Don't Fall For The Two Income Trap!

don't fall for the to income trap we're gonna talk about what that is coming up stay tuned welcome back to an all-new edition of The Sunday night sit down with America's number one money couple I'm Talia and I'm Ty and we're from his entire money.com where we're managing money marriage and everything in between the Sunday night sit down is being brought to you by MetLife auto and home new home next you'll need homeowners insurance MetLife auto and home has options that fit your needs one site one stop done and move on to making yourself at home one of the keys for ty and I being able to become financially free was our education we made it a intentional part of our plan to get out of debt and to start one with our money was to read books read articles listen to podcasts watch TV shows all about finance one of the books that had the biggest impact on us was a book called the two income trap that was written by Elizabeth Warren and her daughter Amelia Warren tiaki it is an incredible book and it impacted us so much so that we tell everybody that we can to this day about this book a lot of you may be seeing what in the world is the to income trap well we will give the best summary we can and here it is two people get married a husband and a wife the husband has an income the wife has an income they come together and they become one then they start to build a lifestyle together so they go get a house it's based on both of their incomes they have two cars in a driveway that's based on their two incomes they like to go out and they have a lifestyle that's based on two incomes then some years later one of the spouses would like to make a change whether that be one spouse wanted to come home full-time start a business or to come home to full-time to be an at-home parent things change there could even be a job loss an unforeseen layoff and now you are in a trap because the life that you built together has to be financed by two incomes thus you are in the two income trap it is definitely a trap indeed thankfully when we purchased our first home and a beginning of our marriage we didn't have to necessarily do that on two incomes we were able to take care of all the bills and all the expenses just off of one income but when we discovered this book it totally changed our lives and it even totally changed our advice that we give out to other people as you say it you know don't fall for this twinkle traps you guys because living a lifestyle on to income it's not fun at all it's a matter of fact it's actually risky and it's actually very dangerous in my opinion you know just fast for seven years after us getting married I decided to come home and be a stay-at-home mom and if we were living our life faithful to incomes there's no way in the world I would have been able to do that now some of you guys may be saying what I tell it we already did that we already based our lifestyle off when it comes is it too late for us and no it's not we have heard many of stories where couples have actually downsized or they sought their home and then purchased another home and maybe it was a little bit smaller or maybe it was not maybe was in a different neighborhood and maybe it was not but they were willing to take that sacrifice or that hit you know by maybe selling a dream home just to make sure that they were putting their family in the right position possible you can also sell your vehicles there's so many different things that you can do to make sure that you're not being involved in this too income trap you got to make sure that you're not doing nothing so maybe you're not in predicament to where you can sell your house or your car but that doesn't give you license to live on a hundred percent of your income so maybe instead of living on a hundred percent you start to live on 85 percent of your income you just taper back a little and you start to build your way backwards by making little cuts here and there and making adjustments here or there the point is you need to make some margin between how much you make and how much your expenses are so if you're maxed out to the tilt you need to start tapering back where you can and avoid the to come income trap as much as possible because what happens is by doing so by freeing yourself up from being in that trap you give yourself options you get to make different type of life decisions and the biggest way that we got out of the debt so fast was because we use one income to handle the household expenses and the other income to chip away at the debt and then once we got out of debt we use one income for household expenses and the other income to invest and to build wealth because we have the freedom to do so so start to have the conversation and start to figure out some ways that you can taper back and get back to living one income instead of two because that positions you to prosper and have different types of conversations around purchasing investing and living a life that you desire that's right so if you guys enjoyed this video please give it a thumbs up if you need help trying to figure out how can you scale back and not live on two incomes you all we have a lot of information for you over at our website at his or her money comm and meet us back here next Sunday night at 7 p.m. central standard time will you would see the both of us share with you one of the biggest ways that you can figure out how to get your income in order is through our course it's called teach me how to budget it's a comprehensive course of over thirty lessons and worksheets to help you get your finances in order and figure out how you can free up that cash so you can get out of the to income trap to find out more details it's real simple guys go to teach me how to budget calm well that's all we got for this week guys it's been Craig until next time [Music] [Music]

Channel: His And Her Money

Views: 35,662

Keywords: marriage, money and marriage, how to save money, how to make money, side hustles, his and her money, how to get out of debt, debt free, dave ramsey, envelope system, how to budget, extreme couponing, grocery hauls, home management, how to organize, budget tips, budget friendly, frugal living, cleaning vlogs, meal planning, money saving tips, cheap living, personal finance, aldi hauls, target hauls, how to live on less, simple living, faith and money, christian living

Id: wz4i1DaCbRQ

Length: 6min 47sec (407 seconds)

Published: Mon Dec 25 2017