Antoinette, a 62-year-old truck driver from Fort Worth, Texas, recently called into “The Ramsey Show” with a direct question: “I don’t have anything saved for retirement and I want to become a first-time homeowner. I don’t know if that’s stupid and ridiculous or if it’s possible.”
She’s Not Alone
Millions of Americans are facing retirement with little or no savings, and many are still chasing major life goals like homeownership. For Antoinette, the situation is even more complicated: she’s got about $8,000 in debt, a nearly $1,000 monthly car payment, and no clear idea how much she owes on her recently purchased 2023 minivan.
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Hosts Ken Coleman and Rachel Cruze were direct. “Let's focus on the possible part,” Coleman said. “Given that you have zero retirement or very little retirement.”
Antoinette admitted that she struggles with memory and numbers, saying, “I’m really bad with money. I mean, numbers.” While she does track her bills every other month, she said she wasn't prepared with details. “Had I known you were going to be asking me these questions, I would have had this stuff.”
“You called a money show, my friend,” Cruze fired back and emphasized that the lack of knowledge was the biggest issue: “The excuse that ‘I’m bad with numbers’ can’t be an excuse anymore. You are an adult. You are smart. You are capable. And we have to get this under control.”
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Facing Reality And Making A Plan
Cruze then laid out a precise set of instructions: call the dealership, get the exact loan amount, pull up Credit Karma, list all debts, and take a picture of the list to keep it handy. The message is: no more winging it.
Antoinette earns around $7,500 a month but spends nearly $1,000 on the minivan loan. Coleman had some issues with that fact and asked her, “Why do you need a minivan if you’re driving a truck all the time?” Antoinette had an answer ready: “Because I go home sometimes.”
“You're more than likely going to have to sell the minivan and get a beater $2,000 car,” Cruze told her. “I want you to be out of this debt so that you can start saving for retirement.”
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Antoinette pushed back: “Why would I want a $2,000 beater car that's just going to break down all the time?” Cruze countered with a story of another truck driver, Christopher, who did just that. He ended up buying a $2,000 car and it “runs great.”
They also encouraged her to check if her employer offers a 401(k) or retirement plan. Antoinette said they do, but she hasn't contributed. “What's the point of that at my age?” she asked.
“Because you have nothing,” Coleman responded bluntly. “If I want to retire with dignity, I've got to start saving money. And I can't save money if I'm in debt.”
The hosts told her that homeownership could still be a goal, but only after stabilizing her financial foundation. In the meantime, Cruze suggested Antoinette listen to the show every day for the next six months. “I want this knowledge to soak in,” she said.
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