On a video posted on The Ramsey Show – Highlights YouTube channel in 2020, the money saving experts responded to Angie who asked: “What are the steps to catch up saving for retirement at 50 years of age?” She added: “I feel the window to save is closing, but also trying to remain hopeful and focussed. Help!”
Mr Ramsey explained that Angie’s “window is closing”, however if she follows his ‘Baby Steps’ she still has a chance to build wealth.
As long as she can get her emergency fund in place, and pay off any debts, she will have the cash flow to pay more into her retirement.
He said: “If you save 15 percent of your income from age 50 to age 65, and you have an average income, you will be able to retire.
“You might make more than that and you may work longer than that.
READ MORE: Martin Lewis points out ‘forgotten gold’ as woman pays off £3000 debt in 8 months
“Average income entails what a 22-year-old make so typically 50-year-olds have had an opportunity to grow their careers.
“I don’t know what Angie does, but I’m just making a reasonable, statistical assumption that you have an above average income.”
Mr Hogan also reassured Angie “it is never too late” as long as she has a dream, and is aware of what she is chasing, and why it is important to her.
As long as she has “air in her lungs”, she has an opportunity to start saving.
He said: “You have to have a plan, get on a budget, get allergic to debt and sell some stuff or look at taking on a second job if you have to.
“Delete the unnecessary from your life so you can grab what’s valuable. You may have to look at downgrading lifestyle.
“But if you do those things, you will grab back control.”
To successfully catch up, it’s important for those in their 50s to treat their situation like “the house is burning down”.
The money savings experts urge people in this situation to proceed with a sense of “urgency”.
The quicker one can get out of debt, the quicker they can take control of their income and build their wealth.
The advice Mr Hogan gave was: “Be allergic to excuses. Don’t make excuses, make plays.”
He suggested when people make excuses and are not focussed on their plans, they can end up wasting precious years.
He urged viewers: “Never wait until this, or wait until that.
“Be urgent where you are right now.
“Don’t make excuses for stupid.”
Mr Ramsey concluded: “That dogged intensity and dogged determination that pushes through in spite of the obstacles is the one that crosses the finish line and busts the tape. That’s you, you can do this.”