Ramit Sethi shows why affordability requires math, not feelings. He walks through fixed costs hitting 236% of a $9,000 monthly income, then challenges the assumption that a $4,000 apartment makes sense. Most people answer affordability questions without ever opening a calculator.
What the fuck does that have to do with affordability?
In my optimistic mind, I think like she's going to get a job and it's going to be okay.
It's interesting, like when I ask people an affordability question, they never use numbers in their answer. Can you afford a $3,000 mattress?
Well, back is the most important part of your body.
I go, what the fuck does that have to do with affordability? When I ask an affordability question, you should pull out a calculator. But we answer with almost anything other than math. Mm-hmm. Affordability is purely about math. Can you afford it?
Okay. The numbers in my head—
I'm not talking about your head. We have the numbers. Look at them. Your net is, let's just say, $9,000 to be generous. Watch this. What's your fixed cost number just jump up to?
Like 100—
236%.
Yeah.
My CSP is about to explode right now. I never saw a number with a 2 in front of it. Now I'll ask you again. Can you afford a $4,000 a month apartment?
No, no, there's no way.
