A millennial couple who makes $235,000 but spends roughly $84,000 a year on travel and shopping is 'no better' than someone with credit card debt, financial expert says

• A millennial couple who spends more than they make sought financial advice from a money expert.
• Self-made millionaire Ramit Sethi warned the couple about living above their means.

A high-earning millennial couple who spends thousands each month on travel and shopping is stuck in a dangerous dynamic of wanting to have it all, a popular money podcaster says.

Paul, 33, and Maddie, 29, live in London and are planning a wedding next year, they told self-made millionaire Ramit Sethi on a recent episode of his "I Will Teach You To Be Rich" podcast.

The couple, who were identified by only their first names, told Sethi that Paul recently left his job, making Maddie's $235,000 salary their sole income.

Despite the loss of Paul's income, the couple still manages to live comfortably, in part because they regularly save and invest. They have $627,000 invested, $27,000 in savings, $5,000 in debt, and a total net worth of $649,000, Paul said.

While Paul told Sethi he thinks those stats are "incredible," Maddie only feels "OK" about their portfolio.

"I feel like I constantly live between two feelings," Maddie said. "I've made great money. I can do what I want, and we can travel a ton…And then the other side is constantly feeling stressed and guilty about it."

The couple's expenses quickly add up, especially in a high-cost city like London. They spend about 19% of their gross monthly income on rent, $850 on groceries, $300 on subscriptions, and try to invest about 9% each month, Maddie said.

Sethi, who wrote a bestselling book by the same name as his podcast, said he initially thought the couple's spending looked solid — until he saw how much they spend on "guilt-free" items and experiences.

Paul and Maddie estimated they spend about $7,000 monthly on various expenses, including travel, shopping, and various wedding costs — totaling $84,000 a year.

"If that's the case, you are spending more than you make every month," Sethi told the couple.

Maddie suggested their superfluous spending was a consequence of "lifestyle creep," acknowledging that the more she makes, the more she wants to spend.

The couple also said they regularly hang out with people who come from wealthier backgrounds, for whom finances are less of a concern.

"We do a lot of group trips," Maddie said. "We buy a lot of nice things, and there's definitely a sense like, we need to keep up."

But the couple's expenses will only continue to grow as they plan their wedding, Sethi warned.

Paul and Maddie said they weren't initially sure how much they should spend on their wedding. After comparing themselves to their married friends, they settled on an $80,000 budget, though Paul said he was mentally prepared to spend $120,000 when all was said and done.

That approach, however, is risky, according to Sethi.

"They have arbitrarily picked a number based on what friends spent," Sethi said on the podcast. "They haven't run a real analysis."

In addition to their wedding costs, the couple said they wanted to attend several destination weddings this year, which will likely be a financial burden.

But Paul and Maddie's desire to "keep up with the Joneses" will ultimately result in the couple "constantly feeling poor" relative to everyone else around them, Sethi said.

The couple lives like they make "at least $750,000 a year" despite making less than half of that, Sethi said.

"In the end, their spending is no different than someone in $38,000 of credit card debt who can't stop buying random junk," Sethi added.

He suggested the couple get serious about their financial goals and be willing to make some sacrifices.

In a follow-up to the podcast, Paul told Sethi that the couple had successfully implemented his advice, building specific spending targets and politely declining several destination weddings this year.