A: Right now, you need to be getting out of debt, saving and building wealth for you. As you do this you can choose to use some of your money to help family, friends or your community, if you want. But just because you're headed in the right direction and being responsible with your money is no reason to set up a "my dad's an idiot with money" account.
In your situation, you need to be working the debt snowball. List your debts - and it'll be easy since there are only three of them - from smallest to largest. For you, this means you'll make minimum payments on the car and the big student loan while you attack the $4,000 loan with a vengeance. Scrape together every penny you can to throw at that thing, and once it's paid off, take the money you were putting toward it, plus any other you can scrounge up and knock that car out.
It may take you a couple of years of rolling up your sleeves and really attacking these things, but you can do it.
Staying a renter
Q: I'm 58, my kids are all out on their own and I rent a great little apartment. It's a perfect setup for me, because I travel quite a bit. However, I've had several people tell me I should really look into buying a house. I've saved about $450,000, I make $90,000 a year and my rent is $1,100 a month. So I guess I'm looking for validation. Is it OK for me to continue being a renter?
A: I think it depends a lot on the ratio of rent to wealth. By this I mean if the rent isn't much compared to the size of your income and nest egg, then I'd say keep the apartment. It's not doing you any real financial damage, plus you still have the ability to invest in things other than a personal residence.
Now if you're not doing any other investing because your income is being eaten up by rent, then apartment living starts to become a bad idea pretty fast. But the only real downside, long-term, is that market rents will go up eventually. If they rise faster than your income, then you could lose control of that part of your life. Or what if the current owners sell the building and the new management jacks up the rent? Then you'd need to look into buying something so you could regain control of all that.
Still, if I'm in your situation, with your lifestyle and having piles of cash saved up, I'd stay put. It sounds to me like you've got a pretty sweet situation. But if things get sassy instead of sweet, you'll be forced to revisit this issue.
To see where Dave is appearing live this spring, visit www.daveramsey.com/category /events/.