I Make $200,000 and Have Nothing To Show For It

Summary

Podcast Summary: "I Make $200,000 and Have Nothing To Show For It"

Episode Details:

• Title: I Make $200,000 and Have Nothing To Show For It
• Host/Author: Ramsey Network
• Release Date: April 21, 2025
• Duration: Approximately 7 minutes 45 seconds

Overview: In this episode of The Ramsey Show Highlights, Jackson, a 25-year-old heavy-duty mechanic earning nearly $200,000 annually, seeks guidance on creating a financial plan despite being debt-free. Hosted by Dave Ramsey and featuring insights from John Delony, the discussion centers on the importance of intentional financial management, proactive budgeting, and setting clear financial goals to ensure long-term success and satisfaction.

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1. Introduction to Jackson’s Financial Situation

Jackson initiates the conversation by expressing his concern about having a substantial income without a corresponding financial plan. Despite being debt-free and earning a significant salary, he fears squandering his earnings due to a lack of intentional financial strategy.

• Jackson (00:06): “I make too much money to not have some sort of a plan. And I don't want to feel like a fool who squanders a fortune.”

2. Dave Ramsey’s Initial Encouragement

Dave Ramsey responds positively, commending Jackson for his proactive approach at a young age. He emphasizes that many individuals never contemplate their financial strategies, often ending up with little to show for their hard work.

• Dave Ramsey (00:33): “You're very wise. You got a huge head start at 25. Congratulations. Just asking the question puts you in the top 5%, dude. So good.”

3. The Power of Proactivity in Financial Management

Ramsey delves into the concept of proactivity versus passivity in financial planning. He references Dr. Stephen Covey’s Seven Habits of Highly Effective People, highlighting the importance of being proactive—a trait that ensures individuals shape their financial destiny rather than leaving it to chance.

• Dave Ramsey (00:55): “A budget is people telling their money what to do instead of wondering where it went.”

Ramsey introduces the EveryDollar app as a tool to help Jackson create a detailed budget, assigning every dollar a specific purpose to foster intentional spending and saving.

4. Identifying the Core Issue: Lack of Intentionality

Ramsey identifies the primary mistake people make with money: a lack of intentionality. Without a deliberate plan, individuals risk mismanaging their finances despite high incomes or low debt.

• Dave Ramsey (01:40): “The number one mistake people make with money is they're not intentional.”

5. Jackson’s Current Financial Practices

Jackson describes his current approach to money management, which lacks structure. He primarily pays bills as they come, without closely monitoring his account balances or having a clear financial trajectory.

• Jackson (02:57): “I don’t really look at my account all that much. I just kind of know there's always a good chunk of change in there.”

6. John Delony’s Visualization Technique

John Delony intervenes, encouraging Jackson to envision his life at 30. This visualization includes owning a house and running his own mobile mechanic business. By creating a vivid mental picture of his future, Jackson can establish clear financial goals and remain disciplined in his spending.

• John Delony (03:59): “Most people have these things that float in and out of their heads. You’re laying under a truck… your drive to work, your drive home… What would that life look like at 30?”

7. The Importance of a Detailed Vision and Flexibility

Delony and Ramsey discuss the significance of having a high-definition (HD) picture of one’s financial goals. This involves detailed visualization and creating a flexible path to achieve those goals without becoming rigid or overly attached to specific outcomes.

• Dave Ramsey (05:18): “Picture and detail it out. Create your free EveryDollar budget today.”

• John Delony (07:08): “Get a real clear picture and get a path towards it and then hold it pretty loosely.”

They highlight that while having a detailed vision is crucial, it’s equally important to remain adaptable as circumstances evolve.

8. Real-World Application and Personal Anecdotes

Ramsey shares a personal anecdote about his own aspirations at 17, emphasizing that while his specific desires (like owning a Mercedes) changed over time, the underlying direction remained consistent. This illustrates the balance between having clear goals and being open to their evolution.

• Dave Ramsey (07:00): “When I was 17, I saw… a two-seater Mercedes… I drive a really nice cool two-seater cars today. It’s not that car, but it’s the direction.”

9. Conclusion: Embracing Intentional Financial Planning

The episode concludes with a reinforced message on the necessity of intentionality in financial planning. By utilizing tools like the EveryDollar app, setting clear and detailed financial goals, and maintaining flexibility, individuals like Jackson can ensure their hard-earned money works effectively towards their envisioned future.

• Dave Ramsey (07:45): “Create your free EveryDollar budget today. The simplest way to budget for your life.”

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Key Takeaways:

• Proactive Financial Management: Being intentional with money ensures that earnings are directed towards meaningful goals.
• Budgeting Tools: Utilizing budgeting apps like EveryDollar can streamline financial planning and accountability.
• Visualization: Clearly envisioning future financial states aids in setting achievable goals and maintaining motivation.
• Flexibility: While having detailed goals is essential, remaining adaptable allows for adjustments as circumstances change.

Notable Quotes:

• Dave Ramsey (00:55): “A budget is people telling their money what to do instead of wondering where it went.”
• John Delony (03:59): “What would that life look like at 30?”
• Dave Ramsey (07:45): “Create your free EveryDollar budget today. The simplest way to budget for your life.”

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This episode serves as a compelling reminder that regardless of income level, without intentional financial planning and clear goal-setting, one might end up having "nothing to show for it." By adopting proactive strategies and utilizing available tools, individuals can secure their financial future and achieve their personal aspirations.

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app. Start budgeting for free today.

[Jackson]

I've been making some pretty good money working up here. I work as a heavy duty mechanic and last year I made just shy of $200,000 a year. And I'm debt free, but I don't have any sort of a financial plan and I feel like I make too much money to not have some sort of a plan. And I don't want to feel like a fool who squanders a fortune.

[Dave Ramsey]

Good for you. Very wise. How old are you?

[Jackson]

I'm 25 years old.

[Dave Ramsey]

You know, some of the guys you work with have never even had the thought that you've had. They spend their whole life working their butts off and thank God it's Friday, oh God, it's Monday and got nothing to show for it. So you're very wise. You got a huge head start at 25. Congratulations. Just asking the question puts you in the top 5%, dude. So good.

[Jackson]

Yeah, that's, that's kind of why I'm trying to ask the question because I set a pretty high standard for myself.

[Dave Ramsey]

No, it's not that high, but it's. I mean, but you're way ahead of the game. You're way ahead of the game. So you know, what you're finding is this. And the way you pose the question is very wise. Dr. Stephen Covey wrote a book that was vastly popular for about 30 years. It was on the New York Times and on the bestseller list for years and years and years called the Seven Habits of Highly Effective People. The number one habit of the seven was that highly effective people are proactive. They happen to things instead of it happening to them. And so that's the position of your question. You are now going to happen to your money instead of it leaving and you having no idea where it went. And John Maxwell used to say that a budget is people telling their money what to do instead of wondering where it went. And so instead of saying, ready, fire, aim, we're going to say, ready, aim, fire. And so we're going to write it down before the month begins. Where every dollar is going to go using the EveryDollar app, the world's best budgeting app. It's free for you to download and, you know, give every dollar an assignment contract with yourself. If you have a spouse contract with your spouse, that this is, we're in agreement, this is what we're going to do with the money and then we're going to make the money do that. I'm often asked by reporters. What's the number one mistake people make with money? And the answer, they think it's going to be credit cards or student loans or something? No, the answer is they're not intentional. And so we're going to flip this for you and say you're going to become a very intentional. And then that's going to lead you to get out of debt, to save, to invest, to have the proper insurance in place. It's going to lead you to make smart decisions because you actually are paying attention instead of, instead of asleep at the wheel. So that's where we start. And so because right now you just throw the money in the account and then when it's empty, you quit spending.

[Jackson]

Yeah, I mean, for the most part, I don't really like, I get my paychecks and I pay my bills with it and then I don't really look at my account all that much. I just kind of know there's always a good chunk of change in there and it usually fluctuates between 15 and 25,000. Just kind of up and down from there. But it's not really going ahead from there because I'm kind of just living, you know, and I need to make some sort of a plan. I thought because I'm making way too much money again.

[Dave Ramsey]

Yeah, that's. You have the symptoms of someone who's getting ready to spend. You're saying the words of someone who's getting ready to change their life. You have a healthy disgust. You're like, I make too much money, I work too hard to be this broke. I'm dissatisfied. And so you're ready to change. That's perfect, man.

[Jackson]

Absolutely.

[John]

Jackson, if you could close your eyes and imagine 30 year old Jackson, what would your life look like? Would you have a house? Would you have your own, your own business where you got two employees working for you? What would that look like?

[Jackson]

I guess if I were to close my eyes and dream about it, it'd probably be, yeah, a house and some sort of a business. I, I work as a mechanic, so some sort of a mobile mechanic truck. Awesome. That's kind of the dream for me.

[John]

So here, here's. Most people have these things that float in and out of their heads. You, you're laying under a truck, turning wrenches, you got somebody's podcast on and maybe your drive to work, your drive home, you've got this, man, one day I want to have a thing. What's really cool is when somebody in your position, because most people we talk to are, man, they've got a. They've got a couple years ahead of them to just get to zero. Right. You're already, you're ahead of the curve. I would love for you to spend some time and this sounds so cheesy, man. So just go with me. Really Picturing yourself at 30 with. In your own house and what that house would look like, and then get online and find out how much that house would cost. And then, as Dave says, you start being intentional about. Man, going out with the boys on the weekend is fun and cool, but, dude, I have a picture of the house. So I'm not going to blow $111,000 at various bars this year. That 11 grand is going to go into an account because I want to have X dollars. Who. When I'm 30, I'm walking into my house that I own and nobody else owns it.

[Dave Ramsey]

Yeah. What's it, what's it cost to buy and equip this truck?

[John]

Yeah. So you're. You want to have a real firm.

[Dave Ramsey]

Picture and tail it out.

[John]

You get a marriage.

[Dave Ramsey]

Get a picture of it and put it on the refrigerator.

[John]

Yeah. You'll get married and that picture is going to change because you're going to do one together. But you're, you're. That's where that intentionality, it gives you a map towards a thing you want to get to. Does that make sense?

[Dave Ramsey]

Yeah. John's right. When you dream in hd, that's it. High definition, where you can see the sweat coming out of the pores of the players. You want to, you want to dream in great detail as to what it's going to look like, what it's going to feel like when you walk in that house. How are you going to stand when you walk in there? Your chest is going to be out, your shoulders going to be back.

[John]

That's right.

[Dave Ramsey]

You're going to be slumped over with your head down, and your buddy's going.

[John]

To be coming over to your house to hang out, not paying some, some bar owner to go into their facility. Right. It's just a different thing. Or you and your wife are going to walk into this house when you're, when you're 30.

[Dave Ramsey]

Yeah. And you're. It's a safe place for you, your kids, that kind of thing have you found.

[John]

So something that has come up a few times over the last couple years is people get this HD picture and they strangle it. And I'm starting to wonder if having that HD picture is step one and then step two is having the discipline or the patience to hold that pretty loosely too. You get what I'm saying?

[Dave Ramsey]

Oh yeah. Cause it's never going to be exactly.

[John]

It's never going to be exactly what it is.

[Dave Ramsey]

Listen, you don't want the house that you think you're.

[John]

You think of as a 25 year old.

[Dave Ramsey]

Well, because you know, they don't make them like they used to, thank God.

[John]

Right, exactly.

[Dave Ramsey]

You know, you don't want the microwave from 1972.

[John]

Yes.

[Dave Ramsey]

You want the one from today.

[John]

Right, right, right.

[Dave Ramsey]

You don't want the toaster oven from 1972. You want the steam oven from today. Right. You know, whatever it is you don't want. You know, skylights used to be real popular and then we found out they were pretty cheesy and they leak and so people don't want to. Yeah. Waterbeds were cool.

[John]

I found out someone on our team still has a waterbed.

[Dave Ramsey]

Don't, don't, don't say that.

[John]

I'm not going to say their name.

[Dave Ramsey]

Don't, don't, don't. Shame, don't shame them.

[John]

They should be ashamed. Whoa. But, but like it's. Get this real clear picture and get a path towards it and then hold it pretty loosely.

[Dave Ramsey]

Yeah. And change it. So. Yeah. You know, so in other words, I, in I. I'll give you an example of that. That's very cool. So when I was 17, I saw. The first time I saw that little two seater Mercedes, that little hot hot rod, you know, And I, I saw one the other day. I'm glad I never.

[John]

Yeah.

[Dave Ramsey]

But you know what, what that meant was though I wanted a really cool, nice car.

[John]

Right.

[Dave Ramsey]

Cuz I'm a car guy. Yeah. And today I drive a really nice cool two seater cars. One of my cars.

[John]

A couple of them.

[Dave Ramsey]

And so you know, but that, but it wasn't. It's not that car.

[John]

It's not that car.

[Dave Ramsey]

It's not even a Mercedes.

[John]

But it's, it's the direction. Right?

[Dave Ramsey]

Yeah. But that. Yeah. So it's, it changes. Thank God they don't make them like they used to. Thank God. Create your free every dollar budget today. The simplest way to budget for your life.