"I Didn't Realize I Was This Broke"

Brought to you by CHM, a budget-friendly, faith-based alternative to health insurance. chministries.org slash budget. I have almost $200,000 in consumer debt. Good Lord. I know. 252,000 old on the mortgage. And so my question is, should I stop my Roth that I have? Yes. Yeah. You should stop everything and clean up his mess. What in the world do you owe $200,000 on? I owe about 71,000 credit cards, uh, 35,000 finance companies, and 61,000 in taxes and 20,000 on my car. Why'd you not pay your taxes? Well, I am paying them. I didn't. No, you didn't pay them. That's why you have $61,000 in debt. I'm working on it. I just looked. Uncle Dave, I found you at the end of last year and I have turned my household upside down. I'm working on it. I'm glad. But I mean, why did you not pay your taxes? Well, I didn't pay. I haven't paid them in full, but I've been paying on them on a monthly basis. I know. I'm asking why you didn't pay them originally. Seriously. Okay. The reason why is because with my husband's job, he's a contractor. And you know, if you don't lay that 25% to the side. Yes. So you've not, but you've not been doing your quarterly estimates and you got behind. Cause he's a 10 99 behind. Okay. That makes sense. Okay. So what's your household income, Sharon? 286 before. That's good news. So when you decide to turn this house upside down, you can shake this 200 K out pretty quick. Can't you? That's what I'm thinking, but you're not, that's what I'm planning on doing. But this is the first question. One of the first questions I have, the taxes come first, correct? Yes, ma'am. Okay. Because the interest rate is unbelievably in the penalties are unbelievably high. And the, and more importantly than that, the, uh, they have almost unlimited power to screw up your life. Gotcha. They can just show up and take all the money in their checking account. They don't even have to ask a judge. They just do it. Okay. So, so this six to 1000, what I'm thinking is that probably in the next one, two, three, maybe five to six months, I can have a six to 1000 paid off. That's good. You don't have any money in savings. There's not retirement. Uh, in savings, well, about three or $4,000. That's about it. Okay. That needs to be $1,000 and we'll throw the rest of it at the taxes. And then let's get the budget done. And you and the husband sit down and look at that budget and go scorched earth. No life. And we're getting these taxes gone. And once the stupid IRS has gone and we never, and we file quarterly estimates from this point forward, so we never get back there again. Right. Good. And then, and then we're going to work the rest of the debts off smallest to largest using the debt snowball and stop all investing, stop all savings. And let's focus on this because you make enough money to not be this broke. Right. Definitely. Well, you know what? I didn't realize I was this broke until I started listening to you. That almost sounds like it's my fault. If I hadn't listened to you, Dave, I wouldn't be here right now. Oh my goodness. You know what? I turned this house. I turned these bank accounts that we have upside down. Shaking, shaking the nickels. Is he on board too? If you're serious about budgeting, you can't ignore healthcare. For most families, it's one of the biggest line items. Y'all, you can cut subscriptions and eating out, but if you're still stuck with a massive premium every month, it's going to be stressful. Now, Christian Healthcare Ministries is different. It's not insurance. It's believers sharing each other's medical bills. And the best part, programs start at just $115 a month. So go to chministries.org slash budget and use code Ramsey for 50% credit towards your first month. Is he on board too? Oh yeah. He's got, well, he had no choice because he had been doing the budget for 43 years. And I'm like, okay, we're going to do them together. So it's somewhat my fault, but as of right now. Where'd he learn how to budget? Congress? I love it. You guys are great. That's wild. You're going to do good, Sharon. I'm proud of you. Keep it up. 1820K was slipping through your hands every month. Now we just got to get control of it. Yeah, it's good. You're going to be able to knock some stuff out fast. Hang on. We're going to send you a copy of the book, The Total Money Makeover to make sure you get all your questions answered. It takes you the baby steps on steroids. And as you're working through this, you're going to want to know a few of those odds and ends and you call me back anytime, kiddo. I got a feeling you're going to do good. She's on fire. Yeah, she's spunky. She's on fire. I like that. Fired up about it. Turn these bank accounts upside down and shake all the nickels out of them. She's flipping the couch cushions up looking for some change. I'm telling you, this is going to happen. Christian Health Care Ministries can save your family hundreds of dollars on health care every month. Learn more at chministries.org slash budget.