A college promise made years ago is now driving a financial and family standoff. John, a Chicago-based father of four, told "The Ramsey Show" that his parents took out a $104,000 Parent Loan for Undergraduate Students when he was 18. He said the loan was never meant to be his responsibility until expectations shifted after his father's death. "Don't worry about this loan," John said his parents told him while encouraging him to live on campus and get the full college experience. Now 34 and married, with ...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Quick Summary A six-figure-earning millennial sparked debate on Reddit after admitting they struggle to build meaningful savings despite contributing to retirement accounts and keeping spending in check. With costs compressing even strong incomes, many high earners benefit from connecting with vetted financial advisors through services like SmartAsset. Others trying to build financial margin are divers ...

Core Insights - The article discusses financial advice given by Dave Ramsey to a caller considering purchasing a $250,000 Porsche, emphasizing the importance of financial responsibility and planning before making luxury purchases [6][7][12]. Financial Situation of the Caller - The caller is a newly qualified cardiologist with an annual income of $650,000 and his wife earns $100,000, totaling a household income of $750,000 [4]. - He owns two homes, one with a $150,000 mortgage generating $1,000 per month in rental profit, and the other is his primary residence with a $300,000 mortgage [3]. - The caller has a signing bonus between $75,000 and $100,000 and an emergency fund of $60,000 [3]. Advice on Luxury Purchases - Ramsey suggests that while the caller can afford the Porsche given his income, he should ensure he is debt-free and has an emergency fund before making such a purchase [7][19]. - He advises against impulsive buying and recommends waiting to purchase the car until the caller is in a better financial position, ideally saving for it over three to five years [6][13]. Financial Priorities - Ramsey emphasizes the importance of prioritizing financial responsibilities such as building emergency savings, paying down debt, saving for retirement, and funding children's education before indulging in luxury items [16][17]. - The article highlights that delaying a luxury purchase allows for better financial planning and consideration of whether the item truly adds value to one's life [14]. Conclusion - The overall message is that high earners should use their income wisely to establish financial security before making significant purchases, allowing for guilt-free enjoyment of luxury items when financially feasible [19].

Core Insights - The article discusses a financial dilemma faced by a young man named Adam, who is being pressured by his mother to give her $50,000 to avoid foreclosure on her home [1][2] - Financial advisor Dave Ramsey emphasizes that giving the money would not solve the underlying issues and would only perpetuate the dysfunction in the family [3][5] Financial Situation - Adam's mother has a $90,000 home-equity line of credit with a balloon payment due, and she is unable to work or refinance her mortgage [2] - The house is valued at approximately $300,000, but the mother refuses to sell it despite the impending foreclosure [2][4] Advice Given - Ramsey advises Adam that it is not his responsibility to bail out his mother and suggests that she should sell her house to avoid foreclosure [4][5] - He highlights the ethical and moral implications of the situation, stating that giving the money would not be a responsible action [3][5]

Core Insights - The article discusses the financial struggles of a retired couple, Jeff and his wife, who are considering selling assets to help their son with a significant tax debt of over $200,000 owed to the IRS [1][2]. Group 1: Family Financial Situation - Jeff and his wife have a net worth of approximately $2.3 million and are facing a dilemma regarding their son's financial irresponsibility [1]. - Their son, in his 40s, has a history of tax issues dating back to his time in California, where he worked as an independent contractor in the music industry [1][2]. - The son has not filed state or federal taxes for the past four years and has failed to pay estimated taxes for 2023, as well as withholding and unemployment taxes [2][3]. Group 2: Consequences of Financial Decisions - Jeff estimates that around half of the $200,000 owed by his son is due to penalties and interest [3]. - The son recently left his insurance job and is now in a sales position earning approximately $75,000 annually plus bonuses, raising concerns about his ability to manage finances [3]. - Jeff and his wife have previously intervened financially for their son, including co-signing loans and paying for private schooling [4]. Group 3: Parental Dilemma - Jeff considered using part of his son's future inheritance to cover the tax bill but found the financial implications concerning, particularly the risk of the IRS placing a lien on their home [5]. - Financial advisors on "The Ramsey Show" suggested that the son, as an adult with a decent income, should take responsibility for his financial situation [5].

Financial Responsibility - Being financially responsible doesn't necessitate abstaining from all spending [1] - Offers tips for retirement savings, debt repayment, and enjoying life [1]