192. “We spend 98% of what we make—Where is it all going?”
Jan 21, 2025
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Justin and Deepika grapple with living paycheck to paycheck despite high earnings. They explore the mystery of where their money disappears and how to break free from credit card debt. Balancing a side hustle complicates their financial picture further. They discuss the importance of a shared financial vision and the impact of differing attitudes toward money in relationships. The couple seeks to transform their financial habits by implementing conscious spending strategies and holding monthly money meetings to enhance accountability.
Justin and Deepika's differing financial philosophies highlight the need for a shared vision to break their cycle of financial stress.
An alarming 98% of their income is consumed by essential costs, prompting the need to reevaluate and reduce unnecessary expenses.
Establishing a proactive wealth-building mindset enables Justin and Deepika to create actionable saving and investment goals for their future.
Deep dives
Overcoming Financial Discord
Justin and Deepika are experiencing significant money management issues, largely stemming from differing financial philosophies. Justin is oriented towards enjoying the present, while Deepika is more future-focused, leading to tension in their financial decisions. They find themselves in a cycle of credit card debt despite having a combined income of $260,000, which creates stress and feelings of living paycheck to paycheck. This discord is further exacerbated by a lack of a shared financial vision and understanding of their spending habits.
Unpacking Fixed Costs
A detailed review of their financial situation reveals that 98% of Justin and Deepika's income is consumed by fixed costs, which is exceptionally high. Key contributors include exorbitant insurance costs totaling around $3,800 per month, and a car payment of approximately $1,800. They discover that their expenses far exceed what is reasonable, given their income level, leading to confusion about where their money goes each month. This realization prompts a much-needed discussion about identifying and reducing these unnecessary costs.
Exploring Business Dynamics
Justin's longstanding side hustle of operating a multi-use building is examined, revealing a complicated relationship with his family involved in the business. Despite efforts to launch a recording venue, the lack of mutual commitment from family members has hindered progress. His desire to prioritize financial stability for his family competes with the needs of the business, highlighting the difficulty of balancing familial obligations and personal financial goals. Both partners recognize that the chaotic nature of this venture has negatively impacted their financial stability.
Shifts in Financial Mindset
After an insightful discussion about their financial habits, Deepika and Justin begin to see their relationship with money in a new light. They identify the need to manage money proactively instead of reacting to financial stress. Realizing that their prior approach was driven by fear rather than informed decision-making, they commit to cultivating a wealth-building mindset. This transformation empowers them to take ownership of their finances instead of being passive participants.
Prioritizing Savings and Investment
As Justin and Deepika's awareness of their financial situation grows, they discover the importance of directing funds toward saving and investing. Previously oblivious to their ability to build wealth, they establish a framework for long-term savings alongside addressing immediate expenses. The conversation about family finances evolves into a structured plan, including setting aside substantial amounts monthly for investments. They realize that even small shifts in financial allocation can lead to significant future benefits.
Creating a Shared Vision
By discussing their financial dreams and aspirations, Justin and Deepika craft a unified vision for their future that includes saving for a home and the well-being of their son. With newfound clarity, they set actionable goals, bridging the gap between their short-term desires and long-term financial security. This discussion is crucial for mending their financial discord, allowing both partners to feel actively included in the decision-making process. The realization that they are on the same team further solidifies their commitment to work together towards their rich life.
Justin (40) and Deepika (32) are stuck in a frustrating financial loop: despite their high income, they feel like they’re living paycheck to paycheck. Deepika dreams of buying a house someday, but the couple can’t seem to identify where their money is going—or how to escape the cycle of credit card debt. Justin has a side hustle that he’s eager to grow, but he’s struggling to get the same level of commitment from his business partners. For years, they’ve been focused on survival, not dreaming about the future. Now, they’re realizing that their lack of a shared vision for their finances is keeping them from the life they want. Can Justin and Deepika kick their old habits, create a better strategy for managing their money, and finally start living their Rich Life?
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