Dave Says

Rental Runaround (August 2016)

Do you think having cancer insurance is a good idea? (July 2015)

Setting up the kid's car insurance (February 2015)

Check cashing for the unbanked (September 2014)

Keep the lifestyle simple (May 2014)

Should she have skin in the game? (September 2013)

Time to pay it off! (September 2013)

Making It Through Medical Leave (July 2013)

Should We Ever Buy A House? (January 2013)

Be Tightfisted Until The Crisis Is Over (January 2013)

Paying the parents (December 2012)

Sallie Mae vs. selling the car (December 2012)

Whatís the worst that can happen? (December 2012)

Letting them in on the secret (December 2012)

Not ready to combine finances (November 2012)

What The Law Will Allow (August 2012)

Making The Right Choice (August 2012)

Baby comes first! (August 2012)

Get the brother-in-law out! (August 2012)

Trust Broken After Cosigning (April 2012)

Review The Research (April 2012)

The Investing Makes Her Nervous (April 2012)

Lifestyle Changes (April 2012)

Do I Tithe On An Inheritance (March 2012)

No Credit Score, No Mortgage? (March 2012)

Where Do Toys Fit In The Baby Steps? (March 2012)

Guilt and Cynicism (March 2012)

Where Does Debt Go When Filing Bankruptcy? (December 2011)

Where Does The Donation Go (December 2011)

Ready to Buy (December 2011)

Intensity Hurting The Marriage (December 2011)

Hobby Car? (November 2011)

Not Quite Dearly DepartedÖ (November 2011)

Enough For Retirement? (November 2011)

Itís Just Another Gimmick (November 2011)

Will Paying Early Help? (November 2011)

Bargain Master! (November 2011)

Sisters Should Have Asked! (August 2011)

Buy Now Or Wait? (August 2011)

So, He Knows How To Manage Money? (August 2011)

Girlfriendís Money Problems (August 2011)

Smaller Down Payment? (August 2011)

Why Canít She Get Another Job? (August 2011)

Landlord Wants Protection (June 2011)

Prepping Kids For Healthy Habits (June 2011)

Switching To Company Debit Cards (June 2011)

Should I Reduce My Tithe? (June 2011)

Closing The Account (February 2011)

Dishonesty Is Not The Best Policy (February 2011)

Piles of Cash? (February 2011)

New Car In A Bad Situation (February 2011)

Drop Coverage? (November 2010)

Can't Pay For Her Wedding (November 2010)

Does Pride Keep Us In Debt? (November 2010)

Not Time For A Reunion (November 2010)

You're Being Hoodwinked! (November 2010)

Buying Used or New? (November 2010)

Is There A Recommended Vacation Percentage? (July 2010)

Donít Do it for the Gas Mileage (July 2010)

Investing Strategy for Retirement (April 2010)

Insurance? (April 2010)

Triple Play Investing (February 2010)

How Do I Get Started in Real Estate (February 2010)

Published: July 2015
Do you think having cancer insurance is a good idea?  

No, I donít believe buying cancer insurance is a good idea. However, I do believe everyone needs health insurance. If you have a good health policy in place, itís going to cover you in the event youíre diagnosed with cancer.

Lots of insurance companies offer these policies because cancer is such a scary thing. Itís a hot-button topic, and many people have lost friends and relatives to cancer. I donít believe in cancer policies though. You need a good emergency fund of three to six months of expenses, long-term disability coverage and a solid health insurance plan.

My favorite health plan, and what I use personally, is the Health Savings Account (HSA). With an HSA you have money sitting there to cover some of the ancillary things. Most cancer policies wonít cover alternative treatments and things like that, and lots of them are income policies, meaning they replace a portion of your income, but thatís what disability insurance is for.

óDave

 

Impulsive may equal homeless


Dear Dave,

I moved to New Orleans four years ago for a job. I was let go and found a government job pretty quickly, but Iím ready for a change of pace. Iím thinking about using my two weeks of vacation to move and find something different in Austin, Texas. I have a little cash saved, but how much savings should I have in place for something like this?

Montgomery

Dear Montgomery,

What youíre describing may have sounded fun and cool to me when I was 20. But I made lots of really dumb mistakes back then, and itís definitely not the way I would handle things now.

Austin is a fantastic city. Itís booming, the people are great and itís only about a dayís drive from New Orleans. But going over there cold turkey with nothing but a little money in your pocket isnít a good idea. In other words, Iím not going to give you permission to be impulsive and unwise.

If I were you, Iíd take those two weeks of vacation, go to Austin, and see if I could line up a job. In addition to that, use every waking moment youíre not at work to scour job listings in and around Austin. Even if itís an interim kind of thing or two part-time jobs, at least then you wouldnít have to burn through all of your cash. Montgomery, this is the very same advice Iíd give my own son if he called me in this situation.

I love that youíre taking charge of your life and looking to make things happen. Just make sure you use a little wisdom and some planning in the process. Never jump off the dock before the ship has arrived!

óDave

 

Resenting the family loan


Dear Dave,

I borrowed $30,000 from my aunt to buy a condo eight years ago. We had a deal that she would get her money back, plus a piece of the profits, when it sold. If there were no profits, she would get back her original $30,000. Recently the condo sold and I lost the money I put into it, plus my auntís money as well. I make good money and donít have any other debt, but Iím a little resentful now that she wants me to pay her back. Do you have any suggestions?

Christine

Dear Christine,

I donít want to be mean, but you have no right to be resentful toward your aunt. This is the deal you signed up for, and she did nothing wrong. Wanting her money back now isnít greedy or malicious on her part, and itís definitely not worth putting a family relationship at risk.

I know what youíre thinking, because itís just human nature. You just went through a lot, and the situation didnít work out as planned. Plus, it doesnít sound like your aunt is hurting financially if she put $30,000 toward helping you in the deal. Part of you is thinking she has plenty of money, so why doesnít she just forgive the debt and forget about everything?

If you were barely scraping by, I might suggest that you sit down and talk with her over a cup of coffee, explain the situation and ask her to forgive the debt. Right now, the little girl part of you is whining, ďOh, come on. Just let me go!Ē But the grown-up Christine knows better. That part of you is whispering, ďYou know what to doÖĒ

Pay her back as quickly as possible, and get this bad deal behind you for good. You said you make good money, so just take care of your responsibility. Itíll hurt some, but itís better than taking a chance on ruining the relationship with a very generous and loving aunt.

óDave

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