Financial Audit - Being Sued For Refusing To Pay Rent

Episode Date: April 22, 2024

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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. Book direct at Soysototel.com. My name is Daphne. I'm 27 based in San Marcos, Texas, and this is Financial Audit.

Thanks for coming up from San Marcos. What do you do there for a living? I'll actually work in Austin, but I'm an elementary assistant. That's kind of a commute. Elementary assistant. So is that like front desk? like helping in the classroom. Yeah, I'm an assistant in the classroom. Do you have a degree for that? I have my certification. So I'm a Montessori elementary assistant. So it's not public. It's a little

different. So I have to, you have to go get a bachelor's and then you have to get like a certification specifically for Montessori. And I just finished that training in June. And yeah, so now I'm just working my way up the ladder to become a full lead. Oh, very nice. So what do you make right now? Well, actually just signed a new contract today for a new school, and I'm going to be making $22 an hour. Okay. How many hours a week? Is that 40? Yeah, full time.

Okay. But it's only nine months, right? No, it's year-round because they have summer camp, so I get the option to work in the summer. Okay, so with no time off, which I assume is not a thing, would be $45,760. Yeah, but I also get the like the, the time off. winter break and the fall break and spring break and all of that so we had come in 2,511 that's so that's from my old school because you were making how much um I was salaried at that position I was like 43,000 a year yeah it's 43,000 so this is going to be similar then yeah it's a little bit less but my take comes

more just because here in Texas I don't they don't have the state tax goes in Colorado oh and so this was Colorado yeah I just moved back like maybe two weeks ago so you're from here and you Yeah, I went to Colorado to do my training for the Montessori, and then I did my internship out there, and then I decided to move back for reasons. What's the state income tax and toll? 4.4. So I'd say you're probably going to bring home. Let's include those vacations and everything on a monthly average. $3,200 a month.

And I get 380 in child support a month, so there's that. three oh 379 379 3,200 so 3,579 we can call your income

yes okay cool so welcome back and I'm glad you got a new job and you're starting to climb the ladder so that's good um what's going on in Colorado though

is immediately what sticks out of my head because we have an outstanding balance An outstanding balance for an apartment of $3,060.1. Outstanding balance. And you weren't making nothing. I mean, among the higher wage earners, no. But what is going on? Yeah, there was a lot of things that were going on prior to this.

And I was having a lot of issues with the apartment complex. I had moved there at the beginning of the year. and within I want to say was it like April I started having Had a few months in okay yeah I had a really bad Rodent issue like it was Yeah for two months I had this giant rat in my wall

And I kept telling him there's a rat my wall They didn't believe me and I showed them the videos That I had of this rat and then they had the pest control come out And then they're like well it's not that big of a deal It's not a yeah it was So that was one issue And then underneath me was basically like a trap house And so that was

a big, yeah, like there was always random people coming in at random hours of the night. Very sketchy things. So drugs and insertions? Yeah. Yeah, it was really scary because there was multiple times where there was like violence threatened. Police had to come out a couple times because of guns.

To you, violence against you? No, like the person that lived there and then the random people that were coming in and out because of whatever they were doing, they were just always threatening violence against each other. only had kids too. Yeah. How many?

I have one. How old are they? She's six. And that was, it was really traumatizing for both of us because there was a couple of times we had a hide in the closet because of the shooting. What's the fuck? Yeah, the cops had come out and it was, so that was scary. How were they not kicked out immediately?

Who would want this in their property? Yeah. My neighbors were also said that they had been there for like a year and. Was this like a lower income community by the way? No, it was a regular. It's a regular apartment complex. I had to... And yeah, I would tell them...

I mean, my dog even got attacked by the... Because random people were always coming, and then they had random dogs and just really scary. Yeah, and then summer came around. I didn't have AC. I kept telling them about that. They were ignoring me. They didn't do anything about it.

I went the whole summer without AC. Granted, the summers in Colorado aren't that bad, but still, it was 85 degrees in my house. I had a kid, and my grandma was coming to visit. It was just... So I kind of got to the point where I... I was probably not the best choice, but I kind of got to the point. I was like, hey, I've been trying.

Did you talk to anyone legally? So, this might, I mean, I don't know. Yeah, I tried. A lot of the places that I was getting referred to for, like, low income or just, because I was at the place to, like, get a, like, a big lawyer. And I've never had to do anything like that before. So I was trying to find, like, like, local lawyers, like, low income. I got a lot of recommendations from like the community center that I went to and they gave me a lot of like low income housing.

But anybody that lives in Denver knows there's a huge housing issue. I'm not just talking about that. I'm talking about legal help with them not fixing AC, trying to get you out of, you know, contract maybe even more with all the dangerous stuff that was going on. And obviously not holding up their end of likely the contract that you signed. Yeah. Because I assume you just left. Is that what this means? Yeah.

You just left. Yeah. Did you leave? End of September. So you made it all the way to September. Okay. Wow. Yeah.

And then so, like, there's a utility bill that came in and it was a late fee. Then we had to back rent and late fee and late fee. Well, I mean, you're just obviously not paying it. But, I mean, okay. Yeah, I mean, it gets a little weird. Yeah, I don't know much of the stuff. Instead of you pursuing them to try to get. get out of a contract that sounds like in any kind of way, which is hard because you're just a

person, you know, making $40,000 a year or whatever it was after taxes was like, you know, almost 30. Wow. I mean, that doesn't make sense. I don't think you're working as many hours as you, but it was salary. I'm a bit confused on the income that came in. I'll be honest. But either way.

Well, I just started that salary. You just left. You broke the contract that you signed, which means that. I mean, yeah, this would be, did you give them notice? So what happened was because all that was happening, they came to me and said, well, we're going to evict you. And then that's when the whole. Evict you. Yeah.

And then that's. Or why? Because I wasn't paying rent. And that's when. Why weren't you paying rent? Because of all the safety issues and they were ignoring me. So I went, like I said, probably not the most, like the smartest move. I would have rather you talk to someone legally.

Yeah. Yeah. I can retrospect. that probably would have been best. Instead of just not paying rent. Yeah. So, yeah, and I got to the point we had to go like, oh, it's like civil court or whatever.

And I showed up and I told the judge, I was like, hey, you know, this is all going on. And I, from my understanding was my options where I either just paid the amount of rent that was due, which was like the $3,000, not without the late fees or anything, was either to pay that to the property to be able to stay or to. This is Euphoria. Calvin Klein, the new elixir collection, featuring three perfum intense scents, 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.

by a certain date and then it would all be considered like even. Okay. That's what I understood. But now I have this bill that they sent me. What do you mean? That's what you understood. Was that the decision that was? So,

because the way that it's, I don't know how to, the way that it's worded, it sounds, because. Did they take you to civil court? Yes. They took you to civil court.

Yes. Okay. And I don't have a lawyer. Like I just, I just presented the court with all of the photos of all damage that my apartment suffered. What the judge decided in the end? They gave me.

It was a stipulation agreement is what they gave me. Okay. And so that's what I signed. And it said that, you know, I had to be out by this date at this time. And you were? Yes. Okay. And I had my keys.

And that's a funny thing, too, because a week later they called me and said, well, we need your keys. You're not out of the unit. And I told them. I said, yes, I did return the keys. There were two people there. And they're like, okay, well, we'll see if we can find the keys. And they didn't seem to believe me, but I haven't heard back from them since then. I also emailed them about that and asked,

Well, they obviously seem like absolutely terrible landlords. They give every one. They have a two star rating. I'm not surprised. Total unpaid charges $3,910, even though it says out balances. Unless any balance is $3,000. I think they took my deposit or applied to that.

Okay. Well, yeah, you're probably not going to get just here to security deposit back, but obviously you're just trying to get $3,000 off the bills. Yeah, you have to, especially when we go to the rest of the debts. Obviously, your debts really stack up for your income situation as a single mom, right? So, okay, I don't have the judge's decision in front of me. I have no choice but you just take your word and just, you know, your hopeful understanding of the situation. So what are you doing now?

You're challenging it? Yeah, that's why I reach out to them. And, yeah, I just, to the apartment complex. I sent them an email and it's like, hey, you know, I signed this agreement. It's from, this is what it said. I kind of quoted it a little bit, but I also don't understand legal wording that well. And I just, that was last week. I haven't gotten anything back.

So I don't, I don't know. I may have sent it to their lawyers and it could take a bit. Yeah, so I'm not, I'm not sure what to do about this. And I don't, I don't, like, have a lawyer or anything. I don't really know. I know. And there might be people. who are willing to do lower income services as well.

Even if you hire a lawyer just to look over the agreement, I mean, I could, maybe we could find someone to do like a few hundred bucks. I don't know. It's hard. It's probably going to be a couple thousand. It's a retainer. So, yeah, I might look for resources to see what you can do because, I mean, at that point, then you're basically just doing this.

Saving that money. I love when my money is making more money in the SO-Fi high-yield savings account I use has 4.6% interest on that money. It's the savings account I personally use for my tax money that I set aside and other money that I just want to be building while it's just sitting there. And you can get bonuses by signing up all the way up to $250 by using my affiliate link in the description below. And it's not just because they're my affiliate. I personally use them. They're great. I've had a great experience with them so far.

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If for some reason this isn't... So, okay, you emailed them, but you're not pursuing anything. You haven't gone to the court? I'm like, yo, what's up? No, I haven't. I don't. I recommend maybe reaching out to the office, that, you know, that judge's office, if possible. The court office?

Yeah. Okay. You know, I was, yeah. Whatever system they were in. Was it like the county? Was it? Yeah, the county of that place. Okay.

Okay. No, I get it. Okay. So, yeah, I mean, maybe we sent an email in or leave a call or something like that. Okay. See if we can. Yeah, because obviously, if what you said was correct, then obviously these people

they're probably stuck in a big paperwork of corporate bullshit and they probably don't even give people who work obviously the people manage near place don't give up their time. Well I mean in the few months that I was there they had two different. That's another thing they had switched over management so when I

moved in like oh we just got new management blah blah and then like right before the rat thing happened they switched to another management that's how I found out because I was emailing them you don't know who the owners are though do you now it's a big corporation And that property is really big too. But they switched over to a new management.

And when I went to go tell them about the rat situation, that's when I found out they didn't tell us like, oh, we got new emails, we're in new management or anything. So the communication there's also really sure. Okay, I think first step for this, see whatever community resources are there are. I'd maybe reach out to some housing lawyers and just explain your situation in an email or voicemail

and say, you know, I really don't have much, that kind of stuff, and just see who might be able to get back to you. Maybe someone's willing to do it for like $500, something like that. Do you reach out to a lawyer in Colorado, right? Not in here? Yeah, probably. That might just make it easier,

especially if they have to show up in person or anything. Okay. So, yeah, whatever that town was that you're in, and look around, leave lots of emails and voicemails. Try to explain your situation, see if someone's willing to help for, you know, a lower income situation. Look at community resources, you know, do that for a couple weeks. If we're like three, if we're like two, three weeks in,

maybe reach out to the local, you know, the judge's office there. And if for some reason, and I really don't think this is going to be the case, but if you can't get any community resource, you can't get a lawyer at all, and then you just never hear back from the judge office, which, again, I don't think all three of those things would not have. happen which would that would just be wild there is the potential that eventually this will go to collections and maybe you challenge it you challenged it with the credit bureaus be like yo here's this legal you have a piece of paper right i mean what do you have yeah i have this i have a they emailed me

the copy of what i signed or the stipulation yeah so that's what i need help fight it there yeah so okay i just need help do you decoding it um it's on my can i take a look yeah um let me take a look I'm curious. I've gone through many, many, many fun legal documents, especially on the real estate side, because I am a, I do own some rental properties now. I actually treat people who rent it with respect and don't around. And also if they just want to leave, I just let them leave anyway. So, but either way. Should have moved to one of your properties. Well, you'd have to live in Michigan for that. And I know we haven't gotten into any of the debts yet, except for this one.

It's an interesting thing to break down that we haven't had before. But while she's pulling this up, you should hit the subscribe button. We're trying to get to a million subscribers. Thank you to everyone who has subscribed so far. Love you all so much. I think this is it. I think this is it. So, yeah, I don't.

All right. Maybe you can help me. Look, it's only one page. That's what they signed or they sent me. That's what I signed. This is why you don't sign things that you don't understand. Yes, I would always go in with a lawyer. I mean, you're being sued.

Did you look at any public options? Yeah, so the public options that were given, because I went to the community resource to people, and they gave me a list of like, um, Exema is unpredictable, but you can flare less with ebbglis, a once-monthly treatment for moderate to severe eczema. After an initial four-month or longer dosing phase,

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Epgless, allergic reactions can occur that can be severe. Eye problems can occur. Tell your doctor if you have new or worsening eye problems. You should not receive a live vaccine when treated with Epgless. Before starting, Epgless, tell your doctor if you have a parasitic infection. Ask your doctor about Ebglis and visit ebglis.com or call 1-800 LilyRX or 1-800 or 545-9. Low-income, what do they call it? Low-income representation, something like that.

And it was either really low-income or free. And then some of them, they were like, yeah, we can help you, but you can't help you until like this day. And I was like, well, that's going to be too far after the whole thing. It's hard for me to read on the phone. Can you email that to us? Yeah. Okay. We'll see what he says.

See if he has time to get to it before you leave. If not, I'll just text you later. And I'll probably leave a pinned comment if it's not included in this episode with what happened. So beyond that, we might owe that. I'm inclined to think you may, so I'm going to do rent, $3,060.1. Just slightly leaning towards that. Not 100% sure. You don't let the actual expert in the field of law decide that.

We have a 2019 Toyota Corolla. You got a car that was basically half the income that was coming in. The loan, the loan itself. have the income that was coming in in terms of the overall balance. Why did you get this? Okay, this is a good car. It's a good, reliable, safe. It'll get you a point A, point B, and it'll last a while as long as you take care of it.

Could have gotten a little older version. Why did we go and go essentially $20,000 in debt when you did this? Journey date, 2026. So, you know, we're waiting a few years still. Yeah. So I got that car in 2020. Six year long. Yeah.

In June of that year, actually got in a wreck. my car got totaled and um insurance cover up yeah so the total amount due for like the total amount and the amount that there was left on it was basically the same so i got like a $40 check for the difference so they just like totaled it out and so they paid the rest of that loan and then gave me the $40 extra dollars what's the interest rate on this thing um it's i think it's close like 18% Oh, why, why? Because. And why did you get a car that was obviously well beyond where it should be for your income?

Yeah, just, I was, like, everybody else just desperate for a car at the time. My single mom didn't have a car. My grandma gave me some money to put a down payment. And, yeah. Yeah, it was a very hard time for a car market, especially. Yeah, this was September of 2020 when I got that. So. So you got gifted some money for the down payment?

Mm-hmm. You don't have to pay that back? No. My grandma's awesome. 518% death, though. That's death. Yes. When you see you're kind of on that down trend of more money going towards principal than interest.

Yeah, I keep getting prompted to refinance my loan, I guess, because I've had it for so long. I just haven't done that because I don't know how to do that. With what your credit score may be. What's your credit score? It's, so on average between the three, it's like $600, because one's like $5. $590.600? 600. Yeah. So like five, one of them's $5.99 or $5.9.16.11.

I don't know. So the right around. $500. $526.526. And $6 minimum monthly payments. It's a lot. Yeah. Especially for you were bringing in $2,000 bucks before.

Is that what it was? $2,500? Yeah. But yeah, I was working here when I got that. But, yeah. I know. You have student loans. I do.

They're all at 5% or less. 4.5, 4.5. What is that 5? 12,000 for the certification that you got? No. So some of those are from a community college. And then the, this one, where is it? This.

This one. The larger one. Yeah, that one's for the certification. And these two are from community college. Certification was 9,500? Yeah. man this is why this is why I like talking about

my boys over at course careers for tech certifications because so much cheaper than that me 9,500 you borrowed did you put any money actually towards it or was it just 9,500 to complete it? No, that was the complete total.

Okay, so I mean your minimum with the payment across all these is probably what? 150 bucks? I don't know. I logged into it because I know that in October the nail net it says so I'm not so if I look on my thing right now it says that zero is due that's my monthly amount due right now it says zero when did you get your certification

I just finished it in June of this year so yeah you do get a few months yeah and then yeah these ones are but I'd look out for it it's gonna start very very soon for you well yeah so yeah the two those start in April one starts in January um but I was trying to look because I logged into my student loan account I was trying to look to see what what the minimum monthly payments would be. And right now it also is zero on everything. It doesn't give me like an estimated minimum monthly payment. Yeah, about 150th probably across the board.

What do you have so much in collections? See, this is why all of a sudden I'm even more skeptical on the rent thing because you have four things in collections here. So that just screams your responsibility. Yeah, so one of these, so actually two of these, this $1,000 and this 373, I'm fighting those because I did have my identity. stolen in 2020. And they went to Banfield

Vet Clinic? I don't know. I don't go to Vanfield. So, and then the other one was, I think the other ones, I do have a pet, but I don't,

I always pay out of pocket for her, which sucks, but, yeah. Well, you know, what could have happened is, you know, she went in a little more,

it was a little more happened in the visit. Maybe you signed something, and that's what you ended up owing, and you just didn't pay it. I go to a, Well, at this time, because I was living in Colorado, I wasn't going, but I've always taken her to this private bet. You've never been to a banfield in your life.

My mom's taken her, but I haven't taken her. Now, yeah. Okay, so your mom, I mean, that could explain it. Your mom took her, but it's still your dog on your account, and likely the payment was still owed on your account, never paid winter collections. I don't think that's something you can fight. I mean, you just answered it right there. Okay. maybe maybe probably a thousand hundred thousand thirteen now okay if you're

identity first of all lock your credit yeah I have a pin so this year when X um we're in 20 so this year did 22 last year we did 21 yeah last year is when I found out I had my identity stolen because I went to go because the lady who does my taxes she's always done my taxes every year and when we went to file it said that I couldn't file it because it had already been filed and she asked if I had filed them I said no I haven't and so I had to go how to go through the IRS and somebody else got to pay. I'm still waiting on like 10 grand

for the IRS to pay me from that year. That's what makes you conclude that your identity was stolen. No, no, no. When I went and, or not me, when my CPA lady went and did it, it said that was already filed under.

It being filed, it being filed is what made you determine it's been stolen. So her and I called the IRS and we spent several weeks and several hours talking to everybody. And they said that it had been filed, that it had been paid out

to somebody and then they told them. Yeah, someone tried to get your refund. They did get my refund. And so the IRS said that my identity was stolen and they locked my account. So now that's why I have a pen for both of my daughter and I both have pins on our things now because of that. I'm sorry for just plain devil's advocate. This is what I do. I push back on everything.

But it's okay because it creates more open-minded conversations. Hopefully. Sounds like you also just really don't know what the fuck is going on. Like it sounds like you're all over the place. money's mismanaged, you don't know what's happening. What if you accidentally went through TurboTax? Did a couple clicks. Did just a very easy, quick minute refund.

Not saying it did. I'm very skeptical that would be the choice. But again, with the Banfield thing, you said your mom has taken them there. It's like you weren't able to get to there mentally until I was able to walk you through it. So just a slight bit of skepticism when it comes to this. I bet I probably was, probably was stolen. That's terrible. Obviously, that's a...

Yeah, because that 1,000's from, like, a phone bill that they said I opened, and I know I've never had a phone bill with that company, so I'm fighting AT&T. I do not have AT&T. I've never had any AT&T under my name ever. Your parents have access to your credit score? No. Credit score.

Social security number? Well, yeah, I mean, my mom knows my social security number. She's my mom. Okay. Well, I don't think mine knows my social security number. on the top of her head. I don't think she wrote it down when I was a kid. I know.

She might. I mean, I have my own card, but... Either way, what unfortunately, is very, very, very, very, unfortunately more common than I like it to be. Someone in the family going on the road of applying for things using a social security card of a kid or relative. Again, not saying that. I'm just bringing up potential things that may have happened. I don't know Can you ask her?

Is she the only one that would know your social job besides you? What about the X? Okay, so we did cut something from the episode. We won't talk about it, but we may have found a potential person that has access to your socials. That you're not in contact with. Yeah.

Could have happened. I know communication with that individual is difficult. I would try our best to at least. try to hunt it done. Okay, and then offset energy, you straight at you at least accept responsibility for this one. Yeah, that was when I was 19 and I moved down my first apartment and I moved down. I just decided to not pay it. So, yeah, that was me being young and stupid.

And so, yeah, that's. Young, dumb, full of complete stupidity. Young dumb and broke. Versus? V.S. A little, oh, yeah, that was, that was Victoria's secret card. That was, that was me. Yeah.

Kill me now. Yeah. Yeah, that one went bad because I was paying on it because I've had that, I had that card for like six years, and it went bad because over the summer when I was doing my training, I wasn't working, and I told that I would let that go. So that was 100% of me. So I made a payment to this one recently. So my total balance day right now is 250. One, 251. And interest is occurring on it.

It's a synchrony card. Did you finance something? Yeah, it was care credit because that's how I always paid for my dog. I thought you said you paid cash. No, like, I paid out of, like, that's what I meant. Okay, that wasn't cash, but. Like, I didn't. Dude!

I know. She's getting old. She's had a lot of stomach issues. And, yeah. I'm sorry. I mean, that sucks. Yeah. Please, with me, say what's correct.

This is from this summer, okay? The other times, yes, I did pay cash. This was from this summer. I can show you the statement. I didn't open this card. a statement? When was the statement? This statement was from the end of September. Okay, so last month, last month. Guess what? Amount past due, $30. This was, this was less than a month ago. This was a few weeks ago. Yeah, September is the only month that I missed because it was the only month that I missed because

it was all that matters is one. All that matters is one. Why did you possibly miss a payment? Because I was busy moving. That's not an excuse. No, we do automatic, if you're, if you're not someone who can be on top of we do automatic. We do automatic because we just, if we're not able to be an adult, we need to let the program be an adult for us. So I have my shit automatic because I suck at organization stuff too. Yeah.

I'm sorry. I'm sorry. I know. I go a bit hard. It's just, I want to make sure that in the future, when things are owed, you're not getting penalized for it.

Because these companies are going to take advantage of you. Yeah. They're going to, they're, they wait, they want someone to be in your position where things get too busy. They don't have automatic payments on and they just miss one thing and they just hit them with a fee. Yeah. And I was also, a $40 fee is what you had. Yeah. Like you said, last month was the only month they didn't pay. I've been, I've been making a $175 payments. So that way, because so the first, um, amount that got put on it was over $200. So it's like six month interest-free. So that's why I'm really trying to make sure I paid off before December, because I got it in June. The second one, though, it was under $200. So they said that that one

doesn't have the interest-free option. So that's where that interest is coming from. And, yeah, last month, like I said, I was a lot of steel. As you see in my spending. But, yeah, I was just, and yeah, I was in the process of moving everything from, like, my credit, or, yeah, my credit union in Denver to get a SOFI account. So I was in the process of moving everything over there and updating my and I hadn't I didn't have the card yet when I got this and I didn't know that I could look through my Samsung wallet and get the information so that's why I missed that but I didn't as soon as I got my card I made a payment of like 350 so so I don't want to go 250 on it now 251 she did warn me before that she was going to cry by the way it's yeah everybody knows me

knows I know to cry all the time but you want to take a brief moment okay I'm probably going to cry more late huh no it's fine Okay. I'm usually, for some reason, I'm actually very much a cryer myself, but for some reason when I'm like in front of that camera, like my brain doesn't allow me to. I'm usually a co-crier. If someone else cries, I immediately get to your eyes,

but something about right here, I just can't. I don't know why. Okay. So is that all your debt? The collections, the rent, the car, the student loans, and the synchrony? Yes. Okay.

And the collections was, How long have they been on your account? By the way, what's the oldest one? Can I pull up my credit karma? Or just a rough guess. The oldest one would probably be the Austin Energy. Because that one, like, when I was like 19. 19 and you're 27 now.

So I was like, actually I was 20. Yeah, it was 18, turning 20. So it should probably be falling off soon. What's your second oldest? I'm sorry. How old's your second oldest? I only have one. Second oldest.

Oh, sorry. I started talking about kids. Sorry. No, you're good. Jesus. Um, second oldest, sorry, so Austin Energy would probably be the oldest. Um, this, I guess it would be in between these two,

because I'm not sure when this one got put on. How oldish? This, maybe like a year or two. Okay, so, okay. So the, I'm going to assume the Banfield is going to fall off. And I don't know about that $1,000. I'm sorry, I'm going to assume the Austin Energy is going to fall off. $1,748 in collections.

It's likely what's going to be a thing. No, actually. though have you touched the Austin energy at all no made it okay so this is so if I checking account yes so um yeah so you'll see in my credit union I took out like cash because I moved most of it over here and then so I kept like in cash I'm like okay this is the only money I'm spending for groceries or gas like I kept it in cash so I wouldn't use my card are you just getting $6.88 cents of gas is that a thing that's Safeway is a grocery store what are you getting for 688 that That screams to kiddos to me.

No. It's more like I was like, oh, my spaghetti or something, I realized I forgot one, two things. You do that like every second of your life. Yeah. You stop in, you stop in, you stop in. You have 1,416 in here, so that's pretty okay. That was my paycheck from my old school.

Okay, cool. Now, in the standard checking account, ATM would draw 80 bucks, ATM would draw 100 bucks. Who knows what about when we went to something birthday, V birthday? No, so those, When you at this, at this school, so this is my savings, my savings account that I had with them.

Savings account? This is not a savings account. I know. That's why I did this. But so like versus like pink and V. That's so when you set up like automatic like transfers, you can put where you're putting the savings for. So that's what that was. Bill birthday and pink concert.

We're not going to a pink concert. If we owe money on a credit card, if we have a death card, 18% death insanity, we are not going to a. pink concert and I saw pink actually I saw pink live never thought never had the desire to it's just random at a music festival she's great I want you to see pink guess what not while you have an 18% death death death death interest rate because I want you to have a better life I want your kid to have a better life pink doesn't need to have a better life surety has a good life and the rent back oh I know there's confusion around them but come on yeah that's what that was What's P-A-I-I-S-O?

82 bucks, 99 cents, P-A-I-S-I-S-O. There's a lot of money to be spending a situation and not know where it's going. Yeah, it was probably just like a cash withdrawal because there was a banker right down the street from home, so it's probably what that was. Lice cleanse. My daughter had got lice. Yeah, that sucks. I'm sorry. I'm sorry.

Yeah, she got that right after she had COVID, which was not fun. Oh, no. Double. to punch, child help? What's this? So that is a, it's like a charity organization that helps.

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We give to charity a ton to charity. When you're out of bad debt, when you have a fully funded emergency fund, when you are out of bad debt, in 18% is being squeezed from you. And you have a fully funded emergency fund and you contributing 20% to retirement, you are going to be able to contribute in a longer-term way more money than just doing little want-offs here. in there. So if you want to support them, support yourself first, get to a financial stable place so you can then just completely fund them.

Roblox Premium. Yeah. Come on. No, that was my daughter. No shit. Yeah, I know. So I fixed, I didn't, yeah, I fixed the Amazon thing. So I, that shouldn't happen again.

I see someone's looking for a boyfriend or girlfriend within the San Marcos area. No, Austin. San Marcos says I have good options. Oh, well, $32.46 for that hinge premium. I canceled it. I have hinged free. Alamo Draft House. Alamo Sloans.

That's another Alamo draft house location. Okay, well, stop. We're going to, we're paying off debt. King Supers. That's the grocery store. Okay. Red Robbins is not. Neither is McDonald's.

Neither is Taco Bell. Neither is a liquor store. Neither is the birthday. fund or the paint concert or peoria or raising canes peoria was my dentist that was my co-pay for my dentist that's good take her teeth good McDonald's that's not dentist probably not dentist's approved either donuts I think venue not 50 bucks chick fillet central park Arkansas who knows maybe is the story you're purchasing from there is that ATM withdraw does it say ILiff because I know one of them looks weird and it's actually a gas station if it says I let eat Ilift that's the gas

Okay, well, maybe. ATM would draw $45. Kid to kid. Yeah. What is it? It's a consignment store for, like, kids' clothes. I was getting some jobs. JobTest.org?

Is that you had to take that to get your job? It was like a placement thingy. So they were like, just like skills, like, see where my skills are and all that. Pooh. McDonald's, Burger King. Yeah. Liquor store. Lava Island, Lava Island.

Google purchasing. That's my Google One account for my, yeah. For what? Well, I'm a teacher, so I make a lot of stuff. Why isn't the school? Yeah, I know. I work in a private school, okay? So it's even more.

It's even more, yeah. I don't have a union or anything that protects me. You know what, a teacher that doesn't make a lot of money, and owes back rent and owes a bunch of collections, and shouldn't be doing? Everything I'm doing. Door-dashing Starbucks. Door-dashing Starbucks.

Two things that you should not be doing, Bind into one. Chick-fil-A, Papa Murphy's, the birthday fund, Pink Concert Fund again, Papa Murphy's Zan Ice Cream and Hulu and a White Glove car. You get in your car like... Detailed for 105 bucks? N-uh. We go to a place with a little vacuum.

Expedia, Sonic, Chick-Leadier got refunded. That's good. Chick-fil-A, Chick-fil-A, Jersey Mikes. I think you said that was a grocery store of the king thing. So Amazon. Okay. So in your savings, we got it with $900. You've had over drafts.

Year to date, $60 bucks, over drafts. You can't be overdrafts, my dude. We got a kid. I don't know. You're... I have a breakdown. Yeah, transportation costs a lot of your money. 15.5% of your spending goes to that's a lot.

2.40 to your phone. Going to the grocery store, 8.2%. But guess what? 8.8% goes to eating out. So not great. Unknown shopping, typically Walmart or Amazon because you don't necessarily know what that is is 4.3.

Subscriptions 2% miscellaneous. Let's see what we have, miscellaneous. Usually it's tiquitos. Miscellaneous. Well, the child help, that's okay. Liquor store in that Central Park thing. Liquor store, Lava Island. Getting a massage, I didn't even see that.

Massage is good. Self help, good for the mental. Let's get out of debt first. I bet that's better for your mental. Either way, that's 10% of your spending. 10% of your spending. That was a big mess up on my part because my boss had given me a gift card for a massage for like me leaving.

And she told me it was for a two-hour massage. And so that's what I had booked. But when I got there, apparently it was only for like an hour and a half. So I had to pay the difference. So that's what happened there. Go on and get in your car details. And the fucking ATM withdraws. 20% of your income.

Meaning out of the money that could have been going towards debt, like 30, maybe, maybe 35. percent of your spending could have gone towards debt but went to bull-h-said that you're prioritizing. I hope that's a wake-up call. I hope this whole thing's a wake-up call. Yeah. Because right now, not good, dude. Yeah. It's not good.

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Right now, you're living alone? No, I live with my grandma. Okay, so do you have rent? $300. Wow. Yeah. Living the good life. Yep.

One of the reasons I decided to come back. So 300. Okay. And do you, is that to include internet and utilities? Yeah. Do you give extra? Wow. That's incredible.

That's incredible. Okay. Your debt. I'm going to include the student loans because they're about to start anyway, so we may as well budget for it. $706. $0.6. What's your phone bill? 30.

How much needs to go to medical on a monthly basis? I. Rescriptions, child stuff. I don't have to. because my daughter has, she gets state benefits, so I don't have to pay anything. Will she still at your $45,000 a year? She gets state benefits now. I don't, I don't know.

I just signed my new contract with my job, so I don't really know what that looks like. And a lot of times you have to be there a year before you can get any kind of like benefits through my school or through schools. So, at least in the private sector, I don't know about public. Subscriptions and stuff. How much was that Google one that you have to pay for school? It's like $2 or $3 something, two or $3 something like that. Well, the one, okay. See, then that wasn't Google One.

The thing I saw you purchased through like a Google Pay or something was like $80. I'm going to give you $10 or I'm going to give you $15 for subscription, whether or not, whatever that goes to. I don't care. $80. $80. Oh, yeah, $80. It was an expensive purchase on there.

So let that be your subscription to whatever, roadblocks, blah, blah, blah. Okay. Grocer is for you and your kid. She's six. and we've done a grocery shopping trip and everything here showing that you can do a healthy, good, happy budget, $250 a person. So let's just assume she eats enough for two.

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This is prepping this is being very strategic This is going on the HGB website Finding what you want Do a pickup order so you're not picking up things in the aisle And shop lowest Price is highest That's a good thing about being back in Texas This is HV

That's right I missed HB Toll paper fun All the stuff 100 bucks Makeup and whatever else You make up for your hinge dates And

And not working out very well. I'm either, so I get it. And the, she's in school, right? Yeah, she was in my school. She was school with me. Let's say school supplies, extra stuff. What do we want to do? We want to do like 30 bucks a month?

Sometimes it's going to be zero. Sometimes it's going to be much higher. So what should we budget to it on a monthly basis? Yeah, I mean 30. It would be fine. She wants to do an activity, you know, like sign up for tennis or something. You never know. Oh, okay.

Anything else that You have to take care of on a minimum monthly basis My car payment Oh, your debt's already in there Oh, I see, okay Car insurance, how much? 150 Anything else?

My pet Yeah, how much should we budget towards that? Do you have pet insurance? No Probably can't at their age Huh? Probably can't at their age With what you were describing before

Yeah, she's about to be nine Yeah, she might have got to approve them Not 100% sure Might be worth looking into it. It saved me thousands and thousands and thousands and thousands of dollars. Yeah, animals are always stupid and getting hurt. Yeah, it's easily at least $100 because she's on a prescription diet now because she's old and it's having a whole bunch of GI issues. What kind of, what do you have?

Oh, what is she? She's the rot-weiler mix. Okay. Probably very cute. And I would probably give very many pets. No, yeah. She thinks she's a cat, which is interesting. Well, she, like, walks on furniture.

Well, she, like, will find the smallest space ever and try to sit there. Oh, really? Yeah. She's just as stubborn. You know, and I just learned today that one of my dogs is deathly afraid of rain. We haven't had rain since I've adopted her. And when it rains, she goes pee and poop on the back porch. So she doesn't have to go in the rain.

That's what I've learned. Yeah, my dog will literally hold her, her bells for, like, a day. instead of going outside. But she's also terrified of thunder. So she has like prescription transidone, which is crazy. Yeah. Yeah. All right.

Well, good news. You should have an extra $1,648 bucks left the month. What you need to survive on a minimum is $1,931. You already had $1,000 in savings. Stop touching savings. You do things through checking. Turn on automatic stuff. At least have $1,000 in your account.

Checking account. This first month, as you're just adjusting and everything, I'm just going to give first month wrap that $1,000 you have in your savings up to 1,931. You have a one-month emergency fund if anything happens

so you can take care of yourself and your kid, okay? It's a one-month emergency fund. Stay with your grandma until we're done with this process. What we're going to do from here, synchrony, month number two. I mean, honestly, month number one, it should be,

but I'm just going to be generous. Month number two, kill it, gone, done. Doesn't make sense. What we're... I'm going to put in the rent thing. If the rent thing doesn't happen, don't worry about it. Like if we find out you don't have to, then don't worry about it. We'll have to figure out something legally.

But for month two, month number three, you're paying off the synchrony bank and you're putting some aside. Month number two, then month number three, you're combining it at all and you're paying off the rent thing. Does that make sense? So in month two, and month three, I'm going to save the money to pay off the rent. And you're taking care of synchrony as well. Yes. Okay. lovely now after that

collections we're going to let's set for a bit student loans I think we're going to minimum with the payment until they're paid off maybe you can attack them if you want to but right now I need you to start catching up on retirement yeah how much you have in retirement nothing exactly yeah that's why I wanted to come

because I know I need to do that and then I have a kid so yeah do that so after 10 months your car will be paid off so that's 10 months after that so that's 13 months after that So that's 13 months in total. 13 months in total, you'll finally own your car. You'll have no synchrony card anymore. You're going to cut it up. You're going to use something like FIS, you know, if you want to take advantage of credit card stuff.

I just was able to get FIS because for a long time, they didn't let Android users use it. Oh, that's right. Yeah. So that's new and exciting. So you can use that, use it like a debit card, but have it actually impact your credit. You're not a credit card person. Chop up the synchrony. I would honestly close this so you never have temptation.

The car will be paid off. The background will be paid off. And honestly, by then, the collections should be paid to. We're going to say 14 months. 14 months, you'll be debt-free except for your low-interest student loans, lower-interest student loans. If you want to tax the student loans from there, you can. But from there, for me, personally, I'm getting you to a $10,000 emergency fund, kind of start an emergency fund, what you need before you move out, and then it'll go up with wherever your rent's going to be at that point.

So 14 months, can you live with your grammar for 14 months? Oh, yeah, I should let me stay forever. But can you? Oh, can I, like, be around my grandma? Can you, an independent person, you know, out there, on hinge, out there with a kid, can you live with your grandma for 14 months? Yes. Okay.

$10,000. You need to have $8,000 total. Or you need to have $8,000 more to get there. Divide that by our new found $2,500 a month we have extra. So an additional three months were good. So 14, 15, 16, 17, 17. 17 months, fully funded emergency fund, no more debt except for the student loans. You can take the student loans if you want to.

That'll probably take an additional five more months if you want to do it. But that's up to you if you want to. But from there, what I really need you to do is immediately, once again, you're paying off the student loans. But after the student loans or after the fully funded emergency fund, 25 percent, let's start playing some ketchup, needs to go to retirement, 25 percent on a monthly basis. It could be maxing out whatever retirement fund they have at the private institution. It could be maxing out your Roth IRA every year, taking advantage of whatever work. workplace retirement plan there is.

And if all those are maxed out as well, you can start throwing money into a brokerage. I doubt both of those will be maxed out at your income. So that's totally okay. So I'd max out your Roth IRA, $6,500 a year at this point. And then close out the rest in your work retirement fund. We can talk about that when you get there because, again, what did I say? How many months away? Like a year and a half, 18 months, 17 months.

There you go. A year and a half is nothing. You're 27, so it'll be 29, let's say. 29, still decades of your life. If you live a good long life, you're a third of the way through. So, I mean, that's great. And you're finally on the right track. And even then, you can do 50, 30, well, 50, 25, 25, 50% to needs max,

25% to wants, 25% to retirement. And that wants, you can give money away to the charities like you like to do, which is awesome. And if you ever want to increase your wants, just decrease your needs. Figure out the ways around that, but you do not decrease investing. to increase your wants. We never do that. And if your needs increase, it takes away from your wants. It doesn't take away from your investing because I need you to be able to retire.

We need to hear about the rent. We'll see. I'll let you know. But that's what I got. Do you have any final thoughts? Any final questions? I know you, then I'm still like trying to figure out the whole health thing. Is there we can probably like put a budget for like therapy?

Yeah. Well, what's your insurance? coverage. I don't know. I just signed my thing today. So as I'm saying, I need to figure out out. You know, it might extend it a couple months, which is totally fine. So just in your budget, figure out what your co-pays are, you know, budget in what it would cost for you to go weekly or bi-weekly, whatever you prefer, maybe start weekly, eventually go to bi-weekly. That's what I did. I started weekly and then once I was getting to a better place, I switched to bi-weekly. I've done therapy for years, so I just, you know what works for you then. So just put that in your

budget and it might extend the process by a couple of months. but that's totally good. Okay. Slowly good. Anything else? No, I just got to start doing it. So, yeah, if you all think about coming on, do it. It's really scary, but it's fun.

You got to make yourself better. So come get yelled at it by Caleb so you can be better. For Daphne and her Hammer financial score, when it comes to spending on a budget, it certainly wasn't the worst, but it's not even close to great for our overall financial situation. So two out of ten there, debt, if you're in collections, zero,

out of 10. Emergency fund, she's one tenth of the way there, so one out of 10. Retirement, she has nothing yet, zero out of 10. Real estate, there's nothing yet, zero out of ten. So those way pretty heavily against her, it's going to be a 0.5 out of 10. Make sure to check out all the resources linked in the description below. They are what I use or would use in specific situations. Thanks to all of our Patreon producers for making this episode possible.

If you want to participate in an episode of Financial Audit and you're able to make it to Austin, Texas, please fill out an application in the survey linked in the description below. You can also send a link to your friends or family who you think might be good to be on the show. If you have any questions, you can email casting at calebhammer.com.