Retirement isn't supposed to feel like a second job, but for one caller on the "Dave Ramsey Show," it's looking like a long road of catch-up.
At 65, Mark wasn't in denial—he knew exactly how far behind he was. He admitted, "I am 65 years old. I have made absolutely horrible decisions with money all my life. Uh I have no nest egg. My wife has maybe 10,000 in a 401(k) and I've got maybe a couple thousand."
On top of having virtually nothing saved for retirement, Mark and his wife are staring down $137,000 in debt. That includes credit cards, a $15,600 car loan, and a new 15-year mortgage with a $115,000 balance. Despite recently crossing into six-figure income territory for the first time — "The two of us together will make about 105,000. First time we've ever broke 100,000" — their financial future looks grim.
Don't Miss:
- 40% of Americans Want a Vacation Home — This Startup Found a Way to Make It Possible (and Profitable)
- They Sold Their Last Real Estate Company for Nearly $1B — Now They're Building the Future of U.S. Industrial Growth
Dave Ramsey gave it to him straight. "You're working a while because you're broke," he said. Mark responded, "Uh yes, I am." Ramsey added, "So just plan on that part. As long as your health allows you to do that, then that's what we're going to do."
Still, Ramsey wasn't without a plan. He pointed Mark back to the "Baby Steps" — his path out of debt. "What I would do is just leave the bi-weekly mortgage alone. Let it run. And let's work the Baby Steps. Your $1,000 is there. Baby Step two is listing your debts smallest to largest, the 22,000. You need to be done with that in under a year."
That would take intensity. "$2,000 a month at least needs to be going on your debt, not counting your house. That's 24 grand a year. Out of 105, you got plenty of room to eat." But Ramsey wasn't suggesting steak dinners. "I want you on beans and rice. Rice and beans. In one year, 66, and you're debt free except the house. Then you build an emergency fund of three to six months of expenses and then we spend the rest of the time finishing off the house and starting to build a nest egg."
Trending: ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.
According to Ramsey, if Mark and his wife stay disciplined, there's still a way forward. "Basically, you're like 72 years old still working and you'll probably have about 200,000 in your nest egg. The house will be paid for and you'll be debt free. But you're working a while."
Ramsey also made Mark's call a warning for listeners of all ages. "I'm 65 years old. I have a car payment. I have credit card debt. I have a mortgage. And I have no money," Mark said. Ramsey didn't let the lesson slide by: "That will keep you up at night. So, if you're 35 and you're listening, that should be a warning shot across your bow."
But it's not just 35-year-olds who can learn from Mark's situation. Even if you're 45, 55, or pushing 60, it's not too late to start. Retirement might not look exactly like you once imagined, but there's still hope. The goal doesn't have to be a massive portfolio — it's about being debt-free, owning your home, and building enough savings to have peace of mind. For those starting later, working with a financial advisor can also help shape a realistic plan that fits your stage of life.
Despite the uphill climb, Ramsey left Mark with encouragement: "It sounds like you're very serious about this and it sounds like you're actually going to do it. The best time to plant a tree was 20 years ago. The next best time is today."
Read Next:
- Kevin O'Leary Says Real Estate's Been a Smart Bet for 200 Years — This Platform Lets Anyone Tap Into It
- 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform
Image: Shutterstock
