Dave Ramsey Slammed My Decisions After Making $170K a Year

Dave Ramsey regularly takes calls from people who ask for help with navigating financial obstacles and long-term goals. He’s talked with many people who are living paycheck to paycheck, but this recent call presented a rare case.

The caller has $27k in debt despite bringing in $170k per year as a political consultant. It sounds like he should have enough money to cover his credit card debt, but a few bad money habits have caused the debt to reach its current level. It ultimately comes down to his mindset, and Ramsey shares some ways the caller can change his finances.

Getting the Entire Story

While a $170k income looks like more than enough to cover a $27k debt on paper, there are a lot of details that paint a more clear picture. The caller has only been earning $170k per year for six months. He was previously unemployed due to the pandemic and made $90k per year at his previous job. He worked as an Uber driver and brought in a $20k annual income before landing the political consultant job.

However, he’s also making a bunch of bad financial decisions. He’s renting cars instead of buying a used car and also spends $3,200 per month on rent between New York and Florida. He splits his time between both of those states because of his job requirements.

However, he’s also covering his girlfriend’s expenses because she’s out of work. Dave called him out on this since he initially implied that they were splitting the rent. The financial guru suggested that the caller shouldn’t subsidize the girlfriend’s life and should ask her to contribute to the rent.

The caller knows he has to fix his finances. That’s good since awareness is the first step to solving any problem. Now, it comes down to knowing what you have to do and completing those tasks.

You Have to Get Sick and Tired of Being Sick and Tired

Dave told the caller that he has to get sick and tired of being sick and tired to meaningfully change his finances. The caller is smart, as he was able to secure a job that pays $170k per year. Dave mentions this fact, but he also states that the caller is making foolish decisions with his money. This context makes it clear that the caller is smart enough to develop financial discipline if push comes to shove.

While some people wait for a rock bottom moment, Ramsey has a different suggestion. He tells the caller to think as if he will die on Christmas if he doesn’t repay the $27k debt. It’s an extreme measure, but having that type of urgency would suddenly cause the caller to become financially disciplined. Of course, this is just an imaginary scenario, but having some type of deadline in place can lead to better decisions.

These insights can help the caller with their finances, but there are many variables involved in finances. It’s good to speak with a financial advisor and create a budget that works if possible. Having a mentor by your side can make it easier to bolster your financial discipline and get on the right track.