In a recent podcast episode of "I Will Teach You To Be Rich," hosted by money expert Ramit Sethi, young engaged couple Paul, 33, and Maddie, 29, shared their financial struggles. Despite having a high combined income of US$235,000 (AUD$396,000) and a significant net worth, the couple admits to "constantly feeling poor."

A High Income, But Anxiety and Stress Persist

Paul and Maddie moved from America to London, deciding to live off Maddie’s salary after Paul quit his job. Maddie, who earns $19,583 monthly, supports both of them financially, leading to feelings of anxiety and stress. “I just feel so much pressure that I am the only one bringing in an income,” she confessed during the podcast. She described a "constant fear of being let go," which she called a "recurring nightmare."

Spending More Than They Earn

The couple revealed they spend US$7,000 (AUD$10,464) monthly on travel, shopping, and their engagement, which exceeds Maddie's monthly income. With 63% of their expenses going towards rent, groceries, subscriptions, and other miscellaneous items, they find themselves in a precarious financial situation despite not having any significant debt apart from a small loan.

Financial Assets and Mindsets

Paul has US$627,000 (AUD$937,275) invested, bringing their total net worth to US$649,000 (AUD$970,162). Despite this, Maddie grapples with two conflicting mindsets: one of enjoying a luxurious lifestyle and another of fearing financial instability. “I think I have a scarcity mindset—it feels like anything can be taken away from us at any point,” she said.

Diverging Views on Money

While Maddie feels stressed and guilty about their spending, Paul remains optimistic about their financial future. He believes in the potential of their money to enhance their lives. However, Maddie’s unhealthy relationship with money causes her stress, even when shopping or dining out.

Lifestyle Adjustments Needed

Ramit Sethi pointed out that their high expenditure on social activities and travel is unsustainable. He advised them to reconsider their lifestyle choices to ensure financial stability, especially with plans to get married and start a family. “It’s not actually normal for people making $230,000, which is a very good income, to be traveling eight times a year internationally, plus your own personal travel, plus Barry’s Bootcamp, plus shopping and golf trips,” Ramit said.

A Future Reassessment

Paul aims to return to the workforce, expecting to earn between USD$150,000 (AUD$224,228) and USD$250,000 (AUD$373,714) annually once he secures a job. The couple agreed that their spending habits are influenced by the social pressure to keep up with their peers, often leading them to overspend.

Setting Up for Success

With aspirations of getting married and having children, Paul and Maddie recognize the need to curb their spending and save more for their future. Maddie admitted to “lifestyle creep,” where increased earnings lead to increased spending—a sentiment Ramit acknowledged. The couple plans to work on declining social invitations and focusing on their long-term financial goals to ensure a secure and prosperous future.