We're Getting More Money Than We Know What To Do With

Summary

---

Podcast Summary: The Ramsey Show Highlights

Episode: We're Getting More Money Than We Know What To Do With
Date: May 11, 2026
Host(s): Jade Warshaw & Ken Coleman (Ramsey Network)
Guest: Jennifer (Client)

---

Episode Overview

In this episode, financial advisors Jade Warshaw and Ken Coleman counsel a caller, Jennifer, who is about to receive a substantial legal settlement ranging from $250,000 to $5 million. Despite this windfall, Jennifer and her husband have a history of low income and debt, causing her stress and uncertainty about managing their finances. Jade and Ken guide Jennifer through practical next steps, emphasizing financial education, the importance of increasing income, and responsible money management.

---

Key Discussion Points & Insights

1. Jennifer’s Situation & Concerns

• Settlement Amount: Jennifer is set to receive at least $250,000, possibly up to $5 million, from a legal settlement, but the exact figure is not yet determined.
  • Jennifer (00:43): "So the floor is a quarter million dollars and the ceiling is $5 million."
• Lack of Financial Experience: Jennifer admits to minimal financial literacy and is anxious about making wise decisions with this sudden wealth.
• Annual Household Income: The most Jennifer and her husband ever made in a year is $42,000; last year, they reported $31,000.
  • Jennifer (01:46): “The most I’ve ever made in a single year is $42,000. And like...we did $31,000.”
• Employment History: Jennifer’s husband works at a foundry. Jennifer herself has worked a total of three years in her life.
• Debt Load: The family owes about $55,000, including $39,000 in federal restitution for taxes, plus car payments and credit card debt. They are currently on a payment plan for the restitution.
  • Jennifer (03:38): “Our debt combined is around $55,000...I owe Federal restitution for $39,000 taxes.”

2. Immediate Recommendations for Jennifer

• Financial Education:

  • Jade stresses the need for Jennifer to immerse herself in financial learning, regardless of the settlement’s size:
    • Financial Peace University (FPU)
    • Total Money Makeover
    • EveryDollar budgeting app
  • Jade (05:13): "The biggest thing...is before we get off the phone, I'm going to send you some resources...I want you to go old school and...do Financial Peace University."

• Pay Off Debt:

  • When the settlement arrives, use it first to pay off the restitution, credit card debt, and car loan.
  • Jade (05:46): "You’re going to take it and you’re going to pay off the restitution, you’re going to pay off the credit cards, you’re going to pay off the car."

• Establish Boundaries and Habits:

  • Stop Borrowing:
    • Make a firm personal rule never to borrow money again, to prevent falling back into old habits.
    • Jade (06:13): "You have got to decide today, I don't borrow money...Boundaries are good."
  • Become a Budgeter:
    • Commit to detailed, proactive budgeting to ensure long-term security and wise spending.
    • Jade (06:48): "You’ve got to become a budgeter today."

3. Income: The Root Issue

• Not Enough Income:

  • Ken highlights that budgeting isn’t Jennifer’s core problem; it’s the lack of adequate income:
    • Ken (07:09): "The reason you guys are hurting is because you don’t have enough income."
    • He suggests a combined minimum household income of $60,000 is reasonable for their location and situation.
  • Urgency to Find Work:
    • Ken urgently recommends Jennifer get a job immediately, even if it means “the late shift at the gas station” or “stocking shelves.”
    • Ken (08:25): "I think you need to go get a job today...good, hard work is dignified."
    • Ken (08:53): "Your problem is you don't have anything to budget."

• Empowerment Over Circumstance:

  • Jade and Ken encourage Jennifer to take control of their destiny instead of relying on luck or windfalls.
    • Jade (09:05): "I don’t want you to think that the only way you get ahead is something haphazard happens...I want you to have the confidence...to get out there."
    • Ken (09:42): "You have got to take some ownership. We’re not just going to sit around and wait for the settlement."

4. The Baby Steps Roadmap

• Follow Baby Steps, Regardless of Settlement Amount:

  • Jennifer confirms familiarity with the Ramsey Baby Steps; Ken and Jade instruct her to rigorously follow them no matter how much money comes in.
    • Ken (09:49): "So it doesn't matter if it's 250 or 5 million. The baby steps. That's what you do."

• Caution about Settlements:

  • Settlements often arrive slower and smaller than anticipated; fees and taxes can substantially reduce the final amount.
    • Ken (10:01): "Settlements...have a sneaky way of taking way longer to get paid out...sometimes they don't end up being the amount you were told."
    • Jade (10:13): "Those lawyers, those fees, those taxes..."

---

Notable Quotes & Memorable Moments

• On Financial Education:
  • Jade (05:13): "You can't out earn financial illiteracy and you can't out earn stupid choices with money."
• On Budgeting vs. Income:
  • Ken (08:53): "Your problem is not budgeting. Your problem is you don't have anything to budget."
• On Taking Control:
  • Jade (09:05): "You’ve got to start saying, okay, I’m the master of my destiny here, and I’ve got control."
• On Settlements:
  • Ken (10:01): "Sometimes...shockingly, they don't end up being the amount that we were told."

---

Timestamps for Key Segments

• 00:43 – 01:01: Jennifer explains the uncertain settlement amount
• 01:46 – 02:29: Jennifer shares her family’s income history and employment
• 03:38 – 04:19: Jennifer details their debts, including federal restitution
• 05:13 – 05:46: Jade discusses the crucial need for financial education
• 06:13 – 06:48: Jade outlines two non-negotiable boundaries (no borrowing and budgeting)
• 07:09 – 08:25: Ken and Jade address the need to increase household income
• 09:05 – 09:41: Jade emphasizes Jennifer taking control over her situation
• 09:49 – 10:13: Ken and Jade reiterate the value of following the Baby Steps and warn about settlement delays/costs

---

Conclusion

Jade and Ken compassionately but firmly guide Jennifer toward a new financial path, warning her not to rely solely on an impending windfall. Their advice centers on education, paying off debt, building new habits, and most importantly, increasing income to achieve lasting financial stability. Following the Ramsey Baby Steps and becoming an active, accountable participant in her own financial future are key themes echoed throughout the conversation.

Transcript

[Zander Insurance Representative]

In today's digital world, you need ID theft protection. That actually works. Protect yourself.

[Jennifer (Client)]

@Zander.com I am coming into a bunch of money through a settlement, and I just. I don't have any financial background. I don't know what I'm doing. Like, I'm going to go through the baby steps very quickly once I get that money, but then I have no clue what I'm doing here.

[Jade (Financial Advisor)]

Wow. So I can tell this money right now feels a little bit like a stressor, and I can understand that. How much money is it?

[Jennifer (Client)]

So the floor is a quarter million dollars and the ceiling is $5 million.

[Zander Insurance Representative]

Whoa.

[Jennifer (Client)]

Wow.

[Ken (Financial Advisor)]

That's a big stretch. Can you give us some variables as to what you know, which would determine where it lands in that massive range?

[Jennifer (Client)]

Basically, it's whatever. Like, there's a history of settlements with this particular company. The highest one settled for $180 million. But it's not like, that's not 100% my situation.

[Jade (Financial Advisor)]

When will you know?

[Jennifer (Client)]

My attorney told me it'll settle this year.

[Jade (Financial Advisor)]

Okay. Okay. But you know for a fact you're getting 250 at least?

[Jennifer (Client)]

Minimum, yes.

[Jade (Financial Advisor)]

And you know that for a fact?

[Jennifer (Client)]

For a fact.

[Jade (Financial Advisor)]

Okay. How much? So. So tell us your financial situation. Give us a picture. Because you've said, hey, I'm not financially literate. What is that equated to? How much debt? Tell us what's going on.

[Jennifer (Client)]

Okay, so my. The most I've ever made in a single year is $42,000. And like, so we just did our taxes last year and we did $31,000.

[Jade (Financial Advisor)]

Between the two of you?

[Jennifer (Client)]

Yeah.

[Jade (Financial Advisor)]

You and your husband?

[Jennifer (Client)]

Yeah.

[Jade (Financial Advisor)]

What kind of work is that?

[Jennifer (Client)]

Well, initially he was. He was working at a foundry, and then he moved across the country for a better job, which was also a foundry, but just more money.

[Jade (Financial Advisor)]

But what about you?

[Jennifer (Client)]

I don't work.

[Jade (Financial Advisor)]

And you've never worked?

[Jennifer (Client)]

I worked. Like, I think in my life, I've worked a total of maybe three years.

[Jade (Financial Advisor)]

Why is that?

[Zander Insurance Representative]

Listen, identity theft doesn't happen because you're careless. It's part of the modern world. Even when you do everything right, criminals can steal your information and turn your life upside down. That's why I've told people for years to have identity theft protection. And the only one I've ever recommended is from Zander Insurance. They monitor for fraud. And if something happens, they do the hard work to restore your identity. Go to zander.com and protect yourself.

[Jennifer (Client)]

Today, I think in my life I've worked a total of maybe three Years.

[Jade (Financial Advisor)]

Why is that?

[Jennifer (Client)]

It's hard to tell like one, one thing because it doesn't make sense on its own. Like everything's kind of a snowball effect. So.

[Jade (Financial Advisor)]

So there's not a strong working history has in the income that is brought in is, is low compared to, you know, median standards out there in the U.S. yeah. Tell us, tell us about the debt. Tell us about what your lifestyle has looked like.

[Jennifer (Client)]

Okay, so our debt combined is around $55,000 total. That's the car payment, that's credit cards, other financial obligations that we have. Like what? Another one of those snowball things. I owe Federal restitution for $39,000 taxes.

[Ken (Financial Advisor)]

What's the plan? That's okay. Everything stops. There's a screeching tire sound here. What is the plan on the $39,000? I'm assuming you're in some type of agreement or payment plan.

[Jennifer (Client)]

Yes, yes, yes. I have to submit like our financial situation once a year to the DOJ and they review it and then tell me what I have to pay monthly. They put a hold on my payments for a year because we were not doing well.

[Ken (Financial Advisor)]

Okay.

[Jade (Financial Advisor)]

Okay. So you got a heart. You got.

[Ken (Financial Advisor)]

So at least we have something working there.

[Jade (Financial Advisor)]

Okay. Going back to your initial fears. Yeah. The best thing for you is going to be to learn as much information as you can. And you call the right place to get that.

[Jennifer (Client)]

Yeah.

[Jade (Financial Advisor)]

My, my fear for you going forward if you don't choose to change and learn more about is debt. Okay. Because what can. It doesn't matter how much money you make, you can't out earn financial illiteracy and you can't out earn stupid choices with money. Right. And you can't, you know, settlement out of it. None of that will work. You'll blow through it. So.

[Jennifer (Client)]

Right.

[Jade (Financial Advisor)]

The biggest thing that I want to get you connected with is before we get off the phone, I'm going to send you some resources and I want you to just full force go into them. I'm going to send you the total money makeover. We're going to get you hooked up with every dollar and inside of every dollar there's a lot of teaching materials. But I want you to go old school and I'm also going to give you Financial Peace University because that's really, that's like the intensive version and I want you to do that.

[Jennifer (Client)]

Yeah. I watched Financial Peace University when I was 20, so I'm, that's why I was familiar with the baby stuff and everything.

[Jade (Financial Advisor)]

Good. Then I want you to go back and Refresh it, because even the best of the best of us need to go back and get a refresher on that. So what's going to happen when this money comes in? Absolutely. You're going to take it and you're going to pay off the restitution, you're going to pay off the credit cards, you're going to pay off the car. But the precursor to the baby steps working is twofold. And these are the things that you've got to lock in. And if you don't lock them in, nothing I tell you is going to work. Okay, so here we go. Number one, you have got to decide today, I don't borrow money. You have to stop borrowing money for any reason. I just don't borrow money. Because what will happen is there'll be something that you want and you'll go, well, I can put a lot down and you'll just kind of creep over that line. So. So you've got to decide, I don't borrow money anymore. That is going to keep your income yours, and it's going to keep the risk off your back, and it's going to keep you from sliding back into those behaviors that you're afraid you're going to slide back into. So you've just got to put a hard boundary there. Boundaries are good. Okay? That's thing one thing too is you've got to become a budgeter today.

[Jennifer (Client)]

Okay? So just for some context, like we budget everything. We budget everything. We don't buy extravagantly. Like, the debt that we have on our credit cards is for necessities that we could not cover.

[Ken (Financial Advisor)]

Okay, can I jump in? Can I jump in? Jennifer, I know you're hurting, and Jade's right, what she said. But can I tell you something? The reason you guys are hurting is because you don't have enough income. And I absolutely believe that you believe that everything you put on that credit card was a necessity. But I have a hard time agreeing with your classification of it. What is a necessity is you and your husband both in the United States of America, in the Minneapolis area, should be making combined minimum 60,000.

[Jennifer (Client)]

Yeah.

[Ken (Financial Advisor)]

You know it and I know it. I don't say that in any way with a hint of judgment, so please don't feel judgment. But you called us to help you, and I'm telling you, Jade's 100% right. But when she told you the truth, your response was, well, we do budget. We just had all these things happen and we had to go to a credit card. No, what you need to do is be making more income so that when things happen, we can cover it. Okay, so the baby steps get us to that place. And baby step three. So I'm gonna tell you, I'm gonna give it back to Jade, but I wanted to jump in and say I wouldn't wait until this settlement comes in.

[Jade (Financial Advisor)]

Thank you. I was just about to get started.

[Ken (Financial Advisor)]

I think you need to go get a job today. I don't care if it's the late shift at the local gas station. I don't care if it's stocking shelves at Walmart. I don't care if it has anything remotely close to dignity attached to it in your mind, because good, hard work is dignified. I think you guys got to change your life and take some ownership of this situation and go. We're no longer going to get in a situation like that because we do know how to budget. But your problem is not budgeting. Your problem is you don't have anything to budget.

[Jade (Financial Advisor)]

Yeah. And I want to take that a step forward and tell you, though, I'll tell you my why behind it. I'm sure Ken has one. I don't want you to think the only way you win is by coincidence.

[Ken (Financial Advisor)]

Yeah. You know what I'm saying?

[Jade (Financial Advisor)]

I don't want you to think that the only way you get ahead is something h. You know, happen stance takes place. And thank goodness. Right. I want you to have the confidence to know that you can get out there to quote Dave Ramsey, you can kill something and drag it home. You can go out there and make it happen. And the way things are, life is kind of happening to you. Oh, he went here to do this foundry, and he went here to do this foundry, and then the accident happened, and then the. This, that. No, no, no, no, no. You've got to start taking life by the horns. And you've got to start saying, okay, I'm the master of my destiny here, and I've got control, and I would love, love, love for that to take place before a dime of this money.

[Jennifer (Client)]

Okay.

[Jade (Financial Advisor)]

You know what I'm saying?

[Ken (Financial Advisor)]

But here's the deal on the settlement. We're going to tell you to walk the baby steps out. Are you familiar with the baby steps?

[Jennifer (Client)]

I am.

[Jade (Financial Advisor)]

Okay.

[Ken (Financial Advisor)]

So it doesn't matter if it's 250 or 5 million. The baby steps. That's what you do. But you have got to take some ownership. Now, we're not just going to sit around and wait for the settlement. Because let me tell you about settlements. They have a sneaky way of taking way longer to get paid out than maybe that you were told. And sometimes, Jade, shockingly, they don't end up being the amount that we were told.

[Jade (Financial Advisor)]

Those lawyers, those fees, those taxes.

[Zander Insurance Representative]

The best ID theft protection comes from Zander. Real monitoring, full restoration, no fluff. Learn [e-mail].