Dave Ramsey suggests how woman with little savings can get by in retirement | Personal Finance | Finance
On The Ramsey Show – Highlights YouTube Chanel, Cynthia reached out to the American personal finance personality as she did not know what to do. Dave suggested that she take a look at her budget and outgoings so she has a clearer idea of why she feels she doesn’t have enough to save.
She is trying to complete Dave’s ‘Baby Steps’ programme but is finding it hard.
“I don’t know what to do,” she added.
Cynthia makes $76,000 (around £62,000) a year however she told the finance expert she gets $1,900 (around £1,500) each month on her pay check.
“That’s like way of,” Dave added.
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He continued: “That’s $46,000 (around 38,000) a year, you don’t make $76,000 (around £62,000) and have $30,000 in taxes.”
Cynthia explained that she has a lot of outgoings each month.
This includes things such as her taxes, pension, disability payment, and health insurance.
He stressed that $46,000 (around 38,000) is not take home pay from $76,000 (around £62,000) after taxes and outgoings.
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He wanted Cynthia to have access to one of his financial advisors and coaches so that they could figure out where her money was going each month.
Her outgoings did not account for the $30,000 (around £25,000) that seem to be missing from what she takes home, and the amount that she makes.
Dave said: “The numbers aren’t adding up and you really need to get to the bottom of this.
“You need to find out where your money is going because I can’t find it in the conversation.
“Someone making $76,000(around £62,000) should be able to save a lot more than $400 (around £328) each month when you don’t have debt anymore.”
Dave explained that each person should have three to six months worth of expenses saved.
Cynthia said her expenses were $9,300 (around $7,800) so with a $76,000 (around £62,000) salary it should take her maximum nine months to save it.
Dave said that if she can find the missing money and start saving more, she will be okay but he needs to see the full picture.
