Is it possible to earn $600,000 a year and still feel broke? One couple in San Diego is living proof that a high salary doesn't always mean financial freedom.
Despite raking in more than half a million dollars annually, they struggle to save and are stuck living paycheck to paycheck. Financial guru Dave Ramsey had some strong words for them—and pointed out one expense he called downright “disgusting.”
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When a $600K Salary Doesn't Stretch Far Enough
During a recent episode of "The Dave Ramsey Show," a caller named Bill revealed his financial dilemma. He and his wife bring in a combined salary of $600,000, yet their monthly expenses hit a staggering $30,000. Ramsey, known for his blunt financial advice, immediately zeroed in on their spending habits.
So, where is all that money going? According to Bill, their biggest expense is their mortgage payments. They own two properties: their primary home, which houses their five children, and an investment property.
Together, these cost them about $12,000 per month. That still left $18,000 unaccounted for, leading Ramsey and his co-host, George Kamel, to press for details.
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It turns out that a sizable chunk of their spending goes to charity, groceries, utilities, and other essentials. But one line item made Ramsey lose it: a leased luxury SUV. Despite their substantial income, Bill and his wife chose to lease instead of buying a vehicle outright.
Ramsey didn't hold back, calling the SUV lease a "disgusting" waste of money. With their financial standing, he argued, there was no reason they couldn't pay cash for a reliable vehicle. Instead, they were throwing away money every month on a depreciating asset.
Bill and his wife fit into a growing category of Americans known as HENRYs—High Earners, Not Rich Yet. Despite earning well above the national average, they don't feel financially secure. According to The Wall Street Journal, rising costs, student loan debt, and lifestyle inflation are major culprits behind this phenomenon.
To put their spending in perspective, the average U.S. household spends about $6,440 per month, totaling $77,280 per year, according to Ramsey Solutions. Bill and his wife are burning through five times that amount—and still feel strapped for cash.
Ramsey's advice to Bill was simple: create a detailed monthly budget with his wife. Without a plan, he said, money will disappear faster than they realize. Every dollar should have an assignment—whether for savings, charity, or daily expenses.
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