Dear Dave,
I am currently serving in the military, and I’m not sure I like the life, or what I’m doing, as much as I did a few years ago. Recently, I was approached with some exciting opportunities outside the military in a different field. I’m not sure what to do. Do you think I should make plans to take advantage of these new opportunities, or should I stick with the military and receive full benefits when I’m eligible to retire in 10 years?
William Dear William,
There are people who absolutely love the military. It makesagreatcareerforsome folks, and I think that’s awesome. God bless them—and you—for serving their country that way. But whether you’re in the military or a civilian, I think you should do what you love doing.
If you were just a few months away from retirement, I’d probably tell you to bear down and tough it out. That way, it wouldn’t be too long before you could explore the new opportunities and have a nice pension coming in. But 10 years is a long time to do anything when your heart’s not in it.
Long story short? If you love it, stay. If you don’t, get out. Serving in the armed forces is voluntary, and in a sense, that makes it a little like other jobs. Regardless, hanging around for a decade in a job where you’re miserable just to collect benefits? That’s not a good plan.
— Dave
Dear Dave,
I’m20-yearsold,andI’min a bad spot. I’ve been a jerk for the last year, not listening to my parents about anything. Now, I’ve got over $10,000 in debt from running up bills on credit cards and writing some bad checks. Two weeks ago, I also lost my job and totaled my car. I’m about to lose my apartment, too, because I don’t have the money for rent. A friend of mine said I could stay with him for a while, but I’m really scared. My parents say I created this situation all by myself, and I need to figure out a solution all by myself.Wouldyoupleasegive me some advice? I don’t even know where to start.
Justin Dear Justin,
It sounds like you’re about as close to rock bottom as a person can get. I know it’s a scary situation, especially for a young person. I’ve done stupid stuff, too. And the stupid things I did had lots more zeroes on the end than you’re looking at right now. So, I’ve got some good news for you. There’s hope! The simple fact that you’re looking for help, and have realized the way you’ve been living is stupid, means you want to change. That’s a good thing.
Still, when you do stupid things, you’ve got to pay what I call “stupid tax.” I’m talking about the consequences of your actions. It sounds like you’re going to have get two or three jobs, and find a really cheap car that will get you around for a while. If you do this for maybe 12 to 18 months, and live on a very strict monthly budget, you’ll probably be able to pay off all that stupid tax you’ve accumulated.
I think you’ve also recognized the fact that you left your integrity and selfrespect on the sidelines for way too long. That means doing the right things really needs to be a priority from now on. The cool thing about the practical issues you mentioned—finding another permanent place to live, something to drive and paying off the debt—is that all this will get better because you’ve made a conscious decision to be better.
You might want to think about finding and regularly attending a good church, too. Any understanding and caring pastor would be honored to pray with you, and walk with you as you get your life back together and headed in the right direction.
God bless you, Justin. You can do this!
—Dave Dear Dave,
I’m getting married next month, and my fiancé and I are both following your plan. I’m on Baby Step 3. I make $65,000 a year and have $14,000 in my emergency fund.Myfiancémade$90,000 a year, and he’s on Baby Step 2 paying off his car loan. He has his beginner emergency fund in place, and we already have $3,000 set aside for a honeymoon trip. I said he “made” $90,000, because the company he was working for just went out of business. He’s an experienced heating and air technician, and he has already had a few companies reach out with offers or interviews. Do you think we should still go on a honeymoon, or wait until he officially finds another job and things are a little more stable?
Charlotte Dear Charlotte,
I’m not generally a big fan of spending when someone loses a job. But honestly? I think your situation is a little different than most. I also think you two are different than a lot of folks I talk to. Here’s why.
First off, you’re both serious about dumping debt and getting control of your finances. That’s the big thing. Plus, you make good money, and he will again very soon, based on his prospects and the line of work he’s in. On top of all that, you’ve got a nice pile of cash in the bank. This tells me you’re both wise enoughandmatureenoughto know the importance of being on stable ground financially. Your guy will have another job in a couple of weeks, considering his experience and the fact companies are already reaching out to him. If he’s lucky, he might even be abletoworkadealthatwould allow him to start a new job right after the honeymoon. So, I like the future you two are looking at, Charlotte. You have some financial padding, he’s in a field that pays well and I’m pretty sure his income is about to be restored. Congratulations on your upcoming wedding, and God bless you both. Go have a great time on your honeymoon. I hope you two will have long and happy lives together!
— Dave Dear Dave,
I follow your advice and live on a budget, but it’s really hard to save up for a down payment on a house because property is so expensive on the West Coast. My family thinks I should buy a cheaper property back home, fix it up and flip it to get the extra money I need. How do you feel about this?
Alan Dear Alan,
When you take on this kind of work, you need to oversee what’s happening every step of the way. You’re working out details, keeping an eye on the crew and it’s all on you to make sure everything’sbeingdoneright. It’s not unusual for pros
Dave Ramsey is a seventime #1 national best-selling author, personal finance expert, and host of The Dave Ramsey Show, heard by more than 16 million listeners each week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, buildwealthandenhancetheir lives. He also serves as CEO for Ramsey Solutions.
who flip houses to look at 100 or more properties to buy just one. It’s not an easy way to make money, and it’s definitely not something to consider doing from a distance. All that being said, can you guess what my answer’s going to be? Fixing and flipping properties in the area where you live is hard enough work. Trying to do it from hundreds of miles away would be a nightmare. There’s no way I’d sign on for something like this.
Keep working on your budget, and start saving as much money as you can. You might even consider getting a part-time job for a little while tobringinsomeextracashfor your house fund. But waiting and saving up is a lot smarter than trying to fix and flip a house in another state.
— Dave