I'm 49 And Living Below The Poverty Line

Summary

The Ramsey Show Highlights

Episode Summary: "I'm 49 And Living Below The Poverty Line"

Date: July 23, 2026
Hosts: Dave Ramsey, Rachel Cruze
Guest: Philip

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Overview

In this episode, a caller named Philip, aged 49, shares his struggles living below the poverty line in Southern California. With a combined household income of $40,000–$45,000 and ongoing issues around debt and budgeting, Philip seeks advice from Dave Ramsey and Rachel Cruze. The conversation explores not just the financial details but also the emotional and psychological factors underlying his financial difficulties.

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Key Discussion Points & Insights

1. Understanding Philip’s Situation

• Type of Debt: Philip and his wife struggle primarily with routine medical bills and credit card debt.
• Income & Work: Combined household income is around $40,000–$45,000, mostly part-time work (Philip); his wife works a full-time clerical job.
• Living in Southern California: Hosts highlight how this income isn't sufficient for their location and cost of living.

Notable Quote:

• Rachel Cruze (01:39): "But $45,000 in Southern California for two people working 40 hours, that's not… you're not working for…"

2. Barriers to Full-Time Employment

• Work Hours: Philip works part-time, not by choice, but due to company policy. He’s struggling to secure full-time, more stable work.
• Career History: Past jobs include cashiering and driving.

Host Probing:

• Dave Ramsey (02:20): "Is there something you're facing or trying to work your way through that we're not understanding here that's keeping a 49-year-old man from getting a job and holding it down?"

3. Emotional and Psychological Factors

• Revealed Barrier: Philip admits to “a lot of emotional stuff, a lot of baggage,” which interferes with his ability to hold full-time employment.
• Connection to Finances: This emotional weight also plays into the persistent medical bills and overall financial stress.

Memorable Moment:

• Dave Ramsey (03:27): "There’s a connecting line here between these things... The actual cause of some of the things you called about goes all the way back to you completing your healing journey. Is that logical to you?"

4. Path Forward: Blending Healing and Action

• Dave’s Advice: Emotional healing is connected to the ability to work more and earn more. He emphasizes the need for a “stronger version” of Philip—one capable of holding multiple jobs if needed to boost income.
• Rachel’s Advice: Healing is necessary, but it must be coupled with immediate action. She highlights the value in the routine and accountability of full, steady work for restoring confidence and dignity.

Quotes:

• Rachel Cruze (05:17): "It’s a both-and. Yes, I do think... but you have to action in the healing step... There's a confidence and a rhythm that'll double your income."
• Dave Ramsey (04:05): "The stronger version of Philip we have... works 60 hours, two jobs, three jobs... brings home a lot more money than $45,000 in Los Angeles."

5. Immediate Financial Strategy: Budgeting and Debt

• Budgeting Approach: Dave encourages Philip to treat managing his household budget as if he were paid $100,000 a year to do it, emphasizing intentionality and detailed planning.
• Tools: Suggests using the EveryDollar app and having a zero-based budget for every paycheck.
• Stop the Debt Cycle: Both Dave and Rachel urge Philip to cut up the credit cards, stating the solution isn’t more debt but greater income and a clear, enforced budget.

Quotes:

• Dave Ramsey (06:25): "The way you fix both of those things is... with great intentionality and action. Pretend someone is paying you $100,000 a year to manage this couple's budget."
• Rachel Cruze (07:53): "Cut up the credit cards, not make it an option... and that will force the math to show you that the income really is the major problem here."

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Notable Quotes and Memorable Moments

• Philip on Medical Costs:
  Philip (00:37): “Well, just having difficulty with the co pays and doctors and dentists and things like that.”
• On Emotional Healing Linked to Earning Power:
  Dave Ramsey (04:05): "The stronger version of Philip we have... that version of Philip brings home a lot more money than $45,000 in Los Angeles."
• Rachel on the Value of Routine Work:
  Rachel Cruze (06:01): "That swaggerty walk versus... being home till 11, working a half day... I think that busyness and productivity... is going to be really good for you, Philip."

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Timestamps for Important Segments

• 00:06 – Philip describes struggles: new debt and budgeting.
• 00:30 – Reveals debt is mostly medical and credit card.
• 01:03 – Reveals marital status and household income.
• 01:46 – Discusses part-time work and job search.
• 02:20 – Hosts probe deeper about underlying issues.
• 03:13 – Philip acknowledges emotional baggage.
• 03:27 – Dave makes the link between healing and earning power.
• 04:05 – Discussion of the “stronger version” of Philip.
• 05:15 – Rachel adds importance of action.
• 06:25 – Dave details budgeting approach.
• 07:53 – Rachel recommends cutting credit cards and focusing on income.

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Episode Tone and Takeaways

• The tone is empathetic but direct, blending tough love with real support.
• The hosts blend financial planning with addressing underlying personal roadblocks.
• The main message: Building a better financial life requires both internal healing and practical action—more income, structured budgeting, and removing the temptation of debt.

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For listeners in similar situations, this episode offers both hope and a pragmatic roadmap: pursue emotional healing while taking consistent, bold action toward earning more and budgeting intentionally.

Transcript

[Dave Ramsey]

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

[Philip]

Well, I'm having difficulty staying away from new debt. And I'm on baby step number two. And I'm having difficulty with budgeting.

[Dave Ramsey]

Okay, Phil, those would go together. That makes sense.

[Rachel Cruze]

Yeah. Is it any type of like business debt or all consumer debt in your household that you're trying to stay away from?

[Philip]

Consumer. Consumer.

[Rachel Cruze]

Okay. Any specific type of that you find yourself in a lot?

[Philip]

Credit cards and medical.

[Rachel Cruze]

Medical and credit cards. What's going on with the medical.

[Philip]

Oh my. Well, just having difficulty with the co pays and doctors and dentists and things like that.

[Rachel Cruze]

Okay. More just routine type medical things or is there an ongoing sickness or concern?

[Philip]

Routine.

[Rachel Cruze]

Routine. Okay. Okay.

[Dave Ramsey]

How old are you?

[Philip]

49.

[Dave Ramsey]

49. How many kids you got?

[Philip]

Zero.

[Dave Ramsey]

Okay. Are you single?

[Philip]

I'm married.

[Dave Ramsey]

Okay. And what's your household income?

[Philip]

I would guess 40, $45,000 a year.

[Dave Ramsey]

What do you all do for a living?

[Philip]

My wife is in clerical and I work as a. In a grocery store as a courtesy clerk. Okay.

[Dave Ramsey]

It doesn't sound like you guys are peeking out on your careers.

[Philip]

Correct?

[Dave Ramsey]

Yeah, I'm not.

[Philip]

My wife's is okay with hers, you mean? Yes.

[Rachel Cruze]

Okay. But $45,000 in Southern California for two

[Dave Ramsey]

people working 40 hours, that's not. You're not working for.

[Philip]

Yeah, I'm not working 40 hours a week. That's right. I'm a part timer.

[Dave Ramsey]

Why?

[Philip]

Just the way that the company does it.

[Dave Ramsey]

No, why are you working? Not working 40 hours doing something.

[Philip]

I'm looking for a 40 hour week job and it's hard right now for me.

[Rachel Cruze]

Have you ever had one? A different type of career?

[Philip]

I've done other things with cashiering and with driving.

[Rachel Cruze]

Okay.

[Philip]

Yeah.

[Rachel Cruze]

Okay.

[Dave Ramsey]

Is there something that's that you are facing or that you're trying to work your way through that we're not understanding here? That's keeping a 49 year old man from getting a job and holding it down.

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[Dave Ramsey]

That's keeping a 49 year old man from getting a job and holding it down.

[Philip]

Yeah, a lot of emotional stuff, a lot of baggage. Yeah. I have a long history.

[Dave Ramsey]

Okay. And so that's, that's also playing into the medical bills.

[Philip]

Right, right.

[Dave Ramsey]

Okay.

[Philip]

All right.

[Dave Ramsey]

Now that makes more sense. Okay, little more mercy then. All right. And so here's the thing. There's a connecting line here between these things. Let me kind of walk through it. So the emotional healing produces a version of Philip that allows him to work more and earn more, which allows him to have more money to budget. And so the actual cause of some of the things you called about goes all the way back to you completing your healing journey. Is that logical to you?

[Philip]

Yes.

[Dave Ramsey]

And so in other words, the stronger version of Philip we have, that's got the scars of the past healed enough to function at full capacity. And then that version of Philip works 60 hours, two jobs, three jobs. And that version of Philip brings home a lot more money than $45,000 in Los Angeles.

[Philip]

Yeah.

[Dave Ramsey]

And that, then that changes the whole budget transaction.

[Rachel Cruze]

It does. But I also have Dr. John Deloney in my head. Philip, where he leans into. You have to have action as well. I'm all about you healing from what it is. But there's been a pattern, it sounds like most of your adult life where you haven't gone beyond what you're doing now. And I think I would. It's a both and yes, I do think. But you, you have to action in the healing step and the action of getting up at 6am, going to a job, getting dressed, getting out the door, being somewhere with an accountability of being on time, working hard and exhausting yourself till 5pm, 6pm for dinner and you leave and go home. There's a, there's a confidence and a

[Dave Ramsey]

rhythm that'll double your income.

[Rachel Cruze]

That is good for you, Philip, paired with being able to, you know, unpack what you need to unpack and understand yourself and not have high levels of anxiety, all of that. But I think it's a both ands. And so if I were you, I think it's, I think it's part of your healing journey to go and be productive because I think that's going to give you some confidence. And when you get paychecks in that are double what it is now and you can sustain a fan and sustain you and your wife, and you're not behind and you're not so stressed and bogged down and feeling like, oh, my gosh, I don't know how we're going to make the next paycheck. Some of that confidence of, hey, look, we're literally bringing in tangible money double what we were. And that. Not that money brings you confidence, but you know what I'm saying, Like, it will give you a sense of pride and dignity that I think is really

[Dave Ramsey]

good for you, Philip.

[Rachel Cruze]

That swaggerty walk versus sleeping, I mean, versus being home till 11, working a half day or. You know what I mean? Like, I think there's a level of that busyness and productivity that's going to be really good. Good for you, Philip. And you have to stay current on your bills. There's a point that, yeah, there's not. There's not going to be much of a choice, or you guys are going to get behind and live off credit cards for the rest of your life, and that's going to cause more stress and anxiety. So.

[Dave Ramsey]

So what I would do that'll help push you into that is to go back all the way to the beginning of the call and answer your actual question was, okay, I'm struggling with budgeting, and I'm struggling with debt, staying away from debt. And so the way you fix both of those things is the same way we're talking about this other issue with great intentionality and action. So the intentionality is I'm going to ask you to pretend that someone is paying you $100,000 a year to manage this couple's budget in Los Angeles. And this couple's budget has a husband named Philip. And if you were paid to do that, you could do it and you could sit down. I've talked to you. You're an intelligent guy. You can sit down and do a budget, and we'll hook you up with EveryDollar, the budgeting app, and you and your wife sit down and you say, all right, we're going to tell every dollar before it gets here what to do, and then we're going to stick to that. That's intentionality. Then when you're doing that and there's a problem, then you've got to say, well, the reason we're doing all of this is to get out of debt and stay out of debt. So we're not going to use debt to fix our problems or our impulses or our whatever. But the reason debt is popping up is you don't have a good, solid, detailed plan, because if you got a good, solid, detailed plan, it's going to point out that you need more income and you're going to go get the income.

[Rachel Cruze]

Well, and I would assume your rent in Los Angeles has got to be most of your paycheck. I mean, if you're bringing home four, four grand a month. Not even, I mean, yeah. I mean, two grand a month. I mean, I don't know. I just, I think that there's when you start to look at the math and see, you guys will probably be I mean, you're probably already cutting back, but I would cut up the credit cards, not make it an option. And that will force the math to show you that the income really is the major problem here.

[Dave Ramsey]

Exactly. Create your free every dollar budget today. The simplest way to budget for your life.