@Netflix’s How To Get Rich | Money For Couples Podcast | NYT Bestselling Author
Los Angeles / NYC
Joined April 2008
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Here's the scenario. What would you do?
45 & 47 years old
Income: $143K
Credit card debt: $96,179
Fixed costs: 102% of take-home pay
Savings: $0 ("I’m worried we will be homeless")
Groceries: $3K/month (“We eat like we’re at a restaurant...every night")
Kids: 2 under 7 years old
These real numbers are part of a conversation on my podcast with Freya & Blake. Episode below.
Ramit Sethi retweeted
ain't no way
NEW YORK (AP) — A long-retired New York City police detective was arrested Wednesday in the road rage killing of a motorist on the George Washington Bridge, police said.
apnews.com/article/george-wa…
Earnable Live closes tonight at 11:59pm Pacific.
If you’ve been telling yourself you’ll start a business “after the holidays,” this is your first step instead. Link below.
5 weeks, from “no idea” to your first sale, with a new cohort starting November 4: iwt.com/earnablenow
Coming up in a future video!
- Hiring a house manager, nanny, chef
- How much it costs
- Lifestyle of wealthy DINKs vs billionaire
What else do you want to me to cover on how people spend their money?
Why would someone spend $400,000 on a vacation?
I interviewed a luxury travel advisor who took us behind the scenes of high-end hotels:
- Your advisor sends a note to the chef before you land. Allergies, dislikes, "we want Thai food." They’ll make anything for you, even off menu
- No check-in desk. Slow welcome, “magical moment” upon arrival, bags are invisibly taken to your room and waiting when you get there
- He wanted to feed the kids at 5 in his room, the butler cleaned up, then adults are at 7
- They know your drink order and it always appears anywhere you go across the property
- Staff can pack / unpack your bags (almost nobody uses this)
These are typical at luxury hotels — so what makes a trip ultra luxury?
And who would pay for this?
Find out in my new video below
Inside the world of ultra luxury vacations
youtu.be/QOPCKVIg6RY?si=Fr7X…
I don't track every expense. It's a waste of time. I focus on 4 key numbers:
- Fixed costs (50-60% of take-home pay)
- Savings (5-10%, higher is better)
- Investments (5-10%, higher is better -- this is where the real wealth is created)
- Guilt-free spending (20-35%)
The only expenses I track are LARGE + VARIABLE expenses. For most people, these are eating out, travel, and kids' expenses
This is how you can radically simplify your finances and spend less than 1 hour/month taking control of your money
If you want a template to do this...
Get it here, free:
iwt.com/csp
Two customers. Same product.
One spends $50. The other happily spends $500.
I’m answering why on a live call this Monday.
The topic is the Psychology Behind Premium Buyers
To be on the call, join Earnable Live by Friday at 11:59 PM Pacific: iwt.com/earnablenow
“I’ll deal with my debt when I make more money.”
It’s one of the invisible scripts that keeps people in debt for years.
Tonight at 8pm ET / 5pm PT, I’m going live to show you how to break it, and how to get out of debt without giving up everything you love. (link below)
Join me for free: iwt.com/debtfreelive
Surprising finding: When people talk about money early on while dating, it almost never changes the trajectory of the relationship
- [Just discovered the guy you're dating has $43,000 of CC debt]: "We'll figure it out"
- [She has $325,000 of student loans]: "We'll figure it out"
- [They haven't ever made more than $37,500/year]: "We'll figure it out"
Here's why I think this happens:
1. Most of us don't understand money ourselves so we never develop a strong POV on it. Compare this to the list of physical traits that almost everyone in America develops
2. Money is so abstract that we don't connect the dots to how our partner's finances will affect our lifestyle. For example, if our partner has to pay $2,250/month in CC debt payments, how will that affect both of us? Almost nobody asks questions like this
3. Money, like flossing, is one of those things we defer until "some day"
Let me know what you think. I see this pattern often on my podcast
Spend extravagantly on the things you love, as long as you cut costs mercilessly on the things you don't
2 kinds of people in personal finance:
#1: I don't need much. I prefer to live a simple life & spend less than I earn:
- “I just don’t want much. Is that weird?”
- “I’ve found the less I want the more content I am.”
- “I’m pretty content with what I have. I’m not someone that has a ton of drive and needs, is constantly reaching for the next big thing.”
- “I have what I need. And not aiming for the big-spending high life because I didn’t grow up with much and don’t need much more than I have.”
#2: I want to experience X, Y, and Z. I'm willing to work really hard to make a lot of money and get the things I want:
- “I’m front loading my suffering in order to enjoy the fruits later on.”
- “One of my goals is to fly delta one with no guilt.”
- “Being able to fly first class across the globe, and also being able to pay for our parents to fly first class with us.”
I've always been #2. Which one are you?