Financial Audit - $1,000 Truck Payment With No Job

Episode Date: July 8, 2023

Check out these fun things: Patreon: ⁠https://www.patreon.com/calebhammer⁠  My socials: ⁠https://linktr.ee/calebhammer⁠  Do you want to be in a Financial Audit and you're in the Austin area? Email [e-mail] Sponsorship and business inquiries: [e-mail]  _______________________  Timestamps: 00:00 How he get's his monies 02:32 His parents moved in with him... 04:50 Debts, debts, and more debts! 06:07 Terrible trauma... 09:06 Checking account 10:15 STUPID credit card debt! 22:06 INSANE TRUCK DEBT AND MOTORCYCLE DEBT 27:20 These debts are CRAZY! 30:45 SELL THIS TRUCK NOWWW 34:32 Time to clean this mess up... 40:30 This is going to take a LONG time! 46:21 Hammer Financial Score --- Support this podcast: https://podcasters.spotify.com/pod/show/calebhammer/support Learn more about your ad choices. Visit podcastchoices.com/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Taylor, 30, based on Oklahoma City, this financial audit. What do you do in Oklahoma City for a living? I'm getting into the cannabis industry. Really? Yeah. In Oklahoma? Yeah. Oh, okay.

Huge up there. I know it's a pretty conservative state. They're like pro cannabis? Yeah. They legalized it like three years ago, medical. So it's popping off there. Oh, okay. Very cool.

So you're getting into the industry. What does that mean? So I, it's kind of hard because it's a lot of like you have to know people. And actually this past weekend I met a grower that needs tremors. So just however you can get your foot into the door. Like I was looking on Indeed, but it's there's so many like the market's oversaturated. Like everyone wants a job at the dispensaries and stuff. So when you mean getting into you're not in yet?

No, not yet. Oh, what do you want to do? That's what I, I moved to Oklahoma for that. From, from, from, from Austin. Oh, welcome back. Yeah, here, you know, revisiting a little bit. Was it, I went to California and tried to do it out there from Austin, but I realized the cost of living was just not going to be feasible. And it was either, it was either Colorado or Oklahoma, because cost of living.

Interesting. I do not picture Oklahoma. ignorance to the industry. It's, so it's very interesting. What do you do now? I just get VA disability. That's how I'm supporting myself.

Oh, wow. How much does that bring in on a monthly basis? 38, 32 a month. Is that enough to live on in Oklahoma City? Absolutely. I got a house. I got a brand new truck. I got a Harley.

Like, I'm just not. Well, all that could be your good or bad depending on the situation. It's not the best debt, you know, but like I have, like, I have, like, After all my bills are covered, I have like roughly a $1,300 left over. Oh, okay.

So Oklahoma City, relatively cheap. I got a three-bedroom two house for my mortgage is like 10, 10, 25 months. Oh, that's incredible. What's the purchase price of that? 140. All right. It sounds like a down payment in Austin, but okay. That's incredible.

You use the VA home loan for that, too. So that's what you see. Oh, yeah. That's what you see hits your account on a monthly basis. This is 3832. And then right now my parents are living with me. So they contribute 200 a week. And then my mom gets Social Security so that they give me half of that, which is like roughly 500.

Whoa. So 1,300 extra. Whoa. Why? Just because they're not in a position to rent their own apartment because of things that they've done in the past. So it's just it helps everyone out, gives them a place to stay. And I'm curious why the situation around you charging them versus helping to have a situation where they can put all that money aside and then get their own place. Oh, and don't forget to the subscribers.

We're really trying to get to 500,000 subscribers. And every subscriber helps. Thank you so much to everyone who has subscribed so far. I told them don't pay me anything. And then they're like, they want to pay their share. Essentially what I'm doing is like, that's why I just ask for 200 a week. Because it's like, I don't want, like, he gets paid. weekly and like even now he doesn't have a job so that I don't count that into the bills like

my bills with the mortgage and all my high stuff comes out to like 32 a month well it's most of your yeah yeah well it's just food food and gas we're not going to dive deep into them at all because it's not their story it's your story but just for extra context what are their ages close to 60 yeah now do you want them living with you forever no okay so I may Maybe it might be time to reject that money, so they are able to get their own footing. Yeah, that's kind of like what I was doing because I had a little bit saved up until a gas bill came. I had to pay like almost a grand to gas. But my goal was to kind of set money aside to help them with that so they could have their own place.

And of course, I'm coming into that conversation knowing pretty much nothing so far. So this is my instant. Before they move with me, they were in a hotel for two. months. Well, I'm glad you're being the supportive. Yeah. And then they got, you know, they lost that opportunity. So that's why they, from South Carolina to Oklahoma. So from beaches to flat. Yep. All right. So before we dive into your overall financial situation, I don't hear from your perspective as honest you so you can be, what is your personal finance situation? It's not that good. Like I have a good amount of money coming in.

I really can manage everything, but the reason I got the Harley payment and the truck payment, and now my mortgage payment is like I felt like I was spending that money, and I didn't have a place to put it, and I was like just slowly letting it go every single day, like $50 a day or $30 a day on just whatever. and now I kind of feel like I'm putting it into something that I can actually see in like, you know, a house. And like, I bought a brand new truck that I expect to last me 10 years because I got it with 18 miles on it. So, like, you know, a little. But dad.

And, yeah, I kind of regret it, but then at the same time, it, I do look at it as like it's going to last me. and well we'll look into that yeah you're not going to like the interest right can you mean it just a little bit yeah yeah uh well okay before we do that i also want to know about your service history because you're getting benefits on a monthly basis then obviously you took advantage of the VA loan what what was that i was in the marine corps and i was a truck driver very cool where are you stationed uh okinawa camp kinser oh cool that's spent spent my whole whole time over there and then had some situation happened with the staff sergeant and then that and helped me or not helped but that's the reason I'm on my disability right now.

What? What happened? Well, he, um, I got assaulted by him. Oh, wow. He picked me up by my throat and took two guys to pull him off of me because I was late like three minutes to base. Dude, I'm sorry. Yeah. And then, like, I was like holding on to that, didn't really go to the VA because I, you know,

I'm so young. I don't look like, you know, anything happened. And when I was living in Austin, I actually got robbed at gunpoint. And, like, the dude was the same race. So, like, sparked a whole bunch of, like, PTSD towards, like... Oh, as the officer? Yeah. Oh, no, he was my staff sergeant, but, yeah.

Oh, sorry, sir. No, yeah, you're good. A higher-rank guy. So, yeah, those two things kind of, like, led me to being, like, in the psych ward, like, four times. Wow. It just, like, I crumbled pretty much. No, I wasn't taking care of myself. Like, I was 30 pounds heavier than I am now.

And it's hard to focus on when you, you know, when you got to make a living and stuff. And so now I'm able to, like, put my health first and, like, you know, sleep's important. Like, you know, that's something I was, you know, I was being a truck driver. The last job I had was a fuel hauler around here. I would go and deliver at H-E-B and stuff. stuff. So, but yeah, that was, that was my service. How long ago was, not the service, but, you know, the recovery through that and the stints

and the psych ward? That was like 2018, 2019. And then that's part of the reason why I divorced my ex-wife because she wasn't supportive. She's like, while I was in that, she said, if you are, if you were the way you are right now, when I married you, I would have never married you. And I'm in the psych ward and she's saying this. And I'm just like, ah, all right. So.

Dude, you've been through it. Yeah. So it was just me and this little dog. I took him to California. And made a new life. What's the pup's name? Lulu. Oh, Louie.

Louie. Yeah. I'm a big dog fan. Love it. He's my number one man. Oh, man. Okay. That's, I mean, that's definitely probably more of a traumatic experience than we've had.

on this show. And I'm very sorry that you've been through all that. And I feel like that has a lot to do with the finances. It comes through. Sure. Well, let's take a dive, shall we? Let's do it. We have Navy federal checking and Navy Federal Small.

We'll start with the checking and what that looks like. So previous balance 1,789, any balance 1,437, 5,348 came in. And I'm assuming that's all coming from the, uh, disability and then also from your parents? Yes. Pretty much. Nothing else comes in besides those? No.

Okay. Where is this going? We have Amazon purchases and pass smart for the pup. Yeah, they're expensive. Zelda, oh. No, I don't know that's Zell money coming in. Okay. Yeah, and that makes sense from what we talked about.

It's mostly just general spending and paying off credit cards. Really nothing crazy here. The checking is really just, I hold the money. and then I pay the credit cards off. I'm getting out of the credit card habit, though. I fell into that a little bit. So now I've been using my debit card more. What did you fall into just?

Overspinning. Like I had a certain amount. I was like, I'm not going to spend over X amount. And would always be like, oh, yeah, you know, I'm hungry. Okay. Yeah. So really nothing crazy here. Just seeing where bills are going to.

Navy Federal small. Oh, this is a credit card. So, yeah, there's three credit cards. Oh, I see what you're named it as small and big. Yeah, the big ones. That. March 2023. That one hurts.

That one hurts. I want to just before we get into the cards, you have savings anywhere. No savings. No savings, but no student loans. Okay. But no emergency fund. No emergency fun. You do get the disability and forgive my ignorance on it.

I personally don't know, but is that just indefinite until death? Okay. Yeah, tax-free. adjusted for inflation? Yes. It used to be 35, 35 something until this past year. Okay. And then they increased about, it goes up with Social Security.

So kind of works as an emergency fund. I don't know if everyone would agree with saying it is that, but that's what I kind of work. I have a, like, I don't know, you know, because that's technically like if I was getting, you know, if I had a residual money coming every month. I think you can kind of subsidize, but we'll break in and see how things. things are looking. Okay. Because I don't, I mean, that wouldn't cover a large thing. No, but that's why I picked Oklahoma for, you know, cheap living.

That's true. Okay. So, well, let's take a look at the debt because there's nowhere else to go, but debt, right? Just debt. Okay. Well, let's see. All right. Well, Navy, federal.

We're looking at a balance of 1,449 at the time of this statement. But what I don't like is you're trying to get out of debt, right? We're trying to get out of debt. You paid $25 for it. I mean, okay, so we're doing a minimum monthly payment. But why are we doing $253 of new spending? What's the purpose of that if we're trying to get out of debt? It's the, I ran out on other credit, and that was the last resort.

Well, everything else has been maxed out? No. Like, it was getting too close for comfort. Like the Navy fed big, yeah, that's super close to max out. out. None of them are maxed out. I just don't like the balances on them. So like I spend depending on how much percentage of use it is because I know it like and then my credit went down like 60 points this past month because of the usage because it finally all hit. It's because I am very sympathetic of which I am of your past and you know, respect you in different ways for what

you've done. I'm still going to yell at you. Oh, that's, I was nervous coming here. For making the dumbs. Ask her all super nervous. Oh, don't be nervous. No, I'm lovable. I'm just a Panda Express boy over here. That's all. Well, let's see what the interest rate is on this, because you lose $20 on interest.

Yeah. Yeah, it looks like gas and a crumble thing and little Caesars. Do we need to be doing great wall and a, it looks like an addiction of some kind? Do we need to be doing that when we're maxed out on different things? and burgers? Tis tisk. CBS Interactive. Why do we care about CBS out of all things that exist

and then a Microsoft subscription? 18%. Honestly, compared to where interest rates are right now, it's halfway okay, but I'm not, that doesn't mean it's, I mean, 18% is absolutely terrible, but it's not 30.

I can't believe that and I even just said that. But, okay. So we have this. What scares me is that's the small one. Navy Federal, large, as it's called. Oh, yeah, there it is. 5,241.52. That is a thick boy with the minimum monthly payment of...

Like, 94. 105 this month, okay. With $74.8. Of interest being lost. You're trying to break into an industry, and I love that for you. but we're trying to do all this, well, we're also having all this debt, and we're just, ah, I can immediately tell that.

I wish you were just bringing in more money instead of trying to break into an industry while we're trying to get out of the disaster, and then we do the risk of trying to get into a... Why are we spending on here? What's the purpose? I'm confused. Because you're spending on the other one?

Yes, you spent on this one. $5.65. Oh, it's because my car insurance is linked to that one. I have to take that one off. Paying through our car insurance, through debt. And then also a pest thing. And an other Microsoft subscription.

And your ATD security is through here. I got a change. So we're deading it all. I would budget those and put them over, though. But I just do a little more spending this month. State Farm Insurance is your car insurance? We may as well notate that now. And it's actually gone down.

Like this next month, it's going to be like 303, not the 392. Or 390 something. In the ADT, that's on a monthly basis? Uh, yes. Is it the spooky area? You feel you need that versus like NAST cam? I mean, I got the system for free. Securities important, so I'm going to, well, yeah.

Yeah, but is it because $63 a month? Yeah, technically not, because I'm paying that. All right. Let's see. Okay, Capital One. and the only reason I'm excited is because, I mean, we're looking at $3.36.90. What do you mean you keep up with those? Like, those are the ones I pick because of the smallest balance, so it's easiest to pay off.

Oh, you pay this off every month? Yes. Well, I have three of them, so some of them don't get paid off. Well, you didn't have any interest charge, but we were spending $336 here. When we're trying to get out of debt, we're going to a Mexican restaurant in Tinky Mini and Tinky Mini, or Tinker, sorry, and China House. some experience and credit report you paid for. How much was that? $24.99 instead of just getting your free credit, which you can get annually or just, I mean,

I think I use experience. So that might have been, I don't know why. Well, it cost of $25 bucks and Red Coyote running and a Spotify subscription and other Experian credit report. What is this? $25. So it's $50 in a month of basis. That shouldn't be.

I'm going to look into that. Yeah, look into that. I don't know what that is. I shouldn't have. But you're spending this money. Well, we're trying to get out of those other debts. Now, we have another capital one. This is a Walmart card gray.

But no, there is interest charged on this one, $12.39 of interest. Why? You pretty much paid off the balance. What's happening? It might have been like one of the times when I paid another one off fully and that one had a little bit. If you're not able to fully pay off a balance on a card, no more spending on it, I would, in fact, chop it up because you've demonstrated that you're not a credit card person and that's fine. But pay it. off. I just, I don't fully get it. And Veterans Canteen, Taco Bell, gas, okay, I understand gas,

and then McDonald's and Supercuts, Arby's, McDonald's, okay, fine, because it's relatively cheap as far as how it's got 35 bucks, actually. No, go to great clips if you're going to. I tip to 20, though. Oh, okay, Tinker. That's why I don't go to sit-down restaurants because I always over-tip. No, you don't go to any restaurants. Yeah. I, that's the, what is it? I rationalized fast food like that. No.

Yeah, I know. Little Caesars. I have some cheap pizza. Yeah, but it's money you don't have, dude. It's literally money you do not have. Yeah. Because you're getting charged interest on here. It doesn't make sense at 30%.

Pay this off. I'm not going to put this on your overall debt because you did pay off the previous month, but there's interest. I'm confused. This isn't good to be clear. Yeah. But I'm a little bit confused. fuse. And then there's a capital one quicksilver. Nothing happened here. Actually, no, you paid off a balance, but there was $52,000 purchases. So we're continuing going and purchasing nothing. So what did you do? What is this Tinker mini thing? Oh, Tinker is on base. So it's either gas or it's like... Why are you still on base? No, I just go on base to. They have a grocery store that like you have to have a certain like it's like tax free. You can't go there unless you have a like a, um, no, you're still spending so much freaking money. What's the tinker store? Well, it can either be.

gas on base. It can be the commissary, which is a grocery store, like their PX, which is like their department stores. So, like, you can get, like, clothing and towels and home good stuff there. I don't have military star. Is this a credit card? Yeah, it's a credit card just for on base. Can't use it anywhere else.

Oh, we already know you love to spend money on base. Yeah, it's maxed out. This is maxed out? Yeah, it's $1,500 limit. It's like $14. Something. Yeah, it's at $14.38.92. Jeez, dude.

Okay. With a... Again, you did $20 of payments, but we did $77.54 purchases. Why? That was gas. Cool. But why? Are we doing it on a card that you're trying to pay off?

It was like, I'm... I'm already at the end of a lot and the military star I get discounted like 15 cents per gallon if I use their credit card on fuel. So I was like, why not? Like, I'm already in a pickle right now. Yeah, that's for sure. That's how I'm feeling. I'm just $30. Sorry, $16 of interest.

It's wasting money. Yeah, you're saving this. lovely few cents on gas but you're losing 14.74% in interest. Do you think that mathematically works in the end? I'm not sure. I'm not sure. That's how I rationalized credit cards

to begin with. This discover card. That was electricity. It was electricity for my new house. I had to pay $6,200 in electricity when I first moved in. That's not what I was even dying about. The thing I'm dying about is the...

No, the balance of $4,500. $4,600334.64. My dude. It just doubled. It's almost doubled where we're at right now to $92 purchase. Then we did the electric for $156.13. No interest. So it's interest free right now.

For I think like 14 more months or 13 more months. I don't come before you know. I'm not. Yeah. I'm not. The $93 minimum purchase. Minimum monthly payment.

Then, yes, it was. But then what's also Blue Crew? Because you went there, medical services? Blue Chew? Yeah. Okay. From, yeah. Extracurricular.

Keep me sane. Oh, huh? No, no. For their, like, penis pills. Blue Chew. Oh. You hear it? It's on, like, Instagram and stuff.

Yeah. All right. Yeah, that one was over me. Yeah. Okay. They target added me, I guess. You said you have debts on these things, these cars, right? A car or a truck, rather.

What's the truck? 2022 RAM,500. A true American. Oh, yeah. Sunderner. It is American's favorite thing to go get into car debt, so. What is the minimum monthly pay? What's the debt amount?

All right. I'll just pull it up No, that's your payment? Yeah. Buddy! This is... It's a fourth of your freaking... It's more than a fourth of your freaking take-home pay.

Yeah. Going to a single one of the things you have to drive? When did you possibly... When did you get this? When did you possibly get this? Like two months or two weeks after I got my house. When was that? November.

How'd you think this was a good idea? Who in the world? How? How did you think this was a good idea? $51,536 and $14.14 a debt. So like I said before, I am, I'm looking to have this car for the next 10 years. So that's kind of why I rationalized it. It doesn't make financial sense at all.

I know it doesn't. But before I drove this car, I had a 2015. smart car and I just didn't. Great, good guess. Yeah. No, but probably would have lasted a while. $300 for a tire change. So it was like I was, yeah, because

it's just high maintenance cost on them. And I, it was... How does $300 for a tire change every now and then equate to going into $1,126 a debt on a monthly basis? Of which $700 of it is going to interest currently. Yeah.

It doesn't. No, it doesn't. What does he? interest rate on this way too high like 15 and i want to refinance i just need to wait for my credit to increase because now it's too low and i'm doing it good yeah i can't see the interest rate but it's like 15 15% yeah anywhere around there is absolutely disgusting so whether it's plus one minus one doesn't matter honestly at this point all right you said you have another thing yeah a bike motorcycle what year harley 2019.

2019. Harley, what? 8.83. Iron 8.83, but yeah, 8.83. We still have a total debt amount on a toy of 10,000. When did you get this? I got that like, death, absolute death. May or June.

Okay. Of last year? I've had this for a minute. 259, 68 minimum monthly payment. And the interest is a little high on that, but then same thing. Like, I got the house. Well, what's your interest? I think it's maybe, I think it's like 12.

I know it's over 10, though. That's why. Yeah. Anything higher than 10 is. What's the loan length for this? I cannot see. It should be, I think, 72. Pretty sure.

What a toy? And what's the loan length on the truck? Same. For. Yeah. Dude. It's brutal. This is probably like $200 towards the debt.

Is there any other? Yeah. Yeah, there is. It's a mortgage. What's that? It's lower than my truck payment. Because cars are more important than a place to live in. But I don't have to pay property tax. Really? Because you're better. I did not know that was a benefit.

Yeah, my disability status. Oklahoma specifically. You should have got a place here then because property taxes are pretty much the death. Really? You would have saved so much money. Yeah, I just saved like $700 because they almost, like they sent me the bill for it. So your mortgage amount is $30,000 higher than your average property value in your neighborhood. Not that that necessarily means the value of your house, but...

Yeah, the house, like, it's increased significantly from when she... So the lady bought it in, like, 2015 for like $70,000 or like $74, and then everything's in that neighborhood, just gone up, and it's because I'm less than 10 minutes from $10,000. anchor air force base so i got the so it's like it's like an older person neighborhood that they're starting to renovate and i i might have pay overpaid on the house but at the same time when i closed on it i didn't i didn't have to pay any money and i actually got to check back for like 1200 because i put 1400 on uh um earnest money got true interest uh like 6.75 I barely, yeah.

Yeah. 6.75. I kind of rushed into this because I wanted to snatch a good, like a decent interest rate. Yeah, of course. With my credit. That's the majority that you're paying right now. Isn't it just because there's the beginning of the loan. Mm-hmm.

Is there any more debt, dude? No. All right. That's it. I know it's like $215,000 in debt. All right. You're basically losing in interest with all your debts on a monthly base somewhere around $1,900. In interest.

On a monthly basis, across everything. I'd like to have that. in my pocket. Yeah, wouldn't that be nice? Big heavy hitters there are vehicles and then also the mortgage, obviously. Okay. Now, when I add up your bad debts, I am not going to include the mortgage. You have $74,671.71 debt.

Bad debt. Like, legitimately terrible debt. And then you have the mortgage on top of that, which the interest rate is not the worst. it's not the best. Yeah, that's an uncomfortably high number. It makes me disappointed myself. Of course, that's compared to 45,984 you get from the VA on a yearly basis. So your bad debt was like $25,000 higher.

Isn't that insane? It's that truck. I know. It is that truck. The main corporate. Probably going to have to sell that truck. Been in the back of my mind, but it's like... Why haven't you pulled the trigger?

Because I had to put money from the upside down vehicle that I had before onto it, so I know it's upside down. So I wouldn't get what I would have paid for it. Because that truck's probably worth like 45, so I'd probably lose five grand, five, six grand right off the bat. I think that's going to be worth it in the long run with this interest rate and how long it's going to take and then 70. Yeah, no. Mm-hmm. But we're, let's do the math.

your minimum monthly, minimum monthly debt payments are 2,67. So you only have $1,000 left over on your minimum monthly debt payments. That's insane, dude. Agreed? Absolutely, yeah. Minimum monthly debt is 70% of your take home. Not including what you get from your parents because, you know. Yeah, I don't count.

Yeah. I wouldn't count that. And that's stopping too. Yeah, exactly. They're moving. Officially? Within the next four months. I just don't have a...

Yeah. You can use it as bonus right now if that continues, which I wouldn't even continue it to try to get them on their own feet. But if you do, use that as bonus to get towards things pretty quickly. Yeah, partially the... A good portion of the amount that they're giving me is supposed to be paying back the $6,200 from the electric that I had to pay. because, I mean, they're, they saw me move in and, like, oh, we want to help.

And I was like, you all don't have to do that. And then they wanted to. They're my parents. And they're living there. Yeah. So you think your truck was worth, like, 42? Or what? Maybe.

What are you thinking? Where do you see? I just, I don't. I'm seeing it all the way up to, like, 44. So it depends, like, on if you see, like, the model you got and stuff like that. What do you? It's like, it's the. classic tradesmen, so honestly, I don't even think it's worth 45.

It might be 40. Can you get around on your motorcycle? Yeah, it's just weather permitting, and then you can't hold a lot of stuff. You know, like if I had to go grocery shopping. You could hold a decent amount, though, right? Get a bag, a couple bags. He has a car, too, and she's about to... Your mom?

Is that your mom? No, it's my girlfriend. Oh, okay. Yeah. Sorry. No, you could. Do you live with your girlfriend? girlfriend live with you she's about to move in with me yeah we're just setting it all up right now

okay so there's a car so yeah i would rather you be okay so this makes sense before we get into your budget and stuff like that the first thing i would do leaving here i see your credit scores like 680 something like that that's uh like without all the credit utilization you have credit car on your phone no but i use uh um experience can you pull it up yeah 664 i am I'd love you get to that like 670. I think that pushes to do it next level if I'm not mistaken. I think it's 675. So what I would like you to do is going to suck.

But do you want to get your food together? And are you willing to actually sacrifice, like actually sacrifice to do it? I think that means the truck's gone. Well, that's a start of it. Yeah. But your delay makes me nervous. Yeah. I mean, it's not what I want to do, but it's like the best.

No, of course not. It's the. But like, are you going to be an adult? Yeah. And take care of it. life. I mean, I'm 30, so I, it's usually a good thing to. Okay.

So, uh, you sell your car, probably private market, Oklahoma should be a lot of cowboy hat people ready to get in a Ford F150, 2020. Well, Ram, not Ford. That's, one's fighting words. Listen, I, I don't know. I'm just kidding. I don't know these things. I don't even know what.

They're taking up space on the streets that should be dedicated to humans, but that's my opinion. either way sell it highest you can private sale feel free to check out car max you're not going to get anything good for them

but feel free if you can sell it boom you get it borrow as a personal loan like what is necessary at probably not a great interest rate but what is necessary to pay off that truck debt in total

because this at like 15% where that number go the big of 700 well that 700 and interest you're losing, but it's $1,126 a month gone. Then, you know, it's a fourth of your income of $51,536. That's so much money, 15% for 72 months.

It makes no sense where if you have to borrow $10,000, $15,000, you know, that's such a subtraction in debt. And that's incredible. I need to know before we put together a plan. That's the step number one to even come close to improving things. Will you do that? I really don't need a drive. I got the truck because I wanted a new vehicle, and I got the taste for it.

And now it's... Is that a yes then? Yeah, that's a yes. Okay. Yeah. So we can swap this when we start our plans of attacking this from $51,000 to about $15,000. But you have to agree to doing that. And you have to do that for this to work.

Yeah, I'll just ride the Harley. Okay, so you're doing it. Yeah. Okay, good. So we now have $15,000. And we're going to call it $500 a month. Cool. So this immediately decreases your minimum monthly payments by $500. So this will bring it down to $2,100 a month, just about. Now, those are your minimum monthly payments, including mortgage. Then we have 303 for car insurance going forward, $64 for your security. going to give you $300 on groceries. $300 for groceries. Now, with the VA and stuff like that, do you have any ongoing medical expenses that you worry about on a monthly basis? No, they take care of me pretty well.

Okay. I don't pay for anything medically. Giving you $100 for, like, total paper and all that crap to keep the house in order. Okay. $300 for groceries. Yeah, and you've got to pay for gas for the motorcycle and likely give gas money to your girlfriend to help out because you're probably we're going to, you know, borrow the car here and there for grocery runs, things where you need an interior. Well, she works at a grocery store, so it's just, well, I'm just assuming.

What do you think you're going to put in gas with a little bit of help there? And then also for your motorcycle on a monthly basis to get around. What do you think? I'd probably say about 200 a month, max. Okay. You have any other ongoing monthly. I saw Microsoft subscriptions. Cancel all your BS subscriptions.

You do not need them right now. You're not having fun. that costs money. If you guys want to go have a dinner, that's fine. She can pay for it. You're getting on of a death hole. So you do not spend money and have fun. You can have free fun or someone else can pay for it.

Is there anything else on a monthly basis that you have to take care of? ATT, like internet and phone. How much? It's $1.50 a month combined. And that reminds me. Gas and electricity. How much on a monthly basis? My gas has been kind of high.

I just replaced a seal in my shower that was leaking hot water. So it was like constantly. So it was coming up to about $150, $200 a month. And then electricity? Electricity is about $100. We'll call it $250 then. And then there's a, so there's gas. It's its own bill.

Then OG and E. which is the electric, and then there's Dell City utilities, and that's like 75. We'll call it 300. Okay. Okay, so what you need to survive on a monthly basis in your budget is 303 to your car insurance, $63.99 for your security thing.

Your debt, which includes your mortgage, minimum monthly payments here, $2,100. then $300 for groceries, $100 for things for the household to keep it surviving, $200 for gas, $150 for phone and internet, $300 for utilities. Do we see an issue? That's a big issue. Because guess what? It's actually higher than this to survive right now because of your truck. This is with getting rid of your truck.

Right now, minimum to survive $3,517 bucks on a monthly basis. from the 3,832. Right now you've been subsidized from your parents. That's no longer going to be happening. Coming pretty soon. I want you to get into the cannabis industry. But right now, what you need to do is you need, in order to survive, to bring in an extra $1,000 to $3,000 on a monthly basis starting today.

Is there anything from the past trauma and everything that is preventing you from working? Somewhat. I don't like to, like, verbalize it. because it's like I don't want it. What do you think you could not do though? Or what industries do you think you could do? Or positions? Because I want to respect it.

I truly, mental health is like top level important. Okay, let me throw out a couple and tell me if you think you could do it. You think you could drive Uber Eats around. Ah, crap. Well, you're going to be in your motorcycle. Yeah. Well, I did door dash before I had the truck. Okay.

Do you think you could drive a semi again? Yeah, I have to get my CEO again, but... How much does that cost? How long does it take? It depends. I don't know what I would have to do to get it back because I've already gone through everything. Look and do it because you have experience and I know that's an industry that's still very much in demand for getting your workers. And I think you need to bring in an extra couple thousand bucks.

What do you think you could bring in extra on a monthly basis from that? It all depends. But the last job I had, I was making 19 an hour and I was guaranteed 40 hours a week. and overtime if I wanted to. What do you think you could do, though, an extra $2,000 a month, an extra $3,000 a month hitting your bank account?

From just trucking loan, at least $2,500 to $3,000 a month. We'll call it $3,000. Because what you're going to need to do, really don't have any wiggle room here. This extra $3,000, month number one, you pay off Navy Federal.

And then the month after that, you know... To discover the Navy Fed are the two highest ones. We have the small Navy Federal. So you detect the one. You're going to do the baby steps because it makes sense from your situation. Okay. So you go smallest to largest of this debt, which now the truck is not included, but $15,000 is because you had to borrow $15,000 to pay it off, right? Essentially, you'll have like $38,671.

And if all that extra $3,000 goes to it, it'll take a full year plus a month. but that's without having any paid for fun doing anything. This is if you work your butt off. And this is only if you do that thing. Just to show an example, if you don't bring in any extra income, this is going to take almost like the rest of your life because you have nothing extra.

You have almost no wiggle room between survival and then paying things off more. So unfortunately, this is how it lays out. And then you should still have some kind of emergency fund that would cover a large expense, maybe just $10,000, $15,000 set aside. And also, this is not including paying off your mortgage, to be clear. Yeah.

And then we still want you to invest further because I have a feeling that, I mean, $3,500 a month right now, okay, that's fine, especially in a city that's a little cheaper like that. But you'll probably want more for retirement, I'm assuming. Maybe not. But I think that's kind of like why I got into the debt I am in right now, because, like, I was really just spiraling. like what what do I do with my life like what am I I already feel like I'm retired like that's okay and like you know technically the amount of money that I'm getting is like if I had 400 to 600k invested that's the dividend I'm like that's what I looked at and I was like then what do I do now like what do I do at myself and I was like all right a bike a car you know like a house and and as soon as

I got my house I was like all right what else do I you know why do I need credit now because like I don't Like what so I kind of like In the back of my mind halfway just like didn't really Care if I was in debt the rest of my life but I don't want to be I don't want to you know I I don't want to fall into that group but like it's almost like I guess it's the mental health thing it's like what's the point you know let me just whatever Are you seeing a therapist? Yeah good it's all paid for it to the VA so yeah I'm doing a sleep study too that they're paying for to make sure I sleep properly so I know that I know that They're helping me out big time.

Okay. Well, goals that you should absolutely do. I think you should get that trucking job again. Maybe, unless you can get in the cannabis, like, real quick, and make this kind of money. But if not, step back for a year, pay this off. Step back for maybe a year and a half, build up an emergency fund and pay all this off.

And then because all of a sudden, your biggest expense here outside of your mortgage, your minimum monthly payments are cut down, all this bad debt is paid off. They'll probably want to maybe go another six months, get a cheaper car like $10,000. So maybe this is a full two-year process. You have an emergency fund.

All this bad debt is paid off. And you haven't paid for a $10,000 car. Then go into an industry you're absolutely passionate about, even if it's not bringing in a bunch of money. Well, when I say I haven't started the cannabis industry yet, it's like it's a verbal agreement. Like we're friends with the guy. And he has a large-scale farm that he just, he said every day you work.

Like, that's what. why it's helpful for me because sometimes I just like can't get out of bed like I just I can't find you know yeah like my mind is working against me yeah but he said every day I work um it would be an eight hour shift I make a hundred bucks for the eight hours mm-hmm or I can pick a ounce of bud whichever one I want well preferably the money but yeah no yeah I would definitely pick in this situation yeah still not great I mean but if I work you know 20 days that's two grand a month or even if I did every single day you know that's kind of like I want you to do what you want to do either way whatever gets you to bring in an extra $3,000 hitting your account after

taxes on a monthly basis that's what you need to do in order to get to paying off all the bad debt having an emergency fund and having a paid for a $10,000 car in two years without having any paid for fun so the more money the better but that's what it takes does that make sense I want you to tell me knowing yourself knowing what you want knowing all the information you in front of you, be realistic, what are you actually going to do when leaving here? I'm getting out of that truck for sure. I love it. It's beautiful, but I can feel the stress from it.

And I try to convince myself that it's, you know, I can handle it. But like every little thing, like, it's a constant reminder of a bad decision I made. I rushed into it. I wasn't even playing. on getting it that day when I did. It's just as soon as they, same thing with the motorcycle. They approved me and I'm like, yes, cool. Because I don't, like, I don't get approved for things that much.

So as soon as it, and that's why I have all the credit cards because they started giving me credit cards and I was like, yep, cool, cool, you know. And so it's, that's really the biggest thing is the truck. Because I, like, yeah, I have a lot of like, fast. food spinning on there, but for the most part, I'm trying to be more health-conscious, so I go through spurts of fast food and then not eating out. We're not eating out anymore. And I would recommend chopping up the credit cards.

I really would. Most of them aren't in my wallet. Yeah, and you need to budget. That's another thing I didn't say. So, I mean, you can use the FIS card that I recommend. It helps budget and helps build credit at the same time to have a card. So, I mean, that's cool. you can also

I mean I try to provide resources where I can if you don't know what you want to do and you want to get certified in something else you can use course careers but I think the trucking thing might be worth it right now but this makes me I'm very scared the trucking thing kind of

I'm only like only for a couple years resistance that's what I did in the military and it like brings back okay so again I said whatever you want to do that can bring in $3,000 at the taxes so it's just an example you can find your way

and getting certified can also help in different things. But I'm very nervous and I hope you get out of this. So please keep us up there. Oh, I will. For Taylor, that debt is pretty much as bad as it gets. I mean, when it comes to that truck debt, that's as American as it gets in. Trauma, unfortunately, can define a lot of life,

but I'm happy he's getting the help he gets. I now hope that he helps himself get out of this debt situation that he has found himself in. He has a bright future. if he is able to dig out of this hole. But for right now, Hammer Financial Score, one out of 10 because of all that bad debt and no emergency fund.

And practically, no, there is nothing safe for retirement. So one out of 10. Make sure to check out all the resources in the description below. And don't forget to follow my Instagram and Twitter. Thanks.