How to Get Your Spouse on Board with FI|Andy Hill from Marriage, Kids, and Money - a podcast by Cody of Fly to FI and Justin aka Saving Sherpa
from 2019-04-16T07:00:34
On today's episode, Cody and Justin are joined by Andy from Marriage Kids and Money. He tells us his relatable yet inspiring story of living a life with far too much spending brought on by lifestyle creep.
Lifestyle creep is when you get used to a certain way of living but then as you make more money you increase that style of living little by little until it becomes unsustainable or at least larger than you intended. Andy and his wife were spending every bit of their salaries which totaled over $100k. Reality struck when she became pregnant and they knew they needed to change their ways.Now listen to the story and hear their remarkable turnaround and how Andy is now helping people walk in his footsteps.
Episode SummaryAndy and his wife go together in 2010 with a combined earning over $100,000 but they were carrying a good bit of debt and spending everything they earned
That debt included $50k in student debt, a nice car loan and frequent use of their Home Equity Line of Credit (HELOC)They had a wake-up moment when he realized they were going to be having their first child
Quickly he started pouring over podcasts, blogs, and anything to help them learnThey’re currently living around Detroit which has shown a huge turnaround
He bought a house right out of college in mid-2000s and realized he couldn’t afford the mortgageTo help with the bills he ended up bringing in several roommates who paid the mortgage for him...Another house hack win!
When he got married they realized the roommate situation wasn’t going to work so they bought a new house with the goal of paying off the new $350k house in 5 yearsHe was able to get back all of his money from the first house but didn’t make anything off of it
The first material that helped Andy really turn things around was Dave Ramsey’s Total Money MakeoverOnce a month, he and his wife would sit down and review their budget until they got it under control
The biggest changes they had to make was cutting out entertainment like food and drinksHe talks about how tough it was saying no to friends in family in order to pay down their debt so aggressively
We discuss the struggles with getting your spouse on board with this new financial planHe said his biggest mistake was focusing on the process and numbers vs the outcomes, emotions, and the “why” behind the plan
Once the subject went from percentages to a discussion of having more time with their kids, Andy’s wife became equally as fired up about the journeyA powerful exercise he discusses to help with this is to just sit down with your significant other and talk through your perfect day/life if money wasn’t an issue
Then we swap to start discussing how their life is changing now that their finances are in a good place and they’re starting to build their financial independence lifestyleWith their kids starting school, his wife has begun a home organization business which is just another great example of how you will discover your true passions when you step away from a full-time job and those passions will probably bring you unexpected income
We then shift the discussion back to their debt pay-down where Andy gave us the tangible steps to paying off their house in 4 yearsThe first piece was a $150k down payment after a lot of aggressive savings
That got their mortgage down to $200kThey continued their monthly expense reviews
Every bonus or additional dollar they received they put towards the houseAndy’s wife actually stepped completely away from her day job to be a stay at home mom with $80k left on the mortgage
That mortgage was completely paid off a little over a year agoThat down payment that they had been saving up for was all in cash after some shady dealing Andy had with a financial advisor
Andy admits that these were major financial mistakes but worth it due to the amount he learned throughout the process
Further episodes of The Financial Independence Show
Further podcasts by Cody of Fly to FI and Justin aka Saving Sherpa