Philip's $45,000 household income in Los Angeles is an earnings problem. California's cost of living runs 11% above the national baseline, and average consumer expenditures hit $78,535 in 2024.
At a record 21% APR, carrying medical copays on credit cards makes debt repayment nearly impossible at Philip's current income level.
Ramsey argues Philip moving to full-time work at the national median wage of $1,251 per week would roughly double his household income.
Two retirees, same $1 million, same 4% rule, buy one finished with $1.4 million, the other hit $0 in 12 years. Our free reader guide explains the flaw that separated them, and the income-first method built to avoid it.
On July 23, a caller named Philip told Dave Ramsey he could not stop taking on new debt. He is 49, works part-time as a grocery store courtesy clerk in Southern California, and shares a household income of roughly $40,000 to $45,000 with his wife. The debt was credit cards and routine medical bills, copays, doctor visits, dental care. When asked why he was not working full-time, Philip said, "A lot of emotional stuff, a lot of baggage, a lot of... yeah, I have a long history."
#income #time
At a record 21% APR, carrying medical copays on credit cards makes debt repayment nearly impossible at Philip's current income level.
Ramsey argues Philip moving to full-time work at the national median wage of $1,251 per week would roughly double his household income.
Two retirees, same $1 million, same 4% rule, buy one finished with $1.4 million, the other hit $0 in 12 years. Our free reader guide explains the flaw that separated them, and the income-first method built to avoid it.
On July 23, a caller named Philip told Dave Ramsey he could not stop taking on new debt. He is 49, works part-time as a grocery store courtesy clerk in Southern California, and shares a household income of roughly $40,000 to $45,000 with his wife. The debt was credit cards and routine medical bills, copays, doctor visits, dental care. When asked why he was not working full-time, Philip said, "A lot of emotional stuff, a lot of baggage, a lot of... yeah, I have a long history."
#income #time
3 months ago
