Personal finance author and radio host Dave Ramsey is widely known for his guidance on managing finances and getting rid of debt.
A 58-year-old man in August 2024 called into Ramsey's show to share his financial situation and seek advice on getting out of debt. The caller said he was getting "tired" of working and wanted to retire, but had no savings. He had $25,000 in mortgage debt and a $20,000 auto loan. When asked why he hadn't been able to save any money so far, the caller said he was married to a "spender" and got divorced at the age of 50, leaving him with nothing.
The caller said he is a trim carpenter by profession and makes $75,000 a year.
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Ramsey recommended that the caller start saving at least $2,000 a month for at least 10 years by working extra jobs and limiting his spending. He also strongly advised him to immediately sell his Harley-Davidson motorcycle, on which he still owed $20,000.
"Let’s pretend you saved $2,000 a month, $24,000 per year for 10 years. That’d be $240,000 plus growth, it’d be half a million," Ramsey said. "If you had half a million dollars in the bank at 67 or in a mutual fund at 67 and a paid-for house, that $500,000 will throw you $50,000 a year forever, and you can travel, do whatever you want to do with 50,000 a year."
Ramsey advised the caller to sit with a financial adviser and make a plan to reach his savings target. He also urged him to start contributing the maximum amount to a Roth IRA.
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Ramsey told the caller he could easily boost his income by working extra, as trim carpenters are in high demand in the US.
"It’s a math thing, it will build you a situation where you have enough of a nest egg that it causes you to have a good life," Ramsey said. "So you got 10 years, $2,000 a month and you can get there, it’s very doable."
Ramsey said the main reason people feel tired of working is if they feel like a "hamster on a wheel."
"I’m tired of working is what you told me, and so if my work is going toward a goal that I’m excited about, I’m not as tired, that’s all I’m saying," Ramsey added.
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