Dear Dave,

My mother died about a year and a half ago, and she left me and my younger sister $75,000 each. My sister is 16, and she plans on enlisting in the military after high school, then using the G.I. Bill to pay for college afterward. She won’t receive the inheritance money until she’s 18. What advice can I give her to ensure she makes good decisions with the money?

Davis

Dear Davis,

I’m truly sorry to hear about your mom. At the same time, I’m so proud of you for stepping up to help your little sister. You know, $75,000 sounds like a lot of money—especially to a teenager. But that kind of cash can disappear in a heartbeat if she’s not careful. And then, all she’d have left where her inheritance is concerned is a lifetime of regret.

If she’ll be smart with this money, and by that, I mean investing wisely and having a little bit of fun, she could end up a rich, little old lady one day. Not only that, but she can honor the memory of your mother and change her family tree forever. Her family will think differently, and be able to live differently, all because she had the maturity to not blow the money.

You said she’ll get $75,000, right? Think about this. She could just have fun with $15,000 or so, and invest the rest in good, growth stock mutual funds. If the stock market continues to average what it has since its start, she’ll be a multi-millionaire—and then some—by retirement. Even if I’m half-wrong on the math, the advice still stands. She’d have millions waiting for her. The point is that investing a big lump sum of money, and leaving it there for her golden years, is a great idea.

Now, I’m going to give you some homework, Davis. I want you to talk to a bunch of rich, old folks. Learn what they did to build wealth and hang onto it. Also, make sure the friends and family you both have around you are quality people—the kind who have your best interests at heart. Remember, the Bible says, “In the multitude of counsel there is safety.”

Your sister is very lucky to have a big brother like you. Walk her through this advice. Be there for her. Look out for her. She needs you right now, and she’ll need you in the years to come.

God bless you both!

—Dave

 *Dave Ramsey is an eight-time No. 1 national best-selling author, personal finance expert and host of The Ramsey Show, heard by more than 20 million listeners each week. He has appeared on Good Morning America, CBS Mornings, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth and enhance their lives. He also serves as CEO for the company, Ramsey Solutions.

Dear Dave,

A few years ago, I had a real problem with credit card debt. Since then, I’ve gotten much better at handling my money, and I’m making about $80,000 a year. Two weeks ago, I received a letter about a credit card I had in 2020. The amount owed is $7,688. The letter doesn’t say I’m being sued, but it says I have to appear before a judge in two months for a pretrial conference. I live in Florida, and I’ve never heard of anything like this. I only have $1,000 in savings.

Damari

Dear Damari,

I’m glad to hear you’re handling your finances better now than you did in the past. But at this point, you’re learning that old debts don’t necessarily die, aren’t you? Ignoring debts isn’t a good plan, because many times they come back to life like a zombie and come looking for you.

I’m not an expert on Florida law, but a pretrial conference in a case like this—over a $7,688 credit card bill—is highly unusual. I’ve been helping people with money problems for 30 years, and I’ve never heard of anything like this. It could be some kind of new tactic the collections attorney is using to try to intimidate you.

If I were in your shoes, I’d call the attorney who’s suing you and try to negotiate a payment plan or settlement. Do you have anything you can sell? Because I’ve got a feeling if you can come up with $3,000 or so and offer it as payment in full, they’ll take it. I don’t mean to be unkind, but these guys figure you’re a deadbeat because you’ve got a 5-year-old debt hanging over your head and haven’t tried to pay it. They’ll take almost anything they can get at this point.

In general, when you go to court over a situation like this, you’re going to lose. You have a legal debt, and you haven’t paid it. It’s that simple. So, if you don’t have anything to sell to make some money that way, you need to get busy working an extra job or two. I’m talking about doing Door Dash or something—in the morning before work or in the evening after work. Kiss those weekends goodbye too. Just go nuts for a few weeks, and make a bunch of extra money fast.

It won’t be easy, and you’re going to be dog-tired for a while. But you can scrape together $3,000–4,000 before June easily if you’ll just put your head down and make it happen. Then, offer it up to the attorney. Demand a written release, with the debt declared settled and paid in full, and chances are, this thing will be off your back!

— Dave

 * Dave Ramsey is an eight-time national bestselling author, personal finance expert and host of “The Ramsey Show,” the second-largest syndicated talk radio show. He has appeared on “Good Morning America,” “CBS Mornings,” “Today,” Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions.

Dear Dave,

My husband and I are in a bad situation, and we’re thinking about taking my parents up on their offer to move in with them. We both work two jobs. I’m a medical transcriptionist with a small business on the side, and he’s a warehouse clerk who is also trying to get a business off the ground. Combined, we bring home about $70,000 a year, plus we have $80,000 in debt between credit cards and a car loan. On top of all this, our rent went up 18% at the first of the year, and we can’t afford the increase. Should we move in with my folks?

Melissa

Dear Melissa,

I’m not opposed to families jumping into a situation together to solve a problem. That includes grown children moving back home for a short period of time. Sometimes, when the right people are involved (and proper boundary expectations are established and agreed upon), it can work out well for everyone. I just want you to be very careful that you’re not using a move like this to mask the real problem.

I’m going to shoot straight with you. The real problem isn’t an 18% jump in rent. The real problem is what that rent increase revealed about you both—the fact that you have weak careers. You guys are like two hamsters in a wheel right now. Neither one of you is afraid of work. That much is obvious. And you’re working four jobs between the two of you, so there’s no lack of effort. But you’re not gaining any traction. You’re not making a lot of money, and the debt hanging over your heads isn’t helping either.

Your parents are obviously good-hearted people, Melissa. If you do this, I want you, your husband and your folks to go into it with this mindset—your stay with them is a brief stopover on your way to prosperity. Don’t go into this—any of you—with an attitude of the world is mean, rent went up, and we can’t make it out there. This is a safety net, not a hammock. Use this time to begin addressing your financial issues, and take a long, hard look at your career and income situation. If you use this opportunity wisely, you can emerge in a better place with your money and with getting ahead in your careers.

God bless you all!

— Dave

  Dave Ramsey is an eight-time national bestselling author, personal finance expert and host of The Ramsey Show, the second-largest syndicated talk radio show in America. He has appeared on Good Morning America, CBS Mornings, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions.