Dave Ramsey

Dear Dave,

My husband finished dental school three years ago. Recently, told me that he wants to go back to school to become a dental anesthesiologist. He makes $100,000 a year right now but says this will give him the potential to double his income. We’ve paid off five credit cards in the last year and a half, but we still have a $200,000 student loan. We also just found out that I’m pregnant. So, I’m feeling unsafe with this idea. What do you think?


Dear Shannon,

This is not a wise move. You’re $200,000 in debt, and he brings in dentist money. You guys need to clean up your debt.

This starts by living on nothing for a while. If he makes $100,000, then you guys need to live on half that. We’re talking rice and beans and living on a VERY tight budget for a couple of years. Then, if he wants to go back to school after that – and save up money to pay for it – we can sit down and talk.

You have every right to feel unsafe right now, Shannon. I’m sure your husband is a great guy, and that he loves you very much. But this is a ridiculous idea.

He needs to listen to his loving, pregnant wife. You’re right on this one, and he’s wrong. Period!

- Dave

Dear Dave,

I’m 61 and on disability. My home is paid for, and I have about a million dollars in assets. I try to spend no more than four percent of the principal each year. My current car needs repairs, but the cost would be more than the car is worth. I’m looking at getting another vehicle and was wondering, in my situation, if it would be better to lease, finance or pay cash.


Dear Linda,

I’m proud of the way you’ve handled your money. You’ve got the right attitude about wealth building, but the wrong idea about car buying.

There not a chance on the planet that I’ll tell you to go pick up a “fleece” or payments on a car. You’ve got a great thing going for you – a peaceful, calm and successful financial life. Why would you want to mess all that up with a lease or payments?

Here’s the deal. Consumer Reports AND my calculator both say that leasing a car is the most expensive way to operate a vehicle. It’s a rip off! Dealerships make more money off leases than they do from the sale of cars.

I’m okay with you buying a car. You’ve managed your money well, and you’re in great shape financially. But when it comes to the big shiny things, pay cash or don’t buy it!

- Dave

Dear Dave,

Does having supplemental insurance make good financial sense?


Dear Anonymous,

Some of it does under the right circumstances. But you have to be very careful when choosing these products, because there are lots of companies out there trying to sell you stuff that doesn’t make good financial sense.

Dave Ramsey

Dave Ramsey is a personal money management expert, popular national radio personality and the author of three New York Times bestsellers.
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