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Denise and her husband earn $150K a year, have no debt, and have built a sizable retirement fund — so why does money still feel tight?
With seven kids to raise, this Tennessee mom called into The Ramsey Show [1] to get the experts’ take on her financial situation.
“We paid everything off first, and then we had kids. And so we have a sizable retirement fund, and it just feels very strange to still be… in a situation where my husband’s getting upset about money when we’re supposed to be doing that well on paper,” Denise said.
When Denise asked if they could ever “save too much,” Dave Ramsey said the real problem wasn’t the savings — it was the lack of planning. “You’re throwing money in savings and hoping you can live with what’s left over, and when chaos hits, you dip back into the savings,” Ramsey said.
Why budgeting matters, especially now
When Ramsey dug deeper into Denise’s situation, he discovered that the couple doesn’t have a solid budget set up, which is a big reason for the stress and “chaos” every month.
Having a budget is critical, especially with today’s unpredictable financial landscape. Inflation continues to cut down consumers’ purchasing power, making everyday essentials like food, gas, and utilities more expensive than they were even a year ago.
U.S. inflation is projected to go up by 3.1% in 2025, according to the Congressional Budget Office [2]. For many families, like Denise’s, every dollar needs to stretch even further.
If managing a budget feels overwhelming to you, apps like Rocket Money can simplify the process.
Rocket Money tracks and categorizes your expenses, providing a clear view of your cash, credit, and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and save potentially hundreds annually.
For a small fee, the app can also negotiate lower rates on your monthly bills, making it a valuable tool for keeping your finances on track.
Budgeting tips for families
Whether or not you have seven kids, the first thing that families can do is start tracking their spending for a month or two, using statements or apps. This way, you’ll have a clear picture of where your money is going.
Here are some practical budgeting tips:
Zero-based budgeting. Give every dollar a purpose, putting your income towards expenses, savings, or paying off debt. If you’re investing, make sure the money that’s out of the market is earning a return too. With a SoFi checking and savings account, you can build your savings with a high interest rate and no account fees.
You can earn 4.50% APY on savings balances and 0.50% APY on checking balances with direct deposit or qualifying deposits too. When you set up a direct deposit, new account holders can even get a cash bonus up to $300.
Envelope system. Help control spending by using cash for categories like groceries and entertainment, and keeping a set amount in envelopes.
Buy in bulk. Stock up on non-perishable items in bulk to take advantage of lower unit prices.
Meal planning. Figure out your meals based on what’s on sale and seasonal produce to minimize food waste and costs.
Shop discount. Visit discount stores like Costco for lower-priced groceries.
Review insurance regularly. Shop around for better rates or consider higher deductibles to lower your premiums. OfficialCarInsurance.com can help you switch to a more affordable auto insurance option within minutes.
After answering a few questions about yourself and your vehicle, you can immediately compare quotes from trusted brands like Progressive, Allstate and GEICO. OfficialCarInsurance.com includes rates as low as $29 per month.
Use Health Savings Accounts (HSAs). Contribute to HSAs to save on medical expenses with tax advantages.
By putting every dollar to work, Ramsey assured Denise her family could not only cover expenses but also save aggressively. Platforms like Acorns can help you save faster.
With Acorns, you can auto-invest your spare change every time you make a purchase on your linked credit or debit card. Acorns automatically rounds up the price to the nearest dollar and places the excess — coins that would wind up in your pocket if you paid cash — into a smart investment portfolio.
Plus, if you sign up now with a recurring deposit, you can get a $20 bonus investment.
Article sources
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[1]. YouTube. “You don’t have a plan”
[2]. Congressional Budget Office. “CBO’s current view of the economy from 2025 to 2028”
[3]. Lending Tree. “88% say they’ve changed grocery shopping habits due to inflation — Here’s how”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.