A couple with two houses can't afford to eat out and are panicking about money with a baby due in two weeks. Ramit Sethi walks them through their spending, which exceeds their income, and tells them they need to either earn more, cut housing costs, or make short-term sacrifices.
You said we cannot eat out. Yeah. Because of our housing.
Yeah. We are supporting two households in two different states. It is eating into all of our ability to do anything else.
I don't want to just exist in the two houses, not doing anything.
Let's take a look at the numbers. Whoa. You are essentially spending more than you make. Yeah. I've sensed a chill come over the room now.
We both really love our various home bases. For either of us to give up that is really tough.
If you change nothing, what happens?
I don't know.
You would not be able to pay for the houses, right? One or both.
I just need to make more money.
Well, it would work if nothing were about to change in 2 weeks. Is there something happening in 2 weeks? Maybe a baby. So like, where does the baby fit in financially speaking? Have we modeled any of that? I'm anxious.
I'm so anxious about having enough savings.
We have to make some decisions that might feel like a little uncomfortable now, but they are a lifetime of comfort.
