Ramit mentioned that you are consistently spending more money than you earn, even after accounting for big expenses like Christmas or other events throughout the year. This likely results in an extra $1,000 to $1,500 in expenses each month that you may not even be fully aware of.
Kenna acknowledged this observation, while Ryan expressed frustration at allowing themselves to fall into this financial situation. He described their pattern of making minimum payments on credit card debt with the plan to use home equity to eventually pay it off, only to repeat the cycle with new credit card debt. However, they both agreed on the importance of breaking this pattern by committing to financial responsibility and planning for their future.
Ryan emphasized the need to redirect their resources towards saving for retirement and enjoying some discretionary spending, rather than sinking more money into debt. By cutting out unnecessary expenses and focusing on long-term financial goals, they hope to avoid repeating past mistakes and build a more secure financial future together.
