We Make $200,000 a Year and I Don't Know Where It's Going

Brought to you by the EveryDollar app. Start budgeting for free today. I'm calling because about three years ago, I had discovered that my husband had amassed a pretty substantial amount of debt. Just kind of a combination of bad decisions, bad luck, overspending. And I had kind of stupidly let him, you know, he was bringing in most of the money. I had my home take control. So about three years ago, I started managing our finances. And I've been able to kind of rein it in some and make some progress. But my job that the past two years have been pretty steady has slowed back down. And so for the last three months, we're about $2,700 short a month. I know. And I just I don't really know what to do because I've put our household expenses to nothing. I've gotten rid of the only two things I could still get rid of are our home security system, which is $25 a month and then house cleaning for my mental health. But other than that, I've I've gotten rid of extras. How much is there? Probably right now about $200,000. All consumer debt, Liz. It's he took out a Hewlock. There's some credit card debt to car payments. Oh, what do you owe in your cars? Between the two of them, $48,000. Break them down for me. His truck is about $18,000 and mine is like $33,000 or so. And what do you make a year and what does he make a year? He makes with his bonus about $160,000 a year. My job varies. I work on an as-needed basis for law firms. So the past two to three years, I'm I made about $90,000. But I'm probably tracking this year what it had been like the previous five years, which is $45,000 because I guess what you gave me does not equal $250,000 worth of expenses. Where is this money going? What's your house payment? Our house payment is $1,900 and then we have a Hewlock, which is $470 a month. Yeah, but that's only $2,500. That's only $30,000 a year and you owe $250,000 household income. How much money do you have to make where budgeting is just optional? If you chose C, watch this. She makes about $170,000. I make about $115,000. Hold on. Did you go back after you paid off everything? Borrow some more money? Oh yeah. Oh no, Carlos. We like to go here and there and we get this Mercedes. Oh no. You went full South Beach. It's not just about how much you make. It's about having a plan for what you've got. So start budgeting with every dollar for free today. But that's only $2,500. That's only $30,000 a year and you owe $250,000 household income. Well, I guess I'm factoring in all the debt, all the monthly payments we're making. Yeah, I am too. I don't get to $2,700 upside down. Your household income is $20,000 a month. No, it's well... No, it is. I mean, it's not your take-home pay, but your household income is $20,000 a month. $160,000 plus $90,000 is $250,000. That's $20,000. What hits your account every month, Liz? What do you actually have to work with after taxes? Right now, what we're working with is about $7,700 a month because I haven't been working. Where's the other $13,000 a month going? Are you still putting money? No, she's not working. She's not at $90,000 anymore. She's at $60,000. She's at $45,000 and your husband's $160,000. But even at $160,000 income, there should be more. Yeah, are you putting money in a 401k still? He does. I don't. Well, you manage the money now. So yeah, we are putting money in his 401k. Okay. Yes. Okay. And what else is coming out of your checks other than taxes? Health insurance. He has this debt where this company called Beyond Finance. So that's $750 a month that he's paying towards something that he had some debt consolidation company. And that comes out of his check? That comes directly out of his, well, it comes, it just auto drafts out of our. That's checking account. That's after $7,700 went in and I'm still trying to find like $10,000 a month that's missing. And so far, the only place I found it going to a 401k. Well, I mean, his take-home pay is he gets after taxes, like $3,400 every two weeks. And then he gets a big bonus in January, which we use this year to pay off a credit card. That's 7,000. And then you bring in 700 a month is what you're saying? Because you said 7,700, it's your account every month. I mean, that's what it's been the last like three to four months because I haven't really been working. Okay. Okay. So can you pick up the same type of position somewhere else? Since they've slowed you down? I can't because, um, I work for a law firm and I'm covered by their liability insurance. So I, I can't do the same kind of work for anyone else because of, I mean, is there another law firm that'll hire you and quit those guys? I mean, I've been looking, I haven't found anything yet. Yeah. Cause you're, you know, we're, we're not going to stay at 45 and we have a market income, our market value of a hundred. Okay. So a couple of things, uh, backing up then. Um, so number one, the two of you need to sit down together and work on the budget. You can do the details, but he needs to feel the weight of the responsibility of this with you and be carrying it emotionally. You're carrying it by yourself and it's crushing you. I can hear it in your voice. Okay. And you're still harboring a large amount of resentment, which is fair. You're still pissed off about him running $200,000 in the hole without bothering to tell anybody. Okay. That's thing one though, the you're not got your only shot at your marriage. Getting through this is the two of you hooking arms, putting your, both of you, putting your shoulders in the same, uh, into the harness together and pulling this wagon together. Okay. Now you can do the details. You're the detail person. And you definitely have to know what's going on because we can't count on him. Okay. So that's thing one thing too. Then once you're doing that, then I want you to go find where all this money's going because stop his 401k immediately. You don't go $2,700 in the hole while funding a 401k. That's not logical. That's borrowing money to put it in a 401k. No, I'm not doing that. So stop his 401k in the morning or tonight or whatever. Um, stop yours. No saving money, no investing money. And I'd be selling the cars at this point. That's the next one. Sell the cars. These cars have got to go. They're crazy in this situation, but you've got to go find where all this money's going. And when you add this up and look at the gross gross amount that you guys have been making and you're only getting $7,000 home, something's wrong. Or if you've got a huge tax refund, something's wrong. There's a gaping holes in there. Of his one 60 is the bonus, which they use to pay off the credit cards. That's not, that's not in the paychecks either month either. You got to figure out where all this is going. Cause it's not, it doesn't add up to 250,000 and that's what we got to get to. Create your free every dollar budget today. The simplest way to budget for your life.