A Brooklyn couple with approximately US$11 million in assets has revealed how they struggle to manage their household expenses despite earning an estimated US$1 million annually, describing themselves as “rich poor people”.
Margo, 42, and Kevin, 52, shared their financial situation during an episode of financial adviser Ramit Sethi’s Money for Couples podcast, exposing the difference between appearing wealthy and having money readily available.
The couple owns two properties and a business valued at approximately US$11 million combined. They also hold US$500,000 in investments, but have just US$50,000 in cash savings and US$2.3 million in mortgage debt.
During the discussion, Sethi estimated their gross annual income at approximately US$1.15 million, based on their reported monthly take-home income of US$50,000. Kevin acknowledged that his business earnings fluctuate.
Their expenses, however, tell a very different story.
The family spends approximately US$150,000 annually on private education for their five children, another US$10,000 on summer camps, around US$4,000 monthly on groceries and an estimated US$40,000 annually on holidays.
One child reportedly receives an allowance of US$300 weekly, while the family also maintains expensive vehicles and two properties.
The couple disclosed that a serious mould problem in their home, together with associated medical expenses, had previously cost approximately US$400,000 to US$500,000, significantly reducing their financial cushion.
As Sethi examined their finances, he discovered that several major expenses had been omitted from their original budget. Once included, their fixed costs exceeded their entire monthly take-home income, even before accounting for holidays and other discretionary spending.
Another concern emerged when Margo revealed that Kevin largely manages the family’s money alone, leaving her without a complete understanding of their finances.
Sethi challenged their spending habits and encouraged them to consider whether maintaining their existing lifestyle, particularly their properties and private education expenses, was preventing them from achieving long-term financial security.
He also highlighted the influence of community expectations, family traditions and the pressure to maintain a lifestyle similar to those around them.
Following the discussion, the couple reported plans to eliminate their most expensive vehicle, downgrade another, reduce grocery and clothing budgets, and involve their children in family financial planning.
Their experience highlights a financial reality often overlooked: substantial income and expensive assets do not automatically translate into financial stability when household spending consistently exceeds available income.
TG News commends Margo and Kevin for their honesty, transparency and vulnerability in sharing such personal details about their financial lives. Their willingness to speak openly about their challenges provides valuable lessons about wealth, spending, financial planning and the importance of making difficult decisions.
We wish the couple and their family the very best as they work towards greater financial stability.
We also encourage our audience to watch the full, highly insightful two-hour conversation on Ramit Sethi’s YouTube channel, @ramitsethi.
Watch the full episode here: https://youtu.be/zNrvuy0MuDE?si=wveGHR_8rEyNBTQt