Best-selling author and personal finance expert Dave Ramsey has been on a mission to help people transform their relationship with money and get out of debt. With his highly successful book, “The Total Money Makeover”, his popular radio program and podcast “The Ramsey Show”, and his company Ramsey Solutions, he aims to equip people with the tools and resources necessary to take control of their finances. 

Ramsey’s advice can be especially helpful to people in their 50’s as they prepare a roadmap towards a financially stable retirement.  Dave Ramsey is known for his “straight-shooting” advice, holding nothing back, and calling out any bad financial behaviors that could lead people to financial ruin. He offers clear and actionable advice on how to get back on track. 

People in their 50s have a lot to think about when it comes to their financial future. To begin with, if their ultimate goal is to retire within a reasonable amount of time, then they only have about 10 to 15 years left to work and earn the money to make it happen. Furthermore, if they still carry debt, this is definitely something that should be eliminated as the window of earning an income will soon draw to a close. 

This popular personal financial guru has plenty of pearls of wisdom to drop, especially for those in their 50s. Read on to find out the eight Dave Ramsey quotes that every 50 year old needs to hear. 

1. “We buy things we don’t need with money we don’t have to impress people we don’t like.”

Why This is Relevant:

• The importance of staying in your own financial lane.
• Encourages conscientious spending
• Financial security over material possessions

Practice Conscientious Spending

Although this might be an issue that people in their 50s are less likely to struggle with, as the need for external validation lessens, this quote is still a necessary reminder that seeking approval through possessions is an empty pursuit. This is a valuable opportunity for people in their 50s to reflect on how their past spending has impacted their current financial situation. Going forward, purchases should be scrutinized based on needs versus wants and to also determine how current spending habits are impacting their ability to save for future retirement. Financial security should be prioritized over amassing material possessions. 

2. “If you will live like no one else, later you can live like no one else.”

Why This is Relevant:

• Keeping up with the Joneses is futile.
• Sacrifice now, to reap the rewards later.
• Financial freedom requires discipline.

Don’t Follow The Herd

Ramsey is pretty adamant about not following the herd, but to chart your own path to financial wealth and stability. This means not trying to replicate what your peers are doing or what society and other social pressures expect. Instead, it’s about delayed gratification. But it begins with having your own financial goals and determining what you want your own life to look like. This will dictate the path and financial decisions you make to help you reach those goals. 

3. “A budget is telling your money where to go instead of wondering where it went.”

Why This is Relevant:

• When it comes to your finances, you are in the driver’s seat.
• If you don’t have a plan, plan to fail.
• A budget is your roadmap to financial freedom.

Money Is Not Infinite

For many, the word budget seems to conjure up feelings of anxiety, restriction, boredom, and even stress. Ramsey says it should not be that way. On one of his podcasts, Ramsey says that a budget, “Is not a straitjacket. It’s you, telling you, what to do.” It’s more of a “guardrail” to keep you from running off the road. It’s not a punishment but a reminder of what the ultimate financial goal is and sticking to that plan. At the end of the day, Ramsey says that money is not infinite. It’s important to acknowledge that everyone has a limit on everything. A budget is simply a visual reminder of that fact. 

4. “Act your wage.”

Why This is Relevant:

• Live within your means
• Avoid debt
• Prioritize your financial security.

Spend Less Than You Earn

 

Spending less than you earn may seem like common sense, but if our current consumer debt levels in the U.S. are any indication, this is not being played out in most households. As 50 year olds are nearing retirement age, they are going to have less time to recover from their financial mistakes. Therefore, time is of the essence. It’s important to not incur any additional, unnecessary debt, which will only prolong the need to remain employed, pushing your retirement age further away. 

5.  “”We are scaling down’ is a painful statement to make to friends or family.”

Why This is Relevant:

• Requires drastic lifestyle changes.
• Letting go of non-essentials.
• Perceived loss of status.

Be Prepared to Sacrifice

There is no question that making changes can be hard. Especially when it comes to anything that will impact our standard of living. Everyone has their own concept of what a comfortable living looks like. However, if the current lifestyle is being sustained by debt, a change in mindset and spending habits is in order to reach any retirement goal. The journey to financial freedom and stability is not without making both changes and sacrifices. This can mean selling a car that is not necessary, selling a home to downsize to a smaller one, or cutting back on going out to eat and entertainment. Depending on one’s social circle and/or family, announcing these changes can invite criticism, but financial freedom means taking a stand for what’s truly important. 

6. “If You Don’t Know How Money Works . . . What Future Is There in Working for Money?”

Why This is Relevant:

• The importance of financial literacy
• Money is not just for spending.
• Let money work for you.

Financial Knowledge is Power

Much has been said about the lack of financial literacy in public schools and in the halls of higher education, leaving many young people to get entrapped by debt well into their adulthood. Therefore, it is of utmost importance to get educated on financial matters. Our knowledge of money should not be limited to simply earning and spending. Moreover, regardless of age, people who are not well-versed on financial matters should seek the knowledge on how to create a budget and how to invest their money so that it can essentially “work” for them. Money invested wisely can mean these funds can grow and not remain stagnant  in a bank account. Ultimately, increasing your financial education will empower you to make better financial decision, save for goals, and avoid financial disasters. 

7. “Dreaming also has a negative connotation as well. Some people dream and stop there. They never do anything about making their dreams come true.”

Why This is Relevant:

• It’s never too late to pursue your dreams.
• With age comes experience to make things happen.
• The key is to take action

The Time To Take Action is Now

Although it has been said that it’s never too late to become what you might have been, when it comes to finances, time does become more significant. Therefore, take action sooner rather than later.  Knowing that one must consider the time they have left to make things happen, it is vital that they use their wealth of experience and maturity that they bring to the table. This enables them to make more thoughtful and strategic decisions. This will help minimize any potential errors. Furthermore, this stage in life has invariably brought different life circumstances that could impact the original dreams they had in their youth. Making the appropriate adjustments after they re-evalutate their goals means they are likely to make it happen. 

8. “I believe that through knowledge and discipline, financial peace is possible for all of us.”

Why This is Relevant:

• There’s still time
• Knowledge and discipline is still attainable
• This effort will reduce stress and enable them to enjoy their retirement years. 

Financial Peace is Attainable

Despite of what most 50 year olds think, their current age is not an impediment to course-correct from financial mistakes. There is still time to get the knowledge they need to make the right choices. Once they have acquired that knowledge, it will take formulating a plan and the discipline to follow through until this plan is fulfilled. By learning on how to build a better retirement, 50 year olds can look forward to the rewards of more time to spend as they please, whether it be traveling, pursuing a hobby, or spending more time with friends and family. There is so much to gain when these are the end goals. 

To learn more about setting yourself up for a financially stable retirement, take a look a this article about optimizing your 401K. 

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