Dave Ramsey suggests how man, 55, with no savings can get by in retirement

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On a video posted on The Ramsey Show – Highlights YouTube channel in 2020, Dave Ramsey offered guidance to Paul on how he can build wealth for retirement. Paul was four months away from being debt free however he had no money for retirement due to a bad divorce. He also had to pay a lot of debt.

He wanted to know what the best thing for him was to do.

Paul “had no idea” and wasn’t sure if he should invest money.

Dave suggested Paul first get his emergency fund in place.

This should be three to six months’ worth of expenses, the American finance personality explained.

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Paul had no house payments as his wife owns the house they live in.

As they had both been in marriages before, Paul’s wife wanted a prenup before they got married.

He explained that they keep their finances separate because of this.

But the money guru explained that a prenup does not prohibit the couple from living their dreams.

Paul has tried to combine their finances, however as his wife earns more than him, she sees no benefit for her in this, and decided to keep things separate.

Dave said: “I think you’re going to struggle to build wealth.

“Working together is essential. It’s one of the data points we see for families who are wealthy. They worked together.

“They overcome the wounds and hurts of the past to overcome that.

“Couples who work together have a much better chances of living their dreams.”

Dave suggested Paul should consider starting investing if he wanted to build his own wealth.

Since Paul does not have outgoings on his accommodation, and he does not have any children to support, the money expert explained he’s on the shortest path to building his own nest egg.

He said: “Once you have your emergency fund in place, max out all retirement funds you can get your hands on.

“Depending on your income you can really chuck a bunch of money away quickly.

“You’d be amazed how big a nest egg can grow from 55 to 65 now that you don’t have any payments and you can focus on that and concentrate on that.

“It will be much more efficient and have a higher probability of winning if you deal with the financial issues in your relationship.”

When The Ramsey Show did their millionaire research, they found that there was a high percentage of couples working together and achieving their goals together.

He said: “You can do it without working with your spouse, but 80 percent of the people that make it, work together.”

The Dave Ramsey Show – Highlights can be found on The Ramsey Show Youtube Channel.

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