My ‘poor mindset’ got me into $50k worth of debt – but Dave Ramsey says my side hustle will save me from losing it all

A 34-YEAR-OLD homeowner recently shared his debt situation with a pair of financial advice podcasters.

The Floridian said he bought a house a few years ago, and his payments were causing him problems.

“I find myself very much in a poor mindset,” the man, Danny, told hosts of The Ramsey Show, which often features finance guru Dave Ramsey.

Danny admitted he was $50,000 in debt speaking with hosts Greg Kamel and John Delony.

The pair of co-hosts sought to help him out of debt using Ramsey’s methods.

THE SITUATION

Danny bought his home for his wife and two kids four years ago, taking on a mortgage payment of $2,700 a month.

He figured that would not be a problem, as he makes $88,000 a year.

However, he also owed money on two vehicles — now about $15,000 each.

The high expenses caused him to get behind on his payments.

Add some home improvements, and he’s $50,000 in the hole.

“You sound like a guy who just got punched in the face,” Kamel said. “You just seem just tired.”

Danny asked if he should sell his house to pay off the debt, but Kamel said that was a last resort.

Kamel urged him instead to sell one of the vehicles and live off one car.

He said that next Danny should get a side hustle going and direct all his spare cash towards his debt.

He suggested that Danny only look at selling the house if he’s at risk of being evicted.

By eliminating the smallest debts first, Kamel suggested Danny could slowly make a difference in his life.

DEBT ADVICE

The Ramsey Show frequently advises retirees on how to make the most of their golden years.

A couple, 69 and 70 years old, recently called into the show for help.

The pair only had $140,000 in savings, and Ramsey offered tips to make it last.

But some callers are in even more desperate situations.

One 70 year old recently called in and shared that they had no savings, causing stress.

Ramsey said their car was the solution.

Another financial advice influencer shared a $25 solution to start saving.

Even someone with a 7-figure savings account could run out of cash if they’re not careful.

Where to save your retirement money

There are several different places where you can put the money you save for retirement. Each has different tax advantages, but not all of them are available to everyone.

401(k) - an employer-sponsored retirement account. Contributions are made pre-tax and many employers will match a certain percentage of your contributions. Taxes are paid when the funds are withdrawn in retirement.

Roth IRA - an individual retirement account. Contributions are made post-tax but withdrawals in retirement are not taxed.

TSP (thrift savings plan) - a retirement savings and investment plan for Federal employees and members of the uniformed services. They work similarly to 401(k)s but may have more limited investment options.

Pension - an employee benefit that commits the employer to make payments to the employee in retirement. Pensions are becoming increasingly rare.