Dave Says – July 3, 2011


Each Sunday on VicksburgDailyNews.com we bring you special pearls of wisdom from Dave Ramsey with the syndicated column called “Dave Says.” Dave Says is a weekly column carried by more than 300 publishers, with a total, combined circulation of more than 14 million! Featuring the financial advice of nationally syndicated radio host Dave Ramsey, the Dave Says column is filled with timely, relevant questions and answers taken from actual letters and calls on Ramsey’s radio program, The Dave Ramsey Show.

Ignore the math

Dear Dave, Should I continue to contribute to my 401(k) at work up to the match if I’m still trying to get out of debt? Anonymous
Dear Anonymous, Nope! I know, you probably think I’ve lost my mind on this one. Yeah, I know how important it is to take the match in a situation like that. In fact, it still kind of irks me to have to say these kinds of things. I’m a math nerd, so I really don’t like the whole idea of it very much. But I’ve learned a few things over the years. One of those things is that personal finance is 80 percent behavior and only about 20 percent head knowledge. And in the short term, the power of passionately focusing and sacrificing deeply to attack your debt will supersede the mathematics involved where your company match is concerned. In other words, if you stop saving temporarily for a year or two, and in that time wipe out your debts, the power you’ll gain in being free from those debts will be more beneficial to you than a couple of years of your company match. I would never tell you to stop investing or doing the company match for 10 years or anything silly like that. But if you stop for just a little while and clean up your mess, then go back to investing for retirement, you’ll reap so many more rewards down the road. Not only will you have permanently changed your behavior, but you’ll also be able to invest even more for retirement and other things! —Dave

You can’t make him grow up

Dear Dave, I’ve tried for years, but I can’t convince my husband to plan for tomorrow and stop living just for today. Is there anything I can do? Candace
Dear Candace, I hate to say it, but I don’t think you can convince him. The essence of your question is this: “How do I get him to grow up?” If he’s not willing to delay getting or doing things he wants, that’s a sign of immaturity. You guys are probably going to struggle with money as long as he has an attitude of “Thank God, it’s Friday! Oh, God! It’s Monday…” Being careful with your money and planning for the future doesn’t mean you can’t have any fun. It just means you may have to delay certain things for a little while. My wife and I have lots of fun and cool things now. Why? Because we saved like crazy and sacrificed. We lived like no one else, so now we’re able to live like no one else. In other words, we paid a price to win. Your husband’s problem is that he’s not willing to pay a price for a short period of time. That kind of immature thinking is a one-way ticket to a lifetime of mediocrity. And if you’re unwilling to pay the price to win, then you’re going to end up paying the price that comes with never having paid the price. —Dave
* For more financial help, please visit daveramsey.com. ]]]]> ]]>