230. “We spend 168% of what we make. What are we missing?”

39 snips

Oct 14, 2025

Amy and John are in a financial crisis, battling $768,181 in debt and fixed costs at an eye-watering 168% of their income. John's hidden tax debt has shattered their trust, leaving them feeling like they're on separate lifeboats. As Amy navigates launching a new business, John struggles with his shrinking income. Ramit challenges them to confront tough realities and emphasizes the need for clear financial leadership. Can they rebuild trust and find a path to financial recovery together?

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INSIGHT

Good Income, Broken Financial Structure

Their household earns a solid income but assets hide zero investments and tiny savings, signaling structural problems.
A healthy income alone can't compensate for unsustainable fixed costs and aggressive debt levels.

ANECDOTE

Hidden Tax Debt Shattered Trust

Amy discovered John had hidden years of business tax debt and felt furious and defeated when the CRA contacted him.
She called it financial infidelity because she trusted their finances were fine while the debt accumulated unnoticed.

ADVICE

Prioritize Cutting Debt Payments Now

Stop treating hustling as a strategy and prioritize reducing debt payments that consume most of take-home pay.
Focus immediate efforts on cutting fixed costs and getting debt payments below a manageable percentage of income.

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Amy (32) and John (40) are raising two young kids in Canada, earning a solid $155,000 a year. But with $768,181 in debt and fixed costs at 168% of their income, every month feels like a losing battle. Two years ago, John hid hundreds of thousands in business tax debt from Amy—what she calls “financial infidelity.” Since then, trust has been fragile, money is tight, and they often feel like they’re fighting on “two separate life rafts.” Amy’s trying to rebuild their future, but when more than HALF of their monthly income goes immediately towards debt, they’re struggling to find a path forward. Can Ramit help them bridge the gap between good intentions and hard numbers—and finally get on the same team?

In this episode we uncover:

• How their fixed costs rose to 168% of their income

• Why John hid his business tax debt, which shattered Amy’s trust

• How years of financial strain forced Amy to shoulder household finances alone

• How Amy’s volatile income and John’s shrinking business payouts created a $4,000 deficit

• John’s Dreamer attitude collides with the harsh math of his monthly debt payments

• The emotional impact of having no safety net

• Amy’s plan to launch a new business vs. John’s struggle to keep his afloat

• Why managing risk isn’t about optimism

• Amy’s frustration with carrying the mental and emotional load of finances while John “focuses on income”

• Ramit’s direct call for decisive leadership and clear planning to get out of financial free fall

Chapters:

(00:00:00) “He spent two years hiding his debt from me”

(00:18:03) Ramit breaks down their numbers

(00:26:27) “I was humiliated driving that Tesla”

(00:39:52) “We’re flying blind”

(00:54:47) “I feel like I’m carrying this weight alone”

(01:02:13) “Hope is not a strategy”

(01:24:56) “This is what happens when we finally get specific”

(01:42:25) Where are they now? Amy and John’s follow-ups

Links Mentioned In This Episode:

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