Dave Ramsey has straight talk on generosity and its considerations

Radio host and personal finance personality Dave Ramsey includes one important goal in advice he regularly offers.

And it's a subject about which not all of those looking for his recommendations are immediately responsive.

Related: Dave Ramsey explains one vital money move everyone should make now

Once a person has established a reasonable degree of financial stability, Ramsey advocates for the importance of giving.

But there are some very important considerations around being generous with your money and possessions. More on that regarding one particular scenario is coming up in a bit.

First though, are the words of Ramsey's daughter, Rachel Cruze, an author and personal finance adviser herself.

"When I talk about money, it's not uncommon for people to get a little disinterested when I start talking about giving back," she wrote on Ramsey Solutions.  "The plan for paying off debt, budgeting, and building wealth makes sense — until I say that giving is equally important. Then I get a head tilt. I mean, why on earth would you work so hard to accumulate wealth if you’re just going to turn around and give some of it away?"

"Here's why," Cruze continued. "In all my years of living and breathing personal finance, I’ve found this to always be true: Real financial peace doesn't happen until you give back."

The importance of having a plan with your generosity

It's equally important, however, to approach giving with appropriate financial considerations in mind.

Recently, a woman seeking Ramsey's advice asked him a question about a situation she and her husband found themselves in after an act of unselfishness.

"Dear Dave," wrote the woman, who identified herself as Penny, according to KTAR News in Phoenix. "About a year ago, my husband and I offered an empty house we own to a young man at our church, who had lost his home and everything he owned in a fire."

"He has taken good care of the place, but has made no effort to pay rent. We don't need the money, because we're in good shape financially, and we were thinking about selling the other house, anyway," she wrote. "I'd like to simply write it off, and gift the home and title to this young man, but my husband feels he owes us something for putting a roof over his head all this time. What are your thoughts?"

Ramsey had a few blunt words for Penny to begin his reply.

"I think you and your husband have good hearts," he wrote. "I also think you handled this situation poorly."

Ramsey stated his belief that the terms of the arrangement, while commendable, weren't thought through with an outcome in mind.

"From the sound of things, you put him there originally on a charity basis, and now your husband wants to change the deal," Ramsey wrote. "You didn’t set up any kind of rental agreement, but your husband feels you two are owed something? I'm sorry, but no. That’s on you."

Ramsey suggested the couple revisit what the offer was in the beginning.

"At this point, you have some big decisions to make. Were you providing free housing to someone who was struggling, or were you providing a free house to someone who was struggling?" he asked. "I understand this young man experienced a terrible tragedy. But at the same time, I’m not hearing lots of evidence that he’s putting his life back together. If after this long the guy's not back on his feet and out on his own, you may be enabling bad behavior on his part."

The bestselling author then offered a few paths to consider to reach a resolution to the situation.

"Now, if you want to gift him the house, that’s your decision. If you want to approach him with a rental agreement or sale proposal to which all parties are amicable, that’s okay, too," Ramsey wrote.

"If neither of these ideas are in the cards, I’d make sure to sit down with this young man and have a gentle — but firm — talk," he continued. "I'd let him know I had been happy to help him over the last several months, but that he needs to start moving forward with his life. I'd set a very reasonable and patient timeline for a move-out date, and let him know once that time is up, I'll be selling the house."

"That’s fair to everyone concerned."

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