I Lost 80% of My Income and Might Lose Everything

Summary

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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.

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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]

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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])

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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]

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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]

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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]

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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]

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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

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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])

Transcript

[Host/Announcer]

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[Guest/Client (Business Owner)]

Recently, in the last month, I own a business. I've had a business now for going on three years. This will be my third year. 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.

[Financial Coach 1]

Oh, gosh.

[Financial Coach 2]

So what was it and what is it now?

[Guest/Client (Business Owner)]

So my income was 6,000 or really 4,000, and it's dropping down to about 2,000.

[Financial Coach 2]

Okay, so you went from four to two.

[Guest/Client (Business Owner)]

Well, really six to the two. But I was. I was putting money back in savings and using that for the business. Got it.

[Financial Coach 2]

But you were kind of taking from the business. You were taking six for your own personal goals.

[Guest/Client (Business Owner)]

Yes, sir.

[Financial Coach 2]

Okay.

[Financial Coach 1]

Are you actively trying to replace that since you know that it's going to be cut? I mean, are you. Yeah. What's the plan for that?

[Guest/Client (Business Owner)]

So I've been going and meeting with different owners, and I actually am looking at taking on more contracts than what I had before. Others don't have the contract signed right now.

[Financial Coach 1]

Oh, good. Okay.

[Financial Coach 2]

So in the pipeline, you got some leads here?

[Guest/Client (Business Owner)]

Yes, sir.

[Financial Coach 1]

Good, good, good, good.

[Financial Coach 2]

But in the meantime, it sounds like there's other pieces here. Do you have debt?

[Guest/Client (Business Owner)]

Yes, I do. To be completely honest, I'm behind on my taxes. In my personal life, I'm looking at doing a bankruptcy. I have enough money saved up right now to quote me by for two months if something does not come through. And then after that, I will basically lose everything that I have built. I have four children and I have a fiance.

[Host/Announcer]

Wow.

[Financial Coach 1]

Okay. How much debt do you have?

[Host/Announcer]

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[Financial Coach 2]

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[Financial Coach 1]

How much debt do you have?

[Guest/Client (Business Owner)]

So after the bankruptcy, it will basically.

[Financial Coach 1]

Wait, are you. Wait, have you filed? Give me. Where are we at? When. When you say after the bankruptcy. Is that in process?

[Guest/Client (Business Owner)]

I have. Yeah, it is in process. So I have one more final payment before I'll have my court date.

[Financial Coach 1]

Okay. And can I Ask why you filed.

[Guest/Client (Business Owner)]

So I had a few judgment put on on me from a past marriage that I had.

[Financial Coach 1]

Okay.

[Guest/Client (Business Owner)]

I took all the debt from that and they reached out to me and put some judgments on me for some vehicles that we had.

[Financial Coach 1]

Okay, so you have coming out of that and do you have, you know, you have no money personally saved for.

[Guest/Client (Business Owner)]

These upcoming months other than two months worth? That's correct.

[Financial Coach 1]

Two months.

[Financial Coach 2]

How much do you owe the IRS?

[Guest/Client (Business Owner)]

I would say about 26,000.

[Financial Coach 2]

And that. Is that back taxes or is that, Hey, I should have been making these estimated payments. It'll be due in April and I don't have it.

[Guest/Client (Business Owner)]

Yeah. So that's back taxes. And then come April will be for another tax year and you don't have.

[Financial Coach 2]

That'll be another 26 or so that you'll owe.

[Guest/Client (Business Owner)]

Yes, yes.

[Financial Coach 2]

Okay. So we basically owe, you know, 50 grand to the IRS. What other debts do you currently have?

[Guest/Client (Business Owner)]

I have a truck that I'm been working diligently to get paid off. I'm about $900 away from having that paid off.

[Financial Coach 1]

Oh, good, good.

[Guest/Client (Business Owner)]

I also have a family vehicle that I've been working diligently. I'm about $600 from having that paid off.

[Financial Coach 2]

So fifteen hundred dollars and you free up both car payments?

[Guest/Client (Business Owner)]

Yes, sir.

[Financial Coach 2]

I would dip into that savings you have and pay those off today.

[Guest/Client (Business Owner)]

Okay.

[Financial Coach 2]

That lowers your expenses measurably.

[Financial Coach 1]

Yeah. How much are each. How much is each car payment?

[Guest/Client (Business Owner)]

So combined they're about 900 bucks.

[Financial Coach 1]

Okay. Yeah. That and then Robert, I'm like, I don't know, I'm just thinking out loud here. But 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. Can you go work?

[Guest/Client (Business Owner)]

Yeah. So I'm actually, I'm looking at going into drill and making about 10k a month. And the only thing that's holding me up from that is one of this. This is another issue I have. Me and my fiance disagree on finances quite a bit. And so this last Sunday I started up FPU nine week course. So I'm currently trying to have that conversation with her on cutting back and canceling out debt to improve our financial life.

[Financial Coach 2]

So when you say you're not aligned, where is she at on all this financial situation? Does she even know what's going on?

[Guest/Client (Business Owner)]

Yes. So she does know what's going on and she trusts me to provide. I've always provided however you Know, 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. And we don't see eye to eye on that.

[Financial Coach 2]

Does she work outside the home?

[Guest/Client (Business Owner)]

No, she currently, she's a stay at home mother with our four children.

[Financial Coach 2]

Okay. So does she understand the reality that, hey, we have $2,000 to cover all of our bills and we can't afford that, so therefore we don't have an option but to cut. This isn't like a, hey, let's just really hunker down and get rid of the debt. You guys are in storm mode right now.

[Financial Coach 1]

Yeah. How old are the kids?

[Guest/Client (Business Owner)]

So I have a nine year old, a six year old, a four year old and then a three year old.

[Financial Coach 1]

Okay. Yeah. I mean, I don't know. In my head this is like a little bit on fire. Right. I mean, you're coming out of a bankruptcy. You guys have $2,000 with tech that, you know, you have the IRS that's going to be freaking.

[Financial Coach 2]

You got to focus on that before anything else.

[Financial Coach 1]

Yeah. And so for me it's all hands on deck. So I need to be looking at what she can do to bring home money from being a stay at home mom. I, if I'm you, I'm looking at three different jobs or the 10 or the drill, you know.

[Financial Coach 2]

Yeah. How sure is the drilling gig and what do you need to do to actually get the job?

[Guest/Client (Business Owner)]

It's for sure. I just have to go and do the paperwork in a different state and go for the training classes.

[Financial Coach 1]

How long does that take?

[Guest/Client (Business Owner)]

Well, they paid me during training. I could probably have that within three weeks.

[Financial Coach 1]

Go $10,000 a month.

[Financial Coach 2]

Is she on board with this? I don't care. Because if you're ditching the family for two weeks, is this going to be a problem? And your business as well, they don't have money. No, I'm making sure this is a reality. He can just go do this right now.

[Financial Coach 1]

I know.

[Guest/Client (Business Owner)]

So the current situation with it is I'll have to be gone for three weeks, come back home for two weeks. So there's that and then like ongoing. There's also. Yeah, it's ongoing every month. It would be that way. And then there's also the current talk of should I give up on a business that in our first year we made almost 200,000 and did fantastic. However, we did not financially save back from this.

[Financial Coach 1]

Yeah.

[Guest/Client (Business Owner)]

You know, it was kind of money.

[Financial Coach 1]

Yeah. Listen, if I'm. You guys, I'm like, we have to have. We have to have some major changes in our lives because we have $50,000 that we're going to owe to the IRS with both, you know, both years. You know, we were. I don't know, all. To me, I'm like, do what you have to do for six months and let's reevaluate in August. Like, go do the drilling thing and.

[Financial Coach 2]

Put every extra set for six months.

[Financial Coach 1]

I mean, that. That'll clear out the debts. You know, maybe you do it for a year and that's it. I mean, talk to people that are deployed, right? I mean, they're gone from their families for six months at a time. So it is possible. I'm not saying it's the only option, but it's a very, very great option that's right in front of you for a short season, for just a season. It doesn't be forever. And then when you guys actually have your head above water and you actually have somewhat of stability, then we can look to see, okay, what do we want to do with this business and should we, you know, get it back going? But if I'm y', all, and I'm coming out of bankruptcy and my income's being shot, I'm. I'm just looking anywhere to make money at this point to feed four kids and yes, your fiance. I'm sorry, she needs to grow up and understand how math works, that this is not like to live in.

[Financial Coach 2]

I want to keep up my lifestyle.

[Financial Coach 1]

You don't make $200,000 anymore. That's what she has to realize. You don't. So what are you going to do?

[Host/Announcer]

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