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Feb

Nix the lawn service? Dave Ramsey

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Nix the lawn service?

Dear Dave,
We currently pay to have our lawn mowed each week. This expense is figured into our monthly budget, but we’re not quite out of debt yet. My wife says this is a luxury at this point, and I should cut the grass myself until we’re out of debt. What do you think?
Ty

Dear Ty,
I think it depends a lot on your income. If you’re a surgeon making $350,000 a year, then making lawn care part of your monthly budget is probably pretty reasonable. Now, if you’re only making $26,000 a year, you probably need to get behind the mower and start pushing it yourself!

Is this a snobbish attitude? I don’t think so. It’s a simple matter of mathematics. What is your personal time worth in the marketplace, and should you be plying your trade out in the world rather than mowing the lawn?

Let’s say you’re an attorney who charges $400 an hour. In that case, you’re probably going to be better off out there lawyering—especially if you’re trying to get out of debt—than you would pushing a mower. But if you make $12 an hour, it’s a good idea for you to be cutting your own grass, isn’t it?

Whether or not something is a “luxury” depends on your own personal income and financial situation. That’s how I look at it.
—Dave

Technorati Tags: dave ramsey savings, nix the lawn service, should cut the grass myself, What is your personal time worth

Categories : General, Planning, Saving Money

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Feb

Money Stories – No New Cars!

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When I was 20, I had saved up $1200 for my first car. A family member convinced me that you never buy used- only new cars and trade them in after 3 years for an even newer car. Stupid me, I believed that. I spent the next twelve years paying for 3 new cars and still had nothing to show for it! Learning a costly lesson, my husband and I payed off the last one four years ago and are still driving it. Read More→

Technorati Tags: buy a new car, save on buying a car

Categories : Encouragement, General, Saving Money

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Feb

Dave Ramsey Advice – January 31, 2011

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Why retirement before college?

Dear Dave,
I noticed that your Baby Steps list puts saving for retirement before saving for your kid’s college fund. Sending your kids to college would come first on the timeline, so why do you suggest this?
Jen

Dear Jen,
I advise this approach because everyone is going to retire someday, unless, of course, they happen to die before reaching retirement age. Retiring and eating are necessities. College is a luxury. Lots of people succeed in life without going to college, and thousands have worked their way through college. I worked 40 to 60 hours a week in college, and I still graduated in four years.

Having a college fund set aside by your parents is really nice, if they can afford that kind of thing. But you can go to school by getting good grades, applying for scholarships, working your tail off, and choosing a school you can afford. I believe in education, but there are lots of ways to get a college degree other than having your parents foot the bill.

The last time I checked, there aren’t any good ways to retire except for getting yourself ready for retirement. I mean, you can always live off Social Insecurity and buy that great cookbook, “72 Ways to Prepare Alpo and Love It,” but I don’t consider that a plan.

In short, college funding is not a necessity. That’s why it follows saving for retirement in the Baby Steps. Should you try to save up for your kid’s college education? Sure, if you can. But there are lots of parents out there who won’t be able to pay a dime toward someone’s college education. And that doesn’t make them bad parents!
—Dave

Technorati Tags: college funding, College is a luxury, College Saving Advice, Dave Ramsey, Dave Ramsey Advice, saving for retirement, saving for your kid’s college, succeed in life without going to college, ways to get a college degree

Categories : Career, General, Life, Planning, Saving Money

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Jan

Dave Ramsey advice -January 24, 2011

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Dating on a dime

Dear Dave,
I’m a recent college graduate, and I’m determined to follow your plan and get out of debt. My biggest problem is when it comes to dating. Things aren’t cheap today, so aside from not dating, how do you handle this area of your life when you’re trying to get your finances in order?
Roland

Dear Roland,
First of all, you definitely need to date people. I couldn’t have gone without dating, especially at your age. So, I’m not going to tell you to do something I couldn’t do.

There’s absolutely nothing wrong with dating inexpensively if you’re thoughtful. Just don’t be so cheap that you’re freakish about things. There are plenty of nice, stylish places that don’t cost an arm and a leg. A picnic and a Frisbee will go a long way on a pretty day! Your efforts to be a gentleman and make things happen in creative ways will be a lot more charming to any lady worth dating than throwing down an extra $100 at a snooty restaurant you can’t afford.

The other thing is to make dating part of your monthly budget. In your situation, it’s a legitimate expense, and you need to make it part of your financial game plan. Then, if you’re seeing someone on a regular basis, and the money in the “dating” envelope is getting low, you can explain to her that you’re working hard to manage your money properly so you’ll be wealthy one day.

This will make you even more attractive to the right kind of person, because it shows that you’re mature enough and responsible enough to be thinking toward and planning for the future!
—Dave

Technorati Tags: college debt, dating and debt, dating inexpensively, Dave Ramsey, dave ramsey advice college, financial game plan

Categories : Career, General, Life, Saving Money

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Nix the lawn service? Dave Ramsey

Nix the lawn service?

Money Stories – No New Cars!

Dave Ramsey Advice – January 31, 2011

Why retirement before college?

Dave Ramsey advice -January 24, 2011

Dating on a dime

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