Not true at all!!!!!!!!!!!!!!! When I was making 10K no amount of money management makes it 20K in buying power. I know because later I was making 20K!!! Income is way more important than money management for that reason!!!
@@donaldlyons17 umm… first of all, why are you yelling? And secondly, your point makes no sense. No where did I say better money management means you’re making more money. You don’t understand. My point is that if you blow all your money, it doesn’t do you any good to make more money until you change your spending habits.
@@nhlanhla.vchili960 The idea seems right but that is a half truth. I know someone who makes more and does ok compared to the people making less who can't even afford their expenses.
@reese85 I mean it's over 3x my salary and I have a STEM degree. 🤷♂️ it also double what my house is worth. If you live in/around a big city, I agree though, $200k is more like $100k in most of the Midwest.
Yeah exactly. My wife and I live in Kansas City, KS and make 95k combined and do fine. No debt. Decent paid off cars. This lady is likely just being stupid. I can't imagine what I'd do with an extra 125k a year that they have. Holy smokes.
I did my debt-free scream on September 1st, two days ago. Single schoolteacher, 60k. No kids. When I got divorced I got nothing and asked for nothing. Debt free, I can now put away 40% of my take-home income into retirement. I am so NOT jealous of people who make more and live paycheck-to-paycheck. I purchased in 2020 a 100K condo versus 200k that I could have easily afforded. My goal was to be debt-free versus more living expenses. I sleep better than a person who makes 200k and doesn't know where it is 😂😂😂
Im a first responder that worked two full time jobs to pay for college, rent, bills etc. I only make 14 an hour. It would take me around 12 months of strict budgeting to save up 8k. This lady only needs 2 weeks worth of paychecks to get access to ~8k. It is very clear they do not keep a budget or even glance into their bank accounts. She is living that good life, lol.
I don't get how they could buy so much stuff and have a place to put it all... I don't know. I guess I've been poor for so long, learning about people like this just completely baffles me.
Papa Dave has done us good. My husband and I worked in sync with each other. Debt free on one income. Now we are both working almost 200k a year and living our best lives while building wealth and raising our children with love.
Agree with the money they make they should be able to retire at the age of 50 and enjoy life while at it but they can’t handle money so they will be broke forever
So your car is far more valuable to you than $1500, but to someone else it would only be worth $1500. Keep that car and use it's value to build wealth. You have a great mindset, keep it up.
@@michaelb.8953 That's why auto wrecks stink so much. Even assuming the insurance company gives me fair value for the totaled car, it's not the same as a car that I took care of and drove carefully.
I make the same kind of money. I live paycheck to paycheck because I live in a suburb of nyc. They have NO excuses. Kansas City you should be able to buy a 2500 sqft home and two brand new cars with what they are making. I know because I make it. Can’t do that in ny though lol. Average mortgage payment rn in New York is $6k a month.
@@mikec.4343 Depends where you live man. Living in CA making $280k annually means we only can afford a $550k condo in a not great neighborhood 1hr from the beach. If my wife and I moved to another state we'd make $135k probably.
Toyota Matrix is horrible, cheap quality can. I helped my friend to purchase one few years ago, and I wouldn't drive it for free. There are plenty of comfortable reliable cars at slightly more expensive price
@@davidkazakov6232 That may be, but it is a free car for my grandson. He can’t beat the price. My father drove all he wanted to, but he lived in a small town and everything was very close, hence the low mileage.
Dave's advice works well. It got me out of debt, motivated me to finish my degree fast and get a job, then purchase a home with 20% down on a 15 year and invest. We currently have over 50% equity and our investments are growing!
I want to start stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.
A solid strategy can be a key component of an investor’s portfolio. Well, the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals.
@@Curbalnk Yes true, I learnt that in 2020, when I lost almost everything. But I switched to using a financial advisor and I've been returning at least $98k every month so I’ve been sticking to investing via an Advisor.
*Heather Ann Christensen* is my advis0r. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online. I usually trade in accordance with her strategy
@@Shultz4334 Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
That's why money that goes towards savings is included in my budget and directly transferred from checking. Whatever is left over is what I can use for whatever else.
220,000 household income and they have no idea where it goes... What. The. Heck? HOW are people making this kind of money and they're clueless about their money. I don't understand...
My husband and I are terrible at buying used cars, so we now buy new for 25k or less and drive them for over 10 years plus. It has worked out better for us in the long run. We buy with cash and take good care of them. We are never in the shop but our used cars always were.
My strategy is to buy almost-new like 1 or 2 years old, so it still has at least a year or two of warranty left on it, and it would have already taken the big initial 20-25% depreciation hit.
Again you’re missing the point…we make nearly $50K more than these people so there’s no way they make 14K. They prob make $12K and after 401K more like $10K. That can go fast with a mortgage and car repairs. It’s not that much
@mkblazy I'm not going to sit here and argue with you over YT.... this individual agreed to making and blowing $15k a month in KC. THAT was why I made my original comment. There's really nothing underlying there. Honestly, you're very much coming across as a monetary know-it-all, which is a weird flex for a non-divisive comment.
The fact that you take it like that lol I’m pointing out the fact they likely make over 30% less than he predicted which is a huge salary discrepancy, and you can understand where they’re coming from more. But nooo you just take it as I’m a know it all vs “wow that’s less than I thought with that type of salary .” Sometimes the point just goes right over ppls heads and illustrates why salary gaps exist lol
You can tell she doesn't get it when Dave tells her "You're broke". Seems like so many of these callers don't realize the hole they are in, and the seriousness of the debt they have incurred.
@@chiragmehta8212 I’m an entry level design engineer (no degree) and my wife is a veteran hairstylist of 17 years (unfortunately with our kids she can only work weekends.) We pull down about 72k net as well… I couldn’t imagine rocking that much in under 5 months. Then again, a lot of UA-camrs out there make far more than that… This Dave Ramsey Show brings in roughly 70 grand a month here on UA-cam… (and that doesn’t include any sponsored content or merch sales)
I'm not making excuses, but I get it. If you have a dual-income household (which society has more or less been forced in to, to remain middle class), particularly while trying to raise kids, the amount of time it takes to sit there and cook 3 square meals a day from scratch just isn't there. This is a generational thing our grandparents and some of our parents can't relate to (in general of course).
Always a pleasure to watch another episode of this great show 😀 incredible how high earners end up being broke..😮 they just need to start saving and paying off all their remaining debts 😮
I paid $4200 cash for a 2010 Town and Country (in 2023) with over 210,000 miles on it. I just drove it 30 hours to Mexico and it's going great after a $15 trip to the mechanic here in Mexico. I did have to take it to the shop a few times before I left, but every car eventually needs to go to the mechanic....it's just a matter of having payments or not and having more expensive insurance for having a new car or not.
These are the people that don't feel the inflation. To them $9 eggs is just an inconvenience. Edit: I know a retired Boeing engineer pension fuck that doesn't think $3.69 gas is a problem.
We are from Brazil and love the show. Today we don’t have any payments to do except the mortgage. Real worth less than dollars, but we are in the run to get to a million! Would love to talk to you guys.
my wife and i earn about $200k/year but we only spend $80k/year... and it feels like a luxury lifestyle. true - we have 5 year old cars and fly coach, but if i want a toy i just buy it! we don't even have a budget
My parents were like this. Although I think most people need a budget, it's possible to save a ton if both husband and wife are on the same page about saving.
I earn about the same myself, single income, family of 4. my home and rentals are all paid off, we spend less than $5K a month. I budget everything, never impulse anything. Just bought my wife a $51K Lexus Hybrid SUV last month, in cash. Most important part, both spouse has to be on the same page.
Dave seems to forget things like taxes, 401k, and insurance. 200k a year is about 10k take home per month after you take out all of those. This also assumes you have no kids.
This 100% a LOT more comes out of those paychecks besides taxes especially with a family and kids. I make a bit over 250 and I estimate about 13k take home after taxes, state taxes, and insurance, retirement, numerous insurances, FSA it goes on and on.......
Damn, her mortgage payment is my rent. People always say they'd have more money if they lived in a lower COL state (like Missouri), but if your spending isn't under control, you'll be broke no matter where you live.
Where in MO? The suburbs are filled with 700k homes and 2 brand new vehicles sitting in the driveway. The kids are walking around in name brand with the new tech. The land that's not poisoned with agent orange by products or some other BS is like 100k and acre. Not only that but in MO we pay income taxes (every check), personal property taxes (every DEC), and mortgage/lot taxes (every DEC.) It's expensive even with a 100k+ income.
These calls are funny to me, these people have a way out if they just think for one second. The calls I like to hear are the ones that make little money and are in trouble.
Are there ANY really good restaurants out there anymore? I don't think so. I can cook about 8 good meals that are better than 80% of restaurants serve.
I'm not sure if I zoned out and missed her saying if they have a bus load of kids or something, but I'd love to see Caleb Hammer do a detailed audit on them, cause' where in the HECK is $15k per month going to with low to no car payments and $2k mortgage? Even factoring in utilities and student loans, that's wild that's to think about losing track of that much money. I'm glad she's taking steps to improve but yeeesh.
It goes. I make 215k. I’m left with 12k after taxes, a basic health insurance plan and call it 5% retirement contribution. Uncle Sam and the corrupt state of New York take a lot. You’d be surprised. My wife and I pay $650 per month just in tolls from bridges. Another $450 in gas, $2400 in rent (which is one of the cheapest in my area), $200 a month car insurance, $1200 in food for two people monthly, $837 in car payments (for a Hyundai and Subaru. Nothing special) and the rest in occasional car maintenance, clothes , utilities, let’s call it another $500 per month between all those things. That’s almost 6k right there…. So idk. Blame the corrupt and mismanaged MTA taking a very big chunk of toll money.
@@Legoman69469 Dude, that's not a good example of "it going" especially compared to hers. Think about it, not only is your $6k counting your wife's expenses, but you also attributed your retirement contributions. That's not money spent, that's money invested somewhere to get to later. Since you said, "I make" then you're still doing really good for the money you net, if the $12k after taxes is what you're solely bringing in. In her situation, we're talking 2 people, $15k, no-low car payments and from the sound of it, she still doesn't know where money is going to put into savings/retirement (I could have missed that part, but even if she is putting some away AND had all of your same expenses, her and her husband would still have too huge a gap of missing money, coming from $15k a month even after taxes.)
@@Legoman69469 add that up even after you do thats a lot of extra money from 215 k a year lol i make 75 and live just fine lmao if you eat 1200 worht for 2 peaople you have a damn eating problem lmao i have a family of 3 and only spend 500 a month lmao
I cant fiqure out how people are smart enough to have good jobs but not smart when it comes to their own finances. No restraint on spending apparently.
Pay a good mechanic you trust to check out the car you've selected (hopefully researched as well), it'll be worth the hour you pay them to make sure nothing is seriously wrong w the car. If the seller doesn't allow it, find another car. May be wise to never trust the dealerships, especially the used lots.
I knew based on how she started the call that when she said she had a quick question, it was not going to be a quick question. For people who are apparently nervous to call in they all sure love to talk.
@@katysudlow7334 but why would we want to donate merchandise to a place that is eventually going to come under Russian control if we don’t want Russia to have merchandise. Shouldn’t our people have our merchandise
My husband and I live on $42k a year and only have mortgage debt. No kids. Credit score is at 824. We had one car for a long time and saved up and bought Hondai for $14k in 2021 cash. We don't do car payment. We take one week vacation a year and have 6 months expenses saved. We live in our means or even bellow.
If you make a budget, and write down your expenses, then compare it to your paychecks for the month, you'll probably cry and how much extra money you actually have available.
Dave is wrong on taxes every single episode. In what world does someone making 225 take home 180? He thinks taxes are only 20%, he's living in la la land. I make 155k personally and i only take home 92k. They are clearly spending too much, but they are very likely only taking home 135k, so closer to 11k a month. A 4k a month difference is huge.
You are a liar. Your federal income tax rate is 24%. So that would mean your state tax rate is 17%. There is no state, not even California, that taxes that high. LIAR
I'm in Canada, so it's worse, but yeah. We make closer to $250K between us and take home less than $150K. A lot of that is her pension contributions and my automatic RRSP contributions, but still, a lot of it is just taxes. Especially if you have one high earner up here every dollar over $100K is like 40% or more taxed.
@@alanj9978 I am in California, between our Federal and State income tax, it is close to 40% being taken. Thank goodness my home and rentals are all paid off, otherwise it is a HCOL area to have a family.
I agree on the good cheap cars. I bought a pickup for $1200 and daily drove it for 3 years. Still runs strong to this day 20k miles later. I also got a 2005 Toyota Highlander for $5000 and it still running fine 32k miles later. Yes I do my own maintenance so that does cut cost down but these cars are out there.
Dave and Jade's advice for years has been to "sell the car" and buy 5k (a "clunker" per Dave) and 2k (Jade) cars. Many commenters (me included) have commented there are no longer reliable vehicles at that level (her 8k vehicle went out on her). The money "saved" by buying those vehicles (5 and 2k) is spent on constant unexpected repairs and the costs of being stranded unexpectedly. And did I miss it, or did she say where her money (225k yearly) was going, or did Jade and Dave just pull ideas out of the air?
Buy what you want and pay it off. You don't have to follow every jot and tittle of what Dave says. I had a 2022 BMW x4 m40i -- approx $80k. Yes a lot, stupid yes, but it is now paid off in about 1 year and 5 months. I am broke, yes, but I have no credit card debt and now a paid off car. My mortgage is next, but I have to get 6 months of emergency fund saved first. I have a son with two more years of college - engineering student- so yes, I follow a lot of what Dave says, but he is not God! The biggest thing Dave taught me is it not just what you make annually, but what is your net worth that determines your wealth. I never looked at my income vs my net worth. If I don't own any of my mess, even if I make 500k a year (which I don't lol), my net worth is $1! That motivated me more than anything else to get out of debt as quick as possible, while I make a decent income. If something happens to my income, look at what I have accomplished - debt free except for my home (for the most part) and because I threw a lot of money at the principal, look at how much I brought the balance down -- which mean more equity in my home if I were to sell it.
@@Bigbilly-ms9bn 1-2k you’re just not looking hard enough. I opened Craigslist for 1 min and found some for 1-2 k. If u live in a small town gotta go to a big city to find them. It should only be temporary
You need to factor in a couple of things though. They mentioned they are not car people and it makes me wonder if they even had that car looked at before purchasing. If they bought it from a dealership and it's locking up 6 months later they should have been able to take it back.
One thing that can really help when buying a vehicle is to have a auto tech drive and inspect it before the purchase. It doesn't matter what amount is spent. There is a huge difference buying a $1000 car that will go for 10,000 miles without big problems vs a $1000 car that will have $3000 worth of problems in the first 500 miles. You are money ahead paying someone to tell you whether a vehicle needs work or is going to be a huge problem down the road.
Not true. You're ignoring several factors like food deserts, disabilities, lack of reliable transportation, dependants, location.. 80$ a month is not feasible for most people. Starving is also a ridiculous extreme to prop up your argument with, no duh nobody is starving to death but having access to just enough to survive shouldn't be the metric. A well balanced diet should be which is not sustainable for EVERY American
I agree! I have serious food allergies with all legumes, grains, citrus and preservatives from canned food and I have to buy fresh meat and eat lots of vegetables. It’s VERY expensive. I hate to spend a lot of money on groceries and I have a lot of debts and I wish I could increase my income too but I don’t have enough education and I don’t want to take extra student loans to pay for schooling.
I got a great 1000$ car. My little Saturn was my saving grace. I drove that thing dead. But while everybody was worrying about gas prices during the pandemic I was smiling because I had no car payment and it literally costed me under $30 to fill up my tank.
If I was rich enough to buy a $500 bottle of wine you best believe it would mean I had already bought pretty much everything I already wanted and had no debt and a lot in savings and investments lol
People start making more and buying higher quality of the same things, more expensive vacations, upgrading house and cars, etc. A lot of people do that and just end up the same way they would by making half of that.
Man these comments are so harsh and judgmental. She said she's new to DR. All things considered, they're doing better than most. They don't have a lot of debt and are looking to do better. Give her a little grace.
Actually best way to buy is used cause normally new many have issues that get worked out in first 4 years.......key is buying used that have are not that old.... I only buy used even when my networth is well past a million.
First million I made I bought my mom a house for $300K and wanted to pay off the rest of my house and buy a new car . Guess what ? I starved for 6 months Got a tax bill that I didn’t have , had recurring bills on my credit card, subscriptions and monthly’s that I didn’t have to have because I thought they were small.. oh, $300/month on a personal trainer ?? No biggie I made a million in 6 months .. Had to cut all that out, pay everything, my mom needed furniture I told her to manage without a living room and a dining table. Losing money is as easy as gaining weight and making money is as hard as losing weight It’s a never ending job
Just here to say.. that’s a lot of money, they should be in a lot better shape. But I wonder if they’re paying for like 3 kids in daycare or something. That’s $4000-6000 (I pay $3k for 2 kids).
I was paycheck to paycheck when I was making $34k, now at $60k I'm debt free and am saving a ton for retirement etc etc, legit don't understand how you can eclipse meaningfully into the 6 figures and struggle like this
It doesn't matter the income, when people spend more than they make they will continue to be broke and the monthly debt burden creates stress, especially when life's surprises cause financial interruptions.
200k....a year.....come on people....thats nuts... what would i give for a lottery winning of that amount after taxes even once...im not sure we will ever have a paid for house..... just glad we are in a house
LOL at myself. My $4,000 2001 Grand Marquis with 75,000 miles got totaled. So I am looking for a replacement but I am cheap about cars for myself. My wife has a good $18,000 Honda CRV that we bought last year with cash. I want to buy a Toyota Van for about $7,000, my wife wants me to spend $20,000 and get something better. I am laughing at myself because we have the cash and I really should just spend the money, but I just can't. But one of the reasons we have the cash is because I have not spend money on expensive cars.
$200k/yr is middle class on the West Coast. We're definitely not buying $500 bottles of anything. Houses are $600-$800k, easy! My car is 15 years old and I'm still a renter while I try to work the baby steps and save. Perspective matters.
im not sure if her household income is $200k+ tbh. I think her husband told her a wrong number cuz it just doesnt make sense why a $200k salary person will go for a used car. and their mortgage is only $2k. it just doest make sense. either shes lying or she has been misinformed
You look like A New Yorker like me. I make 215. People from Other parts of the country think we are rich until they come here and see we weren’t kidding that it is middle class at best
This call is proof that a higher income is not the solution to money mismanagement.
Not true at all!!!!!!!!!!!!!!! When I was making 10K no amount of money management makes it 20K in buying power. I know because later I was making 20K!!! Income is way more important than money management for that reason!!!
@@donaldlyons17 umm… first of all, why are you yelling? And secondly, your point makes no sense. No where did I say better money management means you’re making more money. You don’t understand. My point is that if you blow all your money, it doesn’t do you any good to make more money until you change your spending habits.
Absolutely true 💯
@@nhlanhla.vchili960 The idea seems right but that is a half truth. I know someone who makes more and does ok compared to the people making less who can't even afford their expenses.
High income is sure best solution to fix once you recognize you money mismanagement
Broke rich people are my favorites to watch
I can’t even imagine making $225,000 😳
@@eclipse.5295it’s decent. It sounds a lot but it’s just decent
$225,000 is middle class
@@reese85how much you make? What do you do? People forget the average person makes $60K and is in 5 or 6 figure debt.
@reese85 I mean it's over 3x my salary and I have a STEM degree. 🤷♂️ it also double what my house is worth. If you live in/around a big city, I agree though, $200k is more like $100k in most of the Midwest.
2k house payment is a dream with that income. They are so wasteful
$225k in Kansas City, MO is rich, they are spending like mad
Kansas City is not a particularly cheap place to live. It’s not California, but it’s not cheap either.
In MO. that's crazy money!
Yeah exactly. My wife and I live in Kansas City, KS and make 95k combined and do fine. No debt. Decent paid off cars. This lady is likely just being stupid. I can't imagine what I'd do with an extra 125k a year that they have. Holy smokes.
@@commonsenseisntcommon1776 not in Kansas City haha.
In most places throughout the nation, $225k is a heck of an income.
I did my debt-free scream on September 1st, two days ago. Single schoolteacher, 60k. No kids. When I got divorced I got nothing and asked for nothing. Debt free, I can now put away 40% of my take-home income into retirement.
I am so NOT jealous of people who make more and live paycheck-to-paycheck.
I purchased in 2020 a 100K condo versus 200k that I could have easily afforded. My goal was to be debt-free versus more living expenses.
I sleep better than a person who makes 200k and doesn't know where it is 😂😂😂
Congratulations!
Im a first responder that worked two full time jobs to pay for college, rent, bills etc. I only make 14 an hour. It would take me around 12 months of strict budgeting to save up 8k. This lady only needs 2 weeks worth of paychecks to get access to ~8k. It is very clear they do not keep a budget or even glance into their bank accounts. She is living that good life, lol.
Sometimes those are the most in debt people because they end up with a false sense of comfort.
First responders should be making bank. 😢
How can an Ambulance ride cost people almost 1000$ sometimes yet that’s how much you make wtf you deserve so much more
@@skyerymommait really makes you wonder who's ending up with all that medical insurance money 🤣
They just buy whatever they want without thinking about a budget.
Like our Govt!
That’s the majority of the people 💀🤦🏼♂️
I don't get how they could buy so much stuff and have a place to put it all... I don't know. I guess I've been poor for so long, learning about people like this just completely baffles me.
@@TheFlyingZulu Well that might depend on how expensive or how cheap that they buy is.
Papa Dave has done us good. My husband and I worked in sync with each other. Debt free on one income. Now we are both working almost 200k a year and living our best lives while building wealth and raising our children with love.
Budgeting is the key, regardless of income. As income grows, this demonstrates the power that is lost due to the lack of budget.
Agree with the money they make they should be able to retire at the age of 50 and enjoy life while at it but they can’t handle money so they will be broke forever
My car is 11 years old and has a KBB value of $1500. Runs just fine
She said the engine locked up. I think they just never changed the oil lol.
So your car is far more valuable to you than $1500, but to someone else it would only be worth $1500. Keep that car and use it's value to build wealth. You have a great mindset, keep it up.
@@High5748 -Or even checked it!
$1,500? You must drive a jalopy. Even a 1999 Toyota Camry goes for at least $3,000 nowadays
@@michaelb.8953 That's why auto wrecks stink so much. Even assuming the insurance company gives me fair value for the totaled car, it's not the same as a car that I took care of and drove carefully.
Calls like this make me so angry. Making a quarter million a year and you don’t know why you’re living paycheck to paycheck.
Yep pathetic
Keeping up with the Jones’
I make the same kind of money. I live paycheck to paycheck because I live in a suburb of nyc. They have NO excuses. Kansas City you should be able to buy a 2500 sqft home and two brand new cars with what they are making. I know because I make it. Can’t do that in ny though lol. Average mortgage payment rn in New York is $6k a month.
It's amazing how the little expenses add up. I just drink plain water. No Gatorade, pop, or alcohol. My savings have just been astronomical.
BURP!
Healthy and cheap, but holy geez how boring!
@@Cookieboy70 You've gotta do what you've gotta do. I'm thinking long term gotta start saving somehow. Sacrifices now pay off later.
@@kobelcofan It will pay off health-wise in the long run, too.
I make decaf iced green tea. Four teabags per half-gallon pitcher. The tea bags are $.03 each at Trader Joe’s. I drink one pitcher per day.
When she said “we only made 160k 3 years ago” I knew they lived the ”high life” 😂
I thought the same thing "we were only making 165. Boo hoo"
These days thats not that crazy. About middle class lots of places.
@@mikec.4343 Depends where you live man. Living in CA making $280k annually means we only can afford a $550k condo in a not great neighborhood 1hr from the beach. If my wife and I moved to another state we'd make $135k probably.
@@markgiese9175”only afford a 580k condo “
@@markgiese9175 you can afford quite a bit more than a 550k condo on a 280k salary.
I feel better about my $30k income and got rid of 169k debt
Wow! Very impressive.
I bought a great $4000 car! 2006 Toyota Matrix, 175,000 miles and with a little maintenance this thing has another 100k miles in it. You can do it!
You're the exception and not the rule.
As of last week, Jade told someone to get a 2k car during a rant.
My son recently inherited a 2002 Matrix with only 18,000 miles on it from my father. The car looks brand new. He is going to give it to his son.
Toyota Matrix is horrible, cheap quality can. I helped my friend to purchase one few years ago, and I wouldn't drive it for free. There are plenty of comfortable reliable cars at slightly more expensive price
@@davidkazakov6232 That may be, but it is a free car for my grandson. He can’t beat the price. My father drove all he wanted to, but he lived in a small town and everything was very close, hence the low mileage.
Dave's advice works well. It got me out of debt, motivated me to finish my degree fast and get a job, then purchase a home with 20% down on a 15 year and invest. We currently have over 50% equity and our investments are growing!
I want to start stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.
A solid strategy can be a key component of an investor’s portfolio. Well, the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals.
@@Curbalnk Yes true, I learnt that in 2020, when I lost almost everything. But I switched to using a financial advisor and I've been returning at least $98k every month so I’ve been sticking to investing via an Advisor.
@@Shultz4334 I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
*Heather Ann Christensen* is my advis0r. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online. I usually trade in accordance with her strategy
@@Shultz4334 Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I love when people say “we need a reliable car”…like they’re special..everybody needs a reliable car..that’s kind of the point
Yes😊😊
That's why money that goes towards savings is included in my budget and directly transferred from checking. Whatever is left over is what I can use for whatever else.
Most Americans spend mindlessly and don’t track their expenses, rich or poor.
None of the tracking matters when one had more than enough money despite buying.
220,000 household income and they have no idea where it goes... What. The. Heck? HOW are people making this kind of money and they're clueless about their money. I don't understand...
Why anything is possible. I used to live with a guy that could not budget to save his own life... And he was very poor making about $600 per month.
My husband and I are terrible at buying used cars, so we now buy new for 25k or less and drive them for over 10 years plus. It has worked out better for us in the long run. We buy with cash and take good care of them. We are never in the shop but our used cars always were.
My strategy is to buy almost-new like 1 or 2 years old, so it still has at least a year or two of warranty left on it, and it would have already taken the big initial 20-25% depreciation hit.
If you buy Honda, Toyota, Acura or Lexus you’re better off buying new and if you plan to keep it long term.
I stopped buying used cars in my early 30’s. My net worth keeps going up nicely. Dave’s rule of thumb re. Used only until $1m doesn’t make much sense.
@@patty109109 Totally agree. its ridiculous.
I really enjoy Jade and seeing her fashion choices. She's so much fun and cuts through all the bs just like Dave does.
She looks better with her hair done like that.
@@Primitive_Code I like her curly and voluminous style-just the way it grows out of her scalp.
y'all are thirsty
@@mrbean7888yeah I’m not a fan of her lol
@@briankelly7978sometimes she doesn’t give reasonable solutions, her & George are always so quick to say get on a budget 🙄
The idea of going through $15k a month in KCMO is WILD.
They do not make 15K a month. We make $270K without bonus and it’s more like 14 IF you do 6% in 401K with maxing out 401K it just is 12K.
@@Mkay999 still. Kc is so low in cost of living, blowing 14k a month is still wild
Again you’re missing the point…we make nearly $50K more than these people so there’s no way they make 14K. They prob make $12K and after 401K more like $10K. That can go fast with a mortgage and car repairs. It’s not that much
@mkblazy I'm not going to sit here and argue with you over YT.... this individual agreed to making and blowing $15k a month in KC. THAT was why I made my original comment. There's really nothing underlying there. Honestly, you're very much coming across as a monetary know-it-all, which is a weird flex for a non-divisive comment.
The fact that you take it like that lol I’m pointing out the fact they likely make over 30% less than he predicted which is a huge salary discrepancy, and you can understand where they’re coming from more. But nooo you just take it as I’m a know it all vs “wow that’s less than I thought with that type of salary .” Sometimes the point just goes right over ppls heads and illustrates why salary gaps exist lol
Most people don't understand how much money they lose eating out.
Depends on who you're eating out
@@ChrisMFlorida wendys.
@@ChrisMFlorida 😂
You can tell she doesn't get it when Dave tells her "You're broke". Seems like so many of these callers don't realize the hole they are in, and the seriousness of the debt they have incurred.
90% of Americans just think of their income and not their expenses so they think they can't be broke with a high income.
@@SteveC484 Right but it should be obvious that income and expenses all count because money is a limited resource.
15 grand a month??? Holy crap!!! Halfway through the year and they have already jumped way ahead of my wife and I. 🤯
I am pharmacist and I barely make 70k net.
@@chiragmehta8212 I’m an entry level design engineer (no degree) and my wife is a veteran hairstylist of 17 years (unfortunately with our kids she can only work weekends.) We pull down about 72k net as well… I couldn’t imagine rocking that much in under 5 months. Then again, a lot of UA-camrs out there make far more than that… This Dave Ramsey Show brings in roughly 70 grand a month here on UA-cam… (and that doesn’t include any sponsored content or merch sales)
I love Dave and Jade together just as much as i love dave and rachel together!
So you love everybody basically
My wife and I make 130k and were still broke but we figured out it was going to restraunts. I don't even feel like Im that fat.
😂😂😂My hubby & I are the same way! We don't even go out to nice restaurants - just Chipotle, McDonald's, take out was wasting SO MUCH $$$
I'm not making excuses, but I get it. If you have a dual-income household (which society has more or less been forced in to, to remain middle class), particularly while trying to raise kids, the amount of time it takes to sit there and cook 3 square meals a day from scratch just isn't there. This is a generational thing our grandparents and some of our parents can't relate to (in general of course).
if you spend 150 dollars a night eating, it adds up.
@@critterdude311 We just cook once a day. Breakfast and lunch are just something quick.
@@critterdude311 Cook and freeze double batches of things on weekends.
Always a pleasure to watch another episode of this great show 😀 incredible how high earners end up being broke..😮 they just need to start saving and paying off all their remaining debts 😮
They spend money like the Federal Govt!!!
Oh snap!!!!
Nah, they paid off their credit cards.
Well good for them for starting the journey, it’s hard to accept if you’ve mismanaged your money! Hope the best for them
she sounds like she is 12 and is calling in as a prank
Man I’m living on $600 week and thats really hard to live on for me
Dave: Were is all your money going? / Caller : Ummmmm
The reason Dave went easy on her it’s because she is new here!😆
And a woman. Be honest.
Calling to the show and not knowing about steps… 🤔
She also had a humble attitude.
@@djpuplex go to therapy.
Nate he’s right if you have ever listened to Dave Ramsey you know this.
don't need to watch the video ... the headline screams, "NO BUDGET IN PLACE"
It's amazing how budgeting can be more essential than one's salary.
I paid $4200 cash for a 2010 Town and Country (in 2023) with over 210,000 miles on it. I just drove it 30 hours to Mexico and it's going great after a $15 trip to the mechanic here in Mexico. I did have to take it to the shop a few times before I left, but every car eventually needs to go to the mechanic....it's just a matter of having payments or not and having more expensive insurance for having a new car or not.
I like how she said we started making only 150k like that is chump change.
lol......right
I want her financial problems.
Probably spoiled, daddy had money 💰 and after getting married, they took the oath of poverty at 225K 😂
These are the people that don't feel the inflation. To them $9 eggs is just an inconvenience.
Edit: I know a retired Boeing engineer pension fuck that doesn't think $3.69 gas is a problem.
"Ignorant and entitled" should have been the title to this vid.
We are from Brazil and love the show. Today we don’t have any payments to do except the mortgage. Real worth less than dollars, but we are in the run to get to a million! Would love to talk to you guys.
That co host is fine. She got a nice smile.
“Lifestyle creep” is the actual terminology.
"Engine locked up". What?
Loved Jade from the jump and still love her. I'm a George stan too, lol.
my wife and i earn about $200k/year but we only spend $80k/year... and it feels like a luxury lifestyle. true - we have 5 year old cars and fly coach, but if i want a toy i just buy it! we don't even have a budget
My parents were like this. Although I think most people need a budget, it's possible to save a ton if both husband and wife are on the same page about saving.
I earn about the same myself, single income, family of 4. my home and rentals are all paid off, we spend less than $5K a month. I budget everything, never impulse anything. Just bought my wife a $51K Lexus Hybrid SUV last month, in cash. Most important part, both spouse has to be on the same page.
@@jml9550 Congrats, I love Lexus hybrid suv.
@@ToOpen6seven thx. Love 40MPG and 500+ miles per tank. :)
Do you have kids?
It's a marvel of marketing that people believe you can't get a lemon with problems from month one buying a new car
Dave seems to forget things like taxes, 401k, and insurance. 200k a year is about 10k take home per month after you take out all of those. This also assumes you have no kids.
This 100% a LOT more comes out of those paychecks besides taxes especially with a family and kids. I make a bit over 250 and I estimate about 13k take home after taxes, state taxes, and insurance, retirement, numerous insurances, FSA it goes on and on.......
Damn, her mortgage payment is my rent. People always say they'd have more money if they lived in a lower COL state (like Missouri), but if your spending isn't under control, you'll be broke no matter where you live.
Where in MO? The suburbs are filled with 700k homes and 2 brand new vehicles sitting in the driveway. The kids are walking around in name brand with the new tech. The land that's not poisoned with agent orange by products or some other BS is like 100k and acre. Not only that but in MO we pay income taxes (every check), personal property taxes (every DEC), and mortgage/lot taxes (every DEC.) It's expensive even with a 100k+ income.
These calls are funny to me, these people have a way out if they just think for one second. The calls I like to hear are the ones that make little money and are in trouble.
Are there ANY really good restaurants out there anymore? I don't think so. I can cook about 8 good meals that are better than 80% of restaurants serve.
Good point. There aren’t many.
I'm not sure if I zoned out and missed her saying if they have a bus load of kids or something, but I'd love to see Caleb Hammer do a detailed audit on them, cause' where in the HECK is $15k per month going to with low to no car payments and $2k mortgage? Even factoring in utilities and student loans, that's wild that's to think about losing track of that much money.
I'm glad she's taking steps to improve but yeeesh.
It goes. I make 215k. I’m left with 12k after taxes, a basic health insurance plan and call it 5% retirement contribution. Uncle Sam and the corrupt state of New York take a lot. You’d be surprised. My wife and I pay $650 per month just in tolls from bridges. Another $450 in gas, $2400 in rent (which is one of the cheapest in my area), $200 a month car insurance, $1200 in food for two people monthly, $837 in car payments (for a Hyundai and Subaru. Nothing special) and the rest in occasional car maintenance, clothes , utilities, let’s call it another $500 per month between all those things. That’s almost 6k right there…. So idk. Blame the corrupt and mismanaged MTA taking a very big chunk of toll money.
@@Legoman69469 Dude, that's not a good example of "it going" especially compared to hers. Think about it, not only is your $6k counting your wife's expenses, but you also attributed your retirement contributions. That's not money spent, that's money invested somewhere to get to later. Since you said, "I make" then you're still doing really good for the money you net, if the $12k after taxes is what you're solely bringing in. In her situation, we're talking 2 people, $15k, no-low car payments and from the sound of it, she still doesn't know where money is going to put into savings/retirement (I could have missed that part, but even if she is putting some away AND had all of your same expenses, her and her husband would still have too huge a gap of missing money, coming from $15k a month even after taxes.)
@@Legoman69469 add that up even after you do thats a lot of extra money from 215 k a year lol i make 75 and live just fine lmao if you eat 1200 worht for 2 peaople you have a damn eating problem lmao i have a family of 3 and only spend 500 a month lmao
I cant fiqure out how people are smart enough to have good jobs but not smart when it comes to their own finances. No restraint on spending apparently.
Pay a good mechanic you trust to check out the car you've selected (hopefully researched as well), it'll be worth the hour you pay them to make sure nothing is seriously wrong w the car. If the seller doesn't allow it, find another car. May be wise to never trust the dealerships, especially the used lots.
I knew based on how she started the call that when she said she had a quick question, it was not going to be a quick question. For people who are apparently nervous to call in they all sure love to talk.
Dave, can you also give the same advice to the Pentagon so they can find out where trillions of tax dollars given to them, went?
That doesn't qualify as "not evil, bad, or lazy"
Taxes weren’t given. The government earned that money.
Ukraine. It went to Ukraine.
@@katysudlow7334 but why would we want to donate merchandise to a place that is eventually going to come under Russian control if we don’t want Russia to have merchandise. Shouldn’t our people have our merchandise
@@katysudlow7334 I should probably just be happy that Russia hasn’t started shipping their merch to Mexico yet. Live in the moment
I got a 2011 mazda 3 for 7.1k and it has been a reliable work horse.
I do this with $30,000.
My husband and I live on $42k a year and only have mortgage debt. No kids. Credit score is at 824. We had one car for a long time and saved up and bought Hondai for $14k in 2021 cash. We don't do car payment. We take one week vacation a year and have 6 months expenses saved. We live in our means or even bellow.
If you make a budget, and write down your expenses, then compare it to your paychecks for the month, you'll probably cry and how much extra money you actually have available.
I noticed the caller whos married says "I" alot. If youre married it's "we"
They do not make 15k per month. Taxes, 401k, health insurance
Don't bring home
I have a 20 year old holden commadore i got for free. It has never broken down.
Dave is wrong on taxes every single episode.
In what world does someone making 225 take home 180? He thinks taxes are only 20%, he's living in la la land.
I make 155k personally and i only take home 92k.
They are clearly spending too much, but they are very likely only taking home 135k, so closer to 11k a month. A 4k a month difference is huge.
Agreed.
Yep, I make $200K and take home around $11K…..
You are a liar. Your federal income tax rate is 24%. So that would mean your state tax rate is 17%. There is no state, not even California, that taxes that high. LIAR
I'm in Canada, so it's worse, but yeah. We make closer to $250K between us and take home less than $150K. A lot of that is her pension contributions and my automatic RRSP contributions, but still, a lot of it is just taxes. Especially if you have one high earner up here every dollar over $100K is like 40% or more taxed.
@@alanj9978 I am in California, between our Federal and State income tax, it is close to 40% being taken. Thank goodness my home and rentals are all paid off, otherwise it is a HCOL area to have a family.
I agree on the good cheap cars. I bought a pickup for $1200 and daily drove it for 3 years. Still runs strong to this day 20k miles later. I also got a 2005 Toyota Highlander for $5000 and it still running fine 32k miles later. Yes I do my own maintenance so that does cut cost down but these cars are out there.
Dave and Jade's advice for years has been to "sell the car" and buy 5k (a "clunker" per Dave) and 2k (Jade) cars.
Many commenters (me included) have commented there are no longer reliable vehicles at that level (her 8k vehicle went out on her).
The money "saved" by buying those vehicles (5 and 2k) is spent on constant unexpected repairs and the costs of being stranded unexpectedly.
And did I miss it, or did she say where her money (225k yearly) was going, or did Jade and Dave just pull ideas out of the air?
Buy what you want and pay it off. You don't have to follow every jot and tittle of what Dave says. I had a 2022 BMW x4 m40i -- approx $80k. Yes a lot, stupid yes, but it is now paid off in about 1 year and 5 months. I am broke, yes, but I have no credit card debt and now a paid off car. My mortgage is next, but I have to get 6 months of emergency fund saved first. I have a son with two more years of college - engineering student- so yes, I follow a lot of what Dave says, but he is not God! The biggest thing Dave taught me is it not just what you make annually, but what is your net worth that determines your wealth. I never looked at my income vs my net worth. If I don't own any of my mess, even if I make 500k a year (which I don't lol), my net worth is $1! That motivated me more than anything else to get out of debt as quick as possible, while I make a decent income. If something happens to my income, look at what I have accomplished - debt free except for my home (for the most part) and because I threw a lot of money at the principal, look at how much I brought the balance down -- which mean more equity in my home if I were to sell it.
I heard him tell someone yesterday to get a 1k car and I just don't think he realizes those don't exist.
@@Bigbilly-ms9bn I bought a miata for $800 off copart and spent about 200 on tires and brakes..
@@Bigbilly-ms9bn 1-2k you’re just not looking hard enough. I opened Craigslist for 1 min and found some for 1-2 k. If u live in a small town gotta go to a big city to find them. It should only be temporary
You need to factor in a couple of things though. They mentioned they are not car people and it makes me wonder if they even had that car looked at before purchasing. If they bought it from a dealership and it's locking up 6 months later they should have been able to take it back.
Shiii....add me to your bills. If you don't know where they go, you might has well donate it to me. 😂
20,000 a month income! 😂😂😂 I’m weeping my monthly is not even 10% of that and I’m told I make a decent hourly wage.
She must buy them Fords, they getcha everytime.
One thing that can really help when buying a vehicle is to have a auto tech drive and inspect it before the purchase. It doesn't matter what amount is spent. There is a huge difference buying a $1000 car that will go for 10,000 miles without big problems vs a $1000 car that will have $3000 worth of problems in the first 500 miles. You are money ahead paying someone to tell you whether a vehicle needs work or is going to be a huge problem down the road.
Hey I am from KC big ups
Definitely only found Dave last week
I survive on $20 a week. It's impossible to starve in America unless intentional.
Not true. You're ignoring several factors like food deserts, disabilities, lack of reliable transportation, dependants, location.. 80$ a month is not feasible for most people. Starving is also a ridiculous extreme to prop up your argument with, no duh nobody is starving to death but having access to just enough to survive shouldn't be the metric. A well balanced diet should be which is not sustainable for EVERY American
I agree! I have serious food allergies with all legumes, grains, citrus and preservatives from canned food and I have to buy fresh meat and eat lots of vegetables. It’s VERY expensive. I hate to spend a lot of money on groceries and I have a lot of debts and I wish I could increase my income too but I don’t have enough education and I don’t want to take extra student loans to pay for schooling.
I am so sad I just learned that Kristina Ellis is not longer with Ramsey. She was my favorite.
What happened?
I agree, she was great! I didn't realize either that she had moved on.
All these women do is laugh at his jokes. He is being distracted and laughing at peoples problems.
They only need one token.
Totally forgot about her and that’s exactly why she’s gone lol
I got a great 1000$ car. My little Saturn was my saving grace. I drove that thing dead. But while everybody was worrying about gas prices during the pandemic I was smiling because I had no car payment and it literally costed me under $30 to fill up my tank.
Lifestyle creep happens very subtle. We need to be very careful not to inflate our expenses based on our income.
It amazes me what some people make and how bad they can be with money. The more you have the more you can misbehave and get away with it.
If I was rich enough to buy a $500 bottle of wine you best believe it would mean I had already bought pretty much everything I already wanted and had no debt and a lot in savings and investments lol
One of my good friends is a wine conessiuer, he'd never pay $500 or any amount close for a bottle of wine.
No matter how rich I was, I couldn't bring myself to spend that much on a bottle of wine. I would feel so guilty!
$50 bottle tastes just fine; the rest is just flexing.
I wouldn’t pay 10 cents for a bottle of wine. I am 64 and have never taken a drink. Alcohol destroyed my family and childhood. That stuff is poison.
@@lisabaltzer4190 👍
J&D are the best combo❤
How you make that and still broke
People start making more and buying higher quality of the same things, more expensive vacations, upgrading house and cars, etc. A lot of people do that and just end up the same way they would by making half of that.
Easy. Not even on big ticket items. Small stuff adds up.
Man these comments are so harsh and judgmental. She said she's new to DR. All things considered, they're doing better than most. They don't have a lot of debt and are looking to do better. Give her a little grace.
To blow that amount ever month and not know where it is going!? .....I don’t know. I think they deserve a what the heck.🤷🏻♀️
New cars are the best for peace of mind. Once you own new, you never ever want to buy a used car again!!!
New cars are used once they’re bought and driven. Peace of mind is money in the bank and no debt
Actually best way to buy is used cause normally new many have issues that get worked out in first 4 years.......key is buying used that have are not that old.... I only buy used even when my networth is well past a million.
They're also one of the biggest reasons people stay broke
I bought a new car once. I agree about peace of mind. Since then I’ve bought three certified pre-owned with warranties.
Wow😮 she must have a fabulous wardrobe!
Just goes to show know matter how much money you make doesn't make you smart
Or responsible.
My daughter and son in law
Make 3x as much as me.
They spend to the max.
Recently they borrowed money off me
I try to tell them to save.
Don't lend them anything then they will learn
Buy a Toyota. Over 27 years have had very little car problems with them.
First million I made I bought my mom a house for $300K and wanted to pay off the rest of my house and buy a new car . Guess what ? I starved for 6 months
Got a tax bill that I didn’t have , had recurring bills on my credit card, subscriptions and monthly’s that I didn’t have to have because I thought they were small.. oh, $300/month on a personal trainer ?? No biggie I made a million in 6 months ..
Had to cut all that out, pay everything, my mom needed furniture I told her to manage without a living room and a dining table. Losing money is as easy as gaining weight and making money is as hard as losing weight
It’s a never ending job
Just here to say.. that’s a lot of money, they should be in a lot better shape. But I wonder if they’re paying for like 3 kids in daycare or something. That’s $4000-6000 (I pay $3k for 2 kids).
You don't know what kind of shape she's in.
@@jimmymcgill6778 I mean financially lol
@@jaynez9027 I am too.
Just because they spent 8k on a car, does not mean they are broke.
It is very easy to spend your way out of $15,000 a month.
Yep
I was paycheck to paycheck when I was making $34k, now at $60k I'm debt free and am saving a ton for retirement etc etc, legit don't understand how you can eclipse meaningfully into the 6 figures and struggle like this
Lifestyle creep I can’t even imagine
No common sense, zero budgeting.
It doesn't matter the income, when people spend more than they make they will continue to be broke and the monthly debt burden creates stress, especially when life's surprises cause financial interruptions.
@@carlaritchie331 No income matters even with debt because the size of each tends to make differences.
Great advice!
200k....a year.....come on people....thats nuts... what would i give for a lottery winning of that amount after taxes even once...im not sure we will ever have a paid for house..... just glad we are in a house
Ric Flair never changed his lifestyle, that took him to a 16 time world championships!
Oh my gosh... This drives me nuts
LOL at myself.
My $4,000 2001 Grand Marquis with 75,000 miles got totaled.
So I am looking for a replacement but I am cheap about cars for myself.
My wife has a good $18,000 Honda CRV that we bought last year with cash.
I want to buy a Toyota Van for about $7,000, my wife wants me to spend $20,000 and get something better.
I am laughing at myself because we have the cash and I really should just spend the money, but I just can't.
But one of the reasons we have the cash is because I have not spend money on expensive cars.
$200k/yr is middle class on the West Coast. We're definitely not buying $500 bottles of anything. Houses are $600-$800k, easy! My car is 15 years old and I'm still a renter while I try to work the baby steps and save. Perspective matters.
It should be mandatory that every politician take the Dave Ramsey course.
Unfortunately they are mostly all pedos or sex offenders. Besides, they make their income on insider trading and 'campaign' funds.
im not sure if her household income is $200k+ tbh. I think her husband told her a wrong number cuz it just doesnt make sense why a $200k salary person will go for a used car. and their mortgage is only $2k. it just doest make sense. either shes lying or she has been misinformed
I didn't get it. How are you not able to tell where 10 grand went each month?
I’m on baby step 4 yippee 🥳
HH income is well over $250k and I’m debt free and I feel nowhere close to rich enough to buy a $500 bottle of wine 😆
You look like
A New Yorker like me. I make 215. People from
Other parts of the country think we are rich until they come here and see we weren’t kidding that it is middle class at best
Hand over my mouth. I pray for her. The good news is that her and her hubby can make it out of this.