We Make $200,000 a Year and I Don't Know Where It's Going

Summary

Podcast Summary: The Ramsey Show Highlights – "We Make $200,000 a Year and I Don't Know Where It's Going"

Date: June 15, 2026
Host: Ramsey Network Panel (Financial Advisor, Financial Coach, Budgeting Expert)
Caller: Liz

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Episode Overview

In this episode, Liz, a listener, calls in with a financial crisis: despite a combined household income approaching $200,000, she and her husband are in substantial consumer debt and running a $2,700 monthly deficit. She’s desperate for guidance, having cut most expenses and taken over the finances after her husband accumulated significant debt. The Ramsey team dives deep into Liz’s financial reality, exploring why a high income isn’t translating into financial stability, and what actionable steps the couple should take next.

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Key Discussion Points & Insights

Liz's Background and Financial Troubles

• Discovery of Debt: Three years ago, Liz found out her husband accrued significant debt due to poor decisions, overspending, and bad luck. She has since taken control of the household finances.
• Income and Deficit:
  • Household income is around $200,000/year—her husband makes about $160,000 (with bonus), and her earnings vary. She recently dropped from ~$90,000/year to roughly $45,000 due to a slowdown at work.
  • Despite budget cuts, they’re still short $2,700 a month.
    Quote (Liz, 00:25): "Every for the last three months, we're about $2,700 short a month...I've put our household expenses to nothing."
• Debt Breakdown:
  • Total debt: ~$200,000, including consumer debt, credit cards, car payments, and a HELOC.
  • Car loans: $18,000 (truck), $33,000 (her car), totaling $48,000.

Where is the Money Going?

• Confusion Over Missing Income
  The Ramsey team calculates $250,000 household income should be more than enough to cover the listed expenses.
  Quote (Financial Advisor, 02:55): "That's only $2,500. That's only $30,000 a year. And you have a $250,000 household income."
• Net Pay Discrepancy:

  • Liz reports only $7,700/month hits their account after taxes and deductions.

  • The team is puzzled by an apparent shortfall of about $13,000/month.

    Quote (Financial Advisor, 04:08): "Where's the other $13,000 a month going? ...so far the only place I found it going is a 401K."

• Deductions and Debt Payments:
  • Withdrawals include his 401k contributions, insurance, a $750/month debt consolidation plan, and regular tax withholdings.
  • Liz clarifies her recent lower earnings, which further tightens the budget.

Root Problems Identified

• Lack of Joint Accountability:

  • The emotional burden is heavily on Liz; her husband remains less involved.
  • The team urges shared financial responsibility to save both their finances and marriage.
    Quote (Financial Advisor, 06:28): "Your only shot at your marriage getting through this is the two of you hooking arms... and pulling this wagon together."

• Absence of a Detailed Budget:
  The hosts emphasize that budgeting is crucial regardless of income level.
  Quote (Budgeting Expert, 03:14): "It's not just about how much you make. It's about having a plan for what you've got."

Concrete Advice from the Ramsey Team

• Re-evaluate and Track All Spending:
  Use a zero-based budget (such as the EveryDollar app) to identify where every dollar is going.
• Stop Retirement Contributions Temporarily:
  • Cease all 401k and retirement savings until the deficit and debt are addressed. Quote (Financial Advisor, 07:24): "Stop his 401k immediately. You don't go $2700 in the hole while funding a 401k."
• Sell the Cars:
  • With high balances remaining, the hosts advise selling both vehicles to eliminate large monthly payments. Quote (Financial Coach, 08:03): "And I'd be selling the cars at this point."
• Increase Income:
  • Liz should actively pursue alternative employment matching her previous income if her current position has dried up.
• Assess All Paycheck Deductions:
  • Scrutinize every deduction for non-essentials; ensure no funds are routed to non-critical or hidden obligations.

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Notable Quotes and Memorable Moments

• On Living on Less than You Earn:
  (Financial Advisor, 02:55) "You have a $250,000 household income... Where is this money going?"
• On the Stress of Hidden Debt:
  (Financial Advisor, 06:28) "You're carrying it by yourself, and it's crushing you. I can hear it in your voice."
• On Budgeting Regardless of Income:
  (Budgeting Expert, 03:14) "It's not just about how much you make. It's about having a plan for what you've got."
• On Urgent Next Steps:
  (Financial Advisor, 07:24) "Stop his 401k immediately... No saving money, no investing money." (Financial Coach, 08:04) "These cars have got to go. They're crazy in this situation."

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Important Timestamps

• 00:06: Liz describes her financial situation and deficit.
• 01:29: Debt amount and car loans disclosed.
• 02:02: Breakdown of household income; discovery of mismatched spending and earnings.
• 03:01: Discussion shifts to the necessity of budgeting, regardless of income.
• 04:02: Net pay amount ($7,700/mo) revealed; team searches for missing funds.
• 06:28: Deep insight on the emotional toll of carrying financial weight alone; advice on collaboration.
• 07:24: Concrete steps—cease 401k, sell cars, track every dollar.
• 08:27: Final emphasis: missing income must be tracked and budget audited.

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Summary & Tone

The episode’s tone is direct, empathetic, and solution-oriented. The Ramsey team balances tough love with practical, step-by-step advice. They identify the psychological and logistical pitfalls Liz is facing, stress the importance of joint responsibility, and argue for drastic but necessary changes—ceasing all non-essential spending, halting retirement contributions, and selling high-value assets. The bottom line: no matter your income, you need a plan and accountability.

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For Listeners

Anyone feeling overwhelmed by unexpected debt, household deficits, or unclear finances—regardless of earnings—will relate to Liz’s story, and find this episode’s advice both actionable and reassuring.

Transcript

[Financial Advisor]

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

[Liz]

I'm calling because about three years ago, I had discovered that my husband had amassed a pretty substantial amount of debt. Just kind of a combination of bad decisions, bad luck, overspending, and I had kind of stupidly let him, you know, he was bringing in most of the money has let him take control. So about three years ago, I started managing our finances. And I've been able to kind of rein it in some and make some progress, but my, my job that the past two years have been pretty steady has slowed back down. And so every for the last three months, we're about $2,700 short a month. I know. And I just, I don't really know what to do because I've put our household expenses to nothing. I've gotten rid of. The only two things I could still get rid of are our home security system, which is $25 a month, and then house cleaning for my mental health. But other than that, I've. I've gotten rid of extras.

[Financial Advisor]

So how much debt is there?

[Liz]

Probably right now about 200,000.

[Financial Advisor]

Okay.

[Financial Coach]

All consumer debt. Liz.

[Liz]

It's. He took out a huck. There's some credit card debt to car payments.

[Financial Advisor]

Oh, what do you owe on your

[Liz]

cars between the two of them? 48,000.

[Financial Advisor]

Break them down to him for me.

[Liz]

His truck is about 18, and mine is like 33 or so.

[Financial Advisor]

And what do you make a year? And what does he make a year?

[Liz]

He makes with his bonus, about 160,000 a year. My job varies. I work on an as needed basis for a law firm. So the past two to three. Three years, I'm. I made about 90,000, but I'm probably tracking this year what it had been like the previous five years, which is 45.

[Financial Advisor]

Okay, so what you gave me does not equal $250,000 worth of expenses. Where is this money going? Well, what's your house payment?

[Liz]

Our house payment is 1900, and then we have a HELOC, which is 470amonth.

[Financial Advisor]

Yeah, but that's only $2,500. That's only $30,000 a year. And you have a $250,000 household income.

[Budgeting Expert]

How much money do you have to make where budgeting is just optional if you chose c. Watch this.

[Liz]

She makes about 170. I make about 115.

[Budgeting Expert]

Hold on. Did you go back after you paid off everything, borrow some more money?

[Liz]

Oh, yeah. Oh, no car. We like to go here and there and get this.

[Financial Advisor]

Me even.

[Financial Coach]

No you went full South Beach.

[Budgeting Expert]

It's not just about how much you make. It's about having a plan for what you've got. So start budgeting with every dollar for free today.

[Financial Advisor]

But that's only $2,500. That's only $30,000 a year. And you have a $250,000 household income.

[Liz]

Well, I guess I'm factoring in like all the, like the debt, all the monthly payments we're making.

[Financial Advisor]

Yeah, I am too. I don't get to $2,700 upside down. Your household income is $20,000 a month?

[Liz]

No, it's.

[Financial Advisor]

Well, no, it is. I mean, it's not your take home pay, but your household income is $20,000 a month. 160 plus 90 is 250. That's $20,000.

[Financial Coach]

What hits your account every month, Liz, what do you actually have to work with after taxes?

[Liz]

Right now what we're working with is about 7700amonth because I haven't been working.

[Financial Advisor]

Where's the other $13,000 a month going? That's. Are you still putting money? Are you still putting money? I know she's not working. She's not at 90 anymore. She's at 60.

[Financial Coach]

She's at 45. And your husband's 160.

[Financial Advisor]

Yeah, but the.

[Financial Coach]

So but even at $160,000 income.

[Financial Advisor]

Yeah. Are you putting money in a 401k still?

[Liz]

He does. I don't.

[Financial Advisor]

Well, you manage the money now, so yeah, we are putting money in his 401k.

[Liz]

Okay. We. Yes.

[Financial Advisor]

Okay. And what else is coming out of your checks other than taxes?

[Liz]

Insurance. He has this debt where he. This company called beyond finance. So that's 750amonth that he's paying towards something that he add them some debt consolidation company.

[Financial Advisor]

And that comes out of his check?

[Liz]

That comes directly out of his. Well, it comes. It just auto drafts out of our.

[Financial Advisor]

That's checking account. That's after 7700 went in. And I'm still trying to find like $10,000 a month that's missing. And so far the only place I found it going is a 401K.

[Liz]

Well, I mean his, his take home pay is he gets after taxes like 3,400 every two weeks. And then he gets a big bonus in January, which we use this year to pay off a credit card.

[Financial Advisor]

That's 7,000.

[Financial Coach]

And then you bring in 700amonth is what you're saying, because you said 7,700 hits your account every month.

[Liz]

I mean, that's what it's been the last, like, three to four months because I haven't really been working. Okay.

[Financial Advisor]

Okay. So can you pick up the same type of position somewhere else since this. They've slowed you down.

[Liz]

I can't because I work for a law firm and I'm covered by their liability insurance, so I can't do the same kind of work for anyone else because of.

[Financial Advisor]

I mean, is there another law firm that'll hire you and quit those guys?

[Liz]

I mean, I've been looking. I haven't found anything yet.

[Financial Advisor]

Yeah, because you're, you know, we're not going to stay at 45, and we have a market income, our market value of 100. Okay, so a couple of things backing up then. So number one, the two of you need to sit down together and work on the budget. You can do the details, but he needs to feel the weight of the responsibility of this with you and be carrying it emotionally. You're carrying it by yourself, and it's crushing you. I can hear it in your voice. Okay? And you're still harboring a large amount of resentment, which is fair. You're still pissed off about him running $200,000 in the hole without bothering to tell anybody. Okay, that's thing one, though. The you're not. Your only shot at your marriage getting through this is the two of you hooking arms, putting your. Both of you putting your shoulders in the same end of the harness together and pulling this wagon together. Okay? Now you can do the details. You're the detail person, and you definitely have to know what's going on because we can't count on him. Okay? So that's thing one. Thing two, then once you're doing that, then I want you to go find where all this money's going because stop his 401k immediately. You don't go $2700 in the hole while funding a 401k. That's not logical. That's borrowing money to put it in a 401k. No, I'm not doing that. So stop his 401k in the morning or tonight or whatever. Stop yours. No saving money, no investing money.

[Financial Coach]

And I'd be selling the cars at this point.

[Financial Advisor]

That's the next one. Sell the cars. These cars have got to go. They're crazy in this situation. But you've got to go find where all this money's going to. When you add this up and look at the gross, gross amount that you guys have been making, and you're only getting $7,000 home, something's wrong or have you got a huge tax refund? Something's wrong. There's a big gaping holes in this

[Financial Coach]

of his 160 is the bonus which they use to pay off the credit card. So that's not in the paychecks either month either.

[Financial Advisor]

But you got to figure out where all this is going because it's not. It doesn't add up to 250,000. And that's what we got to get to create your free every dollar budget today. The simplest way to budget for your life.