61-Year-Old 'Country Girl' Has No Money But Owns a $26K Tractor for Her Acres of Worthless Land — Dave Ramsey Tells Her to Sell It All. Even the Deer

A 61-year-old Arkansas pistillate called into the "The Ramsey Show" hoping for clarity connected investing successful her 401(k) portion inactive paying disconnected debt. But what started arsenic a elemental enquiry rapidly turned into a world check, tractor and all.

The caller introduced herself arsenic Teresa, a self-described "country girl" with nary nest egg. "I person nary status wealth saved up whatsoever," she told idiosyncratic concern adept Dave Ramsey, though she had started pursuing his Baby Steps program and scraped unneurotic a $1,000 exigency fund.

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With six years near earlier collecting Social Security, Teresa wondered whether contributing to her employer's 4% 401(k) lucifer made sense, contempt inactive being heavy successful debt.

She told Ramsey that she earns astir $67,000 a twelvemonth but owes astir $69,000, which includes $11,000 successful pupil loans she's been chipping distant astatine since 1999, $18,000 connected a car, $12,000 successful a idiosyncratic loan, and $26,000 for a tractor.

That past 1 stopped Ramsey cold. "Why bash you person a tractor?" helium asked.

"We're state folks," Teresa answered. Her husband, who's 75 and connected Social Security, is successful mediocre wellness and doesn't work. She admitted the tractor was much for clearing hunting plots connected their 7 acres — onshore that, arsenic it turns out, is worthy conscionable $500 an acre.

"Your $26,000 tractor for a $4,000 portion of land," Ramsey replied. "Broke radical don't person $26,000 tractors."

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Though Teresa defended the acquisition arsenic thing she bought earlier discovering Ramsey's methods, helium didn't fto it slide. He told her to merchantability it, adjacent if she had to get a fewer 1000 to screen the difference. Sell the car, too. In his words, "You guys are successful exigency mode, girl."

Ramsey took it adjacent further, joking that Teresa needed to merchantability "everything successful sight," and that adjacent the section cervid ought to beryllium nervous. His connection was clear: This wasn't the clip for sentiment, toys, oregon manner luxuries. It was clip to hustle.

Then helium laid retired the bigger picture. If Teresa attacked her indebtedness aggressively, chopped the excess, and freed up cash, determination was inactive clip to physique a coagulated retirement. "You're trading a $26,000 tractor for $150,000 bucks successful your retirement," Ramsey said. "You're trading an $18,000 car for different $100,000."