Ramit Sethi talks to someone who has $4.7M saved but carries credit card debt because they don't track groceries, dining out, or trips. They treat only mortgage and utilities as real bills, swiping cards for everything else without a budget, calling it mindless spending.
We just swipe the card.
Okay, so groceries, eating out, trips, kids. No budget.
Yep, we don't talk about it. We just swipe.
And then what happens once the bills come?
Well, I think luckily we've never been in a position where we don't have the money to pay our bills.
Well, you were in credit card debt.
But it was never for bills.
Oh, what was it for?
Very mindless spending.
Yeah. What? That's bills. We made debt normal. Um, so vacation, debt. Uh, little purchases, odds and ends things, debt. Okay. And it added up. Do you see trips or groceries or whatever not as bills?
I guess I don't.
Yeah, it's interesting.
In my head, I think it's more mortgage, car payment, utilities.
I see all of it as bills. Okay. Some of them are static, they're automatic. Some of them are variable because we're charging different amounts. But at the end of the month, they all transform like a fairy tale. They all end up being bills. Sure. And then I got to find a way to pay them off.
