Unmanned Flights: UAV changes job perspective for Nicholls students
October 28, 2014Stay here to keep up with local 2014 Election Night results
November 4, 2014Dear Dave,
Do you recommend that people continue tithing and giving while getting out of debt I loaned some money to a good friend recently. He’s going to help me with a job I’m working on, so do you think I should pay him for the work or just forgive the debt instead?
– Charlie
Dear Charlie,
The big question is whether or not you’ve already agreed to pay him for the work. Another is how he views the situation. In his mind, he may just be helping a friend and looking at it as he still owes you the money.
If you don’t already have an agreement, my advice would be to ask him what his expectations are. Just talk to him, find out what he’s thinking and figure out what seems fair to you both. The big thing at this point is that you’re on the same page. If you have already agreed on a certain amount, and the value of the work is pretty close to the amount you loaned him, you might talk to him about the possibility of knocking out the debt that way. He could work off the debt while helping you on this project.
There’s really no right or wrong answer to this question, Charlie. However, I would recommend not loaning money to friends or family in the future. Sometimes things work out and everyone’s happy. But in most cases it changes the dynamics of the relationship. The Bible says that the borrower is a slave to the lender, and there’s a lot of truth to that statement financially and emotionally.
I’ve seen situations like this go bad and even ruin friendships. It sounds like you two are good buddies and have a great bond, but if someone close to you really needs help, and you’re not enabling bad financial behavior in the process, just make the money a gift. Sooner or later this kind of thing will mess up a relationship.
– Dave
——–
School’s on the horizon
Dear Dave,
I think this is a good plan, as long as the two of you are on the same page and you’re willing to save like crazy for the next year and beyond. Even with help from your employer and his stipend you’ll still have some expenses, so you’ll have to be ready.
Once you complete Baby Step 3, which is having three to six months of expenses set aside as an emergency fund, Baby Step 4 is usually starting to invest 15 percent of your income toward retirement. In this case, while he’s finishing his degree, you’re not investing for retirement directly but you are investing in your husband and your future together. That’s a great investment, by the way. As long as he’s studying something that has marketplace application, you’re setting the stage for him to make back the money put into his degree and much more.
If that’s the plan, and he’s not off pursuing a Ph.D. in something like German polka history, you two are making a great investment. So work hard now, cut all the corners you can and pile up money so you two can get through his time in school!
– Erin
Dear Erin,
I think this is a good plan, as long as the two of you are on the same page and you’re willing to save like crazy for the next year and beyond. Even with help from your employer and his stipend you’ll still have some expenses, so you’ll have to be ready.
Once you complete Baby Step 3, which is having three to six months of expenses set aside as an emergency fund, Baby Step 4 is usually starting to invest 15 percent of your income toward retirement. In this case, while he’s finishing his degree, you’re not investing for retirement directly but you are investing in your husband and your future together. That’s a great investment, by the way. As long as he’s studying something that has marketplace application, you’re setting the stage for him to make back the money put into his degree and much more.
If that’s the plan, and he’s not off pursuing a Ph.D. in something like German polka history, you two are making a great investment. So work hard now, cut all the corners you can and pile up money so you two can get through his time in school!
– Dave
• EDITOR’S NOTE: Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, EntreLeadership and Smart Money Smart Kids. The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.
