Finance guru Dave Ramsey slams Californian couple earning $500k-plus but living paycheck-to-paycheck

A joined mates pulling successful up to $600,000 a twelvemonth person admitted they inactive conflict to prevention - contempt their staggering income.

Bill, from San Diego, revealed connected The Ramsey Show that helium and his woman pain done astir $30,000 a month.

Host and fiscal adept Dave Ramsey rapidly pinpointed the contented - 1 that affects families astatine each income levels: a deficiency of budgeting.

'You're benignant of throwing a bale of dollars implicit the obstruction and past coming backmost to spot what's near later,' Ramsey quipped aft proceeding however they negociate their money.

Bill had called into the fashionable fiscal proposal amusement looking for guidance connected however to interruption escaped from surviving paycheck-to-paycheck, adjacent with specified a hefty salary.

 The couple's concern highlights however adjacent precocious earners tin conflict financially erstwhile spending spirals retired of control.

Ramsey acknowledged that helium had erstwhile made the aforesaid mistake. 

'I went done a play of clip successful my beingness wherever I thought I could outearn my stupidity, my deficiency of organization, my deficiency of detail,' helium said. 'You can't.'

'Our monthly expenses are astir $30,000, and past adhd taxes to that, truthful we beauteous overmuch adjacent retired each year,' Bill admitted. 

A breakdown of the couple's finances shows precisely wherever their wealth is going. 

They ammunition retired $12,000 a period connected 2 mortgages - 1 for their superior location and different for an concern spot - portion different $8,000 to $10,000 goes consecutive to charity. On apical of that, they lease a car for $750 a month.

Ramsey praised their generosity, but criticised them for their deficiency of budgeting.

The couple's concern isn't unique. Bank of America information shows that successful 2024, 1 successful 5 households earning implicit $150,000 were inactive surviving paycheck to paycheck—often owed to ballooning owe payments and unchecked spending.

Ramsey was speedy to connection solutions. The archetypal step? Ditching unnecessary expenses.

'Why bash you person a car outgo erstwhile you marque $600,000 a year?' helium asked, suggesting they should person bought a car outright.

Another target: their sky-high charitable donations. Ramsey suggested cutting back—at slightest temporarily—to escaped up currency for investments.

'I'm not against generosity successful immoderate form. I archer folks to bash it each the time,' helium said. 'But if you're doing zero investing and giving 20 percent, you whitethorn request to set that, astatine slightest for now.'

His advice? Get a budget, trim the fat, and commencement making their wealth enactment for them—before they find themselves successful a existent fiscal crisis. 

Earlier this month, Ramsey spoke astir the champion clip to bargain a home this year. 

He said that traditionally August oregon September to autumn successful precocious summertime and aboriginal fall. 

Fewer buyers are looking for properties astatine the time, and inventory remains precocious aft a outpouring selling season. 

The concern guru said successful a blog post that buyers should debar buying successful blistery lodging markets.