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Dave Ramsey Blasts 9 Money Mistakes That Can Wreck You After 50

These common financial blunders can undermine your plans for a financially secure retirement.

By Chris Kissell

Edited by Lisa Dammeyer

Updated Feb. 21, 2026

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It's not difficult to build wealth and prepare for retirement if you consistently save and invest your money well. But too often, too many of us make errors that cause us to stumble on the way to financial independence.

Financial guru Dave Ramsey regularly urges his followers to steer clear of money mistakes that can wreck you after 50 — or at any age. Avoid these money-wasting habits if you want a secure and prosperous retirement.

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Failing to create a detailed budget

Ramsey believes in budgets. In fact, he says that once you have crafted this plan for your money, "You don't spend anything except what's written down without coming back and adjusting the budget."

If you have reached the age of 50 and still find yourself unable to save, a lack of budgeting may be the source of your problem. Ramsey says everyone must have a written plan, adding that there is "no exception" to this rule.

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Waiting too long to begin saving

The longer you wait to save, the harder it is to build a decent-sized nest egg. By the time you reach 50, there is little runway left before your golden years begin. That doesn't mean the situation is hopeless. But if your money pile is small, now is the time to get serious about saving.

Ramsey Solutions recommends setting up direct deposit so a bit of each paycheck goes directly into savings. As the company says on its website, "That way, you don't have to put in a lot of effort to save money — you can just sit back and watch that savings grow!"

Retiring with debt

Ramsey famously despises debt. He has been quoted as saying, "Debt is not a tool; it is a method to make banks wealthy, not you."

Federal Reserve data shows that between 1992 and 2022, debt surged among older folks, quadrupling for those between the ages of 65 and 74.

Carrying debt into retirement can seriously compromise your ability to avoid running out of money before you run out of life. So, try to pay off most or all debt before you leave the workforce.

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Creating new debt by overusing credit cards

Credit card debt arguably is the biggest source of damage to the bottom lines of people 50 and older. The high interest rates attached to credit cards mean that with each passing month, you continue to dig a deeper debt hole. Eventually, it can be difficult to climb your way out.

Ramsey is a multimillionaire, yet he still refuses to hold any credit cards. He has described credit card companies as the "cigarette of the financial world."

Even if you don't take an approach as extreme as Ramsey's, avoiding credit card debt by paying off your balance each month is one of the smartest ways to shore up your finances after age 50.

Investing in timeshares

After the age of 50, empty-nesters and retirees may fulfill long-delayed dreams of traveling to new places. You might even be tempted to enter into a timeshare agreement.

But Ramsey is no fan of timeshares. The Ramsey Solutions website says the typical timeshare "has money trap written all over it," noting that timeshares can be very difficult to sell.

If you plan to buy a timeshare, "you might as well chuck your money in a trash can," according to Ramsey Solutions. When traveling after age 50, stick to more traditional vacation plans.

Tapping into home equity

If you are 50 or older and have owned a home for a while, chances are good that you are sitting on a large amount of equity. It can be tempting to borrow against your home when money is tight or when you simply want to spend on some fun.

But Ramsey Solutions reminds you that if you fall behind on your home equity payments, you put your home at risk. Living within your means is far safer than taking that gamble.

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Playing the lottery

Many of us dream of winning the lottery. But those fantasies can quickly turn into a financial nightmare if you regularly spend money on what is almost certainly a fruitless attempt to get rich quickly.

As the Ramsey Solutions website points out, the odds of winning a big lottery jackpot are "slim to none." Instead of throwing away your dollars, redirect them into a 401(k) account or other retirement vehicle.

Trying to keep up with the Joneses

The hard truth is that many of us spend our lives trying to impress family and friends. Maybe we hope to humbly brag about our new McMansion or flashy sports car.

Trying to keep up with the Joneses is foolish at any age, and it can be financially fatal if you are trying to build a nest egg or are retired and no longer drawing a steady paycheck.

If you want to stay wealthy after 50, rein in your spending. As Ramsey has said, "No one accidentally wins at anything. You have to pay a price to win, and you don't win if you don't pay a price."

Thinking Social Security will bail you out

Some people who are in their 50s and 60s believe that Social Security benefits will bail them out if they haven't saved enough for retirement. But the Social Security Administration flatly states that the nation's retirement program was never intended to be the sole source of anyone's retirement income.

Ramsey has echoed this sentiment, stating, "No matter how you slice it, that's not a lot to live on." Don't expect Uncle Sam to save you. Instead, start saving today.

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Bottom line

Once you turn 50, money mistakes can have a bigger impact on your long-term financial future because there is less time to recover from such errors.

Avoiding the mistakes on this list should help you eliminate some money stress and keep you on the path to a financially secure retirement.

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