My Expenses Are More Than My Income

Ariana is with us in Miami hey Ariana how are you hey guys how's everything better than I deserve how can I help my question is pretty much um I have baby step number one with thousand dollars in emergency fund laughter I started doing my budget and as far as like what I owe and all my balances I found out that the amount that I owe is more than my budget so your monthly payments is more than your income correct okay and that's based on what how much do you make a month I make about thirty two hundred okay is that your take-home pay or your total that's take-home pay okay and do you have do you have retirement coming out of that um I actually paused it after reading your book good okay so after pausing it you have thirty two hundred correct and it's sometimes very based off my income but gotcha how much how much is your rent uh my rent is about 350 because I do live with my parents okay and so you pay them three hundred fifty dollars a month right okay and is that room and board pretty much yeah I paid my father's insurance as a way to help out so that I'm not living rent-free okay and how much is that that's what my con his 306 okay and how much is your car payment our payment is 349 okay and what other debts do you have I just you know phone bills food and groceries gas my essentials when I did the whole budget it was about 1800s and then the rest would be going towards paying that off when I did you have any debt other than your car loan debt and credit card debt yes okay that's what I'm asking how much do you owe on your student loans student loans it's about 30 oh I'm credit card 30000 and credit cards is about I want to say it's about 15,000 okay and do you have the total of those two payments yes how much it's about actually I'll pull it up right now we're just yeah your credit card payment are your student loan payment I think the total I want to say if all here it is one thousand six hundred and eighty three dollars for both of those right okay all right cool all right let's see ah all right so I'm thinking um credit card payments are really really high here and how much do you owe on your car ah luckily I have only all about four thousand son okay so that's being knocked down real quick then what is it worth what's it worth um it's worth about 2,500 oh wow okay so why do you have such a ridiculous payment on it your payment earning incident I had bad credit at the time okay so you got a real high interest rate on that as well yeah mm-hmm all right so uh well you said your are your parents furnishing you food or not no I'm purchasing my own food okay some that's what I meant by room and board okay so you buy your own food you live with them and and so here's what I would do I'd go back through that budget and cut out anything that you're spending on you I mean you don't need to be eating out at all and you don't need a bunch of entertainment at all the first thing you got to do is take care of food shelter clothing transportation and utilities so the first thing you got to do is take care of your car and your rent and the insurance that you promised to pay your dad which is kind of part of the rent but if you consider those two things you have a fairly high rent payment I mean if you're you know you're kind of a roommate of sorts and you know roommates don't usually have a 650 dollar payment you know so you may want to think about that and go you know is this really a great deal to live with them I don't know if it is or not it might be a better deal to have a roommate live somewhere else you just have to look at where you're living and what the apartment would cost and that kind of stuff so that's something to think about because you got 656 bucks going out for basically for rent because you're paying the insurance and the rent check both right right and you wouldn't be paying his insurance if you didn't live there right right so it's kind of it's a type of rent so that the car payments going away soon how many hours a week are you working about 43 that's good okay so one thing we can do is pick up the extra job whether it's waiting tables are driving uber I don't care what it is but whatever you can do to pick up some heck because if you picked up a thousand bucks a month it'll change your life and II think you know so if you work like crazy between Christmas you know and you knock the car the rest of the way out all of the sudden this thing starts to free up and and of course you cut out anything in the budget that's that's knocking you around as far as external spending and so forth I mean you do have a tight budget I'm not questioning that you don't have a lot of wiggle room in this with the numbers you've given me you may have to call the student loans and do a hardship deferral until after the first of the year and just where you don't do a payment to them until after January so that you can get squared around and get this budget moving and get this car paid off and then that will give you room to really start pounding on the credit cards and start cleaning those off because those are going to be your smallest debts once the car is gone and because they're individual credit cards I assume not 115 thousand dollars right now so you're going to let them go should I let them go late in the meantime if you cannot wait other right now yeah I wouldn't if you can keep from it I wouldn't let anything go live and keep from it but your first goal is food shelter clothing transportation and utilities your first goals take care of you then your next goal is to pay payments and if you put the student loans on hardship deferral and you tighten up your budget I think you can make the credit card payments okay and I shouldn't touch my emergency fund at all how much is in it a thousand no it's this is not an emergency this cashflow problem you do all of that and pick up an extra job you're going to turn this around and by this time next year you're going to have knocked a real hole in this Oh twelve months from now you're gonna be living a completely different life you'll be heading the right way you are doing really good stuff how old are you I'm 25 cool what do you do for a living I work in sales good for you okay cool well if you will do all of that I think this will work for you and I want you to go through our class Financial Peace University have you heard of it I have heard of it yet okay have you been through no I haven't purchased it okay would you like to go through as my guest of course absolutely I want you to go through I'm going to put you on hold Kelly's going to pick you up and sign you up and then when you get moving if you got any questions as you're going along you call me because this is tight and I know you're scared but this this will work you can do this you got this and um you know you're gonna have to look at the rent thing you're going to look at the extra job thing you have to tighten the budget down and put this to put the student loans on hardship deferral and I think you can turn it around then and buy after the first year you're going to start really pounding on this stuff by this time next year you should have those credit cards and your car gone and be left with only the student loans to work on but you're going to you know it's going to be a tough two two-and-a-half years ahead of you and you could be completely debt free that's what I'm seeing right here but this is going to be hard I mean you maybe maybe it's a solid three years really if you don't get your income up dramatically but if you're in sales that's the other thing maybe you get thing maybe the sales start turnaround you get your income up so this is good you can do this hold on Kelly will pick up and we'll get you signed up for Financial Peace University and take care of you hey guys Rachael Cruz here hope you enjoyed that video from the Dave Ramsey show if you want to watch another great video check out my video three things you should consider renting right over here or click the link in the description below you

Channel: The Dave Ramsey Show

Views: 443,575

Rating: 4.8664045 out of 5

Keywords: my expenses are more than my income, what to do if my expenses are more than my income, dave ramsey live stream, dave ramsey live, dave ramsey, dave ramsey show, debt free scream, dave ramsey debt free scream

Id: y7IqDxGkc0E

Length: 8min 49sec (529 seconds)

Published: Sat Sep 10 2016