Self-Made Millionaire's Advice: Couple Expecting 4x Income Boost in 2 Years

Annie and Emery, a couple from Portland, Oregon, have been married for 10 years and have been keeping their finances mostly separate. However, they recently sought help from financial expert Ramit Sethi on his podcast, "I Will Teach You to be Rich," to address their financial concerns and plan for their future. With Annie's income expected to increase significantly in the next two years, they are looking for ways to manage their increased income and close the salary gap between them.

Annie, an accountant, earns $187,200 annually, while Emery, who works in video production, makes $36,000. Their combined income is $223,200, but Annie feels the burden of being the sole financial provider for the family. She is an "optimizer," constantly looking for ways to maximize their credit card points, invest every extra dollar, and keep their rental properties, even when they require costly maintenance and don't net a profit.

Sethi pointed out that Annie's behavior with money is causing her negative ramifications, and she needs to make a connection between her actions and their impact on her relationship with Emery and their financial future. He suggested that they focus on one thing and do it really well, rather than trying to multitask and address multiple financial goals at once.



To effectively manage their increased income and close the salary gap, Annie and Emery can consider the following strategies:

1. Budgeting and Financial Planning: Create a detailed budget to understand their income and expenses, and allocate their resources effectively. Use tools like Mint or You Need A Budget (YNAB) to help with this process.
2. Emergency Fund: Prioritize building an emergency fund to cover 3-6 months' worth of living expenses. This will help them avoid dipping into their savings or taking on debt in case of unexpected expenses or job loss.
3. Retirement Savings: Contribute to their retirement savings, taking advantage of any employer matches and maximizing their contributions to tax-advantaged accounts like 401(k)s and IRAs. Aim to save at least 15% of their income for retirement.
4. Investment Properties: Reevaluate their investment properties and consider selling any that are not generating a profit or require too much maintenance. Reinvest the proceeds into more profitable properties or other investment vehicles.
5. Financial Education: Educate themselves about personal finance and investing to make better decisions about their money and understand the risks and rewards of different investment strategies.
6. Regular Financial Check-ins: Schedule regular financial check-ins to discuss their progress, make adjustments to their budget, and address any financial concerns. This will help them stay on the same page and work together towards their financial goals.
7. Tax Planning: Consult with a tax professional to optimize their tax situation and explore strategies like tax-loss harvesting, charitable donations, and tax-advantaged investments to minimize their tax liability.
8. Financial Coaching or Therapy: If they find it challenging to manage their finances together, consider working with a financial coach or therapist to address their underlying money beliefs and behaviors and develop a plan to achieve financial balance.

By implementing these strategies, Annie and Emery can effectively manage their increased income, close the salary gap, and achieve financial balance. They should focus on saving, investing, and avoiding lifestyle inflation to build wealth and secure their financial future.



In conclusion, with the right mindset and strategies, Annie and Emery can successfully navigate their increased income and build long-term wealth. By setting clear financial goals, creating a budget, and prioritizing savings and investments, they can close the salary gap and achieve financial balance as a couple.