Boston, MA – A Massachusetts couple who once lived off a booming cryptocurrency portfolio is now trying to rebuild their financial lives after losing everything and drowning in debt. Their story, shared on Ramit Sethi’s Money For Couples podcast, shows how quickly financial comfort can collapse without a plan in place.
Their issues began years earlier when Angela met David, who had already grown a six-figure crypto portfolio. But instead of protecting the gains, they lived as though the money would never run out.
The Financial Collapse
Angela explained that at the peak of their good fortune, they behaved as if they were wealthy without actually having the income to sustain the lifestyle. They had a child, avoided stable jobs, and relied entirely on the investment gains. According to her, their spending eventually wiped out the entire portfolio.
David admitted that success altered his mindset.
“I went through $200,000 of cryptocurrency and treated it as income instead of going out and finding a job because my head was in the clouds,” he said during the episode.
A Year of Overspending
In 2021, the couple moved to Colorado, where they began cashing out the crypto profits and spending at a rapid pace. Within a year, reality set in: the money was gone, and they no longer had the financial foundation they once relied on.
After leaving Colorado, they moved to Colombia, Angela’s home country, before eventually returning to the United States. Today, the couple and their young daughter live with David’s mother in Massachusetts, sharing a two-bedroom home as they attempt to recover.
Their Current Financial Picture
Both Angela and David are employed now, earning a combined $118,000 per year. But despite not paying for housing, they struggle to move forward. At the time of the podcast, they held $4,242 in savings, $4,000 in assets, and $761 in investments, while carrying $34,632 in debt.
As Sethi questioned them, a major issue became clear: the couple does not track their spending at all.
No Tracking, No Stability
Sethi emphasized that without knowing how much they spend on essentials like groceries, eating out, or gas, the couple cannot hope to meet goals such as buying a home. Financial planning begins with awareness, he reminded them.
He also urged David to stop placing all investments solely in cryptocurrency. A diversified portfolio reduces volatility and protects against sudden downturns.
“Don’t put all your eggs in one basket,” Sethi advised.
Another issue was their attitude toward debt. Sethi noted that their lack of urgency was preventing progress.
“People who are in debt will do everything except pay their debt,” he said. “Literally, everything on the planet.”
Dangers of Ignoring Debt
Holding onto debt for too long can delay major milestones and increase long-term costs due to interest. Without tackling their $34,632 debt, savings goals will remain out of reach. When people avoid dealing with their debt, it often grows, and so does the stress associated with it.
The Cost of Lifestyle Inflation
Overspending during periods of financial success is a common issue. Many people increase their lifestyle the moment money starts coming in, unaware of how quickly it can disappear. Angela and David’s story shows how easily lifestyle inflation can lead to long-term financial consequences.
What They Can Do Now
Sethi believes the couple are “dreamers” who need a structured approach. Their path forward requires:
Budgeting: Track every dollar to understand where money goes. Only then can they adjust spending to match realistic goals.
Debt repayment: Prioritize eliminating debt before attempting to build wealth.
Better communication: Accepting different stress levels and meeting regularly to discuss finances can close their communication gap.
Diversification: Explore low-cost index funds rather than relying solely on crypto.
Cutting unnecessary spending: Angela’s high-cost courses and retreats were labeled “expensive procrastination disguised as self-development.” Reducing these expenses is essential.
