In this episode of I Will Teach You To Be Rich, Ramit and Cassandra Sethi share their experiences managing money as a couple. The pair discusses their journey from maintaining separate accounts to fully combining finances, their biweekly money meetings, and how they navigated challenging financial conversations like prenup negotiations through therapy and improved communication.
The Sethis detail their approach to "guilt-free spending" and how they align their purchases with personal values rather than societal expectations. They explore Cassandra's transition from corporate fashion to entrepreneurship, their different approaches to money management, and how their perspectives on wealth have evolved through their relationship. The episode covers practical aspects of couple finances while examining how emotional and logistical considerations intersect in financial decision-making.
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Ramit and Cassandra Sethi share their experience managing complex business finances as a couple. Initially maintaining both joint and separate accounts, they eventually moved to fully combined finances. To stay on track, they hold focused 30-minute biweekly money meetings every Thursday morning, with quarterly reviews and an annual Rich Life Review in December. While Cassandra initially hesitated to combine finances due to her pride in financial independence, she ultimately recognized the benefits of pooling resources.
The couple reveals that prenup negotiations were their most challenging financial conversation. Through therapy and improved communication, they learned to blend emotional and logistical aspects of financial discussions. Ramit acknowledges his mistake in not sharing financial details early, while Cassandra worked to understand finances better through reading and coaching. Their different approaches to money management—Cassandra's flexibility versus Ramit's structured guidelines—required ongoing negotiation and understanding.
Cassandra transitioned from corporate fashion to founding Next Level Wardrobe, with Ramit's encouragement playing a key role. She has developed impressive business systems, some of which Ramit admits surpass his own. Through exposure to Ramit's success and abundance mindset, Cassandra's perspective shifted from scarcity to believing that more money can always be made.
Ramit and Cassandra prioritize "guilt-free spending" on things they value, such as self-care and travel. They follow yearly themes for their rich life, which has included focusing on beauty through purchases like fresh flowers and personal training. However, they've also learned from experiences like leasing a car that didn't bring them joy, demonstrating their commitment to aligning spending with personal values rather than societal expectations.
1-Page Summary
Ramit and Cassandra Sethi share their personal journey on managing complex business finances as a couple and the strategies they employ to stay on track with their joint financial goals.
For Ramit and Cassandra, the decision to combine finances was a complex process due to both being business owners. They struggled to find the balance between managing money jointly and maintaining their separate accounts.
Initially, they maintained both joint and separate accounts, which necessitated complex quarterly analyses to adjust their contributions and distributions. This process was not only burdensome but also complicated due to the unpredictable nature of business distributions. However, moving all their money to a joint account eventually felt natural and right for them, especially as they plan a shared future.
Ramit and Cassandra keep diligent tabs on their finances by holding biweekly money meetings every Thursday morning. These 30-minute sessions are focused and productive.
Every quarter, Cassandra prepares the finances, using pivot tables and lookups, to review the numbers sent by their accountants. During these discussions, they analyze their quarterly performance, deliberate on any extra funds or business distributions, and evaluate their budgeting success. Additionally, they hold an annual Rich Life Review in December to consider their spending in various categories and make necessar ...
Combining Finances and Managing Money As a Couple
Navigating financial conversations in a relationship requires patience, understanding, and open communication. Ramit and Cassandra share their struggles and the techniques they've developed to handle money discussions constructively.
Ramit and Cassandra recall that negotiating their prenup nearly tore them apart, marking the prenuptial agreement conversation as the most challenging. Ramit carefully planned how to bring up the prenup, aiming for an agreement that allowed them to live a rich life without worries about money. However, the negotiations initially led to hurt and confusion on both sides. Ramit felt misunderstood—not trying to trick Cassandra—while she feared potential destitution in the event of a divorce. A breakthrough was achieved when they sought a therapist's aid, leading to deeper conversations about their differing views on money. The therapist's involvement helped them realize that effective communication about finances needed to combine emotions with logistics. To better understand finances, Cassandra took steps like reading, hiring a money psychology coach, and journaling. These efforts enabled both to grow individually in their approach to discussing money.
Ramit admits a significant misstep in not sharing his financial details with Cassandra early, violating his own rule from his book. However, opening up about his finances led to improved communication and a deeper connection. Despite early challenges, their conversation about money has since improved, with both acknowledging it's still a work in progress.
Cassandra admits to breaking spending rules at times, indicative of a more flexible approach to money, while Ramit sets and adheres to guidelines. He prefers long-term rules and percentages for things like business distributions and does not want to discuss it frequently. Their differing perspectives extend to their household duties list, where they revisit it to check if reassignment is needed. Ramit advises Cassandra to lighten up on the rules a bit, showing an ongoing negotiation of their financial habits.
Overcoming Challenges and Disagreements About Money
Cassandra's journey from corporate fashion merchandiser and buyer to an entrepreneurial powerhouse with Next Level Wardrobe is a testament to the potential that lies in taking the leap into business ownership.
Cassandra speaks about the stark differences between her corporate job and entrepreneurship. She found solace in the predictability of corporate life but realized as a business owner, "the sky is the limit." This shift into entrepreneurship was initially sparked by Ramit’s recognition of her styling talent, and she landed her first client at a friend’s wedding, an event that marked the unofficial inception of her venture, Next Level Wardrobe. Throughout this journey, Ramit has been a continuous support for her. Nevertheless, Julie Nguyen acknowledges that Cassandra, with Ramit's support, independently became a powerful figure.
Cassandra prides herself on the business she has grown, emphasizing her intentional approach to hiring, training, and most notably, the quality of service delivered to clients. She has even developed business systems that impress Ramit, some of which he does not use in his own business. These creative services are delivered in a structured manner, inspiring even someone as business-savvy as Ramit. Ramit has learned to appreciate that Cassandra's business is independent of his and refrains from interjecting his methods unless asked, understanding the dynamic balance between offering support and affording autonomy.
Cassandra has u ...
Cassandra's Entrepreneurial Journey and Ramit's Support
Financial choices reflect personal values and lifestyles, as Ramit and Cassandra illustrate through their spending habits that prioritize self-care, travel, and their vision of a rich life.
Cassandra is unapologetic about spending money on self-care, which she believes is essential for calming her nervous system, especially as she emphasizes slowing down in her 40s. Her self-care routine includes acupuncture, sports massages, hair appointments, manicures, and pedicures. Meanwhile, Ramit and Cassandra follow yearly themes for their rich life, which one year focused on living a life of beauty. This approach led to purchases that represent beauty for them, like fresh flowers for Cassandra and personal training sessions for Ramit. They even splurged on an apartment in New York, which both of them enjoy despite not spending much time there, as Ramit loves the city's energy.
Ramit encourages spending in ways that align with personal values, even if it appears excessive to others, as long as it is affordable. He emphasizes the importance of prioritizing expenses to support spending choices and finding ways to earn more. The couple has dialed in their financial life to reflect their unique vision, which includes prioritizing travel and self-care.
For Ramit and Cassandra, a shared insight was the realization that spending on a leased car did not bring them joy. After giving away their old Honda Accord and leasing an electric vehicle with luxurious features, they noticed that after a year and only 3,000 miles, the vehicle wasn't important to them. Cassandra ran the numbers and concluded that the costs were double what they had initially thought.
This experience underlines the importance of making honest purchasing decisions that align with personal values a ...
Examples of Spending Habits and Financial Decisions
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