A painful reminder of the Importance of a Total Money Makeover

A painful reminder of the importance of a Total Money Makeover.


It’s been a rough week. My dad died on Tuesday. It came rather suddenly. Only a month ago had he been first diagnosed with “Pneumonia”. Over the next 4 weeks the “Pneumonia” became suspected cancer, to cancer in the liver and lung to cancer all over the body. Only two weeks ago had they said that there were chemotherapy protocols that could improve and extend his life (but probably not cure it). He never got the chance to try as the damage to his liver was too severe and he died 1 week and 2 days after the news was first confirmed.

He was a good man. But woefully inept in his finances .It is his and my mothers experiences and my own similar mistakes that started me on the road to Financial Peace. But I had recently stalled out. We had lost some focus after paying off about 15K. But seeing the aftermath of my dad’s death reminded me of the importance of what we’re doing. I’m going to share what he left my mom. Not to ridicule him, but to remind myself and you the importance of taking care of your finances.

• Debt

My dad has almost always turned to debt to solve his immediate financial problems. He refinanced his house in Southern California so many times he eventually had to sell it and move to Nevada because the payment was so high. He came to Nevada with $112,000 and a little more than a year later. He has a house, no money, maxed out credit cards, past due bills, overdrawn checking accounts and even a payday loan off my mom’s paycheck (after doing a cash out refinance 3 months ago). The smaller credit cards had “credit insurance”. But the big one did not. Luckily all but one was in his name only and they cannot come after my mother for those. My mom will not be able to afford a 2000/mo payment and will need too immediately sell the house as she needs the equity to survive.

• Savings

At the time of his death, at the still relatively young age of 62 he had not one penny of savings. No retirement, CD’s, stocks, savings accounts or anything. As a matter of fact his checking accounts were overdrawn. The mismanagement has been going on for years. But we suspect it got worse as the cancer began attacking his brain. Luckily they had paid off their cars so we were able to sell one to raise some immediate cash.

• Life Insurance

Absolutely no Life Insurance.

• Financial Affairs and Paperwork

Going into my dad’s office and sorting through the papers is a little like entering Baghdad.  We are still going through stuff and trying to figure out where there at. My mom had no idea where they were at.

It’s such a clear object lesson to the value of the teaching that Dave Ramsey puts out. All of these issues are addressed in them. And if we follow the common sense advice our loved ones will not have to face a financial Hiroshima if we pass away. While I am sad at the passing of my father, I am more motivated than ever to honor him by doing things better and truly changing my family tree.