Preparing for the Future
(Dave Says) Published March 8, 2025, by Tom Mayer
Dear Dave:
I’ve been following your show and the Baby Steps for about a year. However, I recently received some upsetting news from a family member that has me seeking your advice. One of my cousins was just diagnosed with cancer. She is a single mother with two young children, and it doesn’t sound like she’s put much thought into her future. What are the best financial steps she can take to protect her family at this point?
— Jacki
Dear Jacki:
I’m truly saddened to hear about this. A cancer diagnosis is frightening, so please remember to pray for her and be there for her as much as possible. When people ask if a person has their affairs in order, they often mean a few things. First, are you right with God? Then, do you have life insurance and a will? It’s also important to have all of the paperwork of your life organized and stored in a safe location so that someone you trust can handle the details if the worst-case scenario unfolds.
Everyone should have adequate term life insurance in place. My advice is to have a policy worth 10 to 12 times your annual income. As for a will, ensure it complies with the specific state in which you live. Probate and estate regulations are not federal laws; they’re state laws. A will needs to be drawn up according to the guidelines for the state you reside in.
It’s probably the most difficult thing to consider, but arrangements should be made for any minor children. Talk with two or three trusted family members, or close friends, to decide who will care for them if the worst should happen. The person chosen for this responsibility should be mature, caring, and willing to love and raise these children as their own. Good luck, Jacki. I know this is a challenging time for your whole family. Be there for each other, pray often, and give each other lots of hugs. God bless you all.
— Dave
Dave Ramsey is an eight-time national bestselling author, a personal finance expert, and host of The Ramsey Show. He also serves as CEO for Ramsey Solutions.
