dave says2 300KENTUCKY (4/22/18) — In this week’s column, Dave Ramsey advises a couple on honoring commitments during Baby Step 1.

Dear Dave,

My husband and I are just starting Baby Step 1 of your plan. Prior to this, we told my two nephews we would buy them laptop computers for college. They don’t get a lot of encouragement or support from their immediate family, so we try to help them when we can.

Should we go ahead and honor this commitment, postpone getting our starter emergency fund in place, and possibly take on a little more debt, or bow out of the agreement?

Lisa

Dear Lisa,

Well, it’s difficult to be generous when you’re broke. You don’t even have $1,000 to your names, and you’re going to buy two laptops? I don’t know how much debt you have, or what your household income is, but I do know neither of you have managed your money very well in the past.

If you make $50,000 a year, and you have $70,000 in debt, you should sincerely and apologetically bow out. Explain that you made a big mistake, and just be honest about why you can’t provide the laptops.

If you make $200,000 a year, but you’ve just been incredibly silly and lazy with your money, you should buy the laptops and then get serious about growing up and getting control of your finances.
Don’t make promises, financial or otherwise, you can’t keep. I know this is a tough, embarrassing situation, but it’s what I would do if I were in your shoes.

—Dave

. . .
 

Dear Dave,

Do you think the value of a “tiny home” would depreciate like a trailer?

Romeo

Dear Romeo,

That’s a tough one. I’m not certain they would depreciate like a trailer, but I don’t think they would go up in value much, either.

Anytime there’s a very limited demand for something, the price or value doesn’t generally increase. And there are very few people looking to buy tiny homes. The tiny home movement is kind of a niche thing. It’s a very narrow market, and something that doesn’t have a lot of demand isn’t going to appreciate.

I would avoid the tiny house movement if I were you, Romeo. Don’t invest in things that don’t have proven track records and don’t go up in value. I love real estate, but not tiny real estate.

— Dave

*Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 13 million listeners each week on 585 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

SurfKY News

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.

sitelogosm© Copyright 2008 - 2018 SurfKY News Group, Inc. All rights reserved.
This material may not be published, broadcast, or rewritten without permission.

Click here to subscribe to receive daily updates by email.

Most Read This Week...

Oct 16, 2018 10361

Police Chase Ends after Vehicle Sinks in Pond River

by Doreen Dennis, SurfKY News
Oct 15, 2018 6808

MPD: Tip ties Greenville Woman to 2-year Murder Investigation

by Doreen Dennis, SurfKY News
Oct 14, 2018 3274

Pickup Overturns Off Ilsley Road

by Ladonna Kay Lee
Oct 15, 2018 3192

Man Charged with Rape after Alleged Meeting with Minor

by Rita Dukes Smith, SurfKY News Director
Oct 16, 2018 2669

Hopkins County Sheriff's Reports — Oct. 16, 2018

by SurfKY News
Oct 16, 2018 2068

Ohio County Real Estate Transfers Listed - Oct. 16

by Janice Stone
Oct 14, 2018 1943

Soap Box Champions take Podium at Baldwin Track Saturday

by Ladonna Kay Lee
Oct 14, 2018 1464

DAVE SAYS: Keeping Options Open with Job Offer

by SurfKY News
Oct 14, 2018 1356

OUTDOOR TRUTHS: Being in His Presence Brings Clarity

by SurfKY News

Most Read This Month

Weather brought to you by

43°
°F | °C
Mostly Cloudy
Humidity: 94%
Wed
Partly Cloudy
40 | 64
4 | 17
Thu
Partly Cloudy
39 | 57
3 | 13
Fri
Scattered Showers
39 | 62
3 | 16
Sat
Scattered Showers
46 | 62
7 | 16

Save

Stories Trending Today

maroons soccerball
Oct 16, 2018 231

Maroons Beat Webster County, 4-0

by Steve LeMaster
Henderson County Logo
Oct 16, 2018 218

Henderson County Clobbers Christian County, 8-0

by Steve LeMaster

Market Report

Market Report brought to you by

Save