A couple with a $1M house spends 97% of their take-home pay on fixed costs and can't afford groceries. Ramit Sethi tells them their money plan requires flawless execution to survive, leaving no room for emergencies. They need to cut fixed costs and rebuild their safety net before they lose everything.
Previously on Money for Couples. You will probably lose your house. You're spending more than you make. You're running out of savings.
We need to make better decisions on how we're spending.
Anything that doesn't get directly applied to our debt doesn't keep us in this house, basically. You're spending 97% of take-home pay on fixed costs alone. You are broke. Yeah, we are. Severe danger. Red flag, stop everything. What do you want to do?
We have a plan for our money.
The good news is you built a plan. The bad news is your plan is based on being 100% perfect in a way you never have for your entire lives. Like, if one bad thing happens, what do you do? Can't imagine. You'll be destroyed. Sorry. I want you to give yourself the ability to withstand life. Right now, it's like there's a tug of war happening. I'm trying to pull you into financial safety. Do you want to stay in this situation for the rest of your lives?
No.
No.
