Ramit on couples splitting expenses

Welcome back to our second IWT Podcast Newsletter! To view this email as a web page, [click here]() {NAME}, Welcome back to our second IWT Podcast Newsletter! Every Saturday, I’m going to answer your questions about the latest podcast episode. Today we’re talking about the [100th Episode Special: Top 5 Can’t-Miss Moments]() where I get to explore some of my favorite episodes of this show. In today’s newsletter: - Shouldn’t couples just pay 50/50 on rent regardless of income? - How do you have the patience to talk to some of these couples? - What kind of business does Connie own to make $200,000 per month? - Why doesn’t anyone ever talk about having more kids than you can afford? - Which of these couples do you think were the most likely to change? --------------------------------------------------------------- Today’s newsletter is brought to you by: Trade [Trade] Trade is a coffee subscription service that makes it simple to discover new coffees and make a great coffee at home. They partner with top rated independent roasters so you can get the best quality coffee sent right to your door. I’m always on the hunt for my next favorite coffee. Each month I order my favorites along with something new so I'm always discovering new coffee. Currently my favorite is Verve, which is available through a Trade Coffee subscription. Right now, Trade is offering our audience a free bag of coffee with any subscription at [drinktrade.com/ramit]() And to find special deals from all our amazing sponsors, check out [iwt.com/sponsors]() --------------------------------------------------------------- Now let’s get to your questions about the five “can’t miss” moments of the last 100 episodes. [Ep. 73 with Nate and Serena]() Bob: “Shouldn’t you just pay 50/50 on rent regardless of income? They're benefitting from the same roof over their head so they need to pay equally.”A: Before you read my answer, [there’s a pretty juicy comment thread about 50/50 expenses here](). In America, most people believe that “fair” is 50/50. Here’s the problem with 50/50: If one partner earns $150,000 and the other earns $30,000, it would be hard to justify the $30K earner splitting joint expenses 50/50 because they simply would not be able to afford it. A 50/50 split means that the lower earner would be disproportionately burdened. This is why I personally recommend proportional spending. If one person earns twice as much, they contribute twice as much to joint expenses. Like this: [Dividing expenses based on income] From [Chapter 9 of my book](). I recommend proportional spending for joint expenses, with you revisiting the arrangement every year (mostly because incomes change). Btw, last night I spoke to a couple (podcast coming out soon) who insisted on 50/50, even though she made less and clearly could not afford it. I asked her why. She said, “Because why should she have to pay more just because she makes more?” I responded, “Do you think I should have to pay more taxes because I make more?” She sat silently for about 10 seconds...then agreed, and changed her mind about proportional contributions on the spot. (Btw, I agree that I should pay more in taxes. I’m happy to!) One last thing: Even though I recommend proportional contributions, my financial philosophy on couples is if you have an arrangement, you both agree, and you both understand the ramifications of your decision, you should do what works for you. [Ep. 80 with Sarah and Kevin]() Tina: “It seems like they are in denial and not actually willing to make a change. How do you have the patience to talk to couples like this?”A: I have patience because if someone had tried to tell me how to get physically fit when I was 20 years old, I would have had a ton of absurd and false beliefs about fitness and food. Deep down, I think we all understand what it’s like to want to change but not be able or willing to do it. I’ve been there, which is why I have infinite compassion for people who tell me they’re ready to change. When I start to lose my empathy is when someone repeatedly claims they want to change, but their behavior doesn’t match. I don’t have time for that. [Ep. 64 with Connie and Wes]() Nadine: “What kind of business does Connie own to make $200,000 per month??”A: People are obsessed with what Connie does to make that. She owns a business in a certain field that’s not important. I could tell you and it wouldn’t change a single thing. Most people asking this are basically asking out of morbid curiosity. What’s actually going on here is that most people have never heard someone who makes that kind of money talking about it openly and honestly. But I know lots of people like this. They exist, whether they’re earning $30,000/month, $100,000/month, or $5 million/month. THESE PEOPLE EXIST! This is what we teach in our Earnable program — how to start and grow your business. If you’re ready to start earning more, [you should join the program](). [Ep. 84 with Kristine and Thomas]() Tom: Why doesn’t anyone ever talk about having more kids than you can afford?A: Because by the time people realize they can’t afford all the costs of childcare, it’s too late. What do you want them to do, return the kids to the store? [Ep. 100: 5 Can’t-Miss Moments]() Lexie: Which of these couples do you think were the most likely to change? A: I always have a hunch if people will change or not. I estimate I get it right about 80-85% of the time (at least short-term change — long-term change is much harder). I’ve tried to hone that sense over the last 20 years, even setting multi-year followup email reminders to check in on certain people. Follow-ups tell us a lot. E.g. Sarah and Kevin didn’t follow up, which is not a good sign. I hope they do make changes. I’ll also point out that [Kristine and Thomas’s followup]() was very impressive. [Signature] P.S. Have questions for next week’s newsletter? Submit them here: [iwt.com/askramit]()   [Logo] [insta]() [Twitter]() [twitter]() [youtube]() [Linkedin]() This email was sent to [{EMAIL} .]() If you no longer wish to receive these emails you may [unsubscribe]( at any time. I Will Teach You To Be Rich 548 Market St #89946 San Francisco, CA 94104-5401