A short transcript from a Ramit Sethi YouTube video where Ramit discusses a guest's poor financial position, focusing on the contrast between frequent vacations and substantial credit card debt. Ramit offers an informal heuristic (tripling reported spending) and probes how travel expenses are paid, revealing reliance on credit cards while flights/hotels are partly covered by miles or job discounts.
We're in a really bad financial position.
In total, how many vacations you take a year?
Three.
Okay, Roundup. Last year we took about 10. It's my math exactly. I say take whatever it is and triple it. However much you say you eat out, triple it. However much you say you take vacation, triple it. Never fails. Everybody make a note. Ramit Rule number 318, vacations. Whatever you say, you spend triple it. How do you pay for all this stuff when you go to the Bahamas?
Well, the flight I usually use miles and then the hotel I'll get like through my job. They have like discounts. I'll pay that on the debit card. But when we get there it's like a free for all. Like I'll just use a credit card. And we have a lot of credit card debt.
Yep, Credit banks and credit cards. Love you too.
