Renee , Yes , I do have some advice . And it can be summed up in one word . Don ’ t . I admire your husband ’ s spirit , but the way he wants to approach this turns the entire situation into a trap . Think about it . If his business idea doesn ’ t work out , you guys have lost your retirement savings , and bankruptcy becomes a very real possibility . Diving head-first into opening a new business just because you ’ re bored with your current situation , or tired of answering to others , is not a good idea .
Look , I get it . Lots of folks have an entrepreneurial spirit . And everyone I know like that wants to live their dream . The problem is these dreams can turn into nightmares , for the entrepredave says may / june 2024
20
Featuring the advice of personal finance expert and best-selling author Dave Ramsey , the Dave Says column is filled with timely , relevant questions and answers taken from actual letters and calls on Ramsey ’ s radio program , The Dave Ramsey Show .
WELL-MEANING , BUT MISGUIDED Dear Dave , Our son will be graduating from high school in May , and then heading off to college in August . He will also be working during the summer to save up money for school . When classes begin , do you think he should continue working a parttime job , or would it be better for him to focus solely on his studies ? — Brenda
Dear Brenda , There ’ s really nothing wrong with either approach , especially during a kid ’ s first semester in college . As a parent , though , I ’ d urge you not to fall into the trap of thinking his grades will go down if he holds a job while in school . Research actually shows that , on average , kids who work while in college carry higher grade point averages than those who don ’ t .
The reasons for this differ , depending on who you ask , but I think a lot of it has to do with them having to learn to manage their time — and their lives — more effectively . Lots of kids could pay their way through school , and not have to worry aboutstudent loans , if they just used some of the time they spend watching television and on social activities at a job .
We never required our kids to work during the school year , but they were self-starters . And when they came home for the summer , there was no such thing as just lying around the house all day . They had jobs , and they made money . Of course , some of it went toward having a little fun during their time off . But we made sure they set some aside for the next school year , too .
Long story short , the philosophy of not wanting kids at college to work so they can spend all their time studying is well-meaning , but misguided . For the most part , kids who work while they ’ re in school will make better grades and develop into more mature and wellrounded individuals .
I hope this helps , Brenda ! — Dave
DON ’ T RISK IT ALL Dave , My husband is a good , hard-working man , who has been stuck in a job he really doesn ’ t like for almost 10 years . He came to me the other day with an idea to cash out his 401 ( k ) and using the money to open a business . He has always loved the idea of going into business for himself , and I want him to be happy , but I ’ m not sure this is a good idea . Do you have any advice ? — Renee