Dave Ramsey is known for his simple approach to personal finance. He often says, “beans and rice, rice and beans,” to tell people to cut their expenses. But some people take this literally and miss the real point. Let's clarify what Ramsey means when he says to live on “beans and rice.”
Don't Miss:
- Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
- Many are using this retirement income calculator to check if they’re on pace — here’s a breakdown on what’s behind this formula.
- CD Popularity Soars: Over 50 Million Americans Embrace Safe Savings with 5–10% Annual Growth
His mantra isn’t actually telling people to eat only beans and rice. It’s a way of saying that you need to budget tightly and make sacrifices for a while. To pay off debt and move toward financial independence, he encourages people to spend as little as possible, as the goal is to save more money for future goals by reducing their spending to what is really essential.
Take, for example, Lisa from Waco, TX, who called into “The Ramsey Show.” At 53, she and her husband hoped to retire soon, but they didn’t have enough saved. Ramsey said her husband couldn't retire yet and Lisa needed to keep paying off debts before worrying about retirement savings.
See Also: The global games market is projected to generate $272B by the end of the year — for $0.55/share, this VC-backed startup with a 7M+ userbase gives investors easy access to this asset market.
She disclosed that, after having paid off $47,000 on 16 credit cards in 13 months, they still owed $32,000 in college loans, $21,000 on their property and $17,000 on a car.
Ramsey’s “beans and rice” suggestion to her was to temporarily eliminate all wasteful spending to further improve their financial status before retirement.
Another example is the case of a 29-year-old caller from Washington, D.C., who owes nearly $1 million. Ramsey’s advice was to make significant adjustments to align her expenditures with her realities. He told her she needed to change her lifestyle a lot – like selling things she didn’t need and driving a cheaper car – if she wanted to deal with her big debt. Again, this wasn’t about just what food they ate; it was about making serious changes to get back on track and learn to live within their means.
Trending: I’m 62 Years Old And Have $1.2 Million Saved. Is This Enough to Retire Stress-Free?
Some people think Ramsey is harsh, but his advice is meant to help people take control. Living off “beans and rice” means making short-term sacrifices to achieve long-term prosperity. The objective is to make sacrifices today to become financially independent later, even if nobody wants to drive an outdated car or permanently give up luxury.
In the end, it’s not just about beans and rice. It's about deciding what matters most and going after it with everything you have. Whether it’s retiring comfortably or paying off a big debt, it all starts with cutting back, digging in and staying committed to your goals.
Read Next:
- Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.
- The average American couple has saved this much money for retirement — How do you compare?
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
