Dear Dave,
My fiancĆ© and I just started your class, but weāre having trouble getting our beginner emergency fund together. We both work full-time, and I make $59,000 a year while he has worked in retail for several years and makes $22,000 to $25,000. Iām trying to manage a couple of side jobs, but we just canāt seem to get our budget to work in a way that will allow us to save anything. Can you help us?
Adrienne
Dear Adrienne,
First of all, your finances should remain separate until youāre married. Thereās shouldnāt be a āweā in terms of money at this point. You can always run a single budget that you both look at and prepare for after youāre married, but right now he shouldnāt be paying your bills and you shouldnāt be paying his bills.
The biggest problem I see is that heās making no money. He needs to get a better job. He canāt pay his bills, and in the process, heās sucking you dry. Iām sure your fiancĆ© is a good, hard-working man, but he needs to make a serious career shift soonālike now!
In the meantime, this guy needs to take on a part-time job or two until he gets that career shifted. Itās not really a budgeting problem youāre looking at. Itās an income issue.Ā
āDave
Dear Dave,
Weāre wondering if we should diversify our investments by hiring multiple advisors with different companies, so we wonāt have all our eggs in one basket. Your thoughts would be appreciated.
Marya
Dear Marya,
I would get one advisor, and I wouldnāt invest all my mutual funds in one fund. Virtually all mutual fund advisors can sell pretty much any mutual fund, and you can buy an array of different mutual funds from different companies through one advisor. That gives you diversification. So, thereās really no advantage in having multiple advisors, unless you donāt trust someoneās advice. And if you donāt trust someoneās advice, why are you working with them in the first place?
I personally have one financial advisor, and I trust that person. Still, I ask lots of questions and make sure I understand everything thatās going on with my money and the investment before making a decision. Why are you recommending this? What is it about them you like? Show me the fund and how it compares to the S&P and other funds in the same category. If you approach it this way, and again, you have one advisor, itās a learning process and you become a more educated investor. Plus, after a while you can create your own diversification.
Never put money into something you donāt fully understand!
āDave
* 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.