Financial Audit - 45-Year-Old Lost ALL Of Her Money

Episode Date: June 13, 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 and income 05:10 She will never be able to retire 07:20 Her ex-husband destroyed her credit!! 09:45 Income decreasing?? 12:20 Checking account and ODD mortgage with her parents 14:14 Credit cards and spending (more troubles with her ex) 17:52 Most stressful way to manage money ever! 20:28 Savings losing her money? 25:00 Starting over on retirement at 45 because of ex!! 32:58 PAY OFF THE CAR DEBT TODAY 33:48 Credit score recovery 36:20 It's time to start cleaning up this mess... 43:00 Trying to pay for 4 kids' college... 50:09 It's time to get back on track! 59:16 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

Brooke Pillafont, 45, Kyle, Texas, and this is financial audit. What do you do for a living? I actually do a lot of different things for a living, so that's a hard question to answer. But predominantly, I'm a writer, is what I tell people. So I do curriculum development, but then I also founded a nonprofit that does literacy and art programming in the county jails. Wow. Okay.

This is really interesting. Because I was seen as I was going through your checking account, although this is a few months there were quite a few different sources. Yes. That were coming in. So I'm a freelancer ultimately, but. Yeah, let's talk about that first one. So the writer just job in general, what do you think that brings in, monthly basis, annual basis? That's, so at this point, I've been doing it for a while. I have like a client that just like pop in, pop out. But I have some solid clients. So I know I bring in at least three a month. Three thousand? Yeah. Okay. Cool. And somewhere around there. I mean, it might be 25, one month. It might be for another, but...

Sure, sure, but we're just averaging now. Yeah. 3,000. Cool. Setting 30% aside for taxes. Always. Good. Okay, maybe not totally. What? I don't know. I just, I'm not super great. I do save, but I don't necessarily think of it as 30% for taxes. So what happens when tax season comes? What do you do? I have a savings account and I just take it out and I go, oh, look, there it is. So you just have a general savings account and you're like, here's the bill. And I just try to chuck some in there every month. So have you had any issues with the tax bill when it's gone? No, no, I haven't.

Luckily, no. Oh, that's definitely a way to do it. I like, you know, personally, when I just manage my own money, I like to make sure I'm getting the best return out of every single dollar that comes in. So I'm like, I set 30% aside because it's going to be somewhere around there when taxes come in. And then I know beyond that I'm able to utilize the other money to make sure it's growing faster than inflation at least. Okay, so with that writer position with one of my clients, I actually have a quote unquote, full-time position with them.

So I do like pay taxes through all of that. Is that included in the $3,000? No. Oh, what's that? So it would be six total. Wow, so that's an additional three? Yeah. Oh, very cool.

And what is that full-time job? So that's a curriculum developer for a real estate company. That's that one. A real estate school, yeah. Okay, wow. Very cool. So, okay, $3,000 that you owe taxes on. Eventually $3,000, that's W-2, so it gets taxed.

Right. And then you mentioned a nonprofit. Do you get a, Anything from that? I usually take in about 500, a month. And what does the nonprofit do? We do the financial,

not financial, I'm sorry, literacy. We do like storytelling, writing, creative writing, and we do like art programming for inmates. Oh, very cool. And that has a website?

Yeah. Okay, it's linked in the description below. So if you want to check it out. Oh, and speaking of that, make sure you're subscribed because I'm really trying to get to 100,000 subscribers and we're really close. You guys are awesome.

So please consider subscribing. And check it on our website as well, which is linked below. So that's really cool. That brings in 500. So I'm looking at 6,500. And then any other sources? Well, I have child support. That comes to you?

Okay. That comes to me. And what is that about? 2,700. Okay. Until this year. And then I have one going off to college, so it'll drop. So how old are your kids?

17, 14, 13, 11. That's a lot. I would have a lot. It was more than I expected. But I love them all. Very cool. So the person that you're with at Divorce is Official. Yes, it has been for a long time, like 10 years now.

Yeah. Okay. Gotcha. All right. So we are looking at a pretty good chunk of change that comes in on a monthly basis. That's, uh, or there are even more on top of that? No, no, that's all I can think of. Okay.

Well, I mean, no, that's not. Sorry. Now that I, now you ask me, I thought of another one. So I have 500 a month that comes in from. commercial real estate that I own. Really? Oh, very cool. I didn't pick up a hint of that in the documents and I was looking for that.

So that's really cool. Where do you own property? In Dallas. Is this like you own it with a group of people? I own it with my brother and my cousin. It was given to us in a trust from my grandfather since we were little. And so. What is it?

Could you speak on it a little bit? The property? It's just a property that we rent out to air gas, actually. Okay. So. Is that the gas station? I honestly have never even seen it. No, it's one of the, they do the big tanks of like oxygen and nitrogen and all of that.

Is it like a warehouse? I've never seen it. I've never seen it. Oh, okay. Yeah. Well, that's cool. Note to self, maybe you should like go on Google and look at it. And your cash flow is about $500 a month.

Your portion that comes in? It comes in. Yes. Well, cool. I mean, these are a lot of great sources. How obviously you don't, it sounds like you just don't do much when it comes to that property. I do nothing. Okay.

Yeah, sorry. It's just sound, yeah. And then the child support, you know, obviously, taking care of the children, that takes up time. And then they're a nonprofit, and then the two writing positions, well, one's like a lot of writing positions, then one's more concrete.

Yes. What does your month look like? What is your week-to-week look like? How just, like, crazy-bizzy are you? This looks crazy-busy to me. I don't feel crazy-busy, except for when I stop to think about it. So, I mean, I have a lot of energy,

so I'm always on the go, and I just, yeah, you just learn to juggle everything. I like it because there's always something different going on and I've always got something like, oh, I've got to do this, or I've got to write these articles for that client, or I'm writing a, you know, a curriculum for this rare disease or I'm looking at this, you know. So I like being a jack of all trades.

Okay. How many hours a week do you think you work average? I track it all through toggle usually, and I would say 40 or less. Oh, okay. Cool. Yeah, sometimes 30. Okay. So how would you describe your overall financial?

personal financial situation where you stand in life right now? I would say I feel pretty good. At the moment, I am petrified of retirement. I have a lot of anxiety about that. So, yeah, kind of like my big plan is to milk goats in a commune, because I'm not sure I'm going to have enough. I don't know. I keep hearing all these people say, like, oh, you have to have a million dollars,

at least to retire. And if you have a million dollars, then you'll get $30,000 a year off the you know, roughly, yeah, and I'm like 30,000 a year. Okay, well, that's not terrible. Like, if your house is paid for and you don't really have any bills, but like my house isn't paid for and I have four children and I still have to put them through college and like there's just all of these things that sort of like. Wow, that is a lot to think about.

Yeah. So is the home paid for? No. Okay. What is the remaining mortgage on that? Okay. A lot. Oh boy.

Not a ton. Because you built it. You mentioned before. Yeah, I just built it right before the pandemic. So that was awesome. And is it just you or are you married again? I have a partner. Partner, but it's not an official marriage.

So nothing's combined officially. No, I'm the only financial person in her house. Oh, okay. So your partner doesn't bring in any money? No. Oh, okay. Yeah. And that's fine.

So let's talk about the house again. What's the remaining mortgage? I don't know what the remaining mortgage is. I know we maybe somewhere like $2.50. I'm thinking. So not crazy. I know. Well, for this area.

Yeah, this area, it's kind of insane. So I put a lot down. I took a bunch of the money I got from. What did you put down? I think I put 75 down. Okay. So it was like 320. I think the house was 320?

Yeah, and Kyle. You built it pretty far outside of Boston. Okay. So when did you do that? 19. Yeah, 19. No, 2000. I'm sorry.

Was it 2018? Okay, so the interest rate is probably. Super low. Okay. Yeah. I got the last like really awesome interest rate so I can't refinance. What was that? 3%?

4%? Okay, so here's the deal on that. My ex-husband trashed my credit. Like so horrible. I used to own three houses and then he just didn't make the payments on them when he got them in the divorce and didn't take my name off of them. So the banks foreclosed on them. And, you know, I had really angry renters yelling at me when I was like, I can't do anything

for you. So I couldn't actually purchase the house. So my parents actually took my money and they bought the house. So they technically own the house, but they've deeded me like 90% of it. Yeah. It's like a weird thing. So I don't technically. All three of them?

No, no. All three of those houses are long gone. He had foreclosed on all of them. Jeez. Okay. Why did he? Why? That's a really good question that I can't answer.

And you didn't want to try to. I didn't even know it was happening. Well, you didn't know it was happening until it already happened. Yeah. Yeah. That's brutal. I'm sorry. That sucks.

Yeah. Well, look at your credit. I'm curious. Oh yeah. My credit went from like an 820 to like, I don't know. I think I was a little below 400 for a little while. Yeah, no, it was really terrible. And I've been working like the last eight years to bring it back up. And I'm, I think the last I looked, I was at like 731 now. Oh, okay. So I'm okay. But just at this point, it's not worth refinancing. I'm like trying to get. Well, it wasn't interested in this house then. I have no idea. I'm so sorry. I should be better at my finances, I think, by being able to answer. these questions. Maybe it's like 3.1%?

Okay. 3.2%, 3.5, something like that? 1987 a month. 1987, not bad for the area. Not bad for the area at all. So like I can't rent for cheaper than that. And that certainly fits within your overall budget. The child support is about...

This is Euphoria Calvin Klein, the new elixir collection, featuring three perfume, intense. sense inspired by a unique orchid accord paired with vanilla each with its own distinct attitude each with its own universe bold elixir sensual woody addictive magnetic elixir sweet and romantic like a lingering touch solar elixir a radiant expression of joy ultra concentrated for amplified impact and lasting power find your euphoria discover the euphoria elixir collection by calvin klein is a third-ish though and you said that will be decreasing because you mentioned quite a few ages. One's going out to college.

It sounded like a couple more will be pretty soon. Pretty soon. So in the next five years, I'll have three of them out and in college. Okay. Then this mortgage will take up a lot more. A higher percentage. But my plan is to either get a roommate or rent out the rooms through Airbnb. I mean, it's a big place.

You don't want that to you or do you actively want that? I don't. I don't really want a roommate, but I wouldn't mind renting out through Airbnb. Or just renting the whole house out and like living somewhere. way smaller. Well, what is it? What is there now? Square footage?

2400. Oh, okay. And beds and bath? Four bedroom, three bath. Okay. To, like, to a living room. And then we also have like an upstairs loft and we have a downstairs like open room. Okay.

So technically it could be a six bedroom. Close it in. So. Okay. Well, for what it is, I'm happy with us. Even, well, let's see here. Now you know why I fear retirement. I don't think you have.

Well, so far, there's nothing that's like screaming to me that's terrifying. We'll continue to look in. We'll see. At that point, it will still be just under 30% of your take-home. No, because some of this is before Texas, but it'll still just be around 30%-ish. And I think that'll be comfortable. And that's after all the child support is gone. So it's okay.

Okay, that's good. You might have to manage some things a little bit. Maybe some of your categories are a little higher right now that have to be brought down. I'm not sure. Well, I would say that like definitely my categories are higher, like as far as food goes and like items of clothing because you have to, you know, feed all these people and clothe them. And they grow very quickly so they can't just like reuse clothes. And like, yeah, I mean, I guess vacations would be cheaper because I'm not paying for five people to travel. Right.

I would just be paying for myself to go visit them kind of thing. Sure, sure. So yeah. Okay. Well, we are definitely going to talk about the college funds because you mentioned sending them. them to college. So it sounds like potentially paying for it. We'll talk about that. We'll talk about this home, retirement, and all that stuff. First, we're going to start with your checking account, then we'll look at your savings, then we'll look at some retirement performance. We have,

and then a debt as well that is outside of that mortgage debt. And then we'll get in all that good stuff. Okay. Sounds great. So your checking account. At the point of this statement ending, $5,364 sitting in there. I'm very comfortable with that. Okay. Yeah. No, I feel pretty good with it. Yeah. Yeah. Now, you have two credit cards. So you pretty much do all the spending on there. So there's not too much to talk about here. Really what it is, we have credit card payments,

and you Venmo on a lot of money. It looks like you Venmo on almost $2,000 a month. That's the mortgage to my mom. Oh, okay. Yeah. So are you on this at all? Are you on the mortgage at all? No, not at all.

I'm just on the deed. You're on the deed. Don't love that, but I understand it in this situation. you are in is, hmm. I didn't really have any other opportunity. No, I got you. I just wish it was, I wish it was on your credit. Yeah, me too.

Well, one of the things I've been, like, looking into is having my mom actually report it as if I were a renter. Okay. So then it does get on my credit report. So that's actually on my list of things. Isn't that experience only that takes that in account? I could be mistaken on that. I don't know. I just superficially dug into it.

and like the person has to pay, I think the person has to pay a fee to be able to like, oh, register it that way. Oh, okay. But you can still do it. I just have to figure out how to do it.

Sure. Because I think it would, I mean, obviously it would, it would bolster my credit quite a bit. Yeah, I'm going to look into that as well. That's interesting because I know

at least proposed changes have been talked about. I don't know. So, but that's still, okay. And your relationship with her is good? Oh, fantastic.

Yeah. Well, because what we don't want to see and we've seen situations in this show in terms of like rent and stuff like that with family members where yeah not it's not great well i mean it is family so it ebbs and flows right it is i just don't want like the rug to be pulled under you like oh i own this house yeah no my parents would never do that yeah and i want to make sure it 100% goes to you yes yes they've actually been really really awesome

and they've set it up in their will to make sure that everything like goes to me so very cool good i'm happy to hear that which is really awesome of them Mm-hmm. Now, a lot of your money, most of it just goes to the credit card payments, and then there's utilities and stuff as well. So, again, not crazy, and lots of income sources coming in. Really not too much to mention here. The credit cards, we are going to look at your credit cards first before we go into savings, because this is spending related. So let me go ahead. Over here, on your Chase Freedom, well, it says new bounds, $3,6007.

So you ever hold balances on credit cards. No, no, I don't. So I kind of did a weird thing because a long time ago, my ex was causing a lot of problems financially, and he would like decide he didn't feel like paying child support anymore or make a, anyway, it's a long story not to get into, but it caused a bit of trepidation. And I got worried that like what would happen if all of a sudden he's like chooses not to pay and then I can't pay and then there's like an issue. So I actually have my credit card prepaid one month ahead.

Okay. So like everything's like I. technically every month have a zero payment. I just go ahead and pay the balance at that time so that I have two months just in case like life ever threw me a curveball or something terrible happened that I could be, they could live for at least a month and not and like find any job anywhere. Sure, sure. And that's where emergency funds come in, which will get to your savings.

I think we're looking pretty good there as well. But let's look through here. Definitely some fun stuff like raceway and going. Okay. Yeah. Yeah. We went on a ski vacation. So my kids opt to get no Christmas presents.

Oh, okay. To go on a ski vacation every year. So, and then I do buy them presents. Like, I really do. I don't even, like, not a lot. Just like a couple things to open. And there's lots of going out as well to eat and, you know, gas and lows and lots of going out to eat. It looks like, it kind of looks like a fun card.

H-E-B sprinkled in every once in a while. but the vast, vast, vast majority, and we're, you know, putting it on the screen for a lot of this stuff. It's just fun and coffee and toll roads and subscriptions like Netflix. And then, again, sprinkle in some groceries. December is kind of my fun month. Like, if I go work really hard, and then December comes and it's like, all right, it's the holidays.

We're going to go out and we're going to have fun and a big family. But that's holidays that counts. I feel like anything after October 31st is the holidays. Okay. So, well, it makes me a little nervous here. $3,607 spent there. $2,000 to the mortgage. And then on the other card, $4,955 spent.

That's all your monies. Oh, sorry. I think I lost you. I try to keep my card somewhere between like $3,000 and $3,000. So, yeah, 36 seems pretty standard for holidays. But then I paid it off. And then, yeah, it was the other one, $43. It might have been more.

Oh, is what I'm looking at the same card? Yes. Oh, okay, yeah. I see. You have another card, though, Capital One, right? Yep, it's just a backup card. I don't actually do anything in case I lose the other card. I just have a card, and every now and then I'll charge on it.

Okay, so most of it's done on the Chase Freedom. Everything's on the Chase Freedom. Okay, so never mind. It's not as scary as I thought it was because I was looking through both tabs. Then I was like, oh, my gosh. Yeah, okay, cool. So it's still a lot of money. It's like $5,600 spent on this card, and then your mortgage.

And then there's utilities and stuff. on that. So it is a lot of your money. Yes. Yeah. Yeah. How do you feel about your overall budgeting situation and how you manage your money? So I feel like that these months are kind of an anomaly compared to my other months because I generally give myself a hundred to $120 a day for my budget. So that comes out to be like... Just split into different categories? No, just like everything I spend. So I like in my head, I think to myself, okay, you have about $100 to $120 to spend every day. Well, if you spend 300 today, then you need to not spend as much for the next two. two days so that you can balance everything out.

Does that make sense? It's an interesting way to do it. That's a stressful way to do it in my mind. Yeah? I prefer like, here's the categories. Here's what I'm allowed to spend on a monthly basis in order to make sure I'm hitting the goals that I'm trying to hit it. Okay, I hadn't thought of it that way.

Like just even in a crazy example, $1,000 in fast food, let's say, that's what you can spend. But if you've hit $1,000 to fast food and it's on the 28th of the month, then you want to go get McDonald's, uh-uh, because you already passed your $1,000 a limit. You're splitting things up in different categories. is what you're allowed to spend because you know your total pie that comes in on average and you budget out on average now if you know you're going to have a lower month okay in the season then you budget around that if you know you're having a higher month you can budget around that I prefer the rest

to go savings but you know stuff like that does that make sense instead of like instead of like a hundred but then I would like get weird and I would like make an excel spreadsheet and like count it down and yeah do all of that and instead of just in my head I'm like did I hit 100 today no I didn't or like I'll check my credit card because I do everything on my credit card well except for the Venmo to my mom for the mortgage and stuff like that. But other than that, I just like, I'll check my, okay, so maybe this is a little neurotic, but I have like a day planner and sometimes I'll go through and I'll be like, for each day in like the calendar, I'll be like, okay, here was 75, here's 40, here's 160, and then I'll just

kind of like look back and in my head, I'll go like plus 30 minus 20 plus 10, like that. That is the way to do it. I just wouldn't be surprised if that's adding extra stress that you don't necessarily think about. Okay. All right. I'm willing for a new strategy. Budgeting apps. And there's a lot of them.

There's a lot of good ones. Okay. I'm hoping one of them will sponsor me, but they haven't yet. Well, let me know who they are and I'll say their name several times. But there's a lot of budgeting apps that will connect to all your accounts and it will show what's being spent in specific categories. And then you can say what your limits are for each on a monthly basis. And it'll tell you where you are. Okay.

That highly recommend. That's a great way instead of having you get into that Excel spreadsheet life. Right. Yeah, not my favorite life. Yeah, because a little chaotic right now with how you're doing it. But it's okay. Because in the general savings account, we have $68,204. Yeah. That's good.

That's an emergency fund. That's a really good emergency fund. I think with what you spend, I'd probably have $30,000 minimum, maybe go towards $40,000, sustain you for six months, never needing to get a single paycheck. Right. I think 30 to 40,000 would be great for you. So I think this is actually a little over.

That being said, you also take from here to pay for your taxes. Right. And because you're not organizing that in a specific way, I think this is okay. This is where we get, you know, a little more nuance with our financial behaviors. And we say, okay, so $40,000, that's what I need to survive. You put that in, I don't know what this is in, but you put that in a high-yield savings account, something that's getting you three, close to even 4% today. Okay.

So it's, you know, continuing to at least keep. up with normal inflation. And it's only at that right now because interest rates are pretty high right now or on the climb. Okay. So you leave that $40,000 and you never touch it. That's not used for taxes. It's not used for anything unless an emergency happens.

And then you can use it and then you rebuild it as quick as you can. Okay. And then the taxes, what I would do for this money that's coming in that isn't already taxed, 30% of it. I need to just put in. Into a different savings account and separate them. Have two different savings accounts? Yeah.

You can do something like Ally Financial where there's different buckets you can put it in. So one savings account, but you can put them in different mini accounts within them. Oh, okay. So that's a good way to do it. But again, we just want the emergency fund separate because it's something we don't think about. It doesn't touch it. Yeah. Okay.

Unless something happens. And then we're saving up 30% on the side around that for taxes. Okay. I hadn't thought about doing two savings accounts before. Because one thing I don't want you to do is I don't want you to save too much. And then especially in a low-ield savings account, We're losing money with inflation. Right.

No, that makes sense. I asked the guy who helped me. So last year, my goal, my financial goal was to combine all my retirement accounts into like one single account and like figure out where everything was. So that it was actually doing something and not just like sitting there. Sure. So I did that. But then I called the guy and I was like, hey, and this is a while back.

And I was like, should I put some of this extra money for my savings account into these things? And he was like, well, the market's actually going to turn. I wouldn't put anything in the market right now. When did you say that? I don't know. I think it was like nine months ago, 10 months ago. That's fine. I mean, typically the way I do it, this is non-official financial advice.

It's only what I do because I don't give investing advice. What I do, mark it up, down, climbing, sinking, due to dollar cost averaging across the basis. When you're putting money in, I put it on a consistent monthly basis. And then something like the S&P 500, taking advantage of that dollar cost average. over the course of a decade. Typically, from the start to where it is now, the S&P 500 averages out, down up, down up, 10% gain. Oh, so maybe I should like look at doing something like that with my money?

What I would personally do and what I'm doing now, since the market is at a point where it's down, I am putting money in because this is going to be, even if you can go down, this is definitely going to be considered a dip. And I'd be getting in at a low point. Right. So then, okay, that makes sense. Yeah. Okay.

I was on someone stream the other day, and I was talking about the S&P 500, and people thought I was, well, they don't know anything about finances. It wasn't a stream that was finances, really. And they thought I was a lunatic for, instead of putting money in at the peak of the market and putting everything in at the peak, that I was putting money in at the peak, that I was putting money in when the market's slightly more volatile right now. I'm like, what are you guys talking about? Because it's going to make so much more money over the long term instead of them where they were only putting money in at the peak, and they're, They refused to put money in at what will eventually be considered a dip. It was really weird. It was very weird.

So that's my mindset around that. I hope that makes sense. But I want to make sure the money is just working for you. Well, we can look at the retirement accounts. Okay. The 401K. I might become a goat milker. Goat milker.

Okay. The 401k, is this through that real estate writing position? So if that's the one, yes, this one is. Yeah. Okay. And you're getting 100% on your return through. I maxed it out. Through the company match, you're getting 100% up to 3%, then 50%.

I thought you were supposed to max it out, so I was just max it out. Sure. Why not? I mean, no, I mean, that's great. There's some, again, nuances to maximize, but that's what I cannot see in this, all the other ones I can see where they're going. This one, I cannot see what your 401K is invested in. Oh, I have no idea.

I was like, oh. Yeah, I have no clue. When did you set up this 401K? When I started working for them. It was just kind of like, do you want to set it up? And I clicked yes and walked through the steps. Did you click a fund of some kind? I think I clicked high because I was like, well, I'll just make some.

High? Well, it's like high risk, medium risk, low risk or something like that. You did high? And I just clicked high risk because I was like, well, I mean, why not? Okay. You don't max this out. Oh, I don't? No, you put 5% and you take the match.

you take the max match, but you're not maxing out your 401K. Okay. Yeah. All right. Because 401K, you can put in a lot more on our annual basis. Well, again, there's nuances. We can talk about that depending what the rest of the situation looks like. All right.

That's okay. I would like to know what they're in, but these other ones, we do know what they're in. Okay, good. You do have something here, and I can't, well, you can tell me exactly what this one is. What is this account specifically? So I think that this might be a, is it a Roth IRA? Oh, okay. So I think I have a traditional IRA and I have a Roth IRA.

Okay. And you think the one that's at 18,000 versus the one that's at 26,000 is Roth? No, I think the traditional IRA is the one that's like at 100 something. Oh, then what's the difference between the 26,000 and the 18,000? That's good. Unless are these just. One might just be like assets that's being invested and then they're, The other one is the Roth IRA.

I think that's how that works. Okay. I should know more about my money, I feel like now. Like you're asking me these questions and I'm like, I don't know. Well, these are both pretty similar. We have, it's spread across the Dow Jones, NASDAQSP 500, Amex, interestingly enough, just a random company being put in there. I don't like do anything with this.

10-year treasuring. but it's pretty small percentages of your overall portfolio. Right now those are the ones doing well, but again, over the long-term person, that's not something I get into. Well, I mean, I would, you said you're 45? Yeah.

I mean, I probably would switch getting a little more into the bonds game, maybe in my 50s and 60s. Okay. Make it a little lower risk throughout retirement. It is an option. That's something that a lot of people talk about. The money guy show, they talk about that, and that's...

So all the retirement I had was cashed out by my ex-husband. So this is me starting over from scratch. Did you sue him? He can't just do that. Can I mean? Yeah, he can. Well, no, no. Well, in the settlement in the divorce, what was agreed upon?

Well, it was done before the divorce. Did you ever talk to a lawyer about that? Oh, yeah, yeah. I spent a lot of money on lawyers. There's nothing I could do about it. How much was it? $250,000? Yeah.

When was the divorce? About 10 years ago. that, uh, 2015 it became final. Yeah, and that probably would have been like 500,000 today, maybe, something like that. Yep, yep. I didn't have to pay the taxes on it coming out, so that was good. Yeah. Yeah.

So those kind of things I got to set aside. And then I had saved a bunch of money and then it, um, some of it got stolen. So then. Stolen? How? From where? From what? So, like, cash from my house.

I was like saving money and I had some cash in the house. This is why we don't do cash. Well, how much was still on? I know. I know a super, I really don't, I don't want to tell you because it's super embarrassing. Range? 50,000. Oh, yeah.

That's a lot of money. Yeah. Yeah, we don't do that. No, no, it was super stupid and I, like, I've blamed myself a lot for it, but at the same time, like, I thought that I was safe in my own home and I was helping out. Yeah. So that has happened over the last couple years, so I just feel like I've taken a several hits in the last 10 years that have made me feel really financially stressed.

And so I don't really like, when I look at this, I'm like, okay, yeah. I mean, it seems really nice. But like, I guess I just have like all these fears that like what happens. This isn't actually that much. Yeah. I'm definitely understanding a little more now when you said you're anxious about retirement. Yeah. I understand it.

So we don't know which one's the Roth specifically or which ones is a brokerage. But again, you think this one, the 26,000 is the wrong? It doesn't say either of them. Yeah. I don't know. But either way. I think that this one, wait, let's see. What's the initial, maybe if I knew what the initial value was, I might be able to figure it out.

But I don't know. I don't know. Well, prior end. I'm not touching any of this. It's kind of like my thought. This episode is brought to you by Ultima Replenisher. Health is all about balance, like a salad with fries. So why not have balance in your hydration?

With six essential electrolytes and no junk, Ultima provides balanced hydration you can enjoy every day. That means no sugar, calories, or carbs, and it's not loaded with sodium. Just delicious plant-based flavors you'll actually look forward to drinking. Shop Ultima on Amazon or in store at Target and Whole Foods Market. Like, I don't touch it. I just put money into it, so. Yeah, and then again, the other account, so the $18,000 account, $26,000 account, they're distributed into different things like the $1,000.

out Jones, NASDAQ, SMPHC, and then a few treasuries as well, pretty much the same on both. So, okay, cool. If those were your only two accounts, I would definitely be concerned at 45, but we'll look at your larger account now. Yeah, I don't, large-esque. Largest. All right, so this one you said is your traditional IRA? Yes.

Okay, so was it rolled up from like a previous 401K? Yeah, there were a whole bunch of different ones, like from different places that I had worked and they were kind of like, oh, you've got one with ING, and you've got one with this person over here and one over there. And so I just was like, okay, let's just put it all into one big thing instead of letting it just sit somewhere rotting. Yeah, okay, that makes sense. And then this, again, your distribution into different funds,

it's again, exactly the same. Dow Jones, NASDAQ, SEP 500, AMEX, 30-year treasury, 10-year treasury. So, okay. And this one's sitting at 103,750. They won. Of course, all these accounts are taking a little bit of poo. That's okay. Up down.

We're not worrying about it right now. Okay. Because it's not coming out, right? You probably won't retire for 20 years, right? I don't know. When do people retire? When do you want to retire? I don't know that I ever really want to retire.

I actually really like working. Fair enough. So, but I mean, like, so I don't know. When do you, well, eventually distributions will be required to take out. But when do you plan on withdrawing from these accounts, I guess I should say. I guess when I need them? That sounds like a really, like, try it answer. But I mean, I'm thinking like, oh, okay,

if I have like some kind of medical issue when I get older, but like... You have a health savings account at all? No. Okay. Yeah. Okay. Do I need one? It's not, it's, if it's offered through your work, I mean, it's a...

Oh, yeah. It's a tax advantage account. It's a good way to take care of medical expenses, but it's not my... It's not a glaring error by any means in the air. Like, I'm not freaking out about it, but since you said that specifically, I was a good way. No, I just like, I actually have never really even thought about that question. I just like, I'm like, okay, well, we'll just go until we go and then we'll see how it goes. I guess I would probably try to figure that out.

It's been so long since I haven't had four kids that I'm sort of like, I don't know what happens after they leave the house and like what expenses look like. And, you know, you hope everyone's employed and, you know, maybe they can survive on their own. One hopes. So I don't even know what like life looks like in 15 years. So my plan is figure it out in 15 years, which isn't always the best way to go. Well, we'll get to some plan. And then again, we're going to loop back to things, but we have one more thing to go through a debt. I do not know what this debt is for.

It has an overall balance of $5,281 with a minimum month payment of $921. What is this? Okay, that's my car. That's a vehicle. What's the interest rate on this? I don't know. You asked me these questions. I have no idea.

It's important to know, especially on a vehicle loan. Okay. Do you have credit karma on your phone? Okay, so the vehicle loan that I got for this was when my ex-husband trashed my credit and they were the only people who would give me a loan for anything. Oh, so it was probably very bad. And they were like, well, you've never missed a payment on a car.

So we'll give you a loan. I put a bunch of money down on it. And then I pay $300 a month. What's the car? It's a Dodge Durango. Year? 2000. I was forget it this.

I think it's 14, 2014. Okay. Do you have credit karma downloaded on your phone? No. We'll get you to download it. Okay. That's up 31. Nice.

Yeah. That feels good. That's like three, almost 400 points higher than it was like eight years ago. After he trashed you? Yeah. Absolutely. Come and making a comeback. Payment history, 100% good.

Okay, so everything's falling off. Good, good, good. Total accounts 23. Yeah. Still. Okay. You're going to look at me like that. I have no idea.

But I know some of the accounts that he didn't take. me off of are still on there. Capital one that you say you don't use the census, there's $3,670 on there. Okay. Yeah. Go on. So I let my partner use my credit card. So he's paying that one off.

That's not on my debt. He is paying it off. Yeah, he has paying it off. Totally or? Yeah. It's totally all his charging. You know, like, is he paying it off like, we're going to pay it off in a few months or we're paying it off like this month?

Well, you'd like to pay it off this month, all of it. But he's been giving me about $1,000 a month to pay it off. Why don't you do you? just paid off and have to pay you back because the interest rate. Yeah, no, the interest rate's crazy. It's like $40 a month. Yeah. You're paying your interest.

Yeah. And technically it's hitting your credit. Oh. The interest payment makes a difference? It's only 19% utilization. So the good news is it's okay. I saw $3,670 and I was like, okay, that's probably relatively high utilization compared to normal.

So that would hurt the credit. Oh. Not paying on it and not the interest accruing. but it's 19% so it is below the 30. Okay. It's fine if you want to do it this way. Hopefully in the next two months it's paid off is kind of the idea. Yeah.

If not, if not, then I'll know to pay it and do it a different way. Yeah. Okay, so here's the car. 58% paid off or 68% sorry. Okay, so it's a 73 month term which I hate. Yeah, well, I had zero options when it came to the car. Yeah. Typically, sometimes it had to cry just to get them.

to give me a loan. I mean, sort of kidding. Sometimes it can guess on here and quite accurately what the interest rate is. And that was my curiosity. Okay. How far off were you? It's not guessing is the hard part. So I don't know.

I'm still assuming it's bad. Yeah. I would make that assumption. I think you're correct. Okay. It could be worse than that. What I would do. A lot of the other accounts are just closed account.

So, never mind. It wasn't that crazy. It was those old accounts. So let's do a couple things here. This retirement account, because we definitely need to talk about retirement. It's one of your larger anxieties. We have 103,751 and 1. We have 26, 169 and another.

And we have, what is it, 18? Oh, and I just put in six more in December. I put my full six in for the year and my traditional. Good. I put in traditional. because they told me I could write it off on my taxes that way, instead of putting it into the Roth, and I can't write it off. So this year I chose to do traditional rather than Roth.

And that's fine. If you were earlier in life, I'd be like, just do Roth. I know, but I'm not a spring chicken anymore. My, 405's not old. No, it's not spring, though. It's definitely summer. Sure. Okay.

Yeah. I'm a summer chicken. Okay. I can vibe with that. Okay. And, oh, the car. The car. So the car, I put it somewhere, and I'm getting lost.

and all the paper. The car is, what have I done? We have just about $70,000 sitting in savings, right? Yeah, yeah, about that. 68, 70. Where it is? Okay. I like set a savings goal every year and I'm like,

this year I'm going to save $30,000 or this year I'm going to save, you know, $25,000. Okay. So big picture. Here's the goals. Okay. Non-official financial advice, what I would do if I were in your shoes, you have a payoff amount on your car of 5,292. Yeah.

The moment I get home, I'd open up the computer. I'd go to the payoff amount and be like, okay, pay off from your savings. Okay, for real, because like, I have sometimes thought like, okay, is it worth it? It's building my credit, right, to pay it every month. So I've been doing that. And then I was like, what am I actually going to save an interest? Because I'm really not paying that much interest anymore because it's the end. of the loan? Does that make sense? You're in the second half of it. So my... So those were my thoughts.

I mean, that was my rationale that I was like... Well, you're losing $30 an interest a month right now currently. Oh, okay, times 12. That gives me, like, $30, $360 a year? And it sure does help, yes. And it sure does help with the building the credit as well. So there's a few things. What I would... I would still do it because I don't like to, one, the car is a little older at this point. It is. So I wouldn't want to have debt on a depreciating asset that is, could be entering in its later years. Yes, it's definitely not a spring chicken. Yeah, you never know with the car.

And I'm not a car person, so I definitely can't say for sure. Okay. But I wouldn't want to have debt on that. It's just an easier situation if something were to happen to it, you know. Okay, so at this point, maybe it's not worth holding on to to build the credit because. Maybe not. What I would extra do to confirm. So I would just go and check out what that interest rate is.

Again, you're right. You did mostly pay the interest. It might be 7 or 8 percent. Okay. And if that is the case, even still, now that you're entering the more principal area, so $30 an interest is what you're paying on. Yeah. I hate paying interest.

It makes me angry. It's going. It makes me super mad. And it would be great, especially as child support payments starts to decrease that a bill's gone. Okay. Yeah. No, no, no.

That makes sense. And your savings is even if it, even if, we weren't even thinking about the credit and even if this was a zero interest loan at this point because your savings is just at a really good place and we're anxious about retirement and monthly bills all this stuff then with the 70,000 hours I'd cut five out of it and the car's gone. Car is owned. Okay. Yeah.

And one thing we can do. No, that makes sense. That makes sense. The more I'm thinking about it, I'm like, yeah, okay, that frees up another 300 a month, which then when the child support goes down, I've been really concerned about like, okay, how am I going to make all the ends meet? I mean, one child doesn't eat $800 worth of food among them, you know, so. Sure.

And I want to help them while they're in college, so then there's more money coming out and less coming in. And I still want to talk about that. We'll get there. The one thing you can do with the $300. You can then pretend like... It doesn't exist and put it in the... You know, you can take the $300 and maybe put it into a third savings bucket. And you can sense your car is...

It's not old. It's not old. This is not a new car either. We're both summer chickens. I don't know that car and the longevity of that car. How many miles does I have? $136,000. I would start putting this $300 into another bucket and that's your car fund.

And then when your car either has a repair that's not worth it for the car or it just breaks. Okay. Then. So I've been really lucky because my partner is mechanical skills. Yeah, that's great. And so he's really good at fixing car things and doing stuff like that. So that's been super helpful and saved us a lot of money. Because eventually what will happen is, you know, a repair will be too expensive for it.

And then hopefully your car fund at that point that you're saving her $300 a month for. You can use that to get a car in cash. Not to put down. Oh. There's no more need to borrow at this point in your life. Well, I'm really ready to like, you know, get a smaller car too. Okay. Yeah.

Well, then you definitely can and we're going to aim to get it in cash because as you are heading in the years of really trying to maximize retirement. Well, let's just not have a monthly bill, especially a monthly bill where, again, at the beginning, it's all going to interest and not principal. And we just want less payments possible as some of the income starts to go away. Okay. They want to be putting money in places. So that's what I would do when it comes to the car. I'd get rid of it. Start saving up.

You can even do more than $300 if you want a month. It doesn't matter. Something, as long as there's something there to... Something that's actually moving a needle. Okay. If it's a few bucks, it's like, what's the point? Right. Fair enough.

The savings, we already talked about that, 40,000 in a high yield. And then since tax season's coming up, probably the rest of it besides what you put on the car. Yeah, I should probably just keep that there until I know. Not in the emergency fund, but in a separate bucket for taxes. Right. And then starting now, we're putting 30% aside into that bucket. Okay. For taxes in the future.

Yes. Yeah. Yeah. Well, with the dependence, that helps. I haven't really been super great at figuring out my taxes. Well, sit down with the CPA. It's worth like 500 bucks to just get it all. I'll figure it out.

Okay. You'll probably save more in the long run than that $500 initial investment. So that is very worth it. All right. Now you'll talk about, we'll get the retirement. I want to touch the college thing first. Okay. Is there a college fund?

Oh, okay. So this is really weird. So maybe I started a college fund for my kids when we lived in Virginia. It's like a $529 savings plan. And I put $30 in for them. And now they have $33. It's very exciting. So I have $33 save for them, which would buy them all of, I think, some pens, but I'm not sure.

Maybe. Maybe. It would have bought this single pen. Right. They'll just have to keep up with a pen. But, and here's, okay, so I think that my parents have some kind of college savings for my kids, but they've never told me about it. Other than saying, we have a college savings, and then they tell my kids that they have a college savings. but I'm not sure if they're actually contributing or not.

So one's graduating this? Yeah, this year. And like, yeah. What are their college plans? What have they talked about? MIT. Yale. Yeah.

Yeah. Harvard. No, but they got deferred. They went early action and they got deferred for regular action. So that's super exciting because, you know, not a no is awesome. You're not going to like my thoughts on this. Oh, it's a 3.9 acceptance rate. He's not going to like it either.

No, they're not. Yeah, both. Yeah. Okay. So Harvard, Yale, Stanford, kind of your Ivy League's, their fallback is UT. So that's really great because of my income. Their fallback is what they should go to. I agree.

No, I agree. If they don't listen, then maybe you don't pay. Well, here's kind of a neat thing, is that all of those Ivy League schools because of my income level have free tuition. Okay, that is a different story. So now I'm like, oh, okay, yeah, right on. Apply to all of them. 100% guaranteed?

Yeah, it's all need-based. And if you make under $100,000 a year, then it's free. Yeah, they do have ridiculous endowments. Yeah, no, it's fantastic. Because I was like, apply to all of them. Out of state? Yep. Cool.

Yeah. Okay, so if he gets free college. So I was like, all right. Yeah, no, that's great. Then I'm back for that, yeah. That makes sense. The other three are a different story, though, because the other three have their father's income to deal with.

The older one, all same dad, but the older one was thrown out of the house when they were 11. What were the ages again? 17, 14, 13, 11. Okay. Yeah. I told them they're going to have to marry Rich. I'm just kidding.

Okay. If they get free college. Well, one of them. Yeah, one of them will. The 17-year-old. Crossing my fingers. And they have the grades for it and they have the scores. And then if not, if they go to UT and it's not free, they're applying to every single scholarship.

Yes, 100%. Yeah. Very cool. Yeah. And all of them are applying to scholarships. Good. One thing I would do tonight is I'd ring up the parents

Hey, someone's about the graduate Can we get a little more insight? Yeah, that's probably a good idea Because that changed the whole conversation. Yeah, I think of it, you know, honestly it just felt like a really awkward conversation to have to be like, hey, just calling to see how much you're giving my kid for college.

Well, you frame it a little different. You're like, hey, I am planning out what I'm going to do to support them throughout college and, you know, different college funds. I just, you've mentioned this in the past. I just want to know kind of what that picture looks like so we can incorporate that into my planning and stuff like that. I think you need to send me a copy of the recording so I can just like write that down and like read it off a piece of paper. Oh, you can send this.

Yeah, that'll be perfect. Yeah. I'll be like, hey, just check that out. We need to talk. So that's really cool and I hope they get that free counts. I'm rooting for that. Yeah, me too. The 14, I could see a point where no matter what the 11 year old does that you could have their tuition paid for if you really wanted to.

I think so. We could get to that point. Okay. I'm open. Not to anywhere. Well, no, no. Two years of community and then two years like Texas State. Yeah.

Okay. Well, I mean, I've always told them, hey, all their grades are high. They're all straight A students. Good. They do wonderful job. They participate in sports and clubs and things like that and all their own motivation, which is awesome. And I just was like, hey, there's lots of scholarships out there.

You've got to take advantage. Well, that's great. Then heck yeah. As much free stuff they can grab up. I'd love for him to get out without any debt. Yes, exactly. Because that was the main part of the conversation that I was going to go into, but it's just changed from, you know, all that we just learned in the past few minutes.

So that's great. I think as long as you agree with what they're doing and they're doing in college, any financial support you want to, that's fine. I want your diversion to be into retirement because it's going to be a little different. So there's a couple different ways to look at this. There is the, you can divert some of, what you need to retire comfortably into paying for college if necessary, you know, and like we don't know.

It sounds like, you know, maybe that's not even going to be a thing. But you could do that. However, that differs in retirement. So what that ends up happening, though, it might feel good for them in the moment of not having to work or anything during college. It will put a burden on them later because you won't be able to retire. And that puts a burden on kids. Right.

And they're going to have to take care of me. So I almost prefer if, let's say, college isn't fully taken care of that they find ways to work through college and everything. Oh, no, I think they should work through college. They should. And pay for it while you're focusing on your retirement because when they're trying to build their careers at some point, trying to build their families, they're not going to have to worry about taking care of mom.

Yeah. They will thank me later for not helping them. Yeah. Yeah. Exactly. So if the context is put out there, they understand. I mean, ultimately, I just want to be able to like, if my kids fall on hard times or they need help that I have something there and I can be like, hey, okay, don't want to.

worry. I can give you half your rent this month. You're okay. Life's not going to fall apart. Also teach them the importance of an emergency fund. Yes. Yes. And then they, that's something. We have actually already opened up accounts with them. So they actually have their own bank accounts and things like that. So that's cool. Yeah, they should never have to rely on you. But if you want to help, that's totally okay. It's a parental thing that you just want to like hold those baby birds in a big nest and make sure they're okay. And it's your money. You can do whatever you want with it. We just don't You want them to have to, right? Right.

No. Yeah. If they have to, they've got to come live back at home. Yeah. And nobody wants to do that. I know I tried that for a year. I've done it right. So you could do that.

So again, I'm pretty comfortable where, well, I wouldn't say I'm comfortable with college, but I think things are going to work out. I'm having that vibe. Okay. With them. And then. I feel better than the magic eight ball. Sure.

Yeah. If they can't, if they don't get into a college that's free, if they're not getting all these scholarships, then be like, okay, I will support you. But if you go to. a community college. Right. No, no, no. Two years, community college,

get your basics down and then move on. Yeah, but not like, don't, like, be like, I'll support you no matter what. Like, if you go to the most expensive school ever. The other three's father will help them, too. Oh, okay. Yeah. Well, you know for a fact?

No. But I mean, I make the assumption. That's not a great assumption given our history. Yeah, I was going to say, on everything I've heard so for. I was like, but, I mean, he really loves his children, and that's really important. Good.

Yeah. Yeah. Okay. Well, hopefully he's saving up for that thing because that's also... I have no idea. So, and... I don't think he's spoken to me in eight years. Really?

Yeah. What do you... Choice Hotels get you more of what you value. Comfort in. It's calling your name. Save on the stay. Oh. And free waffles are yours to claim.

We'll direct at storesotails.com. I think you need to retire. In 20 years, if you just retired in 20 years. Oh, I mean, if... If you want to, what do I really think I need? On an annual basis. How much money do you need on an annual basis? Oh, that's a good question.

Okay, so maybe I need like $50,000 a year. I mean, is my house paid for? Those are the questions. Is my house paid for, you know? How much does it remain in your home? How many years? Maybe 17. Well, you said you got it 10 years ago?

Okay, so the house will be paid for. So the house should be paid for. I think we got a 20-year, 20-year mortgage. Oh, really? Does that sound standard? 15 or? 15 or 30. Oh, 15 or 30? Oh, okay. So not 20. Maybe 30 then, probably a 30 year. Okay. But, I mean, the other plan is to like make that extra mortgage payment every year just to principal.

Just one extra? And then, right, I thought there was that like whole thing where if you make one extra payment to your principal that it knocks it down. It's not going to like, it takes like several years off your mortgage. One payment a year? That would, I mean, I guess I don't know. Like one extra payment. I don't know. Maybe I read that a long time ago. I don't know.

Okay. I don't know. What do most people need? Like if it's just you as like a person. No, that's up to you. I'm thinking like 50,000 a year. No, 50,000 a year in today's money. And today's worth of the dollar.

Yeah. In today's worth of the dollar. I mean, that seems like I could live off of that. Maybe I'm not like taking expensive trips to Europe or anything. But like, I mean, I don't really eat that much. And both my dogs will be. be gone by then? Oh, don't say that.

That makes me sad. We just don't talk about that. Okay. So I'm guessing I need two and a half million dollars. I'm seeing about two million. Okay. You'll be able to pull off like three percent ish. Yeah, but I don't know where I'm getting two million dollars from.

Well, we're going to talk about compound growth and how to get there. So right now, with where your account is at now and what you're invested in in today's, well, two million in today's money, to be clear. Yeah. So that's what I'm doing the math off of. Let's see how much you would have to invest on a monthly basis. Oh, no. The number's getting a little high.

Yeah, I think I have to invest like 27, 2,800 a month to make it to that. Make that about $3,400? What? No. To make it in today's money. Today's money. So like, I mean, for how many years? 20 years.

20 years? Yeah. 20 years. With what you're invested in taking those things out, I'm giving you an average rate or return of 8% than taking in account inflation for the value of money. Okay. I mean, yeah. So what will actually be probably, probably, is around probably $2.7 million in future

money in 20 years, but we're talking to inflation. Okay. All right. Yes. Social Security, we don't want to rely on that. Sounds like I need to get another job. Not necessarily. Okay, that's good.

I mean, I think I could probably save like $2,000 a month. Well, it depends how much you want to be able to, if you want to read a job. Turn. Okay. Be able to return. Yeah, I'm feeling like ramen. That'll get you six. Well, that'll be $60,000.

So it's a little less to be 50, but I was just doing some rounding up. Now I'm starting to feel nervous again. Like I should put in my goat milking application soon. So right now that would be saving 48% of your money, not including the child support. So take away child support and this is 48% if you did what we talked about, $3,400. Okay. Which is a big percentage to save. Okay.

Yeah, no, no, no. It makes me feel a little... This is why we always talk about starting investing early. And, of course, you went through that horrible thing. But just, for example, for the audience, the best years of time... You would just want the years of compound growth. And you're only, if we're talking 65, going to be able to take advantage of only 20 years of compound growth.

And that's annoying. And that's annoying for you. But that is... Okay, well, I only talk about what I would do. I would understand that and understand the math around that the way we've laid it out. And I would do it because I have to do it. Yeah. So I would.

Just is what it is. Luckily with your child support, you know, we're talking, this is going to bring it closer to like 35% of your income. And that's not a terrible percentage of something. 35% of post tax. 35%. Okay. No, I feel like it's doable. It is.

Yeah. That's where the monthly budget comes in. If you know here's the pie of money I have, divvy it out, we have a minimum $4,400 that we're putting into the brokerage. You know, we're maxing out Roth IRA every year or your traditional IRA. And we're, you know, you can max it. Well, because the 401K tax advantage, you know, probably tried to get as much of it in there as well. So that'll be pulled from your $3,000 paycheck as well. So some of it there.

And then the rest you can put into the brokerage. So you'll just have the math that out and you can sit down with the financial advisor to it. Okay. math it out in terms of where it's best to take from. But as much as we can take to put into your 401k as well. It's a way to go? Yeah, versus putting in a brokerage or the rest we'll be put into a brokerage. Or into like a savings account, right?

No. Yeah. Okay. No. Because that will just, even if it's a high yield, we'll only be growing at 3%. We're at least growing at 8%. This money has to grow at 8% to meet the goals we want. Okay.

In this $3,400. But also keep that savings bucket. Not put it over there and then take it out if I need? No. What we already have? have for the emergency fund is fine and then we're saving up for the car and we're saving up for the okay one thing you can do and i wouldn't necessarily do it this way if you know a car is getting older but if a car breaks down you can just use the emergency fund to pay for like a 20,000 dollar car

in cash and then just an emergency save up as much money as possible to rebuild it to 30 40,000 dollars okay so that's up to you how you want to go about it i would rather have a car fund if i know the status of my car so it's just again Again, this will come down to budget. Where is the money allocated and we're sticking to the strict rules that you set out for yourself? And then you could put $3,400 a month, I think, on this. Now, once all child support is gone, which is actually going to be a while because the youngest is 11 and then 13 above that. Right.

So I have, you know, I have five years until it's really... We can take a look at making sure that those side hustles for the writing, you know, go from $4,000 on average, to $5,000 on average, anything like that. helps. I get much more comfortable if the 2,700 starts being replaced through the writing position. Through other things. Okay. If you can.

Yeah. No, that's definitely been a concern. But, and again, but my time will also free up and I'll have more time to like work when you don't have to take care of four kids. Right. Absolutely. Yeah. So the thing is, coming to the end of this, my thoughts on this in terms of your anxiety, I think a lot of the anxiety is just.

you don't know. Yeah. You don't know what retirement looks like. We don't know if we can afford the home. We don't know about paying for college. We don't know where our budget is. So the more you can structure these things, having this concrete budget,

knowing what we're saving to meet a retirement goal, which we can hit. If you put that money aside, it gets rid of these anxieties, and I think you'll be in a good place. I think you're in an okay place now. I think we get to a good place by just structuring some of this out. Okay. Okay. Well, that makes me feel better.

Yeah. Sort of. Now it just takes the step of actually doing it. Right. Yeah. Yeah. No, now it's just kind of like, like you said, like kind of figuring out to think about it from a different perspective than I've been coming from. And be like, oh, okay. How do I maximize and make everything work? Absolutely. And you can sit down with whoever your representative is at this investing platform. I'm not sure that who that is as well. And if they suck, then I would transfer it to someone who doesn't suck. No, I like the guy so far. So good. Yeah, yeah. He's been really nice.

Cool, cool. And make sure that you're trying to at least get something that averages out on a 10-year average of at least 8%. I would try to go for that 10%, which I don't like having everything only in one thing, but the S&P 500 on average gives you that 10%, just over 10% on average. Okay. So that's where you stand in my shoes. I think you have a good path forward. It just comes them to discipline, structuring things, and stuff like that.

What are your final thoughts? Well, I'm feeling better. feeling a little better. I mean, the fear of the unknown is just so hard. Like, you're just like, well, what does life look like later? And I think that's something that's been causing me, like a lot of anxiety. So this makes me feel better knowing like, hey, it is possible. It's going to take a little bit more elbow work. And that's okay. I don't mind a little bit more work. But knowing, like, oh, okay, having that number in my head and being like, okay, let's try to get that into an account because it's going to be better later. We'll be, um, that makes me feel better. Just like,

okay, I've got a goal. I can hit it. Again and again and again. For Brooke, her overall financial position is pretty okay, pretty middle of the road. That debt situation, she's going to take care of it today then, debt free except for the house, so that's really good. She just seems to save a little more for retirement to kind of catch up with the money being stolen and everything like that. So right now, Hammer Financial score, 6 out of 10, but it will quickly be a 7 and an 8,

if not a 9, than the 10 in the coming years. Make sure to check out all the fun links in the description, including my Twitter and Instagram. Don't forget to subscribe. Thanks.