70-Year-Old With $0 Saved For Retirement Still Works Physically Demanding Job — Dave Ramsey Says: 'Eating Out Is Causing You to Clean Toilets'

A 70-year-old woman called into The Ramsey Show with a financial situation that had her feeling completely overwhelmed. 

"I have no retirement. My husband and I—neither one have a retirement," she admitted. This couple's situation is especially alarming when compared to national averages. According to data from the Federal Reserve's most recent Survey of Consumer Finances, the average 65- to 74-year-old has a little over $426,000 saved in retirement accounts, including 401(k) plans and IRAs. 

Despite owning a home worth about $250,000, they still owed $27,000 on it, had $25,000 in cash savings, and carried a $1,000 debt on a car. Her husband wanted to use their savings to pay off the car and apply the freed-up payment toward the house, but she wasn't sure if that was the right move.

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Adding to the financial strain, they only had a combined Social Security income of $2,000 a month. She worked cleaning houses, bringing in an extra $2,000, but the work was physically demanding. Her husband had occasional part-time income, but nothing reliable. "I'm able to do it now, but I don't know how long I'll be able to," she said.

Then came a revelation—three vehicles. They had a paid-off, reliable old pickup, the car with debt, and an old roadster worth about $10,000. 

Ramsey's response was immediate: "I'm sorry, but the roadster is gone." He explained that selling it would be a crucial first step, allowing them to pay off the car and free up money to tackle their mortgage. "We can leave $15,000 in your emergency fund, put $10,000 towards the house, and then that leaves you $17,000 to go. You guys get in the business of the next 17 months or so getting that house paid off."

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He didn't sugarcoat their reality. "With no debt at all, you can make it. It's not going to be pretty, but you can make it." The caller admitted that they didn't spend much, but they did eat out regularly. Ramsey's response was blunt: "If you want to keep this house, you're going to start living like you're completely bankrupt. You do not have wiggle room here." He pointed out that dining out, even occasionally, was making her work even harder. He told her, "Eating out is causing you to clean toilets."

The real choice, he explained, was between making extreme sacrifices to keep their home or selling it and downsizing. "You've got to clean this mess up," he said. "Otherwise, you're going to end up selling this house and buying a condo for $100,000, and having a $100,000 slush fund to live on." He acknowledged that selling their home might be an emotional decision, but financially, it could be the best option.

Ramsey's advice was clear:

• Sell the roadster.
• Pay off the car and aggressively attack the mortgage.
• Cut out every unnecessary expense—including eating out.
• Both of them need to work as much as their health allows.

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If they couldn't commit to those steps, he advised selling the home and buying something smaller with the equity. "Something has to give. This is not working right now, which is why you feel that tightness in your chest. But you can fix it," he said. 

This situation highlights one of Ramsey's core principles—owning expensive cars while struggling financially is a huge mistake. He has often pointed out that too many people drive vehicles they can't afford. "100% broke people," he calls them. As of early 2025, Bankrate reports the average car payment in the U.S. is $737 a month, a financial burden that keeps many people from ever getting ahead.

Ramsey's message is always the same: true wealth isn't about looking rich—it's about financial stability and freedom. And for this couple, the time for tough decisions was now.

Regardless of your financial situation, consulting a financial advisor can provide clarity and help you make informed decisions about your future. Whether you're struggling to stay afloat or simply looking to optimize your finances, having a clear plan can make all the difference. The key is taking action before it's too late.

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