Dear Dave,
I got divorced earlier this year and was given custody of our children. They are 13 and 18. The house we live in is paid for and is worth about $450,000. I have no other debts. My ex-husband has been very good about paying child support, and I have $175,000 in savings. Should I invest right now?
Michael
Dear Michele,
I’m really sorry to hear about the divorce. I know that the whole situation, regardless of the financial situation, is very difficult for you and your children. Do yourself and them a favor, okay? Make sure you spend a lot of quality time with them. Hug them lots, pray and let them know how much you love them every day.
Now let’s look at the details of your situation. Fortunately, it seems like things are going quite well financially. You have at least a net worth of over $600,000. But here’s the thing. I’m sure the trauma of that your life is turned upside down is still very painful. If that’s the case, I wouldn’t recommend making any big decisions right now. It’s never a good idea to make important long-term plans when your emotions are in disarray.
When it comes to the money you have in savings, my advice is to just let it sit for a while. I know it won’t make much money, but you won’t lose anything either. Then, in a few months, when your emotions are in a better place, you can consider investing some of that in mutual funds with good growth stocks. Find a quality advisor, someone with the heart of a teacher, who can guide you through the process and explain your options and investments in a way you fully understand. Knowledge has a way of banishing fear and uncertainty.
Finally, at some point you will have to take a look into the future and decide what you want to do with the rest of your life. Do you want to go back to school? Maybe start your own business? Later, take some time to think, learn, and decide what you want out of life next. But most of all, Michele, please spend a lot of time with your children. And if you’re not currently in a good church, I encourage you to find one nearby. Those things will help so much in the healing process.
God bless you all.
–Dave
Dave Ramsey is an eight-time national bestselling author, personal finance expert and host of “The Ramsey Show.” He has appeared on “Good Morning America,” “CBS This Morning,” “Today,” Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and improve their lives. He is also CEO of Ramsey Solutions and is the author of numerous books, including Baby Steps Millionaires: How Ordinary People Built Extraordinary Wealth – and How You Can Do It Too.
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