‘You’re going to live on beans and rice’: A 73-year-old Arizona woman told Dave Ramsey she has student loans and no savings — 4 retirement catch-up tactics to get you back on track

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In a recent call on an episode of The Ramsey Show, a 73-year old Arizona resident named Robin shared that she has no 401(k) or mutual funds and more than $12,000 in outstanding student loan debt — but is considering a home purchase within the next three years.

Host Dave Ramsey then asks, “How would you be able to buy [a house] if you don’t have any money?” Robin says she expects to pay off the student loan by March of next year and is setting aside a modest amount for a down payment every month.

Ramsey suggests she cash in her insurance policy, pay down her student loan faster and maximize her down payment savings right afterward. “Basically, you’re going to live on beans and rice for the next three years.”

Robin isn’t alone. Nearly half of baby boomers (42%) have little to no retirement savings to rely on as they get older, according to U.S. Census data from 2020. If you’re concerned about being in that situation, consider these four ways to boost your retirement savings on short notice.

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"Live on beans and rice"

When Ramsey suggests Robin “live on beans and rice” he doesn’t mean it quite so literally, but rather that living a frugal lifestyle and cutting spending where you can can help you boost your savings. So skip the steakhouse dinner and make some pasta at home.

While spending money is inevitable no matter how frugal you are, using a tool like Acorns* — an automated savings and investment app — can make the most out of your spending.

When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio.* This way, even the most essential spending translates to money saved for the future.

Living frugally doesn’t have to mean eliminating “want” purchases either. But you do need to spend smart when you’re spending — that means optimizing your savings and avoiding debt.

While finding credit cards with enticing rewards rates is commonplace, it's not as common for checking accounts. With a Rewards Checking Plus account from Upgrade, you can earn up to 2% cash back.*

With no monthly fees or minimum balance*, you can spend on your needs — and maybe even a few wants — without getting yourself into debt. All the while, you’ll earn some solid cash back to put towards your nest egg.

If you really want to amp up your retirement savings, a high yield savings account* can help you do just that, offering much more competitive returns than the national average of 0.4% APY.

For a streamlined look at which high-yield savings account is best for you, you can check out our guide to the Best High-Yield Savings Accounts of 2024* to see which option is right for your savings to grow.

Read more: Thanks to Jeff Bezos, you can now cash in on prime real estate — without the headache of being a landlord. Here's how

Tap into home equity

You don’t need to sell your home to realize its value. A home equity line of credit or HELOC could increase your cash flow. If the interest rate on this credit line is attractive, you could use it to pay off debt and reduce long-term expenses.

You could also get a cash-out refinance loan from Rocket Mortgage.* Since a HELOC is considered riskier due to variable interest rates, meaning you may pay more over the lifetime of a loan, a cash-out refinance might be the best option.

A cash-out refinance* is a form of mortgage refinancing that lets you borrow a larger mortgage than you currently have in exchange for access to your home’s equity — aka what you’ve already paid off of your home’s value.

With Rocket Mortgage, it takes just three minutes to get a credit approval* and brings you one step closer to finding the best cash-out refinance loan for you.

Tap into insurance

Home insurance policies allow you to cash out a certain amount before maturity. If a policy is no longer needed, consider this option to boost your retirement savings — but only as a last resort.

Consult your tax professional or financial adviser* before pulling the trigger.

WiserAdvisor* — an online platform connecting you to vetted financial advisors— is a great option to explore to find the best financial advisor for you.

After filling in some information about yourself and your finances, WiserAdvisor matches you with two to three FINRA/SEC registered financial advisers* best suited to help you with your financial goals.

Reinvest dividends

You can boost your passive income by reinvesting it for a short period. A Dividend Reinvestment Plan, or DRIP, can allow you to deploy your regular dividends into acquiring more stock. These programs can expand your nest egg considerably.

Implementing the company’s DRIP program could double your capital in nine years, depending on the stock's performance during that time.

If you’re keen on reinvesting dividends, Robinhood* — an automated investing app — might be the way to make the most of your money.

Robinhood allows you to buy fractional shares of an investment and doesn’t charge a commission to trade stocks, options or crypto.

With features like automatic investing, in-app investing guides, and 24/7 access to their customer service team, Robinhood makes it easy to boost your passive income* without worrying about doing it all on your own.

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• Even your credit card interest is accumulating interest as you read this — stop this 'bad compounding' today by paying off your card fast and saving thousands in interest. Here's how

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.