“I Make $18/Hour and Have $70,000 of Debt” | Financial Reality Check

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Alecia had around $77,000 in debt when she sent me a DM asking for help with her budget. I said I’d give her a free coaching session under one condition: that we could put it on KZbin for thousands of people to watch! So in today’s video, you’ll see step by step how we put together a budget to get Alicia on the path to building wealth.
Links:
Budgeting for Beginners Video: The Only Budgeting Method You Need To Worry About! • Budgeting For Beginner...
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George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.
This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.

[@dianesullivan5338]

Investing hinges knowing bearish periods ultimately establish a new crop of stocks to buy and watch while setting the stage for a robust new uptrend.I have been reading articles of people that grossed profits up to $250k during this crash, what are the best stocks to buy now or put on a watchlist?

[@HildaBennet]

The current market might give opportunities to maximize profi.t, but in order to execute such effective transactions, you must be a skilled practitioner

[@FinnBraylon]

On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal port-folio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my port-folio this red season. I’ve made over $150k since then

[@JosephineKenney]

I could really use the insight of these managers, my port-folio has been down. who is your go-to?

[@FinnBraylon]

SONYA LEE MITCHELL is the manager I use. Just research the name. You'd find necessary details to set up an appointment.

[@JosephineKenney]

Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your pointers

[@PaulKatrina.]

In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.

[@CraigLloyd-fz6ns]

If you need advice, consider speaking with a financial advisor. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.

[@KarenLavia]

you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited £560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.

[@jones9-]

That's impressive! I could really use the expertise of this manager for my dwindling portfolio. Who’s the professional guiding you?

[@KarenLavia]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@EddyAgnes-vy4kp]

I checked Melissa up out of curiosity and i must say i am impressed by her Credentials. i emailed her already, waiting on her response.

[@jeremyorwhatever]

It’s Caleb Hammer with less yelling.

[@Qu1nt_travels]

and less s*x jokes too

[@marlenigz]

It would be awesome to have her come back to the channel after 6 months to show progress.. that would be motivating.

[@DJHesterman]

Let me make sure I understand how these student loans work. She has 77k in debt, so at 5% interest that would be $320 in interest alone every month. Her minimum payment is $32, so if she only made minimum payments her loan balance would be increasing by about $288 every month?! no wonder people never get them paid off.

[@donaldlyons17]

Well but if they pay the max they can afford the loan should get cheaper IMO!!!

[@Dragonologist]

​@donaldlyons17 Why should the loan get cheaper? If you agreed to the terms and conditions, why should the terms change? Both parties agreed on the amount to be loaned and paid back. You have no argument. Pay your debts.

[@JmasterPullmizter]

Aw yes the female version of child support.😂

[@HaviccB]

​@@Dragonologisthe meant the principle goes down each month..

[@handleyobusiness]

@@Dragonologist You right and that’s why people shouldn’t borrow money… the agreed upon terms are often one-sided in favor of the bank. But a deal is a deal.

[@Tsmithnlcf]

Why she has Spotify AND Apple Music?

[@learningearning8385]

We need a Dave Ramsey group for those of us with income under $20 hr. I have a degree in business but no one has been hiring other than call centers (& even that isn’t hiring this year)

[@chattingman6777]

Get a job in the government. They are the best employers in all 50 states. Try local state and federal.

[@mandypdx]

Have you looked at hospitals? We have 1000s of people with the title admin assistant who make good money, with good benefits. I started at 45k/yr and i’ve more than tripled my income in less than 10 years (I took advantage of tuition discount to get my MBA) - health insurance is paid for with max out of pocket at $1,250/year. And they put 12% additional into 401k (that accoubt is over $400k without “me” contributing- i have a separate Roth IRA that i co tribute to). Note, i work for a university hospital :)

[@ItsMrLee]

I don't have e a business degree but have my own small business and have been running businesses for people since around 2012. Do you just have a degree? Any experience? Might need to go get some smaller business under tour belt with an owner you personally know to get your experience for a year or 2 first. Could easily ask for 20 but even if it's less just do it for a while to get what you need

[@rachaelnuchols764]

I have worked at a hospital and still there, been there for over 15 years, I only make 36,000 year. Take out taxes, insurance etc. I now have a 2nd job. I do what I gotta do.

[@jeffclifford5731]

THANKS. Just what I needed to watch. My wife and I got a 400k HELOC from our 780k primary home which we are still paying a mortgage for. I want to only use 200k for this new duplex down payment. I realized that the secret to making millions is making better investments and staying out of debt. I'm grateful to GOD for the internet space, we were able to join the credit repair program, we payed up our debt and now we are back to being the administrators of our farming business and our own properties, as well as small pensions. 1 am almost 56, my wife is 52. We have started saving for retirement from the farm and maybe live off rental income, I would really appreciate it if you would do a video on how to earn using Airbnb and retire comfortably.

[@AnniePickford]

This is exactly how I wish to get my finances coordinated ahead of retirement.

[@AnniePickford]

You talked about a "credit repair program" how do I join? I took out a 200k heloc from my primary home 2 years ago which I'm still paying....I find it challenging to invest elsewhere because I'm still paying the mortgage and I got bills. to pay.

[@jeffclifford5731]

"Laura Gilbert CFA " is the licensed fiduciary 1 use. She lead me to join the program, Just research the name you'd find necessary details to work with a correspondence to set up an appointment.

[@AnniePickford]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get.

[@jeroldstokes6065]

Why no one talked about this program when I was in debt

[@NurseRowee]

Alicia, it will be ok. It's been 3 years since we have cut our credit cards. It feels so amazing. We will never go back to consumer debt! Trust the process. All the best!!!

[@turtleanton6539]

Yes indeed😊

[@sarahjardin]

Same! You can do it Alicia!!

[@deborahperkins7109]

Thank you for posting a kind and supportive comment. It’s staggering to see how many people come to the comments to bash people who are struggling and/or people who made mistakes or not the best choices. 🙂

[@lisanleal3208]

77k student loan debt and making 18 an hour is crazy. falling for the broken education system

[@gracecase998]

She got two useless degrees is the problem. She does seem to be getting her stuff in order. Too bad she wasted money on those degrees. She is lucky her sister is helping her with living situation.

[@andrew8168]

​@@gracecase998too bad? She got to party hard.

[@giantpune]

@@andrew8168 Lots of partying going on with those kids getting ministry degrees.

[@JonaaBLKWL]

@@gracecase998 there's no useless degrees, capitalism is just bad at getting use out of people's skills and knowledge

[@Mavisb-]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@Mavisb-]

@DIANNE-g However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments

[@Mavisb-]

@DIANNE-g Judith Ann peace is her name

[@Mavisb-]

Lookup with her name on the webpage.

[@Mavisb-]

@DIANNE-g You are welcome

[@c2s2942]

Please y’all, don’t get ministry degrees if you can’t pay in cash or get scholarships/grants. You won’t earn enough in ministry to pay the student loans back effectively, and you shouldn’t get student loans anyway. There’s an abundance of available, FREE, information to learn the Bible and ministry. You can find a mentor. You can find more affordable ministry courses. You can take so many avenues without having to be buried in student loans.

[@robertsprague3981]

Yeah, my jaw dropped when she said she paid 77k for a “ministry degree”…I know there’s significantly cheaper routes she could have taken for that. 🤦‍♂️

[@FaithWolper802]

I love this simple, clear , compassionate counseling session. As a retired CPA, I can’t help but point out that the $600 side hustle will will require 25 to 30% taxes. Keep up the good work. ❤

[@tyleralexander5976]

Even at her income? For a cash dog sitting business? Idk man...

[@FaithWolper802]

Yeah. I hear you. But ALL income is taxable unless specifically exempt. There is no minimum and he is suggesting over $600 a month. That’s not insignificant especially over a year. I’m not saying it’s fair…

[@dlproductions9574]

@@tyleralexander5976 it most likely isn't an actual "business" she is just doing it personally, which means it is personal income. it would be counted against her tax bracket. 25-30% may not be accurate, but it is still going to be taxed at whatever her income bracket is taxed at

[@alittlepieceofearth]

I do door dashing. If I keep track of the mileage and manage to earn $1/mile, @a deduction of 0.655/mile, your taxes are minimal or even non-existent.

[@fightfear3979]

I was so excited to see this because it matched my situation exactly until she said she didn’t pay for her living expenses like rent and utilities. I don’t have the luxury of having someone to pay for my situation. Can we do someone that has low-income, large student loan debt, and pays for their own expenses.

[@joshhutchins6747]

One thing that I don't think was mentioned and is rarely mentioned even when it's a desperate situation like that is just look for support programs. If you have low wages and high debt, look for assistance where you can get it. The one time I've seen it suggested on Caleb Hammer's channel, the person was too proud. So they valued pride over their future basically.

[@GardenMinistry.]

That's why a lot of young people still live with their parents, with debt like this I definitely would stay in order to bring the debt down, it's a temporary sacrifice. There's also the help that comes from your spouse. A year after getting married, my husband and I used Dave Ramsey's debt snow ball to completely pay off both my student loans and my husband's credit card debt, and that was over 13 years ago. I am a stay at home mom now, so we are just a 1 income household, and we are on the last baby steps 🎉🎉🎉

[@kbthegoat824]

​@@GardenMinistry.being able to stay with your parent is not a sacrifice it's a privilege. Other less fortunate folks are obligated to help their parents

[@stephaniehernandez9479]

​@@GardenMinistry.I unfortunately was put into a position where I had to buy the house I was living in or I'd be homeless. I was given 3 days notice from my dad, he had decided to take out a title loan using the house, that we needed to pay $5k in back pay or the police would be involved. It sucks paying to live in a home that has no freedom and goes way over my budget

[@CzingerX]

I love how you sat down with her, and went through the whole debt, and budget on screen.

[@sarahpeters5187]

I feel like it’s great she’s able to do this but this is completely unrealistic for most peoples situations when it comes to living expenses. I’d love to see someone making what she’s making with rent and or a mortgage still paying off debt.

[@taylorbarnard4880]

Thus the importance of avoiding unnecessary expenses, useless consumer debt and getting off on the right track!

[@Olivia-2019]

Everyone’s situation is different, there is never a one size fits all budget. Some people have two incomes, some live in a high cost of living area, some have kids or medical issues. But when you look at each situation I’m sure you can find a solution for yourself

[@EmilyGloeggler7984]

@@Olivia-2019Not all can. Please do your research thoroughly and don’t make broadstroke false assumptions.

[@ItsMrLee]

​@EmilyGloeggler7984 wow you're negative as fuck have fun with whatever you're doing.

[@savanah1407]

That’s how family should be. Good job sister! Rooting for you Alicia!

[@RandomSouthAfrican]

I am South African so I don't even know Capital One but that shout out totally killed me😂😂😂😂

[@haleya9526]

Your mention of the spam commenters is hilarious!!! It's so funny and scary how many scam comments there are on EVERY category of finance related youtube videos.

[@bigkahunaofhanahuna]

I am so proud of her! Way to go Alecia!!!!!!! Stay the course!

[@dm96177]

George I’m laughing so hard at you mentioning the scammers! I’m so glad you did because I think some of your audience may be susceptible to those scams. Thanks for calling them out loud and clear for those that may not know.

[@emmaociee]

More of these, please!! I'm not in debt, but struggle with budgeting.

[@austinpeterjohn569]

I have “I quit!” arguments with Dave Ramsey from your perspective when I shower on an almost daily basis. Please relieve me from this stress and leave his show. You deserve it, George.

[@austinpeterjohn569]

Correction: you’ve EARNED it

[@ihadlunch8575]

Cc and loans really give you the American dream. Interest and payments wakes you up.

[@Tyasiaaaa]

I’m just gonna say can we get more of these! 💕 it feels relatable kinda!

[@abrahams.lincoln6749]

George is awesome. Ramsey not so much….🇺🇸

[@kittyfarmer9567]

Your channel breaks it down to relatable points. It helps that you sneak in the short clips that are so witty!

[@dioniciarodriguez-rs9zc]

Ok! This is a great way to conduct this show. Having live examples is helpful.

[@davecopp9356]

George, you are great. You have a talent for this kind of show.

[@aimeevargas4016]

Shayna, you’re a good sister for keeping your sister financially accountable and of course, helping your sister out.

[@redinthehead6843]

Please do more of these! This is great and very informative!

[@joseCalderon1976]

Excellent idea! I love real life examples! 👍👏

[@Defeat_Doubt]

You are amazing Geroge! Get those people out of debt. It's all about a system you follow and time.

[@jasonlindsey5659]

We need to see more content like this. This is great!

[@westbccoast]

Love the channel George, especially the street interviews where you keep a straight face at the answers.

[@mltbkr]

Thank you Alicia and George!!!! George I want to see Alicia on the Ramsey show shouting at the top of her lungs!!!! "I'M DEBT FREE THANKS TO GEORGE"!!!!!!!!!

[@Mzjillion]

I'm rooting for you girl!!

[@jodyeaster7145]

Way to go girl!! 🎉🎉🎉

[@wendycordero6487]

Great walk through of the EveryDollar budget tool with a real person/budget. Thank you George!

[@Penlandadam]

That was awesome. So brave. It will only get an easier longer run.

[@JuliaCloonan]

We’re rooting for you!!!

[@Jujubees225]

That was the biggest mistake of her life getting a ministry degree and a masters in ministry. Good lord.

[@sunsetkizz1]

George, I ❤ this video! This is so inspiring! I ❤that she followed up! Please have her come back to check in. I’m rooting for her! 🤩

[@Mr_New_Vegas_685]

This was like watching a really polite Caleb Hammer.

[@arod191]

😂😂😂 but also true

[@jainiebehling]

Love this! So practical!!!! Thank you! ❤

[@amyethridge1798]

An awesome video!! So specifically helpful. Have to share with my son. 😊Thank you!!

[@markamark123]

thanks for the video GK

[@dmick9168]

Its really good to see that she is heading down the right path.

[@ericaterrones16]

Thank you Shayna! You’re an angel!

[@Shuckleking87]

This video is such a cool idea you should do more of these!

[@jamilladiallo1321]

Why get into debt for a useless degree ? Getting a second job could easily paynoff that credit card debt

[@barexampasser]

I got a useless degree and my starting salary is 82k lmao. Middle management FTW

[@barexampasser]

27k debt. I’ll be able to pay it off in 1-1.5 years, and I’ll have the degree for LIFE. seems like a good deal to me

[@jamilladiallo1321]

@@barexampasser .I did not say all degrees are useless.I was referring to the person' s individual case, where that degree is pretty much useless

[@jeremiahm1413]

@@jamilladiallo1321 "follow your dreams and passions.... .....Into debt and hopelessness"

[@giantpune]

Talk to all the baristas at starbucks. Spending $70k for a feminist dance theory degree, minoring in coloring book scribble interpretation. Then want to act shocked that there's no job listings for people with their degree.

[@marceetaylor3873]

Ugh I needed this!! I was doing amazing for 2/3 of the year and recently slipped. Just needed a refresh. Thank you George and Ramsey team!

[@perfectlymprfct]

I love this format George. Thank you for the details on what this debt free life looks like for people getting started.

[@jerrycamaro1639]

It would be cool if you made a series of this!

[@eligreg99]

Damn I have 27k in student loan debt and fell like crap. Couldn’t imagine 77k. I’ll be able to tackle my student loans after I finish my car note in the next couple months.

[@Jennyinreallife]

love this video!!

[@stephanieruth4118]

Good job cutting up that card!!! So proud of you! 👏

[@Daph2023]

Alicia, thank you for sharing your financial picture. I hope you make time to look for a higher paying job. You’re well educated, and you can do it! Just apply, apply, apply! As you make more, keep the same low/cost lifestyle, use the extra earnings to pay off ur debt. And bless your sister for helping you soooo much. Do right by her❤. Good luck!

[@DavidTron9000]

This was awesome George! Really enjoyed this type of video.

[@michaelmccain5660]

Congrats to the young lady! Thats huge!

[@Mark_Trail]

George, can you do a video on safe withdrawal rates at retirement? Specifically the math behind length of retirement and different withdrawal rates?

[@alejandrotorrero3621]

This is amazing, thank you George, for all your advice, it's definitively life changing.

[@kevo212]

more time should be focused on why there is $70k in student loan debt and why isn’t her income reflecting all that education? the real hero is the sister here, she’s the one basically helping to pay down the debt by forgiving housing expenses, that’s the sacrifice here. I’m glad she has a good attitude and she is getting support now but hopefully she will be smarter about future decisions.

[@ArkansasPT]

This is now my favorite Dave Ramsey series! Thanks George for making this fun yet informative! God bless you and your family

[@asavannah7439]

I really liked this video!

[@thomasveleba9261]

I had $67k in debt making $16 an hour. 3.5 years later, Im now 2 months from being debt free!!! The key to how I did it? Put my fluffing head down to take classes outside of work to change careers to now where im making $28 an hour, live frugally by not overspending on the major life expenses like apartment/car/eating out, and there you have it Its possible, people. Just accept the position you're in (THAT YOU PUT YOURSELF IN most likely), put your big boy/girl pants on, and take care of your shit

[@jamesp8459]

She's lucky she at least has decent interest rates on those student loans, mine were far higher but worked 1,000 hours of OT and paid them off in about a year... but I only had half her amount. Props to you George for helping someone and props to Alecia for taking those crucial first steps to wealth independence!

[@jeannekimura7995]

GREAT video--thank you! You've got this Alecia!

[@davidvos3223]

Great video more like this please

[@daviscrt]

great video, love to see more like this. Thanks Don

[@stephenmobley8724]

Love all of your videos George but this is gold. More of this please!

[@mollyh6347]

Good one!

[@victorblas3483]

Congrats to Alicia!!!

[@elenap-ot4gh]

loved the fake bot call out!

[@t_ronz]

Loved this format!

[@Thelovelymrswyatt]

Yayyy I’m so excited for this!!!! Been waiting for more one on one time with people who want to follow the Ramsey program! ❤

[@digitalarteffects]

One of my favorite videos so far!

[@Qu1nt_travels]

This is the true Financial Audit we need, someone calm and collective who's optimistic like Graham Stephan and not pessimistic like Caleb Hammer (who also exploits by enticing others to buy a $300 course). This year after watching some Caleb Hammer but more of Graham and George, I paid off my $8k credit card debt and now Im just down to my car loan of $31k which is definitely within my budget. I'm proud to say as a 26 year old that these people are truly gods people, after credit card was paid my credit went up to 807, I currently make a little over 6 figures and I only have one debt now. With less debt I was able to open a high yield savings account on top of my current savings account too. It's possible just some sacrifices will need to be made.

[@annetteopalka5670]

This was extremely helpful! Love your videos. Baby Step 2 myself .

[@trackgirl71]

Cool concept! Hope to see more of these.

[@pensacola321]

Blah blah blah. Sweet girl, but she needs to make more money. Masters degree and $18 an hour. Get real .

[@Bethelgal42]

George, you should bring back Dave Ramsey's Plasty Awards. That would be so fun!

[@russlea6383]

Congrats young lady, you're off to a great start: You'll never find a better landlord than family, you've got a great work ethic, you're working in a business that attracts wealthy people to network with, and you're learning how to become financially independent. Stay focused and you'll be a baby steps millionaire.

[@heathervenkat1414]

Love this!

[@stop08it]

ok i cackled when you read that scam/spam comment

[@merudevi]

This is really helpful to understand how Every Dollar works. Thanks for bringing in a real live person with a real life paycheck to manage life with!

[@LV-FOURTWENTYSIX]

It blows my mind how many people have student loans for qualifications that the dont use. Its such a waste of money and time.

[@stephaniehernandez9479]

George i would love your help with a budget!!

[@Legacybizllc]

Wow George, great job! What is the screen you have connected to your laptop.

[@GeorgeKamel]

There’s an iPad on the wall for video calling, and my laptop is separate just to look at the budget.

[@rangequeen]

Uh oh, George is coming for you, Caleb!!

[@thomaschew2191]

I know a lot of people like to make themselves feel smart by petty disputes with the snowball method but the beauty of it is that as the snowball gets bigger the debt amount and the number of debts gets smaller. You see the light at the end of the tunnel get a little brighter every month. The snowball rewards and encourages both at the same time. I can say from my own life experience that there has to be an intentional decision that leads to a commitment to see this through. Our 2018-2022 snowball that put us in a debt free lifestyle and saving for the future was our third debt free journey. Yes, we went from consumer debt to no consumer debt and right back in twice before we made the commitment to get out of debt and stay out of debt. There is a certain beauty in simplicity and that is what the snowball is...simple. Proverbs 22:7

[@mltbkr]

Alicia don't give up on yourself and your sister and most of all George!!!!!! You can do this!!! You have a very supported system in place!!!! work it!!!!!!!

[@arby977]

Caleb Hammer!

[@Nick-Nasty]

Ouch... Ministry.... Sigh. How do people make these choices

[@priscaonyebuchi7403]

I know right!!!😢

[@MittenGal_inCal]

I cannot believe a school in ministry thinks this is ethical.

[@brandonpires7032]

It's Financial Audit, but calmer. I like it!

[@ses-ei7oc]

Yaaasssss

[@REDSavage369]

I cut up all 4 of my cards the first week I started listening to The Ramsey Show.

[@Thatsmydob]

Love the Hammer format. Curious, Did Ramsey approve of this budget? Why do I hear him screaming at you later for suggesting something “stupid”.

[@MrsHawkinsHouse]

A7 chord 😂😂😂… very good George lol

[@franfran264]

I really like the show. It's the Student Loan debt 😩 I hope she keeps up with the plan to get out of debt

[@TheRealDebH]

Thanks for sharing! I'm wondering if you could help me. I make $19 per hour, but I also have a mortgage, car payment (yes I know now it was a terrible thing to get into), also have student loans/personal loans, daycare, etc. I know that I need a second job/side hustle, but with having to pay daycare expenses and other bills, my sig. other and I have about $50 per month after paying the mortgage, car loans, utilities, grocery shopping, and daycare. We've cut out all subscription services and lowered our phone bill for 3 lines. We work opposite shifts and can't afford a sitter to be able to take on another job or side gig. I detail cars, but there isn't much business coming in and I might have a detail once every few months. Also, my job has given bonuses, so we did have an emergency fund and Christmas fund, but we had an emergency that costed over $5,000 so it took it all plus some.