My Wife Spends About $5,000 a Month On A Credit Card

Summary

Podcast Summary: The Ramsey Show Highlights
Episode: My Wife Spends About $5,000 a Month On A Credit Card
Release Date: July 6, 2025
Host/Authors: Ramsey Network, featuring Dave Ramsey and Jade Warshaw

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Introduction: The Caller’s Dilemma

In this episode of The Ramsey Show Highlights, Taylor reaches out for guidance concerning his family's budgeting struggles. Balancing differing spending habits between spouses is challenging, especially when significant sums are involved.

Taylor introduces his situation:

"My wife and I would like to get some help and some advice from y'all in regards to our budgeting. I wouldn't so much say that we have a money problem, but I would say that we have a problem agreeing on what to do with our money."
[00:02]

He highlights the core issue: his wife spends approximately $5,000 monthly on her credit card, while he manages $2,500 to $3,000. This discrepancy has led to tension and the fear of financial stagnation.

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Identifying the Core Issues

Dave Ramsey and Jade Warshaw delve into understanding the underlying problems affecting Taylor and his wife’s financial harmony.

Dave probes deeper:

"What's the purpose of the credit cards and all this? Because for me that just creates... adding more chaos to the equation."
[02:22]

Taylor explains that the credit cards were initially for building credit, a common reason many couples adopt credit card usage. However, without clear boundaries, this has led to uncontrolled spending.

Jade clarifies the spending breakdown:

"I would consider the way I say it is, I think she's buying a lot of things... her spending creates stress for this call."
[04:36]

It becomes evident that while Taylor manages necessary expenses and some discretionary spending, his wife’s expenses lean heavily towards non-essential items, causing financial strain.

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Expert Advice: Reining in the Chaos

Dave Ramsey emphasizes the importance of establishing clear financial boundaries and a structured budget:

"There's no boundaries... adding a free for all because I don't know what the limit is on these credit cards... the great thing about cold hard cash, Ken, when it's gone, it's gone."
[05:37]

He advocates for eliminating credit cards to prevent overspending, suggesting that cash enforces discipline.

Jade Warshaw complements this by focusing on the necessity of a unified spending plan:

"I feel like the bigger issue is the fact that you guys don't have a very clear spending plan every month."
[05:37]

She points out that whether using cash or credit, the absence of a clear budget is the root cause of the stress and disagreement.

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Actionable Recommendations

The experts converge on actionable steps Taylor and his wife can take to regain financial stability:

1. Establish a Joint Budget:

   • Dave Ramsey suggests planning every dollar, including discretionary spending, to ensure all expenses and savings are accounted for.
   • Taylor acknowledges the need:

     "I would like to have at least $2,000 of that earmarked towards savings, investing, charitable."
     [07:17]

2. Set Clear Financial Goals:

   • Allocate specific amounts for savings, investments, and charitable contributions to balance spending.

3. Enhance Communication:

   • Jade emphasizes the importance of open discussions about financial values and priorities within the marriage.
   • She encourages couples to share feelings and collaboratively develop a financial plan that satisfies both partners.

4. Consider Eliminating Credit Cards:

   • Following Dave’s advice, reducing reliance on credit can prevent overspending and foster better financial habits.

5. Use Budgeting Tools:

   • The episode concludes with a promotion for the EveryDollar app, a free budgeting tool that can help manage monthly finances effectively.

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Conclusion: Path to Financial Harmony

Taylor and his wife face a common but solvable challenge: differing spending habits threatening their financial future. Through expert advice from Dave Ramsey and Jade Warshaw, the path forward becomes clear:

• Create a Structured Budget: Plan every dollar to ensure both partners feel secure and empowered in their financial decisions.
• Communicate Openly: Discuss financial goals and values to align spending with shared objectives.
• Implement Discipline: Consider strategies like eliminating credit cards or using budgeting apps to maintain control over expenditures.

Taylor reflects on the conversation:

"I hope that this call excites both of us and her to look at more long term."
[04:48]

By taking these steps, Taylor and his wife can work towards a balanced and prosperous financial future, ensuring that both their needs and aspirations are met harmoniously.

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This summary encapsulates the key discussions and insights from the episode, providing a comprehensive overview for listeners seeking solutions to similar financial challenges.

Transcript

[Taylor]

Brought to you by the EveryDollar app. Start budgeting for free today. My name's Taylor. Married, I have three children. Have a five year old, three and a one year old. My wife and I would like to get some help and some advice from y' all in regards to our budgeting. I wouldn't so much say that we have a money problem, but I would say that we have a problem agreeing on what to do with our money. And I think Dave said it before. I think one of us could be considered more of a spender, whereas the other could be considered more of a saver.

[Dave]

Let me guess, you're the saver.

[Jade]

That's my guess as well.

[Taylor]

Right. Trying to find a happy medium so that we can both be happy, enjoy life while also saving. And more importantly, I just possibly don't want to work forever.

[Jade]

Sure. Now what is the. Well, let's get right to the problem. Where are we not on the same page?

[Taylor]

It'd be with regard to spending, specifically credit card spending per month.

[Jade]

How much?

[Taylor]

So individually I spend probably on average around 2500, 3000amonth on my credit card, and she's been closer to 5,000 plus per month.

[Jade]

Wait a minute, hold the phone.

[Dave]

What's the. How much do you actually bring in in actual money every month?

[Taylor]

Cause that, that, that for sure.

[Jade]

Are you all running all of your expenses on a credit card? Is that what you're doing?

[Taylor]

Not everything. For instance, we pay our credit card off each month. Our house notes taken out of our checking account. And our checking, excuse me, our house note is really our only reoccurring debt.

[Jade]

What's your take on.

[Taylor]

Fortunately, and that's kind of the hard question. So I work on commission and through a job change a few. It's been hard for me to. My wife's asked me the same question.

[Dave]

What's a good month and what's the.

[Taylor]

Given amount that stays the same?

[Dave]

Yeah, sure.

[Taylor]

A lower month would probably be around. Around 6500 to 7500. Okay, take home. And then a higher month could be closer to, you know, it could be 20,000 plus. Kind of just depends.

[Dave]

So what, tell me, what's the purpose of the credit cards and all this? Because for me that just creates. There's already the unknown with the fluctuating income and then adding the credit cards with no real feeling like no real boundaries around it feels like it's just adding more chaos to the equation. So why do you and your wife. And let me also add, you make a fine income. So what's the purpose of the credit cards and your what is it serving?

[Taylor]

It's a really good question. I've considered getting rid of them. I don't really have a good answer as to why we have them. I have had a credit card since I guess I got out of college. And I've fortunately always been able to manage it, at least as far as I can tell. Like I haven't racked up a bunch of debt. So I've just. I've just kept the credit card and when my wife and I got married, got her one too.

[Dave]

Is it a credit building thing for you or is it a we can just spend on here and not really have to think about it until it's time to kind of tally it up sort of thing? If you had to point to one reason, what do you think it is? Even if it's not you, your wife's reasoning behind it.

[Taylor]

Right. Initially for me it was credit building. I, I just kind of got used to budgeting, comfortable budgeting with what I knew I was going to spend on my credit card. And I guess I'll point out a while back, like years ago, when I originally had this conversation with my wife, she was paying some bills automatically on her card and then I was paying some bills automatically on my card. We've since changed everything to be auto draft from my card for the majority of it. So a lot of. Some of my charges are necessities like bill credit.

[Jade]

I see. So the majority of your 2500 is your household bills and then a little bit of spending for you. Am I to understand that the $5,000 she's spending per month is just kids, clothes and all the fun things. Is that, is that what it. Because you, you opened up this call and it felt like to me, j. Correct me if I'm wrong, I was feeling like the way you were saying this. You're a very kind man and I think you're a gentleman, but it felt like my wife is blowing a bunch of money on her credit card and I'm taking care of serious stuff. I got some audience f folks that are shaking their head in the lobby. So is that what's going on? What is she spending the 5,000 on?

[Taylor]

For sure, y'. All. I mean, you hit the nail on the head. I, I would consider the way I say it is, I think she's buying a lot of things. I would hope, I hope that this call excites both of us and her to look at more long term.

[Jade]

Is she listening to this call?

[Taylor]

Investments. Well, here's the thing she knows that I'm on. Yes.

[Jade]

Oh, she does. Oh, this is great.

[Dave]

There's no, there's no boundaries. Right? And by boundaries I mean there's no budget. There's no plan set ahead of the month that says here's what we're spending our money on and here's what we're doing with the excess after we've spent our money on the things that we want to. Now here's the. Do you see what I'm saying? And so I, for sure, I would say for you guys, I mean, I'm always going to tell people to cut up their credit cards but for you guys it's like a no brainer. I feel like in many ways it's just creating more chaos around the subject of money and it's creating a free for all because I don't know what the limit is on these credit cards but clearly it allows you to go out of bounds when she feels like going out of bounds. And the great thing about cold hard cash, Ken, when it's gone, it's gone like there's no more.

[Jade]

However, I think Jade's right. But Taylor, I feel like the bigger issue is the fact that you guys don't have a very clear spending plan every month. And whether you're paying cash for the five grand as Jade is suggesting or you put it on a credit card, the stressor for you is, is how much money you both are spending whether she's spending most of it or not. This is a we thing. I'm assuming you guys are not separate accounts. You guys are joint banking account. You guys are together on this. Is that true or false?

[Taylor]

That's, that is true. We were separate when we got married and I thought it worked fine. We've since made it joint after our first child and I do want to mention that we. So I try to max out my 401k. I come close or I, you know, couple years, a little short of it. She contributes the, you know, full. She's not maxing it out but she takes advantage of her company match. Now she's working a little bit less now that we have three children. So she's not going to be able to max out her.

[Jade]

Let's, let's cut to, let me cut to the checks because we, we got about a minute left and here's what I'm thinking.

[Taylor]

Absolutely.

[Jade]

I want to get Jade's take on this. After listening to all this, you're stressed out about how much she's spending and that means you guys Got to get on the same page with a real budget, like Jade said. But more importantly, I think this is a marriage conversation about what you're valuing, and we don't have a lot of time to discuss this. But to me, the big question that I have for you is, and I want you to give it to me in 10 seconds or less. All right, Just spit it out. How much money out of the 5,000 that she's spending do you want to earmark to something else, which is what's created stress for this call?

[Taylor]

I would like to have at least 2,000 of that earmarked towards savings, investing, charitable. That's a lot of things, not just spending.

[Jade]

That's the starting point. Jade, I want to give you the jump in here, but I think that's where he's got to get to with her.

[Dave]

Yeah. And the way to do that, right now, you're doing the budget the way I used to do a budget, which is I plan for all the things I know I have to pay for a house, car, you know, phones, things like that. But everything else is up for grabs. Treat yourself money. You need to take that treat yourself money and plan every dollar of that money as well. And yes, it can include. Include some of the fun things your wife wants to do, but it also needs to include the really important things, like planning for the future that you want to do.

[Jade]

You guys got to get together and talk this out, share your feelings around this stuff, and then come together with a plan.

[Taylor]

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