Financial Audit - Dumb Blonde Can't Get Her Life Together

Episode Date: January 5, 2024

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USAA knows dynamic duos can save the day, like superheroes and sidekicks or auto and home insurance. With USAA, you can bundle your auto and home and save up to 10%. Tap the banner to learn more and get a quote at usaa.com slash bundle. Restrictions apply. My name is Kayla. I'm based out of Midland, Texas, and I'm 24 and this is financial audit. Welcome on over to Austin from that West Texas dryness. What do you do for a living?

I am an analytical chemist. Okay, cool. Out there, oil and the oils? Yeah, oil and gas. Yeah, yeah, yeah. What are we making? So I make 50 after taxes. Cool.

So I bring home about like 4,300 a month? Yes, sir. Very good. Yeah, and I know you're from Michigan as well. Yes. Yeah, you went to Northern Michigan University up there. I did. In the freezing cold.

Cool. So. Yeah, freezing cold and snow. Yeah. 24, pretty young. Thank you. This is a new job. Yes, sir.

I just graduated college. Yeah, when'd you move down? So I actually moved to East Texas. My mom, after my dad passed away, my mom wanted to, like, move from Michigan. So she moved to East Texas. I followed her in May. I got a job out there, but I was fired. Wrongful termination.

I got money. Really? Yeah. You sued? I filed an OSHA whistleblower complaint. Interesting. Because I told them that they needed a fume hood. It was a startup.

up. And so I was fired. I had that job for about like three days. Three days. Why did they say they fired you? Because I didn't fit in. But then I called, I was a part of a temp agency. So I called the temp agency's VP that I was given to from the HR. And he called the like manager of the factory. And the manager reached out to the laboratory manager. And, and the manager reached out to the laboratory manager. and he wrote this whole entire thing. It looked like it was from chat GDP, you know, like it had like that layout. But in it, he said it was because I brought up a fume hood.

And he said that we didn't need a fume hood. Uh-oh. Yeah, dude was exposed. And I was trying so hard to like, he's not, he doesn't have a chemistry background, right? So I was trying really hard to like make sure the lab was set up, right? Make sure that his bosses were happy. And then that would make, that would, by default.

like make me look good if I made him look good and then we could all look good. So how much money did you get? Like 5,000, but after taxes it was $3,500. So not enough. Well, I mean, you got a good job now. You live in the middle of nowhere, but you got a good job now. It's okay. Yeah.

That's the biggest thing I've ever lived in. 50K after taxes right after graduation. I mean, there's people doing worse than you. Thank you. I appreciate it. Yeah. Now, some people do better than you when it comes to your debt. You've just debt, debt, debted yourself.

We built up the credit card debt. took out so many private student loans. Yeah. Sally made that. I didn't have to. I didn't have to either. Like, I could have taken out the federal, but I didn't know I was first gen. I was first gen.

I was first gen. I know. I know. A lot of people are first gen. What do you mean? Okay. So I, yeah, but also like during like the COVID, I showed up to the financial aid office. There's no excuse.

I should have done my dear research. Yeah. So you're right. I apologize. I'll just give up on that fight. Well, that was like two seconds. You're welcome. What?

Okay. Yeah, no, I mean, this is, first of all, I mean, when you're going to college, were your parents involved at all in the conversation? No. Okay. Other than my dad who passed, my stepdad, actually, the one that passed away, he did co-sign for my student loans. All?

Most of them. Okay. See, if he was co-signing, he- Because he doesn't, he doesn't, they don't, they don't, my family didn't graduate high school. Yeah. Yeah. I'm recovered trailer trash. Recycled, if you will.

So. Okay. Interesting. Yeah. No, I mean, it's okay. Lack of education is totally okay. But less is not just, well, let's not use the I'm a first generation. So I was stupid about it.

Yeah. I was first generation. A lot of the people I went to were first generation. Like, we still know federal, especially since. Yeah. And I'll say this. Your mom has a nursing degree. Nursing degree, yes.

She went back to college, though. Was she that before or after you went to college? It was like right before I went to college. So technically, I guess you're right. But she didn't go, she didn't like go right after high school or anything. I'm not trying to like diminish your compliments by saying that. Yeah. It was community college.

I was the first person that went to a university and whatever. Either way. It's still college. She still did it. She still did it. Yeah, I saw her do it while I was going through high school. Which superhero act essentially going and getting that nurse degree. when she wasn't making anything before that, really, in terms of income,

really helps save the household. That's a side tangent. But, you know, community college you can pay for and all this stuff quite easily because it's much cheaper. Typically, at least the one that we went through and Kalamazoo Valley Community College, it's quite easy to pay for that out of pocket versus borrowing, where I went to a four-year degree type university and that... Didn't you get the Kalamazoo promise?

I'm from Portage. Oh, that's different. Yeah, that's right. Ex-Kalmuseum. darn. Yeah. I know. I miss free college.

I was like two miles away from having my entire tuition paid for. Yeah. Sorry. I didn't mean to remind you. And tens of thousands of dollars to student loans for a worthless degree that I didn't even get. So either way, it doesn't matter. It isn't about me. This is auditing you.

Either way, what I will say in regards to the excuse you tried to make is you did take out some federal student loans so you knew it existed. I did at the end. It was at the end. So like, I mean, the grants that I got, I did get grants, but yeah, I didn't know that I thought that they just gave you. I didn't know. It's going to sound real dumb. I'm not even going to. You're going to look at me like that.

Well, it's okay. Ignorance is acceptable when it comes to a lot of finances in the United States. I just like, you know, I didn't know that I had to apply. I thought it was just like you got the loans that you got through your FAFA when you got them. Okay. It doesn't. And that was in like your fourth year, third year? Yeah, I went to school for five years because I changed my major.

Yeah. From, quite common. It was from an adjacent major to, it was from a chemistry major to another chemistry major. So what I'm just picturing and what was making me smile is just like, you're going into freshman year and you're just like Google student loans. And like Sally made that like advertised at the top of Google or something and then you clicked on it. Yeah, yes, sir. That's what happened. Well, what it is kind of good, even though obviously we have to pay these back.

And it sounds like you came from a place of, you know, trailer trash as what you said, which screams to me probably lower income. Yeah, I was homeless a couple of times. Well, there we go. That sounds like you making 50K after taxes. That's more than anyone in my family. Yeah, we're doing some generational changes through your chemistry degree. So when I'm setting aside money to save for a new purchase like a car or a home or taxes

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I use it. You should too. Yeah. That's pretty awesome. It was a good degree to get. Yeah. Like, I wish that. And I wish I could have the conversation with me when I was 18 graduating high school.

Like, I wish we could go back. I could have the conversation with you and we could talk about how to go through college and get this degree. Because now, of course, you have to pay it back. Even still. Yeah. I don't know if I would listen to myself either. But even still.

I just, I wanted to do things my own way. Even still. I think this will still have a better return on investment in the end. Yes, sir. We just need to get this in care of now. Give yourself a score zero to ten. Oh, finance score. Zero point five.

Okay. So, we have a credit card. I do. This obviously doesn't, this isn't, you didn't borrow this to pay the tuition at school. No. What built this up? When my, when my dad passed away, I was really,

like depressed. That's when I was that 20, 21. Okay. I was really depressed. Um, and I just started eating a bunch of fast food and like not really caring about. I didn't think I was going to live this long. This is a fast food card? No, not just that. Just like, I got really addicted to. Really? Yeah. Oh, no. Now that's a hard one, especially because that. I'm not on it anymore. That's good, but that can translate to much more dangerous substances for some people. Yeah. Yeah. I mean, it is a carbon away from. Yeah, exactly. That is upper, upper, upper, for sure. But the only problem is, like, you know, Walter White isn't making your, your uncle Walter is making your, but still, like,

abuse is still abuse and it's like not okay. Because making your, yeah, Walter White chemists, they're quality controlling it. Oh. There's quality control. I see what you're saying. Um, I just didn't say it very eloquently. Sorry. How long have you been off of that? I'm glad you are. Um, so, I mean, I, I am prescribed it. Was this abused? Yeah. I mean, I was abusing it through college and then after college, I was like, okay, I can take it like a normal person.

And I did that. And then they wanted me. Is it after college? Yeah. You said you just graduated. I did in May. I start, can you just start? What?

So, okay. So I graduated in May and then I started taking Adderall like a normal person. So 40 milligrams a day instead of 100. And I just stopped taking it about a week ago from 30 milligrams. Because I didn't, I couldn't do real my life by just stopping it. No, I know. I know. But when you said like you're, oh, I was really.

You were hoping that it was for longer. At least a month. Not a day. No, it's not been a day. It's been a week. A week, okay. That's diminishing the accomplishment. Oh, you're right.

But you said you're waning, though. You're not fully off. No, I'm fully off of it now. Oh, okay. But I had to, I was on such a, I was at such a level that like, if I just went off of it, it would take me like a month to recover. Now, I mean, I've been, I mean, I've been working while I've been off of it and it's been fine. Yeah. How are you feeling?

Good. I honestly feel really happy. I can laugh. Food tastes so good now. It diminishes the taste of food? It makes you not want to eat. Oh. You're not even fat.

Don't even start. Girl. My BMI says very different. Yeah. OBMs. I know. It's not great. It doesn't take an account of muscle.

But we're talking about me now. We are talking about you. And my tummy's a grumbling. So that talk of fast food. I want some Wendy's nugs. Okay. Okay. Wendy's is mid.

Yeah, but the Wendy's Nugs is incredible. Wendy's is mid, but the Wendy's Nugs is delicious. The fries are shit. Burgers, me, you know, but the nugs are incredible. Never tried it. Well, then you can't talk mid. I mean, I've been like not eating out unless I'm on a date. On this card, there still was a purchase though, which is kind of upsetting because, okay, there's a balance.

We've gotten derailed multiple times. There's a balance of $4,020. Yes. With $123 of interest being accrued, you did make a big payment more than the monthly payment, which is good. It's like, oh, we're trying to take care of our congratulations. But then you go and you get Amazon. Who are we doing? Like if you're trying to make progress on it, why are we spending out on a card that we lost $1,622 an interest this year so far.

and $200 a fees. I lost that much in interest. Yeah. So why did I make that $45 Amazon purchase? It's because I accidentally overpaid on my credit card bill. What? So I thought that I canceled the $366 payment and I put in the $400, but I didn't cancel that. So.

Okay. Why does that mean we go spend money on Amazon? I shouldn't have. But it was that didn't make sense. What kind of justification is that? Why do we go spend money on Amazon because we overpaid? What? Overpaid?

Fantastic. Great. We overpaid. We're paying off the credit card more. I know. I know. But it was for my mom's Christmas present and I've never gotten her anything. Where'd the first thing even come from?

What kind of justification was that? I overpaid. So I get a Christmas gift? No, you're right. Okay. That's okay. I'm just very confused. I mean, Santa didn't come down and forced you to spend that $43.

$32 to $63. Well, I don't know about that. 32% of interest. 32% of interest. Okay, now we get to the fund, Sally Mays. You better be overpaying on these by accident. I don't have, so because I was out of a job, I haven't paid on those because they're in the grace period.

I do pay on the interest. I don't have to pay on them until May. Why are you growling? Because these are fucking terrible. and you make money and you may as well pay for it instead of spending money on I'm trying to pay off the credit card first then we shouldn't be spending on it I haven't spent on it in a really long time dude I don't know I just have the statement in front of me and you spent on it yeah that's true I mean but I don't normally like I haven't spent on it in a year

$4,11.44 cents on this sally may selling may numeroon no at 12% interest rate me and yeah you're doing minimum monthly payment just the interest. Yes, sir. But you bought $4,000, so it still has gone up. Yeah. What I don't like is, what is this minimum monthly payment going to be? That's why I'm trying to get the credit cards paid off first. Yeah, but what is the minimum monthly payment going to be?

I was maximum repayment term 72 months. I'm going to pay off before that. Most definitely. I'm going to get my private student loans paid off next year. You better. I mean, it's not an option. I would pay it off earlier. But, well, I'm just trying to figure out what the minimum.

This year is almost over. I know, but by the end of the next year. 100% it will. Like, I'd pay it off like early next year. Okay. Either way. I don't make that kind of money. We'll see.

You spend a lot of it. Again, we'll get there. Sally May number two. Sally May number two is goal. Oh my gosh. Okay. $3,700 to $0.47. $0.47.

at 9.375%. So it's down, but it's still well above where federal ones are. Again, don't know what the minimum monthly payment is going to be, but right now it's 25. That's the interest that's accruing. 96 months. This one's longer. Ooi, ooi, oi. Yeah, and we took out 3,500, but it's up to 3,700.

Yeah. You look so smiley, joyful. How dare I? How dare I? Sorry. I mean, this is what I signed up for. I appreciate it because I feel like death, but you're happy over there. I wouldn't say that I'm happy.

Okay. I mean, I'm not going to frown on it. This one's at 13.1, 25%. Well, I just, I couldn't smile at these numbers personally, but they get it. It's, it's, it's a defense mechanism. Oh, okay. Yeah. The Cope smile.

We've seen it before. We'll see it again. 1,800. So, at least this one's a lower bounce at the heart. higher rate. And then I have a verbal one that I have to tell you about. The friend? No, not that one. What? Um, so I have a college avenue one at 3,000, I think, and it's 16% interest. What the what do you mean verbal? I mean, I don't, I have the paper for it, but I forgot to bring it. What's its current payment? Um, I, I don't have to pay on it until May. And, um,

what was the interest? 16. How did you some? I don't want to. of 60%. Why did you even get that one? Because I needed it. And Sally wasn't given more? I thought maybe it would give me a better rate. But when you saw the rate... It wasn't that high.

It's variable? Got it, yeah. Oh, yeah. Sally's variable, too, sometimes. My credit's been since my dad died. What is your credit? Because my dad... 570.

I was going to say maybe we refinanced these, but... Not yet. Not yet. It'll get better, trust me. Because right now I'm like basically homeless. So like, what does that mean? Well, I'm not homeless because like I live, I have, I live in a motel. Why?

Wait, when'd you go to Odessa? A month ago. I've, okay, I've moved a billion times in my life and many times not having much money. But I got a, I got apartments by. The apartments are more expensive than this motel. No. Yeah, so I pay 980. So it's going to be more expensive on there because it's more expensive.

for the first month and then it goes down. And I told my coworkers where I was living and they told me like, yeah, that's a dangerous part of town. And I've been harassed since I've moved there. I don't want you to be in danger, my dude. I'm not in danger. I mean, I have weapons. Yeah, I believe the word you just said was danger. Yeah, I mean, it's not safe.

I think we in the world of English call that danger. Yes, sir. I'm sorry. Mithland. Oh, O-O-Dessa. Oh, okay, Midland. It's a phallic-shaped. city. Pay what? 900.

980. The apartments there are like 1,100, 1,100. They're not Texas prices. I can tell you that much there. I found 900, 900 hours a month for one bed, one bath in mid-lund. But is that with everything included? I'm not sure. And my credit score is so bad I couldn't qualify. Maybe. There is this one time that like this guy like knocked on my window at like 1 a.m. And he was like, I don't know. I don't talk to anybody there, but he was like, call me a and tell me to open the door.

Will I need to commute? Odessa is not far. So from what I've seen, Odessa is more expensive. Yeah, but I'm seeing like, even like this, like, very small house for 750. I'm not saying it's going to be luxurious. But is it for everything included, though? Wow. I mean, the bills are a lot out there.

You mean, like, yeah, electricity and everything. And then also my credit score. I know, but people with sure the score still get places to live. Yeah. I mean, I've only been there for a month. So like I said, I mean, it is my plan to, like, move. It's going to be pretty comparable. But, again, what scares me the most is what you've talked about with potentially danger.

Yeah. And then this one got, this one time someone was trying to pick my locks. That I, I think it builds character. Okay. I mean, you could be like dead. Okay. That doesn't build character that ends character to a permanent existence. That's true.

You didn't have to tell me to get off, though. I tell everyone. Come on. You've watched this show. I know, but it's different when you hear it in person and when it's directed towards you. That's okay. It's a love. It's not a, I was literally telling you not to, like, get murdered.

Like, like a brotherly. Yeah. Thank you. I appreciate it. So, I mean, okay. So it's hard to tell. I'm just, I'm just finding the different places. I'm seeing 700, 800, 900, 900,

whether or not it's all included, it's going to be different. One of the places I rent out, all the utilities are included. just with how the system works. I'm just trying to think of the word. The energy split between a couple different units. We just throw that in the rent instead of making them pay for it separately.

And so I mean, you're just going to have to contact them. And a lot of these, they might be mom pile landlords if they're not a part of like a big complex and they might be able to work with you on your credit score. And you show them the job, like, here's my job, here's my history.

You know, it's going to take conversations. It's going to take harder work. But the fun fact that's not so fun is nothing ever works if you don't try. Yes, that's true. Close mouths don't get fed. And good old federal student loans. Those will restart pretty soon as well for you because you're, well, what is it? Six months after graduation, nine months at the graduation.

So they've started. No, not yet. I mean, I technically, so like, yeah, I graduated in May and that's when I left for like my job and stuff. But I had this online class that I was finishing up. So I didn't finish up until August. Oh. Oh, so this is going to start early next year.

So I technically didn't graduate until August. Though interest is accruing. Yes. $30,853. Can't see any of the interest rates on them because I didn't get the full rundown. Less than five. Perfect. Minimuth of the payment is probably going to be like $350.

Oh, yeah, probably. And then you borrowed $500 from a friend. I did. Why? When? That was when I first moved to the area. And the reason why I did was because I had like another way of making it. income, but it just didn't work out. What? Um, so I had a, so I got into like a sugar relationship.

Mm. And I just didn't like that dynamic. Okay. It's a lot more work than people let it let it on to be. And honestly, like, I wouldn't recommend that anybody does it. It's dangerous. And you could probably make more money being a and at least you're in control of your income, you know. Mm-hmm. Okay. Yeah. So you didn't like it. So you stopped. Yeah. That's fine. I mean, I was probably in like that type of. arrangement for like two months. Yeah. How much did you make? Not enough.

How much did you make? So, 700. For the full two months? No. For the last month. The first month, he didn't give me anything because he was flying me out from Dallas. I know, I know. I'm bad at negotiating and talking about money.

So I do want to get an MBA in the future, though. Really? No. No, I do, I do. I thought you were going to yell at me. Why? That's a good degree. I think that it would really complement my chemistry degree.

I'm not anti-degree. I know I show my boys. I love them at course careers. I talk about certifications. I do that all the time because they're good. College degrees are also good. I just try to go about... Certifications are really good.

Yeah, but I just try to go... It's all about how you do these different things. It's not about yes, this, know this, good this, bad this. It's going through things. It's not as black and white. I also like didn't like that people with a lot of money use... their money as a as like power over poor or younger individuals. Is this the sugar in the sugar relationship?

Yeah, but didn't you sign up for it? It is. It is. And I did. But it's just... Did you seek it? Yes. Okay.

I'm just saying like I just didn't like that. I thought that I could, I would be okay with objectifying myself in that way and I just wasn't. Yeah, it's okay if you don't like it. I mean, I believe consenting adults do whatever the fonsent something else are doing. 100%. Um, but, um, of course. I agree. If anyone's using like power money for like, you know, they approach something, someone and they try to use that to manipulate them. Yeah, absolutely. You did sign up for it. And you saw it. Okay. Um, so the, I'm just saying like a lot of people think that it's not as dark as it is. And it's a pretty dark world. Okay. And a lot of people get a lot of flag for saying that. Really? So I'll go ahead and say it. It's not all. Sunshines and Ramos.

sure yeah i honestly my i don't know about that life so not for me to uh say if it's good or bad but uh you borrowed five hundred dollars in front so i did why have you not paid back any of this because even after your rent still have an extra three thousand four hundred dollars um so because i didn't get my first paycheck until three weeks after i got there when did you get there again i got there on Except on on October 28th. Okay, so it's been a few months. Why has you not paid back? It's just, wait, October.

November, December. So it's been two. So I haven't paid him back because he's not super adamant about me paying him back right away. Like he wants me to pay off, like get the majority. Yeah, he's just a good person. We've been friends for years. Cool. No, that's great.

I like that he, I would honestly do something similar if I lent friend money and I would honestly probably gift it. I have paid him back $100 of it. So it's $400 now or it was $600? No, it was $500. Now it's $400. Okay, cool. No, I'm totally down for that.

Whatever the agreement is is whatever the agreement is. And it sounds like he's encouraging you to do. He always does. He's such a good person. Good. Good. I like that. So, of course, we could have paid him off because, you know,

I went to the national park. Yeah, cranes and McDonald's. And what is the software fee? Who even knows? And, uh, oh, that's from the debt collector. I went. You have collections? No, at once.

I had one and I dealt with it. Why was it $4.85? Because it was, um, a transaction fee. Okay. And that was $200. Oh, that's your rent. And then T.J. Max and Poyos restaurant, Poyos restaurant, rent. Poyos.

Something Oh yeah Yeah I had two drinks And it was 20 bucks Incoming wire of $10 Oh yeah they took $10 when my friend wired me The $500 from the Zelle And then there's your 500 that you borrowed from your friend

That was last month Dominoes I had a free pizza But I did spend money Yeah yeah you spent $20 And hi Sierra and chili pepper cafe And Yeah. And then there's your rent again. So it's not like you go crazy. You're just throwing money everywhere. But I mean for me.

the money to do it and I shouldn't have done it. It's not even that. If I owe my friend, friend money, like good friend money. Yeah. You know, I'll pay them off. Yeah. That's just morals. 100%.

I guess I don't have those, right? Is that what you're saying? Well, your actions did not include them in that instance. I'm not saying you're an immoral person. There's a lot that goes with morals. And also morals are pretty subjective anyway. So, okay. You seem very, like, almost defensive.

They're ready to slap back on everything. I'm not going to. You can't if you want. No, no, no, because I know that. I know that you're just telling me the truth. I mean, remember, I didn't have a dad. So I need someone to tell me what's up. I mean, I don't know.

I mean, it's, I'm a human being. There's, there's times where I've gotten things wrong as well. It's okay. But I'm also just like, what's up? Like, why, why are we? There's no thoughts. I'm just focused on the situation and how I can improve it and make it better. Like,

Different miscellaneous 5%, like 108 bucks is what we got. Unknown shopping that's typically like Walmart or Amazon, this was Amazon in this case. 2.7% food going out to eat, 6.4%. That's higher than it should be. Yeah, and so was the miscellaneous. So it was the unknown shopping, which was Amazon. Other large purchases, 12.2%. And that was the CM accounting.

What was that? How much was it? 276. Oh, that was the collection. that I owed to charter. Okay. That same collection. I'm glad you paid that.

And then I paid off the water. I just recently paid the water bill that I owed in Michigan. Oh, geez. Off. I had a roommate that left. Not that that's an excuse. It shouldn't have taken me this long, but it did. Well, that necessary food is, of course, less than...

So great. Difference between unnecessary. Groceries versus eating out. Oh, but you said it was unnecessary. I said your necessary food was more than... Okay, I misunderstood what you were saying. I may have said unnecessary. I may have had a flub.

It was my ears. So again, it's not insane. Now, what came in, it was much different than what you said. What came in was 2,653. Yeah. You said 4,300 comes in. That's because that's when I just started. So you moved there in October, but you didn't start to November?

No, I didn't start until November 6. And I didn't get my first paycheck until three weeks later. So it depends on how much overtime I work. I usually work about 50 hours a week because I want to. That's why I gave myself a 0.5 was because I work a lot and I can pay it off. Like I have that ability to do that now. It's not like you went insane, but it's just I don't think any of that should exist was a way or friend. You're right.

Because I mean, that's so much more personal than a credit card. It is. Well, I mean, we could call her worst names. I think she's a. Yep. Exactly. Yeah. No, Sally Mae is evil. She is. Evil. That's suck you this. So is that your plan then to stay at the motel for 800?

Because that's what I'll put for your rent. If that's what you plan. Renting utilities? It's 980. Wait what? It's 980. Oh, we were finding, I was finding cheaper places than that. For everything included. Yeah. I don't know. That's for you to contact.

Where have you been finding those places out? It was in Odessa and it was in Midland. What website we were using? Zillow. So I don't know about so, but I know like apartment.com, like, sometimes, like, they'll have scammers because anybody can post. So what I do is I always look up the apartment complexes. Well, these could be mom and pot. You wouldn't find.

I know, I know, I know. But I'm terrified of being trafficked. And then, like, you know, like, I'm a girl. I don't. Not a lot. No, no. You have a co-worker that could come with you to a place? I'm sure that I could ask one of them.

No. Do that. Yeah. It's just, you know, it's a very dangerous town. No, sure, absolutely. Like, I totally respect that fear. Let's look at, let's look at the fear of me being murdered where I live now. Well, there's that.

But I was going to say, let's look at solutions instead of just saying, okay, that's the fear. And then boom, that's it. Yes, sir. Solutions is, okay, if we can find someone to come with us, that would create someone that you can trust, feel comfortable with. Because I respect that. I respect that. Well, let's figure out ways to do it. Let's call them up.

Let's vet them. Let's see if they have reputable sources of, you know, are there other things? tenants that are renting from them, you know, a little bit of research into them as well. But then I'll look at like the websites of the apartment complexes and I'll see that the prices are completely different from the Zillow, the apartment.com postings. Sure. So whenever I tell you that they're 11,200, I mean that they're 11,200 and 1,200. Hey.

I mean, I've looked almost everywhere and they are 11 and 1,200. Trust me, there weren't a shit of options. It wasn't crazy because you're right. There's not a ton of options in that area. prices. I don't know what you mean by that. Well, that's because you live in Austin.

Exactly. Austin's more expensive than that. So Austin's expensive comparable to most U.S. cities. Yeah. No, it's an expensive city. Yeah, absolutely. Either way, all I'm saying... It's beautiful but expensive.

Okay. All I'm saying is get contact them. Actually, contact them again. Nothing's accomplished unless we try. So everything's impossible until we do. Yes, sir. So we're putting, what was that, 980 for your current rent? Okay.

And utilities, because it's all included. Yes, sir. 980. Okay, wonderful. Groceries? Oh, and I just got a stove, too. My stove didn't work. Oh, right.

I didn't think about that for motel. No, I mean, it's a suite. So, I mean, not a sweet. It's a studio. So there is a stove. It just doesn't work. So I got hot plates. They won't fix it?

No. It's not a great. It sucks. I don't even have hot water. Like, I haven't taken a hot shower and, like. Now, the places I looked, I did 900 unless. I didn't know you were doing 980. I should have done $1,000 unless.

We probably would have saw even more. Okay, $300 for groceries, $100 for toll papers. Is anything else you need to survive? And if, you know, things are up and down the ebb and flow, you can use a little bit of money in that fund that's left over for both. If you have anything left over at the end of the month, you might not. 60. You might.

I did 100 for toll paper fund. Oh, is that what? Okay. Yes, sir. That sounds great. Okay, car. You own your car, all right? My biological dad gave it to me.

Very cool. What's the car? It's a 2006 Mercury Grand Marquise. Okay, how many miles? 140. It's old, and it's not that many miles for how old it is. 2006, 140. Because you are in full,

driving car required infrastructure out there. So I'm just like, I mean, I just got my brakes fixed and that was a thousand bucks. Yeah, I start thinking about a car fund. So I'm just trying to figure it out. But that's good. What's your car insurance? I don't pay it.

What do you mean? My biological dad is paying it for me. Okay. What about gas on a monthly basis? Maybe. What does it say that I? 164 is what you spent in that month? Um, let's do 200.

Okay. Phone bill. 40. Pretty good. What do you like with mint? Straight talk. Okay. They use Verizon Towers.

And I'm going to medicals. Do you have any? I don't have health insurance. But you do have Planet Fitness though. I do. No health insurance to work? I do. Oh.

I just don't have health insurance. Because, okay. You have been enrolled? I don't know if I should or if I should just wing it. No, you should. Should I? Yes, you should. My deductible is 3,800. That they only have one plan available?

That's the lowest, so that's the cheapest. Yeah. That will save your shit for the money if something big happens. Trust me. You're right. That kind of sucks for just like ongoing, just medical appointments and prescriptions and stuff like that. But if you get like a true injury, that's true. That deductible is going to be nothing compared to.

out of the hell. And that deductible will be considered basically nothing versus what could be hundreds of thousands of dollars. True. You're right. Planet Fitness is where you go. It's where I should be going. Okay. I'm going to include it in the budget because you should.

63.87. What? Nothing. Okay. Per Lego? Per Lego? I have to cancel that. That is a textbook subscription.

Good. So it's like a library for textbooks. Anything else you need to survive? I have a Netflix. No, you don't. I'm going to keep it. And I'm going to tell you why I'm going to keep it. Sure.

Because it prevents me from going out and doing things that would cost me more money. Congratulations, use YouTube. It's free. And there's more content than it's better. Okay. Congratulations, use TikTok. It's free. And there's more content.

I'm also going to keep my Spotify. And I'm not going to go on TikTok. TikTok is the downfall. Okay. You don't have to use that, but YouTube's great. Okay. Well, I'm going to keep my Netflix account. I'm sorry.

I'm not sorry, but I'm going to keep it. You know, it's not the biggest draft in the bucket, but all it is, to me, is just showing what you're willing to sacrifice. Oh, no, it's not Netflix. It's Hulu. And I have the student. Well, there's nothing on Hulu, and your student thing's going to end anyway. Hulu has a couple good shows, but other than that, it's kind of... And then I also have student Spotify, but that's it for prescriptions.

That's going to end as well. I mean, when, when is it going to end? I don't know. When does it say it'll end after your graduation? I think mine ended a year later. Yeah, but I mean, that's still a year that I get at four bucks. Yeah, yeah, it is. No, again.

And I don't, I don't have a lot of data on my phone and I listen to podcasts when I, when I'm at work. Yeah. So I have to download them and just. I'm not against them in general. I'm not saying that you are. I'm just explaining to you why I'm going to keep them. I get, that's the same reason that everyone gives. So trust me, it's not like I didn't know.

Well, all I'm saying is what it's showing, what it's showing is what you're willing to sacrifice. And you're like, I don't know, are you willing to sacrifice? Nope. Not the, not the Hulu. I mean, I can sacrifice. I'll take off the Hulu. I'll take off the Hulu. I'm keeping my Spotify.

Well, again, I mean, that probably goes in the toilet paper fund, but, like, you could do that. I'm going to. For what the total paper fund is. I'll get rid of my, my Hulu. You're right. It kind of sucks and there's nothing on there. Okay, $4.5. Anything else you need to survive?

No. people are like oh Caleb you go too hard on that stuff I mean this is when I got out of debt which was worse death than yours I had more Sally made debt than you have yeah but you had a you weren't you making six figures though when you were getting out of it not when I started yeah but like like mid were you like in the middle I ended up getting a sales job where yeah where the income I made was fully dependent on how hard I worked yeah so I worked into the evening I'm not saying that you didn't work hard for your six figures I mean that's like more that's like about like the top 18% you of Americans. So of course, if you're working hard, if you're making that from the most part. That's not what I was saying at all. So don't get it that way. No, no, but not when I started paying to get out of the debt. But either way, what I did is I stopped all this. It was zero. It was all sacrifice, no reward, get out of the debt so I could live the better life quicker. And that's what it's about. So it's not about being a hard for now. It's just about willing to sacrifice whatever is needed to get out of the bad stuff.

And you are in the bad stuff. Yeah, you're right. All right, let me get your minimum monthly debt payments. Now, again, this is going to be different when the student loans kick in. And I honestly might have the lower ones paid off. Like the $1,000, the $2,000, I might have those paid before they start in May. Okay. I'm trying really hard to get out of the credit card debt.

Yeah. I mean, I paid over half my first paycheck to the credit cards. No, that's great. I ate from the dollar store. And, of course, I did the... Much less price effective than grocery stores. I know, I know. I know that now.

But like, like, again, like where I'm from the dollar store is the cheapest option. I know. Yeah, food deserts. And I... Dollar stores take advantage of... We have H.E.B. here. So... Yeah.

No, you're in a town that has a grocery store. Yeah. Yeah, and it's a lot different. Like, the prices for things are a lot different. Okay, minimum for you to survive, including your $4 to Spotify, is what? Nothing. $1,940 and $80. Now, what I have that saved up?

No. I don't have a savings. Okay. Now, what that does not include is what the minimum. minimum monthly payments are going to be. That doesn't include the likely $350 a month in public student loans that will start. It doesn't include whatever to the Sally Mae minimum monthly payments are besides just the interest. It's probably going to be more than double.

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So feel free to try it in the link below. So I think you're really going to be more of like a two minimum to survive once everything kicks in like a 2,750 potentially. that's what I'm thinking. Not 100% sure. It's hard. That's a guess. But either way, you'll still have leftover money, which is exciting. Now, what's more exciting is at this exact moment is the perfect opportunity to start taking care of it.

Because we have an extra $2,359.20. Woo! Left on a monthly basis. Okay. It's the 18th. Okay. Let's just, for the rest of this month, says some. money aside, you know, in a one-month emergency fund, high-ield savings.

Okay. And then let's just call next month, month number one. So month number one, we're saving up a one-month emergency fund. Cool. There's January. We're headed into February. What is going on in February? I will tell you, February we pay off half the credit card.

Cool. March. Credit cards completely paid off. Woo, woo, woo. April. Everything's probably starting to kick in at that point in terms of minimum monthly payments. So we're probably actually going to have $1,750 left over left on a monthly basis. But that's okay because we have a one month emergency fund and we killed our highest interest debt.

So that's okay. We made progress with the, we made good progress with the time we had. So $1,750 is left. Obviously, we immediately kill the smallest Sally Mae. Do you want to do the smallest run or the one with the highest interest? They're the same. But the College Avenue has 16%. Did you write that down?

Let's kill the... Yes, you're right. That is the highest interest of the Sally Mae's in the lowest balance. I still say let's kill that. I can kill that, yeah. Yeah, kill that. And then the next one we do start to kill is the College Avenue, which will take two months. I'm sorry, where it was, April, May, June.

So we're entering July. College Avenue is paid off one of the Sally May is in the credit card and we have a one month emergency fund. Cool. July. July. August. July and August, Sally May number two is paid off. December. Potentially through December, maybe November of next year, we'll be paying off the highest Sally May. So it'll be a year from now to 11 months from now. We have a one month emergency fund. And all bad debt. is paid off except with a friend honestly the friend could probably be included in there as well so honestly it's probably yeah a year we'll call it a year to round up about like paying him back like 150 100 out of every paycheck it's up to you you can i do make 2100 well it's up to you you can you can you can but every like the amount that i make that's over 2 000 no i got it uh i feel like because i just want him to know that like i i really appreciate him helping me of course um and he you know, that's up to you. It's up to you. With the conversation you had where he's like,

take care of your high interest shit first. I'm like, okay, take care of the high interest. Either way, he's paid off regardless within a year. And so it's all bad debts. And you only have the higher amount of lower interest student loans that were probably going to minimum pay until they're paid off. Because at that point, we're going to get a six-month emergency fund and you'll live in a place that you can afford,

which isn't dangerous. Which is not dangerous. Which, you can still do that now. This will just take maybe a year and a half to pay. off, but you can do like $1,300 a month and rent. Okay. $1,300 a month and rent. Is that with everything included or is that just the rent?

Nope. That's just the rent. Okay. You could do $1,300. Honestly, again, you could move up, well, not, well, yes, move up in a place. Probably try to cap it at like $1,100 now rent. And this, this gets delayed by maybe a year and a half in total instead of a year. But if that's your safety, man, that's worth it. I'd rather you be alive to pay off this debt than not.

Yeah, I'd rather be alive too. So, yeah, maybe do that when you get home. Let's call it a year and a half then. Let's call it a year and a half then because you get a place for like $1,200 bucks or something, $1,200, $1,200. A year and a half, cool. Let's add another six months to get a six-month emergency fund. Cool.

Okay. So this takes from all bad debt and a fully funded emergency fund, it takes two years to two and a quarter. That's what I would think. And then from there, you'd be like 26. Cool. There's 20% aside on retirement on a monthly basis and you're going to retire. You're going to have a good retirement.

Yeah, that's what I wanted to do is I wanted to get out of the status fact because I'm retiring. Yeah. That's my goal. Yeah. And you're going to be able to. You have the time of compound interest on your side. That's why we take care of this. Now we get a fully funded emergency fund.

We lower our risk factor with that. And I want to help be able to like, you know, in the future help my some family members out of generational property. sure absolutely and the best way to do that is making sure that you can actually afford to do that and take care of yourself at the same time which is by taking care of the debt now 100 make sure you don't get attacked by lifestyle inflation that is one thing I'm a little worried you know moving up a wealth level you know for the first time just like in your family's history and I don't like to spend money anymore now that I'm making it I don't like to spend it because it takes me an hour or two to work it to like get to like be able to pay for

We shouldn't have seen this stuff we saw. I know, but that's because I had, I thought I had a sugar deli. Okay. So. Cool. Which is kind of embarrassing. Goodness gracious. Really?

Yeah. I don't know. I just, I don't, I don't, I don't. Are you sure you're not a Puritan? I don't know. And not when it comes to that kind of stuff. Maybe I'm a Puritan when it comes to money. So, yeah.

Two, two and a quarter. Then 20%? until you're like mid-60s? And I'm due for, I'm supposed to be getting a raise in April. Oh, very nice. Yeah. Yep, and keep pushing that. And you might be able to trade up jobs and, you know, a few years.

I'd like to get into R&D. Okay, yeah, sure. But your income's going to continue to increase as you go through about it. And if you're a good work and it seems like you are so far, then, you know, it's all, all but all up from here. This is what you're willing to sacrifice until then. Hopefully you're willing to sacrifice that food. Hopefully you're willing to sacrifice this. that and you don't get a place that's too expensive and we don't end up going getting a new car because

now we're making a lot of money and it's just all this stuff all this lovely stuff that people typically fall into as long as you don't you really keep your head down for two years you get out of the when your life is golden as long as you don't like lifestyle inflate yourself overboard any questions any final thoughts no questions no final thoughts for kaila when it comes to her hammer financial score. Spending in a budget certainly wasn't the worst that we've ever seen, but when you owe your friend, shouldn't be going out to eat. Three out of ten. Debt, again, not the worst we've seen, but that high interest is private student loans and borrowing from a friend. I'm going to say three out of ten. But unfortunately, merges of fun. There's nothing. Zero out of ten. Retirement, there's nothing. Zero out of

ten. Real estate, there's nothing. Zero out of ten. So what does that come down to? I did not do the math beforehand. That comes down to a one. audit time. Make sure to check out all the resources linked in the description below. They are what I use or would use in specific situations including the best budgeting program and the history of the internet. 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.