Financial Audit - He’s Single-Handedly Throwing Away Their Future

Episode Date: October 10, 2023

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Hey, how's it going? My name is Jeff. I am 20, about to be 21. I'm from the Houston area, and this is financial audit. Oh, you're young. Okay, so what do you do for a living in Houston? I am a sleep technician. So like for sleep apnea, CPAP, that kind of stuff. I'm the guy that hooks you up. Yeah. Interesting. So you go to people's houses? No. So I'm out of a clinic. We stay there overnight. People come in and then we hook them up, sit back and watch them sleep all night and see if they got apnea's. Okay. Okay. Well, that's cool. That's a good job. That's obviously helping a lot of people and a lot of people need that. So that's really good. What are you making doing that? So I just started doing it full time.

So I haven't gotten like an actual full month of full time pay yet. But it should be right around. Yeah, yeah, like this month. But it should be right around like $38,000, $4,000 a month. 3,800 to $4,000. Oh, okay, $6,000. $39,000. Is that before or after taxes?

That is before. So we don't get taxes taken out at all. Oh, is the contractor work? I think technically, yeah. Oh, okay. So have you been paid yet? Yeah. Uh-huh.

Of that pay, have you set 30% aside for taxes? Why not? So I've been working here for about four months, three, four months. And for the first three months, I was working another job. I was only doing that part-time. So I was working that other job. It was at an IT place. I was only working maybe like 10, 15 hours a week there.

But I was trying to make that my full-time job. So while I was working there, I was barely making enough to support rent and food and all that stuff. so I didn't have nearly enough to also put aside 30%? Not the IT place. No, that was an actual full-time. Okay, so you were getting, you didn't need a set-aside money because Well, not for that job, right, but I was still making way more money with the sleep tech job. I was making like $1,600 a month, just working two nights a week.

And with the IT place, I was making maybe like $500. No, I'm talking about your part-time at the sleep place, right? Right. For a little while. Was that contractor or was that? Yeah, same thing. And you haven't set aside anything. Now, taxes that would come out would probably wouldn't have been ridiculous.

There's, I mean, there are extra taxes for contractors, but even so with the part-time stuff, your taxes would have been relatively low. But now, coming in, let's just call it $4,000 a month, if we're on the higher end, $50,000 a year, you're going to have taxes. And I want you to be ready for that. So you didn't have enough money to survive. Cool, sympathize. Right. Now with this last paycheck of the full time, you know what's coming. why have we not set any money aside?

Honestly, so the last couple checks I've gotten, I've literally just put them straight aside, and I have not touched any of my money. I've tried to not be spending stuff because I knew it was coming on to this show, so I didn't want to mess with anything. I'm not spending it all, so I still got a little bit left.

How much? What's on the side? Right now I have like 800, 900, but I think I got paid today, so I should have like two grand. That's not setting everything aside. No, it's not setting everything aside, of course.

I still had to pay for food. Yeah. Well, I've only been paid like twice. Since I've been full time. Okay. Okay. So what would you give yourself, what's your financial score? Zero, a ton?

Yeah. You say that, probably. All right. So, this is a good amount of debt, dude. For someone who's 20, I didn't, because with a beard, you can never tell where someone is in an age range. In looking at the debt, I was not expecting a two zero. Turn to 21 in a couple days. Thrilling.

So with the Discover, 910. $165.39 with a $12 minimum, oh, sorry, $12 of purchases. $41 minimum payment. Fees. $30 of fees. Does not a fee to hold the discovery card? It's $20.79. What's the fee for? Waterburger, we purchased $12. It's fine. Total fees, $40. I've never had this card But $30 fees total this year so far 40

Total interest lost this year 136 Do you know why you're getting fees? No, not entirely sure Because you started with over the credit limit Oh yeah Why are you over the credit limit And then even if you make a payment

Why are you then going and putting water burger Not even a good burger Let's put a good burger on Oh fuck That's not a good credit limit. Oh, yeah. It's not a good burger. Why would you, why, out of everything you can do?

Buddy, you were losing fees because you were over the balance. Why are you putting more money on it? That's a good question. Give me a good answer. Yeah, yeah, I really don't got one, you know. Oh, come on. Why'd you go and swipe that damn card? I need to get food.

I need to get food. I didn't, I haven't been going to the grocery store. Hardly call that food. Okay. You were taking a little bit far. I can deal with you saying that is bad, but come on now. I'm not for around. I mean, dude, we can't.

You can't just be going and swiping at fast food. We're losing fees because we're over the credit limit. Yeah. Okay. Mercury. Okay. I just need to know. I will go more into this, but we'll go more to the debt.

Why do you have so much debt at 20, dude? Yeah. What have you done? Man, so really this is all other than, I mean, not like 26. thousand is on my car. So I mean, the rest of it is all credit cards. And all of that is because I tried to move out whenever I and my roommate weren't necessarily perfectly ready for it. Okay. Basically, the biggest chunk of it, it all really started whenever I was out of a job for about two months and my roommate had been out of a job. Two months? Yeah. Well, okay, that's not all of it.

Probably about like three, four grand all happened within that two months because I was putting all of the rent all of the food, everything on just credit cards. When did you try to move out? Last October. Okay, so you're 19. Mm-hmm. What were you not ready? You just didn't have a good job?

I had a decent job. My roommate had a kind of shaky job, and then he didn't have a job. So, you know, for the first few months, he was getting money from, like, his parents or family or whatever, trying to, you know, make his part, but that's not sustainable. So, you know, I had to start picking up his half or the entire room. It wasn't rented per room. It was rented per apartment? Yeah, yeah, yeah.

We just got a two-bedroom apartment that we split. But yeah, there was a two-month period where neither of us had a job. And how was that conversation with the roommate when you were taking on all the bills? I mean, we had the same conversation of me just being like, you got to figure out a way, and then there was no way being figured out. Did you get fired? Yes. So I was trying to quit.

I wanted to quit, but I didn't want to just leave them because they were short-staffed. We had stuff coming up, so I was like, okay, I'll quit in a month or two or something like that. But then, like, after a couple weeks, they said that my head wasn't in it anymore, so they just quit. They just fired me. I was a QC at a like piping industrial piping type business So I just like check the orders and sent them out to the trucks and stuff Okay And you just underperformed

I mean I guess I'm not sure My mom thinks they were trying to make a What's it called like a Make me a message them fire me be a message Because I wasn't like trying to hard enough They were trying to get the rest of Yeah I know it didn't make sense to me either Alright buddy on this thing

You got your balance went up. Your balance went up. So this isn't like, oh, credit line is $4,900. You're already over it. You're over it by $17.55. So it was at the credit line by $55. Like you were almost there. You made a, okay, halfway decent payment, double the minimum of payment. Lovely. And you purchased $359 stupid dollars. Why? So I'm not positive on that. But I do know at one, it was either with this card or the Apple card, I put a bunch of money towards it so that I could use it for groceries. Because I was at the grocery store and I didn't have money on my Discover card. Oh yeah, growth ways.

Is that what you did? Buddy! You groceries! Well, that specific instance, I'm not saying in general. I definitely haven't got, yeah. And the specific instance is what you're talking about. The fucking groceries, maybe it was $100 of this. You were door-dashing McDonald's, you were Sonic Drive-Thru,

When you went to Waterburger, got some Tequitos, got some Tequitos, got some Tequitos water burger, water burger, Chick-fil-A, RFC restaurant thing. Tequitos, Waterburger, Waterburger, Water. Fuck you. I mean, this is incorrect. Why lie? Why come here and just start bull- I'm not trying to bullshit?

Well, you lied. You said you went there. You paid off the thing so you could get groceries up, which I would sympathize with it, because I'm not going to have you starve on the street. But you say that, and then out of the one, two, three, four, 5, 6, 7, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18 purchases on here. Only five were actually relatively necessary, potentially. Yeah.

Do you even care? I very care. Yes, sir. Very care. This isn't very care. The last month and a half, I completely stopped care. This is, why? Because I'm so, so far into it and it's just easier to not care.

I mean, I know it's not an excuse, but that is the explanation. I mean, like I said, whenever I was out of a job and I started initially building up that debt, that's why it got so bad because it wasn't really that bad. It was manageable whenever I had a couple grand or whatever. I could make that work, but the job situation my roommate never really got better. So I continued having a struggle or whatever. And then I see that big balance. I know that I'm not going to be able to pay it off anytime soon because I'm struggling with other stuff.

So I just continued piling it on. 188-d-minute monthly payments wild. $141 of interest being squeezed from you on a monthly basis. 32.24% I haven't seen a rate like that. That's crazy. $523 in interest is here so far in fees of $60.92.

It was over the limit. Interest charge, cash advancing. We were cash advancing? I think that was whenever I was trying to do rent. We were never cashed rent. Yeah, I know I shouldn't. Like, okay, we're trying to do rent. I get it.

But you're choosing DoorDash and Sonic and Water. a burger and tequitos over rent. You weren't caring for a bit, and I get why. You explained it. Oh my gosh, $925 on a 32.24% interest of cash advance. F*** me. Okay, you didn't care.

Your girlfriend's in the room with us right now. How long have you guys been together? Almost five years. Five years. That sounds like something is like actually going on in terms of a relationship. So I assume a future is. relatively likely. I mean, she's here so you guys don't hate each other.

Okay, what about her? What about you guys? Do you care about that? Yeah, that's why I want to get it figured out. This, during that situation, while you were doing all this and this was just now, and this was the end of last month. Yeah.

That's going to impact your guys' future together. It's going to hold you guys back. It's going to prevent you from doing a marriage that you might want to do, like if you wanted to do something large. Yeah. It's going to prevent you guys from retiring together. It's going to prevent you guys from paying the bills, putting a down payment on a house.

This is holding you back. So whatever care you might not have because it's just easier to just put things aside for a moment, you're making it harder for her later. And you guys as a couple. That card is bad. That card is evil. I need you to chop up the cards, be done with the cards. They don't exist.

they're horrible. Dude, if you're going to use a card, use something like the Fizz card, man. You've heard of me talk about it, but it acts as a debit card. So at least you can take advantage of the credit score stuff, but it acts as a debit card.

Just do that. I feel disgusted with you still having these cards. I need you to close the card. Apple card. As far as store cards go, it's a halfway decent one. It doesn't make sense for you to have it. $84 minimum monthly payment.

On a balance of $2,467, The balance only went down by like 80 bucks Lovely Which corresponds with that minimum with the payment So let's see what's going on here And we're purchasing things SmokeShack We're going and getting $40 from SmokeShack

Whatever that is Is that like Yeah Pape it up dude? Okay Also just bad a decision for you Because trying to quit Yeah and I respect that That's hard

It's so much easier I mean that's Especially with all this stuff I've tried to quit so many times but man, it's not easy when I got all this stuff hanging over me. And I can't just say, quite for your finances. It's a very addictive thing, but just, again, when thinking about the future of you and it's a couple and together, maybe children who knows, we don't know what the long-term consequences

of the vapor type stuff is. We don't know that. Not a lot of research has been done on that itself. So I don't know how much interest has been occurred on here, but it's probably gross. So, yes, I would work, you know. Through mental health as well as whatever else is necessary to try to break that addiction, just even for your health. The health is more important than the financial aspect of it. But even if you're going to purchase it, let's not purchase it on debt that we can't even pay off.

Yeah. Yeah. So we have a car. Mm-hmm. Okay. What is this car? It is a 2019 Kia Optima. Okay.

What's it worth? Have you ever looked it up? Yeah. I want to say Blue Book's like 18,000, something like that. Yeah. So. Okay. What's the interest rate?

I think like eight, eight and a half, something like that. Nothing insane. I can't believe we've gotten to the point where we think eight and a half is an insane. Is it not? I mean, it was like 12. We've had people on the show at like 25 and that's just disgusting insanity, but 8.5 is certainly not even close to good. Was that 12 and then I got to refinance it? but saves you a little bit

so you had it refinanced what's the term on this 72 yeah what is what's even the I didn't know what I was doing when I did that uh-uh boss it sucked thousand almost $200 $200 of interest away from me this year so far what's the minimum monthly payment

for 17 do that for 72 months I don't take a brief moment to thank today's episode sponsor Sonder As you know, mental health plays a massive role when it comes to overall personal finances, and I like being very open about my own struggles with mental health. Therapy has helped me immensely, and I want to make sure anyone who wants help is seeking help can get the help they need.

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have a wide variety of therapists near you as well. So go to care.com. Sondermine. dot com forward slash Caleb or visit the link at the top of the description below to get started today. Oh, another Discover card. Oh, no, this is a Discover checking here. Right. So we've gone through all your debts? That's it. Terrible.

I also have, so we just went through the Apple card and the Mercury card, right? Apple card, Mercury card, Discover, and your car. I also have a credit karma checking and say, no, no, no, yeah, yeah, that's on my debt. No. I have a synchrony discount tire card that I got because I had to get four tires, and I didn't have any money to get them. Not having an emergency fund is an emergency. And it was right around $1,000, too.

What's on it right now? I want to say like $9.15, $9.20, something like that. Miner monthly payment? I think like $16. It's zero inches? I got no idea on that, to be honest with you. I know it was for like a certain amount of time. but I don't think it stayed at zero.

All right. Let's take a look at your checking account. So we had a Discover checking account started and ended with a pretty similar balance. All our money goes in, all our money goes out. It's kind of what we're looking at. And if it wasn't enough already, dude, if it wasn't enough already, if you didn't want to give me a heart attack, I mean, it's happening already. Apple and DoorDash and Tropical smoothie and Apple, McDonald's, Amazon, Tequitos,

Bill Zetti? Oh, that was a recurring thing. Cancel that. I don't even know what it was. Good. Apple, Microsoft, DoorDash, DoorDash, Tequitos, Apple, Amazon, McDonald's, all these Amazon, or all these Apple subscriptions or purchases, you need to stop. Whether it's like Apple Pay, DoorDash, I don't know, just stop. I need to figure that out. McDonald's, Prime Video, Tequitos, Amazon, Cinemark Movie? At least go to a real movie theater and cash app.

out a lot of money. I think that's to the girlfriend. That's that's weed. I also do that. Yeah. USAA knows dynamic duos can save the day like superheroes

and side ticks 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 usa.com slash bundle. Restrictions apply. Just like, there's a lot of money that goes out towards that.

It's not okay. How much? on a monthly basis. Monthly, probably like, 300 or 400? Is it a joint operation? No, she does. I mean, she, no, no, it's me.

Health. Use Motion, DoorDash, Amazon, Prime Video, Netflix, we have every subscription known to man. DoorDash, affirm. Oh, affirm. What are we affirming? So is that another debt? Do we have a balance on a firm?

Or is it done? That one I don't know. I've seen the, I know. I've seen the affirm payments and I really. Oh, fuck. Yeah, yeah. Chag order. Apple, Apple.

Keep coming up. Cash apping out. There's, there it is. And more DoorDash. So you get high and then you order DoorDash. That's exactly what happens. Yeah. And then the rest is like, we're doing things like acorns and stuff like that.

It doesn't really make sense to be doing when we have these kind of interest rates and debts. Because you're not going to beat it. You're just not going to beat it. That actually saved me like a month ago. I needed an extra like 200 bucks. and I had like 200 saved in the acorns. Well, that's, yeah, not what it's for. Yeah.

That's going to acorns later. That's going to an IRA. So you're getting penalty on that money anyway. Oh, my gosh. Okay. So, and then we have a credit card checking. Is this another spending account or something? Yeah, I want to get out of the Discover checking account.

I don't like that card. So I don't know. I use so-fi, it's good. Okay. For savings. Good for checking. 18 cents. That's what's in here.

Lovely. Every second of your life is just stuffing fast food down your throat. McDonald's, Amazon, Popeyes, Tequitos, DoorDash, DoorDash, DoorDash, DoorDash, Waterdash, Waterberger. Fucking, Amazon and Waterburger, Waterburger, Takedos, DoorDash. Buddy. This is just crazy. This is lack of discipline. This is lack of care.

This is just you fucking around and not giving a single shit about your future. What's to say you're going to change that? I mean, this was just happening. These are recent statements. Sure. Okay. You set a, you set a couple hundred bucks before you came on here.

Lovely. As you said, because you're coming on here. What's, I mean, I can lay out of budget. I can do stuff. Yeah.

What's going to say we're going to get anywhere and you're going to be able to have the behavior and discipline to get you to a place? Are you high right now? No. No. Okay. Well, it's going to get you to it. Your eyes are a little red. Yeah. I was just, yeah. What's going to get us?

So like I said, man, I really can be disciplined. I really, really can be especially financially. Before I got into all this stuff, my credit score was like at 780. Like I got it. It was like way up and I was doing fantastic. I was using it. I wasn't just doing like a couple small purchases and I was actually running up and then paying it all up every single month. And my credit score like shot up. with these statements makes it I can very clearly tell and I was talking to chenault whenever we were driving up here I was like man he's gonna he's gonna get really upset it's just because I saw that balance and I just completely knew that there was like I don't know what the heck to do to start going after it but if I have a plan laid out I'm absolutely going to stick to why have you not sat down and created a plan I've tried and it hasn't worked then why is me making a plan so I tried during here's I'm moving back in with my mom so after this I'm the leases up October 6th.

So this week, I'm trying to move back in with my mom. So I'm not going to have like a rent payment or anything like that. Before whenever I tried to like set aside, I tried to make a budget, set aside however much I could put towards whatever. I wasn't making enough. I wasn't making enough on top of, I mean, I probably was also wasting too much. But, you know, I wasn't making enough to start really knocking away any of that debt.

So I just never, it never stopped. Like I was spending like a hundred bucks maybe a month towards it. There's always a way to find just more ways to spend money. though. Okay. Okay. I mean, we can, we can try. I want to try to have hope.

I'm just upset for your situation. I'm upset at the debt. Yeah. I want you to move. Okay. And let her come in. Hi, how are you? Good.

So, we're just talking into the microphone. So, you look good. Don't worry. So just lean forward a little bit, but I want to hear from your perspective. Just, you guys are not married. We don't have combined finances and everything like that. But looking through this and looking through the lack of discipline and care that has happened, being together for five years screams, okay, there's a potential future.

How worried are you about all this? Is this awakening to you? Did you know? Yeah. So I knew he spent more money than you should. But to this extent, no, I didn't know. But my worry, yeah, obviously. But I do know he does have like the discipline to pick himself out of this hole he's created.

Okay. What do you think this situation means for your guys' future as a couple? This is going to take a lot for him to dig out of, a lot of sacrifice and work. No, I understand. And until then, like, we're going to stay as boyfriend, girlfriend, you know. I'm not planning on getting like sharing finances if this is still going on you know what I mean yeah very smart I'm still in school I still work um I'm still taking care of myself and once he picks himself up and I can see that you know he's doing good so a large percentage of his money goes to

you know and you don't partake what are your thoughts on that um what are my thoughts I don't I'm not not cool with it, you know, but I definitely don't agree with it 100%. Okay. You know, like, and then finding out how much was going, how often. You didn't know until right now? I knew, like, I had an idea, you know. But until right now, what would you say, like, 300, 400, a month? Like, that's a lot.

That's actually crazy. And especially when we're over credit card limits. Yeah. So, like, if it were for me, I'd be like, like, for me, I'd be, like, like stop right now. But, I think he's addicted? A little bit. I mean, a little bit, yeah.

Yeah. I know this has been, for a very long time, we kind of all thought there was like no addiction possible when it came to it, but then obviously these last like five years, a lot of studies have been done showing that there can be addictive tendencies to certain people who have a hard time stopping, even though, of course, it's less than like many, many, many, many other substances. But if you think, I mean, have you. have you guys had conversations around that?

Have you guys had conversations around finances and how have they gone? When you said that, you mean like... Smoking weed. So yeah, we've had conversations about that. Whenever I've told him to stop, like he will. Why does it start back up and how long? Why does he start back up? I'm not sure exactly why.

But once he's like, once he'll ask me like, what about now? I'll be like, sure, whatever. And then after that, it kind of spirals out of control. and about finances I do tell him first pay off your credit guards first no matter what I do tell him all these little tips

and all that and he's like I don't know I will I will and he was doing really great until he decided to move out until his roommate and he lost his job and then all the debts

spiraled out of control right there and this was this happened within the last year or so yeah so before that he was better with money than I was

and he was teaching me stuff. So yeah. That's how that went. Okay. All right. We can switch back. We can switch back. But thank you for being,

for willing, being willing to share. Welcome back to the hot seat. So I don't know. What do you think about all that? She's, you know, she'd love you to take control of your finances,

it sounds like, for the future. She thinks you have the discipline nature around it, but then also at the same time, we've also seen, okay, you'll quit smoking for a bit by request, but then we spiral out of control. So the discipline around that,

now that comes with more addictive tendencies than, of course, a lot of the budgeting things, but even still with that, lack of discipline that sounds like has gotten us to a point where we can't sustain a lot of good behavior. So I don't know, I'm a little nervous. What are your thoughts on everything we just talked about? Yeah.

I mean, it's tough. It's definitely tough because, I mean, I want to quit. I've been wanting to quit. And I've tried, you know, multiple times, but, you know, I'll get like a weekend or whatever. And then I'll just go and smoke just a little bit. And then I'll be like, okay, I can't smoke every single day. I'll just smoke like a couple times a week. And then it turns into every single night whenever I get off.

You know what I mean? Like, it's just a slippery slope that I've allowed myself to continue falling into. And then once I got into all the debt, I really just stopped caring about. Nicotine I still did care about, but weed especially. I just, I was like, whatever, man. I'm just going to smoke. I don't think about it nearly as much as whenever I don't. Okay.

So housing, that's 34%, which is certainly on the edge of comfort when it comes to your spending. Not necessarily compared to your income. We'll see that, but for spending, it's pretty rough. Transportation 21%. Necessary food was only 6.3% eating out, around 20.2% of your spending. 20.2% of your spending. Unknown shopping, which was not an Amazon.

We don't even know. That was basically 5%. Different subscriptions, 2.4%. Jim 1.7% were good with that. And miscellaneous. Let's see, miscellaneous. It was like the smoke shop and Cinnemark and extra at the gas station. That was about 1.4%.

So only 6.5% of your spending went to actually paying off debt. 6.5. What did I say the? was 20% of your spending could have been going to paying off debt. You chose, you actively chose to go spend that fucking around, getting weed, doing whatever instead of paying off the debt. You're in the debt, but you could have been making progress. You could have been building a future together.

She said she won't consider combining finances getting married until you'd get your taking care of. You're preventing your guys' self from actually forming that bond and partnership for the future because you are choosing 20% of your money. You are choosing that of going to eating out and DoorDash. That is what you're choosing. So hopefully this is the wake up calling you needed, man, because that is bad. That is rough and that is selfish of you.

Selfish. So we have the we have I mean there's ways to go forward The way that I typically do is we can lay out a budget with your current expenses and what we can put you on when it comes to an overall strict budget And we can try to get you out of debt But again I'm a little Fared with afraid with past behavior but Is that the path you want to go down? Yeah, absolutely. Uh-huh

All right What's your rent or your portion? So like I said, I'm moving back in my mom in my mom in my with my mom so there's no rent this week like October 6th. So no more rent has ever owed. Are you going to have to pay anything for utilities or internet, give back at all? No, not as far as I know. Okay, cool.

Now, let's add up your debt minimum monthly payments. And how are you feeling? Because I know I've dug into you, but I want this to be a wake-up call. It's the conversation that I wish happened to me 10 years ago. So how are you doing? I definitely appreciate it. I mean, I'm not going to say it's easy. It's not easy.

It's not supposed. supposed to be easy and it will be not easy going forward but you're going to set yourself up for success if you actually follow this and you're going to have an awesome life if you follow this. Now, gas 140. What about car insurance? We don't have that. Yeah. So that's one thing.

I haven't been my mom and my stepdad have been covering my insurance just because I. And will they still? Right. I don't want them to. They still can, but I want to start paying that back. Oh, okay. I mean, they don't like, it's not like they're completely happy with covering it. You know what I mean?

They're not like telling me you need to start paying this, but they, they're more worried because it's like building up and I'm going to have to pay it back eventually. Wait, wait, wait, what? It's a debt to them? Technically, yeah. So it's to my stepdad. He's the one that pays all the entire insurance plan or whatever. And yeah, so each month it's like $350 that I was supposed to be paying for insurance

and I didn't pay it like after the second month of me living there. So it's been like eight months of that building up. What do you owe? whatever 350 times 8 is okay so you need to start because you owe it back if you don't either way I need to start paying the 350 yeah at least doing that so it doesn't continue to

okay car insurance yeah 350 expensive okay subscriptions we're cutting it out except for well does chat gtp help with work for your job I don't think so no it did with IT job I probably don't need it anymore okay cut that dang

No more. I know it's non-traditional, but if you guys go out to eat, she's paying. She's been doing that for the last year. Are you sure? Because you eat out every single day of your life on your own statement. Yeah, yeah, yeah. Okay.

Phone bill? Nothing. I don't pay. How's food going to work in the house? I shouldn't have to pay for any groceries or anything like that. I was, for my own budget, I was giving myself like $100 a month. I'm just put it on there just in case. And total paper, toothpaste, all that good stuff.

It's giving you 50. Anything else you have to pay for? No. Well, I mean, I'm just for my own, just what I think you should do, and it's harder said than none. I'm not putting in anything for weed. I'm not putting in for nicotine. It's not an overnight thing. You work on that, but I am not going to feel good putting that in a budget that I create.

1,430 3,900 comes in I need you to set aside 3,900 it's in between the 3,800 and the 4,000 you said I need you to set aside $1,170 in a high-yield savings account I use SOFI high-yield

That's where I put my tax money But you need to start doing that now You're going to get by the tax man Come early next year This gives you an extra $2,730 left in a month monthly basis. $2,730.

$1,300 is what you have left over. Now, normally I do a one-month emergency fund before getting things kicked off. Would you have a good safety net living at home? We're not going to do that. What I am going to do is synchrony is paid off immediately within month one. Let's just call that month one being extra conservative, some transitionary things. Okay, cool. Month number two, we're paying off Discover.

Let's, again, just call that month number two. So month number three, what we're going to be doing is we're paying off half of the Apple Card. Month number four, we're finishing off the Apple Card. Month number five, we're doing minimum monthly payments on some of these other things until they're paid off. And we're not putting a single cent on them anymore. It doesn't exist. It's going to take three and a half months to pay off the Mercury card. After those four months?

Yeah. So we're nine and a half months in, right? So we're heading in month five. six, seven. So, so, wait, we're headed into month five?

So seven and a half months as we've just completed seven and a half months. Okay. The car. Mm-hmm. Mm-hmm. There are choices to be made. You can,

do you want to pay it off or do you want to finesse? I mean, I want to do what's best, whatever. Well, I don't know. It depends how long, because I'm okay with you being 20 and taking a little longer, but as long as you're doing it in an appropriate manner.

Now, the money you're going to have leftover is going to be a little more at this point because we've saved some money. So let's give you an extra 200. So 1,500 left on a monthly basis now. It's going to take 16 months to pay off that car. So 16 months plus the

this is for credit card people only. If you're not a credit card person, Close your ears. People always ask me what credit cards do I use personally, or what credit cards should they use in specific instances. I've partnered with card ratings to create specific list of good credit cards based on specific situations. So we have the best no annual fee credit cards, the best travel credit cards, the best secured credit cards,

and the best credit cards for people who have no existing credit. So to take out those lists that we've specifically curated, head down to the description below. Call it eight months. So 24 months, two years to get out of it. of debt. Two years of living at home, trying to make more money, you know, job shop, raises, stuff like that, working more hours, whatever it takes. And that could cut it down. But in this case, it would be 24 months, two years. Would you be okay with two years of this? Would you be

okay with two years of this? Him living at home, not spending a single cent on fund, two years. She says yes, she'll be in school anyways What do you think? Two years longer than what I thought But yeah What'd you think? I thought, well, I mean, I didn't Not too much longer

I thought like a year, year and a half Why? Well, I don't know I guess I thought I had I'd have a little bit more than 13 To put towards You gotta set money aside for taxes Yeah, no yeah

I wouldn't even think about that Don't add IRS debt on top of this Don't add wage garnishing on top of this What you could do? What did you say KBB is the car right now? No. 18, I believe.

No. Yeah, I would do this. I'd pay this off because whatever finance you do, it's going to get you to like, I don't know, $18,000. So, I mean, you'll save a bit, but if you like the car, pay it off. Okay. So two years, pay it off. And then what you're going to do from there, and this is before you can move out because let's put in, so replace your debt payments for potential rent.

Let's say what you need to survive is about $2,000. No, because now we're going to say about 3,200 because we're going to also have food and insurance and all the stuff. Well, then you have to pay off your uncle, right? Or stepdad? Yeah, well, yeah, that's the, I also, so I owe my mom money. How much? Sorry, yeah, I forgot about the people debt. How much?

So neither of them, I owe Chanel, and I owe my mom. You owe her money? Yes, yes. Unfortunately, it's terrible. I don't want to. How much do you owe her? 16. I owe my mom, 18.

16,000? 16,000. 100. I want to give them both two grand back, but neither of both of them are telling me whatever, you know, pay for everything else for us. 16 for her? How much for mom? 18, technically. How much for stepdad? 3.50 times eight. After the car is paid off after two years, you're not doing it until after two years. You're going to have conversations and hopefully they'll be okay with it. I assume she'll be okay with that. I assume mom will be okay with it. I'll assume mom will be okay with it. I'll have the conversation with stepdad. I'll have to figure that out. But hopefully it's okay with it. You should have an extra 1,900. dollars left on a monthly basis now it's going to take three to four months to pay back those debts no interest unless they really want you to do three to four debts so a year and four months or two years and four months to pay off all the debts now what i need you to do three thousand two

two hundred hours let's just call your month to survive on a low budget once you get a place save up no i i did that wrong i apologize i was looking at your income i was going to say that would be insane. So let's call it $1,700 to survive on a monthly basis on a lower budget. Okay. Cool. That makes much more sense. Let's just call it $10,000.

You'll have a $10,000 emergency fund. So after those debts are paid off of which you're not touching until you pay off the car, we're two years, four months in. Again, you have an additional $1,900 on a monthly basis. It's going to take another five months. Five months is. take up $10,000 just over five months. And it was just over three months and the last thing anyway.

So we'll just call this five months since we rounded up on the last one. Okay. So two years, nine months, two years, nine months until you can move out and you can have fun money again. Two years, nine months. You can make that quicker, probably about two years in total if you make a little bit more money. But this is with you sending money aside for taxes.

And I need you to do that. But two years, nine months is a long time. Yeah. We've talked about discipline. We've talked about how when it comes to smoking and stuff, like you're good for a bit and then you spiral. This you gave up because it was so bad a few times. So we start making progress.

We start making progress. Things get hard. I don't ain't. I do not think this is going to happen. I certainly don't want this to happen. Well, let's just say in the real world where things do happen, a breakup happen. happens. Okay, a breakup happens. That's emotionally very painful and losing a support system and a lot of things. There's a lot of things that can throw this off and head back into the spiral just like you do with weed,

spiral of going back into the debt or not continuing the payoff method because two years, nine months is a long time. It's a long time for things to fuck up. Yeah. You really, just be honest. Be honest with me. two years, nine months, do you think the discipline you have and the lack of it that you've shown can be maintained for two years, nine months? I mean, obviously, I can't tell you 100% certainty,

but, you know, I do think once I start to see this balances kind of go away and whenever I only got, you know, my car payment or whatever, I don't have a bunch of subscriptions, just taking money out my account. Like, I don't just got a bunch of different charges. I don't even know what's going on. Once I see and I kind of have more control over it, Because that's how it was before. Whenever I was doing good financially, I had control over everything.

I knew where all my money was going. And I was doing good with it. It was once the stuff started to go out of my control. It was like kind of too much for me to really know where every single cent was going. That's whenever I really stopped putting as much care as I should have been putting towards it. So you started taking out debt at 18, right? Yeah, yeah, I got my car. So this is going to take nine months longer.

nine months longer than you've even had debt. Yeah. To pay off. Since you've gotten debt, this is going to take at least nine months longer. You put any subscriptions in there still. Keep the chat GDP. Go out to eat here and there, get a door dash here and there. You stretch this because all it takes is just a few little things.

2.9 months in a strict life, you start to that to all of a sort of four, five, six years. Yeah. Four or five, six years. Your guys' futures too, way more. important than that as a partnership is a bond whatever expectations are there not not saying you guys want to get married but from the conversation it sounds like okay this is what's holding us back potentially yeah now you guys won't be able to combine finances until you get your figured out then i'm learning addiction side of thing man i don't know like i want to start i want to

put money in here for potential therapy if that will help like or whatever resources are available i want you to take advantage of and we add therapy and i'm good with adding therapy and do a budget it makes sense but that's going to start just like four and a half years Yeah. Or, well, like three and a half years. It's a struggle, but the mental health aspect is important to take care of at the same time, especially since you've added to these points where you can spiral and then you've just given up. So something I need you to take care of.

I don't know. So when it comes to the addiction side of things, what are your thoughts on that? Because that obviously takes out hundreds and hundreds and hundreds of dollars. And that's not even talking about the health aspect. So what are your thoughts on that and then going forward as well? Well, I mean, I want to completely stop. I've been wanting to completely stop. I just kind of, I don't know, needed some.

So me and her, she's from Argentina, and we're going to Argentina this Christmas time-ish. So I wanted to be able to, I wanted to not be on any sort of vapor come that time because I didn't want to be in Argentina. In November? December, December. Coming quick, man. Yeah. That's a. So what do you think is going to prevent you from the,

spiral is she called it that's happened multiple multiple times honestly the only thing i can think of is busy and myself with my finances trying to just throw in myself 100% of that because i mean before i started smoking and everything i mean the main reason i even did was because my head kind of goes quick my thoughts are kind of always running you know what i mean and nothing really slows it down nothing ever really did until i smoked for the first time and then i was like oh okay this is cool i'm not going a million miles a minute or whatever but obviously I have some I have a sort of addictive personality I get addicted to things easily so whenever it's becoming you know a hindrance more than it's helping me emotionally or whatever

it's not worth it so I got to stop I have an addictive personality so I know to avoid things that have that you know yeah have potential addictive tendencies to it in general so I mean that's smart to acknowledge and avoid certain things in the future as you're going forward as well Because, again, partnership and everything like that, she can't, you don't want to fall into other things as well. Yeah, no, yeah, yeah. So, okay, well, then, yeah, you just got to be really strong about it, man. Make sure you're taking advantage of help where it is,

whether it be community services or whether it be a therapist, anything like that, take advantage of the health insurance. You don't have health insurance. Are you on your parents? Think I still am, yeah, I think so. Yeah, through 26 or until 26. I don't remember. But, okay, so what would be, how many hours a week are you working right now?

So it's not, it's just nightly, that's what we get paid off of. I'm working four to five nights a week. Nights? Yeah. What are the hours? We get there at like 7, 7.30 and we leave around like 7 in the morning, more or less, 6.7. When are you guys seeing each other? You two.

I mean, throughout the day. It has been a little bit less lately because she's been busy with school and everything. And I've been trying to work on time and you're working at night. Yeah. I'm sorry to tell you guys this, but it matters for your future. But one thing you can do to cut this dramatically, that time from two years, nine months to like ambitiously, maybe even a year and a half, potentially. If you work, go work another job, man. There's industries that will bring people on and just work right now.

You'll be, you'll see each other less. You'll have less sleep. and I want you to like avoid sleep in a dangerous way. But, man, so you're working like 30, 40 hours a week right now, ish? Probably, yeah. Had an extra 20, 30. If you can stretch at 40 on that, I'm not saying you have to. Well, I definitely don't have an issue with the hours.

Yeah, I mean, whenever I first started working, I was working in Warehouse's like 60, 80 to 80 hours shifts for like two years. And that's whenever I stopped and gotten to sleep. Well, I'm saying is if you're willing to, you cut this overall process and everything by a year. by nine months, by a year and a half even, who knows, then you guys can get on with your future even more. And so whatever one you prioritize, a little comfort now, being able to see each other more and doing this in two years, nine months, okay.

Or get your guys' future moving full steam ahead by you just going crazy now and paying it off, then that's chill. So, I don't know. What are your thoughts on that? I mean, yeah, that sounds good. Like I said, which one? What do you mean, which one? Oh, the, the, I mean, the two years thing does sound okay.

Like, that's doable. Two years, nine months, basically three. Basically three years. Yeah, I mean, yeah. I can definitely pick up at least one more shift a week at the sleep clinic. So that's another 200, 200 bucks a week. Yeah, that'll help a lot. Yeah.

I mean, I used to do like DoorDash and stuff. Maybe I could do that, you know, whenever I get off, because I usually can't go to sleep for a couple hours. after I get off anyways. Maybe I could go and DoorDash, like the breakfast shift or whatever, try and make some. If it makes sense, I'm not sure what breakfast on DoorDash looks like. Yeah, I mean, I don't know either. If it makes sense, maybe wake up a little earlier and do dinner before you head in the time.

But either way, if that mathematically and economically makes sense, then I'm down with that. Yeah, definitely hustle and work. Have, now you need to have the conversation with the stepdad and the mom. Yeah. She's already here. She's hearing about this for the personal deaths. That's going to be. after the interest debts.

Yeah. You could, if you want it to, you could cut it. You could cut this down a little. It's going to be hard. It's not going to make up too much in the interest rate.

It's actually going to be a little higher. But you get rid of the car by selling it, barring what's in between, then barring what it takes to get a $5,000 to $10,000 car on a personal loan. Okay. You're going to save a few thousand dollars of having to pay off of the interest rate

is going to be higher. You're just going to attack it in the overall debt process, probably the last debt before the debt to people you know in your life. Right. That's one way you could go about it. I might shave a few months off of it. It's not going to be dramatic. What do you think about like a consolidation limit for the credit cards?

I'm just because I've thought about it, but I haven't done anything. No, I want you to, okay, potentially, potentially. But we've seen so many examples recently. I think limited amounts of people can do that. Okay. And you've just, you've gone over the credit limits, which is showing me you just have no control. So boom, okay, you consolidate.

them you have all of a sudden room to spend on the credit cards you'll just build those up again we've seen so many people do that on the show some people can do what you're talking about but that's very risky again if you're going to use a credit card I'd use something like the fizz card for you okay but other than that it's it's going to be a difficult long process and I hope you have the discipline to get through it I really hope so but do you have any final thoughts any final questions Not really. Just hope to be able to come back in six months a year or whatever and show you that I, you know, put my money where my mouth is.

Yeah, I think we said seven months to pay off all the cards before, maybe before the Mercury card. I don't remember, but whatever that first milestone is, let's get you to come back then and you should have done that. Okay. Okay. Let's do that for sure. All right.

For Jeff, you know, I really care about their first. future together where they want to get. So it's going to take some sacrifice to get there. It's hammer financial score spending in a budget. That's ridiculous. Zero out of ten debt. If you're borrowing from individuals in your life, I can't give you a higher than zero out of ten. Emergency fund, at least he started one out of ten retirement. At least he started, not much, one out of ten. In real estate, not a part of the conversation yet, zero to ten. To be generous, we'll give him a point five out of ten for his hammer financial score. And don't forget to check out the resources. Linked in the description below, they are what I use or would

use in specific situations. If you want to be in an episode of financial audit in your able to make it down to Austin, Texas, fill out the survey in the description below.