dear sir dave
Do you need to cash your 401(k) to pay for your car? You have enough money in your account to pay off your car and free up your budget.
marina
dear Marina
If I were in your position and I could pay for the car within 18 months, I would live on rice and beans and make a very tight monthly budget and work through it until the car is paid off. . If that’s not practical, place an ad online and in your local paper to sell your car as soon as possible.
Cashing out retirement money to do this is not a good idea.I love that you want to get rid of yourself car paymentHowever, using a 401(k) will charge a 10% penalty on top of the tax rate. That means 30-50% of her will be lost to the government.
Marina, I don’t know you, but I think they do. the way I have too much money!
— Dave
No second mortgage!
dear Dave,
My husband was recently told by his company that he was about to be laid off and that he might as well start looking for another job. He saw some good potential, but the job is 160 miles away from him. In preparation for the move, he consulted with a real estate agent who told him he would need to remodel the kitchen in order to sell the house. He has about $4,000 in savings, but his agent told him the modifications would cost him $2,500 to $3,000. Does he need to take out a second mortgage to pay for his work?
natalie
dear natalie
First, it’s a good idea to cut back on your spending as much as you can, live on a tight budget, and save as much cash as possible. But taking out second mortgage? no! I want to keep it in my head.
It might be a good idea to ask your opinion about a kitchen remodel. Sure, a new kitchen would be nice, but if you decide to sell your house, would it be a do-or-die kind of thing? Probably not, unless it’s really bad right now. Either way, we can’t go into debt to make this happen. That means your home isn’t for sale yet. There’s no reason to fix a house that isn’t for sale, especially when it’s only in his name for $4,000.
My advice is to see how the whole work situation unfolds before making any big decisions. And when you do end up selling your house and moving out, you might spend $500 or so from your savings on a little new kitchen.
* Dave Ramsey He is a seven-time #1 bestselling author, personal finance expert, and host of The Ramsey Show, which is listened to by more than 18 million listeners each week.he He has appeared on “Good Morning America”, “CBS This Morning”, “Today”, Fox News, CNN, Fox Business and more. Since 1992, Dave has been helping people take back control of their money, build wealth and improve their lives. He is also CEO of his Ramsey Solutions.
