{"id":327925,"date":"2025-12-14T16:09:44","date_gmt":"2025-12-14T21:09:44","guid":{"rendered":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/episode-238-were-in-credit-card-debt-again-will-this-ever-stop"},"modified":"2025-12-14T16:10:19","modified_gmt":"2025-12-14T21:10:19","slug":"episode-238-were-in-credit-card-debt-again-will-this-ever-stop","status":"publish","type":"post","link":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/episode-238-were-in-credit-card-debt-again-will-this-ever-stop","title":{"rendered":"Episode 238. \u201cWe\u2019re in bank card debt once more. Will this ever cease?\u201d"},"content":{"rendered":"<p><\/p>\n<div>\n<p><iframe loading=\"lazy\" title=\"&quot;We spent $44K on credit cards\u2014again&quot;\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/Sf8nOvUYi5M?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><\/iframe><\/p>\n<p><iframe loading=\"lazy\" style=\"border-radius: 12px;\" src=\"https:\/\/open.spotify.com\/embed\/episode\/0nSGUXHhVAiKtNyPpHgwgE\/video?utm_source=generator\" width=\"100%\" height=\"400\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-testid=\"embed-iframe\"><\/iframe><\/p>\n<p><span style=\"font-weight: 300;\">Ado (33) and Gabby (32) are exhausted by a cycle they can\u2019t seem to escape: getting into credit card debt, paying it off, and then ending up right back where they started. Now, with $44,000 in credit card balances, student loans on both sides, and an $1,800 monthly daycare bill, they feel one setback away from losing everything.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">Ado\u2019s avoidant, live-in-the-moment approach clashes with Gabby\u2019s desire for structure and long-term security. Both come from financially chaotic childhoods, and those old patterns are replaying in their marriage. They dream of moving to Europe and building stability for their young daughter\u2014but can they break the cycle that\u2019s defined their entire relationship?<\/span><\/p>\n<p><span style=\"font-weight: 300;\">This episode asks: What will it take for them to finally stop the spiral and create a plan that lasts?<\/span><\/p>\n<h4><b>In this episode we uncover:<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Why Ado and Gabby keep finding themselves back in credit card debt<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">How their \u201cdance\u201d of overspending, working extra, and then trying to catch up has cost them thousands<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">The emotional toll on Gabby as she tries to break a cycle that feels unsustainable<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Why Ramit pushes them to examine their spending through the lens of their daughter watching and learning their habits<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Taking apart their monthly budget line by line<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">The $170 date nights, lattes, Costco trips, and Target runs that add up<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Gabby\u2019s realization that overspending isn\u2019t just about Ado<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Ado\u2019s upbringing as a Bosnian refugee, and how frugality, scarcity, and parental sacrifice shaped his desire to enjoy life<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">How childhood experiences continue to shape Gabby\u2019s budgeting, anxiety, and need for security today<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">How both partners absorb social norms around spending and treat exhaustion as a justification for impulse purchases<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">The truth about using their savings account as a checking account<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">The staggering $3,075\/month they spend on debt payments<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Their dream of moving to Europe being pushed back year after year<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">The emotional rupture of realizing one missed paycheck could destabilize everything they\u2019ve built<\/span><\/li>\n<\/ul>\n<h4><b>Chapters:<\/b><\/h4>\n<p><span style=\"font-weight: 300;\">(00:00:00) <\/span><span style=\"font-weight: 300;\">\u201cWe never tell ourselves no\u201d<\/span><\/p>\n<p><span style=\"font-weight: 300;\">(00:17:24)<\/span> <span style=\"font-weight: 300;\">\u201cIt\u2019s not just about paying off debt\u201d<\/span><\/p>\n<p><span style=\"font-weight: 300;\">(00:33:21)<\/span> <span style=\"font-weight: 300;\">Ramit breaks down their numbers<\/span><\/p>\n<p><span style=\"font-weight: 300;\">(00:48:21)<\/span> <span style=\"font-weight: 300;\">\u201cI feel like it gives me comfort\u201d<\/span><\/p>\n<p><span style=\"font-weight: 300;\">(01:02:26)<\/span> <span style=\"font-weight: 300;\">\u201cMoney was a weapon\u201d<\/span><\/p>\n<p><span style=\"font-weight: 300;\">(01:12:53)<\/span> <span style=\"font-weight: 300;\">\u201cDenial lasts a week, vision lasts a lifetime\u201d<\/span><\/p>\n<p><span style=\"font-weight: 300;\">(01:32:00)<\/span> <span style=\"font-weight: 300;\">\u201cNobody making this much should have credit card debt\u201d<\/span><\/p>\n<p><span style=\"font-weight: 300;\">(01:36:45)<\/span> <span style=\"font-weight: 300;\">Where are they now? Ado and Gabby\u2019s follow-ups<\/span><\/p>\n<h4><b>This episode is brought to you by:<\/b><\/h4>\n<p><span style=\"font-weight: 300;\">Aura Frames | Use promo code RAMIT to get $35 off the best-selling Carver Mat frames at <\/span><strong><a href=\"https:\/\/auraframes.com\/\">https:\/\/auraframes.com<\/a><\/strong><\/p>\n<p><span style=\"font-weight: 300;\">Masterclass | Get up to 50% off Masterclass during the holiday season at <\/span><strong><a href=\"https:\/\/masterclass.com\/ramit\">https:\/\/masterclass.com\/ramit<\/a><\/strong><\/p>\n<p><span style=\"font-weight: 300;\">Facet | Facet is waiving their $250 enrollment fee for new annual members, and for my audience, Facet is offering $300 into your brokerage account if you invest and maintain $5,000 within your first 90 days. Head to <\/span><strong><a href=\"https:\/\/facet.com\/ramit\">https:\/\/facet.com\/ramit<\/a><\/strong><span style=\"font-weight: 300;\"> to learn more about which membership option is best for you. Offer expires December 31, 2025<\/span><\/p>\n<p><span style=\"font-weight: 300;\">Fabric by Gerber Life | Join the thousands of parents who trust Fabric to protect their family. Apply today in just minutes at <\/span><strong><a href=\"https:\/\/meetfabric.com\/ramit\">https:\/\/meetfabric.com\/ramit<\/a><\/strong><\/p>\n<p><span style=\"font-weight: 300;\">Wildgrain | Get $30 off the first box \u2014 PLUS free Croissants in every box \u2014 at <strong><a href=\"https:\/\/wildgrain.com\/ramit\">https:\/\/wildgrain.com\/ramit<\/a><\/strong><\/span><\/p>\n<h4><b>Links Mentioned In This Episode:<\/b><\/h4>\n<p><span style=\"font-weight: 300;\">Join my event \u201cBecoming Time Rich\u201d on December 18th at 8pm ET. Register at <\/span><strong><a href=\"https:\/\/iwt.com\/timerich\">https:\/\/iwt.com\/timerich<\/a><\/strong><\/p>\n<h2 aria-level=\"2\"><b><span data-contrast=\"none\">Transcript<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;201341983&quot;:0,&quot;335559685&quot;:2010,&quot;335559737&quot;:2010,&quot;335559738&quot;:375,&quot;335559739&quot;:375,&quot;335559740&quot;:768}\">\u00a0<\/span><\/h2>\n<p><a href=\"https:\/\/drive.google.com\/file\/d\/1gc4UsyLlfTkCDoPdRexERx3U9_4wK8yP\/view?usp=sharing\"><span data-contrast=\"none\">Download the full transcript PDF<\/span><\/a><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559685&quot;:2010,&quot;335559737&quot;:2010,&quot;335559738&quot;:150,&quot;335559739&quot;:150}\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:00:00]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We were like, &#8220;We have all these credit cards that don&#8217;t have any balances on them. Do whatever we want.&#8221; And then we did whatever we want, and then we went right back into debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:00:11]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a044,000 in credit card debt wasn&#8217;t necessary.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:00:14]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How long did it take you to go from out of debt with your credit cards to back in debt?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:00:18]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I think it was less than a year maybe.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:00:20]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We could lose everything, house, car, our entire livelihood.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:00:25]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What are some other ways to reward yourself?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:00:28]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s not spending money? I don&#8217;t have one. That&#8217;s how I always rewarded myself.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:00:32]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I know I want to change, and I think I had convinced myself that I was changing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:00:39]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Just to put it very bluntly, you cannot actually change by tracking 250 numbers while eating Chick-fil-A 10 minutes away from home. Those two are incompatible.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Narration]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:00:52]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Listen to this line from today&#8217;s guest application.\u00a0&#8220;We have gotten in and out of $50,000 of debt at least five times over the course of our relationship. Why can&#8217;t we figure it out?&#8221;\u00a0If you&#8217;ve ever wondered how people stay in this cycle of debt for years, listen to this conversation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:01:12]\u00a0Today I&#8217;m speaking to\u00a0Ado and Gabby. They&#8217;re a married couple in their\u00a030s. They live in Phoenix with their daughter who&#8217;s almost two years old, and together they earn almost $180,000 a year, and yet they&#8217;ve been trapped in a cycle of credit card debt for the entirety of their relationship.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:01:30]\u00a0They pay it off, they swear it&#8217;ll be different the next time around, and somehow they end up right back in it. Now,\u00a0their backgrounds explain a little bit of it. Both of them have experienced a lot of fear and conflicting money messages around money, but there&#8217;s more. After all, they make a lot of money, so why can&#8217;t they pay this debt off?\u00a0What is stopping them?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:01:51]\u00a0The question today is, can they break free from this fear and chaos and actually start living a\u00a0Rich Life? We&#8217;re\u00a0going to\u00a0find that out soon.\u00a0I&#8217;m about to open up\u00a0Ado\u00a0and Gabby&#8217;s conscious spending plan, which breaks down their net worth,\u00a0income,\u00a0and where they spend their money.\u00a0This is the same tool that I use in every episode.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:02:08]\u00a0Their assets, $238,400.\u00a0Investments, $10,569.\u00a0Savings, $1,000.\u00a0Debt, $387,362. That gives them a total net worth of negative $137,393.\u00a0All right. Fixed costs are 83%. I suspect this has a lot to do with some of their financial attitudes and behaviors. Investments,\u00a00%. Well, that explains a lot. Savings,\u00a09%. Interesting. Guilt-free spending,\u00a08%. I don&#8217;t believe that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:02:41]\u00a0I have a lot of questions, but before we dive in, a quick shout out to our new listeners. Welcome to Money for Couples. Drop a comment below and let us know where you are tuning in from. And please remember that our guests are real people sharing their personal stories.\u00a0That takes a lot of courage. You\u00a0got to\u00a0ask yourself, would you come on a show like this, seen by millions of people, and share every number from behind closed doors?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:05]\u00a0Let&#8217;s keep the comments supportive and judgment-free. My community knows how hard it is to ask for help, and I hope you will join us in rooting for every guest on this show.\u00a0Now, let&#8217;s get started with\u00a0Ado\u00a0and Gabby.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Interview]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:19]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Let&#8217;s go back to the beginning of this debt cycle. When did it all begin?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:24]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We both came into the relationship with debt. I think at the time I had maybe 8 to $10,000 of debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:33]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0An Ado?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:34]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Maybe 2,500, if that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:37]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0This is credit card debt or student loans?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:39]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Oh.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:40]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Oh, I was just talking credit, Ramit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:43]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0As usual, nobody counts student loans. They go, &#8220;Oh, student loans? That thing over there, which is totally nondischargeable in bankruptcy? Oh, that doesn&#8217;t count.&#8221; Okay, so you&#8217;re talking about credit card debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:54]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, credit card debt alone.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:03:55]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a08k for Gabby, 2K for Ado, and the student loans were a whole different thing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:04:00]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:04:01]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right, fine.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:04:02]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I feel like when we moved in together, I think is when we started to rarely deny ourselves, let&#8217;s say.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:04:10]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Why did that happen with the two of you versus independently? I guess it also happened independently because you were both in credit card debt. So what happened when two of you moved in together from a financial perspective?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:04:23]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I think we had someone that, in a weird sense, gave us permission to do things we probably knew we shouldn&#8217;t have. Because I think independently, yes, we had credit card debt, but obviously us now being almost seven years later, we&#8217;ve given each other permission to go even deeper than we probably would have if we were still alone.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:04:46]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Does it show up in any particular way, like one person&#8217;s like, &#8220;Let&#8217;s go out to eat,&#8221; and the other one&#8217;s like, &#8220;No, we should stick to our numbers?&#8221; And the other one goes like, &#8220;Ah, come on. It&#8217;s Friday.&#8221; Any of that stuff happened in your relationship?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:04:59]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0All the time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:05:00]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0All the time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:05:00]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Who&#8217;s the one who says it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:05:01]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Both of us at different times.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:05:04]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Give me the example.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:05:06]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0So we&#8217;d be on a budget. We&#8217;re not buying new clothes or anything. And Gabby for example, she&#8217;s like, &#8220;Let&#8217;s go to the mall. Oh, we&#8217;re just going to look around. I&#8217;m not going to buy anything.&#8221; Of course, she walks right into her favorite store, Anthropology, and is like, &#8220;Oh, this looks cute.&#8221; And I&#8217;m like, &#8220;Okay, yeah, it looks cute.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:05:25]\u00a0And then, &#8220;Oh, but this looks cute too.&#8221; I&#8217;m like, &#8220;Oh yeah, that looks great. You should definitely get it.&#8221; And then Gabby&#8217;s like, &#8220;No, we talked about a budget.&#8221; I&#8217;m like, &#8220;Oh, but it looks so good on you. It&#8217;s going to make you happy. I already know it. Let&#8217;s just do it.&#8221; And that&#8217;ll be the cycle for me. Anytime she looks great in an outfit, which she looks good in everything, and I&#8217;m like, &#8220;Okay, you have to get it because it looks great. Why wouldn&#8217;t you get it?&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:05:48]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What about the reverse, Gabby? Give me an example.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:05:52]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0With me, I would say sometimes is related to food. Like, &#8220;Okay, we&#8217;re going to be on a budget. We&#8217;re not going to eat out as much. We&#8217;re going to cook at home.&#8221; And, &#8220;Oh, I really don&#8217;t want to eat anything that&#8217;s at home. Babe, let&#8217;s go out to eat.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:06:04]\u00a0Or, &#8220;We haven&#8217;t been at breakfast in a while.&#8221; Or, &#8220;Let&#8217;s go out to dinner.&#8221; And might bring up like, &#8220;Oh, I thought we&#8217;re on a budget.&#8221; I&#8217;m like, &#8220;Oh, actually, you&#8217;re right. Let&#8217;s stay inside.&#8221; He&#8217;s like, &#8220;No, if you want to go, let&#8217;s go.&#8221; I&#8217;m like, &#8220;Okay, yeah, I do want to go. Let&#8217;s get out of here, and let&#8217;s go have dinner.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:06:17]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What do you think is going on in these examples that you&#8217;ve given me, the clothing, the food? What do you first notice about the way that you describe it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:06:27]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0As soon as I see Gabby&#8217;s face light up about something that I mentioned or her face lights up, of course I want to do it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:06:37]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0And I noticed that I know if I bring it up, he&#8217;s also going to want to get on board, even if he&#8217;s like, &#8220;We should stick to the budget.&#8221; I also know that he wants to eat out as well.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:06:49]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0And the dance has begun. You remember those old 1920s videos? It&#8217;s very coy, and somebody taps on the shoulder and then the other one goes, &#8220;How about a dance?&#8221; And everyone&#8217;s dancing in circles like they used to do. The dance has begun. So Gabby brings up going out or a shirt. Ado says, &#8220;I want to make you happy.&#8221; So you go home with this bag in your hand, whether it&#8217;s from Target or Anthropology or whatever. What happens then?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:07:22]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Guilt. We&#8217;ll get home, we&#8217;ll get settled, and I will immediately start thinking, I did not need this.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:07:31]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Mm-hmm. And then?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:07:33]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0And then Ado will swoop in and say, &#8220;No, you should. I&#8217;m glad you got it. You looked great. It&#8217;s going to make you happy. You should keep it.&#8221; 80% of the time it&#8217;ll make me feel better, and I will keep the item, and we will go on with life.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:07:51]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Ado, in your application you wrote, &#8220;We&#8217;ve gotten into debt and out of debt at least five times, and now we are back in debt.&#8221; If you had to describe how that happened in one sentence, what would you say?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:08:09]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We never tell ourselves no.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:08:12]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Got it. And hearing yourself say that out loud, how does that feel?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:08:17]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Regretful. Now in the moment, great.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:08:22]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. I appreciate the candor. Gabby, what about for you? When you hear Ado describe that, what do you think?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:08:31]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I think that we were consistently living above our means. And similar to what he said, we were living in the moment. And we enjoyed the moments. But now I agree&#8211; actually, no, I don&#8217;t feel like I regret it because I really enjoy the thing that we did, some of it. But I sometimes wish that we had denied ourselves a little bit more and lived a little less in the moment and more for the future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:00]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0When you are living in the moment, what feels good about it? Give me an example.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:05]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0One of the things I think of is us living in the moment is when we traveled to Europe two years ago. We were in Switzerland and went to an amazing spa that cost, I think, $1,000 a person. And it was luxurious and calming and relaxing and everything that we needed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:24]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Mm-hmm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:25]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0And that felt good, really good. So when I say I don&#8217;t regret, it&#8217;s moments like that. The moments I do regret is going to Target and dropping $200, $300, and not having anything to associate that with the money, if that makes sense.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:42]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How do you decide when you&#8217;re going to Target or when you&#8217;re going to a Swiss spa if you can afford it? Wow. Both smiling. Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:55]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Sorry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:56]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What&#8217;s the answer?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:09:58]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We don&#8217;t. We just do it. And then we figure it out later, is what historically has happened.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:09]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Do you figure it out?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:11]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0It gets paid one way or another.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:12]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yes. How did that Swiss spa get paid for?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:22]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0So that was earlier in the trip, so we still had the budget for that. It was things later in the trip that caused us to go over budget. And then when we got home, we were a little bit tight for a month or two because we had overspent on our trip.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:36]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How did you make it up when you got back home?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:39]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Working extra.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:40]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:41]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Ah, both of you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:44]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I think at the time it was mainly Ado. So I work traditional 9-5, and he has more of a traditional RN, 12-and-a-half-hour schedule. So he had the ability to pick up more within a week&#8217;s timeframe.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:10:56]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0So was it worth it to you, Ado? When you were working the extra shifts a month later, were you like, &#8220;Yeah, I&#8217;m fine with this because we had that beautiful spa experience.&#8221; Or were you like, &#8220;I don&#8217;t like this?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:11:09]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0When it&#8217;s to repay or remake up something like that, no, I don&#8217;t regret it at all. I would do it any day. But when it&#8217;s to repay things like random little trips, like we went to Target and spent $500 on new bedding&#8211; because it was the beginning of the pandemic, and we didn&#8217;t know what to do.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:11:28]\u00a0We were just inside the house and I&#8217;m like, &#8220;Oh, I want to make it look better, so we went to Target and spent a bunch of money.&#8221; Those things, yeah, I regret it. I don&#8217;t want to work extra for those. But going to Hawaii, going on any trip that we make memories, I don&#8217;t regret it any bit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:11:42]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Then the dance continues at a different date, at a different time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:11:45]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Beautiful. Do you see what I&#8217;m doing with my fingers here? It&#8217;s the dance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:11:49]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We love dancing. I always feel like after that situation, we always have an outsider looking in type of realization, but we forget. It&#8217;s like, okay, it&#8217;s already spent. We&#8217;ll just move on. We&#8217;ll make better decisions next time. And then we don&#8217;t. And then we don&#8217;t. And then we don&#8217;t. And then here we are talking to you about it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:12:11]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We just do it and then we figure it out later.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:12:17]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Gabby, what do you think hearing this dance?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:12:20]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0That it&#8217;s a cycle I&#8217;d like to break because it&#8217;s not sustainable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:12:26]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Would you though? Candidly, the dance sounds great to me. What&#8217;s the problem? It actually sounds quite nice to me.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:12:36]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We have different priorities now that we have a kid. That&#8217;s my main thing, is that we have different priorities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:12:43]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How old is your kid?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:12:45]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Just 21 months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:12:46]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a020 months. Okay. Gabby, is that your answer? Because, like I said, it sounds good to me.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:12:56]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No, that&#8217;s not the only answer. I am tired of this dance because that has cost us thousands of dollars.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:13:06]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Hmm? Wow. You told me that you figure it out when you get home. Ado works extra. He doesn&#8217;t really resent it, except when you spend extra at Target or things that are not particularly memorable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:13:18]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0It costs us monetarily, and it costs us having quality time as a family because we have to work and make it up and pay for it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:13:30]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Mm-hmm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:13:31]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0And clothes aren&#8217;t that important to me anymore. They used to be. I feel like I held a lot of value in what I wore in my appearance, but I don&#8217;t feel that way anymore. At least not as much.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:13:47]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0When did that change? Was it 21 months ago?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:13:50]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Probably, yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Narration]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:13:51]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Before you judge\u00a0Ado\u00a0and Gabby&#8217;s\u00a0spending,\u00a0take a second to reflect on your own habits. In my opinion, almost every couple has their version of this dance. Maybe it&#8217;s not credit card debt.\u00a0Maybe it&#8217;s buying the latest smartphone even when your current phone works fine or splurging on a weekend getaway because you deserve it, or upgrading your car when the old one is still running smoothly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:14:13]\u00a0Now, some couples have a dynamic where one person tempts the other by dangling a carrot, and then that person gives in. You both know better, but you do it anyway.\u00a0And then you promise next time will be different. Or you say things like,\u00a0&#8220;We&#8217;ve\u00a0got to\u00a0do better.&#8221;\u00a0But it really never is because that is the system and the dynamic that you have built.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:14:33]\u00a0But\u00a0Ado\u00a0and Gabby are not just dancing for two anymore. They have a little girl.\u00a0She&#8217;s watching and learning how money works from her parents. She&#8217;s developing her relationship with money, which she&#8217;s\u00a0going to\u00a0carry into adulthood. So I\u00a0want to\u00a0know why they keep spending money the way they do.\u00a0Let me\u00a0try to find out next.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Interview]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:14:55]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0You mentioned earlier in the conversation student loans not being dischargeable in a bankruptcy. I filed for bankruptcy in 2016.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:04]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Did it go through?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:07]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0My bankruptcy, yes, but I didn&#8217;t realize what I had to do for my student loans. They sent me my first student loan payment, and it was $827. My income was not what it is now, and I couldn&#8217;t afford that. So I was like, &#8220;I&#8217;m not paying this. I can&#8217;t afford this. And just didn&#8217;t do anything for about seven years about it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:28]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Hold on a second. You declared bankruptcy before you and Gabby were together?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:33]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Correct.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:34]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Why?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:35]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0It was credit card. It&#8217;s a car. I bought a brand new car. It&#8217;s a Nissan Versa because I couldn&#8217;t afford anything else.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:43]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Gabby, did you know this when you both got together?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:49]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, you did. I told you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:50]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Okay, yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:51]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Did you talk about debt before you got in a relationship?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:56]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Not that I can recall.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:15:58]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0You know what&#8217;s interesting? Money is almost never a concern for people when they&#8217;re dating. Truthfully, nobody really cares. If you like somebody, they go, &#8220;Oh, I have student loans.&#8221; Nobody cares. &#8220;Oh, I have $20,000 in credit card debt.&#8221; &#8220;Mm, that sucks.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:16:16]\u00a0People do not connect money to their future, as shocking as it is to here. It is extremely rare that people will discover something about their partner, debt, financial infidelity, any of it, and actually change or end a relationship. It almost never happens. So I&#8217;m not surprised here.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:16:37]\u00a0Are you ever skeptical of your relationship, the two of you together, when you&#8217;re discussing money? I ask because you have not been successful at paying off your debt and keeping it off.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:16:52]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I don&#8217;t really like talking about money, if I&#8217;m being honest.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:16:54]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0In a sense, yeah, I remember, maybe three or four years ago. We were on vacation actually at the time, and I was feeling so anxious about our money situation, how much we had spent. We were in Makarska, Croatia, which is a beach town in Croatia.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:17:12]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Beautiful.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:17:12]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We like to travel. And we had just had a beach day, and we came back in the room, and I am the one who is, I guess, the money person in the relationship. I like to keep tab. I&#8217;m looking, and I&#8217;m like, &#8220;Oh, we&#8217;re already over budget.&#8221; I&#8217;m like, &#8220;I really wish we could just have a fresh start and we just did not have credit card debt.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:17:32]\u00a0I&#8217;m like, &#8220;You know what babe? I&#8217;m going to apply for a personal loan, a debt consolidation loan.&#8221; At the time, Ado, I&#8217;m pretty, was short was like, &#8220;Okay,&#8221; just off doing his own thing in the room. I applied for it, and we got it, and I am over the moon. I&#8217;m so excited. I&#8217;m telling him how this is a fresh start for us and this is going to be the time, and we need to stick to this budget.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:17:54]\u00a0He&#8217;s like, &#8220;You always get really excited when we&#8217;re paying off debt.&#8221; I&#8217;m like, yeah, because I feel like this is going to be the time. And I feel like in that moment he was probably feeling skeptical, like, &#8220;Okay, this is going to be the time.&#8221; This is going to be the time, as we&#8217;re currently on vacation in Europe with two more weeks of our vacation to go.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:18:10]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Very, very powerful observation, Ado. Let me repeat it for everybody. You get so excited when, what was it, Gabby? When you are about to pay off debt. Is that right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:18:24]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:18:24]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Funny though, you weren&#8217;t about to pay off debt. You&#8217;re actually about to take out more debt. Ado, what did you mean by that observation? I find it very intriguing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:18:35]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0It&#8217;s standing, saying, &#8220;I have a budget of a Nissan Versa,&#8221; but you&#8217;re standing in a BMW dealership saying, &#8220;Oh yeah, this is going to be great for us, but we don&#8217;t have the budget for this.&#8221; So that&#8217;s why I&#8217;m like, &#8220;You don&#8217;t have the budget for a BMW. You have a budget for an Nissan Versa. So why are you so happy about this, to be in this place?&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:18:59]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s interesting. I read it a little differently. In my opinion, what Gabby was doing was, she&#8217;s in debt, driving a BMW at the BMW dealership. And then she says, &#8220;You know what? We should get a Nissan as well. That will be cheaper than getting another BMW.&#8221; Taking out a personal loan is not paying off debt. It&#8217;s actually just taking out more debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:19:24]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0To shift.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:19:24]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0The way that you said we got approved, you should actually be dreading that. You should be angry at the personal loan company. Mother\u00a0[Bleep]\u00a0you personal loan company for allowing us to apply and for agreeing because you know we are not credit worthy, but we are dupes. We got duped into thinking that taking out more debt is winning. You&#8217;re not winning. You chose to lose. Do you recognize that now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:19:52]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Now, yes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:19:53]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0And how are we doing with the personal loan?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:19:55]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Oh, it&#8217;s paid off.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:19:57]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0And how about the credit cards?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:19:59]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We&#8217;ll get to that in the conscious spending plan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:20:01]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. You&#8217;ve gotten in and out of debt around five times, Ado, you mentioned. What happened when you got out of debt? That&#8217;s what I want to know. How&#8217;d you do it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:20:14]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Different ways. One of the times, unfortunately Gabby&#8217;s father passed away, and he had a life insurance policy. So we used majority of that money to pay off debt?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:20:27]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How much?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:20:29]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0It was around 50,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:20:31]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:20:32]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0So besides student loans, it was just like credit cards, and I think we paid off Gabby&#8217;s car at the time. And then we were like, now we have all these credit cards that don&#8217;t have any balances on them. Do whatever we want. And then we did whatever we want and then we went right back into debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:20:54]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How long did it take you to go from out of debt with your credit cards to back in debt?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:20:58]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We&#8217;re very efficient. I think it was less than a year maybe. We literally just did whatever we wanted. We bought whatever we wanted, went to wherever we wanted. When we booked our trip a few years ago to Europe, we&#8217;re like, &#8220;Oh, first class upgrade. Cool. I&#8217;ve never been on a first class flight. Let&#8217;s do it.&#8221; It was great.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:21:16]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Money doesn&#8217;t come into the question, like, a first class upgrade. That&#8217;s a lot of money. I can understand like, &#8220;Hey, let&#8217;s get an extra bag of peanuts at Target or something.&#8221; But a first class upgrade, that&#8217;s a lot of money. Most people would pause and be like, &#8220;Wait, 3,000 or $11,000&#8211;&#8220;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:21:35]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0It was actually $700. That&#8217;s why we were like, &#8220;Oh, we could afford&#8211;&#8221; afford is probably not the right term to use it for that, but we&#8217;re like, &#8220;Oh, this won&#8217;t eat into our budget too much. Let&#8217;s do it.&#8221; So we did.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:21:48]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0So 700 bucks for that doesn&#8217;t flash a signal. How else did you get out of debt after you ran up the credit cards a year later?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:21:59]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Debt consolidation loans.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:02]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:03]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0So we&#8217;ve had at least three.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:06]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Mm-hmm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:08]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We have a second mortgage on the condo that my family owns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:12]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Oh, you took out a second mortgage on the family condo to pay off the credit card debt?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:17]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:18]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0This last time, yes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:22]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Got it. What&#8217;s the type of conversation happening when you&#8217;re doing these things like debt consolidation, second mortgage? Do both of you believe what you&#8217;re saying when you&#8217;re having that conversation?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:33]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0In the moment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:35]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. I believe it, and I&#8217;m hopeful, very hopeful that this is going to be the last time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:43]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0In the moment, I&#8217;m like, &#8220;We&#8217;re on the same page. We got this. This is it.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:49]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Was there ever something you were considering buying or did buy that did flash a signal that said, &#8220;Whoa, that&#8217;s a lot of money?&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:22:57]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Not really, honestly. I just feel like we could technically afford it because I could technically work. That&#8217;s how I thought about it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:23:07]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0This is the plight of people who work on a freelance or hourly basis or can pick up shifts. They start to calculate everything by number of hours. I can pick up three shifts, and it&#8217;s fine.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:23:19]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0All the time. I&#8217;m like, &#8220;Oh, I just have to work this many more hours of overtime, and I could do it.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:23:24]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:23:25]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0And it was a lot.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:23:27]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0It&#8217;s a trap.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:23:28]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, it is because my job is not very easy to be just picking up extra shifts. Like last year I worked 24 days in a row during our hottest season, which means a lot of very dead people came into our facility that we had to revive. I literally tell Gabby like, I feel like I am a war veteran coming out of something, and I don&#8217;t even know how to function at home.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:23:55]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I got you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:23:56]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Meanwhile, she was not functioning well at home because we had a six-month old.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:24:00]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What else changed for you? When was it? Did you have a boy or a girl?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:24:03]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0A girl.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:24:04]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0A girl. Okay. What changed for you when you had your daughter?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:24:10]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0So I had a very traumatic birth and both me and my daughter almost died. And I feel like that moment changed a lot for all of us.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:24:24]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Mm-hmm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:24:26]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I feel lucky to be here. I feel very lucky that she&#8217;s here. And the things that mattered before do not matter to me. What matters to me now is being healthy, spending time with my family while I&#8217;m here, and making memories with them. And so I&#8217;m willing to spend money on travel and to do and to see things that I&#8217;ve never seen before with my family.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:25:01]\u00a0But to spend money on frivolous things that I deem as personally frivolous is not my priority anymore. It&#8217;s not my goal. I could care less about a shirt or going to the mall. What I do care about is getting to the point that Ado doesn&#8217;t have to work as much, that I don&#8217;t have to work as much, so that we can get time back. Because time is being spent at work to pay for the things we&#8217;ve done. Whereas I want that time spent as a family.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:25:32]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. I think I understand. I&#8217;m sorry you had to go through that. It sounds awful. Ado, do you feel the same way? Is that the major change that happened when your daughter was born, financially speaking?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:25:44]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yes. And I think also more recently&#8211; I&#8217;m transgender. I&#8217;ve been out for the last three or four years. And with the most recent political things, I don&#8217;t as safe. Not that I really felt very safe. I&#8217;m a Muslim refugee from Bosnia. My dad stayed back to fight in the war, and I was with my mom and older sister in a refugee camp. I was seven days old when we had to leave our town. I&#8217;m a naturalized citizen now, but I think more so my goal has changed from spending money just randomly to trying to get out of the country.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:26:30]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0And so that&#8217;s the biggest motivator for me to get on the right path. When I said I want to plan for next steps. It&#8217;s next steps so that we could go. We are already supposed to be in Europe in September, and now it&#8217;s October and we&#8217;re not there, and our plan has shifted to five years from now.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Narration]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:26:50]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0God, this makes me so mad. I&#8217;m [pissed] that we live in a country where someone who fled a genocide no longer feels safe to live here with his family. I think it&#8217;s very troubling that we have entire groups of people who don&#8217;t feel safe simply for existing. I watch a lot of horrible things online,\u00a0and very little of it affects me much.\u00a0I&#8217;ve seen a lot of\u00a0[Bleep].<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:27:11]\u00a0I see some of the comments people make towards me. What?\u00a0Do you want to make fun of my eyebrows? Go ahead. But I watch these\u00a0ICE\u00a0videos of families being ripped apart, no warrants,\u00a0masked men refusing to identify themselves, people being sent to foreign torture prisons illegally, and it\u00a0[Bleep]\u00a0sickens me.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:27:30]\u00a0Now, why am I talking about this? Isn&#8217;t this just an innocent money podcast? Well, the answer is that money is political. Politics is why your housing is expensive, why your healthcare is expensive, and why guys like me get huge tax cuts while poor and middle class Americans get huge fees and costs burden on them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:27:51]\u00a0It&#8217;s funny, once in a while I see reviews of this podcast where people say, Ramit got too political.\u00a0Deep down, they want me to teach them how to maximize their credit card rewards and then shut my mouth. I&#8217;m\u00a0going to\u00a0be really direct. That&#8217;s never\u00a0going to\u00a0be me.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:28:04]\u00a0If you want someone to give you five ways to save on sourdough bread, I&#8217;m not the right person for you. What I do show you is how to use your money to live a\u00a0Rich Life, how to invest, how to craft your money dials, and how to be generous with other people.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:28:19]\u00a0So in light of this, I&#8217;m\u00a0going to\u00a0start highlighting organizations that I want us as a community to support. For example, my wife and I have donated to Immigrant Defenders Law Center, which is a nonprofit organization. They provide free legal services to refugees and asylum seekers.\u00a0I&#8217;m\u00a0going to\u00a0ask you to donate and leave a comment below telling me why you did. Small amounts make a big difference, especially with a community of our size.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:28:46]\u00a0Right after this break, we&#8217;re\u00a0going to\u00a0get back to\u00a0Ado\u00a0and Gabby and dive into their CSP. Thank you for listening, and thank you for supporting the causes that I,\u00a0myself,\u00a0support as well.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Interview]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:28:58]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I really appreciate you both sharing what you did with me. Sometimes I&#8217;m a little dismissive when people run up a bunch of debt and then they have a son or a daughter and then they go, &#8220;I want to do it all for the kids.&#8221; And the reason that I&#8217;m a little dismissive of it&#8211; I probably shouldn&#8217;t, and I think you&#8217;re both a great reminder.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:29:26]\u00a0But the reason that I don&#8217;t love that reasoning is, if you can&#8217;t make a change for yourselves, it is very difficult to just take that focus and focus it on a little baby. A baby can be spiritual and can change everything, but it doesn&#8217;t change the way that you look at money and treat money. You have to do that yourself.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:29:51]\u00a0What I&#8217;m hearing from you is you actually have a bigger reason. You have a bigger, much more powerful reason, and I&#8217;m grateful for that because we probably have to make some serious changes today. Would you both agree?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:30:05]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Absolutely.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:30:06]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, absolutely.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:30:07]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Can we take a look at the numbers?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:30:09]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Let&#8217;s take a look at the numbers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:30:11]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Gabby&#8217;s always been into finances. I knew she would be excited about this.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:30:16]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0And I was excited and I was shocked that he had applied, truthfully.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:30:20]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s interesting, right? Ado, you applied because you want Gabby to be happy. You find that interesting?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:30:28]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Because I feel like Gabby and I talked about our finances more recently, and we thought we had a very good plan. It&#8217;s been going okay, but we&#8217;re still not sure how to get to where we want to be. And when I say it&#8217;s been okay, it&#8217;s us paying off debt. That&#8217;s literally our conversation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:30:49]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right. Let&#8217;s take a look at the CSP. Gabby, can you read off in the net worth box, the word in bold and the number in full next to it for this entire box, please?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:31:00]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yes.\u00a0Assets, $238,400. Investments, $10,569.\u00a0Savings,\u00a0$1,000.\u00a0Debt,\u00a0387,362.\u00a0For a total net worth of negative $137,393?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:31:21]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right. How do you feel about those numbers?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:31:23]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I wish that they were different, but this is where we&#8217;re starting, and we&#8217;re going to change things.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:31:32]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Ado, how do you feel about those numbers?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:31:34]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Like\u00a0[Bleep].<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:31:35]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Why?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:31:38]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Because I wish they were different, but these are all the choices we&#8217;ve made.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:31:43]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What do you see when you look at these numbers?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:31:45]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0If something were to happen to one or both of us, we would not be doing very well in terms of paying bills, in terms of debt. We have no emergency fund. We have nothing to fall back on. That&#8217;s not enough savings to get us through a week, truthfully.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:32:01]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What would happen?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:32:02]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We could lose everything.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:32:07]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0House.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:32:08]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0House, car, our entire livelihood.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:32:14]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I&#8217;ll read off some of the subaccounts that you noted here. His student loan, $91,000. Her student loan, 26,000. Credit cards, 44,000. IRS, 23,000. Air conditioning loan, 16,800. Auto loan, 12.6k. Family loan, 5,400, and home loan 166,000. What do you see when I share those numbers out loud?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:32:43]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Choices<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:32:46]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Mm-hmm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:32:47]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0And I feel anxiety. I feel regret.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:32:52]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Which parts do you feel regret over?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:32:56]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0The credit card, especially. I just think it wasn&#8217;t necessary. 44,000 in credit card debt wasn&#8217;t necessary.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:33:03]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0A lot of things aren&#8217;t necessary.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:33:05]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0This is true, but 44,000, that&#8217;s not including, like, our bills are paid. All those things. This is just extra. Did we really need it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:33:16]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Did you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:33:17]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No, we didn&#8217;t. Did we want it? Yes. And now we&#8217;re at the point where we&#8217;re going to have to pay for it, and pay for it sacrifices time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:33:27]\u00a0<\/span><b>Ramit:\u00a0<\/b><span style=\"font-weight: 400;\">Okay. Ado, what about you? What do you see when I share those debt numbers?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:33:34]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I feel like if I&#8211; I&#8217;m not blaming my parents, but I feel like if I had a little bit more guidance, I feel like some of these choices wouldn&#8217;t have been made.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:33:46]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Ado, can you read off your combined monthly income, please?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:33:51]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0$14,830.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:33:54]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s the gross. So combine the two of you make $177,960. Did you know that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:02]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0It&#8217;s actually more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:04]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How much more?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:05]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0This is net. Take home anywhere between 6,000 to the highest 18,000?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:12]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a018,000 a month net?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:14]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yes. In January of this year, he brought home $18,964.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:19]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What the\u00a0[Bleep]? You&#8217;re a nurse, right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:22]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:22]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0So I make 43, almost $44 an hour.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:27]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a085k, 86k, something like that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:29]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. So plus with our extras that we have, I just make a lot.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:34]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Plus he was working nights at the time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:36]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0And what does that get you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:37]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a018% difference on base pay, and then we have what this thing is called PSSP. And you get an extra $500 per shift.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:48]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Wow. Gabby, are you a nurse as well?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:51]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I am.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:52]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Do you have the same situation?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:34:53]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No, so he works traditional RN schedule of 12-and-a-half-hour shifts. I&#8217;m an RN case manager, so I work five, eight-and-a half-hour shifts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:04]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay, got it. Let&#8217;s take a look at this because this is quite interesting. So your net right now is $10,860\u00a0combined. We show\u00a0Ado&#8217;s take home as 6,600, but you&#8217;re telling me that it could go up to as much as 18,000 in a month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:23]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. Last paycheck this month, he made $10,606 net.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:29]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0So is it like, Ado, if you&#8217;re just like, &#8220;I want to make 10,000 next month,&#8221; you can reliably do that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:36]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Pretty often. Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:37]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Amazing. Oh my God.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:39]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We were trying to be conservative, like if he didn&#8217;t work a bunch of extra shifts, this is what our take home would be. But realistically, with us trying to get out of debt to accomplish these goals, he&#8217;s been able to pick up more to allow us to get out of debt faster.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:35:53]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right. I have a vision of what we&#8217;re going to have to do. You might not like it. You don&#8217;t have to like everything I suggest to you. You may just want to think about it and hopefully do it. We&#8217;ll get to that.\u00a0Your fixed costs are 83%. No wonder you feel anxious about money. Anyone with an 8 in front of the number on their fixed costs is going to feel anxious, worried, scarce about money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:36:24]\u00a0It&#8217;s too much. You can&#8217;t do it. Let&#8217;s take a look though. It&#8217;s your debt payments at $3,075 a month that are the most expensive. Now let&#8217;s take a look. You got Discover, Sapphire, Freedom, Amex, Amex Gold, Citi, Venture, Platinum, Quicksilver. What the\u00a0[Bleep]? Why do you have so many credit cards?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:36:47]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Living above our means. And when I say that, it was during a time when we were heavily in debt. We&#8217;re still in that time, truthfully. I believe we weren&#8217;t in debt and was like, &#8220;Oh, our credit score is really good. Let&#8217;s see if we can get this card.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:37:03]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Why?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:37:03]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0For no good reason.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:37:08]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Because we&#8217;re stupid. We just think that&#8211;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:37:09]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0No, you&#8217;re not stupid, but you&#8217;re being rewarded by the wrong things.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:37:15]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:37:16]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Investments are at zero. You are doing a little bit of pre-tax investment, about 1,100 bucks a month, which is good. Moving along. Your savings are at 9%. Okay, this is obviously a lie. $1,000 a month to the emergency fund. And guess how much they have in their emergency fund? $1,000. So what? Did you guys set this up two days ago?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:37:38]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0No, in the last month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:37:41]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0In the last one&#8211; like, coincidentally, we&#8217;re going to talk to Ramit Sethi. Let&#8217;s set that freaking savings account up. Huh?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:37:50]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. No. We&#8217;ve had the savings account for all of our relationship. There&#8217;s sometimes been zero, and there&#8217;s sometimes been 10,000, and other times there&#8217;s been less. When Gabby gave birth, we had about 12,000 in savings, and I just started working at the job I&#8217;m working, and her insurance for maternity leaves didn&#8217;t kick in and I had to take unpaid time off because of the traumatic birth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:38:17]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0So we relied on those savings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:38:20]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s a good example of an emergency. That is a good example of one for sure. It&#8217;s interesting people&#8217;s relationship with their savings account. I think your example for both of you with this traumatic birth, perfect example. I would&#8217;ve tapped that in a split second, just like you did great work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:38:40]\u00a0Parent that&#8217;s super sick, you need to get on the first plane at an airport. I don&#8217;t care about costs. I&#8217;m getting on the first plane. Boom. Those are the things we&#8217;re talking about. But the fact that you have $1,000 in savings is extremely problematic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:38:54]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0It&#8217;s very much so alarming.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:38:57]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. That&#8217;s a good way to put it. Your fixed costs are $9,000, so it wouldn&#8217;t even last you a week.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:01]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:03]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s it. If the two of are not basically performing at the top level when it comes to work, that&#8217;s it. It&#8217;s over. The whole house of cards collapses. And then finally, okay, your guilt-free spending says 8% or $838 a month. I don&#8217;t really believe that number. Do you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:23]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:24]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. You eat out and stuff, right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:27]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:28]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0That was a very quick yeah. How many times a week do you eat out? Oh oh. Saw the smile. Here we go.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:33]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We just went out last week. We just went out last week.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:36]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We went out this morning.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:36]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Oh crap. Oh crap.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:37]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Where did you go?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:38]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We went to Chick-fil-A.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:40]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Oh.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:40]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We had doctor&#8217;s appointments this morning, so we went in fasting and then afterwards we hadn&#8217;t eat. Obviously we didn&#8217;t bring anything with us. We&#8217;re like, &#8220;Oh, let&#8217;s stop and get something to eat.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:50]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What do you mean, &#8220;Obviously, we didn&#8217;t bring anything with us.&#8221;?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:39:53]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Oh, I shouldn&#8217;t say obviously. We did not plan, and we didn&#8217;t bring anything with us to eat afterwards. So the only choice that was left was to get something on the way home.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:40:04]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Thinking it&#8217;s just like, oh, it&#8217;s 15, 20 bucks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:40:09]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Didn&#8217;t you tell me that as of 21 months ago with your daughter and the desire to move, etc., we have a new motivation?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:40:18]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Absolutely. It doesn&#8217;t mean I can&#8217;t afford things.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:40:22]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Well, you can&#8217;t afford them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:40:23]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We paid debit, sorry. I&#8217;m not trying to be rude. I promise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:40:29]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Let me read you the numbers, Ado. You have $387,000 in debt. You have a $91,000 student loan. She has a $26,000 student loan. You have $44,000 in credit card debt. IRS, $24,000. Air conditioning, 16. Home loan, 12. Family loan, 5,000. And then a home loan of 1 66. I don&#8217;t think you can afford it, do you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:40:57]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Within the budget that we set.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:41:00]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What&#8217;s the budget?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:41:02]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0700 for everything for two weeks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:41:05]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0No, this is for a month. It says $838.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:41:09]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Oh.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:41:11]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0With the budget that we currently have, include him having more income. So we give ourselves $750 per pay period. And in that we get gas. We get groceries, eating out, any diapers or wipes we need for our daughter. So if long as it stays within that $750, that&#8217;s what we mean when we say it&#8217;s in the budget.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Narration]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:41:32]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Do you notice the mental gymnastics around rationalizing a freaking Chick-fil-A purchase?\u00a0We can afford it. We pay debit. It&#8217;s in the budget. Truthfully, this is less about their actual numbers and more about the narrative that they have created for themselves.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:41:49]\u00a0We all tell ourselves stories about ourselves. We actually specialize in creating stories about ourselves, such as how much energy we have, how tired we are after work, how much physical activity we can take.\u00a0And of course, with money, we specialize in telling ourselves stories that do not match up with the actual numbers.\u00a0It&#8217;s incredibly common for people with high debt to engage in these mental gymnastics to rationalize their spending.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:42:15]\u00a0Most people have a total lack of connection between today&#8217;s decisions and tomorrow&#8217;s consequences. Like if I asked you,\u00a0&#8220;How is that new car you&#8217;re\u00a0going to\u00a0buy going to affect your retirement?&#8221;\u00a0You&#8217;d have no idea. The vast majority of people would not. They told me what matters in their\u00a0Rich Life&#8211; time together, a future overseas,\u00a0freedom from all this stress.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:42:38]\u00a0But when you look at their actual behavior, they are spending money on Chick-fil-A, which\u00a0by the way,\u00a0is actually not anyone&#8217;s\u00a0Rich Life. I&#8217;ve talked to millions of people.\u00a0Not a single person has ever said,\u00a0&#8220;Ramit\u00a0Sethi,\u00a0I\u00a0[Bleep]\u00a0love Chick-fil-A. It&#8217;s my\u00a0Rich Life.&#8221;\u00a0Never said it.\u00a0Never said it about\u00a0Target. Never said it about freaking\u00a0See&#8217;s Candy. Never.\u00a0Random commodities are not part of your\u00a0Rich Life. I can promise you that. This is just comfort food that allows an escape from an otherwise mundane reality.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:43:06]\u00a0Now, you could disagree with me. You could say,\u00a0&#8220;Ramit Sethi, I love Arby&#8217;s roast beef sandwiches. That is part of my\u00a0Rich Life.&#8221;\u00a0I have two responses to that.\u00a0Number one, why do you have the palate of a stray dog? Number two, I don&#8217;t really think that is your\u00a0Rich Life. I just don&#8217;t believe it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:43:22]\u00a0I don&#8217;t believe that when you look back on your time on planet Earth, that you&#8217;re\u00a0going to\u00a0put in your top five areas of your\u00a0Rich Life,\u00a0Arby&#8217;s roast beef sandwiches or hot tamales or freaking\u00a0Febreze.\u00a0It&#8217;s not going to happen. It&#8217;s\u00a0going to\u00a0be bigger, much more meaningful things,\u00a0like being able to spend time with my kids, being able to support a friend when they need help. It&#8217;s meaningful,\u00a0big things. I have never heard somebody say,\u00a0Tide detergent is my\u00a0Rich Life.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:43:49]\u00a0Now what&#8217;s interesting here is that it&#8217;s\u00a0going to\u00a0be challenging for them to actually start living their\u00a0Rich Life\u00a0until they pay off their debt,\u00a0and they can&#8217;t pay off their debt until they get control of their spending.\u00a0So what&#8217;s this budget they keep mentioning? I\u00a0want to\u00a0see their numbers, which we&#8217;re\u00a0going to\u00a0do right after this break.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Interview]]\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:44:06]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We have a budget that we stick to in terms of&#8211; we call it our living expenses account. We try to stay in that account, meaning that once that money is gone, it&#8217;s gone. And we try not to pull\u00a0from savings to replenish it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:44:22]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Can I see the budget?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:44:23]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:44:25]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Who maintains it, by the way?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:44:26]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Me.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:44:27]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Ah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:44:28]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0All right. Let&#8217;s go back to October.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:44:33]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right. Where is it? There we go. All right. So let&#8217;s take a look at what I see here. I see $13,005 coming in, $12,602 going out, which means there&#8217;s $402 left to spend. Moving along to bills, money going out. We get just a list of stuff here. Rent, HOA, Netflix, AppleCare, blah, blah, blah, blah, blah, insurance. Okay, fine.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:45:02]\u00a0And then we have expenses. Oh, I&#8217;m very interested in this. Okay, so we have coffee shop, Costco, date night. Date night is $170 so far. Daycare, diapers, eating out, formula, gas, groceries. We have self-care, Target, vehicles. All right. So we have all this stuff. So what does this budget tell you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:45:35]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0That we have a lot of work left to do.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:45:38]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s not an answer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:45:40]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0That we&#8217;re still overspending.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:45:43]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Does it say that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:45:45]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No, it doesn&#8217;t.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:45:47]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0If you walked in to see a patient and you saw the report by their bedside or whatever, you open it up. You look at it. It tells you something, right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:45:56]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Mm-hmm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:45:56]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0They had a heart attack or whatever happened. It tells you something. What does this budget tell you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:46:04]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0It tells me where our money&#8217;s going. Because I feel like for a long time&#8211;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:46:08]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Hold on, I&#8217;ll stop you right there. Okay, you track it all. And what does tracking it all tell you? When you look at the numbers and you track it all, what do you learn specifically about your spending?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:46:20]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0That not a lot has changed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:46:23]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. I think you&#8217;re wasting your time. I don&#8217;t think your financial situation is improving. You&#8217;re tracking all this stuff. There&#8217;s 500 cells in this budget. What&#8217;s the point? I can&#8217;t tell what is the number one thing to take away from that budget. There&#8217;s so many freaking numbers on there. Can you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:46:41]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:46:43]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What&#8217;s the point of it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:46:45]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I feel like it gives me comfort in a sense.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:46:49]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Ado, where are you on this?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:46:51]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I hate that budget. It&#8217;s too many numbers. It&#8217;s complicated. I do not like tracking every one of my expenses at all. I don&#8217;t want to do that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:47:02]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. So is this what happened, both of you in debt, going through a series of like, oh, we got this money. We&#8217;ll pay it off. We got that money. We&#8217;ll pay it off. Back in this debt cycle. So then Gabby goes, &#8220;Okay, I know what we&#8217;re going to do. We&#8217;re going to keep a budget.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:47:19]\u00a0We, but it&#8217;s really, I, Gabby. You download this budget from somewhere. It has 10 gajillion numbers on it, and then every month meticulously tracking every number, but not actually changing anything about the way you spend money. Did I get that right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:47:38]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:47:38]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:47:38]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Guys, motivation is not enough to change this. This requires a complete recalibration of your relationship with money. I&#8217;ll take that\u00a0[Bleep]\u00a0budget, take it out back, bury it. But I have to encourage you, Gabby, we are not looking for confidence. Confidence does not come from a spreadsheet. Trust me.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:48:02]\u00a0Confidence comes from competence. And competence comes from actually changing the way that you are treating your money. And Ado, you can&#8217;t be like, &#8220;I hate money, so Gabby&#8217;s going to track it. And as long as it&#8217;s okay, I&#8217;m going to spend it.&#8221; Can&#8217;t do it. That&#8217;s part of the dynamic that&#8217;s gotten you into this situation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:48:22]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:48:23]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Are you both prepared to change the way that you relate to money?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:48:28]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Please. God, yes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:48:32]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. Sorry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:48:35]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Take a second. What&#8217;s happening, Gabby? Sorry, I didn&#8217;t catch that before.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:48:43]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No, I think it&#8217;s part of the realization that I know I want to change, and I think I had convinced myself that I was changing, and I feel like it&#8217;s the realization that that actually was not happening. I was telling myself, but no, behaviors have changed. And the tears are because I&#8217;m realizing that I was making myself feel better by telling myself this story.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:49:23]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yes. Just to put it very bluntly, you cannot actually change by tracking 250 numbers while eating Chick-fil-A 10 minutes away from home. Those two are incompatible.\u00a0They are simply incompatible.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:49:42]\u00a0And I say that specifically because neither one of you told me that your Rich Life is eating Chick-fil-A. I\u00a0[Bleep]\u00a0know it&#8217;s not.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:49:52]\u00a0You told me that. You said, &#8220;I regret spending all this money at Target and stuff that&#8217;s not creating memories. I want to travel. I don&#8217;t feel safe.&#8221; And spending 20 bucks at Chick-fil-A, which indicates you spend way more than that over the course of a week. You told me that&#8217;s not what you want to do.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:50:10]\u00a0And yet your behavior is doing exactly that. And I appreciate that you&#8217;re acknowledging that. Sometimes we do cry when we realize the thing that we claim is important to us is not how we are living our life. I don&#8217;t mind it. That realignment is painful sometimes, but I&#8217;d rather go through the pain and then realign.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:50:30]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0100%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:50:31]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0So the question, Gabby, is how much are you spending on discretionary spending per month, clothes, eating out coffee, travel, fun stuff?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:50:47]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0You know what will give us a more realistic picture is probably looking at September.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:50:51]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. Wow. A lot of red. The number in the CSP says 838. What&#8217;s the actual number down there?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:51:01]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0$1,597 and 96 cents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:51:05]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Right there we&#8217;ve doubled what you thought you spent. And that took us five seconds. We also have not included travel. How many trips per year? One, two?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:51:17]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Typically it&#8217;s been at least one.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:51:20]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I don&#8217;t want at least. I want at most. What&#8217;s the most?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:51:23]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Three.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:51:23]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Three. And how much does each trip cost?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:51:26]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0If we are visiting family down south, probably about 2,000, including the flights. We went to Hawaii this year, and that total cost us about 6,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:51:42]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Let&#8217;s say 4,000 each. Let&#8217;s round up to 5,000 because I think sometimes there are hidden expenses that we don&#8217;t account for, like taxis and blah, blah, blah, tips, whatever. Let&#8217;s just say 5,000 times three, 15,000. That&#8217;s an extra 1,250. So we&#8217;ve just doubled it again.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:51:59]\u00a0You&#8217;re spending, what, 2,700 or something like that per month on discretionary spending. We haven&#8217;t included birthday parties. We haven&#8217;t included any one-off expenses, but we&#8217;re already at, let&#8217;s just round up and say $3,000 a month. I would bet it&#8217;s probably closer to $4,000 per month. What do you make of that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:52:27]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I would agree.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:52:29]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. And what does it tell you? Ado?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:52:33]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We don&#8217;t really know where our money&#8217;s going, even though we have a budget that says this is where our money is going. Because if you go back to on some of that budget, if you go back months, months, months, there&#8217;s never been a category where it hasn&#8217;t been zero or hasn&#8217;t been red.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:52:50]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, yeah. It&#8217;s a funny thing that people do. They track things, even though it&#8217;s red every single month. They&#8217;re failing and they&#8217;re just like, &#8220;Hey, I know what I&#8217;ll do. I&#8217;ll keep tracking this. They don&#8217;t actually change anything. They just track it. The big takeaway that you did not indicate, which I&#8217;m trying to get you to realize, is you are spending more than you make every single month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:53:12]\u00a0You&#8217;re not getting out of debt. You&#8217;re getting more into debt. So the fact that you can put it on a debit card for 20 bucks, okay, that&#8217;s great, but you&#8217;re actually getting more into debt every single month. At $838, that&#8217;s all of your money left over. That&#8217;s 838.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:53:35]\u00a0When the number&#8217;s, let&#8217;s say 3,500 or whatever, just for easy math, you&#8217;re broke. You&#8217;re spending more than you make every single month. That is the meaning that I want you to understand, is that tracking won&#8217;t solve it. You actually have to substantively change your relationship with spending.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:53:57]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I don&#8217;t think I realized it, to be honest. I don&#8217;t. I think I&#8217;m blindsided by it because I&#8217;m thinking, okay, this one instance we&#8217;re spending, let&#8217;s just say 7,500 on a trip that one instance, not how much I make the rest of the year. Like, okay, 7,500 right now. I pay it off, and we&#8217;re good. I don&#8217;t think about it spreading through the entire&#8211;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:54:21]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0It is a little complicated because in the months where you spend more, you probably make more. So that&#8217;s why you&#8217;re spending flexes with your income, right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:54:32]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:54:33]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0And do you set that up, Gabby?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:54:35]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:54:36]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0So you tell them like, &#8220;Hey, this month I know you&#8217;re going to work extra hours, so we&#8217;re going to spend more on X, Y, Z.&#8221; Is that how it works?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:54:43]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. But typically it&#8217;s we&#8217;re going to pay off more on X, Y, Z, but subsequently we also spend more because there&#8217;s more money coming in.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:54:51]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0So you&#8217;re not getting ahead. The debt is racking up anyway because you&#8217;re paying some towards it, which is good, but it&#8217;s not aggressive. I could tell it&#8217;s not aggressive because you took a 5,000-dollar trip to Hawaii this year. Guys, couples who are in credit card debt do not take vacations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:10]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We&#8217;ve taken a vacation every year since we&#8217;ve been together.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:13]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I know.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:13]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0And we go for a month to Europe. Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:16]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Wait, I thought, you told me the vacations are only 3,000. How do you spend $3,000 for a month in Europe?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:21]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We spend a month because it doesn&#8217;t make sense to go any less to see my family.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:27]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How much does it cost?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:31]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a010,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:32]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I think it&#8217;s more than that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:34]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Like?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:37]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Probably 15 to 18,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:41]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right. And that happens every couple of years?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:45]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Every year except this year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:47]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Every \u200ayear except this year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:47]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0But not every year. We&#8217;ve only done it twice.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:55:49]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Do you hear that there&#8217;s a lot of, well, there&#8217;s this, but not this, but this one, this one? Do you notice that? There&#8217;s a lot of debate over the minutiae. What&#8217;s the actual takeaway of what I&#8217;m hearing right now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:04]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We don&#8217;t know our numbers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:08]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Correct. And? $15,000 every other year is still a ton of money. So when you tell me like, &#8220;Oh, we&#8217;re serious about paying off our debt.&#8221; You&#8217;re not serious. You&#8217;re not serious because it doesn&#8217;t show in your spending. Couples in this debt do not take $15,000 vacations. They just don&#8217;t. Not if they want to pay off their debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:31]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Well, we didn&#8217;t take one this year because we were trying to not do that. But I really wanted to go see my family. We just couldn&#8217;t afford it. We went to Hawaii instead, but every time we&#8217;ve taken a month off, it&#8217;s been unpaid from work because I personally can never have any time off.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:52]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0But Ado, what&#8217;s the point? What are we talking about right now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:56]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0There&#8217;s not really a point. I was just saying.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:56:59]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Does this happen a lot where you guys get in the weeds?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:02]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:05]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What&#8217;s the point that I was making? You&#8217;re spending $15,000 every other year, at least. You can&#8217;t afford it. You cannot. And you have not properly added that to your monthly spending. $15,000, that&#8217;s an extra $1,250 per month that should properly be going. So when I told you you&#8217;re probably spending an extra $1,000 a month, there you go. Right there.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:32]\u00a0You guys are spending more than you make, and you&#8217;re going into more debt. No amount of tracking stuff is going to tell you that. But a simple, just looking at the major expenses in your life and being honest about them will. What does that tell you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:48]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0And no changes had been made, really?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:50]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Agreed. Gabby?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:54]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We&#8217;re stuck in the same cycle.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:55]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yes. Can you describe the cycle to me now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:57:58]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We don&#8217;t decide we can afford something. We just do it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:58:01]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yes. We&#8217;ll figure it out later.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:58:03]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We figure it out later, every time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:58:04]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Which is always Ado. Yeah, you should ban that phrase from your household. Figure it out later. No\u00a0[Bleep]\u00a0way. We&#8217;re not figuring anything out. You should respect your time so much that you stop giving yourself homework in the future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Narration]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:58:16]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0This is exactly why I hate budgets. Gabby has been tracking every expense, spending hours, inputting every transaction into this spreadsheet, and yet she missed the only detail that matters.\u00a0They are spending more than they make. That&#8217;s it. What is the point of tracking every little thing when you miss the big picture? I&#8217;ll tell you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:58:39]\u00a0When people dive into these complex budgets, it gives them the illusion of control. They feel like because it takes so much time and there&#8217;s so many colors,\u00a0that they are being meticulous.\u00a0But in reality,\u00a0they are missing the big picture.\u00a0They are essentially wasting their time, and that is a very painful lesson for us to accept.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:58:58]\u00a0It&#8217;s like rearranging deck chairs on the Titanic. You&#8217;re busy. You feel like you&#8217;re productive, but you&#8217;re not actually being effective in addressing the real issue. The freaking ship is sinking.\u00a0This is exactly why I designed the conscious spending plan. Instead of having to track 10 million numbers and looking backwards, you can look forward and make sure that the four key numbers you track are aligned with your\u00a0Rich Life.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:20]\u00a0Now, I know a lot of you have already downloaded, maybe use the free template, but some of you might want a little bit more help. You might\u00a0want to\u00a0double check your numbers. You might\u00a0want to\u00a0know how to adapt the CSP for your specific situation. If that&#8217;s you and you want extra help, you can join my\u00a0Money\u00a0Coaching program.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[00:59:37]\u00a0It&#8217;s designed to help you break free from the cycle of debt. Stay accountable, stay in control of your money,\u00a0and yes, I promise you will still be able to spend on the things you love. Sign up for the program at iwt.com\/moneycoaching.\u00a0I think\u00a0Ado\u00a0and Gabby are finally starting to see the issues here and that maybe they themselves are the reason for this debt. Now, to really understand why they behave the way they do, we have to go back to where they first learned their original money messages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Interview]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:06]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Gabby, what do you remember about money when you were growing up? What&#8217;d your family say about it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:11]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Um&#8211;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:16]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s quite a sigh.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:17]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I remember being told we don&#8217;t have it. But then there were also times that we could go somewhere, we can go to a store, and I would get any and everything I asked for.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:29]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. What kind of store are we talking about?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:32]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Normally clothing store. Or even if we went to Walmart at the time and I wanted a toy or something like that, I&#8217;d get it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:39]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:00:40]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0But there were other money messages as well. I was in college&#8211; this is an example. I was in college. My mom had remarried and her and her husband was not the best relationship. There was a lot of secrecy around money. Once I was visiting from college, and we were driving in the car, and I think I asked. I&#8217;m like, &#8220;Hey, could I have 100 bucks?&#8221; Just like a kid asking her parents for extra money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:01:10]\u00a0And my stepdad turned to me. He was like, &#8220;What are you doing with the $200 your mom gives you every month?&#8221; And I was like, &#8220;What $200?&#8221; And he was like, &#8220;Your mom sends you $200 every single month.&#8221; I said, &#8220;No, she doesn&#8217;t.&#8221; And then my mom gets mad at me because I was honest, and I was genuinely confused about what money&#8211; what is this?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:01:34]\u00a0I worked three jobs. I&#8217;m a full-time student. I would love an extra $200 a month. But she had been lying to him and saying that she had been sending me money. I don&#8217;t know what she did with the money. There was also times that they would get into an argument and I would go with her because she would not want to go alone. And depending on who got to the bank account first, they would pull all the checking and all the savings out.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:00]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What would they do with it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:02]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Keep it, put into a personal account. If they&#8217;d get in an argument, the way in which they would get a one-up on one another is whoever could get to the money first.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:11]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Wow. Is money a weapon?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:14]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I feel like it was used as one when I was younger. Absolutely.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:17]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Gabby, that&#8217;s a really chaotic way to grow up with money. It&#8217;s a lot of mixed messages. Back from when you&#8217;re a little kid, we don&#8217;t have money. Suddenly you can go buy whatever you want at Walmart or the clothing store. I&#8217;m willing to bet your family did not educate you as to the difference. Why are you able to buy it today versus why can we not afford these things another day? Right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:42]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Mm-hmm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:43]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Did they tell you any of that stuff?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:45]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:47]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0No.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:48]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I had to beg my mom to even do my FAFSA, because she didn&#8217;t want to give her Social Security number because she felt like someone was going to steal her identity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:02:56]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0This really drives me crazy. It really drives me crazy. I have to tell you on a personal level, there are kids who want to do well. They want to go to college they want financial aid. It&#8217;s confusing to fill out a FAFSA and figure out all this\u00a0[Bleep]\u00a0when you&#8217;re like 16, 17 years old. And then to have parents who should presumably be the ones helping to lead the way, helping to guide their kids, and they&#8217;re actually a roadblock.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:03:24]\u00a0It&#8217;s very infuriating. I&#8217;m sorry you had to go through that. I will say, the story you told me about using money as a weapon, about who can rush to the bank first and withdraw that&#8211; that is a very vivid&#8211; I can see fire when I think about that. But Gabby, I wonder if you&#8217;re not using money as a weapon against your future self. Think about it. If I told you, &#8220;Gabby, I want you to figure out a way to as quickly and efficiently as possible, destroy your own financial future,&#8221; how would you do it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:04:00]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Continue on the path that I&#8217;m on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:04:02]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, you would rack up a ton of debt on discretionary stuff. You would not pay attention to the critical levers in your finances. You would actually spend time focusing on stuff that is meaningless. You wouldn&#8217;t talk about money with your partner. And you would spend on a bunch of stuff and then rationalize it for later. Is that not what we have today?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:04:21]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s exactly what we have today.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:04:23]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s using money as a weapon, but not against Ado.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:04:26]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Against myself.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:04:28]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Against both of your futures. I don&#8217;t think you two should be the enemy of yourselves. Why not be your greatest friend? I love myself. I love my future self even more. I&#8217;m going to put some money aside for that person so that their life can be easier. That&#8217;s the way I might think about it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:04:49]\u00a0Ado, what about you? What do you remember your family talking about when it came to money as you were a kid?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:04:54]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Save, save, save, save, save, save more. Never get into debt. Pay things in cash. My parents never had any debt except a condo. Before we took out the HELOC was at $95,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:05:09]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Where did you grow up?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:05:10]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I grew up here. I came here as a refugee when I was seven.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:05:13]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0You came here as a refugee when you were seven. How did that inform your relationship with money or your family&#8217;s relationship?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:05:21]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We had all the essentials, I will say. My dad was a lot more frugal than my mom. I think that&#8217;s because of his mom. My mom was always, well, if we can pay for it in cash, that&#8217;s fine. You can have it. My mom, especially about food, never said no. Even if it was fast food or whenever, she would never say no.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:05:44]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Why?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:05:45]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0So after the war, we lived in a refugee camp for a little bit. And I didn&#8217;t know these stories until later because I never felt like we didn&#8217;t have anything. My mom always made it happen for us. My dad was a commander in the army, so he had an income. But there&#8217;s been times where we didn&#8217;t have a lot to eat, and I didn&#8217;t know those things because I was a kid.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:06:08]\u00a0But growing up, when I&#8217;ve asked her like, &#8220;Hey, tell me about this time in my life. What happened?&#8221; She would tell me. So now I know that there&#8217;s been times where we had food, but it wasn&#8217;t a lot. So my parents, because of that reason, they were always frugal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:06:26]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Are your parents both still alive?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:06:29]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, they moved back three or four years ago to Bosnia. They&#8217;ve since built the house. They built the house in 2004.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:06:37]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What messages do you think you learned from your family about money that you have brought into this relationship with Gabby?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:06:47]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I did everything the complete opposite of my parents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:06:53]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. Why is that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:06:54]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I think I remember this one specific moment. I was eight or nine. And I really wanted something in the store. It wasn&#8217;t even expensive. I was just wanted something. And my dad would like, &#8220;How much is it? How much is it? How much is it?&#8221; And I&#8217;m like, &#8220;It doesn&#8217;t really matter. I just want it. Can I just have this one thing?&#8221; And he&#8217;d be like, &#8220;How much is it? We don&#8217;t need it. It&#8217;s too expensive.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:07:17]\u00a0And it would be like, not anything that I would consider expensive or my mom would consider expensive. But my dad, like I said, he was the more frugal one. And I think I understand his point of view in terms of like, they always had&#8211; because they never learned fully like to speak English, so they always had to work very difficult jobs for very low money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:07:36]\u00a0And so they couldn&#8217;t afford big, frivolous things. They just couldn&#8217;t. Their motivation and goal was to go back home. And so they spent their money on building a new house. And so my thing now, it&#8217;s like, oh, if I want it, I am going to get it because I&#8217;ve been told no so many times. I don&#8217;t want to tell myself no.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:08:02]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I&#8217;ve been told no so many times. I don&#8217;t want to tell myself no. If I can&#8217;t afford it, I&#8217;ll just work more. And I want to go home. I don&#8217;t want to be here. It doesn&#8217;t feel safe. I want to have enough money to go back home. Doesn&#8217;t it all sound very familiar?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:08:24]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:08:26]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0But if you become the person who cannot spend money on things, like if I had a magic wand and I said, &#8220;Ado, you cannot go on vacation and eat out anymore.&#8221; Who would you become?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:08:39]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Probably my parents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:08:40]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Your dad, the one who worked hard, who always said, &#8220;How much does it cost?&#8221; Who wanted to go back. The difference between you and your dad, there&#8217;s many, but one of them is you earn a lot more money, a lot. But you&#8217;re not effectively using it in the way that they did. I don&#8217;t know what they made, but I&#8217;m sure it was not nearly as much as you, and yet they had enough to get a condo and move back and build a house. That&#8217;s pretty impressive. Right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:09:05]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Narration]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:09:06]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I just\u00a0want to\u00a0jump in quickly because hearing\u00a0Ado&#8217;s experience as a Bosnian refugee totally changes my perspective on their situation.\u00a0You probably don&#8217;t know this, but my dad was a refugee as well. In 1947, there was something called Partition, and India and Pakistan were separated by basically some guys sitting in a conference room.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:09:24]\u00a0Overnight,\u00a0tens of millions of people were displaced. There were people who had been living in houses for generations, and suddenly neighbors turned against neighbors,\u00a0and people fled. My dad himself had to flee in the back of a truck. He had to disguise himself as a girl so he would not be killed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:09:43]\u00a0And my grandfather stayed as a political prisoner in Pakistan until he finally rejoined his family in India. I hope that you knowing a little bit about my family history informs how I show up when I talk about money and politics and luck.\u00a0Do you understand that by pure virtue of luck, I ended up being born in America?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:10:06]\u00a0And if I was not born in America and I was not born to two educated parents, it&#8217;s probably very likely you would not be watching this or listening to this right now. That is why it is so important for me when I talk about money to incorporate all the different elements, not just a freaking budget.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:10:21]\u00a0In this case, safety is something that you and I take for granted, but it can vanish overnight. I know that from my own family history.\u00a0Ado\u00a0knows it as well. He grew up learning the world outside was not safe. Gabby actually told my producer, she&#8217;s a survivor of Hurricane Katrina.\u00a0She and her family had to evacuate New Orleans.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:10:39]\u00a0So all of this helps me to understand why they behave the way they do with money. I want you to understand that because there&#8217;s so many people in the comments of this podcast who just point at people and say,\u00a0&#8220;Stop doing that.\u00a0So stupid. How could you do that?&#8221;\u00a0I&#8217;m trying to show you how complex human nature really is.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:10:58]\u00a0It&#8217;s easy for you to point at someone and just say,\u00a0&#8220;That&#8217;s dumb. Why don&#8217;t you stop doing that?&#8221;\u00a0But if you gave me 10 minutes with your own money or fitness or parenting, or the way you live, hell show me your bathroom,\u00a0and it would be very easy to point the finger right back.\u00a0I don&#8217;t want that. I actually want us to go deeper and to try to understand why we do the things the way we do.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:11:20]\u00a0With Gabby,\u00a0she&#8217;s probably looking for control.\u00a0Ado\u00a0is probably trying to find a place where he can finally feel safe.\u00a0This doesn&#8217;t justify behavior, but it does help us understand it.\u00a0Let&#8217;s keep going.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Interview]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:11:32]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Do you have confidence that you can pay off your debt?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:11:37]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:11:39]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Ado?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:11:41]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:11:42]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. Why?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:11:45]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Because I work a lot. We just paid 6,500 of credit card debt in the last two weeks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:11:54]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay, let me ask it another way. Do you have confidence that you can pay off your debt and keep it paid off?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:11:58]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I personally don&#8217;t have the confidence right this moment, but I&#8217;m hoping that we get there.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:12:03]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Gabby?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:12:05]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I do. I feel like we know what we want, but we need to envision the future that will get us there, or else we&#8217;re going to keep doing the same thing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:12:18]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0So envision it. Let&#8217;s hear it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:12:20]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I want to get out of debt, and I want to stay out of debt. We both have careers that afford us a pretty nice income. And instead of having all of our disposable extra income go toward debt payment, I would like a mix of that. I would like to mix and put some in savings because we definitely need savings because the house is a little bit on fire right now.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:12:43]\u00a0I want some to go to toward investments for our future. And then I want to be able to spend it right now and continue to go on a vacation once a year instead of all that extra money going towards debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:12:58]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What&#8217;s different about that than what you&#8217;re doing right now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:13:02]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0The motivation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:13:05]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Which is?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:13:06]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0So my motivation is to get out of the country. This is my personal vision of why I want to get to that, why I want to fix this issue to get to that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:13:17]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I understand the motivation is different. Now I&#8217;m talking about the vision of specifically how you get there. So Gabby said, I don&#8217;t want to only pay off money towards the debt. I want to have some be able to take a vacation once a year and to be able to save some. How is that different than what you&#8217;re doing right now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:13:34]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0It&#8217;s not. It&#8217;s just the motivation&#8217;s different to do it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:13:40]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0And this time around, we don&#8217;t have anything to save us. And what I mean by that is before we had the life insurance plan, or we did a debt consolidation loan or another debt consolidation loan, or a HELOC, or borrowing money from family. This is the first time that we are consistently paying the debt off. We are doing it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:14:03]\u00a0I&#8217;m not trying to take out more debt in order to pay this lump sum to now have money on the credit card so that we can pay off. And it feels different this time. It feels like we are doing this. We are paying it off.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:14:18]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I&#8217;ve had times in my life where I had to make a big change, big. And if someone had asked me, &#8220;Do you have the confidence that you could make this change?&#8221; I would&#8217;ve said yes. But if they could see through me like Superman, or they could see me telling the truth, I think deep down in a deep place that even I wouldn&#8217;t have been able to admit, I didn&#8217;t have the confidence.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:14:49]\u00a0And if someone had pointedly asked me, &#8220;Why do you have the confidence?&#8221; I would&#8217;ve said, &#8220;Blah, blah, blah, blah. I can make a change. Blah, blah, blah, blah, blah.&#8221; But I wish they had simply said, &#8220;I&#8217;m confused how you have the confidence to make this change because you&#8217;ve never been successful at it in your life.&#8221; It really would&#8217;ve shaken me out of it, and it would&#8217;ve made me ask myself, why do I have this confidence?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:15:12]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Not unless you had changed something about what you were doing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:15:15]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Hmm. What do you think it would take?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:15:20]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I think it&#8217;s hard because my income is so not flexible, but in a sense it&#8217;s flexible.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:15:29]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0There&#8217;s a bunch of solutions to having irregular income. One, we can pick a conservative number as you did with the CSP, and then we can make a rule for what to do with any unexpected income. That&#8217;s one way to do it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:15:41]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:15:42]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Another way to do it is you just become more consistent. You literally say, &#8220;This is how much I&#8217;m going to work, and I&#8217;m not going to deviate from it because I know from calculations that if I work this many hours, we are going to be in an okay financial situation.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:15:58]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:16:00]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0There&#8217;s lots of ways to do it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:16:01]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Sounds great.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:16:03]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay, that&#8217;s one. What else do you think needs to happen?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:16:05]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I need to change on how I think about my relationship with money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:16:10]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I think what he may be trying to get you to see is what behaviors are you going to change?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:16:19]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:16:19]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0So instead of rarely denying ourselves anything, we&#8217;re going to need to change that. We&#8217;re going to have to start in denying ourselves quite a bit together as a team so that we can reach the goals. But to deny ourselves, we really need to remember and have a solid foundation of why we&#8217;re doing what we&#8217;re doing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:16:45]\u00a0Because I feel like for a really long time we thought we knew. We were telling ourselves why, and that we felt confident in what we were doing. But I think we&#8217;re just telling ourselves a story, and I feel like we&#8217;re both realizing that now.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:16:59]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What was the story you were telling yourselves, Ado?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:17:03]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0That we have changed. That we have paid on this debt. We&#8217;re not going to get into debt again and then we got into debt again.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:17:11]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0And what was the reality?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:17:13]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0That we got into debt again.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:17:15]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0And how did you get into debt?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:17:17]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0By not denying ourselves.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:17:19]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, so I&#8217;m going to offer a little bit of a different way to look at this, because the two of you told me that you never say no. If we start spending 20 minutes talking about denying yourselves, you guys are going to nod your head politely, and then we&#8217;re going to end this call, and you&#8217;re going to be like, &#8220;[Bleep]\u00a0that guy.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:17:39]\u00a0It is very difficult to go from eating Chick-fil-A this morning to being like, &#8220;Okay, now we&#8217;re going to deny ourselves everything.&#8221; You know why? Because people don&#8217;t want to deny themselves. So we have to think of it a different way, and then we have to build a plan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:17:56]\u00a0When I decide that I am 10 minutes from home and I&#8217;m going to drive home, instead of stopping to eat whatever type of food, I am not denying myself. I am choosing to eat amazing food that I have at home in the fridge. When I don&#8217;t go on a vacation, I&#8217;m not denying myself from that vacation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:18:23]\u00a0I&#8217;m actually choosing to have an even better and more amazing vacation next year. The way that you will sustain your changes is to give yourself a bigger, more powerful vision that you are working towards. Denial lasts about a week, but a powerful vision can last a lifetime. Shall we take a look at the numbers again and come up with a real plan?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:18:52]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yes, please.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:18:55]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Our goal is to get our numbers in the conscious spending plan down to a more rational, goal-focused set of numbers. What would you say is the primary financial goal in your relationship right now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:19:13]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I would say a combination of saving, emergency fund, and debt payoff.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:19:18]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. Ado, what about you?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:19:21]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Debt payoff.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:19:22]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. Let&#8217;s take a look. Your fixed costs are high in. I want to highlight a couple of things. Your mortgage is quite low, $1,355. It&#8217;s great. I have no comments about that. Stay there. Don&#8217;t move for a long time. Your car payment total with gas and everything is 650. Great. No comments on that. Your groceries are 1,000. Is that accurate?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:19:54]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I don&#8217;t think it is.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:19:55]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Oh-oh. It&#8217;s going be higher.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:19:57]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I think it might be higher. I think realistically that number is maybe 1,200.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:20:04]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right. We&#8217;re at 85% fixed cost. Phone is 277. Can we cut that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:20:09]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yes. So we actually talked about switching over to Mint Mobile.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:20:13]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay, great. What is that going to be like? Let&#8217;s call it 100 bucks. All right. We&#8217;re down to 83%. Childcare is $1,760 per month. All right. And that&#8217;s the going rate. It&#8217;s not going to change for the foreseeable future, right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:20:26]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:20:27]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right. So we&#8217;ll leave it there. You&#8217;re saving $1,000 a month for the emergency fund. Okay, fine. Guilt-free spending, it&#8217;s time to actually create a real number as for what you are allowed to spend on for guilt-free spending. So you spend $850 a month right now, which is 8%. If you just blank slate, what do you think is worth spending money on every single month for non-essential spending?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:02]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I can&#8217;t really think of anything.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:08]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0The one thing that I think of would be paying a babysitter for a date night once a month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:14]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Great. How much?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:17]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0About 140.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:18]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0140. All right. Fine. What else?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:23]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0For me with working so much, I would want a self-care moment of sorts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:29]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What is it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:30]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0A massage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:31]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How much?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:33]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0170.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:34]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0170. Is that per month?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:37]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Per month. Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:37]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Great. What else? You guys are going cold Turkey on eating out? You&#8217;re never eating out again? The last thing that touch your lips was chicken nuggets? Is that how it&#8217;s going to be?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:21:52]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I would say that a part of me wants to just make our date night be our one time eating out. And instead of going for fast food, let&#8217;s have this date night be a nice dinner.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:05]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Great. How much does it cost?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:07]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I would say 150 for dinner is more than enough.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:11]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0It&#8217;s way too much. You all cannot afford that [Bleep]. [Inaudible].<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:14]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Okay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:14]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We just spent 170 on a dinner.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:19]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Where&#8217;d you go?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:21]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Clybourn. It&#8217;s this Thai place that we like to go to.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:25]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Wait, what do you get for 170 at a Thai restaurant?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:32]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We&#8217;re about to get judged.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:34]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Wait, hold on, hold on. You think you&#8217;re going to get judged more for eating at a Thai restaurant than Chick-fil-A? You&#8217;re on the wrong show. Tell me what you got at this Thai restaurant. I&#8217;m into it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:42]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Pork skewers, chicken wings. I got Pad Thai. She got this fried rice drink. We got two mocktails. We got a lot of appetizers and a main course and two mocktails.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:22:56]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0So can I ask y&#8217;all, this is a very important moment. You told me you want to be debt-free. Ado, you told me that for safety reasons, you want to be able to move out of here. Take that, all of that stuff, and tell me how can you reconcile that with eating out at that Thai restaurant for roughly $170?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:23:20]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Truthfully, it&#8217;s because it&#8217;s like a reward. I&#8217;ve been working so much. We don&#8217;t really get a lot of time to spend with each other. We could have this time to spend with each other, and it went.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:23:38]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Watch what I&#8217;m doing with my hand. I&#8217;m a banana, and I&#8217;m unpeeling that layer from myself, throwing that\u00a0[Bleep]\u00a0away. That story about we are rewarding ourselves with $170 is just a story. What are some other ways to reward yourself?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:23:58]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s not spending money?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:24:01]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I don&#8217;t know. You tell me.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:24:03]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I don&#8217;t have one. That&#8217;s how I always rewarded myself. I treat myself.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:24:09]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. No money. You&#8217;re going to reward yourself. What are you going to do?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:24:13]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I don&#8217;t have anything.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:24:15]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How do other people do it?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:24:18]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I don&#8217;t know.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:24:20]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Think about it. Don&#8217;t let yourself off that easy, Ado. How do other people who are not going to spend money but still want to enjoy life&#8211; what do they do?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:24:31]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I really don&#8217;t know. I don&#8217;t, I don&#8217;t. I am surrounded by people that do that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:24:38]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0[Bleep]\u00a0them. That&#8217;s the kind of attitude you need to have. I&#8217;m, of course, exaggerating. I mean nothing against them, but they are not you. And the reason that you are doing that, you simply have absorbed the social norms of them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:24:53]\u00a0I need you to find other people and other norms to adopt because you can&#8217;t do that with the debt you&#8217;ve put yourself into. So I need you to get creative with me. Surely you can think about what somebody in America does to enjoy themselves without spending money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:09]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I don&#8217;t know. Play a sport that they like.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:12]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Great.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:13]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I like shooting hoops.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:14]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Love it. That&#8217;s one. What else? Go for a walk.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:20]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0The weather is getting nice out. We used to love going on picnics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:23]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Love it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:25]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:25]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What else?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:28]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I bought this 900-dollar bike when I thought I was going to do a triathlon, and I haven&#8217;t ridden it since.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:36]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Can we sell that thing?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:38]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I was going to say I was going to go&#8211;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:40]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0No. I&#8217;d rather have the money. Go for a walk.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:43]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Damn. All right.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:45]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How much would you get for that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:48]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Probably the amount I bought it for.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:50]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What else do you guys have in your garage, et cetera, that can be sold?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:25:54]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We actually went through a selling spree already and got rid of, and sold a lot, including old baby clothes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:26:00]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. All right. What&#8217;d you do with the money?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:26:03]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Put it in our savings account, I&#8217;m pretty sure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:26:05]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0The $1,000?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:26:07]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. We were like a lot of people that we were using our savings account as a checking account for a really long time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:26:13]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Don&#8217;t do that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:26:14]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I know.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:26:14]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right. Sell the bike. Put the $900 towards the debt. It&#8217;ll do good for you. Ado, you and Gabby both need to come up with some specific ideas of what you&#8217;re going to do to reward yourself. The way that you are living right now, your relationship with money is I grind myself into almost dust at work, and then in order to rejuvenate, I need to spend a ton of money. Can&#8217;t do it. Going to have to find a different way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:26:43]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We&#8217;ve always done that, and we literally tell each other like, &#8220;Okay, I just worked a lot. All right, Gabby. We&#8217;re going to go out for dinner.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:26:49]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, that&#8217;s the old&#8211; peel the\u00a0[Bleep]&#8211; it&#8217;s gone. You can&#8217;t do that anymore. So you will have to find a new way to relate to work and to money. If it were me, what I would say is, &#8220;Hey, Gabby, you and I need to come up with a vision of what we are going to do with our work and with our money. My vision is I want to be able to pay off the debt and be able to move within seven years. I don&#8217;t know. We got to run the numbers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:27:19]\u00a0&#8220;In order to do that, that means I&#8217;m going to have to work a lot more. In order to work a lot more, here&#8217;s what I need. I need to have one massage per month because this is really hard on my body. I would love to go out for a date night, once a month, and I would like to have a modest dinner, but something that we can enjoy together on that day. But other than that, we need to plan our meals because I need to be able to take food to work. I can&#8217;t be eating out at work anymore.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:27:46]\u00a0Gabby might say, &#8220;I love that, and I want us to meal prep together. I can do it on this date. You can do it on this date. Let&#8217;s coordinate our schedules. Ado, since you can earn a lot of money with the overtime stuff, let me figure out what I can do to support as well.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:28:05]\u00a0&#8220;And let&#8217;s also talk about how we can spend time with our daughter in the time we have. It&#8217;s going to be very difficult for us for the next few years, but if our goal is to get this debt paid off, we&#8217;re going to have to change everything about our relationship with money.&#8221; What do you think?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:28:24]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Let&#8217;s go.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:28:25]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:28:27]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How much you want to spend on your dinners out for date night?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:28:30]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Let&#8217;s do 60.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:28:32]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0So right there, that&#8217;s $370. What about vacations?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:28:39]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0We are not going on any vacations until our debt is paid off.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:28:42]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Love it. Fantastic. That&#8217;s what I&#8217;m talking about. Okay. If you had to guess how long it will take you to pay off your credit card debt, how long would you guess?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:28:59]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Maybe eight months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:29:01]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay. Ado, what do you say?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:29:05]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0About eight months, yeah, with the way where he started paying off this debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:29:09]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:29:09]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0So let&#8217;s keep in mind that we&#8217;re specifically talking about the credit card debt, which is roughly $44,000. In addition to that, you have 91,000 plus 26,000 plus 23,000 plus 17,000 plus 12,000 plus 5,000 plus 166,000. That&#8217;s all separate. I don&#8217;t expect you to pay that off in a matter of months. But the credit card debt is just overwhelming.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:29:43]\u00a0Your current strategy for your credit card debt will take you 17 months to pay it off. In those 17 months, you will pay almost $10,000 in interest alone. But it took you a long time to accumulate it. You&#8217;ve had some bad financial habits, bad financial mindsets, and the two of you have not been holding each other accountable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:30:08]\u00a0You&#8217;ve actually been doing the opposite. So it&#8217;s going to take some time. I do have some suggestions though, because if you increase your payments by $1,500 per month, that cuts the payment down from 17 months to 11 months. If you were to increase it by 2,500, that cuts the payments from 17 months initially to nine months. So you have options<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:30:40]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0My instant thought is I want to pay it off in nine months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:30:45]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0You want to get super aggressive?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:30:47]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:30:49]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Let me just check on this. How much can you contribute extra, Ado, on top of your $6,600 a month net income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:06]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Given that my last paycheck was almost 11,000, I&#8217;d probably add another 5,000 to that one, just being conservative.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:17]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Damn. That&#8217;s what I&#8217;m talking about. All right. So let&#8217;s say you make an extra $5,000 a month. Is that right, Ado? So you&#8217;re taking home 11k.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:28]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0That&#8217;s being conservative. So in December, last year, I made 24,000 in that month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:33]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Can you work that hard every month?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:36]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0For a while, yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:38]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0For a year?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:40]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I could work five days a week for the rest of my life if I needed to.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:44]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0How much does that mean you take home every month?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:47]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a015,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:50]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0[Bleep]\u00a0yeah. All right. I&#8217;m putting the number in. This is what I&#8217;m talking about. Am I the only one getting pumped right now?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:57]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0No.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:31:57]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right. How much did you say? What&#8217;s the number?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:32:02]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a015.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:32:03]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0$15,000. Holy\u00a0[Bleep]. Oh my God. What the\u00a0\u200a[Bleep]? The fixed cost just dropped down to 47%. I&#8217;m sorry. I&#8217;m going to get roasted so\u00a0[Bleep]\u00a0hard on this episode. I am sorry, you guys. I never met anybody who&#8217;s just like, &#8220;Hold on. I think I&#8217;ll take home $15,000 for the next year, every single month.&#8221; It&#8217;s\u00a0[Bleep]\u00a0great. I know there&#8217;s a cost to this Ado, not just financial, but I&#8217;m here to help with the finances. The fact that you can do that, we just solved a lot of problems.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:32:36]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:32:37]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0What the\u00a0[Bleep]\u00a0is going on?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:32:38]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Thank you, babe.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:32:39]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I&#8217;m just like, &#8220;Why didn&#8217;t you do this before?&#8221; That&#8217;s what everyone&#8217;s wondering.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Narration]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:32:45]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Okay,\u00a0before you roast me in the comments for this magic income solution, I really did not know about this. I had no idea.\u00a0And usually when I tell someone to make more money, it takes months, sometimes over a year to ask for a raise, start a side hustle, build a new skill. Nobody just shrugs and says,\u00a0&#8220;Okay, yeah, no problem.\u00a0I&#8217;ll make an extra $5,000 this week.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:33:04]\u00a0It&#8217;s like they found freaking $60,000 between the cushions of their couch. Now, I have only encountered a few people that can do this in my 200-plus podcast episode, so I want to acknowledge this is pretty rare. It&#8217;s very unexpected.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:33:16]\u00a0But here&#8217;s the thing.\u00a0Ado\u00a0has had the power to earn extra money every single month, and yet they are still in debt, still living this way.\u00a0Do you see the point? You could have an unlimited money faucet,\u00a0and if you have an unhealthy relationship with money, you&#8217;ll probably be in a bad financial situation regardless of how much you earn.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Interview]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:33:38]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Five shifts a week, tons of extra money. Debt will be paid off. You now have&#8211; holy&#8211; I can&#8217;t believe these numbers, is blowing my mind. Just to show you, when you add the 15,000 here to the net pay for Ado, you can see that your fixed costs drop. And you&#8217;re taking home $19,000 per month. That is\u00a0[Bleep]\u00a0awesome.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:34:08]\u00a0Guys, nobody who&#8217;s taking home $19,000 a month should have credit card debt. In no universe is that allowed? This is the stuff that matters. It&#8217;s not about tracking these minute details. It&#8217;s this strategy. You take the $9,000. You go, &#8220;All right. Look, we already know how much we need.&#8221; We need per month, $370. Holy\u00a0[Bleep]. Let&#8217;s round up to 500 just in case.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:34:32]\u00a0But of all the rest of this, what are we going to do with this money? Well, we&#8217;re going to add a ton to the debt, pay that\u00a0[Bleep]\u00a0off aggressively. But we&#8217;re also going to add a lot to our savings because we are not going to put our freaking daughter at risk by not being prepared in case one of us gets sick or in an accident or something.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:34:54]\u00a0So we&#8217;re going to go over to our long-term emergency fund. Instead of $1,000 a month, we could put $3,000 a month. We could do that so easily. We could even put more. But the point is you choose how you want to allocate it. And just out of curiosity, I&#8217;m curious, if you have roughly $9,000 per month, how would you split that payment?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:35:19]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0A 6,000 toward debt and 3,000 towards savings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:35:23]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Hell, if you get sick, you&#8217;re in trouble. We cannot let that happen. We need to build a backup plan. Guys, this is part of what I&#8217;m talking about, changing your mindset. We cannot only count on things always going perfectly. We need to have a backup plan for when, not if, but when things go bad.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:35:40]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:35:41]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0All right. If you put $6,000 a month towards the debt, meaning you add $6,000 out of the 9,000, you could pay this credit card debt off in four months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:35:54]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0I believe it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:35:54]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0It&#8217;s insane. And then you know what you could do, is you could simply take all that money, and you roll it over to the next debt. Guys, you could be debt free so fast with your income. It&#8217;s actually crazy. You could do it. You could live a incredible life. Gabby, how do you feel hearing that?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:36:15]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0When he has to work a lot, I struggle because it&#8217;s really hard solo parenting sometimes. I also work full-time, so picking up our daughter, coming home, spending quality time with her, doing dinner, doing bath, doing bedtime night after night after night of not having your partner, it&#8217;s hard.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:36:40]\u00a0And it&#8217;s not just hard because of the solo part. I love my husband so much. He is truly one of my best friends. So it&#8217;s also hard not to get that quality time together. Consciously, I understand that him working is putting us closer to our goals, but emotionally it&#8217;s still very difficult. So there&#8217;s sacrifices on both sides. He&#8217;s sacrificing time away to work. My sacrifice is solo parenting and being home alone with our daughter. But they&#8217;re both sacrifices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:37:12]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0I want to acknowledge we&#8217;ve talked a lot about Ado and your role with work in particular because you have this unique opportunity to make a huge amount of income, which in your situation is such a gift and so critical.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:37:29]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Such a privilege.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:37:30]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah. That doesn&#8217;t mean that it&#8217;s not hard for both of you to be parents. And Gabby, you&#8217;re working full-time as a nurse as well. We cannot ignore that. So I want to take a second to acknowledge that. My take on this from a financial perspective is you both have made a series of decisions that have gotten you to this place, and it&#8217;s going to be hard.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:37:53]\u00a0It can be hard for a long time, like the rest of your life. And then your daughter can pick up the torch, and it can be hard for her. Or you can both create a powerful vision where each of your roles is a partner. Because you cannot do this alone. And that&#8217;s okay. There&#8217;s no way around it. Both of you have examples from your family where things were hard. You both have a massive light at the end of the tunnel. So don&#8217;t be afraid of things being hard.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:38:26]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Thank you so much. I just wanted to be on record. Gabby, thank you so much for doing our finances for the last forever of our relationship. I&#8217;m going to take responsibility for a lot of it as well. So thank you for doing that for us, for our family.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:38:47]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Thank you for acknowledging that. I appreciate it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:38:51]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0Beautiful. Thank you both. This was such a treat to be able to speak to you today.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[Narration]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:38:56]\u00a0<\/span><b>Ramit:<\/b><span style=\"font-weight: 400;\">\u00a0There&#8217;s a phrase we hear in the self-development world, choose your hard.\u00a0Things that are worthwhile are hard. Training for a triathlon is hard. Becoming a doctor is hard. Building a successful business is hard.\u00a0But living with $50,000 of debt is also hard. No matter which path\u00a0Ado\u00a0and Gabby choose, it&#8217;s\u00a0going to\u00a0be hard.\u00a0But they will choose.\u00a0And remember, by not making a choice, you are also choosing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:39:22]\u00a0If they want to move to Europe, if they want to build the life they dream of, if they\u00a0want to\u00a0stay debt-free, they have to make a bold choice. And it&#8217;s important to note that they can&#8217;t just depend on willpower because they&#8217;ve tried that before and failed. They need real systems,\u00a0and they need a shared vision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:39:40]\u00a0If you are listening to this and you and perhaps your partner have decided to make a massive change,\u00a0the first question you&#8217;ve\u00a0got to\u00a0ask yourself is, what&#8217;s different this time? If your answer is just, we&#8217;re\u00a0going to\u00a0try harder, you&#8217;re probably\u00a0going to\u00a0fail. If the answer is, I need to do better, that&#8217;s just words.\u00a0Look at my hands. That&#8217;s just words.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:40:01]\u00a0What you really need is a total recalibration of your relationship with money. That means systems. It means a powerful vision. It probably means you need to change the way that you spend money down to what credit card is in your wallet.\u00a0Now, I teach all of this in my\u00a0Money\u00a0Coaching program. I would love to encourage you to join iwt.com\/moneycoaching.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:40:23]\u00a0A huge thank you to\u00a0Ado\u00a0and Gabby for speaking with me and being so open today. Now let&#8217;s check out their follow-ups.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:40:29]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0I think the biggest takeaway for me was how unserious we really were about getting to our financial goals. We always just thought, oh yeah, we&#8217;re doing it.\u00a0We&#8217;re paying off debt.\u00a0But we&#8217;re not really\u00a0because\u00a0we would just get back into debt.\u00a0So just having a conversation with an outsider looking in, it just showed us how unserious we were.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:40:55]\u00a0One of the things that Ramit\u00a0mentioned was actually selling my bike, but I&#8217;m actually unfortunately not\u00a0going to\u00a0do that. Ramit, I&#8217;m sorry. I&#8217;m actually\u00a0going to\u00a0keep the bike so that I can ride it as part of my\u00a0&#8220;free activity&#8221;\u00a0that I do for myself as part of a self-care as well.\u00a0That&#8217;s probably the biggest change I&#8217;m\u00a0going to\u00a0do immediately,\u00a0is just find free or nearly free things to do to self-care or just use up time as a hobby.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:41:26]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0Something I&#8217;ve been thinking about, especially as I&#8217;m driving to work,\u00a0is during the conversation he asked us&#8211; he gave us a couple examples and asked\u00a0Ado\u00a0and I,\u00a0&#8220;Are these red flags?&#8221;\u00a0And to both\u00a0Ado\u00a0and I, no, they weren&#8217;t red flags. And I&#8217;ve been thinking about that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:41:43]\u00a0Why were they not red flags? Why are\u00a0Ado\u00a0and I so aligned in terms of just spending and somewhat living in the moment and not denying ourselves?\u00a0And one of the reasons why I think is something that we somewhat have in common,\u00a0is that we both went through a different but similar life experience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:42:05]\u00a0So\u00a0Ado\u00a0was living in a genocide.\u00a0Ended up having to go to a refugee camp, but then eventually came to the US.\u00a0And I am a Hurricane Katrina survivor. When I was\u00a0in middle school, I lived in Orleans, Louisiana, and we stayed during Hurricane Katrina,\u00a0and we were evacuated to Arizona.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:42:32]\u00a0So similar situations that we\u00a0essentially left with the clothes on our back,\u00a0and that is all.\u00a0And ended up in this state. Interesting that we&#8217;re together, having had those experiences.\u00a0But maybe not interesting at all. Maybe that&#8217;s why we connect so much. But I also think that that&#8217;s a part of the reason why we had that mentality with spending money,\u00a0of we need to just live in the moment because\u00a0when are our lives\u00a0going to\u00a0be over?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:42:59]\u00a0We both went through things that most people can&#8217;t even dare to dream of.\u00a0And I think that&#8217;s why.\u00a0So it&#8217;s been about a month since we met with him,\u00a0and it was transformative for us as a couple,\u00a0us\u00a0individually,\u00a0and for our future. So we have quite a few updates.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:43:21]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, so we paid a total of five\u00a0credit cards since right before our meeting with Ramit\u00a0and right after.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:43:28]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0With those five credit cards, that was about $9,900, and we are on track to pay off four more credit cards along with\u00a0Ado&#8217;s car loan. Our goal is by the end of the year, but if that doesn&#8217;t happen, it&#8217;ll definitely be paid off by March, 2026. Next is our emergency fund. So when we talked to Ramit, we talked about saving 3,000 per month.\u00a0So within that month,\u00a0we were able to save $3,000,\u00a0and it is our goal to continue with that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:44:00]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0We also started a sinking fund. So we have about $700 in there,\u00a0and that&#8217;s to cover things like car maintenance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:44:06]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0The next thing we did was separating\u00a0our accounts. So we had a bad habit of pulling from our emergency fund\u00a0like it\u00a0was\u00a0a checking account. So we now have Charles Schwab as our spending account so that it&#8217;s completely separate from our Discover, which we use for savings as well as for our bills.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:44:26]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0And then we decided we&#8217;re\u00a0going to\u00a0allocate $200 for self-care each month. So we&#8217;re\u00a0going to\u00a0just do massages each month.\u00a0Or if we choose something else, but it&#8217;ll be about $200 for that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:44:38]\u00a0<\/span><b>Gabby:<\/b><span style=\"font-weight: 400;\">\u00a0And the next thing has been weekly meetings,\u00a0which has been really nice because\u00a0Ado\u00a0has been bringing them up normally to me like,\u00a0&#8220;Hey, we should meet and talk.&#8221;\u00a0But every week,\u00a0it&#8217;s been him. And so that&#8217;s been really exciting.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">[01:44:51]\u00a0<\/span><b>Ado:<\/b><span style=\"font-weight: 400;\">\u00a0Yeah, I&#8217;m just trying to take away some of the burden off Gabby&#8217;s shoulders, stuff with that. So yeah, we&#8217;re pretty excited.\u00a0All right.\u00a0Bye.<\/span><\/p>\n<\/p><\/div>\n\n<p><a href=\"https:\/\/www.iwillteachyoutoberich.com\/238-ado-gabby\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\ufeff Ado (33) and Gabby (32) are exhausted by a cycle they can\u2019t seem to escape: getting into credit card debt, paying it off, and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4557],"tags":[502,291,4682,1247,4684,4681,4686,4680,4683,124,4685],"class_list":["post-327925","post","type-post","status-publish","format-standard","hentry","category-marketing","tag-america","tag-bank-cards","tag-bmw","tag-citi","tag-makarska","tag-nissan-versa","tag-nonprofit","tag-nurse-proper","tag-pad-thai","tag-switzerland","tag-web-price-field"],"_links":{"self":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts\/327925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/comments?post=327925"}],"version-history":[{"count":2,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts\/327925\/revisions"}],"predecessor-version":[{"id":327927,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts\/327925\/revisions\/327927"}],"wp:attachment":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/media?parent=327925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/categories?post=327925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/tags?post=327925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}