We Make $200,000 And We’re Still Broke

0:00Brought to you by the EveryDollar app. Start budgeting for free today. My husband and I are both 50. We have a combined growth income of a 200K net 161. We did not pay taxes in 2023. He owns his own business and HVAC business. And with the accounting, we found out last October for 2024, which filed late, was 47,000 that we owed. Well, now because we didn't find out so super late, we now did not get to correct anything for 2025. And so we own additional 25,000 for 2025. We also have combined current consumer debt, which again, I am not real proud of this by any stretch, but it's about 137K. What is that Jessica? What is that consistent of the 137? Oh, the good, the good stuff. It consists of credit cards.

1:04Some small, you know, sides, you know, loans to try to, you know, eventually re-buy, but then didn't necessarily re-buy. But then also we had a, after we purchased our house in 23, we had a really bad septic issue. And had to replace that end, our drain field, which cost the 50 grand, all that. And so you took a loan out for the whole 50? We sure did. Yeah. Can I ask a stupid question on behalf of America? Sure. Maybe not. Well, for a couple that's making 13,400 dollars a month in take-home pay, why were you turning to debt at every corner? Where was all that money going? I think it was just all stupid. You're 100% right. We weren't making that at the time. That's just where we're at. This is newer income. So you guys have made more money over time, and have probably spent it all as most people do.

2:04As soon as they get a raise, they go, sweet more money for us to make more bad decisions with. Right. We jumped on that bad decision train, absolutely. And again, not proud of that by any stretch. Well, you're, that's normal, Jessica. You're not alone in this. And I think there's hope here. You have 137,000 in loans that cross-consumer debts. You have another, 75K, O to the IRS. So it's a little over 200,000 that you guys have. Correct. That's the total mess to clean up. And that doesn't include your mortgage. How much of that is your mortgage? Yes. Our mortgage is $4,150 a month. $4,150, yeah. Okay. Anyway, that's a monthly. So our mortgage is not even included in that. And so our mortgage is $5.75 total. Okay. That's what's left on that. Okay. Well, the good news is you guys have an incredible income. The bad news is you're going to have any requirement either at 50 years old.

3:04Yeah. You'll make up for that later. You guys are going to be working probably longer than you wanted to. But if you can keep making 200 grand, this is a solvable problem. Yeah. On napkin math, you go, all right, 50 grand a year, we're done in four years. George here, look, your phone bill should fit your budget. Not the other way around. Enter, boost mobile. Their low rates mean you can unlock up to 600 bucks in savings over the so-called big carriers. So bring your phone, keep your number, and pay just 25 bucks a month forever on their unlimited plan. Guys, stop paying more just because you always have. Head to boostmobile.com slash Ramsey to make the switch today. Based on average annual payment of AT&T for rise and anti-mobile customers, compared to 12 months on the boost mobile unlimited plan as of January 2026. See website for full details. 50 grand a year, we're done in four years. Yeah, if you guys can find a way, and I just took what you bring home a month, minus the mortgage, you know, you should have around 11,000-ish left.

4:06And if you guys can throw 6,000 a month at this debt, Jessica, which means you live on nothing. I mean, you guys, your grocery budgets, like 200 a week, if that. Like, I mean, it is like, we are just, we are doing nothing, but paying this off. Yeah, and if you can- It's under three years. Yeah, if you can throw, if you can, if you can be intense for three, three and a half years, you guys can get out of this. And that doesn't even include selling stuff, right? Or working extra or whatever that is. I mean, there's, there's stuff in here that you can move. It's just going to be, it's going to be a couple of years of grinding it out. I may or may not be wanting to cry right now because that makes me real excited because we're both on the same page. We both wanted to have this. Yeah. And- Are you guys both working full-time, Jessica? Are y'all both full-time? Yes. Okay. Yes, we are. And kids, do you have kids? No. Okay. Okay. So that's a good, I mean, honestly, that's great. And if you guys- Let's mouse the feed. Yeah, and it takes a level of even a step of humility at 50 years old after two great careers to say,

5:09hey, we're going to go work nights. And you and your husband just handshake and say, all right, we're going to do it at 9 p.m. tonight because we're going to leave at five our jobs. We're going to go work somewhere for four hours. And we're going to come home. And that's going to be an extra 1,500, 2,000 bucks a month that's added to this. That shortens it. You know what I mean? Like you start to see me see a path out. It's just going to be hard, Jessica. I mean, but I think you guys are at it. I mean, even as you're explaining coming on to the call, how you're feeling. Like the emotions are just right there. They're right there, which actually is a good thing because you're actually feeling something. And that's going to help in the motivation of it all. It really will. Yeah. What was going to be your next step if you hadn't called? Well, I mean, obviously looking at the debt consolidation. Just literally, I mean, we've already talked because we're like, all right, we got to get these baby steps started. We've already got to, you know, throw them out our spreadsheet, live in that life. And then, you know, yeah, calling debt consolidated.

6:10What can we do to, you know, shorten this pain, you know, the way both are anxious about. And we neither of us like it. It's very wavy. And, you know, we've got kids that are getting married and all the things. And so it's just, you feel real handicapped in your abilities to really be progressively moving forward. And, you know, trying to even bless them with, you know, helping to pay for all this. And so you just, I don't, we don't like dealing this pressure either. And so we're definitely, it's to that point of just being super overwhelmed. Well, I want to free you of feeling the obligation that you need to pay for everything or else you're a bad mom. I think you guys are incredible. The fact they're even struggling with this tells me how much you care about these kids and your family. And so here's the truth. You can't cover a wedding right now. You can't bless them with some outrageous gift. But what the best thing you can do is clean up your own financial mess so that they don't have to take care of you later on in life.

7:10That's the true burden to worry about. And maybe later on down the road, you do get to bless them with an amazing gift six years from now. Yes, that would be, that would be awesome. So can we say we're doing this in three years that you'll call us back and do a debt free scream? Oh my gosh, I would, I would love to. Well, here it is. Yes, absolutely. You spit shake with your husband. Six thousand a month is going toward the step. The IRS debt comes first because they will screw up your life. So let's make sure that we cover that. Then attack all of the other debts sell everything we can. And you don't have anything to sell Jessica. Do you have like a, a four wheeler, an extra car? I mean, I don't even know what to do. So we do, we know it's a vehicle, but we do have a, a camp trailer that we've definitely, that's one of the things my, and my husband has said, let's, let's try to get rid of it and sell it. Yeah, even talked about selling the house to be honest. Um, not sure that they're, I mean, there's maybe 120, 20, you know,

8:11one in there. Maybe, maybe, maybe in their equity. That's like your like last ditch effort. That's like we're on the verge of bankruptcy. We're going to have to sell the house, but I wouldn't do that. You guys have an amazing income and we are rooting for you. Create your free every dollar budget today. The simplest way to budget for your life.