Quit small business and take new job?
Dear Dave,
I’ve had my own small business for a while. I love what I’m doing, but things aren’t going well, and I’m committed to $14,000 in Yellow Pages ads over the next 12 months. Recently, I got a great job offer from a company that would pay me twice what I’m making now. I’m not sure what to do.
Rich
Dear Rich,
It’s very important to keep your options open right now. If you completely close your business, you’ll be giving up your customers. I’m not sure I’d do that, especially when you know so little about the new job you’ve been offered.
I’d suggest trying this new job, but keep a few of your customers and see if you can do the work on weekends. This would help cover some, if not all, of your business debt AND keep some money rolling in if the new job doesn’t work out.
If you find that you like this new job, then you’ve got a great income plus something you like doing on weekends that pays. If you keep your business open – even on a small scale – there’s always a chance it will begin to grow and give you the opportunity to jump back into it full-time again!
- Dave
Getting started saving for kid's education
Dear Dave,
My husband and I are to the point where we can start putting college money aside for our infant son. What kind of account do you recommend?
Ann
Dear Ann,
An Educational Savings Account is absolutely the best way to save for a child’s college fund. The best way to fund the ESA is in a good growth stock mutual fund.
To be eligible you must make less than $200,000 annually – married filing jointly – and you can contribute up to $2,000 per child per year to the fund. The money will grow completely tax-free and must be used for education.
Here’s the best part. Fully funded and based on the average mutual fund return of 12%, this investment will grow to about $126,000 by the time he’s ready for college!
- Dave
Let someone else use your credit card?
Dear Dave,
I’m 21 years old and in college with a part-time job. My uncle, who has a terminal illness, asked if he could use my credit card for a few things. When the bill came, I discovered he had charged more than $3,000 on the card. He said he’d pay the bill, but he hasn’t yet. What can I do?
Jessica
Dear Jessica,
This is a really bad situation. I’m sorry your uncle is so sick, but what’s going on here is not just a bad idea, it’s illegal! As the card holder, YOU are the only one who has permission to borrow this money. You’re also the one who is responsible for paying the bill.
You need to have a sit-down, heart-to-heart talk with your uncle and explain this to him. Let him know that you’re not financially able to handle the situation. Then, call the credit card company, close the account and cut up that stupid thing!
But talk to him gently, Jessica. I know you love your uncle, but this is YOUR life we’re talking about and YOUR responsibility. If he won’t give you the money, you need to pick up some extra hours at work and get this debt paid off fast!
- Dave
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Dave Ramsey is a nationally syndicated radio talk-show host and best-selling author. His life experience gives him an unusually deep perspective and insight into life and money matters. Be sure to get Dave's "Total Money Makeover: A Proven Plan for Financial Fitness." If you'd rather order by phone, call WND's toll-free customer service line at 1-800-4WND-COM (1-800-496-3266).