In a recent episode of “The Ramsey Show,” hosts Jade Warshaw and George Kamel tackled a financial dilemma faced by listener Jack from Boise, Idaho. Jack, 60, and his wife have a net worth of $6.5 million. Five million is in paid-off, income-producing real estate, bringing in about $200,000 annually. Plus, they both work a little here and there. Jack is frustrated by his wife’s reluctance to spend more on personal and fun items, currently at $100 a month despite their wealth.
Don’t Miss:
Jack explained that they each had a $50-a-month budget while paying off their debts, and his wife reluctantly increased his spending to $100 a month. But even so, she sees that as excessive and isn’t comfortable increasing their spending any further.
Warshaw and Kamel couldn’t help but express their disbelief at the tight budget. Kamel quipped, “Your budget’s got skinny jeans on it, man!” Warshaw agreed and asked, “Why are you not loosening these purse strings?”
See Also: The number of ‘401(k)’ Millionaires is up 43% from last year — Here are three ways to join the club.
But, as the call played out, it became clear that this may be deeper than money. Warshaw pointed out, “At the end of the day, this is about your guys’ interests and being able to value each other’s interests.” She stated that both partners should feel rewarded for their hard work in paying off debts and having a good financial situation. The couple currently enjoys traveling together, which Jack’s wife finds value in, but Jack also enjoys day-to-day pleasures like going to lunch with friends and getting a coffee now and then, which is difficult to do on a slim budget.
Kamel suggests that there could be deeper psychological issues for Jack’s wife, like fear of scarcity or financial insecurity, possibly even rooted in her upbringing. He recommended that the couple consider counseling to address any underlying issues that may be causing her concerns surrounding their finances, stating, “there’s some trauma there” that needs to be explored.
Trending: Founder of Personal Capital and ex-CEO of PayPal re-engineers traditional banking with this new high-yield account — start saving better today.
The conversation touched on balancing a budget between saving, giving, and spending. Jack said that they give over 20% of their income, which he had to convince his wife to do. But she still struggles with spending less than 1% of their income on personal spending.
Kamel and Warshaw suggested that Jack sit down with his wife and have a trial period where they set aside a certain percentage of their annual income for personal spending. That will help demonstrate to her that they’ll be OK even if they spend $500 a month on personal spending, which would be 3% of their annual income.
Trending: Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average?
The Bureau of Labor Statistics said that the typical American family spends about 4.7% of their income on entertainment expenses. The average annual income in Boise, Idaho, where Jack lives, is $109,008, about half what they bring home from real estate income.
The Ramsey Show hosts conclude that for Jack and his wife, the issue isn’t just about money – it’s about communication, mutual understanding, and addressing deeper fears that may be driving their financial decisions. With open dialogue and maybe even seeking professional help, they can find better ways to enjoy their wealth without compromising their relationship.
For couples facing similar challenges, consulting a financial advisor can help you better understand your financial situation so you can make the best decisions about how to spend, save, and give according to your unique financial goals.
Read Next:
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Frugal Wife Won’t Loosen The Reins On Husband’s $100 A Month Personal Spending Budget, Ramsey Show Hosts Say There Might Be Deeper Issues originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Source: finance.yahoo.com