Episode Overview

Title: I Lost 80% of My Income and Might Lose Everything
Podcast: The Ramsey Show Highlights
Date: February 5, 2026
Theme:
This episode centers around a small business owner grappling with a sudden, drastic drop in income—down 80% after losing a major contract. Facing looming bankruptcy, IRS debt, relationship tensions, and supporting a family of six, the hosts guide him through immediate financial triage, tough conversations, and radical action steps. The show’s tone is empathetic but direct, with hard truths delivered alongside actionable advice.

Key Discussion Points & Insights

1. Collapse of Business Revenue

• Background:
  • The guest owns a business entering its third year.
  • First year was highly successful; second year suffered after losing a critical contract.
• Income Impact:
  • Old income: $6,000 (sometimes $4,000) per month
  • New income: about $2,000 per month ([00:32])
  • The loss accounts for an “80%” drop in income.
  • He’s been using savings to keep the business afloat.

Quote:
“I own a business... First year I did great. Second year I cut back and I had too many eggs in a basket and they went with a different contractor. And so to speak, I'm losing about 80% of my income.”
— Guest (Business Owner), [00:07]

2. Immediate Steps and Concrete Pipeline

• Job Hunt:
  • Guest is meeting with other business owners, pursuing new contracts—but nothing secured yet ([01:17]).
• Pipeline Status:
  • “In the pipeline, you got some leads here?” — Financial Coach 2 ([01:29])
  • The guest affirms, but nothing signed yet.
• Emergency Savings:
  • Two months’ worth of expenses in savings, then: “I will basically lose everything that I have built.” ([01:40])

3. Debt Crisis: Bankruptcy and Tax Burden

• Personal Debt:
  • Bankruptcy is in process, triggered by judgements from a past marriage, mainly vehicle-related ([02:56], [03:07]).
  • IRS Back Taxes: Owes $26,000 in back taxes, with another $26,000 expected soon (“about 50 grand to the IRS”) ([03:43]-[04:06]).
• Vehicle Debt:
  • One truck ($900 left) and one family vehicle ($600 left) nearly paid off.
• Advice:
  • Coaches urge him to use savings to quickly pay off the remaining $1,500 on vehicles to “lower your expenses measurably.” ([04:34]-[04:39])

Quote:
“So, fifteen hundred dollars and you free up both car payments?”
— Financial Coach 2, [04:30]

4. Relationship Strain and Tough Conversations

• Conflict:
  • The guest’s fiancée is not financially aligned. She’s resistant to cutting streaming services and discretionary expenses ([05:06], [05:52]).
  • She's a stay-at-home mom to their four young children (ages 9, 6, 4, and 3).
  • The business owner has recently started a Financial Peace University (FPU) course to improve financial communication.
• Coach’s Reactions:
  • “If I’m you, I’m looking at three different jobs or the 10 or the drill, you know.” — Financial Coach 1 ([07:11])

Quote:
“We don’t see eye to eye on things such as cutting out Spotify, cutting out all the things that are not necessities to be able to cancel out debt and basically restart.”
— Guest (Business Owner), [05:52]

5. Critical Action Plans Suggested

a. Immediate Employment Shift

• Drilling Job Opportunity:
  • Potential to make $10,000 per month, requires three weeks away for training in another state; ongoing schedule would be three weeks away, two weeks home ([07:31], [08:04]).
  • Payment starts during training; can start in three weeks.

b. Family Dynamics and Harsh Realities

• Coach Guidance:
  • “This is storm mode... all hands on deck.” ([06:25])
  • Suggests the fiancée also seek income opportunities despite her reservations.
• Radical Downsizing:
  • “We have to have some major changes in our lives...” — Financial Coach 1 ([08:38])
  • Urges the guest to focus only on the essentials, “do what you have to do for six months and let’s reevaluate in August.” ([09:01])
  • Advocates for full commitment to the high-paying drilling job, comparing it to military families’ sacrifices.

Quote:
“You don’t make $200,000 anymore. That’s what she has to realize. You don’t. So what are you going to do?”
— Financial Coach 1, [09:50]

Notable Quotes & Memorable Moments

• “If you know you're going to be going down to $2,000 and you know, there's contracts in the pipeline, but they're not signed and there are no guarantee. Go get another job.”
  — Financial Coach 1, [04:48]
• “All hands on deck...this is storm mode right now.”
  — Financial Coach 2, [06:25]
• “I’m just looking anywhere to make money at this point to feed four kids and yes, your fiancée. I’m sorry, she needs to grow up and understand how math works.”
  — Financial Coach 1, [09:38]

Important Timestamps

• 00:07: Guest introduces his business, the revenue drop, and initial crisis
• 01:17: Efforts to find new business and keep the pipeline open
• 01:40: Admits to being behind on taxes, bankruptcy threat, and family responsibilities
• 02:43 - 04:06: Deep dive into debt, IRS liabilities, and asset rundown
• 04:30 - 04:39: Coaches recommend using savings to pay off vehicles immediately
• 05:06 - 06:25: Explores marital disagreement over finances and necessary lifestyle changes
• 07:31 - 08:04: Discussion of drilling job logistics and sacrifices ahead
• 08:38 - 09:38: Coaches deliver tough love—emphasize sacrifices and realignment of priorities

Conclusion & Action Steps

Summary:
The episode spotlights the brutal reality check when entrepreneurial hopes hit a wall. Outlined are clear action steps:

• Liquidate debts by paying off vehicles now
• Shift to high-paying work immediately, even if it means family sacrifice
• Snap into “storm mode”—radical spending cuts, zero tolerance for luxuries
• Communicate, but don’t delay essential decisions for marital agreement: “math doesn’t care about feelings right now”

Overall Tone:
Empathetic but no-nonsense. The hosts care, but won’t sugarcoat the urgency.
“Do what you have to do for six months…then reevaluate.” ([09:01])