Don't Sell The Gold Yet
Lee and his wife have some gold and estimate that it is worth about $26,000. They're considering using it to pay off some of their debt. Dave is afraid cashing in the gold may be a bad idea in this case.
QUESTION: Lee in Philadelphia and his wife have some gold his grandfather gave them. They estimate that it is worth about $26,000 and are considering using it to get rid of some of their debt. They make $90,000 a year and are not completely sure how much debt they have. Dave is afraid cashing in the gold may be a bad idea in this case.
ANSWER: I’m afraid if you cash out your grandfather’s gold and you pay down this debt and you guys don’t get your freaking act together—because you spend everything you make and then some—you’re going to end up back where you started . You are completely disorganized and don’t even know how much debt you’ve got. You make way too much money to be this broke. You guys have got to get your act together and get yourself on a written budget, and the two of you need to sit down and get your act together and start paying down these debts and have a plan to clean up. If you’re doing all of that and put your family on beans and rice, rice and beans and you cancel the vacation because you’re broke, then you sell your grandfather’s gold and it helps you get with the program and move the needle that way, that’s fine. But the way you’re doing things right now, you might as well just throw the water into the wind, brother. You’ve got to change your habits. This gold is not going to do that.
I’m afraid that this is not going to be a blessing to your grandfather’s memory. I’m going to send you a copy of The Total Money Makeover. You and your wife sit down and do a written budget, and you get on a plan and you start reducing this debt. If you can reduce the debt and get your spending under control and get yourselves on the same page and you can do that for three months in a row, then let’s talk about cashing that gold in and making your new plan and your new life happen. But I wouldn’t want you to pay off all this debt and then not get organized. I want his memory to be blessed in this process.