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Dear Dave, I’m an accountant, and my company is experiencing layoffs. I just learned that I’ll be losing my job in four weeks. I’ll receive a severance check, but I have no other savings set aside. Should I use some of the severance to pay off debt, or hold on to that money as long as I can? Frank Dear Frank, I’d hang on to that money and pile up as much other cash as I possibly could. Right now, the most important worries are food, lights, water and shelter. Debt is not on the list. We need to take...

Dear Dave, One of my relatives just discovered she has cancer. She’s a single mom with two young kids, and I’m not sure if she’s prepared to face something like this. What are the best steps she can take financially at this point?ShannonDear Shannon,I’m really sorry to hear about this. I know cancer is a scary thing to hear, but please remember to pray and be there for her all you can. God willing, things can still turn out okay.When people ask if a person has their affairs in order, they’re usually asking a couple of different questions. Are you...

Dear Dave, I made the mistake of leasing a car a while back, and the lease is up in about nine months. Should I save up the money between now and then to buy it, or save as much as I can to pay down my student loans? Aaron Dear Aaron, At the end of a lease the price for which you can purchase the car is called the residual value. This amount is preset when you lease the vehicle. So the big question right now is, what’s the car actually worth? If the company thought it would be worth...

Dear Dave, My old car has been having lots of problems lately. Do you have any advice on how to decide when it’s best to just fix an old car or get a newer one instead?KristinDear Kristin,This is a good question! Mathematically, the first thing to look at is the car’s worth if you don’t make repairs. Should you spend $1,000 to increase the value of the vehicle $500? Dumb question, right? At that point, you sell the car as-is and put the $1,000 it would take to fix it toward something newer.On the other hand, let’s say you’ve got...

Dear Dave, I’ve been working the Baby Steps and doing a budget most months. But how does someone who is single stay motivated and focused with something like this? It feels sometimes like it would be easier if I had someone holding me accountable. Rick Dear Rick, The first thing is to make sure you do a written budget each month. Not once in a while, not most months—every single month. If you don’t draw the out-of-bounds markers, there’s no way to know when you’ve stepped over the line, right? A monthly, written budget becomes your self-accountability tool, especially when...

Dear Dave, Is it worth the time and effort to use coupons, or are they just a waste of time and a ploy to get you to buy things? Tammy Dear Tammy, Coupons are definitely a ploy to entice you to buy something you may not have purchased otherwise. But that doesn’t mean they’re bad things. The practical and sensible application of coupons can definitely help you save money. The main things to watch out for when using coupons are overbuying and spending your money on things you don’t really need. Seriously, you don’t need to hit Sam’s or Costco...

<p>Anyone that has been in Cool Springs TN lately, has most likely seen Dave Ramsey’s new house. The ‘pay with cash’ financial guru, radio host, bestselling author and founder of Financial Peace University has constructed a palatial home next door to Lee Ann Rimes house on King Richard’s Court in the Cool Springs Franklin area.</p>

Dear Dave, My 27-year-old brother-in-law moved in with us some time ago. He doesn’t have a job or contribute anything in terms of helping around the house or with bills. I think he needs to move out, but my wife isn’t so sure. She complains about the situation to me, but if I say anything, it makes me the bad guy with her family. How can I convince her? Chuck Dear Chuck, I think you need to sit down with your wife, not all the other players, and gently explain to her that you’re just enabling his bad behavior by...

Dear Dave, I own a small business, and I pay my people on straight commission. We’ve started growing a bit, and I’m having trouble finding good, new reps who want to work under this kind of compensation structure. Does your team work on commission, and if so, how do you do it? Gary Dear Gary, I love commission plans that rely heavily on incentives. I just plain love the idea of commissions. I mean, I’d put my receptionist on straight commission if I could figure out how to make it work. But honestly, there’s hardly anyone on my team that...

Dear Dave, My wife and I are on Baby Step 2 of your plan, and we’re paying off our debt. I’ve been trying to sell my motorcycle and listed it for $5,000 on Craigslist. The other day, a guy offered me $2,000 cash and a boat for the bike. I’ve always really wanted a boat, but I’m not sure this is the time. And the money would only make a small dent in our debt. Would this kind of deal be legal in the Dave Ramsey universe?MattDear Matt,It’s an interesting deal, but at this stage of the game I think...

Dear Dave, My son is 22 and about to enter the Navy as an officer. He’s been offered a Career Starter Loan. His plan is to invest the money and let it grow while he’s in the service. I’m not sure this is a good idea. What do you think about it?MaryDear Mary,The Career Starter Loan is just another form of debt, so it’s something I can’t recommend. Basically, it’s the military trying to do a nice thing for its men and women. The problem is that it’s still a loan that has to be repaid. It’s not a signing...

Dear Dave, My niece just graduated from college with $20,000 in student loan debt. Her boyfriend graduated as well, and they’re talking about getting married. He has $115,000 in loan debt and wants to go to graduate school. They both want to be teachers, and she’s currently job hunting. The idea of all this debt hanging over their heads bothers her. Do you have any advice on how she can come to peace with the situation?DeniseDear Denise,This is a really interesting question. In a way, I’m glad she’s conflicted about the situation. At the same time, I wouldn’t want it...

Dear Dave, I’m about to graduate from college, and I’m following your plan and trying to focus on my future financial situation. Is the current down economy a cyclical thing and just part of life?DJDear DJ,It is. There are always cycles in the economy. I know you hear all this talk about this is the worst recession since the Great Depression, but that’s a bunch of bull. It was worse in 1982, when the Jimmy Carter era came to a close. We had double-digit inflation, double-digit unemployment and home interest rates were at 17 percent.The current situation has been kind...

Dear Dave, My son is a freshman in college. Do you think he should work during his first year in school or focus all his attention on his classes?BenDear Ben,I don’t think there’s anything wrong with either direction during their first year of college. But as a parent, I’d urge you not to fall into the trap of thinking that a kid’s grades will go down if they work while in school. Research shows that kids who work while in college carry higher grade point averages than those who don’t.To me, the reason for this is pretty simple. If you’re...

Dear Dave, I bought a car a few years ago and purchased new wheels for $1,100 on credit. I haven’t paid the bill, and now collectors are trying to settle with me. I think the statute of limitations has expired. Should I still pay the debt?BrianDear Brian,I always look at things like this through two or three lenses. One has to do with your credit. Another is the legal aspect, and the third is this: What’s the right thing to do?The right thing to do is pay the debt. You took the wheels, so you need to pay for them....

Dear Dave, We’re on Baby Step 1 of your plan, and we have $1,000 saved. We have a baby, my husband brings home about $2,000 a month, and we have $50,000 in debt, the majority of which is student loans. My mother-in-law has offered to let us move in with her for a while in order to pay off our debts more quickly and save up to buy a house. Does this sound like a good idea?AnnDear Ann,If your husband can get his income up, I’d prefer that you guys maintain your own residence. Moving in with a parent would...

Dear Dave, I own a small business, and I try to treat my staff very well. How can I keep them from taking things for granted or not appreciating them at all?JodyDear Jody,I’m like anyone else. If I spend a lot of money, or do something big, and it doesn’t have an impact or people aren’t grateful, it hurts my feelings. In those kinds of situations, as a business owner or just a regular guy, I’d rather keep my money and not get my feelings hurt. I don’t whine if things like that don’t work out as expected. But I...

Dear Dave, I’m a single dad with two teenagers at home. My 15-year-old son wants to open a checking account of his own, but he doesn’t want me or anyone else to have access to it. Should I just let him do this and suffer the consequences I know are coming?TimDear Tim,When it comes to 15-year-olds, as a parent you have every right to say, “My food, and my roof. You do what I say.” With kids this age you never know what you’re getting. Half the time you’re talking to a 35-year-old, and the other half they’re 5 again.At...

Dear Dave, I have a problem with impulse spending. I switched to a debit card so that the money comes straight out of my checking account, but I still buy things I know I shouldn’t. Should I stop using the card?LaurenDear Lauren,First, let me say that debit cards are great. You can’t spend money you don’t have with them like you can with a credit card, but you’ve still got to budget carefully and give a name to every single penny of your income. Otherwise, you can still overspend.When I made the decision to get intentional with my money, I...

Dear Dave, Do you feel that some people are born leaders, or do you have to read and study to become one?MichaelDear Michael,I don’t believe anyone is born a leader. I’ve watched all three of my kids being born, and not once did the doctor say, “Congratulations, Dave! You have a little eight-pound, six-ounce leader!” No, I believe people make choices.I’ve been studying leadership ever since I opened my company about 20 years ago. I was really awful when I first started. I made so many bad, dumb mistakes! But I’m a world-class leader now. I’ve learned how to do...