Very misleading title. Both the caller and his wife are maxing out their 401(k)s (i.e. they're investing a total of at least $45k per year) and they have $25K in savings. That is NOT living paycheck to paycheck.
This guy won’t listen to them. It is what it is. But this is a great example why this guy and his family will be broke regardless of their 350k income.
😂😂 they are not broke though they literally put all lot of money in 401k. They are putting $50k plus a year. Honestly she didn’t ask enough question because they’re still a lot of money not accounted for.
@@trueprophets4704yeah, def not broke. Just not managing money as effectively as maybe they could. Big difference but people enjoy calling others broke on debt alone.
@@trueprophets4704I agree. We didn’t hear what the mortgage is nor where the money is going. I assume they are spendy in general. Their paycheck to paycheck isn’t on basics; it’s on keeping up with the joneses.
It happens all the time. It seems crazy because that income is top 5% income but most people struggle to live within their means whether they bring in $25k or a million a year.
@gwwelch it doesn't happen all the time, that's why its a minority of people. And if you take a global average its even smaller. Its just in the US people hav more money than sense.
We make a little more than that and our monthly expense is around 8k with two kids in daycare. It is not that hard to save at least $100k with their income.
It’s good to know there are sensible people out there who know how to put aside money for their future. people like this caller are exasperating to hear how financially stupid they are.🙄🙄if I mad that kind of money I’d put aside half of it for 10 years and retire in my early fifties.. people like this need to have someone slap some sense into them 😒😒
Your daughter is the exception to the rule. Wish there were more like her. I know a girl that not only didn't pay but didn't want to go back to work when it opened because she found out she could still stay home and get paid. She was twenty!
@esterdrass4964 That's terrible. My son is a bartender, and didn't have work when the bars were ridiculously closed for three months. But he went back to work on Day 1 when they reopened. He did not sit around collecting extended unemployment benefits like the lazy people did.
A co worker had a big story about how not paying her school loans was building her credit. Free yourself, prepare for an emergency or job loss. Don’t have debt and your chances of riding out hard times are 1000x better.
I have a Toyota and besides regular maintenance, the only thing I've needed to have done is replacing a turn signal--and that twice. Car is 10 years old.
If you're in mountainous country like WV, and have a job (like in medicine) where you cannot call out for a snow day.....a Camry ain't gonna do it. A used Subaru will.
Doctors have a tendency to be spendaholics. They studied so hard for so many years that they feel they "deserve" to live an expensive lifestyle immediately after med school, and end up carrying student loan debt into their 40s.
Me. 62y old high school drop out Laborer all my life. Retired. House paid off No debt at all Money in the bank. Don’t own a car. I’m a cyclist I make $49k pension Life is good.
I don’t think they have to go crazy like Rachel is saying, but they definitely need to make some changes. I’m in the same income bracket and area … there’s no reason he shouldn’t be a millionaire within in the next 7-10 years.
This year, all in 2023, I will have spent $17,613 to live. That's housing, insurance, utilities, food, and gas. A little under $1,500 a month. I'm 35, live alone, and have no debt. There is no excuse.
I'm 66, retired last December, and just started taking social security two months ago. I lived on my savings until then (I had planned on waiting to FRA to start collecting but then realized I'm leaving 2500 on the table to get an extra one fifty per month at 66.5 years of age). Similarly to you, I only spent about 20 thousand in those almost ten months. That old adage; it's not what you make, it's what you spend.
I know me too. But, I think what happens is the more you make the more you feel the need to spend. I cannot imagine that kind of income and what I could do with it in one year...right now. But, maybe a few years ago or when I was younger?
You owe 100K total on two vehicles, but if he sold them he mentioned they were worth 20K total. You can’t be that much underwater. He lives in West Virginia, so I’m guessing he bought two pick up trucks that cost 70-80K new each.😵💫
No. He said if he sold both cars, he would get a total of $20,000 more than what he owes on them. He says he owes $100,000 on the cars and would receive around $120,000 if he sold them. Not sure I believe that, but even if he broke even, he could probably reduce his outgo for car payments by at least $1500 a month, which is close to $20,000 a year in his pocket, not the bank's. After becoming debt free, they could have enough banked on an income over $300,000 to buy nice cars for cash.
Yeah. But since they are in WV, trucks hold their value. I think he meant they could sell them for 20k more than what they owe. That's the only thing that makes sense.
They live in WV, though. I'm a nanny who used to work for 2 anesthesiologists. The husband was fulltime and made $297,000. His wife was part time and made $100,000.
Dustin, I purchased a $6k car in 2018 that was 3 years old and under 30k miles. Today, it has over 130,000 miles and has only required normal maintenance since I’ve owned it. There are deals out there.
I know right. My Audi A4 is 10 years old. When I bought it I got a mechanic to look over it. Runs great & has no issues apart from everyday wear & tear. People want an excuse to buy a new car & show off. A decent 10 year old car will last another 5 years as long as you take care of it.
I can see her getting pregnant and deciding to be a stay at home mom or working part-time. They do not seem desperate enough to buckle down and get serious about this scary amount of debt.
This is the case sometimes when the woman earns multi 6 figures. “At some point I was hoping to have a our first kid and i DoNt wANt to work at least until they are in school.” Meanwhile theyve just built a brand new house and new car student loans and the husband only earns 80k.
@@wewhoareabouttodiesaluteyo9303that's not what they're talking about.. if you are putting money towards saving for retirement then you're not living paycheck to paycheck
Problem isn't the cars they just need to cut other expenses gifting, eating out all that other stuff. Unless people are millionares they always say sell the car like come on. Student loan is the largest debt deal with that last. Watching this show for so long they are so predictable always want people to sell the car . And remember that number is with intterest ove the length of the loan. If they pay earlier they will pay less. I'd rather sell the rental trailer than the car.
A lot of people don't think of student loans as debt. They think the government will eventually get around to forgiving them, so they put off paying them back in anticipation of that.
All the experts said only 1% of people paid their students loans during pause..I had a hard time believing that people weren't taking advantage of this..obviously I was wrong UNBELIEVABLE!!!! We paid of 67000 and it felt like a boulder came off my shoulders...a lot of sacrifice but we are out of the student loan business!!! FEELS AMAZING
i doubt these callers will be going backwards in lifestyle, having said that they could pause the 401k and crush the car debt and student loans. $350,000 is a lot to work with.
Love this channel, but do they not realise that people pay taxes? The annual salary is quoted, here are gross, not net. In the UK, we have to take 40% off that! I know the tax advantages in America are sometimes better, I hear, but seriously gross salary is not what you end up with
The highest tax rate in the US is 37%. We can safely say they are bringing home over 17,000 a month. To pay off 300k in two years would be $12k a month. That does make it tight, but I hear West Virginia is cheap, so it's probably doable
@@scroogemcduckismyspiritanimal that's only federal, don't forget state could be 2 or 3% local another 1 to 2% and ssn and Medicare 6.5% and 2.35% respectively
@thebeegood1731 yeah you are right, as married filing joint they wouldn't get to that high a rate. I guess I was thinking individual and high tax states could be 40%
West Virginia is one of the lowest cost states to live in our country. There's absolutely no reason whatsoever they should be living this way. In most areas of that state, even working a job that pays the U.S. median income is living extra comfortably.
I'd like to see someone do the math for an 18 year old, working a minimum wage job and saving diligently, seeing if he could have more money than this anesthesiologists does now.
Who told you that? 18, working and getting job experience/work history and *key word* saving diligently, is how you get on your way to financial independence.
First, I don’t know anyone working minimum wage. If you are, you’re likely incompetent or worse. Wendy’s is almost twice the minimum wage. Second, jobs that are low paying are often filled by kids that are learning to work, and they certainly are not the means of financial stability. Jobs that pay little are jobs where the worker provides little. Jobs that pay much are jobs where the worker is more valuable. You add value as an employee when you build experience, hone the necessary job required skills, and develop leadership qualities. When you are honest, dependable, and respectable. How to start out for financial stability. Be someone your fellow workers and employer can respect. *Clean yourself up. *Wear clothes that communicate you expect to make yourself useful and profitable. *Clean up your mouth. *Be on time and dependable. *Be honest when you come up short. *Be true to yourself. God only made one of you. He doesn’t need two of someone else. *Pay your bills on time. *Get married before you have kids. *Stay within your means. *Grow in your job. Take on responsibilities that don’t fit your job description.
Your spending habits are what lead to prosperity not your income. Again, I'd like to see someone run the numbers of someone working a minimum wage job and saving/investing diligently to see how much they can stack up from age 18 to, say 70. Because, obviously, this family makes $350,000 a year and is super super broke.
Anesthesia is literally one of the best jobs you can study for and become (meaning you can't study to become an NFL star or Hollywood star). You can literally make 500k per year. These folks make more than SURGEONS.
My father made well below $100k. Our 4 person family was always comfortable & he’s retiring next year at 70 with almost 2.5 million saved bc of smart investing. There’s no excuse for living paycheck to paycheck-they should be ROLLING in $
Telling people who make $350k to only have $1k in savings for two years is CRAZY. I understand that this is their formula but there should be tiered baby step #1 emergency funds based on income.
Uhh....if anything they need an emergency fund less because they will be able to cash flow an emergency next month. At any rate, the principle remains the same. Remove your security blanket and it lights a fire under your butt real fast
my thoughts exactly, liabilities are too much to only keep 1K, that's stupid. like telling a low income earner to keep 100 bucks. they have the income to work the debt snow ball and be free in less than 3 years. and probably mortgage free soon after that.
A 1k "emergency fund" means that if payroll makes a mistake and their mortgage hits before a paycheck they're getting hit with late fees. They should absolutely have 1 month of expenses in their checking account.
Gratitude for the little things is important. Deal with insecurity with a spiritual program or a counselor. No good reason to go into debt to impress people who don’t matter.
$340k in west Virginia is like $2 million in normal world. Combined $340k so who makes what? She a anesthesiologist I assume if she working at a bare minimum $150k/yr so he makes $150k or less.
@@djpuplex yeah actually more rural states pay more than a lot of big cities and more desirable areas. They need to in order to get the doctors and nurses to stay. They all charge Medicare and Medicaid for most work, so the hospital makes as much as a large hospital in higher cost of living areas
@@buckibankerNO, most do not make anywhere close $300k.. especially in WV 😂 why do people always love to use the top 1% in the biggest well paid cities as some ‘standard pay’ 😂
Unfortunately this is not a surprise. Majority of people don't see where their money goes. too much car, real estate, student loans. surprising they have no credit card debt. thanks for sharing.
I always feel like they’re trolling with these calls and it’s hilarious to hear the financial struggles of people making 350k a year. If folks netting 55k can make it work then you have what we call a spending problem.
Building a barn isn't being irresponsible, especially if you have animals that need that shelter. Buying a $100K car to show off to strangers at a stoplight is irresponsible. Gambling or drinking it away is irresponsible. What you did with the barn is at worst just a timing issue. (I live on an animal farm, so I understand needing a barn or other structure.)
They should still probably max out their 401ks for tax reasons, but they do need to shift their spending profile down a lot. They are spending an additional $8k or so per year in cash just to have built that barn or for those cars. But it's probably the other stuff that they are buying that is just as bad.
I would keep the $25K for emergency ($1000 isn't enough) and since they are making so much money I would continue the 401 investing and such and take three years to pay off debt. They can still have a good life, living modestly, not as poor people, and crush this debt in three years easy. Then all the money they earn is their own, they have the investment that wasn't stalled and they can add to the $25K that is currently in cash.
@@dankbreh9013I don't get it either. Selling the cars is the best plan to make this thing move faster and be clear of it all. And they can still afford something nice after selling them
I got a high school diploma and make arround 75k a year mi wife stays home to take care of the 2 kids that we have and i save arround 15 to 20k a year. These guys are rich broke people
If they are farming the land $1000 is definitely NOT enough of an emergency fund. I’d reserve more like $10k and replace cars as I found a suitable replacement.
Irresponsible is an understatement for these folks. This is why we need papa Dave answering these calls. George is way too nonchalant about this call. Dave would have lit him up
Sometimes smart people are just ignorant. My wife works in finance and we make about that and yes, she had to go step by step through FPU before I would marry her. PS: we both now own 12K cars. It’s the first time she’s ever held a title in her hand.
@@amireallythatgrumpy6508 when I say retiring I don't mean just relaxing. I only mean no longer being a w-2 employee. Many people I know make far more being retired than they ever did working.
$340,000 a year!! I work my butt off and make $21 an hour...health issues with stress prevent me from high powered jobs. I'm doing financially better than when I made over $100k. I drive a 2010 F150. It runs like a top. Don't need a $50k vehicle. Lol!
All these people do is talk about money. You love money too much. Live life as it was meant to be lived. You could die today. Stop contributing to the 401(k). Stop calling ordinary people to ask for money advice.
Pay your loans back. You owe someone you should pay your debt, you deadbeat. It's typical trying to look rich, but owe tons of money. Your wife is bringing in the money, and you're hanging on her coattail.
Not where we live 350 000 is what you need to live and afford life it's a good income but in Ontario we pay so much tax and houses start at a million .
@@iwantmorenews557 I heard! I have friends that have sports cars mustangs Camero Challenger and Porsches that can’t put $20 in the gas ⛽️ tank. Hood rich 🤑 ! 💰 🚂 🏦
You know what makes a difference in financial planning? The real numbers for each and every spending, actual sitting down with the board and a marker, calculations, talking, planning, agreeing to new rules, etc, no TV on the background, no food on the plate, total focus and concentration of two ppl ready to attack their financial problems. Thinking it quietly in your head on a traffic light won’t help.
These people can have a million dollars in savings in less than 7 years, if they stopped overspending. Pay $350k debt in 2 years. Put $200k in savings, investments, etc. for 5 years. Boom, in 15 years they could probably retire with a few million dollars in the bank, paid off land, cars, and still live very comfortably in the meantime. I wish I had that problem!
Haha I have a reliable used car, we bought a new model and a reliable brand. If you keep the maintenance up and have a mechanic you trust check it out every few months you’ll be fine. I’ve had my car two years, it’s owned free and clear and the only issue I’ve run into is replacing some bolts. All he has to do is have a mechanic check the used car out thoroughly before buying.
keep 20K in savings, DO NOT go down to the 1K. thats stupid with the liabilities they have. pause investing, and pay things down, totally do able. if the cars are reliable just keep it. they will be fine. and in 3 years they could have more than the ever know what to do with.
So after taxes in wv, they on average would bring home right at 21k a month. Lets say their total expenses to live is 6k? Ill be generous with that. So if they sold their cars, bought two 10k cars from the sell of both, and paused investing, they could be done in 13 months. That's really quick for 200k in student loans and 100k worth of cars!
There is just something not about about this story. Because even after taxes and maxing out the 401k you’re talking about 15k. The big question is how much is the main house they say in if someone rented out the farm. They still have $10k plus not accounted for after car payment.
These are the kind of people who buy everything on credit cards and pay the minimum payment every month. I bet he has a garage full of financed toys . I make a third of that and own my house completely, Use just a simple debit card and am 100% Debt free + I am an everyday millionaire and on top of that raised a kid and did it mostly on 1 truck driver salary. I just don't get how people without enormous medical bills can get in that much debt.
He made a comment that there relatives or friends keep putting money into their cars....but yet you buy a new one that supposedly doesn't break down and every month you have a payment????I have a 2009 Honda fit for 2 years now and 179000 miles no issues just put tires on in so I spent 400 bucks in two years .....theirs an ego issue here
The amazing thing is tens of thousands of families are probably just like this guy. I think in our society this has become the accepted norm. This keeps the banks happy.
If they sold both those overpriced cars, and if he's right about getting $20k free and clear out of them, they could combine that with the 25k in savings and both of them could drive a $20,000 car without digging any further hole. Then they'd only have 200k left to pay off and could do that in 2 years *while still* bringing home $10k a month
They are netting some $15,000 per month after taxes & 401K. Let's say $4000 for mortgage, utilities and food which is doable. Net's them $11,000 monthly for payments. Use $24,000 from savings to pay down/off one car loan leaving about $26,000 on the car loans. Then $4000 extra per month they could have them paid off in 6 months. Pay student loans with $7000 extra per month for 6 months, then add in car payment amount and they're up to $11,000 per month which is over $100,000 in the first year and loan payoff in second year. They would be debt free in 2 years and able to save some serious cash going forward.
The mind must become a millionaire first before the body can experience it. Best thing I did watching the Ramsey show was ignore the numbers. Focus on the message.
