A recent call The Ramsay Show It highlights how quickly even a solid income posted on TikTok can disappear under the pressure of debt and overspending. Alyssa, a psychotherapist, calls to discuss her family’s financial problems after recently remarrying. Despite their combined incomes of $130,000 – higher than the national average $80,610 in 2023 – Alisa and her husband will have a hard time. With just $3,000 in savings and no contributions to retirement, they are stuck in a paycheck-to-paycheck life cycle.
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They owe $60,000 on cars, have a $240,000 mortgage, and are burdened with $140,000 in student loan debt — $90,000 from Alyssa’s tuition and $40,000 from her husband, who doesn’t show it. “Who’s the lawyer?” Dave Ramsey pointed out how big the debt was. Alyssa smiled, “I’m a psychotherapist.”
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Ramsay’s co-host George Kamal questioned why they haven’t tackled the debt more aggressively. Alyssa explained that fear held them back when they tried — especially worries about having enough for her 9-year-old daughter. Alyssa, who is self-employed, and her husband, who works in construction. Faced with income instability. She worries that catastrophic spending will wipe them out.
Ramsey, who cut right to the chase, didn’t like it. “You’re making $130,000 a year and you’re going broke. That’s what I’m worried about. You drive cars you can’t afford, You have an absolutely asinine lifestyle.”
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“It had nothing to do with a 9-year-old boy,” Ramsey added. “What does she need that costs thousands of dollars a month?” Alyssa admitted that it wasn’t the baby’s expenses, and the “just in case” mentality.
But while Ramsay’s blunt advice stung, Alyssa’s situation was not unusual. According to Payroll.org’s 2023 survey, 78% of Americans are living paycheck to paycheck, up 6% from the previous year. Earning a good income does not guarantee financial security, especially when debt and high expenses are incurred.
“You never know where this money is going,” Ramsey pointed out, urging Alyssa to look at their situation as if she were counseling another family. “If I hired you to look at this family objectively, you’d be asking them to sell a car or two. You’re not going on vacation because you’re broke.”
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Ramsay gets Alyssa to face a hard truth. “The student loan debt that you think you’re petting is hanging around,” he said. He laid out a path to becoming debt-free in two-and-a-half years—if they made serious sacrifices. That means no vacations, selling at least one car, cutting unnecessary expenses and finally facing embarrassment The reality of their financial choices. “It’s not going to be comfortable,” Ramsey said. He added, “It will set you up for a wonderful career for the rest of your life.”
As harsh as Ramsay’s advice is, it offers a realistic vision of a better future. As uncomfortable as it may be, making sacrifices now can set you up for financial freedom.
A financial advisor can take things to the next level. They can guide you in paying off debt and investing for retirement, helping you make decisions that benefit your current and future self.
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This article Couple earns $11,500 a month but has $3,000 saved and no retirement – Dave Ramsey ‘asinine’ lifestyle: ‘You’re broke!’ appeared first Benzinga.com
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2024-09-28 01:00:19