The Ramsey Show Highlights You Make $350,000 And You're Broke!
Oct 28, 2025
Nikki, a single mom, shares her daunting journey with about $300,000 in debt, including a staggering $120,000 owed to the IRS due to missed tax filings. Recently married in June 2023, she details a tight budget in the expensive Bay Area, revealing how even a high income can feel broke. Dave offers urgent advice, encouraging Nikki to adopt a frugal lifestyle and tackle the IRS debt first to avoid severe repercussions. The conversation is a wake-up call about financial reality and the importance of a strict budget.
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Missed Taxes Led To Major IRS Bill
- Nikki describes not filing taxes for about four years while raising three kids and working hard to survive.
- She later filed and faced a large IRS bill after remarrying and combining incomes.
Live Broke And Attack Debt Viciously
- Dave tells them to live like they're broke and cut up all credit cards to attack debt aggressively.
- He instructs them to write a monthly budget and snowball debts, starting with the IRS.
Make IRS Debt Your Top Emergency
- Pay the IRS first because their penalties, interest, and enforcement powers are the worst.
- Treat IRS debt like an emergency and get it out of your life immediately.