Financial Audit - 24-Year-Old Is Drowning In Terrible Decisions

Episode Date: June 21, 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 Job, income, and rent 01:45 EXPENSIVE public transportation 02:46 She has a spending addiction! 04:10 Spending EVERYTHING on Uber Eats!! 06:05 This is STUPID spending!!!!!!!!! 08:30 This is so unhealthy... 11:00 YOU NEED A WAKE-UP CALL 12:10 Taking out payday loans... 13:50 You need serious help 14:30 Credit score 14:50 Missing her credit card payments!!! 20:50 Student loans 22:15 STOPPED PAYING ON HER DEBT!!! 26:45 THIS IS INSANE 29:51 Time to clean up this MESS 32:25 Owing her mom THOUSANDS of dollars!!! 34:32 This is going to be so hard... 37:59 You need serious help 41:01 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

As the crispy chicken sandwich from 7-Eleven, people always call me loud. And I'm like, yeah, I know. I'm crispy. Did you expect me to whisper? If you want quiet, go eat some soup and reflect. Look, I know I'm a handful. I'm bold, I'm juicy. Throw some pickles and barbecue sauce on me, and baby, I'm a whole meal.

And with seven rewards, I'm just $4. Quiet. No. Krispy, saucy, and $4? Very. Only at 711. Valley 362326, participating stores only well supplies last the app for full terms. If data management is slowing down your business, you need the Intuit ERP.

If one entity is here and one here and one here and one here, you need the Intuit ERP. If scaling your business feels like start starting over, you need the Intuit ERP. Intuit Enterprise Suite is the AI-Native ERP solution that consolidates, migrates, and automates, all in one place. Learn more at Intuit.com slash ERP. My name is Genesis. I'm 24 years old. I'm from New York City. I currently live in Jersey.

What do you do in Jersey for a living? I'm a leasing agent. For like an apartment complex? A real estate company. Oh, okay. So what do you bring in doing that? I make 60K. 60K?

60K? Any types of a commission? I'm not exactly sure what this job is exactly. No. No commissions. So you're just trying to lease out properties for this company? Yes. We actually work in the public sector, so we're like low-income housing.

So $60,000, Jersey City. Jersey City, expensive, I'm assuming. I mean, it's right there, right across whatever that body of water is. That's pretty much a river from New York City. Yeah. I'm a little bit north from Jersey City, but I'm still like, like I said, like 15 minutes from the city. Yeah. What's your rent?

I pay $500. What? How? Yeah, I live with a very, very, very, very good friend of mine. Oh, that must be a very, very, very good friend because... Yes. Her parents, they know me my whole life, and yeah, so... Now, you live that state income tax life.

You live in, like, the highest tax state, if I'm not mistaken, across everything. Well, maybe California. I haven't looked at that in a while. Let's see a paycheck come in. Okay. $1,529. Yeah. Yeah.

At that point, I was... making 50K. So I got a raise recently. Oh, very good. So is that, are you paid biweekly or semi-monthly? Byweekly. I work in Brooklyn. So I commute. Jeez, so you have to commit through Manhattan and then into Brooklyn? What does that commute? Um, it's not terrible. I think I've been used to worse commutes. It's like 50 minutes to an hour, but I'm going to be relocated to the main office now, which is in the town. So I'll cut it by like. How are you commuting? I take the bus. And, And then I take the train. Okay.

How much does that cost in you? Monthly, it's like 315. Jeez. It's actually crap. Yeah, so that's... What's it going to be ish once it's relocated? The same. The same.

It's just less time. Well, that sucks because it takes you down to like just below... That takes you like $3,400 all of a sudden you have left. Luckily, your rent is fantastic. Again, I mean, that's going to blow my mind. Now, before we just get into your money and stay tuned because it's going to get interesting. By the way, feel free to subscribe. Trying to get to 250,000 subscribers and, you know, we're getting pretty close because all of you amazing people.

So please consider that. I want to hear from your perspective where you think your financial situation is. It needs vast improvement. It's not good. have a spending addiction. Oh, geez. Yeah. Yeah, I need to get it together.

Spending addiction. So that's self-diagnosed. If you know it's self-diagnosed, why are you still spending? Have you tried to do anything? Therapy, are we any kind of budgeting? What have you attempted to do? I haven't attempted therapy, but I tried budgeting. I tried twice.

I didn't stick to it. What kind of budgeting have you tried? Just sitting down, just, you know, tracking my monthly. And like a spreadsheet? Yeah. So you haven't tried an app, you haven't tried like an envelope system? No.

I did try the envelope system. Go on. Many years ago, but I didn't stick to it. Like after a month, I just... Why didn't you stick to it? I'm curious. We kind of needed to know what's going on in order to get over the hump once and for all. I don't know.

I just resorted back to spending like a maniac. What do you think is triggering that? What is it like... It's a symptom of what? Do you think it helps with anxieties or just boredom or depression or what do you think it is helping? That's a good question. Bortem? Maybe some underlying sadness.

I don't. Where are you spending the money? Are we going out and spending money? Are we just sitting there clicking, clicking, clicking, clicking? So I have, I've realized, doing some introspect, I have cycles. So like, I'll have, for months, I'll, like, do Amazon. Now it's Uber Eats. That is, yeah.

Oh, that's bad for a couple reasons. Because one, the majority of options, you can get healthy options, but the majority options, probably not going to be the best for you. I know this. Yeah. So, I mean, that helps, that hurts in two ways, typically health and wallet. Yes. Yes.

So what does that look like to you? Uber eating every day. Uber eating multiple. Multiple times a day. Multiple times a day. Yeah. That's intense. Yeah.

What do you Uber eating? Are these meals? Are you even getting, are you like Uber eating everything? Because I know you can get stuff from like convenience stores and grocery stores and prescriptions. Like, what are you doing? Just meals. Okay. Yeah.

Now why do you think? Do you cook at all? No. I'm lazy when it comes to that. But I need to get cooking because. I'm obviously living above my means. And so... That's an insanely hard habit to break.

Once you're in the convenience of it. Yeah. Okay. Well, I mean, nothing better to... Well, nothing better to do at this point than just jump in and see where things are looking like. We have a checking account with Capital One. You started the... This is Euphoria Calvin Klein, the new Elixir Collection, featuring three-per-four-four-four-one.

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No. I don't feel that. No. Yeah. I mean, I'm going to go through a lot here. I can be a little repetitive, but it's just, I need you to know just how insane. this is this pile, pile of stupid spending. And the only way for me to do that, I think, is just to scream them out and for you to know just how chaotic this is.

We're doing Uber Eats. And these Apple bills, I'm certainly thinking, are these like Apple pays of Uber Eats? Yes. Okay. So, because again, I don't know. They could be app purchases. They could be Uber Eats. I can't see.

But we're just going to call them like an Apple payment for now. but we have Uber Eats and Apple Payment, Apple Payment, Amazon, Amazon, Rubin Lunch, wines, Uber Eats, Uber Eats, Uber Eats, Ossia, Uber Eats, Starbucks, Dunkin'Outs, Uber Eats, Amazon, Cash App and Someone, Golden Corral, KFC, IHop, Ross Stores, Uber Eats, Uber Eats, Zellen Out, Zellin out, Zellin out, Uber Tripp, Uber Trip, UberTrip, UberTrip, Uber, UberTrip, Uber, Uber, Cash App and Out, PayPal, Fashion Nova, Rubin, Uber Eats, Uber, Uber, Uber, Cash App and Out, Amazon, Uber-Trip, bagels, Dunkin' Donuts, fresh Italian something, Uber Eats, Uber Eats, Instant Car, Uber Eats, Y Deli Liquor, Lift cancellation fee. We're getting a $7 cancellation fee, great. And something bagels and Uber Trip and I Bon Payne and Hudson, Duncan, and Uber Trip. And Uber Trip.

We're just going crazy. We're Zellin' money out. We're getting Chick-fil-A. PayPal and out. and Uber Eats and Lyft ride, cash app and out Uber Eats, JetBlue, Zell, Zelling out $300 and Apple payment again. Amazon, Apple payment, JetBlue, Wingstop, PayPal, Uber, well, that's Uber. So you're paying Uber through like different methods sometimes just depending on... Yes.

Yeah, that's not a good sign. And Boss Revolution, PayPal. restaurant com uber trip lift ride apple payment uber eats uber trip uber trip uber eats and if we've just just looking at these just looking at these you're not getting a single healthy meal it's all crap you're just putting crap into your body yeah i try at times like i don't get fast food so i get but you know i don't see an example of that in here i mean the apple payments some of the things that are hidden like the Hey pal with the Uber. Like, I can't see what was ordered from there.

But the restaurants that you go to that aren't through Uber, this is crap, crap, crap. Yeah. Have you noticed anything with your health weight since you started this Uber Eats addiction? Yes. I have gained weight in the past year or so. Okay. So, yeah, I'm trying to get back down. It's hard.

I mean, I struggle with my weight and eating as well. But this is bad when it's coming from both the health perspective and the, you know, financial perspective because overall the finances are not in a good place but let's talk about a couple other things that i notice in here what is this we have after pay we have clarna affirm after pay they just continue through here clarna clara after pay after pay affirm clarna clarna clarna after pay is i mean this is insane clara clara after pay clara clara what the so i have paid off today i have paid off most of the afterpay and the clara balances what were they what were you even doing um i think it was shopping i that month i actually

went on vacation i shouldn't have um for obvious reasons Yeah, very obvious. So I shopped. Yeah. I had a, I had. So what were you shopping? Like, was this beyond who breeds? This was just other bonus shopping?

Yeah, it was just like clothes and, you know, non-food related things. How do you feel about all this? This is, I need to make sure we're seeing this from the same perspective here. Like, I'm beating in only to just show the extent of how terrible this is. yeah um it's bad at the you know a couple months back i knew i had a problem but i never addressed it um i just thought well it is what it is that's what i thought but now i've really really like i really want to like fix it this is not you need a wake up call yeah can't live like this forever well i'm glad you're not trying to both justify it because there is there is no reason to justify

this, especially as we go throughout the finances. This is just delaying your inevitable financial failure, essentially. Yeah, I agree. What can you do in your own life to stop this? What can you do? Well, definitely to eliminate Uber Eats. I need to delete that app. I still have it.

Well, you can easily redownload it, so. That's true. But I need to start cooking. And also just really be conscious. of every, like, every purchase I make. And, you know, do I really need this? And yeah, I need a budget. I definitely have to.

You need a budget. That's the name of an app. You need a budget. Great app. I recommend it. It's worth the $10 a month that it is. Because this, just starting here, we just started. And I'm scared.

There's a couple of other things I wanted to mention. withdraw from earning active pay what's this what is this because it pops in a lot so earning it lets you borrow before you get paid

yeah I've been doing it I don't even remember when I started how long have you been doing it a year maybe more how much do you do it in here this is insane. We have it.

This is just from December 7th. $103, $1003, $103, $104, $104. That's crazy. That's just a day that you're borrowing from your future self. And then here on the 22nd $100 for the dollars, $104. And it continues $100, $100, $100, $104. To do what? Just so you can buy more Uber Eats?

Or is that to pay rent or like, What? What is the situation you... Mommy. A Lego Duplo set is a gift that always clicks. Let's go. And clicks. And clicks. For all the kids who love to stack and play, choose a Lego set.

A gift that always clicks. We're in where you're like, I need to borrow for my future paycheck in order to do this. I guess is to keep buying Uber Eats when I'm low on my money or if I need to pay a bill or something. That is definitely an addiction, and that is hard. I can talk about personal finances all day any day. I cannot talk about mental health. Like, I'm not even close to being licensed to speak on mental health.

But there are, there's some stuff here. And I think a therapist, I recommend it to everyone no matter their situation. But I think you need to see someone. to get over why these habits are building and why you can't stop them, because they have these addictive tendencies. You're showing these addictive tendencies. And that is not something that I can specifically say, all right, just don't do it.

But that's a scary start to the situation. But let's continue going forward. I mean, your credit score in general is usually, well, it's not always the best indicator of a financial situation. but when we see 550 or 574, we know that something's up. Yeah. Okay. I don't see more than that.

We might have you pull up some stuff, but we know that's where your score is sitting at, at least through Discover. That's what they think your fight goes out. We have a couple credit cards, and then we have some other debts. So let's start with Capital One. Well, 1,000, 533.

you owe on this with the minimum payment of $142 but guess what we only made a payment of $68 which means you were given a late charge of $40 a late charge on the credit card that's only $1,530. It's not a crazy credit card balance in terms of the American standard and certainly when it comes to your income and what comes in a month that's practically a third of your income you know it's closer to a half of your income is the entire balance yet we can't even make the minimum payment which is barely a percentage of your income why why the fuck are we not having a minimum payment done

I don't know why I guess I chose to pay less to keep is it not auto no why I haven't enrolled in the auto so to be clear you have chosen being able to order an extra Uber Eats instead of them making a minimum monthly payment on a debt that you have. I think so.

And then we have interest charge of $31.37. So not only are we making, you know, having late fees because we're not paying a minimum monthly payment, which, by the way, for your take-home pay, take-home pay is just around 3 to 4% of your income for your take-home pay. You can easily make that minimum monthly payment. And I am very upset that you did not. I'm not upset when people don't have cards. or I'm not upset when people have debt.

I try to make it very clear to people why, and I go hard on people so that they know how bad the situation is because a lot of people come in here and they're just like, oh, a debt's debt. What is this? But I am upset seeing a not making the minimum monthly payment and seeing you get knocked $40 because you chose to order something on Uber Eats instead of just being a responsible adult and make a minimum monthly payment.

Yeah, it's, I'm ashamed of that. I should have just paid the whole minimum. Your next payments in a few days. How's that looking? What's in your checking account right now at this exact moment? I believe 300. Okay. So about half of that would have to go to this.

Are you going to pay the minimum monthly payment on this in a few days? Yes. Yeah, 24.42% interest on this. And if you only did the minimum payments, which we're not even doing that it would take you 10 years to pay off and you'd pay a total of $3,453 and $1,533. So it's time that we start making progress and we'll talk about the light at the end of the tunnel at the end, but right now we're deep in the tunnel. We're in the, just the worst of the worst of this.

So January, when did you open this card? This was a couple years ago, maybe. because I think it's looking back interest you're just continually paying like 25 bucks of interest like forever yeah I didn't even know that I didn't even know interest on this card I just been very ignorant

I didn't know you just didn't know interest is accruing do you not know there were interest on credit cards and balances yes I just didn't know the amount. I never decided to even look into it. Yeah, I mean, yeah. It feels better to be blissfully ignorant, right? Yeah. I guess so. I'm slightly happier about this Discover card, but I'm not happy about the overall situation. Obviously, you're not either, which is good. I'm happy that you're having that wake-up call moment and we're going to start doing things, but $703. Not the crazy

is balance. That brings your entire credit card, unless there's, I think this is your last credit card, right? There's one more card that's not there. Ah, okay. But interest charge 1411. You at least made your minimum monthly payment due of $70. Now, this is where minimum payments become kind of hard. You only have $300 in a checking account, and we're getting pretty close just the minimum payment on these two cards

equaling what you have in your checking account. Yeah. That's unsustainable, completely unsustainable, and the purchase is on here, the interest rate is subject to 2.24% in variables. So that's what it's at right now. I would love to see the interest that was charged last year, but it's only showing the year we're in, of course, which is fine. Let's start keeping track because we need to get out of this.

Okay, so we have something here. I don't know exactly what this is for, and you can tell me. It's a personal loan. We have a personal loan. Why do we have a personal loan? I took this out about two years ago when I got fired from that job I had. And so... Because you didn't have an emergency fund, I'm guessing.

No, I did not. That's why I talked about emergency funds being in an emergency. So you had to borrow to survive. Yes. 23.47%. Trying to be a bit more mindful of things you buy for you and your family? Well, when it comes to laundry, choose All Free Clear. 100% free from dyes and perfumes.

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Yes. What's happening here? Yeah, it's on auto pay, so take it out. I believe it's like 83 every month. So you financed the total of 2444, but the total you will pay is $5,027. This is the first time. Okay, I can't say this is my first time seeing. this because I signed that form, I didn't read it.

And I wish I could just, you know, go back in time and really talk to myself. Yeah. This is going to go all the way through 2026, three years from now, September, three. So three years from September of this year. It started in 2021. Wild. So we have 83, 82 a month. Okay.

And then we have more goody. These look like student loans to me. Yes. Okay. Are these all federal? Yes, they're all federal. Okay, so they are in COVID-19 pandemic for bairns. Okay.

These interest rates are not crazy, which is good. One's creeping up to about 5% a group of these loans. The rest are between 2 and 4, it looks like. Yep. Okay. Yes. So the highest one's 5. these are not insane as far as loans go.

We have $23,358. Where did you go to school? What did you study? I went to SUNY Empire. I studied business administration. So I got my bachelor in that. Good. Very good.

Okay. Did you work at all throughout college? Yes. And I guess these minimum amounts are going to be around like $200, something like that? Yeah. That's actually the estimate it said on NEL. net once they start, I guess, like two something. Yeah.

Okay. You said you had another credit card that I just don't see? Yes, I have a Macy's credit card. What's owed on it? Right now, I believe it's like $370. $370? Yeah. What's your minimum monthly payment?

I don't know at the moment. I like stop paying it. Why? What? $370. You're so close. What? Yeah.

So now I'm not even sure about the minimum, but um Pull it up. Do you have it on your phone? No. I don't. I requested a statement, but um, it didn't get here. Requested? Wasn't just download. Okay.

Do you have a credit card on your phone? I do. Okay, go ahead and pull that up. Yes. Scores even worse on here in 548. Oh, let's take a look here, shall we? Because, yeah, you saw payment history, 96%. 12 late or missed payments on your report.

My gosh. I'm not upset with debt because it is just a part of our, well, okay, debt upsets me in general, but I'm not angry at someone for getting into debt because our culture is very debt driven and it's just things that people can fall into. But miss payments, six mispayments on Macy, six miss payments on Capital One, one mispayment on Upstart is just irresponsibility. And that actually upsets me. I am upset at you for that.

Yeah. Why? Why do you think you're not? so irresponsible that's so many mispayments yeah i don't i believe i didn't like i didn't understand like the severity of how that can you know really impact you know um my credit um i don't know it just been credit card usage 103 percent here are three percent over credit ages low 24 accounts yeah student loans a lot of accounts in there so that let's see these total accounts Let's take a look at this Macy's thing.

Why did you decide to stop paying this Macy's thing? Did you give me an answer? I, because I don't really know. What do you mean? I just decided, like, I'll deal with it at a later time. Maybe at that moment I didn't have enough. What is this city car? Is that the Macy's?

Yeah, that's the city. It's up to 59 days away. The upstart. What's the upstart? That's the personal loan. Dude, it's also late right now. You're not making the freaking payments on that thing? I am. Wait, it's late.

Huh? It's late. Oh, the Macy's. Macy's you owe 479, not $370, by the way. Fun fact. On a $400 limit. Yeah, those late fees and... Also, yes, I know I'm dicking into her. And I know the thumbnail is going to be like,

because you've got to play the game or whatever that we're forced to play. However, a big shout out to you for coming on the show, one, to get help. And two, to show other people in your situation or similar situations that, you know, you're putting your situation out there for people to relate to. And that's incredible.

So thank you for being here. I feel like that needs to be said. I need to know your minimum amount of payment. I don't think I'm a credit card person. I want to get rid of them. I don't want to. I feel like I shouldn't have any more credit cards. No, you shouldn't.

Do you have them right now? No. They're all on my phone, actually, except the Macy's one. I don't know where that card is, but I haven't shopped there. So you just use Apple Pay? Yeah, with my other cards. But I actually, as you see, I haven't been using my cards at all because I just want to, you know, tackle that debt. And yeah.

So if you want to tackle that, but you haven't even come close to even starting, why have you not started? Why have you waited until this, like, this moment? Um, I don't know. I feel kind of stuck. I feel like I just need a little bit of guidance. And yeah, I don't, I don't know. What do you think I can do to help?

What do you think I can bring to this table? I wrote a little song to remind you, choice hotels, get you more of the experience. you value. The can be a hotel's got it all. A rooftop bar, have a ball. Bring a date, your squad or even your mom. Book direct at choiceotails.com. That you have not been able to do yourself.

I definitely need a budget or budgeting method that will work for me. And also, you know, I want to build up an emergency fund and, you know, start putting into, like, a raw IRA. And really just, yeah. Well, are you ready? time to turn the shit around. Do you agree? I'm ready. Are you going to make sacrifices? Yes. Is it time? Okay. Let's do it. Let's do the budget then.

All right. So budget, here's what's looking out. Here are required payments that we have to make in order to survive. One, do you have a car? No. I do not charge. Public transportation is good up there. You are spending a lot on it, but it's essentially a car payment that you spend on transportation. Yeah. Well, let's talk rent. $500. $500. Then we have transportation. $350.

Then we have your capital one minimum monthly payment of $142. Then we have a Discover card, $70. And we have a personal loan, $83.82. And then the Macy's is unknown currently. Yeah. For whatever that minimum payment is, it's bad that you don't know. What else for necessities that you have to pay besides food? Do you pay for your own health insurance?

No. Under my mom's. Yes, because 24, you have a couple of things. years, okay. Renters insurance, utilities. What does that look like right now? I don't pay utilities. I don't have renter's insurance. Pretty much, that's pretty much it in terms of what I have to pay, like monthly expenses. Yeah. So right now, just the minimum monthly payments you are forced to pay, you are $1,145.82. And that is with the unknown Macy's. Meaning after to take home, we now have $2,6004.18, which is, congratulations, a good number.

Where does that all go? Uber eats multiple times a day right now. Uber eats will drain it, and it's crazy how much you spend there. And it is not surprising looking through that checking account that easily that $2,600 goes directly to them. I'm going to be generous with this grocery bill. I'm going to be generous. Let's just talk. So we have the minimum monthly payments from here. I think $604.18.

In general, we'll just call it $600. You can go to groceries, getting things that you need to survive. Just that's your survival money outside of the minimum monthly payments you already have. That's groceries. That's total paper. That's this, that, this. You know, go into a doctor's appointment. go into a therapy because you have health insurance, go to therapy and have the co-pays and everything.

So I think 300 that 600 could be groceries, 400, and then maybe the rest of therapy. You know, it's up to you how you divvy that out. Well, we can talk about that afterwards once the show's done it in terms of like how to divvy that up as well if you want. But I say $600 goes to groceries and other necessities to survive. Does that make sense? Yeah, I believe that's really reasonable. Very incredibly reasonable. Well, if y'all have been following along with the math, we now have $2,000 left.

Yes? I think for you, when it comes to baby, well, I almost said baby steps. I mean, you could follow those. I think they would help in your situation. But I think the snowball method works more than avalanche or consolidation or anything like that in your situation. So I think we, I mean, we start this right now. At the end of February, there is no reason, no reason why Macy's is not paid off $479 from the $2,000. I mean, it would probably be like $1,500 because we're already a little bit in.

But there is no reason why Macy's is not paid off any of an extra $1,000. Maybe the $1,000 you set aside. So that's it. We just worry about Macy's this month. Macy's is paid off. paid off and cut up. You delete all the other crap from your Apple wallet and everything. We're just using your debit card now.

It might even work to use the envelope system for you. But by the end of the month, you have $1,000 saved up. And because you're in such a fantastic rent situation, normally I think that is way too little to start with. I think for you, because I think we can start getting through this stuff pretty quickly and you have $1,000 you'll actually be able to last for a month if you have to. we'll keep it there so then we're looking at march what does march look like well now one of our three credit cards is gone we have two thousand dollars to play with well that will destroy the discover card

and it will take away the majority of the thousand five hundred dollars on the capital one so the capital one will now have about seven hundred dollars left on it i think that i do that math right just about. No, it'll only have a couple hundred dollars left on it. So in April, $200 goes to Discover, Discover's gone. Capital One's gone the previous month, and the Macy's gone the month before that. So now we're three months into this process. All three credit cards are gone, and we have an extra, because minimum monthly payments are gone, we actually now have over $2,000 we can put towards this stuff. I see no reason why March, April, May, or June. I always have to count the months of.

in my head. I think by the end of May, the personal loan's gone. I really do. I think after you put a couple hundred dollars with capital one, that's gone. With your minimum monthly payments gone on all this stuff, the $2,000 in your personal loan should be gone.

By the end of May. Yeah. I should add. Sure. I owe my mom $800. I have to pay her. She's asking me to give it back. She's asking you right now to pay this back.

Yeah. She's allowing me to do it slowly. When did you borrow it? And for what and why? Let's just say is to further buy more Uber Eats or times. Oh, when I went on the trip, when I vacations, I actually borrowed from her. I did some work in my teeth. But yeah.

I also owe Blink $120, which is like a gym. And I, OTT bank $150. I closed, yeah, I closed my account there. And I guess I still had. Okay, those last two besides your mom, I'd say we do that this month. And that just extends everything we just talked about. This episode is brought to you by Redfin. You're listening to a podcast, which means you're probably multitasking.

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By a couple weeks, that's fine. So now we're just like halfway through June. Your mom, it depends on a couple things. It's not accruing interest and all this stuff, but it's a relationship thing. So what I would do is have an open, honest conversation with mom. Hey, I'm finally getting my stuff. sat down with this dude and we have a plan.

I have all these, lay out the budget, lay what you're spending out, lay the minimum monthly payments, and when things are going to be paid off. And you're going to be like, all these debts in my life will be turned around are going to be gone by the middle of June.

And then by the middle of June, by the end of June, I'll be able to give you the $800 that I owe you. Are you okay with that? No, I'm not okay with that. Okay, then fine, put that over, put that after your discovery and after the Macy's and put it before your capital one.

Okay. Okay. And still, the whole thing will be done by June. It just pushes where things are. Since it's not a criminal interest, and since, you know, it's potentially more flexible, I say put that at the end before the student loans. But that's what I think. It depends on the conversation.

So those are the two alternatives where you have to pay it off earlier. Or she'll be like, okay, cool. I'm glad you're turning everything around. End of June is fine. Boom. You have it. Cool. Anything else?

Anything else hidden? Um, no. I think that's everything, I think. Okay. At this point, you should have about $2,300 left outside of your budget. Just about, maybe a little more.

And from there, by the end of November or early December of this year, you'll have a $10,000 emergency fund because you continue the craziness of not having Uber Eats once, not having fun once. You don't do a single thing once because this is a survival. You're trying to actually live a better life going into your second half of your 20s. So you're making a sacrifice by not bull-h-h-h-h-h-ing around and you go crazy.

So by the end of November, early December, you have a $10,000 emergency fund because you're putting the $2,300 that you now have extra because you don't have minimum monthly payments towards saving out for an emergency fund. Yeah. Does that make sense? Yeah. Now, $300 of that might be taken away, paying the minimum-month payments on student loans at that point, depending what that situation looks like.

I don't think it's going to get forgiven with the current Supreme Court. It could get delayed again for political reasons. We'll see. I don't know. If they resume, then you'll have to pay them, and then you'll have that extra $2,000 and then like the end of December or something like that. Maybe just about a year from now you'll have.

But you'll have no credit cards, no personal loans, and you'll never use them again because you're not a credit card person you've clearly demonstrated. And you'll have a fully funded emergency fund. That will be awesome. From there, mathematically speaking, and math always wins versus basic caveman human emotions, it makes sense for you to start investing instead of paying off these student loans aggressively.

If you want to make more than your monthly payment on its junior loans, fine. It doesn't make mathematical sense to do it, but because the interest rates are in such a good place, it makes much more sense that the average of the 10% that the S&P 500 does will always beat your 3% to 4% interest rate student loans. At this point, I'm assuming you have nothing in retirement, correct? No. Oh, I do have a 401k with my current.

What's the percentage that you put in a short set? I'm actually putting two. What's the match up to? I don't know. Is there a match? Yes. Figure out what the matches. Make sure you're taking the match because that's 100% return on your money.

That always beats anything. Don't put over your match until your emergency fund is fully funded. Okay. Definitely. But after that, what you'll need to do, it's on a monthly basis, you know, we're not taking an account any raises, but on a monthly basis, you should probably put minimum $750 a month towards investing once the emergency fund is fully filled out. So that'll be like $500 a month towards your Roth IRA.

And maybe the other $250 is into your 401K, something like that. Okay. So it'll be automatic and it'll be super easy. But that should get you to a good point. But I don't even want to go into that too much because right now it's talking about cleaning up the best. Now here's the exciting part. Digged into you for justifiable reasons, as you personally requested me to before we even started. So this is going to be hard.

There's going to be a hard year. There's the mental health part that I cannot speak on very well that a mental health expert should that you should see because that's going to help combat this. None of this matters if you're not able to overcome the addiction of the Uber Eats. None of this matters if you're not able to come the addiction of spending on different categories that get swapped around depending, you know, where you spend money because, as you said, spending addiction. None of this matters.

But if you're able to get to that point and you're able to say, okay, I'm sacrificing for a singular year of the remaining decades in my life, the other side if it does, you're going to have such an incredible, incredible many decades of your life. Not just financially, you'll be able to do things. You'll be able to change jobs if you're not happy with this job. If you get fired, you'll be able to survive for months while you're looking for another job.

There's all these things that once you get through this, life just gets better. And you'll be able to retire and not have to kill over on the Walmart floor at 80. which I don't want you to. He'll be able to save up and buy a property at some point. But I'll buy a car if you need to and not have to do this $350 monthly thing anymore. Yeah.

I don't help with your income situation as well. Definitely, yeah. But I want to hear what you will do. Tell me what you'll actually do. You know, yourself. Tell me. I'm being serious about this. I don't want to have fun for these months.

I'm going to just stay inside. just really just really clean up this mess I need to pay this debt off it's like gonna be like a weight taken off my shoulder yeah I'm willing willing to do this now because the longer I wait I just think the worst is gonna get it's just been getting worse progressively throughout the years and so I need a I need to get a grip on it something else you can do which I highly encouraged throughout this year to make it more like eight months seven months extra job whatever you can do. Work your butt off.

Pretty much consider this time other than eating, taking care of mental health, and sleeping. It's all work. The more you work, the more money you bring in, the quicker this process is over. Because this is a painful process. It's always easier said than done. Yeah. But if you just dive in, go crazy, promise it's worth it. I promise.

Yeah. I'll definitely look into that to just pay off. step faster, it's just, it'll just help, you know. Good. There's hope. And we will follow up in the future to see where you land. All right. Any final thoughts? Well, thank you for having me. Yeah, I needed this.

Like, I needed this and I hope I'll get my financial health in order. For Genesis, this is some of the worst debt to income to life. style I've seen in maybe since the creation of this channel in terms of just where the money is going. It's not going to be a good hammer financial score, but I'm very glad, very glad the video ended on some hope of her actually getting together and turning this around and getting out of this complete mess within a year, but it's going to take some mental health help as well.

But for now, Genesis, Hammer Financial Score, I can't do better than a one. Make sure to check out all the fun things in the description like my Instagram and Twitter and don't forget to subscribe. Thanks.