I’m 61 & ‘don’t have enough’ to retire with $200k debt

A woman who called The Ramsay Show with concerns said she was worried about retirement despite having a substantial household income.

Dave Ramsey revealed that she and her husband had to make major lifestyle sacrifices in order to enjoy their golden years.

I received a call from Ruth from Cincinnati, Ohio. dave ramsey showseeking help for post-retirement anxiety

“I don’t have enough money for retirement, so I think it’s too late to retire before age 70,” said the 61-year-old man.

Ruth explains that her $401,000 is only worth $76,000, and she has debts totaling $200,000, including the mortgage, car payment, and credit cards.

Her husband had an income of $130,000 but could not save much.

“He makes too much money for you to be this broke,” Dave said.

He realized that Ruth’s household must have a spending problem and suggested strict measures in the opposite direction.

“All you have to do is make a beans-and-rice, scorched-earth budget so you can pay off all of this stupid car and these credit cards as soon as possible.

“Save up an emergency fund and allocate 15% of your income to 401,000 yen.”

big sacrifice

This extreme budget meant sacrificing one major luxury for Ruth.

“I’m not going to take another vacation until I retire,” Dave warned.

“Oh my god,” she said.

This guru said, “You’re so far behind that you need to pay off the house, pay off these debts, and put in another $100,000 or $200,000.

“If we continue to spend as much as we have and continue to be as disorganized as we have been, we will eat dog food and retire,” he added.

How much should you save for retirement?

Dave believes you should save at least 15% of your income for retirement.

But it also comes with other important financial goals, like building an emergency fund and paying off debt.

He calls this method baby steps, and they are as follows:

1. Save $1,000 in your starter emergency fund
2. Pay off all debts (excluding house)
3. Add up to 6 months worth of expenses to your emergency fund
4. Invest 15% of household income into retirement funds
5. save for your child’s college fund
6. Pay off your house quickly
7. build and give wealth

Let’s take a look at what Dave recommended for a 46-year-old without retirement.

And find answers to 13 important questions about Social Security that can help you avoid “tragic mistakes.”