Dear Dave,
I’m beginning to think we got in over our heads with our house. My wife and I make about $125,000 a year combined, but we’ve never been able to put anything aside for an emergency fund. Our mortgage payment is 35 percent of our take home pay each month. We have two young children, so we eat out a lot, but we have no debt other than our house. Do you think we should refinance our home?
Jeff
Dear Jeff,
You two are making good money, and you’re debt-free except for your home. You can’t tighten up your budget enough to save up an emergency fund? Stay out of restaurants, dude! There’s no law stating you have to eat out a lot just because there are kids in the house. I mean, you’ve got no emergency fund. That’s a pretty basic thing.
You guys need to get on a written, detailed plan, and start hitting your goals. I’m talking about a strict, monthly budget. Now, I’ll admit your mortgage payment isn’t exactly what I would’ve signed you up for. Your house payments, or rent, should be no more than 25 percent of your monthly take home pay. But your house payment isn’t what’s holding you two back. What’s holding you two back is the fact that you haven’t been willing to tighten up the finances in other areas of your life to offset biting off more than you could chew in terms of a home.
No, I wouldn’t refinance. You’re fairly close where the mortgage payments are concerned, so I think you can make it through this by looking at ways to increase your income and selling stuff you don’t need to build an emergency fund. You two have been smarter than some, but you’re really going to have to buckle down and rearrange your priorities to make this happen!
—Dave
(Cash out my Roth IRA?)
Word count: 201
Dear Dave,
I have around $15,000 in a Roth IRA. I just recently started studying your advice, and I was wondering if it would be a good idea to cash it out and put the money toward debt.
Sarah
Dear Sarah,
I teach people to stop investing temporarily while they attack their debt. So, I wouldn’t add anything to it at this point, but the worst thing you could do is cash it out. If you do, taxes and penalties will steal a huge chunk of that cash. The only time I take money out of a retirement account to pay off debt is to avoid bankruptcy or foreclosure.
Start working the Baby Steps from the beginning. Baby Step 1 is saving up $1,000 for a starter emergency fund. Baby Step 2 is paying off all debts from smallest to largest, except for your home, using the debt snowball method. This will free up a ton of money! Then you’re ready for Baby Step 3, which is increasing your beginner emergency fund to a fully-loaded emergency fund of three to six months of expenses.
Now you’re ready for Baby Step 4, which is 15 percent of your income going into retirement!
—Dave
* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.
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This month we are highlighting Mountain West Architecture, our partner in moving forward with our permanent gallery space, XIBIT! Mountain West Architecture was founded by Mark Hilles in 2011. Based in Texas and partnering with a friend, Mark worked mainly on churches. Needing a change of pace and fueling a desire for more community involvement, he branched out on his own in 2011 and moved to Ogden.
Mark reminisces: “MWA's office location here at 25th and Porter, in the Nine Rails District, came about in a pretty fortuitous way. We’d been leasing up on Harrison and really wanted to buy and relocate downtown to contribute and help revitalize Ogden's core. About that same time, the momentum on so many great projects was happening along East 25th. The Monarch, Argo House (right next door), Imagine Jefferson Apartments, The Portland Apartments, Cuppa, Thai Curry Kitchen, the Main Library remodel, etc. These have all come in a short period of time [and] we're very fortunate to have landed in the middle of this great revival. And of course soon after, the Nine Rails District was born through foresight and perseverance of several key individuals and the City. The firm has members that are passionate about historic preservation and the District. We have done several projects to contribute to the fabric of Ogden and the Nine Rails District and look to do many more. We're in the process of designing 01Arts new Xibit space in The Monarch, Carriage House remodel, along with the exciting Porter Plaza Multi Use project.”
Carriage House
Porter Plaza Project
Porter Plaza is a mixed-use project at the corner of 25th and Porter. The project will be home to 15 townhomes and 25 plus apartments. Residents will enjoy open floor plans, rooftop patios and a community courtyard with retail space onsite for cafes and shopping in the same complex. “The development’s guidelines revolve around artistically complementing the Nine Rails Creative District, which draws its name from the nine Greek Muses who inspire artists to create,” says Hilles. “Adapting great design compliments both aspects and provides endless opportunities for the neighborhood while respecting the surrounding historic structures.”
As for XIBIT, Mark has several renderings that he is submitting to the board for choosing within days! Don’t forget, you can still contribute to this amazing project at:
Upcoming Events:
Feb 3 Two Grant Workshops
Feb 3 Charley Jenkins
Feb 7 First Friday Art Stroll
Feb 7 Open Studio Night
Feb 7 Van Sessions with the Banyan Collective
Feb 7 Artist Talk Event: WB’s Eatery
Feb 11 Pipes and Potpourri
Feb 12 Fundraiser for NEXT Ensemble: Celebrating the Life of Mr. Rogers
Feb 13 Utah Symphony: Women Rock
Feb 14 Valentine Dinner Dance feat. Crescent Super Band
Feb 14 Moonlight at The Monarch: A Valentine's Day Soiree!
Feb 15 A Monarch Wedding: Ogden's Premier Bridal Showcase
March 2 Joe Muscolino Band (Popular Hits)
March 12 Celtic Celebration
Want YOUR arts/culture event listed here? Write us before the 20th of each month....
Ogden First is a non-profit (501c3) corporation established to create and deliver arts programming, in all forms, in the context of adaptive reuse of historic or iconic spaces, organizing venues where artists can create, learn, perform and exhibit, amplified by our city’s architectural legacy.
Teens with ADHD need matter-of-fact ways to explain — to themselves and others — the ADD-related behaviors peers notice. Find sample language inside >
Language teens can use for explaining ADHD behaviors
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TALKING ABOUT ADHD
"It's Not a 'Mental Problem.' It's How My Brain Works."
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8 Songs for ADHD Brains
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"If He Loses His Joy, Nothing Else Will Matter."
"'I can't tell you to take Nick out of the remedial class and put him back in art,' I said to his mom, 'but that's what I would do if he were my kid.'"
We must value our children's true selves →
Helping Boys Climb the 'Friendship Pyramid'
Q: "Our son has trouble deciphering social cues. For example, he says he's ‘friends’ with his teammates, but I don't pick up on this at games."
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Moms with ADHD, Unite!
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Move Forward
Learn the latest research on the benefits of physical exercise for children and adults with ADHD. Register now »
