'It’s impossible”: Michigan family with 2 kids is about to voluntarily cut their income by 60%. Dave Ramsey pulls them back from the brink of financial chaos

Emily and her husband, who live in Grand Rapids, Michigan, seem to be on the verge of such a situation. In a recent episode of The Ramsey Show, Emily discussed how her husband’s decision to go back to school for a year could create a 60% plunge in their household earnings.

Dave Ramsey was not a fan of the idea. “Your budget is not tight, it’s impossible!” he said.

Here’s why Americans should create a safety net before making major life decisions.

Unplanned decisions

Only 45% of Americans consider themselves “disciplined” financial planners, according to Northwestern Mutual's 2024 Planning & Progress Study.

Without a robust plan, many struggle with feelings of anxiety and apprehension about their financial situation. Some 33% of adults surveyed by Northwestern Mutual said they feel financially insecure.

Until recently, Emily said, her family wasn’t part of this insecure cohort. She has been following Ramsey’s content for over 26 years and has successfully implemented his 7 Baby Steps method to reduce debt.

The couple’s combined income is $100,000 and they bought a relatively cheap home in 2020 at a relatively low interest rate.

But Emily’s husband was recently approved for a scholarship program to train as an electrical lineworker. The course is intensive and wouldn’t allow him to work part-time for at least eight to 10 months.

That means the couple and their two children would have to survive on Emily’s annual salary of $40,000 until he graduates.

Emily’s husband could boost his income by completing the course. The median lineman salary is $79,940, according to Lineman Central. And some specialized lineworkers can earn six figures. Emily says her husband could make $40 to $50 an hour as an apprentice and much more with a few years of experience.