We Make $190,000/Year and We Live Paycheck to Paycheck!
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- Опубликовано: 11 сен 2024
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People say that the system is broken but if you make 190,000 and you can't pay your bills that is a you thing.
Definitely
No question about that.
Anyone ever hear of living within your means?
How is that "the system's" fault? And which system?
How is it not the person's choices and actions to be blamed?
@@nikkisigmon8090 he's just bad with money, no other explanation.
As a single dad with 3 kids, when I heard $3000 a month for FOOD alone, I was floored. That’s 75% of my take home pay right now. Y’all are eating good in the neighborhood
I spend about 2k on taking my wife and kids to eat and drinks. Lol I take home 9500 a month
Yeah, that $3k spent on eating out is beyond insane.
@@youtubesurfer1022 LOL? I also take home about $9500/mo. After tax, insurance and retirement. I don't spend $500 eating out a month. I make bread, ice cream, butter, have a garden... Your income does NOT justify behavior.
@@bradleygraves5915 how does income not justify behavior. U can't say that about the poor. Or rich. Just the middle class.
@@bradleygraves5915 Yeah that's a lot of money for food on a family of 3 lol. I spend $750 for a family of 3 lol. Only time it goes to $1000 is if I go to dinner for a special occasion.
Eating out is not grocery money, it's eating out money. You need to keep the two things separate in the budget.
They car is only12k. With 3 kids, I would not sell it. They don't have an income problem, they have a spending problem.
Same thought. Selling that car doesn't make a lot of sense (unless the vehicle can be sold for $60k or more and they can buy something for $20-25k). I think they just pay off the $12k and drive the vehicle until it can't be driven any more.
He’s illiterate
You are exactly right, but it doesn't qualify as an official Ramsey radio call if it doesn't include the line "sell the car"
That was crazy when I heard them say sell the car. Specially when they'd have it paid off in a few months if they're take putting 2500 into it each month. Absolutely wild advice.
@@LuperSamebut still had tiny student loan they put in forbearance 😂 definate spending issue they be grand in a year if they cut food spend from 3k to like half
I have a hard time feeling Sorry for someone that makes 190k and is living pay check to pay check
Me too 🤣
You’re not supposed to feel sorry the show is for teaching
In California, 190k is like minimum wage everywhere else
me too. This video made me cringe
@@inspiradorupees3029 No it's not lol. We make less than that in an expensive part of NY state and we have a paid off car, 529 going for our son, and a mortgage well under half our net income.
Holy crap. How does a family that makes $190,000 a year only have $1,000 in the bank as an emergency fund?!?! Crazy. That would give me so much anxiety.
First world problems...🙄
I do a little work with a food pantry. This family is just showing that they are not good stewards of their money. They need to go to their local pantry and look at the empty shelves.
yikes when I made 14.00 per hour I had an emergency fund of $30,000 dollars
Yikes……huge red flag. Spending has been out of control for years with this couple.
I'm an accountant and I have a strict budget. However, I'm blowing through 190k a year.😂😂😂
😂😂😂😂 He is the worst accountant lol
A lawyer who represents himself has a fool for a client.
He said a detailed budget. Not a strict one. With your verbal comprehension you must be a teacher. I'm joking cuz he's an accountant that's bad at budgeting. ;)
Kinda get's ya all teary eyed....
Accountants are good at creating budgets. Doesn’t mean we’re good at following them lol. Especially when you have a family. I’m an accountant I know. He’s gotta fix the behavioral side and be on a plan and stick to it.
“Miscellaneous items” should not be in your vocabulary if you’re $220,000 in debt
Line item on the income statement, Misc. Expense bro lol
My CPA said, she had seen many of her clients made 500k /year but when the tax came to due they didn't have enough money to pay for that. Doesn't matter how much you made but it depend on how much you spend.
Good to know, I gotta increase my salary by 300k a year but still good to know.
A friend owns a luxury car dealership that's surrounded by million dollar homes. He says the people in those homes make incomes of $300k+ and can't even come up with $6k down payments for their cars! Many end up leasing because they can't afford to purchase the luxury cars. Unbelievable.
Should've told them they only made 300k
I have a friend with half the household income as my wife and I and he and his wife drive 60-100k cars and live in a house that costs 2.5x times my house. I suspect that he lives pretty much paycheck to paycheck 😂 while we are saving and investing about 50% of our take home pay
@@Matys1975there is no point in saving 50% of your take home pay.
Why?
You plan to retire early? What will do for medical insurance?
There are two sides to the extremes.
This is a DISCIPLINE problem. Anyone can set a budget. The payoff comes when one sticks to it.
They've been completely irresponsible. With that income, they should never need a car loan and should have no debt except the mortgage.
What you notice with the majority of people, not all, but the majority is lifestyle creep. Just a recent caller called that made around what these guys make yet had 80K in cars, a rental, their mortgage, credit cards, student loans, a camper, you name it. Like, I mean, 170K-190K is a lot of money, but it really isn't when you have close to 700 or 800K in debt. Some people can't fathom that making 190K. You really shouldn't be buying a car over 30K-40K. People would think they could afford a 90K car at that point.
I am this person. I make more, and I'm living month to month, but I am aggressively budgeting to nuke ridiculous 55k in debt. Sometimes I go over because I am simply irresponsible. Wife isn't working at all. If she worked for half a year, our debt would vanish.
Neither should anyone making over $39k BUT here we are.
Lifestyle creep is a very real phenomenon not just a buzzword. I fell into that trap for years and it was only after I started actually focusing on my expenses that I realized what was happening. You just tell yourself "I can afford it" and don't think about it until you realize you have nothing left at the end of the month.
They lack discipline and don't care obviously
$3000 a month on food? Holy cow. We are a family of four and spend $500 a month on food. He pays $30,000 more a year on food than my family.
We’re on $800 a month for a family of 6 and I think we eat pretty well
@@alqoshgirl Family of 3,
$110 at Red Lobster
My food budget is $200 a month with no eating out.
Yup family of 3 here, we eat on 500 dollars a month
Probably, he eats outside most of the time. Most Americans don't eat at home. They spend more money in restaurants, bar, shopping, coffee shops, groceries, etc. Etc.
It is gone, we lived through the zenith of our time.The corrupt government will take down this country like what happened to Rome. My condolence for anyone approaching retirement you may have concerns over whether your pension pot will stretch to cover the rising costs of living. Bad energy policy, bad foreign policy, bad regulatory policy , and insane fiscal policy
I think it's especially difficult for retirees and near retirees. My condolences to anyone retiring in this crisis, all those years of work just to loose it all to a crisis you didn't cause.
50 and retiring early. I'm really concerned abt the future in all aspects of where we all going, in this breath finances ; how to stay afloat. I'm thinking about investing for the first time in the capital-market but how can i achieve all that given that the market has being a mess most of the year?
@@mikeroper353 Its a great time to get in the market as stocks are on discount but i advice you get a coach or an expert guide you .
I can relate to that on firsthand. I began with " Colleen Rose Mccaffery” whom is a fiduciary financial-advisor and my gains were guaranteed. In such instances, I would always recommend hiring an expert to guide you through unpredictable markets and simply provide you with indicators and tactics for determining when to join and exit the market.
Please how can i reckon with such skillset? I'm seeking for a more effective investment approach on my savings, putting it to work because its getting killed due to inflation
It really does amaze me how someone who makes this much money is living paycheck to paycheck. They probably don't need half of the things they buy.
Thats not just a wealthy person thing lol PLENTY of broke people buy $1000 phones they dont need and 38 subscriptions they dont need.
3/4’s
@@deborahjackson6108 Cos they are trying to keep up with the Jones,s
From what he said it sounds like the major culprit is eating out too much and overpaying on the car loan. His car is only $500 a month. Odds are the car is not a luxury car. He has $2000 extra a month to pay for this car. Based on this sounds like his mortgage/rent is minimal. Another problem is focusing too much on paying off debt and not saving which is what he is doing. He needs to do both or he will be in this constant rat race of always paying debt.
This would have been me in 5 years if I didn’t watch this and every other DR video on this channel. The Ramsey team is a huge huge blessing. 20% head knowledge, 80% behavior.
During pandemic I was shocked at the amount of money that was in my accounts!! Realized eating out was killing us..just that small change makes a big difference!!
Those work lunches, Fridays out, and morning coffees / muffins really start to add up. Death by a hundred "taps" of the credit card.
Yeah. These rich snobs make more money than you'll ever have to your name, yet are more miserable than a homeless person.
Learn to cook! A must when you have kids!
@@GretaWardFireFly a must for anyone who likes good food and doesn't want their entire pay going to someone else....
@@GretaWardFireFlyAnd buy a crock pot! It was a life saver when my child was growing up and I still use it frequently as a empty nester.
This is my brother.
From 30k/yr early in life to now making 200k/yr and still paycheck to paycheck.
Income changed , but not the spending habits
Agreed. Lifestyle creep. I have been tempted by it but manager to control it (8 years ago I was making less than 30k a year so I try to remind myself of what I did to get by then and use those methods). If I had a six figured salary I would probably have no debt.
My brother is the exact same way. He never has money, no matter how much he makes. He's constantly moving back in with my parents and buying the latest phones, etc. I've tried to help him budget so many times, but as much as I want to help him, he simply has to make the decision to change on his own.
My husband and I make $180k now. We have the freedom that we worked towards. Our one decision that made this possible ' no lifestyle creeping'.
In in the area, this person is calling here, he could be speaking to friends unless he is trying to keep up with jones.
I make $116,000 yearly and I cut back to $800 month in expenses. Life change
@@119jleI assume you don’t own a home?
I’m so happy I learned how to budget on a low income! Even with the increase in income I’ve continued to stick to the same budget that has allowed me to live within my means. I have so many friends and family who are struggling with their finances and it breaks my heart. Not only because I can freely help them but it’s the discipline they lack. People are really struggling with FOMO and trying to keep up with the Joneses. 🥺
Seriously!! Learning to budget on a low income is so important. I see people around me making six figures and living paycheck to paycheck. HOW??!?!? In all the phases of my income growth so far, starting from when I was a 19 year old making $10/hour while I was in college to now being a 25 year old making 6 figures in my career, I literally have never lived paycheck to paycheck. Granted, I haven't had children yet, but I know I have the skill and capability to always create a comfortable life where I don't have to stress about money. One of the keys I've learned is to find joy & abundance in the simple things. Like going on a walk in the park and having an ice cream cone, sneaking food into the movie theatre on $5 Tuesdays, bonding with friends by making brunch and mimosas together instead of going out to eat. Learning that I don't have to spend $150 every time I leave the house was a game changer! Ik that was a wordy response but I just really related to you lol.
@@glittergirl37What about for those who are homeless and who don’t have family or friend support?
@EmilyGloeggler7984 I don’t know what your question is, but I do feel compassion for those people. 💔
Expenses rise to meet income. That’s the problem. Human behavior!
@@glittergirl37 My financial advisor is also a financial counselor. He has said repeatedly that lifestyle is the cause 99% of the time - living via marketing, worrying about what others think, watching what neighbors buy, validation from things. Am I sorry for them? I have to remember that almost all are intelligent, educated people who know exactly the consequences of overspending, not saving and buying loads of crap they don't need. It was not an accident nor a mistake but a choice. That sounds rough but it's unfortunately the truth.
My parents make $230k and still have tens of thousands in credit card and car debt. I love them, but it seriously blows my mind how much they can rationalize.
Rationalization. That is how they justify such extreme consumerism and extravagance? Rice and BEANS, baby! And GROW your own beans! That is how you become a millionaire FAST! I remember when Dave was on the radio, people would call in and do the, "FREEEDOOOM!!!" scream and that is how I feel since I have become financially independent. It was worth it to me.
There are many high income folks playing Russian roulette with debt. My wife’s friend and her husband earn over $400k per year. And still up to their eyeballs in debt.
Hopefully you can influence them so you're not left supporting them after retirement! :)
They're probably from the school of thought that having debt is good because it increases your credit score. I have a friend who refuses to pay off her debts for that same reason. Of course bankers love her and others who think the same
@@dachicagoan8185 that’s why Visa and MasterCard make so much profit.
Wealth building lesson #1
Wealth flows from those who don’t have a plan for their money to those who do.
We left college in ‘93 and made just short of $70,000 combined that first year. The income grew to over seven figures until we retired. Never once (and even now) did we “feel” rich. Everything we made went to savings or extra payments on the house. No jet skis, boats or lake houses. We did vacation a lot, but still used miles when we could and slept at middle of the road hotels/resorts. It’s like Dave has always said, “live like no one else, so you can live like no one else.”
$70,000 in 93’ is worth $160,000. You weren’t rich but even if that’s combined you guys were never in danger unless you splurged all your money.
@@eligreg99 Two things, that was combined and after talking with my wife, we were just short of $60,000. But your point is still valid. Although there are plenty of stories today of people making 190k living paycheck to paycheck.
@@66gtb I’m not saying you guys didn’t work hard for what you had but there’s absolutely no reason you should be living paycheck to paycheck with 190k. It’s just hard for me to wrap my head around how people do that and the solution is so simple (just live within your means)
@@eligreg99 Agreed. There’s no excuse. We lived well within our means. I think our worst year we saved 10% of our income and many years it was 40-50%. Everything was automatically drafted out of our bank account and when too much built up we wrote our advisor a check. It’s just discipline.
7 figure income? Get outta here.
Your example is meaningless and useless
They’re carrying a student loan so they can eat out ten times a month! 😮 These are the kinds of people who want their loans forgiven. 🤦♂️
Exactly. And then they go on vacations to places that most of us can only DREAM, while still complaining about all their debt.
I made sure I paid my student loans first. They were the reason I got a better job and made more money.
Of course. Spoiled and privileged.
@RJRussoVids - Yeah, these are the last people who need student loans forgiven. They could pay them if they immediately quit eating out period.
It's hard to understand because I have no other debt
I knew twenty years ago I wouldn't be able to pay my student loans in california
I went overseas to teach
I rent a place because it's more affordable than buying a home.
I use public transportation because it's efficient.
I have health insurance through my job.
My only focus is to pay off those student loans
"Get Rich With Only 4 Stocks" I want to say this, the key to big returns is not big moving stocks. It's managing risk in relation to reward. Having the correct size on and turning your edge as many times as necessary to reach your goal. That hold true from long term investing to day trading.
In my view, I would say, buy good companies and hold them as long as they are good companies. Just do this and ignore the forecasts and speculations which are at best entertaining but completely useless.
Any much good stuff still going on in the market regardless of the soaring inflation and crash? I see people everywhere on the tv saying they made over $400k and I'm left to wonder, how do they do it?
@@devereauxjnr A positive investor is one who sees opportunities in every market cycle. Not in the sense of FOMO. But one who sees all the good stuff that can happen even in each market cycle (Bull/Bear). That is foresight, One who takes advantage of even the bears. A positive investor the real MVP and the winner at last. Seek for the help of Portfolio Managers, that is what worked wonders in my portfolio
@@Aziz__0 Where can I find this Advisor?
@@Blitcliffe the inv-coach that guides me is NICOLE DESIREE SIMON , she popular and has quite a following, so it shouldn't be a hassle to find her, just search her
This guy doesn’t need to be gifted the app, he literally knows how to do numbers better than anyone (and has enough money to buy it himself!), he needs to make a decision that he wants to get out debt. That’s all. He obviously doesn’t want it bad enough if they keep going out. And $3k equal $100 a day. You could get $5 biggie bag at Wendy’s, pizza etc., and still save while “eating out”. He’s discouraged without really trying. He should come into our world- the people making $65k with a family, giving up everything just to inch into financial freedom. Sell the car, pay off everything but the house. Then hunker down for a little bit and knock out that house with that great income. Save the free apps for the truly struggling please. You guys talk about the student loan forgiveness promote laziness, what do you think this does for the wealthy?
If you need to still go out to eat for the atmosphere and company while being frugal, find a less expensive restaurant and eat a small portion of what you ordered, and you can box the rest to take home for an extra 1-2 meals. Also forgo the dessert and have water as your beverage.
Someone is super butt hurt that this guy makes more than them lol lol lol. WOW.
@@donjohnson1416 makes more but is broke 🤷🏽♂️
@@donjohnson1416OP wasn’t hating on the guy or his family. They stated facts, yet you found a way to detract. There are folks who make about a 4th of this guy’s household income, but have much higher net worths than him.
Once you make a certain amount of money, say, $60k-$70k+ a year, having good restraint and excellent money management skills can make your money longer. The same way that you can’t outrun a bad diet, you can’t out-earn bad spending habits. This guy is a prime example of that. And you may very well be too, judging by your response to OP.
You’re acting like there’s a limited amount of apps they can give 😂
My husband and I make over $200k/year, and I understand the pull of lifestyle inflation/creep. When you have that much money coming in, it's sometimes easy to rationalize the spending. Of course, in our situation, we drive older, paid off cars, don't have other debt, have a reasonable mortgage, eat out one time a week, and basically save my husband's entire income and live off of mine. We have to be mindful and intentional about lifestyle creep and not falling into that trap, though, because it could easily happen. It's hard too because everyone encourages you to spend because "well, you have the money." We both grew up poor, so that might be part of our motivation for never wanting to be in that situation again.
Peace of mind over everything
Bet your lifestyle is very opulent... Try earning 50k, you'd soon sell the big car, downgrade you 7 bedroomed home and purchasing non essentials.
Money is energy, but it's how you utilise that energy that matters.
@@roseyk7677it sounds like she knows the difference. Her point was to illustrate the power of lifestyle creep. It’s clear from her post that even though they have plenty of money coming in they still try to make sensible decisions and keep a lid on things. She wasn’t trying to say their lifestyle is the epitome of modesty. Many people who grew up with nothing and had modest beginnings went on to earn really good income and become financially comfortable and stable. This doesn’t mean we don’t remember the days when we didn’t know where our next meal is coming from and rode a bus because we couldn’t even afford a car. Let’s not diminish the experience and point of view the OP brings to the table. It’s clearly very relevant to what this episode is about.
@@irisflower9030 you her lawyer 😁
@@roseyk7677 huh? What kind of a question is that? No, I’m not anyone’s lawyer, just a person who comprehends what she’s reading and understands the point of what’s being said.
I'm really sick of rich people calling and complaining about this..
190 is rich? Thats what we make and I don't see the riches you're talking about. I feel average
@davidwright873 if you can pay your bills you're rich.
@@amyavraam8986 we live wi our means. We want for nothing .
@@amyavraam8986no. That makes you responsible. Whether you make $9000 or $90,000. You can pay your bills. If you don’t have enough to pay your bills, then you make cut backs in your spending, work more or both.
This just shows you it doesn't matter how much money you make. If you don't know how to manage it you're still broke
I wish I had his income. My food budget is $120 per month, I never go out to eat, I have no debt and house is paid off. I would be living the dream!!!
What are you eating? Cat food?
@@seanjean9677rice and beans? Literally?
Possible lifestyle creep might get you though
@@seanjean9677😂
Yeah.
Mine is $75/month and I live off of 150k.
That guy is crazy...
There you have it. You answered your own question. Make a weekly meal plan. Stick to it. I feed my family of 4 on 150-170 a week and that includes the packed lunches my kids take to school. Eating out for us happens for a date night or going on vacation we don’t just eat out to eat out. It feels horrible to eat out once and it’s almost as much our weekly grocery budget after tipping.
I don’t understand the appeal of eating out often. Especially with 20 percent as the new tipping standard, it costs a fortune to go and order something you could make at home. And at home, it would be healthier and you can make it the way you like it.
Great job Kayla
Good for you. My wife and I are the same way. Spending $27 at Popeyes (10 piece box of chicken and 2 sides) was breaking the bank :-) that’s become a treat for us.
👏YES YES!!! Some people have become terrible stewards of their resources. This couple needs to take a trip to the local food pantry and see for themselves how wasteful they really are.
SO..I make $35K a year. Have a good retirement set up, student loans paid off, own my own home (mortgage is $1025, we pay $1100 a month) our cars our paid off and we're good middle class and we're struggling a bit but we aren't paycheck to paycheck.
That’s great some people just fall for society’s money traps I’m around 40k and I’m set to be work optional by age 44. The trick is tryna not eat out even take out is cheaper. One cocktail drink at a restaurant is 16$ now a days 🤦♂️. Tequila bottle in my backyard is 13$
Amazing! Well done! Keep shining your light! People need hope and that it’s possible to do things differently.
I hate to bust your bubble, but you don’t own your home until you have completely paid it off. You’re still paying for it. However, you are doing well on your current salary. Keep up the good work and stay safe out there.
@@peeudo that is true.
You also pay zero federal or state taxes!
I'm really glad she gave him the everydollar app. I was worried he wouldn't be able to afford it.
Well he's poor compared to her😂 so she probably thinks he can't afford it😅
@@14elvira14 I don't even know what the app costs, but I bet if they quit eating out for one of the weeks out of the month, he could afford it. And what kind of food is it they're eating at these restaurants? This could cause a real weight problem if these are foods with a lot of fat. Just another reason to cut back on eating in restaurants.
😂😂😂
🤣
It's sad this is the problem most of the US citizens are facing right now. I think it's advisable for everyone to Live below their means" adjust their lifestyle, be frugal, budget, save and invest. This helped me out as a 6 figure earner. I've grown over half a million in retirement savings with this method
It's really so hilarious! Sadly there's actually people living paycheck to paycheck
Steve NC, 32. I Just started at my six figure job after being in and out of the poverty line. I really hope I don't end up like this. I'm scared really scared!!!
Don't panic, start out easy, don't buy things you don't need, budget every money, always save a portion of your pay atleast 5%, Invest from your pay check; it grows and helps you accumulate wealth easily.
Thanks, I started saving a bit already, how do I go about investing? I want to try all my options
read books, gain the knowledge set out a plan or target goal to reach. Get a pro financial expert lead you; follow consistently. You can also build a passive income channel from your investment.
Best advice will be to get a sams or costco membership and buy frozen food. Quick meals to heat up when you're tired and cheaper than takeout
this is it. having frozen quick food to eat helps stop eating out.
I call frozen food my “fast food.”
This helped my husband and I cut back a lot on our eating out expense From almost 300€ a month for eating out to 30€. Sure our grocery expense got more but maybe by 50€/ month so overall savings more than 200€ a month.
That's 15k/mo. Imagine not being able to pay off a 12k car or 6k medical in just a few months with that.
Let me guess, private schools and a country club membership
More like 10-12 once you factor in taxes and insurance. Not to mention daycare is eating a nice chunk. The biggest thing is for him to get the food budget in order.
After taxes and deductions, that's mayby120k. So that's 10k a month.
Lack of discipline.
Money doesn’t make you smart
Me over here just imagining how fat I would be if I had a $3K grocery budget a month…..
😂😂😂😂
If you shop at Wegmans, Trader Joe’s and Whole Foods every week, you will spend 3,000 a month on food.
Exactly!
@@gbb82true
He said their food expense was mostly eating out. So not a lot of groceries.
We currently make a bit more than that and live in California in a high cost of living area.
We have a baby with medical issues and never had medical debt. We are responsible with money and were able to pay about $20K out of pocket when my husband was a contractor and we purchased our own private health insurance. To hear that they don’t have enough money and have medical debt is mind blowing. They need to sit down and write a detailed budget. Track it on a budgeting app. Stop eating out constantly. Eat out once or twice a month.
Put more in savings and invest.
The sad thing in this entire conversation is that he knows he's making the wrong choices and feels frustrated, he knows he lacks self control and self discipline. Plus, he's not following the baby steps, but he knows the baby steps. This is an exact portray of all of us in the beginning of this journey. It took me a while, banging my head against the wall, to develop self-control and make the choice to be a new Carla and let go of the old one. Hang in there everyone! ❤
The 2012 Republicans (and Mitt Romney) were right - CUT, CAP, BALANCE, REDUCE, REPEAT
Grandpa always said “it’s not how much you make… it’s how much you keep”.
Get SERIOUS and follow Dave Ramsey’s budget.
1. Cut up ALL your credit cards and check cards and bank cards.
2. Use 30% of your income to pay off debt. Then survive on whatever is left. When debt is paid off invest 30% of your income.
3. The median American household makes $68k. Caller MUST cut back.
4. Most important lesson on this call (@ 6.54) “your issue is not the numbers it’s your behavior”
5. Caller will either make the changes necessary or those changes will be FORCED on them. Life gives us hints…, then it teaches PAINFUL lessons.
Just my 2cents
Perspectives of a BlueCollar millionaire.
Well said!
We live off 100k per year with 3 kids. And that's with eating out twice a month and going on vacation twice a year. But our student loans and cars are already paid off.
Well done!
The thing I find incredible is people who make these kinds of incomes that are drowning in debt and are flat broke, we hear about it all the time, even with pro sports players, music and movie stars, CEO's high ranking lawyers, ect., ect. If I made a third of what this caller says he makes, I would have ZERO debt, and would be able to live fairly comfortably. The part that startled me is the $3k in food a month!
it doesn't even make sense, how fat are these ppl
This is why Americans don't have savings I began my investment journey at the age of 38, primarily through hard work and dedication. Now at the age of 40, I am thrilled to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity.
I started investing about 2 years ago. But with the way things are going, I honestly do not see my self making a million box anytime soon. I trade on stocks but my profit and loss margin are grossly miles apart
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
Hi Mate, please how can i reach this CFA of yours?
I personally work with 'Kate Elizabeth Amdall''' she covers things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk. many things like that. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.
. I just looked the name up, wrote her and scheduled a call...
I have a similar income and was eating out everyday day and getting Uber eats. I never cooked ever. Then I wondered why I had no money after I got paid. Did a budget and realised where my money went. Now I cook 90% of the time and save so much more money
Yes stay out of restaurants...
They could order those kits of meals that get delivered to your door and still come out ahead on their food budget.
Ready made home food at the grocery store or Costco would be cheaper... Let alone making some homemade grub to eat
I am just glad he made this call …. That was he’s first step 🎉
Hope he & the wife can CUT their lifestyle. It’s a very hard sacrifice.
OMG, with $190k pa, I'd be set for life, not paycheck to paycheck. I cannot even remember the last time I ate at a restaurant, the biggest treat was take-out pizza. And this guy is an accountant. Blows my mind.
How in the world do you spend $3,000 on FOOD???? This is utterly incomprehensible to me. My wife and I budget $400/month on groceries and usually eat out a couple times and we’re often under budget. He doesn’t have to make cheap food at $1,500/month, he just has to stop eating steak and seafood everyday. I can’t understand why it would be so hard to just eat at home.
If we made that kind of money, we’d buy a house with like 50% down next year and save for a fantastic vacation. Is FOOD really worth it? Because by spending, he’s saying food is more important that peace or vacation or some fun use of that money down the road.
People like to spend a lot of money making turds lol
The big deal is they have a new baby and Mom is exhausted at supper, so they eat out. No one in that family knows how to set up for quick meals made at home.
groceries is your food budget, eating out is your fun budget. it may be food but you didn't buy it in a shop and prepared it yourself.
If you eat out a lot at restaurants you can easily get up to 3,000 for two people.
It sticks out because it is salient, but in reality they have some other much larger decisions that are causing issues. $3k per month is $36k per year out of a take home pay of $139k, leaving $103k per year unaccounted for. I suspect the "miscellaneous" category he mentions could be a big part, as well as general lifestyle creep in other areas of life.
Yikes. 20 years in the military family of 6, we just hit 90k for the year. I can only dream of what we would be able to do with 190k!!
Spend it better than this cat!
Ditto
It is wild to me that some people make so much yet they are so bad at managing it they are basically poor. It's quite embarassing to squander such a blessing.
Tomorrow I start a new career. In the last 2 years, my wife and I have gone from a combined income of $95k to $125k. We still only live off of $75k, which allowed us to save $50k in 2023. This year we will jump to $140k, and we still plan on living on $75k. The sky is the limit when you follow the baby steps, not allow for lifestyle creep, and work hard to increase your income. We spend the same as when I was working at a grocery store and she at a non-profit. Side note: we payed off $85k of student loans, credit cards, car loans, and personal loans, before we could ever start saving at the rate we are today.
The thing that makes it difficult is that you end up living like everyone else around you. It just seems so normal to go out to restaurants all the time, to have $800/month car payments, to still have student loan payments a decade after you graduate, to live in a nice, big home with new furniture in it, to travel out of town once a month. But normal is broke in this country. This what Dave means when he says if you want to get ahead, you have to live like no one else.
Majority of people dont have money issues. They have living above their means issues
This show needs Dave 24/7.
Totally agree! I bet he would have given advice in a way that would really kick this caller into feeling more gazelle intense on proper budgeting. He would have given the caller a better dose of reality.
Dave doesn’t need the show. He seems to be slowly turning it over to younger people.
Absolutely. He would go off.
I knew someone with 2 difficult youngsters that were exhausted to the point they would eat out nearly every night and lived in a mess. I had them work out how much they were wasting and it worked out enough to hire home help, day care and have change. It was insane how much they were wasting.
Honestly, $190k can be depleted super fast. You have to consider being in a higher income tax bracket, ever-increasing property taxes, increase healthcare costs, etc… it’s easy to say well he makes 6 figures and should do better. But not everyone’s situation is the same. Especially with 3 kids. He could very well be overspending, but I’ve stopped judging others because we just don’t know their circumstances.
There are people who would absolutely be fine getting paid $100 a week to cook meals out of the groceries in your fridge. I was a teacher for 10 years and my husband was a lineman. We were able to hire a nanny who cooked meals for us from our fridge and we hired a cleaning lady. I planned meals, bought groceries and the nanny cooked. She was paid in cash. It’s not abuse to pay someone a modest amount if that person is in need of that money and enjoys what they do versus working a stressful job. Our nanny used to work at a bank and retired, but she wanting something leisure to do and make some form of income. She still visits my daughters and became a family friend. Think outside of the box. We saved a ton!!! on food just having her cook it for us. It was the cooking part that seemed daunting for my husband and I as full time employees. 10 years later we’ve paid off all debt including our house. I’ve retired, but like the nanny, I want something to do, so I’ll likely take on a leisure job.
Rachel is right. You simply cannot spend up to your earnings. There has to be a red line that divides your savings/payback portion from the amount you live on and you do not cross that line. The reason is that you can't live a $190,000K life with this albatross of debt. You really do have to live a $80,000K life and fling the remainder at cleaning up this debt sinkhole. The truth is that once it is cleaned up and you do not return to behaving in ways that create it again, it is like getting an instant raise not having to make payments on anything any more. The best time to get right with how you manage money is from the first dollar you earn. The next best time is NOW. Learn to actually embrace frugality and make a game out of it. You will not be in this chokehold for long once you get your behavior in line.
“The best time to get right with how you manage money is from the first dollar you earn. The next best time is NOW.” 100%
Once I stopped drinking every day and doing coke on the weekends I couldn’t believe how much money I had 😂
...yup, them 8-ballz add up after awhile 😂😂😂
That usually helps 😂
Yep, good to go you druggie.
@@alphasuperior100 lol ok
@@alphasuperior100meanwhile you probably pop NSAIDs and down then with Soda pop every other day before having McDonald’s for dinner. But go around calling other people drug addicts. 🤡🤡
This is so sad. They make $190,000 a year and ONLY have $1,000 starter emergency fund and they have a child on the way and there's more month left than money? OMG....I'm so glad I've been listening to the Ramsey show. I'm working on the Baby Steps and have been gazelle intense to pay down my student loan debt!
I wish I were making $190,000 a year! That is goals, but living paycheck to paycheck with a measly savings is a nightmare! This definitely highlights how money management is definitely a BEHAVIORAL problem. As an accountant, I'd be sooo embarrassed. Great thing he called in to get this advice. But with behavioral changes, this may be harder for him to do because he's also dealing with family members. His family needs to likewise hop on board to this plan (ex: not eating out, doing take out, etc etc) as well in order for it to be successful!
I wish him and his family the best.
Actually people always need at least 10 percent more than they make . it is a thing in America. Americans are ALL in debt regardless of how much they make. This is why so many first generation immigrants do so well. They are definitely on the baby steps right from the get go even though they have probably never heard of DR. And why so many in the comment section just pick about whose fault it is ie my ex, my wife/husband, DR always sides with women, or the credit card thing, make fun of delivering pizza every day after work, or cutting back on kids activities, size of house, selling house etc and there is so much push back. Then of course there are the baby 1 and 2 callers OUCH and again nothing but blame ie student loan system, my parent. BUT IMMIGRANTS do exceptionally well. And Americans too when they start following DR -the thing is they were born here and still got into debt!!!! It is all relative ie you are surprised someone making 190 is in debt . I promise you that there is someone out there ie ME who is surprised that you are in debt or that anyone would ever be in debt. It is a concept I do not understand expect to wonder if it is entitlement ie I deserve or stupidity ie cant do gr. 4 math or just excuses ie victimhood. When has it ever been ok to spend money that you do not have and not save for your elderly self and not have money for a rainy/natural disaster day!!!!
We make a lot more than this but live in San Francisco where it is expensive. We are pretty frugal and do not eat out often. We are living paycheck to paycheck. After taxes, mortgage, healthcare, 401 K, 529 plans, HSA, car payment, kids activities, groceries and utilities there is not much left. Property tax and miscellaneous taxes take a large chunk of the money. We put our children through preschool and private school when they were younger. My daughter also played travel basketball which was expensive.
wait until he pays for that expensive daycare tuition 😅😅😅😂
I paid off my student loan and my car last year; building my emergency fund now. Next up is the retirement plan.
My guess is his wife is in control of spending and he afraid to put his foot down
Eating out every night is just pure laziness
Oh my God, I can not wrap my mind around making 190,000 dollars a year and having nothing at the end of the month. If I ever made (and I didn't) that kind of money I would have saved 150,000 dollars of it.
They should easily be able to live off $100k per year and use the rest for debt payoff and savings.
When you make that much, taxes become a much larger part of your life, so you may not even take home $150k after taxes. For example, someone making $190k in Texas (caller is from Dallas) will "only" take home $139k. You also typically phase out of any type of assistance for things like health insurance which is around $20-30k per year for a family. Not saying they can't do better, but it's worth keeping in mind that things don't scale simply.
Easy in the Bay Area where that amount is considered to be low income.$190,000 for a family of four is just scaling by. It is a lot of money in other locations.
@@mocheen4837 The caller is in Dallas, Texas so it will go a bit further, but yeah location matters. Plus Texas has murderous property taxes to make up for the lack of income tax, and it sounds like the caller is a homeowner.
@@linuxsurfer2002
I have a $100K pension, why save?
I am 79 years old. I live on $14,875 a year social security.
This is disgraceful. 190k a year living paycheck to paycheck....and this guy is an accountant. Terrible.
Makes me wonder how well he does it work with numbers???
I can't get past the $1500 for food but we spent $3000. Our household of 3 spends $600/month counting restaurants (450 grocery) and we feel like we're eating like royalty. I'm starting to wonder if people no longer know how to cook their own food, and/or don't know how much better it can be vs. a restaurant. How is it possible to spend $3k on food, even with a household of 5???
Takeout and going out to eat is 👹💸💸💵💵
It’s not Burger King
I enjoy listening and watching you guys. Dave cuts people off and don't let then speak. I don't enjoy that. You guys are great!
😂 He almost gave them a heart attack when he mentioned $2500/mo car payment. I was like "the fuck" till he explained it.
Perfect example of how people only care about the monthly payment. He mentioned he owes $12k on the car at the beginning of the video.
I knew it had to be extra on top of the payment. That's the only way you get out from under something like that. I was throwing $3,200 a month at my student debt (on average) when I was getting rid of that, even though the required minimum payment was only $270 or so. By the time I reached the finish line, I was so far ahead that I didn't owe another payment for over a decade.
@@siva47931 I don't know if this was a perfect example because he owes $500 a month, but is paying $2500 a month to get out from under it.
I mean it's OK to make the extra payment, it's good to make the extra payment, but if you are so stressed that you feel you need to call a national radio show, then take the easy first step and make minimum payments until you get some other things sorted out.
They would have had a heart attack if they heard I was paying $4K a month on my car before I sold it for a profit.
I make $70K (including my dividend stock payments) a year. I work 2 part time jobs and live a humble and frugal life. I paid off all my debts (house, car and credit card). I invest in CD, dividend stocks, Roth and regular IRA. I also invest in myself by buying financial books. I never cared about being really rich. I just never wanted to be poor again.
Those last two sentences are game changers. Not caring about being rich but never poor again. 🧡
Being rich is having a surplus of money. If you keep putting money in the bank, you are certainly rich.
Don't sell the car, just work the baby steps. They should be able to knock out his loans in less than six months.
I make $50k a year
I have no debt at all
Tons of money in the bank
No mortgage
No student loans
No car payments
Life is good.
It’s the spending stupid
He's not the first accountant I've heard that has some issues with maintaining a budget in their personal life.
The maid's house is the dirtiest, the contractor's house is always falling apart....etc etc etc
Add financial advisors to the list!
We shop at discount grocery stores. Eat out once a week.
3 adults. Its still $800 a month
Even so...that's not $3000!
If they don’t want to cook, hire someone to prep meals for them. I think it would be still be cheaper for someone to do that than eat out.
TV dinners are cheap and I'm assume they know how to use the oven and microwave.
Kroger has meal kits, you can also buy chicken dinners, heck,buy the $8 chicken, 2 cans of green beans, a can of biscuits snd some ice cream.. that is about $30 and you'll have at least one meal of leftovers..
THIS CALLER IS UNBELIEVABLE.
I ve never made more than 45k in last 25 years and I have 300k saved
Bro how though
Well done 👍🏼
@@TheSeveredTonguesahh he’s been saving for 25 years he better have that lol
He and his wife need to do batch cooking that way they always have food available and will be tempted to go out to eat cause you’re tired and don’t want to cook. My husband and I do this on our days off we do three or four separate meals and that way you just have to warm up in the microwave or the oven and it’s helped us tremendously
Neither one of them probably know how to cook good tasting meals.
Even Hello Fresh would be less expensive than eating out.
We do the same! We both work, and our kids are hungry early, so we cook two huge things on Saturday and Sunday and alternate them all week. If we're grilling out on Saturday, we might do grilled chicken, several types of grilled veggies, and throw on some extra hotdogs and brats, so then we have those options to work with in different combinations all week (plus they can be recombined into wraps, quesadillas, salads, etc. if you get bored with the same old thing). And then on Sunday we might do a big pot of soup, chili, casserole, curry, pot roast, or whatever. We usually make enough to freeze some extra, as well, so that when we have a really stressful week where we don't feel up to cooking, or get back from a weekend trip without time to cook, or miscalculate how much would last us for the whole week, we have something quick to thaw. We used to cook almost daily, but switching to this method has made our lives so much less stressful! An alternative option - my sister learned to cook from ordering Hello Fresh and other similar brands, got the hang of the recipes and methods, and now she is off to the races with doing those types of meals cheaper on her own and a really good cook!
Dave Ramsey quote
“Personal financial is about the guy (or gal) in the mirror”😂
Dave’s insights are timeless
That first month after eating out daily isn't super cheap either because you're buying everything to stock up. It really takes a couple months to see how much you truly save.
Get an instant pot, and make some good dinners. The eating out thing can be. Symptoms of poor planning, you get home after work at 10pm... How much do you want to cook? Make some adult lunchables, make a bunch of spaghetti sauce homemade to freeze for later, make some chili, prepare stir fry veg and freeze it. Make 3-5 meals you can pull from the freezer and fire into the oven or on the stove for easy cooking when busy
@@Noblity54 All good points. Buying all that food does add up pretty quick at the register.
@@Noblity54 It cost me about $8 to make my dinner for four days....600g of pasta....
Breakfast is quite cheap too...two bananas, two packets of oatmeal, 120g of raisins, and a c-kup for coffee. I think it's overall less than $5 for breakfast.
This is self control & discipline issue . There is no way they've been living on a budget . Could clean up quickly if they get motivated .
Every one living above their means is the same way.
Thank you for outlining what they said in the video. Don't think we could have put it together without you.
honestly, I work at a grocery store and a lot of ppl DO NOT now how to shop on a budget at alll!
I get this guy. When I was making $200k/yr. I felt the same way. The difference was that I forced retirement savings, college savings, non-qualified savings, life insurance, mortgage payments, etc. Everything else in our account we just spent. Now, due to automating those habits, we save a few hundred thousand a year and I work to limit how much I pay myself to keep the spending “low” (I know that’s very relative).
What's your occupation if you don't mind me asking
@@RobVI Financial Advisor/ Investment Advisor.
@@R_Jon congratulations on that fantastic income
@@RobVI thank you. It took 20 years of hard work and working insane hours. Now, I am enjoying the benefits of a less hectic schedule with more time off. I feel like a lot of the younger generation want to get to where I am, but don’t want to work the first 20 years of 60-70 hour weeks.
We make 72K and save over 2K every month. We live a great and fulfilling life. What is wrong with people?
3k per month on food? That's $100/day. On food. I can't get my head around this.
He literally said they eat out all the time
@@mxerb5912 ya he also said he has no idea where their money is going 😂
I know...I just can't believe it.
The secret is very complex and sophisticated: STOP SPENDING.
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
For a successful long-term strategy you have to seek guidance from a broker or financial advisor.
With the help of an investing advisor, I diversified my $400K portfolio across markets, and I was able to earn over $900k in net profit from high dividend yielding equities, ETFs, and bonds.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
My consultant is NICOLE DESIREE SIMON She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
My motto: the more you earn, the more you need to save. There's no guarantee of a high income tomorrow.
I earn half of this gentleman and just hit $1m in liquid investments. What worked for me: didn't buy unnecessary crap, didn't buy a house (I live in Canada), didn't accumulate any debt (couldn't afford it, didn't buy it) and most importantly-- paid myself first with every paycheque. Only took about 20 years, and I feel I sacrificed nothing-- consumerism and debt is a lie and a drug.
There’s an old saying, if you can’t manage a nickel, you can’t manage a dollar.
I think about this as well, but at the same time it is hard to hear tis person is living paycheck to paycheck.
Well due to inflation it's a new saying, if you can't manage 10 dollars, you can't manage 100.
We make $28,200 a year combined Social Security at our age of 65. Paid for off-grid home, no water, health or home-owners insurance bills. Solar for the car, home & bikes. Within 15 min is: A Healthfood store, gas station, church, post office, community center, school, library, rivers, hiking, etc. We grow 20% of our food and eat out 1x a week spending $40 which includes tip but we eat the organic meal at the Community Center. We do not eat at a restaurant. The average couple in Calif spends 2k a mo. on food. heist in the nation. 100K in the IRA, 20K cash emergency fund. We are very happy we retired.
Dr., it hurts when I do this.
QUIT DOING THAT!!!
OMG you're so mean by being direct and to the point... "todays society"
Aldis has been a blessing with my grocery bill. Saved $50-$60 a trip.
Family totally out of control.
Disagree on selling the car. They just have 12k left and if they continue paying more than the monthly. minimum. They will own pretty soon and not worry about anymore payments.
We’re high income earners ($250k+) and still have to have a conscientious budget to not blow the money. It’s easy to look at someone that makes more and wonder how they lose their money but if you keep the bad habits at $250k that you had when you made $60k you will end up just as broke. You’re just replacing the Honda with the BMW. We’ve been blessed by Ramsey and others in our life to practice good stewardship but it’s certainly not easy if you’re not intentional! (Still drive my 2011 Mazda 3 from college!)
As someone in the same boat, I could agree more. I still drive my 2006 Acura TSX. I love that car and the zero payments. 👍
I live with family and there’s 9 of us, and our food budget is less than $1800 a month, they need to cut way the hell back.
$3000 a month on food?😮 We spend less than $500 and eat healthy......
The first question she asked was, are you budgeting he answered yes, then goes on to say that they're actually spending almost or right at double what they have budgeted. No, you are not budgeting properly budgeting is setting an amount for that expense and not going over it, no matter what, a.k.a. the grocery bill. If you do not have the budget to eat out you do not eat out. It's that simple they are not budgeting like they said they were.
I don't think they are at their 'I had it' moment. They want to want to get out of debt and manage their money. They are still trying to recognize they are successful but not rich.
Problem is their debts aren't in scary territory, so they don't feel the pressure. When someone is close to bankrupt, they feel the pressure. Their food spending is astronomical.
@@KatieBellinothey love to eat out all the time
Good ear
Anyone who works for money is POOR
@@angel-ij4xv Yes, I understand that.
Keeping up an expensive lifestyle is best way to never get financially secure.
If I earn $190, I’ll be enjoying life. I’ll pay off whatever I have & start saving.
I wish the family luck. He can do it.
Back in 1980 my wife basically told me her mom is a financial expert. I had no reason to doubt her.
One thing I noticed was my in laws went out to eat a lot. Now fast forward to today and I asked my daughter how is grandma doing ? (me and my wife have been divorced for a long time ) my daughter said she is in big financial mess with her four kids having to
Give her Money every month. She got a second mortgage and now 43y after buying the house she has a $2500 a month payment, which she doesn’t have.
I was completely caught by surprise. Then I did some numbers in my head. If she ate out 4x a week for the last 43y, that’s over $200k, not counting the growth it could have generated in the stock market for 43y. She also buys $40. Worth of lotto tickets every Saturday for 43y. That’s another $80k.
I will never understand people like this I worked 7 days a week to get out of debt and paid off my car 22 months early. Yes, I have had family support and help along away like most people. I haven't broken the 6 figure mark yet. Most people in debt have the income to pay it off. You not going to owe as much as a doctor if you never went to college. Most people with the most debt that I know have had the income to get out of debt quick just lacked the disciplined.
Stop buying things you cannot afford.
Wow, how many of us would like to make 190,000 a year? I know I definitely would love that, but I would still live modestly too.
Everyone says that until they are making $X per year. Lifestyle inflation is all too easy.
We make 290k and have no debt. We can live off 4K a month really well so we end up saving and giving it away
I’ve never made six figures but I have been debt free for three and a half years
We could do so much with that money. 😅