Financial expert Dave Ramsey told a millionaire couple that their high net worth meant nothing if they couldn't cover their monthly expenses.
Millionaire Couple Faces Financial Crisis Despite High Net Worth
On Monday, caller Caroline asked on The Ramsey Show about her family's financial struggles after a series of setbacks.
The couple, who had been on Ramsey's "Baby Step 4" of investing and building wealth, called in seeking advice after a series of financial setbacks.
The husband lost a job, two income streams disappeared and they depleted emergency savings and retirement funds while trying to sell a property to pay off debt.
High Mortgages And Overspending Put Cash Flow At Risk
Ramsey pressed them on their monthly expenses, which totaled roughly $15,000, largely due to multiple mortgages.
"You bought houses you can't afford, honey," Ramsey said. "Get your outgo where it fits within your income."
The couple revealed that one property alone was worth $1.8 million, but the mortgage and upkeep were crippling their cash flow.
Ken Coleman, Ramsey's co-host, noted the two largest mortgages were $4,600 and $3,400 per month.
Ramsey's advice was clear: He urged them to sell all non-essential properties and focus on a paid-off primary residence.
"Your net worth is invalid if it's tied up in debt," Ramsey added, stressing that cash flow matters far more than paper wealth.
Ramsey Slams Couple For Choosing Debt Over Financial Freedom
Last month, a Las Vegas couple earning $200,000 annually faced tough criticism on The Ramsey Show after admitting they had "always maintained debt … just because … we can afford it."
Ramsey called their Utah plan to sell their $800,000 house and rent "absolutely bullcrap" and urged them to keep the house while aggressively paying down debt, highlighting $70,000 owed on a HELOC, $70,000 on cars, and $16,000 on a trailer.
Ramsey criticized Americans for mismanaging income and falling into debt-fueled lifestyles.
"You’re not broke because you don’t make enough. You’re broke because you give your income to everyone else," condemning credit cards, car loans, student debt and borrowing against homes for luxury upgrades.
He encouraged viewers to create a zero-based budget, pay cash, and use the debt snowball method, emphasizing that “your income is your #1 wealth-building tool” and that these steps can help break the paycheck-to-paycheck cycle.
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