Living Paycheck-to-Paycheck on $600K a Year

[Music] brought to you by the every dooll app start budgeting for free today my wife and I combined we make about5 to 600,000 a year but uh we still somehow AR able to save as much as I believe we should save so our you know so that's my problem I mean our monthly expenses are about $30,000 a month and you know then add taxes to that so we pretty much even out every year and I believe when we make five to $600,000 you should be able to save one I would agree I think the $330,000 a month expense is your clue how much of that is debt payments uh well it's on two properties one is primary residence and one is an investment property and the debt payments on the mortgage are add up to about $12,000 a month yeah why do you need1 18 ,000 a month to run your household uh well about eight to $9,000 go to charity uh for a good cause and then the rest like I'll say about $10,000 is uh for groceries um utilities uh for the car payment and uh a little bit for uh you know towards why do you have car payment when you make $600,000 a year say that again why would you have a car payment when you make $600,000 a year Well we uh one of the car is paid off or the other one it's a lease so we make about $750 a month for that one we have a bigger family five people so you know it's a relatively bigger SUV well which you could have written a check and purchased and should have instead of Leasing and renting your car for $700 a month okay so um yeah you're giving away $100,000 a year in that $30,000 a month budget you said $8 to $10,000 so there's where $100,000 of it goes right uh yeah easy yeah could be more than that 100 to 120 yeah okay and um you know and you've got a car payment um yes which we would not have um uh and what do you guys do for a living I uh own a business and my wife uh works with a uh with a company she makes about 100,000 and the rest of my income and I I own a service business service based business okay all right um the way you're discussing this the language you're using is very uh General it's not precise about the numbers which tells me you're kind of just throwing this over there and then just shocked that it disappeared so um if I woke up in your shoes you've got a level of disgust says this is not okay is what you're saying we make this kind of money we shouldn't have no money we shouldn't have a car payment we make 600 Grand we should have just bought the car um then what I would do is simply do a detailed budget with your spouse and come into agreement of what we want to give what we want to save and what we want to spend and what we want to spend it on and every month before the month begins every dollar has an assignment exactly but it kind of feels like Bill uh I went through a period of time in my life where I thought I could out earn my stupidity my lack of organization my lack of detail and you can't if you had a person working in your business that was managing a section of your business as poorly as you are managing your finances you would fire them for incompetence and so you got to kind of treat it that way from an emotional standpoint and do a detailed budget and it's funny Dave as people make more especially people who are good at making money like bill's good at making money you're good at making money you think you can just solve the problem by well I'll just make more money as long as we don't overdraft we're doing okay but when you do that budget you realize if this was a business you go we are wasting a lot of money in this business we could be doing a lot better if we cut the spending get out of this debt we might need to sell this investment property it's not a blessing right now might need to downshift some of our giving a little bit until we get back on track so that's the kinds of things you the levers You' be pulling if this was a business you need to treat your household the same way yeah every you know you need to detail it out and then stick to it and both of you you and your wife have an agreement you're both looking at it you're not bringing it in slapping it down on the table and declaring I have done a budget you people will live on it that won't work now you get your wife involved in the discust it's not okay that we make this much money and we have no money it's not okay that we make this much money and we don't invest um so generosity is awesome investing is amazing enjoying money yes you should all three things but very very very very very very very intentional and right now you're not intentional you're kind of throwing a bail of dollars over the fence and then coming back to see what's left later and after the family devours it and so um it may be you downshift your giving your giving is pretty heavy I'm not against generosity in any form I tell folks to do it all the time um but if you're doing zero investing and you're giving 20% uh you may need to adjust that at least temporarily but I think you got some lifestyle issues and I think you guys just kind of walk around do whatever you want because you make enough money and I think if you'll just actually pay attention and say no we're not doing that no that's crazy that that's a that's a we're spending what on that yeah and you start actually telling the money what to do you'll very naturally uh tighten this up a little bit create your free every dollar budget today the simplest way to budget for your life