Financial Audit - He Can't Afford To Live, But At Least He Has Two STUPID Vehicles

Episode Date: November 8, 2023

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Hi, my name is Stone. I'm 26 and from Ankeny, Iowa, and this is Financial Audit. A fellow born in the Midwesterner, now down in Austin, Texas. Of course, you're just traveling, but thank you for coming down. What do you do up there for a living? I work for a clinic. I am a technical analyst for the infrastructure team. I set up servers. It controls all the payments, any software needed for like the medical instruments, stuff like that. I love that. Great field. So what are you making right now? read at 64.5,000 a year. Okay. How do you feel 64.5,000 for that position?

I'm really close to where I want to be. Where do you want to be? I want to be around like that $75,000 range. With the way I live, I feel like that's going to be like the nice area where I can have everything and not have to be stressed. Where you live, you mean like physically? Like, gee or... Well, well, financially.

Okay. In that town, a town that I do not recognize, I'm just curious. You know the area more than I do. Are we going to be able to get into that field relatively easily? Does it seem like there's a good path forward for you and that town for that job? I'm going to end up moving. Sorry. I guess I was confused where you're going with that.

But I highly intend on moving out of Iowa. Out of Iowa. Where are you thinking? Either Carolinas possibly or the one that really interest me is like Southern Colorado. Interesting. Okay. Okay. So I'm still going to get the snow in Colorado.

Okay. So you went to school and got a degree for this, I assume, because we have student loans. Yeah, I do have student loans. The answer is kind of yes, kind of no. So I did two and a half years up in Mason City, which is north central Iowa at a small community college, got an AA and an AS. Okay. Transferred down to Iowa State University, and that's kind of where some problems started happening. I couldn't focus in class later dropped out and found out I was ADHD and autistic.

Oh, okay. Go cornhuskers? I think that's a stadium football team. Of Iowa State? Oh, the Iowa State's the Cyclones. Cyclones? I try my best. I watch college football.

I don't blame you because I don't either. So we had some mental health struggles when it came to that, and you weren't able to find the help you needed before you dropped out. I didn't. It's not that I didn't find it before. I dropped out, it's that I'd already dropped out, and that's kind of what forced my hand to look into it, because it was, like, super stressing me. I was a mess. Did you end up getting, like, certifications? Yes, I did end up. So what happened was is when I dropped out, I was working at Best Buy for Geek Squad,

and I did that for two, three years through an app at McFarland Clinic, and then next thing, I know I'm working there, two years there, and I spent some time, got my A-plus certification. A plus? Yeah, is that what it's going? Okay. Comptia A plus. Oh, okay, cool. And then after that,

the infrastructure manager just called me up to her office one day. I honestly thought I was in trouble. And just, hey, you want to move to a new team? I'm like, is this an interview? And here we are now. That's why I like certifications in, like, especially when you're already in a job and you're looking to move up within that company,

like certifications can be really helpful and I talk about you know I partner with course careers they have like IT certifications and stuff like that so that's that's really cool I'm glad you did that now you're obviously I mean that's probably a pretty pretty good income for that area for a single person yeah for the industry it's technically below average but like for but for the area yeah it's pretty good how many people are in that town do you know what's the population um a better one would be to go off of Ames because that's the actual town that I was states in um because yeah Ames is 20 this is like a so okay okay okay. Okay. This is like central Iowa. Okay. Ames is like... How long have you have you had this salary? Because we've accumulated a lot of debt. I did not start that position until it was either March or May this year. This is new.

What were you making before it? Just before it was about $50,000. It's not bad though. No. No, I'm just bad with money. Well, I should... I'm bad with... I already know my issue.

It's impulse spending. Really? So Impal spending a fucking motorcycle? Yes, actually. Yeah. It was one of those days where it's like, I love them. I already had a motorcycle at the time too, mind you. This was when I was still in my old position.

So this was about two years ago. Had a motorcycle already. But it was doing the job, but I wanted something more, obviously. And then I found the exact motorcycle I wanted for the price that I wanted. And next thing I know was a 10-hour trip to Wichita. And I had a new motorcycle. Gross, dude. You had a car already.

Yeah. I assume you got there in a car. Oh, my parents helped me with the whole bringing the bike back from Wichita. Yeah, is a motorcycle on a motorcycle debt what we need if we already have credit card debt and student loans? Well, this is part of the issue is, so like I was actually had a good handle on my credit card debt up until it was like June or July. What happened was this year? Yeah. This was like a second ago, June or July.

That was just like I look backwards and I see it. Yes. Yep. I trust me, I know. That's part of the reason why I'm here because I saw how quick I racked it up. I'm like, yeah, we need to. Lifestyle inflation? Do you feel like with the new money you've inflated?

It's part of it. It's definitely part of it. Yeah. Because like, well, another issue is I can't live with roommates. I have tried so many times. What do you mean you can't live with roommates? When they don't clean up after themselves. Yeah.

It stresses me to fuck out. I'm not going to clean up for. And if you do, and they are a piece of shit, we get a new roommate. Yeah. And, well, it was just easier to just live on my own. That is easier. And of course, what I just said is easier. And I know from past experience, it's just easier to live on my own.

So that's what I just opted for. I think the vast majority would rather do that. Well, again, you could probably afford it, but maybe you can't because, I don't know, you wrecked up dead, dude. Yeah. So the biggest charge, it should be on my credit card statement for the, rocked money. It was like $2,600, I believe it was. It was for like all of my insurance because motorcycles get you in trouble. You didn't need a motorcycle. You don't need a motorcycle. What?

Well, no, I'm trying to. So like in the summer, my motorcycle is my daily driver. It's not just a luxury, like if I'm going anywhere. But it doesn't have to be. It's hell of cheaper than my car. Yeah, but guess what? It's not cheaper to have that extra debt in addition to your car. debt. There's two vehicle debts we'll get into, plus a personal loan, plus a credit card, plus another credit card. Yeah. So no, is it cheaper? No. You're not saving money. Don't around. Don't bullshit. Okay, so it looks like you brought in a net pay of $2,000 if we rounded up by $1.40. Yeah. Six cents. So I'm going to assume on average, it's about $2,000. Yeah, it's like right there. Cool.

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so don't miss out on this opportunity to get rewards for investing. Sign up today using my link in the description below or by going to vora.com forward slash promo forward slash Caleb Hammer and let Vora help you achieve your financial goals. Because it's salary, right? Yeah, it is salaried. Cool. Yeah, so immediately we owe, see, dude, this is ridiculous because this is of your net pay. It's just two and a half months.

It's two and a half months is what the balance is at. $5,880. And 12 cents with a minimal monthly payment of $176,040. Okay. Now, you know what did make me happy? You made a payment of $1,000.

Then you went and purchased $3,118, while $100.43 is accruing interest. If we're losing interest on a cart, you already know this. I've said this a million times. You broke. Rules for not being a fuck up. Rules for not being a fuck up.

You broke immediately. Immediately. Let's see. Rule number three. Rule number three. Don't hold a credit card balance. Don't hold a credit card balance. There you go.

Take a look. You're losing interest. You put more money on it. It doesn't make sense, dude. It doesn't make sense. And you're right. This is new because this is the first time interest accrued this year on this card. So you're headed down the wrong path now.

Thank you. I came on the show now. So then we're going to reverse this. But I need to do. know how bad this is before you actually start getting deep into it. Yeah, and that's, I mean, that's the exact reason why I'm here because I don't want to go down that road. I know I have some behavioral issues that I'm trying to nail down with my impulse spending. Okay, impulse spending. I know that's an issue. It's just the matter of getting it under

control. Okay, so I have some impulse things as well. It's not, I'm not the go swipe, so I'm like and Paul spending like that, but I'm like a gut decision. Like if I feel like this, this big life thing, I'm like, yeah, I'm going to go full steam, go crazy. It's actually never led me wrong, luckily. Like, it's always worked out. I see, I know I'm a bit of column A bit of column B. I do some, I do overswipe. I know that.

Yeah, you do. I mean, we got Apple bills here. Suees and, you know, there's tequitos up the ass in Amazon, Amazon. and Jimmy Johns. I love me some jimmies. You don't need it. Tequitos McDonald's. Power Sports?

That was for motorcycle maintenance. That was for oil and oil fuel. Something that is obviously so much cheaper than just having a singular vehicle, obviously. Come on go. Come on. I think it's tequitos. And tequitos. Oh, guess what?

Tequitos. Surprise, surprise. Apple. Strother Bros. Ubisoft. We got a game of some kind. Oh, yeah. That's Rocksmith plus subscription that I need to get that cans.

I think I already did this month. Hey, does that fit in your budget? Rule number one of don't be a fuck up. Not be a fuck up. But I have canceled all other subscriptions, Hulu. I'm on my spot. My parents. You're going to cancel every single subscription.

Yeah, every one of them. Every one of them has been canceled other than the rocket money. Plus Apple and Apple, 68 bucks. Who knows what? I mean, come on. Takedos. McDonald's, some hero. And I know 130 P.Y. Hero.

See? Eeroic? Maybe. It's like missing a letter. Probably a game or something, honestly. Tequitos. Domino's, tequitos. No, actually some of those.

I was going to say some of those tequitos is definitely motorcycle fuel. Yeah, I was going to say, because they're cheaper. Usually we count like under 10 bucks and around their tequitos because you're going to go fill a tank. It's usually like 30, 40 bucks. But it makes sense for a motorcycle. Yeah. But you're filling it up every second of your life. That's because I ride.

Well, I am because I ride. I probably fill up the bike like two or three times a week. So much cheaper. So much cheaper the way you're doing. Good job. So there's probably bicycle. There's probably bicycle. There's probably tequitos.

And then that's probably a bicycle. So you're breaking rule number one. You're breaking rule number three. Also, you broke rule number four. Stop buying cars you cannot afford. You didn't need another one. I don't even know if you're going to put it. the other card. We'll get to it, but

if you want to get the rules for not being a fuck, go ahead, follow the link to my website below. You sign up for our newsletter and we'll send you the rules to not be a fuck up. Tisk, tisk, Mr. Fff. I mean, somebody has to be. That's why I'm here to get out of it. Does someone have to be? I don't know. Okay. Best buy.

Which is in line with some of your spending because we are a tech spender, it looks like. Yes, very, very much so. And we'll get into that too with the personal loan. Oh, fuck. Is it for a PC? No, no. Actually, I don't think any of it was.

Okay, we'll get there. I mean, it's still pretty, it's pretty just as bad, but it's not a PC. I like my tech stuff. I get it. I get it. You don't need to. You can't afford it. If we're fine, it.

Yes. Yep. Yep. Just rip into me. Well, I need you know how bad this is. wake up call and then we get you to the better place. Now, it looks like we're interest-free right now in the Best Buy Card.

Yes. But even still, we brought our balance down by $29, which is the minimum monthly payment, and you put an additional $460 on it, and bring it up to $1,119. When's the interest-free period end? It's 12 months from the date of the purchase,

so it's like... The date of any purchase or the initial? The, so the... It tracks it separately. So if like the one point... purchase has the financing and then the second purchase will have its own set of financing. Wait one second. Are you sure? You're 100% sure. That's how it tracks on the website. Okay. Okay, cool. So 12 month financing purchases. Yeah, yeah, yeah. Because I know when you get the

Best Buy card, yeah, you can choose different ways. You can get like 5% cash back or you can do financing and no. Yeah. Granted, the Mean Best Buy made the financing options worse, but that's its own thing. they used to do like two-year financing if you got over a certain amount but they they dropped it so it's only one-year financing now but that doesn't really change the situation well depends i mean you're not making the minimum monthly payments necessary to pay it off within a year so they want to have less time right right in between people being able to pay it off so they just well and the thing with two i don't mind making i can make the payments i know i can i have been or at least the minimum yeah it's 29 bucks well i just meant i meant across everything my issue is is i don't know how much

I can make towards the cards without screwing myself over and shorting myself in my budget. Also, can you because, do you know how much overdraft protection there was in your checking account? So yeah, you can make your minimums. Are we sure? We'll get there.

What'd you get? Within the world of appliances, it sounds like $460. Um, that was one of those impulse spending things. It was smart lights and a haird dryer. How many hue bulbs did you get? Too many. clearly i was going to say because yeah they are expensive the the issue is is i mean it's not going

to make it any better the the candlelight ones there's candlelight ones they're like yeah they're small like 30 or 40 waw bulbs i think oh yeah yeah yeah yeah um the issue is they don't sell those in packs so each one is 60 bucks by itself and i thought like the original bulbs themselves are 60 bucks each so even those smaller those small ones are stupid fucking expensive like Why'd you need those? Because I just moved into my new place, and I like the smart lighting. It just... And what'd you need those?

They're the only ones that fit in my light fixture. So, my ceiling fan. You know, and it's not as connected, and it's not as lovely, but you know there's ones that are like 50%, sometimes 75% cheaper. Yeah, no, I know. I already had another tech friend yell at me for it. When'd you purchase this?

The lights were... This was a month ago. That's past, that month, the month ago would have been, no, that would have been the hairdryer. You got a $500 hair dryer? Yeah. I do blow dry my hair every day. It's one of those things where, well, I have shorter hair, so I don't know. So I will look to my female producer who has longer hair.

Do you need a $500 hair dryer for longer hair? The answer was no What the That's another part of my spending problem Is like if I'm gonna go into something I like to go all the way Rather than just kind of happen What I feel is happening

That's interesting because I actually have a pretty similar way But I don't have an impulse to go buy it But when I choose I'm going to buy something I'm gonna get one that's gonna have longevity And performs well But your issue with that Is just you have the impulse to buy the thing itself And then when you have the impulse to buy the thing itself

you won't get that unless you're getting the best of the best it sounds like so yeah that's rough especially when we're financing it now total interest charges this year so far 722 i think what that is showing is what is being accrued if you do not paid off okay that would make more sense in fees of 29 bucks because i was going to say that card was completely paid off until sometime this year yeah so let's definitely make sure we're doing that when was the initial purchase that is 12 months finance it was March or, no, it would have been June or July. Okay. Because that was just after I moved into the new place. Lovely old student loans. Was most of this borrowed at the four-year institution? It was about 50-50, if I recall correctly.

It's been a while since I've looked at it, but it's currently in forbearance. Why? Because I applied for the income-driven repayments to lower my monthly payments on it. So there's, wait, but your income isn't. It actually did lower because before they had been marked as like $250 a month. And after going through the IDR plan, it's supposed to drop it down to $125 a month. She don't make bad income. I'm surprised.

You could easily do the $250, though. Yeah, it was just, it was trying to drop payments so that way I felt like. Either way, have you started making the $150? I've not started this month. It's in forbearance this month. Until they're done deciding if the plan's going to go. go through or not. What plan?

Because when I... You mean... When I applied for the plan, they haven't, like, accepted it yet. They haven't accepted you into it? Correct. I see. Okay. Yeah, because I don't know.

You don't necessarily have a low income. No. So that's what kind of confused me to begin with. So the income-driven repayment plan, just for... I mean, people consider it... And we're releasing a video soon if we haven't already. That kind of goes into student loans a little more. but on our new second channel.

Income driven repayment plans, it can actually be really good. And actually a lot of the rules have changed around it. So it could be really good. The unfortunate thing is what we've seen in the past is for a lot of people in the income repayment plan is that depending on the administration at the time, regardless of politics, I mean, that doesn't matter.

But depending on the administration of the time, well, not a lot of people got their student loans forgiven when they've met the criteria. Right. We've had a lot recently that have been forgiven playing some ketchup, but it's like if we're betting that on the future, only for them just because this is so bureaucratic and stuff. You know, everything is just a mess that are you going to bet your whole future on that?

In the future that you're betting, by the way, since you're making less payments, the interest is actually accruing more. Right, right. Because you're paying less into the, like, I don't even know if you're covering the full interest. Yeah, I haven't looked at that yet. In reality, you, just straight up you in your situation, you should have just 10-year

average repayment plan. I mean, it would be an eighth of your income a month net. Okay. Like, you could have done this. I can put this in your budget to make it work. If you could, that'd be great. Like, I'm not going to be against that. Well, I don't, first of all, we don't even know if you're going to be accepted.

You might be forced to. Right. But yes. So they'll bring it down. to 150 if you're accepted and if not it's about 250. Yeah. What I do like is that your highest interest rate is 4.2%. Yeah, that's thanks to my parents when they put me,

my dad put me on one of his cards as like a co-owner of the card to like get me good credit before I was even out of high school. Oh, okay. Well, I do like that they did that successfully. A lot of people do that and then they f*** their kids credit. But yeah, thankfully my parents are very like every month, pay that card off. They don't, they're not fuck up. If I ever have kids, I'd like to do that as well for them.

But a lot of parents, yeah, it's a lot of parents. Yeah, it's something you definitely got to be careful with. So we have a couple more debts to go into, 2018 Chevy Malibu. Okay. Which, let's call this Malibu. And we owe $16,607. and $69

cents on it. What's your minimum monthly payment for this? 287. I'd have to check my phone for that to be sure, but that sounds right. When I was going through the statement, oh, actually, never mind. I did, I do.

I found it, okay. No, 172. No, that's, it might be because it was partially paid off when I sent that because I changed my how my loans get paid out. changed it. I did the calc- You were doing like $10.50. Yeah, I calculated out, so I'm just making small payments every day

on all three of my loans. So I can't even see what the normal minimum of payment. I can certainly get it for you. Cycle, motorcycle, we owe a stupid, ridiculous, no point, absolutely stupid, $6,0.45, 69 cents, but with the minimum of the payment of. It's probably around $2.50 off the top of my head.

What's the repayment term on the bike? Two year, three years Probably three No bikes can be a little shorter sometimes The car Oh shoot That was like a five or six year I want to say Interested on the car

It's like 4% Great interested in the bike Same thing Okay Personal on what's the interest on that That is death It's 12 and a half percent It's the second biggest

At 13,522 too. Great. You said this was stupid and everything and it probably was. Tell us what it was. That was a mix of, I think there was one computer part in it. Just a part?

Yeah. Probably a GPU. No, no. No. The reason I know, I think it was the CPU because that was probably around the time I was getting into server work and just doing self-learning. Okay. What else? The other big thing on that would have been a photography camera.

That's something I do as a hobby, along with the motorcycle. You know, hobbies we don't really purchase into until we can afford them? Yeah, that was the trap of the Best Buy credit card because that was when I was working at Best Buy still. Between the employee discount and the Best Buy card, it's, yeah, it snuck up on me.

I even think about that. What camera do you have? Canon R5. Okay, I got, there's a, look of my photographer boy back there of... I'm not going to say it's going to make you feel better. I don't even see like Adobe subscriptions and stuff

in here. My sister lends me hers. Okay. She lets me use her lightroom in Photoshop. I hate to say it, but I would probably try to sell that. That's kind of what I was unfortunately thinking of too. There's some other stuff that I've been looking to get rid of that I just have no need for. Let's get you to

do it, dude. Let's get you to do it. But, rule number two, you need an emergency fund. You don't have an emergency fund. So if we don't have an emergency fund, what's your retirement account at at 26? 17,000 between the two of them. It's actually okay. Because I have 401K matching through McFarland right now.

That's like a problem. Well, that's fine. But you don't have a full, you're not even close to a fully funded emergency fund. You have a really bad debt. We don't get into the fun, especially the expensive hobby shit until we can put that in our fund spending because that's all a hobby is. Right. You don't get to do that.

that a totally funded emergency fund and then you and then before that pay off all bad debt what's what's the minimum monthly payment on this personal loan um that one's higher it's like three something i think it's probably like three 80 something i want to say i know between the three of them like the full the full monthly payment between the three of them's like eight hundred and fifty seven dollars that's almost 50% of your take home i know for a camera And what's this bike worth? What's this bike worth? I honestly don't know because I have no one.

I had no intention of selling it. Reintentionize yourself. Unless you want to drive the bike in the snow and get rid of the car, you're getting rid of one of them. Pick. Got it. Right now I honestly couldn't tell you what the bike worth is because the bike market right now is just absolutely. I think in the sellers favor though.

Yeah. Okay. In the way that's good for you. Probably. Search up the model and worth. Oh, it's a 2020 Kawakaski Cruisers. Kawasaki? Yeah, Kawasaki. Says right now the listing 7-3 on, oops, I'll lock your phone, but.

As used? That's just, you'd have to unlock your phone. That was just the first thing that came up on KB. be trading value and it's in good condition i assume because you probably like sleep with it okay so the obsession with engines in this country and the debt people find themselves and to get there i'm actually okay with the interest right you just can't afford all these minimum monthly payments together plus i mean you actually get probably an additional thousand bucks and that's just trade in that's not even private sale that's traded right so like you go sell that immediately get an extra

1,500 and put that towards and you pay off the Best Buy card today. Well, I don't know if I'd go that strategy, but you do get an extra $1,500. Yeah, we'll figure out where it goes from there. Savings, we went up from $600 to $2,000. Yeah, so I had an A-Corp.

You went down from $1,300. Yeah, I keep my checking pretty empty to, like, hopefully curb my spending, but my bank still has yet to listen to me. Because I keep telling them that, like, if my checking account hits nothing, I want them to, um, not let my card make any transactions.

That's to keep myself in control of my spending problems. The problem is I've told them twice now to do that in both times. They've just keep letting it overdraft and then fall and then have my savings pull from it. I think you might be an envelope person. Do you know envelope method? I have a good idea of what that would entail. You put your categories in how much you can spend in each category in an envelope, and you can only, when you go and spend in that category,

You can only spend from what's in that envelope itself. I think that's like the most strict of the strict, and I think it's what you need because I just can't. I think you're right. You just can't, man. You just very clearly can't. Okay. So this is a small little transfers back and forth on whatever this account was.

And then there's over-draft protection, $118 came in, over-draft protection, $5.40. 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. Hey man, overdraft protection, $1.20, which is not managing our money.

Acorns. A lot of acorns are here. Yeah, and I love acorns. Link in the description below if it makes sense in your situation. Guess what? It doesn't. You have a 12 or 13% interest rate on the personal loan. your rocket cards at what

15 to 30% somewhere in that range probably I'm pretty sure it's like twice that I think it's like 60% No you said 15 to 30 Um it's like at that 30 Yeah You're not gonna beat that on acorns

Acorns is great I have completely sold out of my acorns That's why there's actually money in my account Is your subscription? Yes Okay And tequitos and tequitos and or motorcycle and McDi- McDonald's and EA shop.

So brokerage, I don't think we're putting money in there either. It doesn't really make sense. That was part of what I'm setting. So what happened or what's going on with that is after I left Best Buy, I had obviously some money built up in there 401K and I transferred that over to them. So that's... Yeah, but this is $100. Right.

So that's just building on top of that still. So like I understand... What are you saying? Did you do... So you do... So you did a transfer, right? I did a transfer. A rollover.

I did a roll. Well, I sold out of the 401k and put it into a Roth. Oh. Yeah. So, like, I've not, that's all money from Best Buy. I took the hit on the taxes. Did you talk to someone before you did this? Yes.

Okay. There's somebody at Raymond James that I, that my family person. I don't know Raymond James. That my family personally knows they took care of everything for me. But why is extra money going in right now anyway? Just to keep building that retirement. Yeah, but you're not going to beat the 30% interest on your card. No, and I realize that now because when I last, when I, when I talked to them last time,

they're like, oh yeah, just keep throwing the money in and it'll, it'll, and you just got to take care of your, your bills. And it's like, that's obviously what I've been trying to do, but it's not, it's not working. They're correct. If you didn't have 30% debt. Subway, Burger King, Burger King, Burger King, Tickets, and, or motorcycle, Myth Live, two. Oh, that was a concert.

Two different concerts. We're not doing concerts when we have bad debt. And no fully funded emergency fund. And tequitos. Overdraft protection, $118 bucks. Tequitos. More acorns, acorns. Burger King, tequitos, and or motorcycle.

Don't know. It's hard to tell. Tequitos, Subway, McDonald's. First of all, Subway, it's like the worst food that's ever existed in this world. So why go there anyway? If you're going to get food, at least get food that's edible. Takedos, Panda Express Takedos, Apple Payment of some kind. Tikitos, Myth Live.

We're back. Oh, we're back with more Myth Live again. Heroic Ink. Is that a tattoo? Is that that tattoo? It's the one on my leg. We don't need $180 leg tattoo while we're in bad debt. We can get the tattoo eventually.

I expect you for not being afraid of lean needles like me, but we still can't do it. Tikitos and Subway. So we're just like eating plastic. McDonald's Tequitos, Overdraft Protection If we're getting Overdraft Protection

We're not going to McDonald's Live music something 14 bucks And Boulder Tap Homes It's a restaurant And then yes You pay

The Really weird Towards those other debts Very small payments Like every day It doesn't make sense You are not managing your money well

you're very clearly not budgeting. No, not at all. And you just, you have no idea what's going on in here, do you? Do you? Because overdraft is just slapping your, the overdraft is from, yeah, from the checking and it pulls from the savings

and I know that's part of my issue, yeah. Do you have shit? Have we agreed that you have debt? I thought we did. Okay, of the money that's actually going to the debt is like 2.5% of your spending. And then of your spending, yeah, transportation.

It's huge, obviously, in here. Necessary food, 3.3%. But going out to eat, 4.6%. So we're going out to eat more than we're getting groceries. Great. And it's still expensive, $461 a month. It's an extra $461 a month that could be going towards paying off the debt. Unknown spending $1,000.

Let's see. Unknown spending. Lots of Apple. Tons of Amazon, $500,000 of Amazon. Target, you never know what that is. Walmart, you never know what that is. So I know for the Target and the Walmart, that is actual groceries. So you're spending $750 a month in groceries total?

Because that would be your Walmart and your necessity food. I can't do Amazon groceries, not in Iowa. We didn't say Amazon. I thought you just said Amazon. Oh, wait, wait, wait, sorry. That's your Target Walmart and grocery stores that we saw. It would be about $750. So are you really only going into Target and you don't get anything that's not groceries?

Look at this. Okay. I... What the... Oh, one second. You're right. I did include the Amazon. You're not getting the Amazon there.

So Target itself was like 300. Walmart, it was only like 30. And then the grocery stores, that was an additional $333. So you spend in like $500. Yeah, that's probably right. $600. And I know I can bring that down. It's just a matter of...

I need to quit being lazy and just actually make my own food and do meal prep. Ticitos Like 328 Yeah Other large purchases 2,222 Remember on a monthly basis You net 2000

So what did we do Access.com And there was some Oh wait Other large purchases So some PetSmart And those power sports And Struthers Bros

Brose born of Osris Some UPS stuff Heroic Inc Best Buy Counterparts Misery Trust AutoZone of virtue in Venmoing up money.

So the Venmo is for my phone bill. Cool. Well, that's $40 of the $2,2222. Okay, so $2,182. Okay, so $2,182. And then a lot of that is actually clothes too. Congratulations. So your large purchases of which include clothes,

and I assume you had clothes because you're a human being that exists in the United States of America. You know, most people go and buy clothes. Obviously, that's a privileged stance. Yeah. But I assume you had clothes, right? Yeah. Because you haven't been not making money.

Okay. So that's why I assume that much. So $2,182 went to large purchases. That is more than you bring in a month. I bring in $4,000 a month. Oh, $4,000. Yeah, you're getting my... Oh, you said per paycheck.

So that's per paycheck. Yes. Thank goodness. Even if you paid your full student loans, the student loan payment would be one 16th of your income. Right, right. One 16th of your net. Thank goodness.

You made it sound like it first. It was 2000, which no, sorry. I'm sorry. I guess I didn't make it clear that. That was just for a two week period. No,

that's my bad. That is not on you. Okay. So half, half of which needs should be only 50%. Half went to those large purchases. Calculate all the, I mean,

you're, let's see. If we get a total spending, including what oh spending so not even including the savings we saw $7,838 move around in different ways

now that includes what you also spent on the credit cards that were not also paid as well so total spending compared to $4,000 that came in $7,838 of money movement yeah that's too much yeah understatement

too much it's almost twice what you make. I think this is not 2000. It would be like four times what you made. Okay, so. I'm just trying to think of work. Your mental health stuff, what have you started doing to

help? Both therapy and psychiatry. And how long have you been doing that? Two or three years. The issue was, the issue was with the psychiatrist. Obviously, she prescribes all my meds. What happened,

it was, At the end of August, we upped my meds, but that was not the right move. And I was basically almost accidentally overdosing on Vibance. Cool. And it wasn't her fault. I was still well below the recommended level for my weight. It's just, it was when I took it for the two days that I did for the new dosage, it basically put me in a panic attack all day long.

Oh, so it wasn't an overdose. No, it was basically like if I took any more, though, for some reason. like I probably would have been there. I mean, I was just an absolute mental wreck for like two weeks because... Adapting to a new medication. Well, there's that and like I reacted so bad to it that I was actually on Stratera, which is an SS or S-S-R-N-R-I. Okay.

Yes. And then obviously with the Vivans with that, when I had the bad reaction, I'm like, I can't do this. This was on a Friday. I cold turkey quit both of them. And then, yeah. Yeah. That was a while ago.

Yeah, that was like a month ago now. That was a month ago. Yeah. Well, the question I was going to ask is, have you seen positive benefits in these last couple years of doing this? So like, where are you at now? So, like, for quite a while I was seeing benefits.

What the problem is the drugs would keep like, I would either grow tolerant to him super quick or I'd just stop seeing benefits after so long, which is why we up the dosage again. but after getting off of them, it's helped in some areas and then set me back in others. Okay, well, obviously, keep working with them,

keep working on that. So I was just trying to see where you feel you are mentally at this time. Because as we go and create the budget, I mean, all that's going to come down is we can make a budget all day. Right. Can we follow a budget?

And obviously, in our spend, we saw not even close. So what I want you to do, my money prescription for you is, I think envelope, method. I want you to try envelope. Okay. Give it a play. I want you to get out of the accounts, out of the digital accounts, which is usually actually what negatively affects me. If I see, if I spend cash, I feel

nothing, but if I see money, like, take down on my checking account, I'm like, I'm dying. But for you, you don't even care what's in there. You don't even look. So I want you to know how much money you have for a certain category based on what we designate. And that money can, You can, if you want to go do something in that category, you can only spend from that envelope. If that envelope is out of money, you're done for the month until next month. You don't pull from another envelope,

then you break the whole system and there's no point. What's your, you said you have a roommate. You live by yourself. I live by myself. What's your rent? 1,200. It's not bad.

I assume it's a pretty expensive price for that area, though. It's kind of a wash. I've seen more expensive places, but I've also seen. It's always going to be more expensive. Yeah. I mean, but for a two-bed, two-bath townhome with an attached garage. Two-bed, two-bath townhome attached grass for $1,200 a month.

Kill me. I wish. Okay. Wow. Enjoy that, says everyone in the comments. What's your utilities in Internet? I don't pay Internet utilities and I don't have gas, so it's, I have electric heat. Yep.

So right now it's like 150, and I'm rounding out. Yeah, I'm not, I'm not looking forward to seeing that bill in a month or two. So I'm going to put in like 250. Yeah, whatever you think is best, because I don't know, I have no idea what that's going to look like. I had electrocating in one place. Who wasn't a huge place? It was a one bedroom. Wasn't even like a dining area.

And do that electric heating was expensive. Okay. Well, it also depends on the efficiency of the place. I'm sure the unit itself and is air getting in and out, you know. Yeah, I mean, I work from home. So, like, there's not like a lot of coming and going. Jeez. Okay.

So, I think we get, we get, we, we, we keep it a little nippy for a while and we get ourselves nice. Yeah, I mean, he did, heated weight. I haven't even turned on the heating yet this year. I haven't even, and he told this it was 20 degrees, like before he came down here. So like, brave man, it got into the 50s here and I was like, heat. Um, yeah, like weighted heated blankets. I got my slippies on, my toes. With the way, the.

the placement of a townhome, like, it doesn't drop below, like, I think the lowest I saw the thermostat go was 65, even with it being like 20. Well, yeah, no, no, no. You're not going to get to a dangerous level. I'm saying, I'm saying, like, even with the temps, like, they have been recently, like,

the temp in my house hasn't dropped below, like, 65. Oh, got you, I see. Okay. So you're in a little space heater just can be okay, too. Like, if you're just in, like, one area the whole day. Right, and, well, since I have to use my computers for work, if I just leave my office store open, that, that actually like heats the entire upstairs.

Dude, yeah, when I go in my office with like my larger PC, if I shut it, it becomes like 100 degrees in the night. It's awful. A second. Okay. Utilities, I'm going to say like 250 because it is going to be a little more expensive coming soon. So groceries, congratulations. It's $300 a month. We've proved that you can do it $250 a month, but we're going to give you that extra wiggle room for snacks and that gives you a full 2,500 calories a day, breakfast, lunch, dinner, and snacks and desserts.

I don't need desserts. Well, I'm saying that. That gives me extra healthy food out. And it, well, and yeah, that's not an unhealthy diet. I'm just not a desserts guy. Lucky man. Lucky man. Okay.

And then toilet paper, everything you need to survive, extra things. You can put what you want in this category. Usually I use it for toilet paper. Okay. Tissues for all your things. And, you know, anything else you do, if you want to get a McDonald's out of it, you can. It's the total of paper fund, I call it. It's your $100.

I'd use it for necessities, and if there's a little left over, you can get a McFry. Cars shirt, what's your, well, I'm sorry, okay, so, fun fact, you ready? The motorcycle's gone. Yeah, but that's not most of my insurance. But I need you to commit to that now. That's going to be really hard.

I don't give a shit, commit to it now. You get a nicer motorcycle in two years. Get a nicer motorcycle in two years All right, fine, fine, I'll do it It's a temporary sacrifice, good So we're eliminating the motorcycle insurance What's just your car insurance That's still the bulk of it

It's still gonna come out to like $2,400 a year You pay yearly? Yeah, that was part of the problem How do you pay yearly when you're overdrafting On a monthly basis? Well, that Because I put it on a card like a idiot I recommend next time that comes up

We're just doing it Because that was the issue was is for some reason in my head, I had, oh, credit card for emergency, and then here we are. So obviously, I'm not a card person. I've already chopped up both of them, put them in the trash. You can use the FISCard, but that is pretty much it. Okay. All.

Okay. So usually, yes, you pay annual, you pay quarterly, you pay, baili annual, you save money on car insurance. So you're putting on a card of 30% interest. You're not, you're losing more money. So for you, until we're out of this situation, until we're managing our financial, as well, you're going to do monthly the next time it comes around. That's going to be, I'm going to do like $2.50 a month, assuming it goes up a little, because it's monthly.

Yeah. It will go. Yeah. Divide by 12, it's 200. Yeah, that math checks out. Gas and your car alone, not driving a motorcycle, what are you going to spend on a monthly basis? It couldn't be more than probably a hundred because my parents live about two and a half hours away and that's the only thing that would drive it up.

Do not include your motorcycle because it's gone. You're selling it tomorrow. And I know that's actually, that's a very big thing. You should be proud of yourself for doing that. That's a big step towards actually making your future better. Well, and I know the issue is, is growing up. I always raced motocross. My parents were able to afford that for me.

Yeah. And I did end up having to sell those at some point in that. Fucking killed me inside. Well, the exciting part is you're actually not in a as bad of a situation as many of the recent people I've talked to. So, because of that, I'm going to get you out of the situation relatively quick. And then you're going to just get an even nicer motorist. on cash. You're going to do that.

And it's going to be great. This is the temporary sacrifice to improve your life. You're 26. There's so many decades left. It doesn't matter. Because even without your motorcycle your minimum monthly debt payments

is $1,000, $22, which is a fourth of your take-home. That's disgusting. That's kill me. That's ruin everything. So, what else? Phone bill. Phone bills, like, just say 45.

My phone's paid off. Good. Now you do some medical things on a monthly basis. How much should we put towards medical? It's all covered by insurance. 100%. So no co-pays with therapy. No copays. Congratulations.

Nice health insurance. One of the small benefits, I guess, for working for a clinic. Oh, true. That makes sense. A better. Anything else in your life? We need to calculate into this. Think hard.

I think that covers everything because really all, I know, I mean, you already said to you, like all my money goes towards either concerts or the motorcycle. or eating out or tequitos or video games so a lot gym yeah you have a gym oh yes oh god i'm glad it's like so there was like a 160 up front charge and then 192 right well it's so it was 120 up front and then it's another 70 dollar recurring charge on a month yes so there's pretty nice gym it's a really nice gym and i i do my damnness to go there at least three times a week so i feel like i'm getting my money Yeah, good lad. Absolutely. Get there. I'm putting it in your budget. I'm happy to put it in your budget.

Anything else? No. No, that was actually the last thing that I can think of. Listen, I'll yell at you about the debt and the spending. You can yell at me if we're not going to the gym. We can have a yell party. See, even this. So this is definitely why we're getting rid of that $250 payment for the, for the motorcycle. You have $660 bucks left on a monthly basis. Let's get that exact number. 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. And I only recommend those who I like working with and who I like using. So if you have money sitting in savings, have that money make some more money. And use that high yield savings account.

Link in the description below, 4.6%. And bonuses all the way up to $250. So what you need to survive on a minimum monthly basis, and we need to get rid of this debt because we would decrease it by $1,000 is $3,337.40. So do you need minimum on our tighter budget? So divide that by the $4,000 that comes. Oh, we're not divided, but let's figure out what's left. 662 and 60 cents is left on a monthly basis on average.

Okay. That's your money to play with. You get an extra $1,500 from just trade in. You might try private sale for a couple of weeks on the motorcycle so if you can get like $2,000 extra for it. But trade it in if you can after a couple weeks, that's fine. So trade in good condition. That extra, what did we have in savings? What's your savings right now?

Not what you have on sheet. I can tell you that. Savings right now, it says 1,800, but I have to pay rent, so it'll be down to 600. So it's not savings. You don't have a savings account. I try to keep everything in savings and only move things to checking what I'm actually spending. That's not what a savings account is. Your savings accounts is that.

Okay. That's why we're doing an envelope system. You're over-complicating it. Do the envelope system. These categories are the ones I've given you. You put the cash in there. Okay. The one digital account you'll have, you'll open a high-y-old savings account.

I don't care where I use SOFi personal. open it. That thousand, $500 you get from the bike, put it in there. Okay. And then for the next two and a half months, for the first two and a half to three months, you're going to save up the extra $622 you have on the side.

That was $1,500. It's going to give you a one month of emergency fund before we start the debt train. Okay. Okay. So that's three months. We're going to round up assuming some transition period. That sucks.

This is why it's actually probably going to, of worth it, like just a couple times a week. I don't even care. Or maybe like pick a day on the weekend. You choose it. Make your week a little worse. Make your weekend a little worse. Go pick up an extra 10, 15 hours. And that's something I have been looking into already. I would. If you can bring, I got a friend.

Yeah, if you want to go first. Well, if you can just, all I wanted to say is if you can bring the 662 to a $1,662 extra a month, you're accelerating this drastically. Go ahead. Okay. And I was going to say, I got a friend that has worked for Domino's for delivery. And he said the hours are super flexible, which is what I need because with my job, one week out of every month, I have to do on call.

And basically, I have to drop everything at a moment's notice if a call comes through. So that's been kind of the issue is finding a part-time job that I'll be able to have that will work around my main schedule. Jimmy Johns, of which you've consumed from, when I worked at Jim Johns, I worked there for like four or five years. Okay. They actually cater pretty good to consistent schedules on a school semester basis usually. And especially if you're working in the college town, Jim & Johns actually makes decent money for delivery driving. But in the Midwest specifically. But what they do is they put you on a set weekly schedule.

Okay. Now, when that week comes up and you need to get people to cover your shift, it's on the person. It's on you to get someone to cover. Yeah, that's how it always is. Yeah. But instead of it being a random, you get this many hours this week, you get this many hours this week. some weeks you don't get it. Sometimes we don't need you. It's set every single. So it might be something worth considering. Yeah, that's that's another one because I was going to say I was looking

into DoorDash. A friend, he works at a Domino's and he said like their scheduling is super flexible too. So I thought about looking there. Thought about possibly since I know the manager still at the Best Buy used to work about that. I thought about talking with him to see if he'd hired me just on like a weekend basis or I mean they're open until like nine, 10 o'clock so I can pick up hours during the week. If you did like a Tuesday, Thursday, the only thing is, oh, there's one thing I forgot. There's one thing I forgot. I do have a dog.

Oh, okay. How much would we caterer a month? Her food is about 50 a month. Penn insurance? It's currently covered with my other insurance. Oh, that's really cool, actually. For now. Like, if something were to happen, though, then I would have to get pet insurance because apparently

pit bulls are super aggressive dog breeds or something. I don't want to say anything about that. Get everyone on the internet on both sides to murder me. So you'll never know what my opinion is. Actually, we don't have a strong one, but this is one of those topics that people kill me. Yeah, no, I don't blame you for keeping that one under wraps. Okay, so then it takes us, so I, I cook. The Best Buy, what I want you to do is,

is you need to get in there. This is another one of your just things that allow you to do digitally. Figure out what minimum monthly payments are necessary to pay them off before interest or is accrued. Then adjust them with that, then just do minimum monthly payments and make sure they're paid off before the interest is occurring. That's going to adjust your budget a little bit. You'll pay, we have like $590 off on a monthly basis,

$570, something like that. But just for the sake of things, the cycle's gone. Let's just see how long it would take you. without so this is not going to include interest rates but it's also not going to include you pay off a debt and then the extra minimum monthly payment you're going to pay off the next debt

student loans whether it's the income base whether it's the traditional in your situation on go traditional you can do income if you want if they accept you minimum monthly payment so they're paid off okay just makes mathematically sense and that investing thing that you talked about you're right.

You want to just throw money at it. 65 months without you picking up an extra job. That doesn't even, that's taking your motorcycle out of it and that's not even including your student loans. Okay. Which will be going on top of this. That's five point,

that's five and a half years. Five and a half years. And that doesn't have taken account interest. So I just wanted to show you what this looks like at this point. Because even though you make a strong income, especially for the area, where your money's going

and where minimum fee payments have stacked up to where your rent is and just where your bills are, in general, everything combined, you don't have enough extra leftover for the amount of debt you've built up. So, yeah, we got to get a second job. Even if you just double that from like that 570 to like a thousand extra a month, I mean, that a man, it's going to cut it to like two and a half years.

And that is so worth it. And that's where I say two and a half years, call it three years to get a fully funded emergency fund then. So three years total, then you get your bike again. And it's awesome. Yeah. Okay. Okay.

And I was going to say the one other thing once my lease is up, I'm probably going to get out of the place I'm at and get a, I need the two beds for what I do because I had my computer, like my work computer in my bedroom at my old place and it just played hell with me mentally. What about living room? I've done living room. Oh, I couldn't because of my roommate and personal health information because I would occasionally work with that. Yeah, no, no, no.

I'm talking to your next place though. If you got a one bedroom, do a desk setup in the living room. Yeah, I could do. I don't like it personally, but at this. Can you do it for a year? Yeah. A year of your hopeful. 80, 90 years here.

Right, right. I think we can, again, if it actually fucks with you mentally, I'm not going to put you in that dark spot. But just consider it. I understand the bedroom thing, separating work from bedroom. Yeah, that can be pretty important at a certain point.

Yeah, because like it got to the point where I couldn't even fire up my personal computer to get on Discord and talk with friends. Yeah. Like I was completely secluded from everybody for like six months to a year. Well, you had to be able to fire up Discord because we're going to put you in the discord of all past guests.

So essentially what's this number shows you, the five and a half years, though, even without interest occurring, is that it's going to take forever in your current situation to pay this off. So we need to get another job. That's your answer. Okay. So I need you to envelope system that budget. I'll send you a little up.

You can take a picture of it. It's on screen. You can email, ask questions, all that good stuff. You need to envelope. Okay. And you need to go get another job immediately. Sounds good. that's my diagnosis. What do you think?

No, I'm, I mean, that's kind of the direction. That was the direction I was heading anyway. As much as I don't want to get a second job, I know it's necessary at this point, too. Make sure your therapist is aware of this, aware of your goals, aware of the sacrifices you're going to be doing and needing to redirect your different cope spending and, you know, just your need to swipe,

and let's get some discipline in life, improve your life. That's the plan. All right, when it comes to his hammer, financial score. Spending in a budget definitely was not good, but it also just isn't the worst of the worst, but it's on the bad scale. So two out of ten, same with the debt. It's on the bad scale, but not the worst out of worst. Two out of ten. Mergency fun. I wanted to give something there, but I couldn't because apparently that money was just being spent on rent and everything. So we learned that towards the end, zero out of ten. Retirement, actually very happy for his age,

seven out of ten there. Real estate, that's a zero out of ten. Part of a future conversation, though. So with all of that together, Hammer Financial score 2.5 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.

Thank you.