Business Owner With $410,000 Income Seeks Advice on $98,000 Vehicle Debt

A Tennessee concrete company owner told "The Ramsey Show" he earns about $410,000 a year while his wife earns about $55,000. The caller, identified as Chris, said the couple carries $65,000 in debt on one vehicle and $33,000 on another. He also reported $60,000 in savings and a new mortgage.

Chris stated he previously earned about $55,000 a year before starting the business. He said the first year included $100,000 to $150,000 in cash equipment purchases. He described spending on dinners, travel, and other items after the income increase. Dave Ramsey advised using savings to pay off one vehicle immediately and applying business income to the second loan.

Chris asked whether to accelerate payments on the five-year adjustable-rate mortgage or maintain cash reserves due to possible recession risks. Ramsey asked about income stability. Chris said a downturn could reduce annual income to about $220,000. Ramsey stated that living on roughly $100,000 would allow faster mortgage payoff regardless of the lower income scenario.

Chris said he aims to reach $20 million in net worth.

Ramsey recommended clearing vehicle debt, paying off the house, and directing remaining income toward intentional investments.