They Earn $245,000 a Year and Have $1 Million Saved. So Why Are They Still Struggling Every Month?

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Quick Summary

Earning $245,000 a year and having more than $1 million saved did not protect this couple from financial stress.

For couples trying to understand where money is leaking, talking it through with a financial advisor can help. Tools like SmartAsset let readers take a short quiz and connect with financial advisors for free.

For those looking to diversify beyond traditional portfolios once the foundation is stable, platforms like Arrived allow investors to get started with fractional real estate for as little as $100.

Jamie and Ryan are not short on money. They earn about $245,000 a year. They have a net worth just over $1 million. They own a home, have retirement accounts, and live in the Midwest with their three children.

And yet, they consistently run out of money before the end of the month. That is what brought the couple onto Ramit Sethi’s podcast, “I Will Teach You To Be Rich.” What came from the conversation was a series of high-impact decisions made without shared visibility.

Two years ago, Ryan, now 35, was unhappy in a high earning job. Instead of discussing next steps with Jamie, 45, he took what Sethi called the “nuclear of nuclear options.”

Ryan quit his job and cashed out the 401(k) tied to it without consulting Jamie beforehand. He did not tell her immediately afterward either. Ryan later quit his next job as well, again without informing Jamie in advance. After that, he borrowed against his IRA to purchase a car.

Ryan told Sethi he had “hit a breaking point.” Jamie told Sethi the decisions shattered her trust.

Today, Jamie tols Sethi she maintains a separate savings account to protect herself financially. She has also had to help pay down Ryan’s credit card debt. Conversations about money routinely escalate into arguments, divorce threats, and stalemates, according to Jamie.

Despite their income and net worth, the household feels unstable. Jamie and Ryan’s situation points to how emotional stress can translate directly into financial harm, even for high earners.

By quitting his job, Ryan interrupted a high-earning career path. By cashing out his 401(k) early, he triggered ordinary income taxes and a 10% early withdrawal penalty. He also permanently lost the tax-advantaged growth that money would have earned over decades.

Each move compounded the next. Lost income tightened cash flow, early withdrawals weakened long-term security, and credit card debt added pressure.

That is the gap many couples fall into. Income rises, complexity increases, and decisions start happening individually instead of jointly.

Over time, the lack of coordination becomes more damaging than any single mistake. Tools like SmartAsset let readers take a short quiz and connect with financial advisors for free.

For couples navigating uneven decision-making, that outside perspective can be a stabilizing force. If you’re in this position, talking through the full financial picture with a financial advisor can help restore clarity.

You do not need to be on the brink of retirement or have a perfect plan to start that process. Even one structured conversation can surface where money is going, what can be repaired, and what needs guardrails going forward.

Some households look for ways to diversify beyond traditional stock-and-bond portfolios. Others prioritize simplifying accounts, consolidating cash flow, or rebuilding savings buffers.

Platforms like Arrived allow investors to access fractional real estate, adding income-producing assets without becoming landlords for as little as $100.

Jamie and Ryan are not struggling because they lack money. They are struggling because decisions were made without shared understanding, accountability, or long-term framing. High income masked the damage for a while. Eventually, the gaps caught up.

The lesson is not that early withdrawals or career changes are always wrong. It is that unilateral decisions in a shared financial life carry outsized consequences.

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This article They Earn $245,000 a Year and Have $1 Million Saved. So Why Are They Still Struggling Every Month? originally appeared on Benzinga.com

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