We're Millionaires But Struggle To Pay Our Bills

Summary

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Podcast Summary: "We're Millionaires But Struggle To Pay Our Bills"

Podcast: The Ramsey Show Highlights
Host: Ramsey Network (Dave Ramsey, primary speaker)
Date: October 6, 2025

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Episode Overview

In this episode, a caller seeks advice from Dave Ramsey after experiencing significant financial turmoil. Despite being net-worth millionaires, the couple struggles with month-to-month expenses following a job loss, depleted savings, and mounting debt tied to real estate investments. Dave guides the caller through the realities of cash flow, asset management, and the critical importance of living within one's means—even at high income and net worth levels.

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Key Discussion Points & Insights

1. The Situation: Millionaire on Paper, Struggling in Reality

• Caller describes recent setbacks:
  • Husband’s job loss led to lower income.
  • Emergency fund and some retirement savings depleted.
  • Acquired new debt, partly due to difficulty selling a property and investing more in it than planned.
• Main pain point: Although they are net-worth millionaires, their monthly bills overwhelm them.

  "We are net worth millionaires, but we're struggling to get by month to month." (Caller, 01:08)

2. The Real Problem: Over-Leveraged Lifestyle

• Expenses exceed income due to high mortgage payments spread across multiple properties.
• Living expenses total around $15,000/month, with most of the burden on mortgage payments.
  • Two major mortgages: $4,600 and $3,400/month.
• Dave zeroes in:

  "You're net worth millionaires, but you've leveraged yourself into real estate and gone broke." (Dave, 01:50)

3. Asset Liquidation as a Path Forward

• Dave’s tough advice: Sell all real estate except the personal residence; the rental/investment properties are not cash-flowing and are actually costing money.

  "You need to be selling every piece of real estate you have except your personal residence....Your million dollar net worth is not paying you enough to justify the expenses that you have." (Dave, 01:50–02:11)

• Points out that high net worth with high associated debt is a "phantom net worth."

  "But you've got debt associated with all this net worth, so the net worth is invalid." (Dave, 02:13)

4. A Reality Check on Lifestyle

• Dave challenges the caller’s assumptions about necessary living expenses.

  "It is [enough] if you don't need $15,000 a month to live. Most people don't. That's ridiculous. Are you catching what we're saying?" (Dave, 02:25)

• Emphasizes that the couple is living beyond their means and must lower their outgo to fit their reduced income.

5. Direct Remedies Proposed

• Sell high-expense homes: Move into a fully paid-for home instead of maintaining costly mortgages.

  "Buy a paid for house that has no mortgages." (Dave, 03:18)

• Reduce personal consumption and debt: The quickest fix is to sell the unaffordable properties and reset lifestyle expectations.

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Notable Quotes & Memorable Moments

• On the core problem:

  "You bought houses you can't afford, honey, that's what we're saying. And so get your dad gum outgo where it fits within your income."
  (Dave, 03:56)

• On phantom wealth:

  "You've got debt that's so high that it is invalid. That is creating personal consumption debt on real estate."
  (Dave, 03:26)

• On resetting expectations:

  "You've been living higher on the hog than you can afford or than you can afford now anyway."
  (Dave, 03:56)

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Important Timestamps

• 00:06 — Caller outlines their financial downturn over the past year.
• 01:08 — Reveals being net-worth millionaires but cash-poor.
• 01:43 — Monthly expenses total $15,000, much of it tied to mortgages.
• 02:11 — Dave recommends selling all real estate except primary residence.
• 02:25 — Dave challenges necessity of high monthly expenses.
• 03:18 — “Buy a paid for house that has no mortgages.”
• 03:56 — “You bought houses you can't afford, honey...”

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Conclusion

This episode exemplifies Ramsey’s practical, no-nonsense approach: high net worth is meaningless if accompanied by unmanageable debt and unsustainable expenses. The solution—sell off assets that are draining cash, pay down debt, and scale back lifestyle until it fits within current income—drives home the foundational Ramsey principle that true wealth is measured by financial peace and positive monthly cash flow, not just the sum of your assets.

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Transcript

[A]

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[B]

I'm feeling a little discouraged. A year ago, my husband and I were on baby step four. We had two full time jobs, three additional income streams, but in the last 12 months, my husband lost his job. We're down to income streams. We had to deplete our emergency savings, use some retirement funds and go into debt. And why we are. Well, I guess I can explain that.

[A]

You didn't have to, but you did. Why?

[B]

We were trying to get out of debt by selling one of our properties.

[A]

You got into debt, you said?

[B]

Yes, because it took us longer to sell the property and we had to put more into it to sell it than we were expecting to.

[A]

But why did you not just go get the job and replace the income?

[B]

I. I'm sorry, which job?

[A]

The one he lost.

[B]

Oh, he did. He found another job, but he had to take a pay cut.

[A]

Okay, there's a lot of have to's in this story. All right. And okay, how can I best help, darling?

[B]

Well, so we, we are net worth millionaires, but we're struggling to get by month to month. And we recently sold one of our rental properties like I said, to get us out of debt. And we're just at a crossroads and unsure of what the next best move is.

[A]

Okay, if you have, if you have a net worth, so. So is your household expenses too high?

[B]

Yes.

[A]

Okay, so what are we doing to cut those?

[B]

I mean, I've cut back on everything.

[A]

What's it take for you to live a year?

[B]

Rough. Well, including the mortgages that we have, it's around $15,000 a month.

[A]

Okay, so you're net worth millionaires, but you've leveraged yourself into real estate and gone broke. You need to be selling every piece of real estate you have except your personal residence, your cash. You're not cash flowing on this. Your million dollar net worth is not paying you enough to justify the expenses that you have.

[B]

Okay, so.

[A]

But you've got debt associated with all this net worth, so the net worth is invalid.

[B]

Okay, but my husband's income isn't enough for us to live off of, and we need additional.

[A]

It is if you don't need $15,000 a month to live. Most people don't. That's ridiculous. Are you catching what we're saying? What's the biggest chunk of the 15? Give us the real numbers.

[B]

I mean, the two mortgages, obviously.

[A]

So what are those two mortgages?

[B]

One is 4601 is 3400 right.

[A]

So sell them.

[B]

Right, well, and that's, that's what I'm saying is we did sell a property and we have.

[A]

Yeah, but I'm not talking about the property you already sold. I'm talking about the one that's killing you right now. You have houses you can't afford.

[B]

Okay? It's, I mean, it's worth 1.8 million and we have about 260.

[A]

Wonderful. But it's killing you.

[B]

And, and then do what with the money?

[A]

Buy a paid for house that has no mortgages.

[B]

Okay.

[A]

You know, you've got debt that's so high that it is invalid. That is creating personal consumption debt on real estate. You have two houses, neither of one of which are rentals, neither one of which are investment properties. You are consuming $8,000, $9,000 a month in mortgage payments. Am I understanding you correctly?

[B]

Yes, sir. We, I mean, we have a third rent or a third.

[A]

I know, but that those properties right there are creating the $15,000 a month nut you want to crack.

[B]

Correct?

[A]

Yeah. And you. So you bought houses you can't afford, honey, that's what we're saying. And so get your dad gum outgo where it fits within your income. And that's called selling these extra houses. You've been living higher on the hog than you can afford or than you can afford now anyway. Create your free every dollar budget today. The simplest way to budget for your life.