Podcast Summary: "You're Pissing Away $14,000 A Month!"

The Ramsey Show Highlights – September 25, 2025
Host: Dave Ramsey (Ramsey Network) | Guest: Sarah
Featuring: Ramsey Network Financial Coach

Episode Overview

This episode features a call-in from Sarah, a business owner who is struggling with debt management despite a high household income. Sarah recently received a $108,000 early inheritance and seeks advice from Dave Ramsey and a Ramsey Network Financial Coach on how to use the money wisely while correcting ongoing financial missteps. The team delivers tough love, emphasizing budgeting basics, business organization, and the dangers of letting increased income enable bad money habits.

Key Discussion Points & Insights

1. Sarah's Financial Situation (00:06–03:00)

• Business Debt & Inheritance:
  • Sarah and her husband built up $34,000 in credit card debt to keep their business afloat.
  • She has paid it down to $19,000 and recently received a $108,000 inheritance from her uncle.
• Income Questions:
  • Dave presses for clarity on whether the $7,000/month figure is profit or gross income.
  • Ultimately, Sarah confirms a combined household income of $14,000/month (her job plus business profit, shared with husband).

Notable Quote:

"In five whole years, you paid it off about $3,000 a year, which pretty much sucks if your business is making $7,000 a month profit, core really."
— Dave Ramsey (01:44)

2. Revealing Poor Money Habits & Lack of Organization (03:36–04:50)

• Sarah admits to a lack of budgeting and high discretionary spending.
• The inheritance risks enabling further financial misbehavior unless foundational changes are made.
• Her husband is uninvolved in financial decisions, placing all responsibility on Sarah.

Notable Quotes:

"I don't want this $100,000 to enable you to continue stupid butt behaviors that are gonna destroy you."
— Dave Ramsey (03:57)

"Well, that's not good... Apparently, that's not working... Because y'all suck at this."
— Dave Ramsey (04:46–04:54)

3. Immediate Action Plan: Pause & Budget (04:54–05:44)

• Step 1: Put the inheritance away in a high-yield savings account; do not touch it.
• Step 2: Over the next three months, use their robust income ($14,000/month) to pay off the remaining credit card debt aggressively, prioritizing total lifestyle cuts.
• Step 3: Eliminate eating out and any unnecessary expenditures during this payoff sprint.

Notable Quote:

"We've got to adult up here because we're pissing away $14,000 a month. So what I'm going to do in your shoes is... act like I don't own it, put it in a high-yield savings account, and... in three months, we're gonna pay off this credit card."
— Dave Ramsey (04:54–05:17)

4. Structural Changes & Business Discipline (05:44–08:26)

• Separate Business Finances:
  • Open distinct business checking & savings; keep business and personal finances apart.
  • Track actual business profits and tax obligations.
• Tax Realities:
  • Dave corrects Sarah’s misunderstanding of tax liabilities, warning her she's vastly underestimating taxes ($25,000/year on business profit, not $10,000/year).
  • Failure to file quarterly taxes has IRS penalties.
• Professional Help:
  • Both hosts stress the need for an accountant to clean up business operations.
  • Only money left after business expenses and tax withholding should be considered income.

Notable Quotes:

"You need to sit down, run the business like grownups. Then when you bring money home after you've set aside a fourth for your taxes and filed your quarterly estimates properly, then we can talk about how much is really coming into the house..."
— Dave Ramsey (07:54–08:17)

"You're under the illusion you can out-earn your disorganization and chaos and you can't. I tried it. It doesn't work... You're going to bring pain to your life. It's not cute and it's not okay. You're not a teenager."
— Dave Ramsey (07:40–08:08)

5. Building a Budget Together as a Couple (08:26–09:36)

• Joint Responsibility:
  • Sarah can no longer carry the financial mental load alone; her husband must be fully engaged.
  • They need to build a detailed, zero-based monthly budget accounting for every dollar.
• Practical Guidance:
  • Cut all lifestyle expenses down to the essential until out of debt.
  • Use tools (like EveryDollar and recommended reading) for budgeting and financial literacy.

Notable Quotes:

"No more eating out. No... And no more, 'You just take care of it.' Because, Sarah, you've been on an island... and you’ve signed up for that trip and so that has to end."
— Financial Coach (08:27–08:37)

"Start running this like you work for someone and you're going to get fired if you continue to suck at your job."
— Dave Ramsey (09:31)

6. The Crucial Lesson: Don’t Use the Inheritance as a Shortcut (09:36–End)

• Do NOT Pay Debt with Inheritance—Yet:
  • The coach strongly advises against using the inheritance to erase debt; they must first learn discipline, pay off the debt through effort, and change their habits to make lasting change.
• Timeline:
  • With adjustment, the couple should clear debt in just three months.
  • Only after proven change should the inheritance be considered for next steps.

Notable Quotes:

"If you take some of this $108,000 inheritance and just pay off the credit card debt, nothing has changed in you guys. So I would push you not to use the inheritance to pay off the credit card debt. I would force you guys to do it [yourselves]. You need to learn..."
— Financial Coach (09:36–09:53)

"He has to start carrying the emotional weight of this with you together. This is the only way you win. There's really not another option."
— Dave Ramsey (10:01)

Key Takeaways

• High income does not insulate from financial chaos; discipline and organization do.
• Don’t use a windfall as an excuse to perpetuate bad habits—use it as motivation to improve.
• Strict and honest business accounting is crucial for entrepreneurs—separate personal and business finances.
• Both spouses must be involved and accountable in financial management.
• Real change comes through the struggle of doing things right, not cutting corners with unearned money.

Memorable Moments & Quotes (with Timestamps)

• "Who died?" — Dave Ramsey jokes about the inheritance (00:30)
• "Y' all suck at this." — Dave Ramsey (04:54)
• "We've got to adult up... we're pissing away $14,000 a month." — Dave Ramsey (04:54)
• "You're under the illusion you can out-earn your disorganization and chaos and you can't." — Dave Ramsey (07:40)

Important Segment Timestamps

• [00:06]–[02:46]: Overview of debt, inheritance, and confusion over profit vs. gross income
• [03:36]–[04:50]: Dave uncovers spending habits and lack of budgeting
• [04:54]–[05:44]: Immediate plan: save inheritance, aggressive debt payoff
• [05:44]–[08:26]: Business structure, tax realities, call for professional help
• [08:26]–[09:36]: Emphasis on joint budgeting and slashing lifestyle
• [09:36]–End: Lesson: change comes first, don’t shortcut with inheritance

Final Advice

From Dave and the Financial Coach:
Stop the hemorrhage, involve your spouse, use your actual income for debt payoff, build real budgeting habits, and treat your business like a business. Only then can inheritance become a blessing—instead of just another wasted opportunity.