“We have 3 cars, 2 kids...and only 1 month of savings”
ฝัง
- เผยแพร่เมื่อ 28 พ.ค. 2024
- Ramit Sethi of I Will Teach You To Be Rich talks to Paul and Morgan, 37 and 33. In the second half of this live-recorded conversation, we dig deeper into their Conscious Spending Plan to uncover three cars (for two adults), sporadic debt management, high pet care costs, hidden student loans, and what seems like no way out from under it all.
Check out Part 1 with Paul and Morgan: • “We have $22k in cc de...
-
💡 RAMIT’S PODCAST NEWSLETTER
* I share new ways to think about money every Saturday. Get the emails here: iwt.com/podcastnewsletter-yt
🙌 GET HELP FROM RAMIT SETHI
* Take control of your money with the Conscious Spending Plan: iwt.com/csp-youtube
* Optimize your credit cards with the 1st chapter of my book: iwt.com/chapter1-youtube
* Join my Money Coaching program for monthly help: iwt.com/moneycoaching-youtube
* Listen to my book-now on Audible: amzn.to/48zko28
🤳 CONNECT WITH RAMIT SETHI
* Instagram: / ramit
* X: / ramit
✅ SUBSCRIBE SO YOU DON’T MISS ANY EPISODES
/ ramitsethi
-
THIS EPISODE IS BROUGHT TO YOU BY
Hatch | A million things don’t want you to sleep, Hatch does. Get $20 off a Hatch Restore at hatch.co/ramit.
Rocket Money | Stop throwing your money away. Cancel unwanted subscriptions - and manage your expenses the easy way - by going to rocketmoney.com/ramit.
ZocDoc | Download the ZocDoc app for FREE at zocdoc.com/ramit then find and book a top-rated doctor today.
Masterclass | For unlimited access to every class and 15% off an annual membership, go to masterclass.com/ramit.
Fabric by Gerber Life | Protect your family today with Fabric by Gerber Life. Apply today in just 10 minutes at meetfabric.com/ramit.
-
If you and your partner have a money issue and you want my help, I occasionally select a couple to work with, free of charge. Apply for my help here: iwt.com/apply
Produced by Crate Media.
00:00 Download the Conscious Spending Plan so you can use your money GUILT-FREE: iwt.com/csp-youtube
Please remember: These are real people who had the courage to come on my podcast and ask for help. Would you be willing to come on this podcast and share every detail of your financial life? Feel free to leave comments based on what you think, but remember that we are here to help in a supportive way, not to demean and criticize.
Guys, Ramit continually reminds us that these are REAL PEOPLE coming on his show. They have the guts to put their finances on full display, which shows a level of commitment better than most people. Let’s try to be a little bit better with all the insulting comments…
Right! Who are all the perfect people that have everything figured out?
Shout to Morgan and Paul. I appericate them for coming on here, being brave and sharing their shortcoming. Wish them well.
N
Would love to see more long term follow up with the couples. Like 6 month-1yr later to see if they followed the plan and if so how it has changed their lives.
Agreed, I'd love to see them too as I've been listening to the podcast for about a year now and wonder .... "how's that couple doing now?"
If you want spoiler, 90% of people make no change or back where they were within months. Not a Ramit thing, just a human psychology thing.
Ramit calling out the bs that is childcare and related expenses falling on women 👏👏👏
Also, I really enjoyed this couple. They were honest and seem to have a good relationship. I wish them the best. They’ve just made a few financial hiccups, but I think as long as they communicate and share the burden equally it’ll be all good in the end.
Ramit's call outs are THE BEST!
@@wendyp3613why didn't he call out the $236 in subscriptions?
Ramit is such a contribution to us. People do not listen when friends and family advise someone that there is an emergency in their world. Alternatives for a solution elude them. Every option is met with resistance. Some people do not realize that even bankruptcy costs money. The best that I can offer is Ramit Sethi resources.
💯 I hear your pain!
I love him and he has helped me help a lot of people
I've watched a few of these videos. Ramit gives solid advice but the reality check doesnt seem to register beyond a superficial "I know I'm not making the right" decisions. The environment in America to spend is an incredibly strong pull to overcome.
You are so right! I've had these conversations with family and friends, and it doesn't seem to register.
Sell the car.
Stop renovations.
Build an emergency fund.
Start investing 10-15% for retirement.
Cut spending on the day to day.
Once you have your emergency fund, start saving for renovations in cash.
So many issues that can easily be fixed with focus and purpose.
Very smart advice, completely agree.
it is really that easy .. only if the mind is ready to make those changes
And get your butts on beans and rice!
@@SRD1281 I think they had $1000 grocery budget.
@rhondavigil795 For their financial situation that's insane.
More mental load items I can think of when you have too many cars: Moving them for street cleaning, no room in the driveway for guests, there's too many to put in the garage so storms and hail are a worry. You have to clean them regularly because they're parked outside. A lot of people in my neighborhood have completely full 2-car garages and all their vehicles are parked outside. We all desperately need to simplify our lives, belongings, and finances.
47:56 WOW....wowwwwwwwwww. That was so fascinating how the light bulb just turned on for him at. that very moment. Kudos to him. I feel like a proud friend now. lol
It was cool. But why does he feel he can’t do that all the time? He clearly has the skill set and got them there pre-baby. Is he too burnt out from his job? Is she making him feel like an a-hole if he does? Is it some societal pressure to not have toxic masculinity? Is he lazy or some combination of all of that?
@@pappy924 because most people dont want to do the same thing they do at work at home. not realizing its just simply their lives. work life balance tends to do that
They should do the math to see whether it might be cheaper to rent a truck when they need one rather than keep the one they have. I used to work with a lady who lived in Manhattan. Given that she lived in a highly walkable neighborhood with easy access to public transportation and taxis, it made no sense for her to own a car. The few times a year she needed a car to drive somewhere outside the city she would rent one. It was way cheaper than owning in her circumstance. That may not be the case for this couple but it would be worth it to find out.
I agree. you don't need to own everything. you can even try out a different car every time and see what you like. downside can be a covid-type situation where rental prices were through the roof, and availability was near zero. I once rented a truck for a road trip because my car needed some work. had fun driving it, but no intention to buy a truck.
i'd sell all cars except one!. simply move our lives around to function with one. thats a huuuge change put that money into an emergency fund and can get another vehicle a year or so once the habbits of having finances in place properly
Ramit is the best in category in my opinion. Keep up the good work!
There’s not even a close second
@@lowlowseesee I used to like Caleb Hammer before he went totally off the rails. Can't even make it through an episode anymore with all the name-calling and drama, so I stopped trying.
5am still awake from anxiety. HELL YA MY LULLABY AND RELAXATION HAS COME. Thank you Ramit for your financial ASMR😂
I almost cried when I saw Paul doing the "project manager hat on" exercise and just completely changing his whole orientation to the thing. What a powerful moment.
I don't think it was powerful at all. It seemed sad that he only shows up at work and at home he's avoidant and aloof. Then when he went into work mode about this stuff, he took a weird mansplainy tone at his wife, and all authoritarian. In both scenarios he has no nice attitudes to his wife... just kinda expected her to carry all the load until Ramit called him into work mode and then started telling her what to do. But I bet after this he'll just go back to being 'on' at work and leaving everything else to her again.
@@woboznz except for the fact of how they are in terms of dealing with finances. She uses emotions to convey her thoughts on it because she's constantly in survival mode explained with the very reason she has a separate account for child care costs. He's completely at fault for her being in that state and also afraid to take over the finances because hes still dealing with the rebellion of trying to be different from his parents.
Ramit does such a good job of balancing the financial coaching aspect and almost acting as a counselor between the couple. So grateful for this couples’ vulnerability to be on his show, I’ve learned a lot!
I really like how Ramit makes couples aware of their financial situation. Most importantly how he ask them to basically solve/find a way to improve their situation.
Yes, just when you think he is going to dig into them. He sort of acknowledges that it something that makes them feel good, or how they cope.
Like he has zero judgment, and more just curiosity. It honestly makes me feel like I want to be a better person,
I love listening and learning from couples that come on the show - but not all of us are in relationships and as a single person, I’d love to hear from my fellow single folks on the show if possible. Thanks for all you do team ✨👏🏽
Agreed!!!
YES!!!
Sometimes he features a single person in a budget review post, but the podcast was created from his prenup conversation and therefore is all about couples.
Me too!!
@@arh1234 Yes, that makes complete sense and recall him mentioning that in a past episode! I’m just tossing a suggestion out there for the team - happy with the content provided and insights shared regardless :)
Children, houses, and cars will obliterate you financially if you’re ill prepared. We don’t think of it this way but having children is a luxury 🤷🏾♀️
Having kids definitely makes you reprioritize a lot of things but they are not a luxury like a high end car is.
Ramit, thank you for calling them out on the issue of separate versus combined finances. That’s an issue for so many couples on your show, but this is the first time I’ve noticed where you zeroed in on it. My wife and I (married almost 22 years) combined our finances right away and never looked back. It’s made life so much easier, and planning is so much more straightforward. It seems like the default for married couples now is to keep finances separate, and it just makes no sense to me.
1. Get married
2. Combine your income
3. Combine all expenses
Be smart don’t slide into relationships just to settle. You live once do it well!
i'd say figure out the combining part waay before getting Married.
Home renovations should NEVER be on credit. I’m trying not to be judgmental… But I have noticed a trend of young people getting pregnant then throwing together a family and never marrying. I say “throwing together” because that’s how it appears and often how it rolls. To build anything strong and lasting you need to start with the foundation. Many young people say they don’t want to marry, but they do everything without the commitment. It is a mindset. It is a discipline. It is a commitment. If you start solid, you have a much better launching pad for everything else in life. This couple is brave to come on and be so vulnerable. I’ll be 70 next year and if I give any advice, it would be don’t wait… Life twists, and turns and you never know what tomorrow will bring. I’ve said it many times before… Ramit, you are giving such a gift to these people and all of us, thank you!❤️
I've been obsessed with getting out of debt and better managing my money in the last year or so, and I like to ping-pong between Ramit's cool calm discussions and Caleb Hammer's crazy guest bonanza. Different energies for sure, but I find they complement each other and inform my money management in different ways.
Totally agree. Caleb on Monday, Wednesday and Friday, and Ramit on Tuesdays.
I think the crux of their problem is making knee-jerk decisions before having a plan. They bought a house without a plan, did they get pregnant without a plan too? Homeownership and kids are HUUUUUUGE expenses! I see this over and over, not just on Ramit's channel. It seems the theme is: let's just figure it out as we go along. It's a recipe for failure and massive debt which will lead to bankruptcy. I'm learning so much from these couples to NOT repeat their mistakes. Thanks Paul and Morgan for being great teachers to Ramit's audience.
Those subscription costs! Those food costs and still trips to the Keys. Three vehicles. My husband is the same re: trucks, always wants to drive the car because it gets better mileage …the truck he HAD to have just sits.
Weve gone down to 1 cars as I work from home a lot and the cost of Taxi's or public transport works out cheaper then owning a 2nd car, servicing, MOT, road tax, fuel etc.
We did the same thing
We live in a walkable place, owning 1 car isn't even necesary.
We actually have 3 cars. The 3rd is a spare truck worth about $2k. But we use it in emergency when another car breaks or to haul bigger things.
We did the same thing. Sick of oil changes, registration, gas, insurance for a car that is parked in the garage for months on end. We got a good price for it too as used cars are in demand. Got paid cash from a private buyer and into the savings account it went.
Ramit, you are so patient and kind with your guests. This was quite frustrating to watch, but of course thank you to the couple for sharing their finances and being candid with their struggles.
I get wanting to go to the farmers market to buy food for the kids, but maybe for the next 18 months they go to Aldi or some other grocery store that has less selection but is also way cheaper.
Maybe grandparents help out with the kids more so that they can cut childcare costs
It’s always the truck owners…
The wealth killer episode is awesome
I know she plays a part in all of this, but I'm gonna need him to get his sh*t together. His answers are so generic and what he thinks ramit wants to hear instead of suggesting realistic changes. he is so checked out and doesn't want to change, and she can't do it all alone. She's crying and he can't even look at her, let alone comfort her.
nice work pulling teeth, ramit! this was an interesting but frustrating watch.
She’s crying and he’s just sitting there! That’s your partner, man. Hug her!!!
His apathy is really annoying. But he can turn it on for his job. He needs to step it up.
Ramit did a great job at unlocking this conversation in a productive way
I love these conversations! Thank to all participants and to Ramit
Finally it’s here, I been looking out for days for this notification 👏
Same!
Episodes come out on Tuesdays, no need to look for new eps on the weekends
Same!
"The grandparents" 🤣🤣 Best comment ever. IYKYK
Shows how little he wants to change.
Don't have kids untili you BOTH are making the type of money you want/household income you want.
This. I get for women as you get older it becomes a lot more difficult to conceive, but I will never understand wanting to bring children into a financially unstable situation. If you can’t take care of yourself, how will you take care of them?
With reproductive restrictions many don't get to make those choices
@@mrs.quills7061 Exactly!
@@Nina-os5st huh? You have a choice if you want to have kids or not.
@@Rashaadthegr8 not if you live in a state that made it illegal to get an abortion.
That was SO Goooood!!! The shifts were happening and she kept bringing it back to behavior change and he stepped up. Cheering for them!
What a great turnaround. I truly hope they stay strapped in for the few years this will take. Paul, if you read this, find FREE impulsive things go do that you enjoy.
I have the book…not sure why I have never listened to this podcast until now! Wow I love this !
I don't agree with that quote "The way you do anything is the way you do everything." It puts a lot of pressure. I tend to give 100% to most things, but sometimes I do like to take it easy and need a break.
Such a good episode! Thank you for sharing!
Great job on the editing in this episode.. It was easy to follow along when we could see all three of you on the same screen.. Thank you!
I feel for Paul. Something I’ve struggled with in the past is saying no to my partner’s hopes. When I’ve felt guilty that we couldn’t afford something, I used to say yes just to make her happy. I think that’s why when he’s at work, non emotional, he’s able to think and operate logically. When he heard that she is ok with the answer No, he could manage the plan easily.
It's great to see Paul and Morgan opening up about their financial struggles and discussing ways to improve their situation! 💬 Having open and honest conversations about money is key to overcoming challenges and achieving financial stability.
thanks all the best🎉🎉
Thanks, Paul, Morgan, and Ramit!
I was so waiting for this
Best of luck to Paul and Morgan. If they remain aware, dig deep, and sacrifice, l bet they can turn their situation around. Great episode!
Shopping for groceries at the farmers market, international travel, and fixing up a house should be reserved for people with money to burn. Otherwise you're pretending to be rich. Better to actually be rich in 5-10 years.
You think international travel is for people with money to burn? Lol
@@GlamGoddes101I do. I'm in my mid-40s and never left the continent due to cost. I hope to travel one day, but I'm not there financially yet.
@@GlamGoddes101Yes.
3 cars and the only one they don’t consider selling is the Supra?
I can’t think of a less practical car for a family of 4 in this much debt…
I literally had went back to listen to that over and over because I’m pretty sure she said Subaru… but I honestly still can’t be 100% sure 😂
@@alwaysemiliaomg, Subaru make SO much more sense! Good catch! 😂
@@alwaysemilia I just listened to this like 10 times and I heard Supra the first 9 but I'm pretty sure it's Subaru. I'm just using context clues that there are no Supras for $30k.
@@trmoore0922 You can get a supra for 30k. A 21' supra from carmax is 35k
@@trmoore0922 I listened to it 10 more times (20:00 mark) and I keep hearing Supra at 35K. I'm surprised Ramit didn't dig in more to the financing/terms on THAT, whatever it is.... But sure, let's try to trim $500 off the grocery budget? Uh WHAT? I'm floored.
I love this podcast! Totally changed my view on money.
I'm really hopeful for these two. They've done the hard things before, and they can do them again. I think like a lot of folks they probably think "we make good money, we should be able to afford these things." And in a consumer culture like the US, you feel like you should be able to fulfill your desires and the magic credit card can help you do it. No blame. It's absolutely everywhere and you have to consciously decide what's important to you (as Ramit says about 50 times per episode😊).
***
I really liked the immediate reaction after their session as a feature of the podcast!
I have thoughts about the general follow-ups. It seems like they're given 3 open-ended questions that they answer too soon after the session and so the answers seem too vague (even the ones to "what changes will you make/have you made"). Maybe it's time to revamp the questions to still allow feedback for the session but also be more specific about changes (what are 3 things you've done to start building your rich life as a team ... or something like that).
Wow…early bird gets fresh content ❤
Awesome as always, remit
This was such a riveting two episodes. I hope things work out for them and they're able to get their finances to a place that they're happy with.
I just love seeing a beautiful loving married couple with a beautiful family that are willing to do what ever it takes to survive and live their best life! This story made me so happy. Your children are lucky to have you guys as parents ❤️
Such a good episode!!! Thank you, Ramit for your feminist and equitable approach!!!
One of my favorite couples so far, I have hope for them!
Love these! So brutal.
Gas expenses will stay the same with two or three cars. Sure there are differences in gas mileage but They can only drive two at a time.
Wow, I see my own relationship so much in theirs! This was so enlightening.
50:40 So proud of you guys
I love IWTuesday
OH! I also learned a lot form his shift when he put his “work hat” on. I thought to bring the confidence I have in other areas of my life to my finances.
Go Paul!!! That was impressive considering I’m sure everyone was looking at you at the problem! Turns out you what was needed all along! It was a Happy Wife…Happy Life kind of situation.
Yay! Gotta love when a hubby comes thru rather than cracks 👏👏👏 I had hope for him when he proudly shared his role as a father. He clearly takes it seriously, but there's a lot of pushing to get there 😮💨
I thought of that. She seems to not want to budge, and he is playing the role he thinks whe want rather than what she needed
Does anyone have the time stamp for submitting your csp? Can’t find it 😅
after Paul ran the scenario and they were still at 82% i'm just like "guys you need to sell a car!" but i know baby steps. this stuff is not easy and it seems by the end, they really understood the severity of their situation.
last month marked the 8 year anniversary of my wife and I making life work with one car, the 1st 4 years relied on some walking and public transport, since covid we have been helped by WFH. its very freeing having only 1 car.
As much as we talk about gender roles changing, they really don't. Women are still expected to take care of the kids in all aspects, while the man pays the mortgage. I find it interesting, that couples also don't have a joint checking account ( my parents didn't either, but they were from the 50s). We all think we 'need things', but to honest we just need each other and not to be stressed about material things or about being in debt.
Just like owning a home, people wildly underestimate the cost of car ownership. My goal when I retire is to live in a walkable city where almost everything I need (shopping, etc.) can be done by walking. Then I would sell my car and use Uber/Lyft the few times I need to travel by car.
This couple was a lot of fun! Sure he's clueless and I send her all my support to have the patience with this man, but I think they'll be able to go through this successfully
Buying a home is such an emotional purchase. It is our identity and our safety. I can see why people go into it with such little consideration for the REAL cost but we have to be more smart about it.
Strange that no mention of the cost of insurance for the 3rd car....
Man talk about a Superman transformation, good job Paul!
Hum...a bathroom(cost of renovation - amount of equisty added to the house) that would benefit all the family vs a truck that eats money (cost of purchase+insurance+gas+upkeep) ...erm I would have picked the bathroom...maybe its just me
I havent said sellind the supra...because he uses it to commute and can use hers for family outting...but could be also an option...meaning which one costs the most and which one will recover most money if sold.
I’ve never been more grateful that my husband is frugal mcdougal 😩. We combined right before our wedding and never looked back.
I love the term Frugal McDougal 🤣 I never heard that term before and I'm definitely going to start using it now 😜
@@LL-pq5uo 😂😂😂😂. Thankfully he embraces the name.
The guy who gets me through my 1 hour commute 🫡
I really appreciate this couple (though was bummed to not see the top section of their CSP re: their earnings/assets/retirement mix AND I understand that was not the focus of this episode). They are doing all the things that seem reasonable: house, kids, car(s) that are paid off, and are drowning.
It's really easy to spend that kind of money on groceries - especially if their values are such that going to the farmer's market is important. However, if they can't afford it (which they can't, and it stinks that getting locally grown food is a LUXURY item) then concessions have to be made. Like, maybe they can still shop at the farmer's market but not for everything. They can be choosy about it until they get out of debt and reduce their fixed costs and maybe make more money. (I love the farmer's market too, so I get it!)
Cars that need regular repairs at those high mileages are rarely worth keeping - if the cost is higher to keep than to replace then it's time to replace. Might be better to combine the truck and Acura costs and see what they add up to, then compare and see if it would be better to ditch the car/truck and get a new-to-them car (aka a used car) and potentially reduce their car/transport costs each month. Paul's a PM, he should be able to run that analysis super easily and then see in plain-numbers what the correct decision to make is (even if it emotionally feels uncomfortable).
I wouldn't hire him and cannot believe he's a manager of other workers as well... 😮
God bless Paul and Morgan. Stay strong and disciplined guys. We're rooting for you.
Wow not even a hug or a sense of comfort .. this man is detached and totally emotional unavailable .. needless to say his finances may reflect that ability to connect as well.. counselling is needed.. if they intend to make this work ..
Exactly. The fact that the husband can instantly analyze a work scenario but sits mute when his own finances are discussed tells you a lot.
I'm not so sure, he seems pretty shy/avoidant to me and she seems pretty extroverted/assertive in the conversation.
Ramit, you mentioned money trauma before, and I wondered if you could help me. I ALWAYS BEAT MYSELF UP whenever I have an unexpected bill, and 'punish myself' when something happens. I found out yesterday a replacement car key for me is £470 ($600USD), it is a smart key for my car. I am really upset about this, and am cutting out things of the value of up to $600 until that money is recouped. I feel bad I have to spend this on a replacement item, which was my fault for losing the key. I realise this isn't normal. Can I afford the £470? Yes, well it is one month worth of savings, and I have like £30,000 saved anyway. But it hurts so much, and I feel very upset and want to cut out nice things until I recoup that $600. How do I stop punishing myself for this. Shit happens in life, but why do I do this to myself :( thanks
Who else is curious about how high is the student loan?
47:19 Absolute Genius. Wow
Renovations don't happen often, so if it isn't remediation or urgent repairs if i were in their shoes I would really try to hold off a bit so that the final product is the best it can be.
I lived in a room without flooring and curtains for years due to unforseeable circumstances, but it was worth waiting until i could afford a good quality product.
Did your home just have the base flooring?
@@barose1 yes, it was just the concrete slab. The wet areas had tiles because it was a requirement, but there wasn't any money available to finish the floors. I ended up putting cheap carpet squares down to prevent breathing in the concrete dust. But the floors were hard and cold to sit on, it wasn't enjoyable.
These situations truly suck and I hope the best for them.
It honestly feels like they might need to bite the bullet and sell their house and rent for a while just to get some breathing room, but that's going to be a traumatic event for them (that they could hopefully recover from). The saving grace is that they likely have equity in their home and will leave with something should they sell.
Another thing they can do (which is kinda counter to what Ramit often advises) is trying to increase their incomes on the short-term at least so that they can pay off their debt. They'd have high fixed costs... but they could justify keeping the house.
Above all else, it's great that the couple recognizes that any change they make to their finances must come with a fundamental change in the way they think about and handle their finances.
I think an easy fix is to sell a car and stop paying insurance on it. Grocery shop at a discount store, not Trader Joe’s and a farmers market, no clothes and toys etc and stop the home renovations. I know it stresses her out, but it’s a temp situation to avoid a larger financial catastrophe later. Husband needs to step it up too and I love that he got more involved in this episode.
@@mikaelaziegler9782 agreed. there's smaller lifestyle changes that incrementally can add up to big differences, like selling one car and immediately ceasing renovations.
Hard disagree about dedicated accounts being bad. That is simply the modern equivalent of the envelope method, which has worked for decades. Provided you communicate even a little, it shouldnt matter which paycheck it allocates from. If daycare and mortgage are each $2000/mo (round numbers) then each person can allocate $1000/mo to each or one person handles one and another does the other. Your mortgage will barely change and daycare costs are obvious changes (kids birthday or enrollment change). You want to spend $1000/mo on groceries, make a new account for that and set up another payroll allocation. Again, envelope method.
If your HR cant split paychecks that way, then set up auto transfers. Most banks now allow multiple accounts or can handle vaults because they see people doing this already.
Yeah I agree with this. I have a bunch of accounts to save for things and one did aged to student loan payments so the loan servicer doesn’t have access to double withdraw payments or other issues I’ve heard 😅 I think his problem with it was the fact that it was his/hers instead of our accounts dedicated to X or Y.
I have buckets in my account. No need for multiple accounts lol. If it works for you cool but people with high-level problems need to fight for simplicity
Making whole accounts for groceries is nuts lolol
@@lowlowseesee well I buy groceries with a credit card and pay it off? lol I said things I’m saving for, like an emergency fund and house down payment. Marcus allows you to create additional savings account numbers and move money between them seamlessly. If I had one account number with buckets, and my student loan servicer accidentally for no apparent reason decided to double pull a payment, I’d be out the money until they can issue a refund, which is usually 6-8 weeks. You get an interest rate reduction by using autopay, but they’re not the most reliable, so I’m protecting myself.
I agree. This is how I have my accounts set up and I love it. But, I also used the envelope system about 8 years ago, and got out of debt that way, so maybe that's why I love it.
great conversation
OMG @5:32 that look at the camera killed me
This is a great episode, and it's a reminder that many of us have to live basic, simple (boring?) lives to be financially stable. Vacations, pets, home ownership, exciting food, etc are not a must. Is it about mindset? No going out, but stay home and okay board games? No travel, but stay home and rest? Rent indefinitely?
They need to sell one car, cut all subscriptions, give away the pets, cut clothes and eating out, shop from aldi and Walmart not farmers market. Then pay down all debt, build emergency funds. Once the second kid is out from daycare, stack up the savings for home reno. Then, build up investment funds. At 37 and 33, they need to be stacking at least $800-1000 for retirement.
You don’t just give away a pet. It’s $300/mo but there’s SO MANY other options they have to cut costs. Like the 3rd car, Trader Joe’s, vacations, clothes and toys etc, no home renovations etc
Street interview outro let’s gooooooo
Very impressive for Paul, I was like WTF. He already knew the fixed cost before it came out. Go Paul!
I opted out of your newsletter because you created an event that no one could get on and then sent an email for a promo video basically underdelivering by a long shot, but the interviews are still useful.
Managing money is a skill. Like any other skill, practice to get better.
Didn't quite understand around 44 min. He mentioned paying off debt to kill the payment and that was good enough?
Actually I DO think Ramit is a magician- spreading the magic of SMALL DAILY DISCIPLINES DONE CONSISTENTLY. Regarding your financial fitness as well as physical fitness, I see it as pretty much the same principle: money and muscle built consistently & mindfully banked, COMPOUND to better serve your present AND future self. I wish I would have grasped the finance end as early on as I grasped the fitness end but better late than never!
Groceries $800 is very doable.
I have been enjoying the podcast and from time to time I can identify with 1/2 of the couple, but I’m curious if ever there was or will be an episode with someone who is single or a single mother or father, etc.
This podcast focuses solely on couples
3 cars, 2 adults, I was thinking the same thing! 😂😂😂😂
Sell the car
I waited the whole week for this, lol.
X2 🤗
I couldn't help but laugh and rewind to make sure I indeed saw Ramit just stare right into the camera at the 5:30 mark. ("No, we had to have lots of conversations...")
Great couple I wish them the very best 😊❤😊