Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

They forgot about $160K of expenses?

2 Oct 2026 · 1 min

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1:02

In this YouTube clip, Ramit Sethi and a client (Speaker A) review the client’s budget and uncover a massive $160,000 of previously unaccounted expenses—$150,000 in tuition and $10,000 in camp fees. The discovery translates to an estimated $13,000 per month shortfall, with the client’s fixed costs already at 101% of income. Ramit points out that the client is spending more than they earn each month, and that additional variable costs such as travel, gifts, and dining out further exacerbate the overspend. The conversation highlights how hidden large expenses can dramatically skew a personal‑finance picture, leading to stress and financial instability.

You didn't put tuition in there. Where's the tuition bill? That's a huge, huge, huge bill.
How much?
$150,000.
$150,000. And then what about the camp?
Call it $10,000.
I like how, like, you know, once in a while you have somebody, like, feeling between the couch cushions. And remember, like, when we were kids, we used to find a quarter.
We're like, oh my God, like, I'm going to the arcade.
But in your case, we just found $160,000 of hidden expenses in your couch cushion.
So if I'm doing the math right, we're at Around $13,000 a month.
Um, hey, what's that fixed cost number right now?
101%.
Yeah, you're spending more than you make every single month. Yeah, you actually are way underwater because you also have travel, which is not included in fixed costs. You also have gifts, you have eating out. That's tens of thousands per year. So you are spending far more than you make every single month.
Now it makes sense why he's so worried and stressed.