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

- You said we cannot eat out. - Yeah. - Because of our housing. - Yeah. - We are supporting two households in two different states. It is eating into all of our ability to do anything else. - I don't want to just exist in the two houses. - Not doing anything. - Let's take a look at the numbers. - Whoa, you are essentially spending more than you make. - Yeah. - I've sensed a chill come over the room now. - We both really love our various home bases for either of us to give up that is really tough. - If you change nothing, what happens? - I don't know. - You would not be able to pay for the houses. - Right, yeah. - I just need to make more money. - Well, it would work if nothing were about to change in two weeks. - Is there something happening in two weeks? - Maybe a baby. - So like, where does the baby fit in financially speaking? Have we modeled any of that? - I make sure I'm so anxious about having enough savings. - We have to make some decisions that might feel like a little uncomfortable now, but they are a lifetime of comfort. I'm about to speak to Nicole and Drew. They're 39 and 40 years old, expecting a baby in a matter of weeks, and they both live in two different states in two different homes that they each purchased. Nicole applied to speak to me. Let me read you from her application. She wrote, "My partner basically needed me to buy a house. "It was a non-negotiable for Drew "to stay with me in a house without roommates, "so I ended up buying a place. "I'm wondering if that was a mistake." She continues on to say, "We are unable to eat out and to go to concerts "because we are putting all of our funds into houses and needs. "It consumes me and worries me so much." Now, if somebody said to me, "Hey, we intentionally are making this sacrifice "because we want to build equity and blah, blah, blah." Okay, but that's not what I'm hearing here. I'm hearing panic. I'm hearing regret. I'm hearing uncertainty, especially with a baby near-do. I wanna take a look at their numbers by pulling up their conscious spending plan. Okay, let's take a look. Assets 1.2 million investments 183,000 savings at 67,000 debt 986,000 total net worth 516,000. Now, fixed costs 77%, which is quite high, explains some of the panic that I heard in the application. Investments at 3%, that's quite low, savings at 10%, guilt-free spending at 10%. When I look at their financial situation, the word that comes to mind for me is complicated. Two houses, two different states, panic over what to do about their finances and a baby coming in a matter of weeks. I wanna get to the bottom of this. Let's begin by speaking to Nicole and Drew. Let's go back to the moment where you were filling out this application. Do you remember where you were? What was going on at that moment that called you to apply to speak to me? Yeah, we had been having a lot of conversations about our housing situation, given the fact that we are supporting two households in two different states. Housing costs are the biggest part of our, I guess, CSP. And what is the tenor of those conversations that you'd had? Tough. At times, it feels like we have slightly different goals and that's okay. Why is it tough? We both really love our various home bases for important reasons. I have family and community in Southern California and that's really important to me. And Drew has family and community that, you know, she is built in Maui and for either of us to give up that community is really tough. And it has been a conversation of, can we actually support two households with our income? I see. Yeah. Okay, let me understand your living situation now. So we have Southern California Hawaii. What's the situation with the houses? We are by coastal couple. Drew owns a 50% share of her house in Maui and it generates income through like rent. And I own the house here in Southern California. The house that you own a 50% share and is that your primary residence as well? Yes, it's kind of like a boarding house. Is the structure, it's two, three bedrooms and then two studios. Ah, yeah. Where do you live? Oh, what are the three bedrooms? Got it, okay. We'll look at the income later but is the income that it generates consistent for you? Yes. Okay. What's inconsistent is the like repairs and housing costs that I, 'cause I'm new, so I don't have, I didn't have like the numbers all laid out yet as far as what to expect. Do you make a profit? Yeah, sometimes. Okay, okay. Yeah. And then, Nicole, your house that you live in, that's your primary residence. How many bedrooms does it have? Two bedrooms, one bath. Got it, okay. When I'm not teaching, we spend our time in Maui and during that time, I rent out this Southern California home and then Drew rents out the three bedroom space when we're not in Maui. Okay, I'm very curious to look at the numbers and see how it plays out. Okay, that's cool. And the time period, like how much time are you spending in Southern California versus Maui and vice versa? It depends, it's approximately 50-50 though. Okay, like six months, six months. About, I spend a little bit, I need to spend a little bit more because I teach and I have to be on campus but Drew will come a little bit later and go a little bit earlier to prepare the house. Okay, cool. So, what do you teach? I teach psychology. Oh, cool. All right. What area of psychology? Developmental and research. Cool, very cool. All right, awesome. When is baby due? In two weeks, less than two weeks. What? Yeah. Oh my God, congratulations. It could happen right here, right now if you're lucky. That would be best episode ever. First baby. Yes. Okay, just so I understand how long have the two have you been together? Two and a half years. Yeah, two and a half years. Cool. Okay. Married, unmarried. We're on the road to our domestic partnership. Oh, cool. Okay. Great. It's just more legal hurdles. Okay, cool. Yeah. Now, I do want to ask about the housing situation for a second. Nicole, I understand that you were living with roommates. Yeah. And I think you were quite conscious of your expenses. Is that right? Extremely. Okay. And so I was a really poor grad student for a really long time and made basically no money. I covered my tuition costs like I didn't want to take on student loan debt. And so I lived with roommates and then even when I got my full time job, I was living with roommates because I was, let's see, my housing costs were like 12%. Whoa. So you were a full time professor living with roommates, yeah, I love this. Yeah. It was great. Pounder culture. Yeah, I love this. But just think of it. Who in America can, can even fathom the idea like I became a full professor. And I am choosing to live with roommates. Yeah. No, we believe, oh, I made it to this level. Now I need an SUV. I need this house. I need that vacation, et cetera. And you were like, no. No, it was amazing for me. Okay. I could save money. I could put money into retirement, things I'd been wanting to do forever. I was in my 30s when I finally got this job and it was like, oh, my God, I can finally catch up. Okay. And I could go like, I was living life so well, I could go out to eat, not worry about it. I didn't have to think about a budget because I knew I could cover it. Yes. Okay. Then in your application, you wrote the following. My partner basically needed me to buy a house. I was living with roommates when Drew and I met, I was intentional about saving money. It was a non-negotiable for Drew to stay with me in a house without roommates. So I ended up buying a place. I'm wondering if that was a mistake. Take me back to that conversation. Yeah. What happened? Basically, Drew said that if I wanted her to come and spend time with me, there could not be roommates. So it was like, okay, well, if I want to continue this relationship, I don't want to be fully long distance. That's going to have to change somehow. I did want to eventually buy a house and I had been pretty aggressively saving, like I'd been putting $4,000 into a fund to buy a house. And so it was like, okay, well, I could just move up the timeline a little bit. You know, instead of two years from now, I could just do it now. And instead of the $4,000 month going into a savings for this house, it will go into the mortgage for the house. How soon after that conversation did you buy the house? Three months. Fast, okay. Fast. Drew, what was going on in that conversation for you? Well, you know, she couldn't come to Maui full time because of her job. And so that would have been the ideal, you know, like I have a house come here. And what was going through my mind was like, I can't live with these random people. And, you know, you know, I just couldn't live like that. - Why? - I think there are circumstances where it could have been okay. If there was some private space or like a better bathroom situation, it just was, for me, I felt like I was in college and I had been living a different way for so long. I couldn't go back and live like that. Yeah. - Was that like a major disagreement for you or was it like Drew, you said this is what I need and then Nicole, you were like, okay, cool. But the house. - There was push back. And actually we had had the conversation earlier. We had had the conversation maybe six to nine months earlier and I had said, can we wait for, I think I said a year and we made it six months and she was like, I can't do this anymore. Like, it's gotta be either that or I'm just not coming for this next semester. And so I was like, okay, well, I saved for six more months. It's not the full year but it's at least half of it. We can at least start looking. We can see what's within my budget and so I started looking and we found ourselves very quickly out of housing market. - Yeah, the housing market was crazy. - How did you decide to buy versus rent? - Okay, so I know you're philosophy on buying house but and I think what is my philosophy on buying house? - That you should know your numbers and only do it if it's right for you. - Oh God. (laughing) - Yes, you are correct. - And you personally don't own a house yet and that's okay, that's right for you. And so I think at the time the decision was right for me in terms of I did run the numbers. It was within the percentage that was like, reasonable a little on the high end, you know? But it was around the like a third of my income and for being in Southern California it felt like it was okay. I was already saving the amount that I was gonna be putting towards mortgage. It felt like it was an okay decision at the time. - Great. - Yeah. - All of that sounds amazing, ideal. You ran the numbers, it was roughly within parameters. You had already been saving the amount that you would then pay for the mortgage. - Yeah. - Amazing. So you know you've proven excellence that you can do that. I wanna know about a time in the last, let's say a year, where maybe you were not on the same page with money. Maybe it caused tension for the two of you. Can you think of a time? - Yeah, but we had a, well I don't know if it became a fight but when we were talking under the tree at Nicole's parents house, I can like see it in my mind. It was just so tumultuous and I don't actually remember what was happening but I remember my internal state was like one of feeling so much agitation like you know brewing that I wanted to just hit the eject button and just be like I can't do this and I need to go on a walk. - What was the topic? - It was like actual numbers about something but I did have to like walk away like calm myself down and then be like okay I can go back and I can talk about numbers for another hour. - Nicole do you remember the topic? - Yeah we were talking about housing and school. So Drew's currently in school right now and so paying for tuition and that's been tough and then we've had some issues with actually a little bit of instability with the rentane situation in Maui and it's been pretty stressful and so we were having some really tough conversations about how to make that work. - What was your perspective like in a couple of sentences? - There needs to be enough cushion so that if things go wrong, we don't have to scramble to get just anyone. - Okay and what was your reaction to that, Drew? - Overwhelm, just like yes, like my reaction is yes to we need to have somebody, we need to have a plan, we need more of a cushion and then just some overwhelm. - I'm curious about the way you said yes. So you're like yes, yes, but also no. - Well I'm like yes and I don't know what the numbers are and I don't know how to make that happen. - Yeah. - I'm not a numbers person but I'm getting excited about numbers in life and being more grounded. - I think what actually made it more of a conflict was that I'm really numbers driven and practical and it was like okay, we're gonna need $3,000 for this and we're gonna need XYZ amount that we wanna put away into a fund just for this and how do we do that? - And what did you notice about Drew's reaction? - Yeah, it was too much detail. - That's what I remember. It was like so like the minutia of it all was so overwhelming because it was numbers almost to like the scent or something you know, it was just really intense for me and I felt really frustrated. - Are you used to avoiding numbers? - I mean sort of, I have dyscalculia but you know, that's one thing that might contribute to it and I do feel like I go by vibes and I can like feel the about of something you know, like around about like I'm good with a generalized, like it could be a five to 15 and I'm good. - Okay, okay. - There's no need to figure out if it's $8.95 like it's too much. - Got it, got it. And by your smile I'm taking you treat money differently. - Yes. How do you do it? - I wouldn't say that I am needing everything to be down to the scent but I like to know to the dollar for relative things and then I will, like I'm the one with this spreadsheet and so I look at our 12 month average or I'll look at a six month average for things. - Drew, what do you do for living? - I am a life coach and I'm in grad school right now in my last year to get my therapist license. - Ah, yeah. - Okay, interesting. - I have been on a mission since I left Taiwan where I lived my whole adult life and since moving to the States, I've had to really like ground in to reality a little bit. I'm very much a dreamer and I've needed to start looking at finances and looking at numbers and think about insurance and houses and all of these things that I never really had to consider before. - Before, how were you able to not look at those things? - Oh, just in Taiwan, I was, it's just not such a big thing. I'm not, the rent was minimal and I didn't have a car. I didn't have, you know, health insurance is, it's everybody has health insurance, you know, it's not something you have to like get through an employer. So it's just a really different way of living. So coming back to the States for me or coming to the States as an adult, I felt really destabilized. I felt really behind. I felt there's just a big opportunity to like step into this and yeah. - I'm getting a few clues that are starting to help me piece together what's happening here. We have Drew, she's a life coach. She's not particularly interested in pinning down specific numbers. Something could cost five bucks, 15 bucks, whatever. We're in the same ballpark. And then we have Nicole, who is structured about her finances. She likes to project things. She likes to calculate things. What do you think? Are these two views on money compatible? Let me know in the comments below. - There are so many similarities between personal finance and fitness. 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Whether you need help with automatic payroll tax filing, simple direct deposits, health benefits, commuter benefits, workers comp, or 401k matches, Gusto makes it simple and has solutions for nearly every budget. It also helps you save time with automated tools built right in, like offer letters, onboarding materials, all of these things so you don't have to create everything yourself from scratch. Plus, it's simple to switch, just transfer your existing data to their system and you're good to go. Try Gusto today at gusto.com/ramith and get three months free when you run your first payroll. That's three months of free payroll at gusto.com/ramith. One more time, gusto.com/ramith. Are the two of you building towards a joint vision of a future together? Have you discussed what that is? Very much so. The vision is to have more of a cushion and to retire with money, like put money in towards retirement. That's it? Wait, that's like today and 30 years from now. What about anything in between? Hold on. Nicole, I know you have a vision. Go ahead, Drew. Okay, gosh, I really haven't gone there in a little bit because I've been in the weeds. Yeah, and that feels emotional. That's okay. Put aside this vision that the two of you have talked about, what's your vision? My vision is community, my friends, my family. It's one of my favorite things ever to go somewhere, like our last one we did Joshua Tree for a week and just have a bunch of friends come and just be together, just totally relaxed. I love doing that. I'm Maui. I love hosting. I love just having friends come and just enjoying life together. I love really good food. We both love really good food and going out to amazing restaurants and trying different food. My dream, my vision for my life is that work is steady. It's fulfilling. It's pretty stress-free and I just get to enjoy my family and my community and nature in the beautiful places that we live. Got it. Okay. Tell me about the role of the baby. Where does he fit in? He came so fast. We actually thought we would have a couple more years. We were successful on our first try. That's beautiful and amazing and it's happening really fast. He fits in. He's going to join our lives. We're bringing this baby into our lives which are going to be filled with love and play and community. We're bringing him into our folds. We just want to bring him with us with whatever we want to do. Got it. Okay. Now, Nicole, I want to hear about your vision. One of the things that actually attracted me most to Drew was the fact that we have a similar vision in terms of so deeply valuing community and work-life balance and wanting to live presently, not for the future. So even though we've talked a lot about retirement, I think that's important. I think we are talking a lot about it because we do have a little bit of concern of when that will happen. But the primary thing for us is that we're not waiting until retirement to enjoy our lives. Like, my goal for me personally, because I think yours is maybe even a better percentage but my goal is to not put more than 40% of my capacity as a human into work. Okay. And I want the other 60% for myself and my community and our child and our family. I think that's really valuable. I think sometimes we spend too much of our resources and time working. And it's not to say that I don't want to work. I do and I enjoy my work, but I don't want it to take up so much of our lives. I want us to live now. Got it. Okay. That's very helpful. You mine. Let's take a look at the numbers. I want to understand what we're dealing with here. And then I think I'll have a lot more questions. What was it like putting the conscious spending plan together? It was kind of stressful. Again, probably me because it's hard to find specific numbers. I'm like, that's about this number. And that's good enough. And, you know, Nicole would encourage me to go and look and actually find the number, which was annoying and beneficial. Okay. Yeah. And what about for you, Nicole? It was, I had most of it already. And the parts I didn't have, it was just fun. I enjoyed it. Did you talk about it together? Yeah. Yeah. Okay. We did. Any insights? Yeah. I mean, it was very clear the source of our stress, which is what in a word, housing. Okay. You'll see our capital. Okay. Okay. Let's see. Nicole, can you read off the word in bold and the number next to it for this entire box, please? Okay. So assets is 1,252,000 investments, 183,764, savings, 67,269, and debt, 986,526. Total net worth? 516,000 and 507 dollars. Great. Okay. What do you think about those numbers? It's okay. Yeah. It's like pretty, pretty okay. I'm more worried about the other numbers. I think the one thing that I am concerned about is that the savings, it doesn't cover us for very long. 67,000. Okay. Yeah. Drew, what do you think about these numbers? The debt number, I know that includes mortgage, but to see it laid out is astonishing. Estonishing means what? Just shockingly high. I know it's very American and it makes sense in this context and it feels astonishing. Okay. Drew and Nicole, you both have mortgage or let's say a house worth approximately similar amounts. 644,608,000. Exactly. Okay. Investments, let's just say out of 183,000, the vast majority of that is Nichols. Would that be fair to say? Yeah. Okay. Same with savings and then debt, looking at it, Drew has a mortgage of 427. Nichol has a mortgage of 545,000. Yeah. Okay. Let's keep going down the list. This time, Drew, I would like for you to read off your gross combined monthly income please. 24,725. Okay. Great. How much did you think you made per year? I mean, I knew how much I made. This was the hard part. I didn't know how much we made. Yeah. I didn't think about it. You didn't think about it. Like, did you have a sense? I just knew it was enough. Okay. Okay. And in your application, do you recall what you wrote as your income? Oh, I do. 200K. 200K. The actual number is, can you read that number off please? 296,700. Only off by 96,000 dollars per year. No big deal. That's wild. My job. What do you think about that? That's our combined annual income. Yes. I mean, that's pretty nice. That's a nice number. So you didn't know that till now? No. No idea. Okay. Because it's not on the sheet. It doesn't normally come up in the CSP, right? No, you have to multiply it by 12. Yeah. It's really hard to price a price. That's kind of interesting, right? Yeah. What did you think? It's not unexpected. Yeah. I knew exactly how much I made, and I had a sense of how much drew makes because I know how much rental income is generated and the small amount of coaching income. So I had a sense, but I didn't know it was exactly that. I would have said probably 250, which is still pretty. So we're either 50 or 96,000 dollars more than you thought. So are we done here? No problem solved? No, don't kick us out. How can that be though? If there's a money problem and you're now making 100,000 dollars more than you thought, aren't we done? That's really cool. No. What do you tell you? Fix costs are almost all of that. Yeah. I see. Because we're still struggling every month. I see. Yeah. Do you think you made $50,000 more of the problem would be solved? No, probably not. Yeah. So I'm glad actually that we have this massive disparity that we've all confronted. And we can laugh about it because we realize 100K more than we thought. And it's still not solving problems. Yeah. So let's keep working our way down. Fix costs. What's that percentage there? 77. 77%. 77%. So that right there explains feeling stressed out about money, having disagreements under a tree about money, and on and on. That explains it right there. Yes. It tells me so much about a couple when I see that number. We'll come back and drill down on that. Let's just look at the rest of these. Your investments are at 3%. So I do want to note that you are contributing $1,200 a month to your free tax, which is great. And on top of that, 3%, which is $600 a month, it's nice, not particularly high, but when we combine them, it's fine. Savings at 10%, and then finally, guilt-free spending at 10%, is that number accurate? - It's actually really accurate. I know that you think that that's not, it's like actually really accurate. It's actually less than that. It's been a lot less than that because we've been saving up a lot of money for legal funds. - Okay. - Because of our domestic partnership and our baby and adopting and stuff like that. - How much will it cost you for legal? - 17,000. - 17,000. - Yeah, and I've paid off 12 of it. - So 17,000 in total to have the baby. - Yeah. - Is that right? - And it includes a state planning, and we've gotten very comprehensive with our paperwork for each other. - It's good to know. Because somewhere in a heterosexual relationship, you would do it like some legal planning, but some of it not. And I think a lot of people don't know what is involved with same-sex parents having kids. - It's so expensive. - It's a lot. - It's a lot. - It's really expensive. - And we did it the cheap way. - Yeah. - We have a known donor that is a very nice human being who agreed to help us. - Got it. - And so we just had to pay the legal fee to do the court documents so that all of us are protected. - Right. - But it would cost tens of thousands, maybe hundreds of thousands. - Hundreds of thousands. - Yeah. - So 17,000 is actually pretty affordable. - Yeah. - I don't think a lot of people know how much it costs to have a baby if you're in a same-sex relationship. I have a couple of friends. They had a baby through a surrogate, and it cost them over $250,000. That is shocking. And these are things that if you're in a heterosexual relationship, you may never think about. But I'm very, very grateful that on this podcast, we get to meet people from all different communities, all different parts of life, all different financial means to show you what it takes in order for them to live their rich life. So I'm thankful that I get Drew and Nicole here to share some of the numbers, even though they are quite modest in their situation for how much it will cost them to have a baby. - Can we drill down on the fixed costs? - Yeah. - All right, so here we are at 77%. I would like to take a look at what these numbers include. Whoa, all right. So your rent/morgage, all of it combined is $10,022 per month. So I see two properties here. One for 4,000, one for 6,000 per month. So right there, that's 40.5%. - Yeah, that's crazy. - What do we know about that number? What should that number be, generally speaking? - Less than a third. - Yeah, less than a third. We say less than 28, but it can be 32, 33 and high cost of living areas with both of you living. - Right. - But at 40, what do we know? - It's really high. - It is really high. - It is really high. - It is really high. - It is really high. - It is really high. - Exactly. And in fact, I saw that in your application. You said we cannot eat out because of our housing. - Yeah. - Now, if you came here and you said look, we've decided we are not eating out for the next five years because we made a conscious decision that we want to have these properties for this reason and we've run these numbers, I would say amazing. You've done all the math, you've decided is that the case here? - No. - Okay. - I don't want to just exist in the two houses, not doing anything. - I honestly put it. - Nicely put. - Yeah. - I really like how you put that because that actually describes how so many Americans live. - Yeah. - They buy a big old house and then we got to furnish it and then we got to maintain it. And then for what? This is the American dream. - Yes. - And then we're trapped. - Then we're trapped. Okay, so you do not want that. - No. - And yet nevertheless, you are here spending 40.5%. - Yeah. - On housing. Okay, let's look at the rest. Utilities, insurance, car payments at 1125. That's two cars. - Two cars. - Okay. - Payments at 1071 a month, what's that for? - For my grad school. I, yeah. - How much is your grad school debt? - Oh, the debt I have right now is 15K. - And you're paying $1,000 a month for that? - Yes. - Is that all you're gonna incur for grad school? - No. - How much is it gonna be total? - I'm about to have another 10, like 10,200 to graduate. That's what I'm gonna need to pay by the end of May. - So 15K plus 10K, 25K. - 25. - Where's that money gonna come from? - I don't know. - Ah. - I don't know. - Okay, yeah, that's a question we actually have. - Yeah. - We need to figure out. - Okay, we'll see what we can do. Okay, I love this combination here. (laughing) I don't mind people like tweaking the labels once in a while. That's fine, but this one is great. Clothes, slash home, slash home repair and renovation. It seems like it would all be in the same mile. - Okay. - It's overalls and boots to do the real repair. - And it's $1,400 per month. - Yeah, it was really, really high this last year because Drew's house had a massive flooding incident happen. And the kitchen was built in probably the 70s and hadn't been renovated ever. - Yeah. - And so it was like, well, if we have to rip out all of the flooring, we're gonna have to rip out the cabinets. We might as well replace the cabinets because it's, they were-- - They were on water, Daniel. - How much did it cost Drew? - 10, yeah. 'Cause I think what we, yeah. - Now, let me ask you a question because I learned this on Twitter. - Okay. - People on Twitter told me that the landlord can simply pass on their costs to the tenants. And tenants are paying taxes. They're paying their landlords mortgage, all maintenance. Now, were you able to just pass on those expenses to tenants? - I sure wasn't. - Wow. You're telling me, people online don't know what they're talking about. So shocking. So you basically ate the costs. The money had to come from somewhere. - Yes. - And you can try to raise rent, but you charge based on-- - Market value. - With the market will bear. - And we actually can't raise rent in Maui right now. - Why is that? - Behind-of-fires, they put in an emergency proclamation that you can't raise. - Still? - It's still active. - Yeah. - Okay, wow. - Yeah, it's actually, there's a lot of housing-related things. And it's good because it does need to be stabilized. - Yeah, we wouldn't raise the rent anyways. - But we, what we did is, like, hired contractors the lowest cost we could and then we did a lot of the work ourselves. We laid the whole flooring ourselves. - Got it. - A lot of our own work. - That's cool. - We became a knowledgeable, pretty fast. - All right, let's look at the rest of it here. We have subscriptions are fine. And then miscellaneous, we have 15%. Did you adjust this? - We adjusted it. - Down. - Yeah. - Because you know your numbers. - Yeah. - Fine, I believe it. All right, so we're at a total of about 17,000 a month. Which, you know, is high. - Yeah. - Is it high? I don't know. $10 million a month, then no, it's not that relative. - Yeah, but it's all relative. And so what we see is 77%. - Yeah. - That part is high. - Yeah. - Okay. - I mean, I guess I want to point out that starting next year, I will be able to be making more money. Like, I just haven't been so far. - You currently make $10,450 a month. - Yes. - That's a pretty good salary. - Well, still struggling. You say maybe making more will positively affect the CSP. I think that's true. - Yeah. - It will. - Yes. - How much are you going to make just so we can take a look? - Well, if I go into a private practice, I can make whatever I need to make within the confines of like, I can make whatever I need to make. - No, no, you can't. I mean, okay, make a million dollars a month. Can you do it? - No, I don't need a million dollars. What I need to have that in 77%, be what, 50? What would be like? - 50%. - Okay. - How much do you need? - Oh, like another 12? - 12 a month. - What would you need for a month? - Hold on. Go ahead, Drew. I like hearing you talking through this. - Okay. I think I might need another 12k. - Another 12k on top of this. Let's try. So, let me just, I'm just going to, since you make, actually, now that we're looking into this, I'm like, wait a second. Wait. Do you pay any taxes? - Yeah. - Where's the taxes on this? So, here's your gross, which is like, what are you going to pay? - Wait for a while. - Your net is the same as your gross. - I pay $330 in taxes, apparently. - No, that's interesting. - I do pay taxes. I pay 4.5% on my local taxes, and then, I don't know what the government, the big government is actually. - But like, why is this number so high? - Like, what's happening here? - I don't know. Nicole didn't fix that number for me. - Let's just fix it right now. Nicole, what is the correct number here, do you know? My estimate would be like $8,000, maybe $8,000, let's say that, it could be $7,800, whatever. $8,000. Okay, I want you to watch what happens to the fixed cost number, ready? - Oh. Killer. - No, that's. - Which is happening. - So, maybe that's why I kept it at $10,000. - So, for everyone listening and not watching, first of all, get on YouTube. - Second of all, that fixed cost number jumped from 77% to 85%. Now we have a more accurate representation. So it's high. It's really high. You are essentially spending more than you make. Oh, yeah. Yes, it's tough. Every month. I've sensed a chill come over the room now, but I would rather have the honest truth here. Yeah. Oh, the numbers in the CSP are not right. I'm shocked, but actually I don't mind. I still see comments over and over saying, why does a Rameet's team pre-screen them and work with them to get their CSP? Because I don't want that. It's hard to get your numbers in a correct form. I want to see how you do it, because then I can work with you and help you untangle your assumptions. I want to help you understand where you might have taken a wrong turn. Now, there are some clear changes that I see in the CSP, but I'm not going to sit here and lecture them about all the things they should do. I need them to understand first how risky of a situation they are in. If it was just the two of them working stable jobs, making $296,000, they would be at incredible risk. But guess what? 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So you mentioned that you need to make, why don't we just double what you make and let's just see what happens. Okay, 16,000. And that number drops to 61%. 61%. So you are correct. If you doubled your income tomorrow, you're in a healthy financial position, and you'd be able to do quite a bit. I think honestly, I think it's doable. Like as soon as I graduate, I really do feel like I could make that amount. And it would just feel like so much relief. I think we could keep the two houses. Great. So that is an option. So let's put a pin in that because at least according to the numbers, that part would work. Well, it would work if nothing were about to change in two weeks. Is there something happening in two weeks? I don't know, maybe a baby. So like, where does the baby fit in financially speaking? Yeah, wow. Yeah. Have we, have we modeled any of that? A little bit. What's really great is because we will be spending the first year and a half or so of this child's life in Maui. There's a really good community that's set up there with really great community resources. So our grocery costs are actually going to go down quite a bit. Okay. We will have access to community support that will help with kind of like child care and things like that. So we're not going to have to pay for child care as long as actually in either community. We've been really intentional. Like the community here in Southern California, I have my parents that live 10 minutes away. Great. So you'll be able to have child care. Let's say at low cost, no cost, what are we talking about? For low cost. Yeah. I would say low cost. I like an occasional babysitter is the only thing I think we might do. Exactly. So that's like how many times a week? Not even once a week. Not even once a month for like 200 bucks. Yeah. Okay. That's quite nominal. Yeah. And diapers, food, that kind of stuff. What are we talking about? So food in Maui will be free. What? Why? It's just like. It's a paradise collective. Yeah. So there's an amazing birth collective out there that offers new parents and expecting parents resources. No kidding. Yeah. It's really funded. It's a government funded thing. I think don't think it government grants. There's definitely grants. I'm not sure if they're government grants, but they're grants. Yeah. And they offer it to any expecting or recent parents. No kidding. And it's a whole like you get a whole bag of groceries every week. You get access to free education classes. Yeah. Free massage. What is it for moms? Just for everybody knows. Pacific birth collective. That's so cool. It's so cool. You know, like the fact that I am like shocked and we live in the wealthiest country in the world really speaks to the fact of how misaligned we are. Yeah. The fact that like, oh, two new parents getting groceries once a week. I'm like, what? But like, isn't that something that we would be able to do or we should be able to do more broadly? It's amazing. It's sad actually that we don't have access to it here in Southern California. I've never heard of anything like it. Oh, yeah. That's really cool. And it's not just like a bag of whatever's left over from the grocery store. It's really nice. It's really nice food. It's all like for the most part locally grown. Wow. And they give you staples as well. So you can have a stock of rice and beans and canned goods and fresh vegetables. And they give you eggs and chicken. And it's really an amazing resource. It sounds like your fixed costs with baby are not going to change dramatically. Yeah, I don't. I mean, barring any like medical stuff that the baby could have. Yeah. That would be the only thing that could come up. We'll both of you continue working full-time. Yes. Yes. I mean, Nicole's on sabbatical. Yeah. So I'm lucky. The timing was, I don't know if it's miraculous, whatever it is. But I was able to be on sabbatical for the next year. So after I give birth, I'll have until the semester starts. And then I'll have our regular unpaid leave. But I have enough sick time to take off 12 weeks. Great. And so I'll take off the 12 weeks. And I'll start sabbatical. Mhm. And I'll have it paid sabbatical. It's paid sabbatical. So I'll get my full regular pay for a full year to go do research, which I can do from home. Great. And I'm really excited about that. And then my income will stay the same. Yeah, minus wherever that 10K is going to come from to finish the school. Got it. Yeah. And now going back to your income, potentially increasing, because it seems much more feasible now that I know we've talked about child care and things like that, doubling your income. Like you already make $10,000 a month. Yeah. So is doubling your income realistic? Yeah, because if I'm working as a therapist, in addition to being a coach, then I will be able to just see more clients. And yeah, and I'm going to be doing my own private practice most likely. So I get to charge what I need to charge. Got it. Yeah. And you're comfortable with that, because really you mentioned, you know, not raising rent, even if you could, et cetera, et cetera. Are you comfortable charging market rates or even higher than market rates? I am. I my vision for my work and what it has been for coaching is that I offer like high ticket prices. But then there's an there's an expectation or knowing that those people are paying for lower income people who can afford care. So I will have a sliding scale essentially where I will be able to do sessions for therapy for 30 bucks, 60 bucks, like a handful. Right. And then there will be people covering that who have the funds. Okay. So morally ethically, I think, yes. - Good, good answers, all right. My assessment on this is you have a high income, $300,000 is a high income, and potentially going up considerably. So that's great. You also have, you're in the end-viewable position of having a baby with very low increasing expenses. Like this is highly atypical, amazing. And what I always tell people is there's this golden period, seize it, enjoy it, take some of the money, put it towards investments, take some of the money, save it, take some of the money, go out and eat. In a way, I've never had a golden period with a baby, because baby costs always increased dramatically, but in your case, amazing. You're both going to continue working, you both have child care, you both have food provided. It's like, okay, amazing, so what do we want to do? I do agree that your investments are low, we can look at what it's going to turn into in the future. Savings are okay, we can talk about what that means. You currently have a few months of emergency fund. I think with a baby, you want it to be more. Especially in this economy, I'd like it to be 12 months. Exactly. We want to become a little bit more financially conservative when there are kids in the picture. So for sure, yes, good instinct. And then, what we see now is your go-free spending is down to 1%, or $273, which we know cannot be right, which is why we have a problem, you're dry. And so we have a problem right now, but a potentially bright future. How do we get from here to there? Yeah. I feel like taking this opportunity, and unfortunately having felt really squeezed and really stressed, did prompt me to want to do so much better and to know the things and to prepare. So I think that having the goal set up for what's happening and where we're going to be putting money and what we're going to be doing, especially when I can start making more income and then sticking to it. And unfortunately, I think we have to keep living really low this next year, like keep our spending super low. OK. I think that realistically, what I'm seeing is that we're probably going to have to draw down some on the savings. If we want to not be miserable all the time, and I don't think we want to be miserable all the time. And to be honest, that's a little scary to me, to know that we're going to be going in reverse. Where I'd like to be increasing our savings amounts. And I don't know if it's possible for us to increase our savings amount because the biggest place to cut from is a place we either have to sell our house or not. I just don't know where else to cut from, to be honest. So like, do we-- yeah, for the next year, do we just not cut? And do we just-- I didn't even thought about drawing from savings, even more. Well, you have to. That feels so scary. That's what you've been doing. It's exactly what we've been doing. You've already been doing. You just didn't acknowledge. I just wasn't paying attention to it. Yeah. Let's explore what the options might be. But first, I kind of want to understand what got you here. Nicole, what do you remember your family saying about money when you were young? So we didn't really talk about it a lot out loud. My upbringing was primarily by my dad's side of the family, who's Chinese. And so we don't really talk a lot about the details of anything. In fact, being here is kind of terrifying. You don't talk about what? Numbers, feelings, what? Numbers, or feelings, or anything. And if you ask for help, it should only be within family, even then, why are you needing help? It's interesting. OK. Yeah, it's pretty daunting. Being here, it's exciting as well. I think you're doing great. And I think it's a very courageous to ask for help. Yeah, I agree. I mean, as a teacher, I want my students to ask for help. Yes. So I get the philosophy and doing it yourself is always a little scary. For sure. Did he teach you about savings, investments? Saving to some extent. So when I was in high school, he actually-- and I'm so thankful for those. He had me open a credit card when I could. So I could establish credit. And he told me, you have to put something on it every month, and then you just pay it off. And every month, you can put something on it, but you have to not ever put more on it than you have to pay it off. It's good lesson. Yeah. OK. And have you ever gone into credit card debt? I have, actually. So when I was teaching adjunct, and I was in grad school, I was teaching at like five different places. Basically, you have to-- an adjunct professor makes a lot less money than a full-time professor. And so I was all over the place. And I knew that if I ever wanted to be able to teach full-time, I was going to have to make some sacrifices so that my resume is the best, because there are so many people that are wanting full-time academic jobs. And so I was going to have to do unpaid labor, basically, so that I could make myself be a good candidate. And that's what I did. So for a year, I cut the number of jobs that I worked. And I did unpaid labor at school, doing university service. I served on academic senate, things like that. Did work for my department, things that look really, really good on a resume. And you can talk about, but they don't pay you. Yeah. And so I knew at that time, and it was such a privilege that I was going to go into debt. And I didn't want to ask my dad for help. So I took on credit card debt. And I said, I'm going to get a full-time job this year. Could your dad have afforded to help you? Probably. OK. Yeah. Did you grow up middle class, wealthy-- Middle class? What about your mom? What's her role with money? Well, not much. My mom was diagnosed with cancer when I was four. And so for the next five years, she battled cancer. And she didn't do much work. Yeah. But we spent a lot of time making memories. Yeah. And so yeah, I think what I learned was like memories are important. Experiences are important more than anything. Nicole didn't mention this explicitly, but her mom passed away when she was nine years old. And you can imagine what kind of effect that has on a child. Especially as it relates to money. It's no surprise that some people who lose a parent become even more concerned with safety and security. And I think that is part of what we see here with Nicole. She likes to plan. She wants to make sure that under all scenarios, she's OK. And I think that's fine. I think safety and security are a good thing with money. We have to take this need in light of her relationship with Drew. I don't think Drew particularly feels the need for safety and security with money. I think she likes it. I think she wants to spend it on the things that are important to her. But how do we create a way for them to have a compatible view of money together? Drew, what about you? What do you remember your family saying about money when you were young? So I don't remember anything being said. Well, my parents both came out of poverty. We're from the South, Alabama, Louisiana, and came out of a lot of poverty and a lot of trauma. And they really made a life for themselves. And it's really beautiful. They-- I saw for them that money gave them experiences. And we went out to eat at restaurants like three days a week. Wow. You know, like they really want to deliver it up. And it was really-- yeah, it's really beautiful to look back on that now. So I remember when I was a teenager, my parents bought my-- both my grandmas tickets to Hawaii to go on a trip with us. And we spent a couple of weeks on all the different islands with my two grandmas. So there was this giving to family kind of idea and concept and just fun, just embracing life and really living life. How did your parents go from being in poverty to being able to eat out three times a week? They were both really smart, not that it has to do with being smart necessarily. And they just-- they worked hard. They really did just work hard. And did you say you grew up in-- was it Taiwan? I grew up in Texas for 10 years. And then I was in the Marshall Islands until I was 17. And then for college, I went to college in Alabama, where my mom all lives. Got it. So kind of all over. And that was part of their life. They were like, yeah, we can go live in the Marshall Islands. Let's go. Let's live it up. What messages about money do you think you took away from your upbringing? One that I really had to work through early on when I started working was that you have to work hard to make money. that when I saw my dad. go through that and work his whole life and to be able to retire and now, to not be in like the best shape to do the things that he wants in retirement. And then the other one was that unfortunately money can be used as a tool for manipulation. So there's a lot of like money can cause a lot of pain actually and thirdly to share money and just really like live it up as much as you can and enjoy life with the money that you do have. The second point you made about money can be a tool of manipulation. Was that something you experienced? I watched it in my family. Yeah. Would you learn from that? I learned a lot about what it means to be a woman and how women couldn't have bank accounts of their own until the 70s and how a lot of women have been stuck in situations that they shouldn't have had to have been in because there was no financial freedom. And how that's still to this day carries on with some boomers and other people. Yes. You mentioned live it up money. We've got to use it. I didn't hear any money messages about saving or investing. Were those messages you grew up with or no? I did have some messages growing up around. I remember when I started university, my dad told me never take out a loan, do whatever you can to not take out a student loan. He taught me, let's see, when I bought my first car, he said never buy a car new. Okay. Always buy a used car. They will depreciate heavily when you drive them off the lot. You have a used car or you have a new car? No, I bought my car new. You have a new car and you have a student loan. Okay. Zero for two so far. What else? I'm sorry, dad. Actually, I vaguely remember this. I think he offered myself and my siblings at some point as some of money, like a hundred fifty bucks or something. If we would read, I think it was a Dave Ramsey book. All right. And did you? Wait, Warren Buffett's the good one, right? Yes. Maybe it was Warren Buffett. That's actually pretty, that pretty much encompasses. He's the good one. He has the good one, right? He's like a family man. He lives like below his means or something. It goes to show you I probably didn't read the book. Yeah, I mean, okay. So the big takeaway is he offered us money and we still didn't do it. All right. Got it. Which is funny because you love reading. You will read almost anything. And I'll listen to this financial policy. Have you read my book? Yes. You have? I have. We read it together. Wow. That was like one of our the only guests on this podcast who have ever read my book. This is like me. Let me just soak it in for a second. It's really good to get a gold star. Yeah. What money messages do you both find that you grew up with that you are now bringing to this relationship? I think the biggest one is that while money is useful, it's also really scary. How does that show up here? I make sure I'm so anxious about having enough savings and retirement and the economy and not knowing where to put things and like what happens if the AI bubble bursts and all of a sudden everything's gone. You normally anxious in other parts of life. Yeah. I'm a more anxious person. Got it. Okay. That's helpful to know. There's something about like flippancy in a way. Not that I would say I see my family like that necessarily, but that seems to be what I've internalized. I'm not taking it too seriously. I wasn't really focused on it. I kind of always was like it'll work out. Yeah. It'll work out. I can approximate it. I get approximate it. Yeah. It doesn't. The actual numbers don't really matter. It's drip religious. Sort of, but not really. But yes, for sure. Hold on. That was a very interesting answer. What is that? Well, my dad was excommunicated from the church when I was five. Okay. So it was all around me. Even though he was excommunicated. Exactly. And then all my grandparents still went and they were highly religious. So yeah. The reason I ask is when you say a bit flippant, one thing about people who grew up religious, they often say God will provide. Oh, yeah. Oh, familiar phrase. Oh, yeah. Okay. Implication being we don't need to pay particular attention. We're doing the right thing. We're good people. We're faithful. God will provide. Yeah. Definitely not relating to the God part. But and I do. I do feel like I have a lot of privilege in the world. And that privilege also will provide sometimes. You know, it's like I I feel that I've seen it to be true. So not just God, but privilege got it. Yeah. I've heard you say literally that you just trust that it'll work out. You trust that it will happen that somehow the money will come. It's a secular version of God will provide. It is or it could be like the hippie granola. Yeah. The woo-woo version. Yeah. Life will provide. The universal. The universal. Perfect. Yes. Okay. Wow, I think you both really nailed it with the messages you bring. And when you hear each other describe those messages, does it make sense? Some of the things we see on the CSP, some of the things that you disagree about and are worried about. Totally. Yeah. It's perfect sense. I actually love it. Yeah. It's interesting to hear Drew's upbringing, living in multiple countries, very ambiguous relationship with money. And I think that can be really positive. It allows you to deal with ambiguity. Well, probably make friends really easily. But it can also make you chave at the idea of structure. But if you want to live a life where you respect money, where you're not just subsisting, but you're actually thriving, giving yourself lots of opportunity, plans are actually a good thing. It can be fun. That's what I'm hoping to show them today. I recently got a comment on my podcast asking if I really use the products that I say I do. And the answer is yes. If I tell you that I personally use and pay for a product or service, I do. That's why in so many delete me ads that I have hosted on this podcast, I tell you I pay for this myself. I do. And I have four years. I love this service. That's why I work with them. And that's why I want you to check them out too. Delete me is a subscription service that removes your personal data from the internet. We're talking about things like your full name, email, phone number, address, even your parents names, all found and removed. They've been the leading expert in personal information removal for the last 15 years. They were recently named Wirecutters number one data removal service. And I personally use and pay for delete me. And I love it. And I know you will too. You'll get 20% off all consumer plans when you go to join delete me dot com slash remit and use promo code remit at checkout. That's join delete me dot com slash remit code remit for 20% off. In the application you mentioned, you know, hey, we we struggled to go out to eat things like that. What happened? Drew went to school. Yeah. And then things happened. And then the flood happened. And it yeah, it just all there was a tipping point. And oh, and there were emergencies that happened. Basically, there was a plumbing issue at the house that we had just bought in Southern California. Oh, yeah. Which is like 35. No, it was 29, but 29,000. Yeah, I had to replace the sewer. Wow. All the way into the street. It was yeah, a disaster. If you are buying a house, make sure that you get a full inspection. And if they don't get the sewer scope through all the way, do not go forward with the sales. I don't even know what any of those words mean. But yeah, yes, get your sewer scopes checked America. Yes. Okay. Good. Good lesson. Okay. So so several maintenance items came up. Yeah, unexpected. Yes. You went back to school, which, which implies what? You it's costing more money. Yeah, it's but your finances are separate, correct? Our finances at this point are like kind of separate, but we help each other whenever we need like we share an emergency fund and things like that. In terms of legally, we're each others. We have part of attorney. So our names may not be on each other's bank accounts, but we can do whatever we want with each other's bank accounts. Got it. Okay. Yeah. Yeah. So you're legally. Yes. Combined. Yes. Got it. Okay. But I think what's been happening is my expenses through school and then the Maui House. I went through my emergency fund because of the things that came up. And then, you know, Nicole was essentially covering that from her side. Yeah. What would you have done if you were not together? I would say I probably would have reached out to some contacts. to do what? To ask for money. Oh, why don't you just reach out to them right now. I think who are these contacts? Yeah, I want to know. I'm thinking, well, I co-owned the house with a friend. We bought the house together. Okay, 50/50. 50/50. Did they cover 50% of the expenses? No, but all of the rental income comes to me. What's the split? Like, how do they get money? If we sell the house. How much do they get? 50. Well, we don't know yet. Ah. 50%. Yes. 50%. What is this? What's happening right now? What's that? It's like, it's, it's, um, I guess if, if I invest a lot more time, and if I end up investing personal money that doesn't come from the rental incomes, then I would expect to be compensated for that. What's the contract? No contract? No, just vibes. What the fuck? Like, I was like, how does a life coach sign a contract and the answer is they don't? No, you're just with God at the universe. I'm like, I trust it. Like, there's a lot of, it would seem, perhaps, it would make sense if I get a higher percent. I'm like, what does the contract say? Look, this was five years ago me. Ah. She was a different human. Okay, okay, okay. I wouldn't do it the same again. I'm about to have a heart attack right now. Everybody do your contracts. Okay. And do you talk to this person? Like, are they active? We're so close. Oh. Best friend. Okay. Got it. I need to get my game face back on. All right. So what's the vision for where you live going forward? Yeah. I think our vision is to be bicostal because Nicole's job is amazing. So really, like, taking advantage of that, while that's possible. And I actually met her. I encouraged her. I was like, do you want to just quit and move to Maui because I was living in a different world. And I'm so glad that she was like, no, we need retirement. It's really nice to have paid for health benefits. Yeah. I have a pension. Yeah. So you're planning to keep, at least live in both cities. Right. Live in both places keep our, keep working, but keep our work stress levels at 40% or lower, you know, like not spending too much energy for work and then just enjoying, like, they're both beautiful places and they offer so much and just really like enjoying our life. Okay. Cool. Um, question because babies coming at a certain point, there'll be school questions. Yeah. Have you thought that far ahead? We've had conversations. It's going to be a conversation probably for the next few years. Mm-hmm. Still. There could be like school expenses in the future, possibly, or we would do public school. These are just big conversations that need to be had. Like the bi-coastal thing, I think, is awesome for adults. Yeah. I know my wife and I are bi-coastal. And even if you have like a two-year-old, three-year-old, okay, yeah, what about five, eight, certainly like 13, yeah, my feeling about it is see where the world's at. Mm-hmm. Let's assume the world's at where it is today, meaning there's public school, private school options, et cetera, set what would you do if you had like a 13-year-old today, what would life look like? Let's have them here for school year. Here in Southern California, for the school year, and then summer. Maui, summer. Yeah. Okay. New year for the school year, I teach during the school year, so it kind of works out that I teach because for the most part of schedules will fairly align, and then summers will get to go. Okay. Maui, I like that plan. Your visions of a rich life, are they compatible with each other? I think so, yeah. Yeah. Okay. Yeah. The part about retiring at roughly 60 or so, have you put numbers behind that? I have, but it's got enough track in the last couple of years. Okay. Yeah. So, I was looking to basically max out my 403B every year, and I would have easily actually been able to retire earlier than 60, because my pension would have covered part of it, and then my 403B would have matured to a decent place, so I could have pulled 4% and been fine. But now I'm not putting nearly as much into my 403B as I used to be because of the house. Well, it's not the house as much as it's like, we're covering the renovation and the schooling costs. Although, we know that that will end. That will end, and in fact, your income will go way out. Yeah. Yeah. Exactly. So, I'm hoping it can change and shift. Yeah. So, a couple of years of pretty low investing, maybe moving my goal from 55 to 60 is reasonable. Two years in the grand scheme generally does not affect people as much as they think. I know that investing early makes a huge difference, yes, but just in general, if people take a year or two and they cut their contributions by 50, sometimes even 100%, and then they go back to where they were truthfully over the course of 30 years, it makes a little difference but not that big. We're talking about small percentage amounts. Yeah. So, I like to put everybody at ease, especially like young parents. They tend to freak out because they're like, oh my god, I have to cut my contribution right, blah, blah, blah, blah. It's okay for a year or two sometimes people have very high temporary expenses. Okay. Right. But give yourself a little bit more, maybe save a few percentage points less, invest a little bit less, feel good, but make a plan within 18 to 36 months, we are going back to this percentage and honor it and you will be effectively back on track. That feels really relieving. Yeah. Honestly. Yeah. I've had so much anxiety being in the red, I guess, is what this is for the last bit of time and it's like, how are we ever going to catch up again? Yeah. I don't like catching up. Yeah. That whole thing catching up puts you in a bad mental state. Yeah. You're a new person today. Let's live in this chapter of life. Yeah. Okay. Cool. I do want to look at the numbers. My concern is not that Nicole, you will have enough for retiring. That's not my concern at all. My concern is that the two of you do not talk about money at the same level and that has to happen. It has to. So that is what I would like for the two of you. What do you think? I would love that. That feels so good. Okay. Okay. So this is what we're going to do. In a second, I'm going to put your CSP backup on screen. I want you to build a plan where you don't need every single thing to go right in order to be okay. Yes. Classic mistake people make. They're like, okay. In order for us to live our rich life and have our numbers where they need to be, we just need to triple our income, cut our expenses, never get sick, never have any maintenance. Like, oh no, no, no. I'm like, what the ****? Yeah. Yeah. When we're in planning mode, we always plan as if life is going to be perfect. But when we live life, it's never perfect. You both know that. Yeah. How many things have broken in your house? So many things. Yeah. It's been so stressful. Yeah. Okay. Good morning, which might mean that we have to make some decisions that might feel like a little uncomfortable now, but they are a lifetime of comfort. Okay. Okay. Let's throw up the CSP on screen. Our goal is to get your fixed costs to 60%. Okay. Okay. All right. What would you like to do to get this number close to 60%? I have no idea. I mean, I'm honestly like I'm just almost like we just hold on for the ride and then starting in May of next year, I start making more money. That is one possibility. Okay. If you take that risk and everything goes well from now until then, let's just say about a year from now, then your fixed costs will come down to roughly 60% and you will have plenty of money. In fact, I'll show you what it looks like to be able to assign. Let's take a look. I'm just going to, for easy math, I'm going to double your net. You're now at 61% fixed costs. If we go all the way down, you have $8,000 per month to play with. Yeah. I mean, that's huge. Why don't we say what would you do with that $8,000 per month? Half and half. Half two. Savings and investments. Okay. What about guilt-free spending? So, yeah, we would need like a couple thousand for guilt-free. Okay. Yeah. I would say reasonably if we wanted to- Hold on. Notice what's happening here. You're about to give me your mathematical answer, correct? And isn't part of what we want to change is this dynamic? Yes. Okay. Go ahead, Drew. Yeah. I feel like, okay, let's say we're spending 22, we're investing 22, and then we're savings are 22. Okay. I like it. I like re-going. So I put 2200 for savings. Yeah. That's right. I love that. Maybe we just- whatever's left over, at the end of the month, we just put it toward a fund, like an investment fund or something. Let's put that. Remember how they- have you ever heard that phrase, pay yourself first? Yeah. Pay yourself first means we put the money in investments first. And whatever's left, we can spend it. So let's say we put the 38 in investments. Mm-hmm. You want to see what happens? Yeah. All right. I'll add it here. 38, 73. Just so you know, you're investing now 24% of gross. That's really high for a high income. That's amazing. Look what happened to your go-free spending. Right. It's at zero. Yeah. So we would have to know like what we're spending, what we want to spend every month. And then basically, yeah, invest and save the rest. Yes. That's one way to look at it. But again, I want to flip it. What I like to do is I like to say, how much do we want to save and invest every month? And whatever's left is what we get to spend. Because we pay ourselves first. So this is like a mind shift that it's almost like it's having a hard time landing in me what you're saying. You're saying, know the money that you have like, don't re-spending. So first off, know how much you take home every month. $28,000 per month. So we've got this much to distribute. Okay. Next, we know that we have some guideline numbers. Less than 60%. You're at 61. I'm fine with that. Okay. These numbers, we like to see them roughly at 10% or so. Okay. In this case, you're at 24 and 16. What does that tell you? That we have a lot. You have a lot. Yeah. And if you want to put an even finer point on it, you can actually calculate how much you will have at age 55, 60, 65. So you can tell if you need to tune that up. But that becomes very precise. What if we know how much we need by 60 and we know we have 20 years to go hard on investments, then we could just choose that number and put it aside. I like that. I like that. That's how you do it. Yeah. Exactly. That's exactly how you pay yourself first. So I will say that I'm just going to intuitively suggest this investment number probably needs to be higher than 10%, but lower than 24%. Okay. If I had to guess, we're talking about the range of like 14, 15% ballpark. Okay. So that means you have some money that you can play with and move elsewhere. Right. Where would you like to move it? You mean in the investments? No. In, oh, like, okay. You could go to savings or you could go from 24 to 15. Yeah. Yeah. I mean, that could be our guilt-free spending. I agree. So let's just for the sake of math, let's take 2200 bucks from investments and move it down here and that gives you 8% and it gives you 16%. That's great. That's pretty good. And I feel like 22 is doable. Could you do that? 2200 bucks? We could do it and I think we'd be really happy and super comfortable given the cost of living if it was three. Oh, you would like it to be higher. I like that. Okay. Yeah. I like advocating for yourself. That's great. The good news is your savings doesn't need to be saving forever. No. So you're currently saving 4,400 a month and just for easy math, 4,400. It's going to take you a while because your fix costs are high. Very high. So you're going to be doing that for a long time. Years. Fine. Because we need like 12 months of fixed cost. Yeah. You need $200,000 for 12 months. It's a lot. It's a chunk of change. But I will say this. It sounds outrageous to a lot of people listening to like $200,000 in a savings account. But when you have a family unit that is making $300,000 a year and your expenses are high, there's a lot of things moving. Then you need liquidity. You need cash. Because if something goes wrong, like a $40,000 flood, what are you going to get it put on a credit card? Right. No way. You need to have liquidity. That's what this is. So it will take you years to get there. But there you go. I'd love to see. You want to see some projections? Yeah. What you were asking for. Let me give you a couple of projections here about where you're going to be. So your pension, I believe you told us, gets you what percentage? If I retire at 60, it will be 70%. I think. Okay. So let's start with your old situation. If you change nothing, if the income does not double what happens, you will have about $1.6 million at the age of 60. Okay. What do you think about that number right off the bat? It's great if we own our homes and the housing cost is not 40% anymore. Okay. Nicely put. I agree. Drew? Yeah. It sounds like a lot to me. Okay. That I'm surprised by. Let's go deeper. Yeah. If you take 4% of that money every year, and you retire at age 65, you can safely withdraw 4%. Oh, yeah. You were just talking about this. Yeah. Oh, 4%. Okay. Yeah. The 4% rule. So that will give you per year of income $67,000. So we'd have to live on $67,000 a year. Yes. We would have to have no housing costs. Yeah. Housing would have to be paid off. Yeah. So that's one. And what else? Just consider that the two of you make $300,000 today. Yeah. Are all of our fixed costs would be probably just going to that, basically. And then we wouldn't have any guilt for you spending. Yeah. We would be struggling. I think it would be tough. Yeah. Now, there is something I want to add. The pension. So the pension at 60% would give you $102,000 per year. So that's quite a bit. On top of the $1,000. On top of the $67. Okay. So that means that per year you would have about $170,000. That's not bad. Not bad. Yeah. That's amazing. $170,000. And assume you keep both houses and pay those off. I don't know if you'll pay them off in time. We won't. No. That's a problem. Yeah. That's why we both got a 30-year. Recently. Recently. Okay. So that's in five years. Yeah. I'm putting a little bit more than I'm putting. I'm putting a little bit more. But yeah. So mine is 25 years. Okay. Still. How many years until you retire at 60? 21. 21. Okay. So there's a few years. Well, you might work extra. You might save some extra, put some extra payments. You could do it. You could play with it. Yeah. It's not perfect. But it's within the realm of policy. Yeah. It's doable. And especially if you retire, I could keep working easily, you know, from home. Can I just, can I make a point? I don't like to plan for retirement where, like, it's pretty close. Yeah. I ain't. Wait. That's not how I live my life. I live my life where if you tell me I need like a million, I want to have a plan where with my eyes closed, I come in at 1.8 million. Yeah. Because I know that something's bad's going to happen and I'm going to have to stop working for a couple of years and blah, blah, blah, blah. Yeah. Yeah. So I don't like this. And I know I'm sharing it with you because I want you to develop an intuition and a taste for when the numbers don't smell right. Yeah. Yeah. Doesn't smell right to me. Especially a couple of making 300K. You don't want to live on less and be like, "Oh, can we afford grapes?" "Sucks." Okay? So let's go to the new situation. The one in which we assume that you double your income. Yeah. Here's what we got. If you retire at age 60, you will have 3.6 million dollars. That's a lot more than the other case. Yeah. It's more than double. Yep. 40. It's like 240. 4%. Wow. That's pretty. How do you do that in your head so fast? She's so smart. That's f***ing impressive. I just took 1% and multiplied it by 4%. That's very good. Okay? Listen, like 50% of people on the show don't even know their own income. Yeah. Well, actually, including this show. Yeah. All right. Case in point. Your 4% withdrawal number would be $147,000. And then we add on pension at 60% would be $102,000 for a total amount, $250,000 per year. Which is close to what we're making now. Yeah, I think that the one thing to consider is that the house in Maui it generates income. Yes. And so even if we were retired, maybe we wouldn't rent out all of the units. So there'd be a little less landlord in work. But there could still be income there. Yeah. And I could still be working a little bit if we wanted an extra like 50k or something. It feels a lot more comfortable talking about this one, doesn't it? Yeah. It feels nice. It's like, oh yeah, like we don't have to scrimp on everything. Yeah. Okay, so what needs to happen in order for this to become a reality? I think what needs to happen is I just need to take all this information and live it essentially. Yes, I think to be more specific at least to put in a language I would use would be you've got to start modeling these things and understanding them. And that happens through engaging. It's like learning how to cook. We can hear about it all day long. The next thing we want to read a cookbook, that's a good start. But then ultimately we need to get in there. And we need to start like trying stuff because some eggs are going to break. And we're going to be like, oh ****, but it's not the end of the world. I have another egg. Let me practice. Right. That's what happens with this. When you deeply get in there and start playing with the numbers and typing on the, you know, my compound interest calculator, and you go, "Wait a second, if we put an extra hundred dollars towards this mortgage, we shave off three years." That's crazy. That's when you really get it. Yeah. Now, for the next year, we want to talk about that. Yeah. You have a baby coming, which even with all the amazing benefits you have, still introduces ambiguity. Yeah. Yeah. Uncertainty. How do you think about that in terms of finances? It's really scary. Yeah. Like, what if the job for whatever reason doesn't materialize? I mean, I don't know. Then we get what we get from Nichols. It's not sustainable and my job. Hold on. Play it out for me. Okay. Let's say that I'm going to just make up a morbid situation. Let's say you get sick. Yeah. You can't work. What happens? Oh, gosh. It's just like we wouldn't, we would be unhappy. What about the numbers? What about the money? The money would be stressed. Yeah. Would you be able to afford your expenses? Well, we're at 85 percent. Correct. So. You're basically spending more than you make right now. Yeah. You would not be able to pay for the houses while we're both. For sure. That's also an answer. Yeah. Yeah. Like on a very practical level. Yes. Run out of money. You would run out of money. And when you run out of money, what happens? We live with Nichols' parents. Right. If we run out of money. Or you find yourself back in that roommate situation. In the other rich or tenable. They're not tenable. I agree. Yeah. So all of this presupposes that you not only graduate, which I'm sure will happen, it presupposes that, but also you get a job, okay, that'll have, which doubles your income. Yeah. All of it within a year. Yeah. I don't know. To me, that's like, that's a lot all focusing on one thing happening. Yeah. That's true. It's like a single point of failure for me. Right. I don't like that. Yes. So whatever reason to slow down your education or stop for a while, go part time because you're really enjoying time with baby or whatever. Who knows? A parent got sick. Who knows? So, would you be open to considering a plan where we don't have everything has to depend on you achieving this major thing? Yes. All right. Is there such a plan possible? You tell me, what would you do? Yeah. There's no idea. What would you do? Ask for help if you're not sure. How could we possibly, I mean, we could sell a house that's like an obvious, big thing. Is it obvious? I mean, they're the biggest expenses. Should we explore what that looks like? We can. Let's just explore. Yeah. Let's put the CSP back up on screen. I have no idea what it would look like. Yeah. I don't even know if it's a good idea or not, but I would like to explore it because it's the biggest numbers. Yeah. So, which house would you sell? This is the hard part. Yeah. I mean, if we want to keep Nicole's great job with all the benefits, then it makes the most sense to sell the Maui House and the Maui House has a lot of income that comes through it. So, it's. Well, let's play it out. Okay. So, let's model out selling the Maui House. We'll be a little loose with it, but if you sold it today, how much would you get? 1.5. Oh, and then I would get half of that. So, you'd get 750. Yeah. 750. Yeah. You owe 500. Yeah. You would get 750. Yeah. So, that's 250,000. You would get minus taxes, blah, blah, blah, transaction fees. Shall we say 150? Sure. Yeah. I feel like it would be more, but capital gains is massive. That's what every homeowner says. Every homeowner is like, "I thought I would get a lot more." Actually, they don't even know 'cause they don't look at the numbers. They don't know anything. They go, "I sold it for this much. I'm a good billionaire." I go, "You never factored in f***." All right. We're just gonna say 150. Maybe it's more or maybe it's less, but what about it? Sure. Yeah. Okay. So, you just got $150,000. Yeah. What are you doing with the money? We have to adjust all of the income levels. Yeah. We do. So, the current income goes down by $7,000. That's how much comes in every month? Yeah. Wow. Yeah. That's a tricky situation. Yeah. That's why it's very tricky. All right. Let's take a look. So, this number, which is currently $8,000, net, goes down to $1,000. Yep. Is it $7,000 net? Net. Yep. Okay. Let's take a look. Oh f***. You're at $130. Yeah. All right. All right. All right. But, we don't have the cost of this anymore. Is it this one? Yeah. It's that one. So, let's zero that out. Zero that one. And that 84%, basically the same number, however, what's the difference? 150. $150,000. Oh, yeah. Right. When we take out the utilities, that's zero, that's $7,86 becomes zero. Oh. We take out the car payment and we take out the insurance. Why does the car payment go away? Because we only have one car in each city. Oh, I see. Got it. Okay. Yeah. Got it. Zero. Okay. Wow. Yeah. Okay. Yeah. 73%. Wow. What about this repair? Zero. Be zero. Zero on that. Okay. What percentage are we at for fixed cost right now? 69. 69%. 69%. 69%. That's interesting. The housing, Renault. Yeah. On my column. Yep. It wouldn't be 1,000. It'd be more like 500. Really? Yeah. My house doesn't have as much. It's the square foot. It is very small in person. Got it. What's the fixed cost number? Yeah. Wow. That's like 20% plus we have 150,000. Just liquid. Yeah. 150,000, which you could use for. Give me some options. Retirement. You could invest all of it. Yeah. What else could you do? Emergency fund. Emergency fund. You could knock out your emergency fund payment in one fell swoop. Yeah. And then the money you used to put towards it, which is like 4,000 bucks a month, could be used for. Retirement. Retirement. Retirement. Take a little bit of it and enjoy it. Yeah. Etc. Etc. How about you both go, "Hey, we love Maui." So we're going to put a thousand dollars a month aside and we're going to go there and rent a place for a month a year. But we don't need to maintain any of it. Yeah. Oh my God. No landlord stress. It would be amazing. No more phone calls. Really. There's so many phone calls. Yeah. So it's an option. Yeah. Kind of pleasantly surprised to see that, like I see a lot of realizations happening for you. Mm-hmm. What's happening? Because the house has been a source of stress. It just feels like, yeah, an exhale that we wouldn't have to have that stress anymore. Yeah. Yeah. So that feels nice. Kind of echoes what you said about the kind of life you want to create, right? Yeah. You don't want to spend a ton of time on work. Yeah. Being a landlord is work. Yes. It really is work. Yeah. I would have to have that fund that you mentioned, like a thousand a month or more. That would be so essential because I would be so devastated if I had to stay in SoCal all the time. And you could never go back. Yeah. Yeah. That's not the case. Right. One thing that I love doing when I speak to people and help them create their rich life is they often think, if I make this decision, I can never have that again. Like if I sell a house or if I get rid of my third car or whatever and I go, wait a minute. Do you love driving this car? They go, I love it. I love a BMW. I have horrible tasting cars. I love a BMW. I go, want you rent it from TURL. Yeah. Take it out two days, two times a month. Get a nicer one. And because we have this idea that we have to own it. And if we don't own something that feels like chopping off part of our arm, we necessarily limit ourselves. Yeah. I love that. It gives me a sense that there's not just one option. Yes. It felt like, okay, we have to just really bear down and like grit our teeth and get through this year and pray that you get enough clients and pray that enough of them want to pay the fee that we need. And if all of that works out, then we'll be okay. Yeah. It's really high stakes. Yeah. And we can still do that actually. And then if it doesn't work, we have this backup plan. That feels really good. Yeah. That's really beautiful. Yeah. And you have now upside because you've really like cut down your fixed costs. So what that means is, if you are able to, let's just say add 50% hearing, that's like amazing. Wow. I mean, you're already crushing it right now as is. Yeah. $296,000 with $150K liquid. So if you're able to increase your income a bit, wow, that's like thousands. And if you're able to double your income, I mean, you have more money than you know what to do with. - Yeah. - All because you made one decision now that cascades to the rest of your life. And maybe five years from now you go, hey, I actually really want to go back to Maui and have a place of our own. Okay, cool. Well, we have $380,000 in savings. We have this. We have that. What does it look like now that we are both speaking this language at the same level? We can now start to plan ahead, but we're not playing not to lose. We actually get to play to win. - That's cool. - That's really cool. - Yeah. I love seeing it in your both of your eyes. - Yeah. - What are you feeling right now? - I'm feeling excited. I'm feeling connected. I feel like this decision that I had for Maui was before I knew you and before this family. And yeah, there's something here about like having it be more intentional for us moving forward and like how there are possibilities. And it doesn't just have to rely on me doubling my income, you know, starting in May next year and then having it be sustainable. Because yeah, maybe it's not. Maybe something happens and then we have alternatives. That's so much pressure that I hope you can feel can come off your shoulders. Like it doesn't have to be everything on you. We can still have a dream life. We can have our rich life. And it doesn't all have to be completely on your shoulders. - Yeah. - And we can make it work so that no matter what you can still have the ocean and the people in the community. - Yeah. I think I would wanna see the specific numbers for what like a three month stay on Maui would look like if we're not just staying with friends and we wanna have our own place and then factor that in. - Yeah. - And yeah, like. - I love that. I love that you're asking. I would need to see the numbers. Yes. I love that. That's so cool. You should be really thoughtful and you should factor in an airfare and hotel and all that stuff. Air being be whatever it may be. But I suspect, I'm not sure, but I suspect that even going there for two months at a time or something like that will never equal the cost of ownership. It might feel different because you're actually paying out of your pocket. But when you look at the numbers and you have a the full board in front of you, you go happy to do it. - Yeah. - Again, it's up to you, your rich life, what you both want. - Yeah, yeah, I love that. I love the idea of figuring out what is the thing that actually matters and what are we doing to get there? So if being in Maui is what matters, do we have to actually own a home to get there? - No. - Do we have to be there these specific months? Do we have to do XYZ? What's the important thing that we really need to make happen? We need to be there with our people. - Yeah. - Cool. What are all the ways to get there? Just opening up the idea of potentially selling the Maui house has changed everything in this room right now. I think that Drew and Nicole feel really good at simply the option of being able to sell their house. It's kind of like a lot of New Yorkers who live in a building with a rooftop. They have a grassy area or a barbecue up there. Do they ever use that rooftop? No, never. But they love knowing it's there. And this is the same thing happening with Drew and Nicole. Just the idea that they could possibly sell the house feels incredibly expansive. But I don't want to let them walk out of here just feeling good. I want to press them a little bit. Okay, so let's talk about next steps. Yeah, I feel like before the baby gets here, if possible, we just run a bunch of scenarios. Like let's look at selling you quitting your job and us just living in Maui on my salary. Let's look at Maui and what it would be to go there for three months without the house and let's look at my different salary possibilities. And yeah, just this idea of like the possibilities that are there for us is really fun and encouraging. And then we have that information. And then we can, yeah, be on the same page. I love that. You like that. It's so great to hear you say that it sounds fun. Yeah, you don't usually use that word. Yeah, that's cool. Yeah, that's actually really cool. Your energy is super positive. Yeah, I like that. And as I can see here and I'm grateful that you're letting everybody else see, it's the vision first and then the numbers second. So hey, let's, I love that you're like, let's play with what if you quit your job? That's cool, kind of unlikely, but I like that you brought it up. And that's, we should play with that. What if we move here? What if we move there? What if XYZ? Everything's up for discussion. And then we can decide what feels right. It's actually fun to do that. Then we plug the numbers in and say, like, okay, what would it look like? Oh, that's obviously not going to work cross that one off. This could work. Yeah, we're in such a place of privilege and have so many advantages. And so it is play. It's like, we get to play with this money and see what we want to do with it. Beautiful. It's, I love this abundance. I can hear it in you. Like, we have abundance and we get the gift of being able to choose how we spread it around. Yeah. Would there be a date by which you would want to make a decision? Probably. This place is home. And to have time to really actually make the decision, I feel like Drew's going to need to be there. I could be wrong. I see your point. She's so experiential in her decision making that I feel like while I could make this decision logically and just in my head hypothetically and stuff like that, that's not the way that Drew makes decisions. And I feel like having at least a few months, but maybe it could be less of time there would allow her to feel into like, how much time do I need here every year? What do you say, Drew? Yeah, thank you. I feel so seen. That's really sweet. And I actually feel excited by the three month proposal. Not that I say yes to it, but what I'm saying is I feel excited by the confines of a deadline that's pretty soon, actually, because this is a big deal. Like we are not in a good place. And so I think it does require a little bit of urgency. And I could maybe do like a six month or something. There's lots of ways to play it. Yeah, it could be three, it could be four, it could be six. You all can decide. Part of that decision would be modeling out. How much are we going to have in savings? How much is it going to cost for us to fly to Hawaii? Now all these things start to really need to be factored in. And then you have to decide, you know, like if I'm you and I'm down to 20K in savings, we don't want that. Your fixed cost are too high. We also have to remember that just because you decide to sell doesn't mean it sells. Oh, no. Right. So there's always those fees and all the stuff. There's like a lot of stuff to happen and do you need to paint it or write whatever. Yeah. But what I love hearing from you, Drew, is hey, actually tell me what's on your mind because I like the confines. I don't mind the urgency. Yeah. Another way to look at it would be to say we can keep this place in Maui, but Drew, this is how much you have to make starting a month from now. Right. Yes. And then maybe Drew's like, sounds great. Get out of my way. Yeah. That's another option. Yeah. But it has to be consistent. It can't be like one off client. It's got to be consistent. Right. Put it all out on the table. My point is use the numbers to guide you because if you're down to 20 or 30K, which is not far off from where you are at 67K in savings, you're in a danger zone. Yeah. Yeah, I like that. Cool. You should jointly figure out your timeline. Yeah. And like if it's me, you know, you have three months of expenses, I wouldn't let it get much less. Yeah. I see why you said the three month number. Okay. Yeah. Yeah. I don't like to ever have my back against the wall. So the urgency is actually like very functional and it will help you make the right decision. Yeah. Yeah. Yeah. I appreciate that. You still have decisions to make, but what we've done, I think is we've kind of, it's like we're in a garden. We've kind of opened up the possibility like we've loosened up some of these plants that have these deep roots. Yes. Maybe we're going to be in Maui with a home that we own, maybe in a different form. Maybe you're going to be making what you're making. Maybe you're going to double your income. Who knows? Maybe you're going to work at the place you work for 20 years. Maybe 30. I don't know. Is vision still the same or has it changed as we've been talking? For me, I'm feeling the spaciousness, the call for spaciousness, you know, that really used to be such a thing. like core value of mine, just have spaciousness in life. And by that, I just mean like, not super stressed, not feeling like squeezed on, not feeling like a back against a wall. And I'm, it has been very tight and money has created so much stress. And so I'm really feeling called to include spaciousness in our, in our life. - I love that, yeah. I feel like community is still core and work-life balance is part of that, getting to spaciousness, but it is interesting. I feel like having a sense of what can we be doing to make our lives easier, as opposed to, I feel like we've been holding on so tightly to one specific way of doing it. And it's not necessarily even serving us. Like it's not necessarily serving that vision. - Yeah. - It's really powerful. Spaciousness is a word I've not heard associated with a rich life before, but it makes so much sense. It's actually speaking to me as well when you say that, spaciousness on my calendar, spaciousness, even in a room where we have high ceilings and spaciousness in the way that I can think about, all the different ways I wanna do the things I wanna do. There's so many different ways. That's really cool, I love that. And what you mentioned about we've been holding on so tightly. But maybe we need to be re-looking at the vision and zooming out and saying like, are we still doing it or are we just holding onto this thing? That's been in our hands for a long time. - Yeah, definitely. - It's kinda cool. It's very cool. - I find you're both very agile with the way that you think about these things. Agile, agility in a rich life, very important, because necessarily the world will throw things at you. And they have those stories about the monkey once you put something in their hand, they can't let go. That's a lot of people. We just have this idea. We have to buy an SUV or a house or this or that. And we just can't let go, even though we're drowning. But the fact that you can now play with these ideas is really impressive. - Yeah, thank you. - It's really exciting, it is exciting. It's felt like drowning honestly. - It felt like drowning and this feels like, oh, I could just stand up. We were in the shallow. - Beautiful, yes. Yes, that's it, let's love it. - What's gonna happen with Drew and Nicole? I actually have no idea. I would say 50/50 odds, which is quite rare after I speak to a couple. 50% they follow what we talked about today. They make a plan, they go back to Maui and they realize, hey, we can come back here in different forms, but maybe we don't need to own this house. 50% odds, they never get around to making a decision. Life gets in the way. And with a new baby just weeks away, I think it's gonna be very difficult to follow a strict financial plan, especially for the next few months because things are gonna become a little bit tumultuous. All I hope is that they remember to zoom out and look at the big picture of their rich life. At 85% fixed costs, they need to make a decision. In fact, not making a decision is the same as making a decision. So I really hope they get aggressive, they get direct with each other and they decide to potentially sell that place, bank the money, and start over on their joint vision of a rich life together. And now, let's check out their follow-ups. - Hi everyone, we're back. I'm not pregnant anymore. And so we have our new baby, just really exciting. We're definitely living day to day because it's a lot, having a newborn. But we have had some space to be able to make some big decisions and definitely some changes and kind of how our dynamic works in terms of talking about finances. I have really tried to take a step back in terms of leading financial conversations and letting Drew really take more of the lead and Drew handle touching the spreadsheets instead of me. That's a really big shift and it's made things a little bit more spacious in terms of those conversations and more playful. We ran numbers looking at my job and basically all the different scenarios. In regards to my job, we're really deciding that it's just not feasible for me to potentially quit my job and us live solely in Hawaii because the benefits are going to be very hard to match. So because of that, we'll still be a bicultural family but we have made some other decisions and changes. So yeah, so as far as the Hawaii part of the scenario, I also have become basically a CSP expert and I ran a ton of numbers. I took roommates advice and I looked at Airbnb costs, I looked at rental costs compared to buying costs and came up with the best financial scenario to keep our fixed costs at 60% or lower, which is that we're going to sell the property that we have and we're going to most likely end up buying a condo that we pay cash for. So that has been less you. So that has been what the numbers show is the best and I have reconciled that and I was feeling very emotional about selling the Maui place before and after it's been about six weeks now, I've had to process it and I'm feeling much better about it because I'm letting the numbers really dictate what choices that we are making, which is a big difference and also knowing that we want to lead with our rich life feeling spacious and that means spacious as in stress free and financially spacious. So this is the best option for us. So we're feeling really good about it and really excited to start this next journey with baby and keep our fixed costs to 60% and then once we sell the house and have our fixed costs at the number we want, we will be putting our savings and investments forward. Yeah, really exciting. Thank you everybody. - If you want to know the exact month and year that you will have $100,000 in your investment portfolio, sign up for my new program, Road to 100K. I'll help you hit that number fast. Go to IWT.com/100K to sign up.