Ramit Sethi of I Will Teach You To Be Rich speaks with Shelby and Calvin, 31 and 43, who have a new baby and feel trapped by their financial situation. Together they earn about $102,000 a year, but they have just $3,500 in savings, more than $20,000 in debt, and $0 currently going toward savings or investments.
Shelby wants more structure and transparency, while Calvin admits that talking about money makes him uncomfortable. Their relationship has also been strained by financial secrecy, including a personal loan Shelby believed had already been paid...
Ramit Sethi of I Will Teach You To Be Rich speaks with Shelby and Calvin, 31 and 43, who have a new baby and feel trapped by their financial situation. Together they earn about $102,000 a year, but they have just $3,500 in savings, more than $20,000 in debt, and $0 currently going toward savings or investments.
Shelby wants more structure and transparency, while Calvin admits that talking about money makes him uncomfortable. Their relationship has also been strained by financial secrecy, including a personal loan Shelby believed had already been paid off.
Once their baby expenses are fully accounted for, their fixed costs rise to 89%. Ramit pushes them to stop relying on vague plans and small cuts and instead make bigger changes to how they manage money together. By the end of the conversation, they have a plan to reduce expenses, aggressively pay down debt, save automatically, and become more active financial partners.
In this episode, we uncover:
Why Calvin kept a personal loan secret
Why Shelby does not fully trust him
How they earn about $102,000 but still struggle
Why their fixed costs reach 89%
Why $0 currently goes toward savings
Why Calvin says he has been in debt his whole life
How he quietly sabotaged their money meetings
How their childhoods shaped opposite money habits
Why Shelby takes on more financial responsibility
Why cutting small expenses isn’t enough
How Calvin confronts the impact of his financial decisions
How they could pay off their debt in around 11 months
How they begin saving automatically
Whether they can follow through on the plan
Chapters
(00:00:00) Introduction
(00:03:01) Shelby discovers Calvin’s hidden debt
(00:04:55) Why Calvin kept the loan secret
(00:05:52) One layoff away from needing help
(00:08:28) Calvin wants Shelby to manage the money
(00:12:48) Shelby admits she does not fully trust Calvin
(00:21:14) Ramit reviews their financial numbers
(00:23:59) Calvin has been in debt his whole life
(00:24:42) They earn more than $102,000 a year
(00:27:36) Their fixed costs reveal the real problem
(00:35:39) Calvin admits sabotaging their money meetings
(00:38:08) Their fixed costs reach 89%
(00:44:58) How Calvin grew up around money
(00:50:10) Shelby’s childhood experience with scarcity
(00:59:05) Rebuilding financial trust
(01:03:03) Ramit rebuilds their Conscious Spending Plan
(01:09:17) Creating a bigger financial vision
(01:21:07) Redirecting spending toward debt
(01:27:38) Calvin confronts his financial decisions
(01:54:14) Shelby and Calvin’s follow-up
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