‘This Is Insane,’ ‘Ramsey Show’ Host Says As Couple Taking Home $20K A Month Pays $8,600 In Housing Costs

Big income. Bigger payments. And a growing sense that something is off.

Ryan told “The Ramsey Show” he and his wife bring in about $200,000 a year, roughly $20,000 a month, yet still feel stuck living paycheck to paycheck in Flint, Michigan, with $8,600 going toward housing. 

The couple has about $9,000 in savings and one car loan of between $10,000 and $11,000. They also have two leased trucks and a mortgage. 

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In addition, they took out two loans against their retirement accounts, one from a 401(k) and another from a Roth, to pay off $34,000 in credit card debt. They are repaying those retirement loans through payroll deductions.

“This is insane,” co-host George Kamel said.

A Strong Income But Debt Keeps Circling

Ryan said the strain began after a move that stretched their spending beyond what they were earning. Despite the debt, they continue contributing about 8% each to retirement, with employer matches of roughly 3.5% to 4%.

“I thought, well, man, we should be getting an extra $1,000 to $1,500 a month,” Ryan said. “And it just didn’t start equating to that.”

Ryan said he is committed to getting out of debt and tired of living paycheck to paycheck on their income.

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The $1,000 Emergency Fund Question

Ryan asked whether, after using their $9,000 in savings to pay off the car loan, they should keep more than $1,000 set aside given their expenses.

“The $1,000 does not change based on expenses or income,” Kamel said. “It’s a flat $1,000 and it’s not meant to cover everything.”