Living in New York City is hard. For Hannah and her husband, paying $3,000 a month for what she described as a “main wardrobe” didn’t feel sustainable, especially with a baby on the way.
So they made a very difficult decision. They went to the gym room they have.
“We technically shouldn’t be living here and it’s not the most comfortable living situation,” Hannah said on a recent “Ramsey Show.” However, the basement meets safety requirements, with reasonable ceiling height and windows above the ground. And this move helped them cut costs dramatically at a crucial time.
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A year ago, before Hannah was born, the couple decided to eliminate the rent altogether. The goal was to eliminate debt and create enough breathing room so she could stay home with her child while still helping to run the business.
At the time, Jim was bringing in about $40,000 a month in gross income. Today, that figure is about $65,000 a month.
Because they didn’t pay the rent, they could aggressively attack their debts. “That year, we paid off $70,000 of our business loans,” Hanna said.
They still owe about $120,000 — $40,000 in credit card debt and $80,000 in student loans. But their income picture now looks very different. Last year, they took home “basically nothing.” Now, they bring in $10,000 to $15,000 a month.
It’s time to co-host George Kimmel She pressed the big issue.
“When you say technically, do you mean it’s not legal?” Kamil asked.
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Hannah confirmed that it was not zoned for residential life, and that raises red flags.
“Yeah boy. Well, that’s a problem,” said Kimmel. “One is the real legal implications, the other is just the totality of the situation on top of the risk you’re putting yourself in, especially with a child.”
The inspector has already checked once after someone reported it. “Investigators came and found it because someone reported us,” Hanna said. “But they said we were fine.”
Kamil couldn’t help but react. “Wow, New York City is just a wild place,” he said, half-joking but clearly surprised the situation didn’t result in fines or forced evictions.
However, the basement is not approved by the house.
