Dave Ramsey: 3 Ways To Make Sure You Don’t Retire Broke
Written by
Jennifer Taylor
Edited by
Levi Leidy
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Retirement should be a time to relax — not stress about money. Whether your golden years are approaching or still decades away, money expert Dave Ramsey has plenty of advice to help you retire comfortably.
Saving enough money to live on in retirement is a must, because Social Security doesn’t have you completely covered. The average retirement benefit was just $1,976 per month as of January 2025, which likely won’t be enough for all your expenses.
Therefore, it’s never too early or too late to listen to Ramsey’s retirement advice. Keep reading to learn three of his tips to keep from retiring broke.
Pay Off Debt
On an episode of “The Ramsey Show,” he advised a 65-year-old caller who admittedly hasn’t made the best money decisions throughout his life. Specifically, the man and his wife are in debt, have little saved for retirement and no nest egg.
However, the couple had just started Ramsey’s “7 Baby Steps” and already put aside $1,000 in an emergency fund. In addition to their mortgage, the couple had $22,000 in debt, including a $15,600 car loan.
Ramsey told the caller to put all his extra money into paying off the $22,000 debt in one year. After that, he said to build an emergency fund that can cover three to six months of living expenses, then pay off the house and start building a nest egg.
This advice varies slightly from his Baby Steps program. However, Ramsey clearly tailored it to meet the needs of a near-retiree, instead of someone a few decades younger.
If you’re in debt and nearing retirement, you might apply the same philosophy to your situation. For example, you’d skip step five — saving for your children’s college fund — and focus on paying off your home (if you have a mortgage) and investing your money in a retirement account.
Surround Yourself With Money-Minded People
They’re not managing your money, but the people you spend time with can influence your financial decisions. For example, on his show, Ramsey noted that it’s not uncommon for people to say you’re always going to have a car payment — a sentiment he deeply opposes.
“If people say the stuff like that, just go ‘I can’t hang out with you. You’re dumb. I’ll end up like you. I don’t want to be as dumb as you.'”
This isn’t the first time he emphasized the importance of being cognizant about who you allow to influence your money matters.
“Always manage your own money,” he wrote in a Facebook post. “You should surround yourself with a team of people smarter than you, but you make the decisions.”
Increase Your Earnings
Clearly, earning more money is easier said than done. However, the more you earn, the more you can save for retirement.
When offering advice to a 61-year-old caller with minimal savings working 25 hours per week as a cashier, Ramsey told her she needs a new job.
“The job you have sucks,” he said bluntly.
He advised the woman to take inventory of her skillset and try to get a job that might pay $25-$30 per hour. Alternately, he said she might consider becoming an entrepreneur to gain control of her work life.
If this doesn’t sound reasonable for you, a Ramsey Solutions blog post offers several other ideas that could help increase your income. Some of these include getting a side hustle, asking for a raise, working overtime and checking your tax withholdings.
More From GOBankingRates
