43. “Our $300k income is variable and declining but we aren’t adjusting our lifestyle”
Kasey and Vince have a variable income. When times are good, they spend freely with no worries. When times are bad, Kasey goes into a financial spiral, behaving like they’re in debt. They need to adjust their lifestyle to their newly lowered income before Kasey’s worries actually become a reality.
Money For Couples with Ramit Sethi
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Show Notes
How do you manage your finances when your monthly pay is inconsistent? Vince makes around $300k a year in the mortgage industry, while Kasey focuses on raising their kids at home.
Despite that rather high average income, the actual monthly takeaway is incredibly variable—one month could be $25k, the next month just $2k. That uncertainty is causing Kasey a lot of stress. On top of that, Vince’s income has been steadily decreasing. Vince chooses to remain positive; Kasey is afraid of the worst happening. But neither of them is willing to look at what they will do if that worst-case scenario does happen. When times are good, they spend guilt-free. But when times aren’t as good, they begin to worry that they’ll never come back out of that hole.
There are reasonable concerns when it comes to not knowing how much money you will have coming in month to month. There are also ways to work around this. Let’s find out exactly how worried Kasey and Vince should be, and what they can do to set themselves up to feel more secure.
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