272. "We own two houses, but can’t afford dinner out"

About this episode

Ramit Sethi of I Will Teach You To Be Rich speaks with Nicole and Drew, 39 and 40, who are expecting their first child in just two weeks. They split their time between Southern California and Maui, where they each own a home. Nicole bought her house after Drew made it clear that continuing to stay with roommates was not an option. Today, they earn $296,700 a year, own $1.25 million in assets, and have a net worth of more than $500,000. But their two homes consume over 40% of their income, and once their numbers are corrected, their fixed costs rise to 85%. Despite their high income, they feel unable to eat out, attend concerts, or enjoy the life they have worked to build. Nicole is a psychology professor who plans everything down to the dollar and worries about having enough savings. Drew is a life coach and therapist-in-training who admits that she often goes by “vibes” and trusts that things will work out. With a baby arriving and their savings falling, they must decide whether Drew can realistically double her income or whether they need to sell the Maui house. In this episode, we uncover: • Why Nicole bought a house within months of Drew’s housing non-negotiable • How they