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Dave Ramsey explains how man, 53, with £24,000 and no savings can get by in retirement

NewsDave Ramsey explains how man, 53, with £24,000 and no savings can get by in retirement

On the Ramsey Show – Highlights YouTube channel, the finance expert suggested how a 53-year-old can get his life together after falling into debt.

Donny called into the show explaining that did not know what to do as he was “in a pickle”.

He said: “I have absolutely nothing saved for retirement, I’m $50,000 (around £40,000) in debt and I want a divorce.”

The truck driver explained that last year, he was in a good place as had no debt.

He had six months of living expenses saved up, and he had cash available so he and his wife didn’t have to use credit cards. “We were set,” he added.

However, Donny explained his wife suddenly wanted to move into a bigger house which doubled their rent.

Not only did they use some extra cash to pay for their home, but they also used their savings which emptied them out and started using credit cards to buy things.

Donny continued: “Now I’m finding out we owe $30,000 (around £24,000) to the IRS for taxes she didn’t take care of.

“I’ve been in full panic mode since I turned 50, I need something to be done about the taxes.”

Mr Ramsey said: “It’s a mess I’m sorry Donny.

“I’ll be happy to tell you what to do with IRS, go to Ramsey Solutions and our tax experts will help you out.”

To tackle his other problems, the finance expert urged Donny and his wife to get on the same page.

Mr Ramsey said his communication needs to be better to get on the same page as his wife and start the process of getting out of debt.

Without communication, Donny will be left to clear the debt on his own rather than together with his wife. This is the last shot they have, Mr Ramsey warned.‌

He explained that the most powerful wealth-building tool is one’s income so if people use it on credit card and car debt, it will always hold them back.

“People have to stop giving money away to debt corporations,” he said.

Without these debts, people can free up their extra cash.

After clearing debt, people can start building their emergency funds with three to six months’ worth of expenses being covered.

Once this has been saved, people can start saving 15 percent of their household income towards retirement.

Episodes of The Ramsey Show are available on youtube.

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