey.com.

Dave Says: Mobile Homes Are Bad Investments

Tue, 29 Nov 2011 00:03:00 -0700

by Dave Ramsey
source: MormonLife.com

Mormon Life says: Living in a mobile home has saved significant money for us. Why do you tell people not to buy mobile homes?

Dear Dave,

I’ve heard you tell people not to buy mobile homes. We bought one when we moved out of our apartment, and it’s been much cheaper for us. Why do you feel this way?

Debbie

Dear Debbie,

It’s simple. Mobile homes go down in value. When you buy a house, it goes up in value in the long run. From a financial standpoint, mathematically, when you buy a mobile home, you’re buying a very large car in which to live.

Now, I’m not necessarily against manufactured homes. But the phrase “manufactured home” can mean different things to different people. My test goes something like this: If it’s a type of housing that doesn’t look like it had the wheels yanked off, then it will probably go up in value over the years.

There’s nothing wrong with renting an apartment for a while. When you pay out rent, that’s all you’re losing in the deal. But when you buy a mobile home, you’re losing out with the payments and you’re losing money every day as the thing goes down in value.

That’s why I tell people not to buy mobile homes!

—Dave

For more financial help, please visit daveramsey.com.

Mormon Life - Finance tag

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