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Ramit Sethi tells Money for Couples that spending 108% of income leads to ruin
Sethi says the couple’s fixed costs consume more than their monthly income, creating a time limit to “go broke,” even though they own their home outright.
Yahoo Finance highlights a Money for Couples episode where Ramit Sethi discusses a married couple’s finances, despite their relatively high combined income of $112,000 a year and a near-$500,000 net worth.
The outlet says the couple, aged 30 and 29, purchased their home in cash and own it outright, but Sethi points to a spending problem: fixed costs reportedly consume more than their entire monthly income, leaving them at about 108% of their income for expenses.
In the episode, Grace describes feeling unable to make major life decisions due to Chris’s reluctance to engage in money management, while Sethi warns that continued overspending is simply a matter of time before they lose everything.
Yahoo Finance also describes a weekend dispute tied to a limited budget, with Grace estimating they had $100 for the entire trip, then later covering additional costs after Chris’s spending, including drawing from money she had set aside for property taxes.