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

Summary

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

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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.

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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)

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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.

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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)

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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

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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.

Transcript

[Dave Ramsey]

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

[Sarah]

Me and my husband started a business back in 2020. And addition to the debt I have now, we racked up about 34,000 in credit card debt to sustain the last couple of years. The business has been doing great and is steady. And I was able to pay that down, just my credit card debt, to 19,000. But out of the blue, I inherited $108,000. And I'm just like, what do I do with this, with all of my debt?

[Dave Ramsey]

Wow. Who died?

[Sarah]

I just need advice. Nobody died. My. It was just like a. Like a early inheritance while they were still alive.

[Dave Ramsey]

Oh, they. Who advanced. Who advanced you the money?

[Sarah]

My uncle.

[Dave Ramsey]

Okay. Wow, you got the rich uncle.

[Financial Coach]

It's very nice.

[Dave Ramsey]

I wondered where he was. Okay, everyone wants. So your business went through hell in 2020 and you subside. You subsidized it with credit cards up to 34,000.

[Sarah]

Yeah.

[Dave Ramsey]

And then you told me it's doing really well, but it only has paid down a few thousand dollars. What does doing really well mean? How much profit are you making?

[Sarah]

About 7,000amonth.

[Dave Ramsey]

Why have you only paid down a few thousand dollars then? Are you profiting 7,000amonth or you're grossing 7,000amonth?

[Sarah]

I'm one grossing, but also I paid. I was paying for just, you know, living expenses and food and stuff.

[Dave Ramsey]

But no, I'm talking about your business.

[Sarah]

It was. My credit cards were 34,000, so they're.

[Dave Ramsey]

I know. And they're down to 17. And 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.

[Sarah]

Really hardcore in like the last year. And we kind of did things a little bit backwards where we saved for a home down payment and all that.

[Dave Ramsey]

Okay, let me go back. Is your business making a profit or a gross revenue of 7,000? Which is it?

[Sarah]

And I'm. And then.

[Dave Ramsey]

Which is.

[Sarah]

Yes, it's making a profit. It's making a profit of 7,000. And then I also work full time at a job, and I make about 7,000.

[Financial Coach]

Okay, so you're bringing home. Okay.

[Dave Ramsey]

Okay, so you have a $14,000 a month income and you're married.

[Sarah]

Yes.

[Dave Ramsey]

And he makes what?

[Sarah]

Well, he's. He was with the business with me, so that's included one of the $7,000 a month.

[Dave Ramsey]

Okay, so your total household income is $14,000 a month?

[Sarah]

Yes.

[Dave Ramsey]

I'm still not positive. You know what profit means. This is a Real profit. After all, business. Business income minus business expenses equals profit. Taxable income is $7,000 a month. Is that what you're telling me?

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[Dave Ramsey]

Taxable income is $7,000 a month. Is that what you're telling me?

[Sarah]

Yes.

[Dave Ramsey]

Okay.

[Financial Coach]

And are you putting any of that money back into the business? Are you guys just bringing home exactly what you profit?

[Sarah]

We're just not budgeters. I don't know. We, like, spend like a couple thousand a month going out to eat.

[Dave Ramsey]

Okay? So. But here, grasp with me here. There's a reason I'm asking all this regarding your inheritance, okay? Because I don't want this 1004200 to enable you to continue stupid butt behaviors that are gonna destroy you.

[Sarah]

I don't either.

[Dave Ramsey]

Okay. And that's what I'm trying to get to. Because I wanna love you. Well, here. I wanna help you. And so, yeah.

[Financial Coach]

And what we found, Sarah, is that money magnifies what you're already doing. So you're like, we're not great budgeters. We spent a couple of thousand just eating out, like, all that. And that's just.

[Dave Ramsey]

And this allows you to continue in misbehavior.

[Financial Coach]

Do that in a bigger way, which we don't want. Right. And so I don't wanna do. No, that's right. That's right. Okay. I'm so glad. How's your husband? Is he on completely how you guys have been doing money?

[Sarah]

He. He lets me do everything. He just says, you handle it. I trust you.

[Financial Coach]

Okay, well, that's not good.

[Dave Ramsey]

That's not good, too.

[Financial Coach]

That's got to end, too.

[Dave Ramsey]

Apparently, that's not working.

[Sarah]

Okay.

[Dave Ramsey]

Because y' all suck at this.

[Sarah]

Yeah.

[Dave Ramsey]

So, I mean, 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 I'm going to take the 104,000, act like I don't own it, and Put it in a High Yield savings account, and then I'm gonna go home, and the two of us are gonna sit down on $14,000 a month, and in three months, we're gonna pay off this credit card.

[Sarah]

Okay?

[Dave Ramsey]

$6,000 a month on the credit card until it's gone. And you're gonna not go out to eat at all until you do that.

[Financial Coach]

And that money will be going straight to the credit card.

[Dave Ramsey]

And you're gonna really learn what real profit is on the business. Are you keeping a separate set of books on the business? No. Yes, you are. Have you kept your taxes paid?

[Sarah]

I owe, like, $10,000 this year.

[Dave Ramsey]

Have you been doing quarterly estimates? Do you know what that is?

[Sarah]

No, I know what it is, but we've been doing it.

[Dave Ramsey]

Okay, but $7,000 a month, $70,000. $84,000 a year. And so taxes on that are not $10,000. Taxes on that are $25,000. Have you filed tax returns?

[Sarah]

Oh, yes. My numbers are probably just wrong. Sorry.

[Dave Ramsey]

I think that's probably the accurate statement because I just. There's. I'm fishing around in some. In murky water here. I can't tell what's going on. Okay? So. No, you do not. You need to use the 100,000. The $100,000 gift is a double gift. One, it's 100,000. The second thing is, it's going to make you all wake up and behave. If you don't, 100,000 won't save you. Two million won't save you. And so, number one, the business ought to be. Have a separate set of books.

[Financial Coach]

You and your husband, tonight.

[Dave Ramsey]

Y'. All. Y' all need to sit down, listen.

[Financial Coach]

Have a long week ahead.

[Dave Ramsey]

You need to sit down. Listen.

[Financial Coach]

Figuring all of this out.

[Dave Ramsey]

So in business, you set a separate checking account and a separate set of books for the business. Only thing goes into that checking account is rent. Is income from the business. Only thing comes out of that checking account. Expenses from the business. What's left, by definition, is called profit. Only then can you take it home. When you take it home, you should set aside 25% of whatever you take home in yet another savings account. For your quarterly estimates that are supposed to be filed, if you are not filing them after five years, you are being penalized every year, single day, for not filing your quarterlies. You're violating every IRS regulation. It's costing you out the butt. Yeah.

[Financial Coach]

They need to sit down with an accountant, probably.

[Dave Ramsey]

Hello.

[Financial Coach]

Yeah.

[Dave Ramsey]

And start. Yeah. And get the dadgum business running like a business. You're you've under the illusion you can out earn your disorganization and chaos and you can't. I tried it. It doesn't work. I caught up, hit me in the back of the head, knocked hair off my head. Don't do this, okay? It's not fun. You're going to bring pain to your life. It's not cute and it's not okay. You're not a teenager. So you guys 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 and what to do with it and immediately need to clean up this debt. Because if you're making $10,000 a month, it's ridiculous, that is that you have not reduced the debt any further than you have.

[Financial Coach]

So no more.

[Dave Ramsey]

No more eating out.

[Financial Coach]

No. Well. And no more. You just take care of it. Because, Sarah, you've been on an island. I mean, he's left you there on an island and you've signed up for that trip and so that has to end.

[Dave Ramsey]

And there's no food on the island.

[Financial Coach]

Survival survivor. We don't want that. We want bougie. Sarah, we don't want to kick you off the island. But. No but sitting down and you guys together do a budget. And if you hold online, Sarah, whatever you want to do, Kelly's gonna pick up. We're gonna give you total money makeover. We're gonna give you every dollar and entree leadership. Throw that book into or. And so, but, but to sit down and to plan out your income that you guys have that has hit your account as a household and say here's exactly where our money's going. Rent or the more. I think you have a mortgage. You said you'll got a house. So mortgage, lights, electricity, subscription. I mean, you list out everything you guys spend money on and then you're going to take a. You're going to sit there and start deleting categories because you're not going out to eat, you're cutting subscriptions, you're cutting your lifestyle to nothing until this credit card debt is paid off. And I mean, honestly, I don't know what you're talking about.

[Dave Ramsey]

Start running this like you work for someone and you're going to get fired if you continue to suck at your job.

[Financial Coach]

Because the problem is, is 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. You need to learn and actually participate and have the action towards this change. You have to feel it and go through it in your life.

[Dave Ramsey]

And if the numbers are anywhere near close, you're gonna do it in about three months once you get your head screwed on.

[Financial Coach]

Yeah, y' all have to sit down together, Sarah, tonight.

[Dave Ramsey]

And 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. This is it. Create your free every dollar budget today. The simplest way to budget for your life.