Dear Dave: My wife and I are following your plan, and recently we found some old savings bonds that had been given to her by her grandfather when she was a kid. Do you think we should go ahead and cash these in before they reach their final maturity date in a few months? – JOHN

Dear John: Absolutely! Every one of those savings bonds is accruing interest at the appropriate rate for the type of bond it is. The problem is every one of those rates stinks. I hate savings bonds. We’re talking about some very low interest rates.

Another reason I don’t like savings bonds is they’re not financial instruments which cause you to be responsible with them. People lose them, they forget about them, and then maybe they turn up in an old lock box somewhere down the road after making a whopping 2 or 3 percent.

Back in the day, they used to be positioned as patriotic and all that. But who wants to finance the stuff this government does? We’re not supporting World War II anymore, you know?

Cash them in, and depending on what Baby Step you’re on, put it toward your emergency fund, your debt snowball, retirement, your mortgage – just be proactive, and do something better with the money! – Dave

Dear Dave: We have two preschool kids, and I’m a stay-at-home mom. My husband brings home about $2,500 a month, and our mortgage payment is $1,000 a month. Recently, we’ve had to tap into our savings in order to pay the bills. Should I go back to work? There are a couple of reputable day care centers near us, but I’m just not sure if this is the right thing to do. – TAMMY

Dear Tammy: Being a full-time mom is a wonderful thing. And honestly, I can’t blame you for wanting to stay home with your children when they’re so young.

The biggest problem I see is that 40 percent of your husband’s paycheck is going toward your mortgage.

That’s way too much! A house payment should never be more than 25 percent of your take-home pay.

I know trying to live on the $1,500 that’s left is hard, especially with two babies in the house. But it doesn’t sound like a lot of fat can be trimmed right now.

One of you might consider taking on a part-time job nights or weekends for a while, or he could look into enhancing his education. Either one of these would help get your income up. Selling the house is an option, too. But I’m not a fan of that one except in the most extreme circumstances.

Right now, I’m viewing this as a math problem with three components. The components are income, house payment, and lifestyle. You and your husband need to sit down, and have a serious heart-to-heart talk about things.

There will have to be some sacrifices in order to make things better, but only the two of you together can determine exactly what’s best for your family.

God bless you all. – DAVE

– Dave Ramsey offers financial advice as host of a nationally syndicated radio program, “The Dave Ramsey Show.” Locally, his program may be heard from 6 to 9 p.m. weekdays on TALK 104.1-FM WKCT. For more, visit www.daveramsey.com.

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