NEW CASTLE —
Dear Dave: I made the mistake of leasing a car a while back, and the lease is up in about nine months. Should I save up the money between now and then to buy it, or save as much as I can to pay down my student loans? — Aaron
Dear Aaron: At the end of a lease the price for which you can purchase the car is called the residual value. This amount is preset when you lease the vehicle. So the big question right now is, what’s the car actually worth? If the company thought it would be worth $12,000 and it’s actually worth $14,000, that would be a good deal, and you’d want to buy it instead of turning in the car. Even if you were going to turn around and resell it, you’d still want to go ahead and buy. Another big thing is that I’d never tell you to finance a car after the lease term. There’s no difference between that and walking onto a car lot and financing any other $12,000 car. Look at it this way. You basically have a $12,000 car loan right now, and you’d only be changing the format from leasing to payments if you financed the thing. Should you keep this vehicle? Only if it’s a small percentage of your income. If you make $60,000 or more, I’d probably say save up, pay cash, and keep the car. But if you’re making closer to $30,000 the answer is no. — Dave
Dear Dave: I’m dating a man who is really exciting and fun, but he has well over $100,000 in debt. He has nice cars, a boat and he travels a lot, and he does it all on credit. He wants us to get married, but his view of money worries me. What should I do? — Vickie
Dear Vickie: The fact that you’re worried about this situation means you realize that fun and exciting don’t necessarily translate into being wise. I’m sure he’s a nice guy, but your concern tells me that you two are from completely different planets when it comes to handling money. And that can be a death knell to a marriage. Disagreements over money and finances are the number-one cause of marital strife and divorce in North America today. Fighting over debt and the stress brought on by financial problems will take a heavy toll on any relationship. When you’re not on the same page with how to handle your money, you’re not on the same page of life. How you spend your money says volumes about who you are, where your values lie, and what’s important to you. This guy is fun because he’s impulsive and has a lot of toys. But the fact that he’s gone into debt for this lifestyle also means he’s a little boy and not a responsible man. And unless you guys can get on the same page with how money is handled, I would strongly advise not going forward with a wedding. For this to get serious and turn into marriage material, one of you will have to change. Either he’ll have to straighten up and start behaving wisely with money, or you’ll have to agree to enjoy living deeply in debt. — Dave
(The Dave Ramsey Show is heard by more than 5 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.)
All About You ...
Related Photos
-
For years Dave Ramsey has been the host of the popular ‘Dave Ramsey Show’ on radio stations across the nation. Now, his financial advice column is carried by more than 300 publications. It will appear each Friday on The News website.
Discussion
Dave Ramsey: Should I buy it or turn it in?
- All About You ...
-
-
Making a Difference: Volunteers put up home for young mother, son in three days
The Blitz was on this weekend in New Castle. Habitat for Humanity had a “Blitz Build” for its latest Lawrence County house at the corner of Newell and Madison avenues in Mahoningtown. Over Thursday, Friday and Saturday, concrete block was laid for the basement, the ground floor was constructed, the roof was built and walls went up.
-
Culinary Conversation: A day in France— or close to it
Here’s some advice: If your spouse packs your lunch, never complain about the contents. I wasn’t actually griping. I just noted that it lacked excitement. The response from spouse was — our kitchen isn’t the Ritz Carlton.
-
Dave Ramsey: Avoid college loans if you can
“Dave Says" is a weekly column featuring financial advice from nationally syndicated radio host Dave Ramsey. His column is filled with timely, relevant questions and answers taken from actual letters and calls on Ramsey's radio program, “The Dave Ramsey Show.”
-
Lori Brothers: Be ready to stay healthy during storms
At any time during the spring and summer, we may get a signal from our local officials that there is inclement weather that can turn threatening. It is always important to pay attention during alerts to assure that your family, including your pets, are safe in the event of an emergency such as tornado, flood or power outage.
-
Sarah Stright-Hartley: Looking for stylish way to pack your possessions? It’s in the bag
One of the most personal things a woman buys is a handbag. It holds all of her prized possessions. So when shopping for a new bag, there are a lot of things to consider. Size, color, quality, fabric and length of use. Is she looking for something to use year round, or something that can be changed each season?
-
Kali Davies-Anderson: I’m now a year older — and a lot wiser
On May 7, I turned 28 years old. I understand this is still considered “young,” but I feel as though I have lived many lives in my 28 years. And in those many “lives” I have learned vast and various lessons.
-
Making a Difference: Custodian makes clean sweep of kids’ hearts
When Croton Pre-Kindergarten Center students recess for summer vacation next month, “Mr. Pete” will walk out the door with them. And it will be for the last time.
-
Culinary Conversation: 25 easy treats to make for Mom on Mother’s Day
The sweetest person you know deserves something equally sugary on Sunday. That would be your mother and the occasion is Mother’s Day. A luxurious brunch and a vase full of tulips are perfectly acceptable, and so is breakfast in bed, especially when big hands help little hands and someone (not her!) cleans the kitchen.
-
Dave Ramsey: How do mutual funds work?
“Dave Says" is a weekly column featuring financial advice from nationally syndicated radio host Dave Ramsey. His column is filled with timely, relevant questions and answers taken from actual letters and calls on Ramsey's radio program, “The Dave Ramsey Show.”
-
Lori Brothers: Walking tall is good for the body
Do you have neck soreness, back pain, or other posture problems? Maybe it’s time to take a new stance about your health and well-being. May is National Correct Posture Month.
- More All About You ... Headlines
-
