‘I’m stealing from my future’: A LA doctor and her husband make over $200K but were on the cusp of being homeless. 5 lessons you can learn from their mistakes


Share post:

‘I’m stealing from my future’: A LA doctor and her husband make over $200K but were on the cusp of being homeless. 5 lessons you can learn from their mistakes

‘I’m stealing from my future’: A LA doctor and her husband make over $200K but were on the cusp of being homeless. 5 lessons you can learn from their mistakes

Christina and her husband Jack may be high earners in Los Angeles — but thanks to their lavish spending habits, when they were booted out of their last home, they were left scrambling with no savings for a deposit or first month’s rent.

“I honestly don’t know what happened, we just decided to upgrade our lifestyle,” Christina told Ramit Sethi on his podcast, “I Will Teach You To Be Rich,” offering up examples of spending on extravagant vacations and costly furniture.

Don’t miss

Christina currently earns $136,800 a year and with Jack’s income, the couple bring in a total of $207,000. Christina’s expecting to make around $300,000 later this year when she becomes a fully licensed oncologist.

“I’m stealing from my future,” she admits. “I’m afraid that it’s going to be the same and it actually might get worse, I might have even more debt.”

Here are five things you can learn from the couple to avoid landing in a similar situation.

1. Talk to your partner about money

Despite being married for three years and having two kids together, Christina and Jack admit they’ve never really sat down and had a direct, honest conversation about their finances.

They have completely different philosophies when it comes to money habits as well — Christina, who has worked 80 hours a week for three years, tends to be more of a spender, especially when it comes to splurging on big vacations during her limited time off.

Having open conversations (that’s right, multiple talks) about your finances, spending habits and goals can help kickstart a healthier relationship with not just money, but your partner as well.

2. Pay down your credit card debt

On Sethi’s podcast, the couple says they’re deep in it with $87,500 in credit card debt — and are only able to afford the minimum payments. They both owe money on multiple cards, including store credit cards, like at the Home Depot and Best Buy.

Sethi recommends setting up an automatic payment plan, so that you never miss your monthly payments — which can be damaging for your credit score. And it’ll help you control your expenses too.

He also warns to avoid falling victim to gimmicks, like earning rewards points and introductory rates, if they’re only going to push you further into debt.

Read more: Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here’s how

3. Build an emergency fund

When their landlord informed them she was planning to sell the building, Christina and Jack didn’t know where they’d live. At the time, they were living paycheck to paycheck and so the couple didn’t have the funds for a deposit and first month’s rent on a new place, which Christina says came to around $7,000.

While her father ended up bailing them out, Sethi urged the couple to build an emergency fund to protect against similar situations down the road.

4. Save for your goals

Whether it comes down to taking a well-deserved vacation or going to a concert, make sure you’re not exceeding your earnings just to have fun.

Sethi recommends Jack and Christina start planning and setting rules for themselves, like not taking a vacation unless they can pay for it in full.

He even suggests creating a savings fund specifically for a trip to Singapore they were planning over the summer.

5. Don’t let lifestyle creep get the better of you

The couple had put thousands of dollars on their credit cards for a trip to Hawaii — and they anticipated their vacation to Singapore could cost them around $25,000.

Christina says as a doctor, she feels the pressure to spend more money, and this instinct only increases with the more she earns.

Here, Sethi advises keeping a close eye on every dollar you’re spending so you’re never at risk of spending more than you make. One of the best ways to do that is to make — and even more importantly, follow — a budget. If you’re keeping a record of how much you’re spending month-to-month, your expenses are far less likely to spiral out of control.

What to read next

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Source link

Alexandra Williams
Alexandra Williams
Alexandra Williams is a writer and editor. Angeles. She writes about politics, art, and culture for LinkDaddy News.

Recent posts

Related articles

‘Storm of the century’ washes away Russia’s Crimea bridge barriers

Barriers erected by Russia to protect the Crimean bridge from Ukrainian attacks have reportedly been washed away...

‘Life without consequences’: the fraternity bros who built a multimillion-dollar drug ring

In June of 2016, the police chief in Charleston, South Carolina, held a press conference. Eight men...

Mike Huckabee Warns House GOP Impeaching Joe Biden Could Spell ‘Political Disaster’

Former Republican Arkansas Gov. Mike Huckabee on Tuesday warned that if Republicans move to impeach President Joe...

‘Bait and switch’: Liz Cheney book tears into Mike Johnson over pro-Trump January 6 brief

In a new book, the anti-Trump Republican Liz Cheney accuses the US House speaker, Mike Johnson, of...

Kremlin, on reported Polish plan to send troops to Finnish border, says it will stoke tensions

MOSCOW (Reuters) - The Kremlin, commenting on media reports that Poland plans to send troops to Finland's...

Ex-Federal Prosecutor Thinks Trump’s Lawyers Doomed Him With Latest ‘Dumb’ Move

A former federal prosecutor argued on Tuesday that Donald Trump’s lawyers are making the wrong move by...

Ex-Bush Strategist Predicts Exactly When Donald Trump Will Be Convicted

Matthew Dowd, a Republican strategist for George W. Bush’s 2004 presidential campaign, on Tuesday predicted when former...

A mom chose an off-the-grid school for safety from COVID. No one protected her kid from the teacher

BATON ROUGE, La. (AP) — When Raynesha Cummings enrolled her three teenagers in a private school, she...