If I made $400k a year I would be living a great life, alas I am on social security disability and I make squat to live on, but I am making it and I don't have to cry to Dave Ramsey.
@@Omar_Zazzle I had to go on SSD as well about 22 years ago. My husband was self-employeed and is now also on SSD due to being legally blind. During most of the 20 some years I worked at saving into a Roth IRA, some months only depositing $35-45/month. Because the stock market has done pretty well, last week that IRA and two tradtiional ones that we haven't added to other than reinvesting dividends, Our retirement account is at $103K as of last Friday. Certainly not what people tend to spout about thinking everyone should have several million, but I am happy with what we have. God has richly blessed us and takes care of our needs.
"...it's because you're making poor choices." That's like describing a career criminal as "making poor choices". As Dave alluded to, in this case the behavior is so extreme and so longstanding that there must be a major emotional/spiritual issue in husband and/or wife.
They can't find any room in the budget to cut ... meaning, they can't find a way to make cuts AND still keep doing and buying the things they enjoy. Gotta keep the private school, private music lessons, country club, Ferrari, big boat, etc. They can't come to terms with the reality that they'll have to miss out on something they've been accustomed to.
As a domestic relations paralegal, it never ceased to amaze me how many people making six or even seven figures were broke and one paycheck or financial burden away from disaster. We look at how the "other half lives" and imagine that they have it so good. The truth is, many of them don't. They could, but they don't. And, with that, I'm even further amazed at how America is a cash cow, yet so many don't have a clue as to how to manage their earning, no matter how large or small.
As a former financial advisor (I got out, sick of working with stupid people who refuse to make good financial decisions... we now are a small pool service business owner, our life is much better and we make about 100k and save lots.) Americans are doomed to return to poverty rather than own up to their horrible decisions with money. I know people who make 40k and have 1million banked. I know people (usually doctors and lawyers) who make over 250k and are broke, in debt, fancy cars, and no retirement. Yeah, I got out of the financial advisor game. Lots happier!!!
@@superwhitt21 I've got a friend who is a financial advisor. He's pretty happy where he's at, now. But he reckons that it took him 10 years to weed out the good from the bad clients. Like you, he said some people just want to do stupid things. He'd get phone calls asking him "what do you think about this", and he'd tell his clients bluntly, "don't go there". Six months later they'd call him back almost in tears saying something like "I know that you told me not to do...", "but I did, and I'm $30k down, what do I do now".
@@dialac1 I agree to a point. Of course limits need to be put in place. And chores/ good grades/ self responsibility etc. however I don’t think we make kids into “bad people” by spoiling them idk. Spoiling is a relative term . It means different things to different folks.
@@Tehui1974 them working hard and making a high income, is not a waste. You can do the same, making a $400k combined income is not out of reach for any couple
Definitely private school. I went to one on scholarship / grants from 3rd through 12th grade. Tuition was around $30-40k annually, increasing incrementally as you progressed through school. With six kids, that may be the bulk of the cost. If so, however, why wouldn’t the person who wrote the inquiry have specified that? Quite a line item to have omitted.
Went to a private High School / IB. Best School ever. But yeah it was $20K a year or semester. And that was 25 years ago. My dad had position in NATO so it was paid by the State. No Way in hell my parents could affordrd it otherwise. But man that School / College was Nice.
@@whosaidthat9265 family of six means four kids. Still, no one should pay more than 60k a year for private school. You can hire homeschool nanny/private teacher at that point.
@@analyticalchick3064 ah, I thought I heard six kids. Still, you can easily take $150k off of the top of their income for private school. Homeschool and private school don’t even come close to being similar when it comes to socializing your child and exposing them to different cultures. Homeschool is fine is that’s what you choose to do but the experience of going to school is lost.
After-tax income in NM on $400,000 is $304,686 (via Forbes income tax calculator), or $25,390.50 per month. I am guessing that their debt costs are about $5,000 per month. Call it $5,390.50, leaving $20,000 disposable income, which they said they are spending. That means that they spend, on average, $658 a day on expenses.
Changing their lifestyle would probably mean they would lose their friends, the kids wouldn't know how to live a "normal" lifestyle, they all would have less play time and lots of menial work to do. Just like the rest of us. They just don't want to do it.
I think it is OK to increase in areas where it actually matters to you and makes a difference, just limit it to maybe half of the increase and bump the rest into investments.
I understand it's all relative, the more you have the more you spend. However, I don't have a lot of patience for someone having that much income and having a hard time. No sympathy here from someone making $75k almost out of debt and saving. Love Dave's line at the end... "It's kind of a spiritual gift of mine." LOL!!
It's absolutely wild how irresponsible and out of touch some people are. Between myself and my wife, we bring about $250k into the household before bonuses (and do not live in a high cost of living area) and, my gosh, the amount of money we'd have to spend AFTER maxing our 401k's to fall below break-even each month is insane. If anything, I would argue we already "splurge" a bit too much on ourselves between going out to eat and frivolous hobbies, and we STILL stash away a chunk of cash each month. Step 1, like with almost any problem, is recognizing that YOU are the problem... not the world around you. Also, your vacations don't "have to" run you $15-20k each year. You sound like my (broke) ex who insisted that vacations were a non-negotiable. This is exactly the mentality that is murdering your finances. I bet you think you "deserve" a luxury vehicle, the largest house on the block, and a boat, as well, don't you? "Just because you put the Country Club in the budget doesn't mean it SHOULD be in the budget." Truer words have never been spoken. My ex-wife used to "budget" for things we couldn't afford. All spending was "ok" as long as we had it as a line item somewhere in the budget. Completely nonsensical. Her idea of "Saving" was setting money in a specific bucket to be spent. No, SAVING is setting aside money that ISN'T guaranteed to go out the door...
@@katemiller7874I have three kids, and we are prestigious accumulators of wealth by the definition of Dr. Thomas Stanley. We have to live well below our means but we don’t need much to be happy. Watching our kids grow brings us happiness. What’s your point?
@@whosaidthat9265if that’s the case, it’s decision they made that they may need to unmake, or make other sacrifices. It’s not like private school is the easy button to justify the cost
Mid 40s with six children, probably all in private school, custom- built, 7-figure home, designer clothes, a Rolls as the family car, a Bugatti for her, a Maserati for him. Oh, a throw in an au pair and private chef.
They don’t make private chef money, but probably an au pair in there, yeah. Which tbh is probably cheaper than daycare if they have more than one under school age.
Probably out of country. Air fare is easy 1k per person, hotel for 10 days is probably 2k at least. Maybe they have two vacations a year which isn't crazy. But with 6 people it will add up. Every restaurant bill is gonna be $250-300
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What they are forgetting is that no matter how much you make you can outpace your income and be paycheck to paycheck. You get yourself into debts where the minimum payments eat up your pay. Often the largest expenses beyond a house are the cars, followed by maybe maxed out credit cards. Most people are deeply upside down on cars they can't afford, and you can't do anything about the cards. You still need to find the money and make a plan to pay those, and it isn't always possible depending how bad it is.
I don’t hear much anymore about the $75,000 annual income. It was determined that figure is where the cutoff for happiness is. If you make more than 75K, you start thinking you can spend and get yourself into serious debt. Then you’re unhappy, stressed, and worried because you’re so in debt. The extra money is not put aside into savings or retirement. Figure is probably closer to 100K now.
@@TonyCox1351 I looked it up and it was 2010. Forbes quoted $108,000 in 2024. With $200,000 people would feel they can buy anything. Time flies with aging 😔
As I replied to another. It sounds fake but most likely is real. Lots of rich people are in debt and can't make ends meet. If you make $1M and spend $1.1M, you also will not make ends meet. Seems unbelievable to me as an average income person, but rich people find ways to blow huge amounts of $$.
Making money and budgeting are two completely different skill sets which have virtually nothing to do with each other. I know a lot of high income earners that spend every dollar every year and plenty of middle-class people who have saved up. These peoples lifestyles look very different but it’s a matter of priorities.
Sports, activities that children played for free for DECADES, are now for upper-middle-class to upper-class Americans. I was grateful my parents put me in sports as a kid, led to a partial college scholarship, self-development, etc., but looking at how much it costs for kids these days I get worried for my future children when its time to fork over the cash for them to compete. I most likely will start my own team and keep the budget next to zero cuz this is insanity lol
Kids are in private schools. They have a nanny for the youngest one. 100k+ SUVs, maybe a weekend car for the 2 of them. 1.5 million dollar house. Country club plus a personal trainer. Unused designer clothes and handbags in the closet.
It is possible that all 4 kids are of driving age and they have 6 car payments + a big house payment. If that is the case, he needs to sell some of those cars.
If you have four kids, each of them are in at least one high cost activity like baseball or hockey or competitive dance, etc. and each spouse has a hobby they like that is also expensive, like golf or skiing or hunting/fishing or something like that… And then you have a big mortgage payment of like $4000 a month and two expensive car payments that’s how you get here. This caller is ridiculous, but it’s not surprising. I know a lot of people that are in similar shoes who make a lot of money but blow through it saying yes to everything.
My income is around $65K and I live on $30K per year. And I live on $30K very comfortably. And when emergency happens like my HVAC goes out in 111 degree heat, I don't sweat it. Sorry for the pun! lol!
I make half of that. House paid. Zero debt. Retirement secure. Life is very, very easy at $200k. At $400k, you should have zero worries, even with $1M in debt.
The only thing I can think of without saying they're out of control on spending is chronic medical expenses that jack up their medical insurance premiums and eat up income with co-pays and deductibles. Sure, they didn't mention anything to that effect, so I may be overly charitable by suggesting it, but it's a possibility.
Wow! I live on the New Mexico border in El Paso, Texas, on just under $50k as a retired attorney. My house is paid for, but my property taxes and utilities are higher than those in New Mexico. But in any case, I am living comfortably on a fraction of what this caller makes. I am guessing these people are doctors living in Santa Fe, the state capital of New Mexico, where homes easily sell for over $1 million. But even that doesn’t explain why these people can’t live on $400,000.
That's wild. I do fine on 4k a month.. but I do miss out on the precious country club memberships, luxury cars, fine dining, and designer clothing. The horror!
@xSayPleasex I wouldn't have any of that stuff even if I was a millionaire. I wouldn't know what to do with the kind of money they make. Most of it I would invest and donate. Every one has different lifestyles though.
I live fairly well on 24grand a year. Even with a house and car payment. I am retired, on a fixed income and I have a budget. I find a lot of ways to have fun and enjoy life without joining clubs or having to pay for my entertainment. Those people making 400k and nearly broke? That is a special, special kind of stupid.
My wife and I live on less than $40000 a year We manage to tithe 10% to our church, pay our bills on time, go on two vacations a year and save money So we have no sympathy for them
Huh? Do even know what paycheck-to-paycheck means? It means no savings, and income=outgo. As soon as money comes in, it goes out the door. That's the definition. And LOTS of 6-figure earners live that way -- mostly due to poor choices, of course. Perhaps you think it means something like "can only afford the basics", but that's not the case.
@@SplashJohn I'd bet money they are not paycheck to paycheck. They are wasting discretionary spending every month on random BS. That is not what paycheck to paycheck means.
We didn't live paycheck to paycheck even when we were back at $60K! This is just being ridiculous. Stop the country club memberships. Cancel all your subscriptions. Stop the Nanny, cleaning lady, yard service, pool boy, etc. Sell your toys. Return the overpriced leased car, and spend $5-8k on a beater until you get this straightened out. Get the kids out of ridiculous activities. Cut up the credit cards. Then debt snowball.
@@Blittsplitt5 Politics is everything right now. So you're content with the Demonrats stealing another election, economic disaster, and their constant war on Christians? So you're ok with that?
Only if you were right. Republicans haven’t given more than passing interest in debt for more than like 18 months in three decades. Boehner tried but then the far right got rid of him and promptly voted for more debt.
"Almost impossible to cut into other budget items" = I've ruled out EVERYTHING that I refuse to give up and there's nothing left because I'm a adult brat. Both of them each egg eachother on and justify spending.
Exactly I have no sympathy for them. It’s almost like they are bragging about it, they have easy solutions to figure it out and don’t need anyone’s advice.
they make around $287k after taxes, id have $1M invested in 5 years making that much investing 200k a year and id be living like a king on the 87k... people like this genuinely piss me off. there are people in Haiti eating mud cakes today and these scumbags cant save money making 287k living in a fairly cheap state.
You can work a full time job, while owning a small business! Work a full time job while having rental properties! Like there’s a bunch of ways to make a combined income of 400k
Doctors, Lawyers, Hedge Fund Managers, Financial Advisors etc. Also, he said household income so they could be pulling $200k each or another split if both work.
My husband and I live on about $32K/year. Sounds like these people are drinking the koolaid of all the things that rich people have and you think you have to have them. I could make $400K last for years and save money as well.
what the parents make shouldn't matter when it comes to an adult child's college loans and debt. Some rich parents dont chip in a dime while some poor parents kill themselves to put their kids through school. College should never be free. It's an optional investment that people choose to make in themselves.
@@caribbeanbound8357 College should be free or cheap, but most people shouldn't go to college. You should have to be a top 25% student to get into college. College is an investment in the future workforce and economy, not merely an investment in one's self.
@@megalodon1726 no one spends their hard earned money to invest in the future economy or workforce. They spend it to invest in themselves. Nothing is "free" even if you believe it is. But its good you want others to pay for what you believe their money should be spent on instead of letting free people take on the life pursuits that they value enough to invest in instead!!!!
$500k per year or $70 k per year, people spend up until the end of their means and live paycheck to paycheck. Both parties are exactly the same. It's human nature.
they might be paying $200k in day care with 6 children. I am going to assume too much house, to big of cars, and high day care cost, and maybe even student loans.
I do not feel ANY sympathy for people who make that type of money that’s still struggling living paycheck to paycheck. There’s not enough excuses in the world that could change my mind.
This is ridiculous! Bad decision making for sure. Earning that much money while holding that much debt is insane! And spending 20k a month is stupid-crazy! Someone is making really bad decisions! I’d be paring that budget to the bone and saving every penny to get that emergency fund going and then throw everything at that insane debt! Imagine earning that much and being broke!
Dave nailed it, the spender doesn't contact Ramsey... Its always the exacerbated saver looking for a way to get the spending under control without it leading to a divorce.
Oh My God, I would give my left arm to have that sort of income .... the good I could do in the world and take care of people who don't make that amount in their entire lifetime!
