This San Diego married couple lives paycheck to paycheck on $500K-$600K a year — admits to $30K in monthly expenses including car lease payments. Here's Dave Ramsey's advice

An exploration of the San Diego, California, couple’s finances and spending habits reveals how even high-earning households can struggle and end up living paycheck to paycheck.

Spending problem

A whopping 71% of U.S. adults believe earning more money would solve most of their problems, according to a 2023 survey by Empower. Ramsey admits he had a similar mindset in the past.

“I went through a period of time in my life where I thought I could outearn my stupidity, my lack of organization, my lack of detail,” he said. “You can't.”

Bill’s situation illustrates why boosted earnings is only part of the battle.

He told Ramsey the couple spends $12,000 a month on two mortgages for their primary residence and an investment property, while $8,000 to $10,000 goes to charity. The couple also leases a vehicle for $750 a month.

Even for a wealthy household, this level of spending seems excessive. But what bothered Ramsey was how imprecise Bill seemed to be with his figures, which he attributed to the lack of a detailed budget.

“You’re kind of throwing a bale of dollars over the fence and then coming back to see what’s left later,” Ramsey said.

The host recommended Bill sit down with his wife and hammer out a budget that accounts for every dollar coming in and being spent. By doing so they can identify ways to tighten up their finances and set a savings goal. Fortunately, the couple has some easy targets to eliminate in their budget and can start saving right away.