Dave Ramsey Baffled By Family Living Paycheck-To-Paycheck On $600,000 A Year—'Why Do You Need $18,000 A Month To Run Your Household?'

A recent call to Dave Ramsey’s show left the financial guru shocked when a caller revealed that, despite earning between $500,000 and $600,000 a year, he and his wife were barely saving anything as their monthly expenses are a staggering $30,000.

A High Income, But No Savings

The caller, who owns a service-based business while his wife earns $100,000 at her job, admitted that taxes and expenses leave them with almost nothing left over. Ramsey immediately pointed out the glaring issue: “I think the $30,000 a month expense is your clue.” But how much of that is debt payments?

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The caller explained that $12,000 went toward mortgage payments on their primary residence and an investment property. The rest was spent on charity ($8,000 to $9,000 a month) and household expenses like groceries, utilities, and car payments.

That's when Ramsey dropped the question that summed up his disbelief: “Why do you need $18,000 a month to run your household?” He was especially puzzled by their car expenses. “Why would you have a car payment when you make $600,000 a year?” he asked, criticizing their decision to lease a car for $750 a month instead of buying it outright.

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Ramsey emphasized that the couple's problem wasn't income—it was their lack of financial control. “If I woke up in your shoes, you've got a level of disgust that says this is not okay. We make this kind of money; we shouldn't have no money.” He compared their situation with running a business poorly. “If you had a person working in your business managing a section of it as poorly as you are managing your finances, you would fire them for incompetence.”

His advice? They need to start budgeting intentionally. “Do a detailed budget with your spouse and come into agreement on what we want to give, what we want to save, and what we want to spend,” Ramsey advised. He stressed that every dollar should have an assignment before the month begins.

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Ramsey also suggested they reconsider their heavy charitable giving—at least temporarily—if they're doing zero investing. “Generosity is awesome, investing is amazing, enjoying money—yes! You should do all three things. But very, very, very, very, very intentional. And right now, you’re not intentional.”

It’s obvious that this couple isn't broke because they don't make enough money. They're broke because they aren't managing it properly. “You're just throwing a bale of dollars over the fence and then coming back to see what's left later.”

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