Dave Ramsey Tells Couple Earning $110,000 They Can Afford a Baby, but One Decision Could Change Everything
A couple earning $110,000 called Dave Ramsey terrified they could not afford a baby, and he gave them a green light. But one decision either spouse makes after delivery could shatter that verdict entirely.
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A woman called into The Ramsey Show terrified that she and her husband were not financially prepared to have a child. The couple earns about $110,000 combined, owes $65,000 in student loans, and pays $2,200 a month for their home between the mortgage, taxes, and insurance.
The couple’s $65K total debt balance comes with an interesting twist. Her husband’s $45,000 student loan is only six months away from potential Public Service Loan Forgiveness, leaving her $20,000 balance as the couple’s primary remaining debt. After hearing the math, Dave Ramsey offered a reassuring verdict: “You are eligible, based on the numbers you gave us today, to be a responsible person and have a baby.”
Why Dave Ramsey Says the Couple Can Afford a Baby
A $110,000 household income against a $2,200 mortgage and $65,000 in student debt (with $45,000 of it about to disappear via PSLF) leaves real room to absorb the additional costs of having a child, provided the parents keep both paychecks.
Co-host Jade Warshaw recommended a boring, but tried-and-true solution: “Running a budget and seeing the actual numbers is going to give you real answers to your questions. Right now, they’re just a bunch of things floating around in your head.”
In plain terms, she advised the couple to draft a full month of the post-baby household on paper before they decide to have a baby. Add every new expense line (daycare, diapers, formula, pediatrician copays, added insurance premium) and subtract every expense they plan to save on (dining out, travel, the husband’s $45,000 loan payment once PSLF hits).
The One Decision That Could Cut Their Income in Half
This entire scenario assumes the couple maintains a two-income household. Co-host Warshaw named a trap that could turn their financial picture upside down: “I have this baby, now I want to stay home, now I’m down to a $55,000 income, with a mortgage that’s $2,200, I can’t do it. And I never paid off the $60,000.”
On a $110,000 household income, the couple can service a $2,200 mortgage, chip away at the $20,000 loan, and cover $1,500 in daycare with room to spare. On a $55,000 income, the same $2,200 mortgage eats a punishing share of take-home pay before any groceries or loan payment.
Key Takeaways
Dave Ramsey’s conclusion was that the couple can currently afford a baby on their $110,000 household income. The risk appears only if one spouse leaves the workforce before the student debt is cleared, cutting their income in half while the $2,200 mortgage remains. A realistic post-baby budget would show whether staying home is affordable and turn a vague fear into a decision grounded in actual numbers.
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Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
