Ramsey Everyday Millionaires
Episode: How Do I Get Caught Up On Retirement?
Release Date: June 11, 2025
In this insightful episode of Ramsey Everyday Millionaires, the Ramsey Network hosts—including Dave Ramsey, Ken Coleman, Rachel Cruze, George Kamel, Jade Warshaw, and Dr. John Delony—delve into the challenges and strategies surrounding catching up on retirement savings amidst significant debt. The episode features a detailed consultation with Becky from Louisville, Kentucky, who seeks guidance on managing her finances to secure a stable retirement.
Guest Introduction: Becky's Financial Situation
The episode begins with Dave Ramsey introducing Becky, a 47-year-old entrepreneur facing $47,000 in debt. Becky shares her concerns about balancing debt repayment with retirement planning:
[00:18] Becky: "I am 47, and I was wondering how to get caught up on retirement with $47,000 worth of debt."
Dave promptly summarizes her situation:
[00:34] Dave Ramsey: "You're 47 and $47,000 of debt."
Detailed Debt and Income Analysis
Becky provides a breakdown of her debts and income, highlighting the various sources of her financial obligations:
[01:12] Becky: "It's mostly like back taxes, and we have three credit cards."
She elaborates further:
- Local Department of Revenue: $25,001
- IRS Debt: $15,000
- SBA Loans: $13,000
Regarding income, Becky and her husband operate a cleaning business, earning approximately $6,685 monthly after taxes:
[00:48] Becky: "We make about $6,685 a month as after tax."
Debt Repayment Strategy: Prioritizing Tax Debt
Dave Ramsey advises Becky to prioritize her debts using the debt snowball method, emphasizing the urgency of addressing tax-related debts first:
[01:44] Dave Ramsey: "In this case, you know, we always say that IRS debt or tax debt jumps straight to the top of the list. So, I mean, that's the case for you. I would start off with that IRS debt, the $15,000, and work through that, and then I would go to the DOR debt and then the SBA loan will probably be final."
Exploring Income Enhancement Opportunities
With Becky and her husband working 60 hours a week to generate a combined annual income of $70,000, the hosts explore avenues to increase their earnings:
[02:46] Jade: "Are you guys working 40 hours?"
Becky clarifies:
[02:50] Becky: "Oh, plus. Yeah, it's usually about 60 hours a week, 60 hours."
Jade and Dave propose strategies to boost income without exacerbating their workload:
-
Raising Fees: Evaluating and increasing service prices to match inflation and added value.
[06:27] Jade: "Am I charging enough too? We do find that a lot in small businesses that, you know, that demand is there."
-
Expanding Services: Offering premium services that don't significantly increase time commitments but allow for higher charges.
[04:00] Dave Ramsey: "You can look for premiums that you can add that don't necessarily take a lot more of your time, but it gives you a reason to increase your price."
-
Scaling the Business: Bringing on additional staff or leveraging side hustles to handle more clients and increase revenue.
[04:49] Becky: "We do have a big job coming up that's going to give us about $30,000 from the job."
Dave emphasizes the importance of leveraging new opportunities for business growth:
[03:42] Dave Ramsey: "What would it look like to add more and bring other people to help you?"
Strategic Financial Planning: Debt First, Then Retirement
The hosts reiterate the foundational Ramsey philosophy: eliminate debt before aggressively saving for retirement. Jade underscores this priority, advising Becky to focus on debt reduction as the primary financial goal:
[04:34] Jade: "Cutting expenses and upping income is what it comes down to. So before even doing anything into retirement, paying off this $47,000 in debt, like, that's. That's number one goal."
Becky mentions an upcoming significant job that could inject $30,000 into her finances. Dave recommends allocating this windfall entirely towards debt repayment, after accounting for any tax obligations:
[05:33] Dave Ramsey: "Use all of it towards the debt, but pay taxes on it first so that you don't land yourself in this."
Maximizing Business Value and Efficiency
Jade encourages Becky to evaluate the value of her time and the adequacy of her pricing strategy, suggesting that the current workload may not be yielding optimal financial returns:
[06:27] Jade: "What is my time worth? And am I charging enough too?"
Dave supports this perspective, advising Becky to test higher prices with select clients to better reflect the value of her services:
[06:42] Dave Ramsey: "At the very least, test it. You know, take a couple of your clients and get to that number that you think. And I think you'll be surprised at what people will pay for."
Conclusion: Path to Financial Stability and Retirement
The episode concludes with a consensus on prioritizing debt elimination to pave the way for future retirement savings. By implementing the recommended strategies—prioritizing high-interest debts, increasing income through business enhancements, and reassessing pricing models—Becky and her husband can work towards financial stability and eventually secure their retirement goals.
Throughout the discussion, the Ramsey Network emphasizes disciplined financial management, creative income strategies, and the importance of valuing one's time to build and maintain wealth effectively.
Notable Quotes:
- Dave Ramsey [00:36]: "You're 47 and $47,000 of debt."
- Jade [04:34]: "Cutting expenses and upping income is what it comes down to."
- Becky [05:33]: "We do have a big job coming up that's going to give us about $30,000."
- Jade [06:27]: "What is my time worth? And am I charging enough too?"
- Dave Ramsey [06:42]: "At the very least, test it. You know, take a couple of your clients and get to that number that you think."
This episode serves as a practical guide for listeners grappling with debt while aiming to secure their financial futures, embodying the Ramsey Network's mission to help ordinary people build extraordinary wealth through disciplined and responsible financial practices.