In September 2023, financial expert Dave Ramsey offered critical advice to a 61-year-old Arkansas woman, Teresa, with no money and plenty of debt. Her story was featured in a YouTube video titled “I’m 61 and Have No Money!”
With an annual income of $67,000 and debt of roughly $69,000, the woman — and her disabled husband — have serious concerns about their current and future financial well-being.
After learning more about her debt — including a student loan and two personal loans, one of which she used to purchase a $26,000 tractor — Ramsey didn’t mince words.
“Broke people don’t have $26,000 tractors.” He pointed out that her inability or unwillingness to sell the tractor, even at a loss, is holding her back from taking a step forward in improving her situation.
Ramsey encouraged the woman to get serious about her financial circumstances. He stressed the importance of taking drastic action to reduce and even eliminate debt.
He stated, “If I’m in your mode I’m so scared I’m going crazy…I’m selling the tractor, I’m selling the car, I’m going to get a two-thousand dollar car. I’m going to work like a crazy person.”
This advice was intended to help the woman understand just how serious her situation has become.
Trending: Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
Despite his straight-to-the-point advice, Ramsey provided a reassuring perspective, suggesting there is plenty of hope for a better future.
“If you’ll get this mess cleaned off, you’ll have plenty of money to save and invest. But you’ve got so many payments coming out, there’s no room in your budget to invest — and that’s why we tell people to clean their debt before they take advantage of max (retirement contributions).”
Teresa is not alone in her financial struggles. Her situation mirrors a growing trend in the United States, with many households struggling to manage debt while investing for retirement.
A recent report by Nationwide noted that 50% of retired survey respondents are considering a return to work out of fear of running out of money.
Ramsey doubled down on the fact that it’s never too late to save for the future if you make the right moves.
“You’re trading a $26,000 tractor for $150,000 in your retirement.”
Consulting a financial adviser can provide additional guidance and support for those struggling with debt. Financial advisers offer personalized strategies to manage debt, create effective budgets, and work towards long-term financial goals. They can help with everything from debt management to retirement planning and everything in between.
*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.
Chris Bibey has written about personal finance and investment for the past 15 years in a variety of publications and for a variety of financial companies. He is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Bibey believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Dave Ramsey Calls Out A 61-Year-Old With ‘No Money’ — ‘Broke People Don’t Have $26,000 Tractors’ originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.