6 days ago 10

Man Calls Dave Ramsey For Guidance Because He Has No Savings Despite Earning $200K Annually

Eric McConnell

Tue, Jun 3, 2025, 10:00 AM 4 min read

The Federal Reserve estimates America's median household income is $77,000 annually. With that in mind, you might think that someone earning over $200,000 per year would have no problem saving money.

Unfortunately, it's not uncommon for high-wage earners to struggle with financial discipline. Investment guru Dave Ramsey recently offered some common-sense advice to a man who earns over $200,000 per year but has no savings.

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Jackson is a 25-year-old earning over $200,000 per year working as a heavy-duty mechanic. Despite that high salary and not carrying any debt, Jackson still has trouble managing money, and he recently called into the "Dave Ramsey Show" to discuss his situation. "I get my paychecks and I pay my bills with it and then I don’t look at my account all that much," he said.

"I feel like I make too much money to not have some sort of a plan, and I don't want to feel like a fool who squanders a fortune," he continued. Ramsey told Jackson he was already further ahead than many of his contemporaries. "Just asking the question puts you in the top 5%, dude," said Ramsey. Acknowledging a problem is the first step towards solving it, and Jackson's problem isn't unique.

It's tempting to believe that much money will always flow in and spend it accordingly. Family is another consideration. People earning $200,000 per year are often perceived as "rich" by relatives who lean on them for financial support. It creates a situation where someone like Jackson can lose track of their money.

That's why Ramsey advised Jackson to set a budget and stick to it. Ramsey believes it's essential to have a plan for how to spend the money before it hits your bank account. "We're going to write it down — before the month begins — where every dollar is going to go," he said. "Give every dollar an assignment. Contract with yourself. If you have a spouse, do it with your spouse."

Ramsey is also notoriously debt-averse. He is a firm believer in getting out of debt as quickly as possible and staying out of debt. Avoiding high-interest credit card debt can be difficult for high wage earners because lenders and credit card providers inundate them with offers. While it's good to have some credit, it's important not to use all that rope to hang yourself. Spending money on high-interest credit card payments never helped anyone retire comfortably.

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