Should I buy a new car or fix my current one?
Dear Dave,
I just finished paying off my car, a 2000 sedan at $250 a month, and now I?m having problems with it. A computer chip shorted out last week, and now I?m having transmission problems. My friends have looked the car over and tell me it?s falling apart. They say I should buy another one. Should I just fix the one I have instead?
? Kathy
Dear Kathy,
First, instead of just friends I?d have a real mechanic take a look at this vehicle. Your friends probably aren?t trained mechanics and are encouraging you to do something silly like THEY might do ? running out to buy a new car just because the radio knob falls off the old one.
This car has still got several good years left in it. If your options are go into debt or fix this car repeatedly ? fix it repeatedly! You just freed up a big chunk of cash when you finally finished paying for the car. If you allocate even half that amount each month toward maintenance and upkeep, that?s $1,500 a year and more than enough to keep a good car up and running.
? Dave
Dear Dave,
I?m 25 years old, married and we have three kids. We owe about $100,000 on our house, with monthly payments of a little over $800. We also owe $8,000 on a car and have hospital bills totaling $1,000. Our total monthly bills are about $2,000, while my take-home pay is only $2,100. We also have no savings. What can we do to keep from going under and losing the house?
? Chris
Dear Chris,
Wow, things really are tight. You?ve got too much house for your income ? way too much. Selling a house is painful, but if you don?t get your income up immediately with a new job or extra jobs, you?re going to have to sell. Your car is pretty expensive, too, for someone making less than $30,000 a year. If I were you, I?d consider selling it, too, if you?re not able to increase your income pretty quickly.
I?d sit down a write out a game plan to just get vicious about it and attack that debt. First, get a beginner emergency fund of $500 in place. Then, just go crazy ? have a yard sale, pick up an extra job and live on a really tight written budget. If you do all this, I think you could have the hospital bills and car paid off and be debt-free except for your house in a little over a year.
? Dave
Dear Dave,
Our church is running a missions trip, and has told the kids they can send out sponsor letters if they can?t afford the cost. I?m trying to teach my kids you should work for the money you get, and I don?t agree with the whole idea of sponsorships for this. What do you think?
? Gary
Dear Gary,
I think you?re basically on the right track in terms of earning what you get, but let?s take a look at it this way. If your kids are going to be involved in the ministry ? especially as a missionary ? they?ll have to get used to the idea of receiving. It?s part of the job description.
The big thing is that the kids understand why the trip is important and why people should want to support their efforts. If it?s just another chance to hang out with friends or go party in another country, most people won?t be very supportive.
But, if her heart?s in the right place, the support she receives will be just another part of the process in making the ministry come to fruition. There?s certainly nothing wrong with kids, and even parents, working to pay for their own mission trips. Honestly, that?s preferable.
? Dave