Smart financial decisions made during one’s working years can have a profound impact on retirement savings.
Dave Ramsey, a well-known advocate for financial discipline, emphasizes the importance of living within one’s means and making strategic purchasing choices — including shopping at stores such as Costco.
By adhering to Ramsey’s principles of budgeting and avoiding unnecessary spending, Americans can maximize their savings potential and strive toward building a secure retirement future.
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Every dollar saved can be invested in 401(k) plans and IRAs (Individual Retirement Accounts) — so it all counts and is very important.
One of Ramsey’s core beliefs is that small, consistent savings over time can compound into substantial wealth. He warns against impulse purchases and encourages consumers to be intentional with every dollar spent.
While Costco offers bulk discounts and high-quality products, shopping there requires discipline to avoid stocking up on unnecessary items.
Ramsey advises against purchasing perishable goods in bulk unless they can be used efficiently, cautioning against wasting money on items that may expire before they’re fully utilized. Instead, he recommends focusing on staple items such as toiletries, batteries, and canned goods, which can provide genuine long-term savings.
By adopting a mindset of frugality and making thoughtful spending decisions, workers can allocate more funds toward retirement investments rather than unnecessary purchases.
Eliminating debt, maintaining a realistic budget, and prioritizing savings can transform a modest income into a comfortable retirement.
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Dave Ramsey speaks with TheStreet about personal finance issues. The personal finance author discusses buying in bulk from stores such as Costco, while noting that retirement savings are in large part about making smart spending decisions during working years..
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Dave Ramsey offers advice on Costco and bulk-buying
To save money when shopping at Costco and other stores in the interest of contributing more to 401(k) plans and IRAs, Ramsey has some specific and carefully worded advice.
“There are two heavy hitters in the wholesale world,” Ramsey wrote. “Costco and Sam’s Club. Both stores are pretty similar when it comes down to what they sell. If you want to buy a 10-pound bag of cubed cheese, this is where you’ll find it!”
Ramsey continues.
“While it might be tempting to grab that 80-ounce jar of mustard, ask yourself, Am I really going to eat that?” he asks. “You don’t want to buy in bulk just to end up with the ‘bulk’ of it in the trash. Stick to buying things you know you or your family will eat or use.”
“And when you’re comparing prices, you’ll need to pay attention to the overall cost (to make sure you don’t go over budget) and figure out your cost per unit,” Ramsey added.
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When a person saves that money, they have more to contribute to their retirement savings.
Related: Dave Ramsey sends strong message to Americans on 401(k)s
Dave Ramsey offers advice on 401(k) plans and IRAs
In general, workers in the U.S. understand the significance of retirement savings options such as 401(k) plans and IRAs, even during times of economic uncertainty.
“If your company offers a match on your contributions, take advantage of it,” Ramsey wrote. “Invest enough to get the full amount — it’s free money! Don’t leave it on the table.”
Enrolling in a 401(k) plan offered by an employer is a dependable way to grow retirement funds, particularly when companies provide matching contributions.
Because contributions are automatically deducted from each paycheck, this strategy ensures steady savings without requiring ongoing effort, making it both practical and effective.
For 2025, the maximum contribution limit for 401(k) plans has increased to $23,500, up from $23,000 the previous year. Additionally, workers aged 60 to 63 can now take advantage of higher catch-up contributions, with a new limit of $11,250 — an increase from $7,500 for individuals aged 50 to 59.
An IRA provides access to investment opportunities that may not be available through a 401(k), making it an appealing choice for some.
However, IRAs often demand more active participation, as individuals must set up the account and arrange automatic contributions themselves. This extra level of responsibility could lead some to overlook its potential benefits.
For 2025, IRA contribution limits remain at $7,000, with an additional $1,000 in catch-up contributions available to those aged 50 and above.
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