Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Fayette | Henderson | Lakes | McCracken | Warren | Webster
Guthrie link http://www.jsmc.org/Other-Ancillary-Services/Guthrie-Express-Lab/Medical-Imaging/
Davis Motor Sales banner ad

Dave Says – Dec. 15, 2013

dave says2 300KENTUCKY (12/15/13) – This week Dave discusses 'intense focus' and 'savings and security.'

Dear Dave,
What would you recommend for 401(k) contributions while getting out of debt? — Chaz

Dear Chaz,
I recommend putting a temporary stop to investing while you’re getting out of debt. Lots of people are shocked by this advice, because they’re afraid of missing out on the wonders of compound interest or their employer’s match. But the key word here is “temporary.”

Millions of people have followed and been successful with the program found in The Total Money Makeover. The first step, Baby Step 1, is to save $1,000 as a starter emergency fund. Baby Step 2 is pay off all of your debts, except for your house, from smallest to largest with the debt snowball plan. During this time you’re attacking your debt with incredible intensity and putting every penny you can scrape together toward knocking out debt.

The average person working my plan can pay off all their debt, excluding their home, in 18 to 24 months. Some folks can do it faster, and for some it takes a little bit longer. But during this time I want your financial focus to be squarely on getting out of debt. Once that’s done, you’ll find that you have a lot more control over your biggest wealth-building tool: your income.

Many times in life we try to accomplish too many things at once. One problem with this is often it diminishes our ability to focus. When you spend all your time nickel-and-diming everything, the result is that nothing gets done very well. You need to really move the needle and see results because personal finance is 80 percent behavior and only 20 percent head knowledge. It’s not really a math issue because if you’d been doing the math all along, you wouldn’t have a bunch of debt.

That’s why, for a short period of time, I want you to concentrate with laser intensity on knocking out debt. Once that’s out of the way, you can pour even more money into saving, investing and achieving financial peace! — Dave
 
Dear Dave,
My wife and I make about $100,000 a year. We have $63,000 in the bank, and we owe $47,000 on our home. The house is worth about $250,000, and it’s our only debt. We’d like to go ahead and pay off the house, but we’re worried about depleting our savings to that extent. What would you do? — Matt

Dear Matt,
If I were in your situation, I’d cut a check and pay off the house. Keep in mind that by doing this we’re not saying you’ll keep your savings at that lower point. Once that mortgage payment is off your backs, you’ll be able to save more and save faster than ever!

That’s my advice. Pay off the house and become completely debt-free today. You’ll still have $16,000 dollars in the bank and a six-figure income. It won’t take you long to rebuild your savings all the way back to what you had before, if that’s what you both want. You could do it in just a few months.

I’m looking at this as an opportunity to achieve the kind of financial independence everyone wants but few actually have. Go for it, Matt!
—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 2014 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 by using one of the social media links below.

Most Read This Week (Site-Wide)

April 22, 2014 10229

18 EPA Earth Day Events Take Action on…

in News by EPA
April 24, 2014 5536

Meet The Hopkins County Magistrate…

in News by Rita Dukes Smith, SurfKY News Director
April 23, 2014 5421

Dawson Springs Letter Carrier Sentenced…

in Top Stories by Rita Dukes Smith, SurfKY News Director
April 22, 2014 4550

Three Juveniles Charged in Connection…

in Top Stories by Paul McRee, SurfKY News Reporter
April 21, 2014 4022

Fire Destroys Old Tobacco Building in…

in Top Stories by Rita Dukes Smith, SurfKY News Director

Most Read Stories from Hopkins County

April 22, 2014 2721

Madisonville Woman Charged with Internet…

in Top Stories by Christopher Rogers
April 23, 2014 1545

MPD Detectives Investigate Hanson…

in Top Stories by Madisonville Police Department
April 24, 2014 971

Injuries Sustained in Two-Vehicle…

in Top Stories by Rita Dukes Smith, SurfKY News Director
April 21, 2014 615

Hanson Student Among 25 Receiving…

in Top Stories by Abbie Darst
April 22, 2014 507

Hopkins County School Board Approves…

in Top Stories by Taylor Riley, SurfKY News Reporter

Most Read Stories from Owensboro

April 21, 2014 3757

'Heath & Molly' Benefit Concert…

in Top Stories by Paul McRee, SurfKY News Reporter
April 21, 2014 1999

Owensboro Chamber Plans First ‘Lunch…

in News by Dennis Beard, SurfKY News
April 22, 2014 1138

DCPS Among Top 100 Nationally for Finance…

in News by Lora Wimsatt
April 22, 2014 901

New Hwy. 54 Traffic Light to Go Into…

in News by Keith Todd
April 22, 2014 355

Owensboro Museum of Fine Art Plans Exhibit

in Top Stories by Mary Hood

Most Read Stories from Muhlenberg County

April 22, 2014 4550

Three Juveniles Charged in Connection…

in Top Stories by Paul McRee, SurfKY News Reporter
April 21, 2014 4022

Fire Destroys Old Tobacco Building in…

in Top Stories by Rita Dukes Smith, SurfKY News Director
April 21, 2014 2208

One Injured in Rosewood Wreck

in Top Stories by Trooper Stu Recke
April 22, 2014 1784

Muhlenberg Last Day of School

in Top Stories by Paul McRee, SurfKY News Reporter
April 22, 2014 1408

Parsons Named Student of the Month

in Top Stories by Joyce Riggs

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 06social 21social 22social 04social 03