Dave Ramsey tells a mechanic from Canada what to do after learning he makes $200,000/year but has nothing to show for it

Biggest mistake rich people make

Jackson’s difficulty holding onto his high income isn’t unique. According to A 2024 report by Leger, 47% of Canadians live paycheck to paycheck.

Lifestyle creep and untamed budgets appear to drive many people to spend as much — or even more — than they earn. According to Ramsey, the biggest mistake high earners make is a lack of intentionality with their money.

Jackson, however, is determined to avoid that mistake.

“I feel like I make too much money to not have some sort of a plan and I don’t want to feel like a fool who squanders a fortune,” he tells Ramsey, who responds with a compliment: “Just asking the question puts you in the top 5%, dude.”

Ramsey’s advice? Start with a robust budget.

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Give every dollar a job

According to Ramsey, the only way to be intentional with your money is to set up a spending plan before the income arrives.

“We’re going to write it down — before the month begins — where every dollar is going to go,” he told Jackson. “Give every dollar an assignment. Contract with yourself. If you have a spouse, do it with your spouse.”

A tight monthly budget should help Jackson earmark cash for necessary expenses, discretionary spending, taxes and emergencies — and ideally leave extra for savings and investments. Working with a financial planner would also be ideal.

Unfortunately, a 2024 survey by the Canadian Securities Administrators found that only 61% of respondents use a financial advisor — its lowest level, down from 8% in 2020.

In other words, a robust, professional budget is rare, which helps explain why living paycheck to paycheck is so common. You can avoid the same pitfalls by hiring a professional or setting up a solid budget of your own with the help of a budgeting app.

Sources

1. YouTube: I Make $200,000 and Have Nothing To Show For It (April 21, 2025)

2. Leger: North American Tracker September 2024 Edition

3. CSA: CSA 2024 Investor Index