Dave Ramsey

And you and your wife are going to sit down and give EveryDollar an assignment before the month begins.

Now, if we could pan back a little bit, you're going to have to walk into this carefully, and I don't know exactly how you're going to walk into it, but here's a plan.

Let's pretend that out of the next budget, out of the next bonus, which is half of your income, and that's a strain.

That's where the strain is coming from.

That's a good point of information, by the way.

Thank you for telling us that.

So let's pretend that you need $124,000, which is approximately, or let's say $120,000, $10,000 a month.

minus taxes.

So I need $10,000 a month to operate.

But I've only got $8,000 because I only got $8,300 because I only got $100 coming in.

You follow me?

Yes.

So out of the next bonus check, I set aside $20,000 to subsidize my monthly baseline.

Follow me?

Gotcha.

Or you can set aside if you want to make it even $24,000.

That would be $2,000 a month.

So out of my next bonus check, I set $24,000 into a separate savings account.

Each month I move $2,000 over, plus I have my $100,000 to work with, and I set my budget on that.

And then anything else in the budget, anything else in that bonus can go to reduce these debts.