Financial Audit - Karen Wife Faces Financial Infidelity | Financial Audit

Episode Date: August 12, 2024

Go to https://meetfabric.com/CALEB and apply today, risk-free! That's right... Dirty Money is BACK, with new and old designs ;) https://shop.calebhammer.com/ only available through the end of this month ▶LIMITED TIME: 1) The best budgeting program online:https://calebhammer.com/budget 2) Get all the tools you need to reach financial freedom. My budgeting program + investing program bundle:https://calebhammer.com/bundle Any questions? Email [e-mail] ▶The best budgeting program online, at the most affordable price: https://go.calebhammer.com ▶Financial Audit Post Show, bonus Financial Audit, Member Streams, and Crewcast: https://www.youtube.com/channel/UCLe_q9axMaeTbjN0hy1Z9xA/join _______________________ ▶Resources I use/would use (with discounts/sign-up bonuses): 1) Checking & Savings: Get up to 4.60% APY, pay no account fees, and earn up to $250 when you sign up and set up direct deposits. Terms apply: https://creator.sofi.com/c/5535481/2068695/19219?adcampaignid=bank&adnetwork=brand *affiliate link 2) Get $20 from Acorns for free: sign up to get your bonus https://acorns.com/caleb 3) Click this link https://j.moomoo.com/Caleb to get up to 15 free stocks from moomoo U.S when you make a qualified deposit + earn 5.1% on uninvested cash + an additional 3% APY Coupon for 3 months for new users!! Terms & Conditions Apply 4.) CourseCareers: Land a high-paying job with no experience or degree by going through an affordable online course: https://coursecareers.com/a/calebhammer 5) The credit building debit card: First 100,000 people to sign up for Fizz with code: HAMMER10 get $10: https://www.joinfizz.com/caleb (paid ad) 6) Helium Mobile: save a ton on your phone bill, sign up and get 30 days of FREE trial when using promo code CALEB https://hellohelium.com/ 7) Online security: Protect your online privacy and security NOW and for free by following my link Aura: https://aura.com/hammer Learn more about your ad choices. Visit megaphone.fm/adchoices

How many discounts does USAA auto insurance offer? Too many to say here. Multi-vehicle discount. Safe driver discount. New vehicle discount. Storage discount. How many discounts will you stack up? Tap the banner or visit usa.com slash auto discounts. Restrictions apply. Lots of places can expose you to identity theft.

Oh, no. That's why LifeLock monitors hundreds of millions of data points a second for threats to your identity, which is way more than anyone can do on their own. If we find anything suspicious, like new loans are changed, to your financial accounts, we alert you right away, all through text, phone, email, or the LifeLock app. Get the alerts that could make all the difference. Save up to 40% your first year at LifeLock.com slash special offer. Terms apply. To watch episodes of Financial Audit a week earlier,

check us out on YouTube. We have nothing saved than we want to move into a different country and completely different life. Just because I feel like it at the moment, I guess. That's like a child. Right? Is it not? That's what it is. I guess you've been on the same financial age. loan that he took out without letting me know. Why? Why did you take it out without her knowing? She threw, why? I thought it was money that he got from his side job. Oh, no. Oh. Hello, my name is Valerie. I'm 48 years old. Hey, hello. My name is John. 46.

Gers, I live in Cyprus, Houston, Texas. And this is Financial Audit. Welcome over to Austin, guys. Thanks for coming. So, couples of audit. I haven't had one in a while. I'm very excited to get into this. Also, very excited about, listen to this thumb. This is some dense paper. This is a lot. So this is going to be interesting to go through. Let's establish a baseline. What do we do for a living? I am an apartment manager and I also do the accounting in my company for 15 properties. Okay, very cool. And what do you make? year about around 60,000. Okay, very good. And bonuses. That's why it's around 60,000.

Cool. And we might do some translation and stuff here. So how do you guys want to go about that? You just like lead me down that road. But what do you do for a living? Technique and AC. It's technician for air conditioning. Technique and AC for more than 20 years. And how much do you make? Around 40,000. 40. Okay, cool. Yeah. So we are. So we are. a 100,000-hour household. And I don't know if you need to know, but on the side, he does his AC work because in the daytime, he's a maintenance technician for apartments. Is that a different salary?

Different salary. There's no set salary on his side jobs because sometimes he'll make nothing and then sometimes he'll make a couple of dollars. So it's not included in that. And there's no consistency in terms of averages? No. Okay. Okay.

Well, we can consider that towards the end when we do the budget. So what's going on? What's going on? We're living on $100,000 a year, Houston, Texas area. What's going on? I have a lot of debt, a lot of credit cards, student loan, mine. I have three degrees. That's a chunky student loan.

Yes. I have three degrees. I have a master's, a bachelor's, and associates. In what? And the associates is in computer and electrical engineering. The Bachelors is in business technology and accounting, and the master's in is in business management and accounting. Okay. And is this what you wanted to do? Yeah, and that's the part that I enjoy doing in my job more than the apartment manager part, the accounting part for the rest of the properties.

That's why they gave me that chunk. Coming's a great career path. I mean, I gift certifications due course careers. for accounting to guests all the time that come on here. The reason, the only reason I don't focus on it is because I've noticed that when I tried to do it, the starting wage is I can make more doing other stuff. Well, sure. I mean, yeah. So that's why.

Well, in our mid-40s, mid-to-upper 40s, heading into our 50s soon, why aren't we in so much debt if, you know, I mean, you're making above the median household income in the Houston, Texas area. What are we doing? I mean, why is this, why is it so thick? Why is this so thick? The credit cards and the things that we have to buy and, uh, or,

you have to buy that we decided on buying, I guess would be a better answer, but, uh, over the course of when? Since the last, maybe eight years since, since I, uh, we got together. Oh, we got together eight years ago? About, yeah. Okay. Are there any kids? Uh, two.

Together, no, but he has two that live in Chile. My country. And then I have two, but only one. My 13-year-old lives with me. And my daughter, that's 29. She just... Okay, so one kid in the house. One kid in the house.

Only one. The other one is coming tomorrow. She's moving from California to Houston tomorrow. The 29? Mm-hmm. With two children. Okay, why is she moving in? Financial issues in California and getting away from a bad situation.

Bad situation, definitely get. The financial issues is that. going to help because I don't think you guys are in a good financial position. No, she has saved money and she can get a job. Like she's not depending on me coming here at all, at all. Is she moving in? No, she's going to be moving into an apartment. Oh, so it's a temporary.

She's like stopping by. Stop and by until, yeah, until the moving truck gets to her place, which will be a few days. Okay. So in general, let's see what hit the account. we had total payroll in for you I think 6,038, then you had Zellin

I think with the part-time jobs and everything 5,500 AD1 so that's across the board the payrolls and the Zells are all the Zells through work or are there anything else? I want to make sure we're establishing what is normal.

The Zells are his side jobs. Okay, so that is actual income. Yes. Are you setting money aside for taxes? No, we do not. Why? Usually by the end of the year, after all the deductions, we don't normally owe. The only reason we owed this last year is because of the medical, because we did something we weren't supposed to.

We applied for the Texas medical stuff. And I gave them a hundred thousand hours a year. Yeah, I gave him a smaller income because we were making a smaller income in the beginning. I just never went to go change it. And then I kept using the service. and then when I filed, obviously, they saw our end income, and then that's why we owe. But normally we do not owe. Okay.

That's the only reason. Like, if I knew that we owed. It's still safe to at least put a little bit aside. Well, that's why I want a savings account, but that's why. You don't have a savings account. Do we have retirement? Do we have anything by our 50s? No, no, nothing. That's why I'm like frustrated.

What's our plan for retirement? You guys aren't terribly far off. I know. that's why we want to start saving. But our plan is to move to Chile because it's way more like even... You want to move to Chile? Yeah, when we were retired. Okay, how much do you guys need in your nest egg to move to Chile?

Oh, yeah. Give me a yearly income that you guys want to live on in Chile. Probably for leaving Chile you need 1,500 for months. It's really good. Like a median 1,500, but I'd be happier with more as a monthly income over there. But to like move over there, we would need to save like, 25,000 or 30 so that we can get a property. So like we can get a house.

But you need more than that. You need supplemental income. Yeah. Or you're not working there? According to what he says, that I can get a job very easily because I'm bilingual. I mean, probably,

but she's not going to make as much. I mean, if the median of what you need to survive is $1,500, the median pay is going to be associated with the median cost of living. We're also counting on social security, I guess. So, yeah, those eyes. Okay. Yeah, that's what we're counting on. A lot of accounting

and also $174,000 in debt. That's why we need help. Oh, okay. Okay. So, I mean, that seems to be everyone's immediate statement to when they get called out or anything, and that's why I need help. Like, I can't. Yeah, well, I mean, I'll see. I know that

our problem is that we overshop and we like top technology and all that stuff. That's why, are credit cards you gotta stop doing all that's bad for you well that's why i need help okay like i like come on okay 11,500 came in a little less comes in on average that's what came in through the side jobs because it was an okay month for side jobs looks like how much do you think went out what was spent across everything on all debts on everything what was spent what do we think this what do you think what do you think was spent yeah this past where i have all the statements uh probably the whole amount because I ended up having nothing in my account.

Number, how much? The same. The same that came in? Yeah. Exactly the same. So we think 11,000 came in, 11,000 out? Yeah, and then, yeah. Okay, 13,000.

We spent 13,000? Spent 13,000. Okay, that's, okay, that makes sense. We don't budget. No, I don't budget. Are you guys even on the same financial page? No, well, what I do is... We both finally go to Chile, so we have that goal together.

But do we have, do we even know what's happening in the house financially? He doesn't together almost a decade. No, I know. He doesn't do anything of the finances. He doesn't look at it. He just gives me the money. And I make sure that all the bills are paid and everything is to be the rents paid. Yeah, but that's not enough.

That's the basic minimum requirements for life. We're not getting anywhere. Okay. So is you being the person taking care of bills? Is that what's helping us? Is that what's, what do you mean? Is that what's helping? No, it's not how.

I mean, right now it's. It's because I, after I pay the bills and everything, if there's a little bit left, we go out to eat or we go and buy something. So that's what I know our faults are. Why aren't you involved in the finances? We can translate it, but why are you not? Why? The reason is a lot money and... Why not you do you, like,

join and pay the reason is for the money? Okay, sorry. My money, whatever money in Maya Kohn, Vivian is, I'll say, um. Yes, but why you do that's his question. I don't know. He doesn't know why he allows it to happen. He's just trying to explain to you that.

Why are you okay with it? Why don't you want him to be involved in the finances? Oh, I, I don't allow him. Well, not that I don't allow him, but every time he gets his check, there's the Bank of America account. That's the one that we are combined. And that's where his direct deposit goes. And every time, when he gets his direct deposit from work, if I do not remove that money right away, it disappears within two days. And when I ask him, what did you spend it on?

He doesn't know. How do you not know? He doesn't remember or he doesn't know. But that's a lot. You can't not remember two days. Yeah, I mean, I can remember today. See what's on the account. So where does it go?

It sometimes goes to either he sends it to his kids or he gets gasoline or he buys or like buys parts for his side jobs and then, yeah, things like that. Chili. Chili is the plan. How do we get to Chile? How do we do any of this if we're not on the same page financially understanding where our goals are and what's required to hit to our goals by a certain time period? Okay. Yeah. that's

we know that. So there's no plan. There is no plan. If you know that, why haven't you done anything about it? This is my first step in doing something about it.

That's not an answer. Again, just like the I need help thing, that's not an answer. Why have you not done anything about it was the question? Not what are you doing right here this one second?

Well, I told you that we enjoy doing, like going out and going places and like the last month alone, we went on two trips. Well, I went on two trips. He went with one of them. So your reason why is because you want

to experience pleasure. now instead of deferred gratification in the future? That could be a real, yeah, I guess so. That was kind of your answer, was it not? Yeah, because we want to enjoy the, at the moment, yeah. Okay. And then we also have the philosophy that we don't want to wait to like travel until we're old, old, like when we can't even walk.

Right now we can enjoy and walk and do things. So this is when we want to do the travel. But I do try to budget. I don't know. I mean, when it comes to traveling. Like cheaper. than most people would go and travel. Why are you a laundry trouble right now?

You have $174,000 in debt, and we're only a decade away from being able to take out of our tax advantage to accounts for retirement penalty-free. We have nothing saved and we want to move into a different country and live a completely different life. Why are we allowed? Yeah. Just because I feel like it at the moment, I guess.

Not a great answer, but that's what it is. No, that's like a child answer, right? Is it not? That's what it is. Yeah, we want to be here. So what's different? Huh? What's different?

Why is that going to change in the future? The conversation is great. But why? Why is it different in the future? Because we really want to move to Chile and we really want to have enough money to buy a property. That's it. Do we want that more than doing what we're doing now? Because that's all that matters in the end.

Yeah. Well, I'm thinking if we can, I think we can handle it for a year or two of, longer, I don't know. It's $174,000 debt. Okay, well, that's the, the big chunk is the school. So, I mean, that... Which is money you owe. I know, but...

Well, did that negate it? Did that negate that you owe it? Because it's a chunk of money for school? No, but they always have programs to help not pay... And what programs are you taking advantage of? The debt to income. I forgot what they call it. The income-based repayment?

Yeah, that. You're at $100,000. I know that. Have you reported the correct income? No, because you... No, I tell them what I make and everything. You guys file together? Yes.

Gosh, but people like, you're not the one who needs help, though. You're just spending wrong. That doesn't make sense. I don't want to get political. No, but the thing is I tried to, what I need help with is paying down these credit cards because. Yes. I know that. Yeah, that's what I.

But were your choices to get into it, though. You still got into it actively. Okay, looking at these documents, I'm not mistaken. This is a document I'm missing, is there not? The, uh, the one loan that he took out without letting me know. Yeah, that one, it's, uh, it's, uh, something, yeah, it's a loan that he took out because. What are we doing? When?

Oh, two years ago. One and a half. One and a half. Why? Why did you take it out without her knowing? She's your wife. He tried to help because that month. Oh, no.

Yeah. Yeah. That month we were very like, we were struggling. and I was trying to figure out ways to, you know, pay, and he came and brought money. And I thought it was money that he got from his side job. And this moment is not regular job. Yeah, he didn't have like a regular job at the time.

Now it's regular job. It's every 15 days. I got annoyed because he doesn't even know the interest on it. I heard you guys wanted to get dirty again. Dirty money is bad. and this time you're gonna be a lady in the streets and a freak in the sheets. And you know who you usually meet in those sheets? I'm personally into BBWs, budgeting, bonds, wealth.

And this sexy merch is only available through the end of this month, and then it's going away. So to give you a little extra sweet treat, we're bringing back the classic dirty money as well. BDSM, sluts for index funds, finance daddy. If this isn't for you, you can eat my assets because I am myself in assets, man. Go to Calebhammer.com slash dirty to check it out before these designs go away at the end of this month. And as an extra special sweet treat, every order over $100 gets your favorite asset signed and framed the hammer dump truck. And the only way to... Are you paying on it?

Yeah, he is. He is. It's an auto... It's out of his account. It's out of his account. Yeah. Because my check goes to a different account, to the Chase account. Do you know, like, what's owed on it?

Yeah, he gets a text every month. I think what's left is 600 and something. Yeah, now it's like $600,000, but he only pays $54 a month. How much was borrowed? How much they're borrowed? $2,000. $2,000. So a year and a half ago, we were struggling to make bills.

So we borrowed $2,000. But now you guys make $100,000 a year. Why the fuck is it not paid off? Because after paying even just the minimums on those things, I mean, I usually pay a little tiny more. There's nothing left. Should we prove that? Is that going to be the case, mathematically in the end? Yeah, because after that, because the thing that I spend a lot of money on, too, is groceries

because I cook at home, but I don't cook basic stuff, I guess. Because usually when I get every day that I go to the grocery store, it's like $100, $98 just for it to make dinner. and we'll see at the end. I mean, what do you spend a month on groceries? A lot. How much? I've never checked it out, but I know. So we're not budgeted.

No, I mean, I told you I'm not. I just, I have a list of what I need to pay, like the, the cards and the, I'm asking groceries. Oh, no, I have never. More than $1,000 on groceries for three people. Probably, yeah. Okay, you're doing it wrong then. If we're trying to get out of debt, we meal prep, we meal prep.

We sacrifice. We're not having luxurious meals every night. We meal prep. We meal prep. We meal prep. Yeah, that I need to work on. Yeah, you guys could do the $700. Easy for the three of you.

Take our budgeting program, go through it together. I'm sorry. We only have an English option. I do apologize for that. No, no, no. I would be the one looking at it anyways. Well, no, no, he needs to learn too. If we cannot do this, guys, we're not going to get there if we don't get there together.

You guys are married. We're almost spending the income down the middle. if he has the money and you don't take it from him, he sends it wherever and he doesn't know and he takes out loans. If we're not doing this together, if we don't have the same objective, if we don't know what they are and what's required to get there, and we're not budging together,

this is just going to be a mess. We're not going to get there. You take the budgeting program. There's a meal prep thing in there. You can tweak it to your needs, but take it. I highly recommend it for anyone. Okay.

So you get that for free for being here. And you also get our investing program for free for being here. Okay. Okay. You guys get $300 from Moomoo as well with that to invest, which is really cool. So, okay. Let's let's dive into these documents because this is going to be, it's going to be a journey. Okay.

Journey, an absolute journey. Where do you guys think you are on your financial scale? Zero to ten. Where do we think we are? Zero being the worst finances ever, 10 being the best finances ever. As a household, where do we think we are? I think we're at the worst. Zero?

Yeah. What do you think? The same. Okay. If you want your Hammer Financial score, it's free. Link in the description below. If you have an interesting financial situation, interesting topics, anything at all or opinion, you want challenge, and you want to sit right where they're sitting in your brave like these two awesome people.

Feel free to come on the show, Calebhammer.com slash apply. All right. Amazon business prime card. Is this your business? Yeah, it's a, our, the business is Sol Klima, yes. Huh? This is the name, the company.

It's the name of it. It just means sun climate, but in Spanish. But yeah, we are, the American Express card, that is a business card. I don't use it the American Express.

We don't use it? We do use it. Not too much for me. Nothing. It was using it. We were, one of our other problems is we make... You guys are not united. No, no, no. Our other

is that we use the business and the personal interchangeable. Like we, I know we're not supposed to. Are you an LLC? Yes. Okay, so it's more just a pastor. That's going to make it so much harder in the end though. It's an account and then know what

we actually have to pay in taxes. Okay. Yeah, because no. It's used. $162 was all that was put towards it. $313 was purchased, even though there's $66,035 of interest accruing, why are we possibly purchasing on a card that is accruing interest that we can't possibly pay out? How is that benefiting us in any way whatsoever? Why are we doing this? Why? I don't have an answer because I don't even remember

the last thing I purchased on it. But why swipe this card? Because at the moment I don't have anything in my account and then I go for the card that does have something. But guys, it was fireworks and two Amazon's purchases. Oh, the fireworks. If you don't have money in your account, we're not getting things to blow up. It's not a necessity for life. That was me. That was 100% me.

I did it for my son. For me, this is too much money for nothing. It is what it is. Yeah, I was just try to make my son happy. That was me. Yeah, he didn't have anything to do with it. So why on this card? because it was the one that had some credit on it, that's all.

So your goal's a lie. You don't care about your goal. You'd rather blow things up. I don't touch it, but yeah, no, I don't. Like, it's not a lie. I just. It's not a goal then. It's a pipe dream.

No, we do want to go. Yeah, want. We will go. It's a dream. It's a pipe dream. And instead, you're blowing up pipe bomb. We will go. We will go.

How? When you help us. That's not how this works. That's not how this works. I'm not paying off your debt. I'm not flying you there. I'm going through the situation and I'll give a preliminary budget and I'll connect you with tools and I'll do the wake-up call and I'll give my thoughts and my what I would do personally. That's how I answer this.

I don't fix your situation. Your situation is through your actions. I am not a magic pill. I'm not. I know. I know. This changes nothing if you don't change anything. And right now, what you do, what your life is, is going and blowing it up, blowing up your finances instead of actually doing what is required to get to your goals.

You're saying that this is more important than your goals through your actions. Okay. This year so far, $439.95 in interest. On one card. One card. And we have many to go through. Home Depot. Yep.

The Home Depot, the last thing we bought was the generator in May after the hurricane. $518. That's a valid purchase. I do get that. I hate that. It's not a credit card. I do understand an emergency situation when we don't have an emergency fund. I do get that.

But then we do everything in our power to pay it off as cook because we can. Yes. And that card has no interest when we purchased through Home Depot. For how long? It's going to be 18 months. Not the entire balance, just that purchase, right? That purchase and then there was... Or is that the...

Wait, one second. Yeah, because one ends... Okay. Okay, so this one, this $625 balance... Oh, that was the transaction date. Okay, let me see when the promotion ends. Oh, 2025.

Okay, you go on you. Well, okay, here comes $518. that's owed by February 12th next year, and then June 12th is $626. Okay. And honestly, at this rate, you guys will be paying interest. Is it deferred interest? Oh, and then there is interest being, there's interest charge. There's interest charge because you have a revolving balance.

And that sits at 161. So it's not completely interest free. It's the big purchases that you get from. people. I know. But you're going to be paying interest anyway because you're not paying us off before then. That's not what your actions indicate. You're adding more to your debts. And you spent $1,500 more than we brought in on a good month. A good income month. So what's the plan of this then? What was the plan? I assume the plan was to pay it off early, but. Yeah. I mean, what I try to do is I see the total owed and I don't go by their minimum payment. I try to always do a little bit more

so that I make sure that it gets paid before the day. Did you do the math? Or are you just doing a little bit more? I haven't done it yet because I knew I had time, but I will. Yeah, I normally do the math. $29 minimum fee payment. Yeah, I definitely don't. $1,37 a zone.

Yeah. There is interest on the smaller balance and then there's two deferred once ending in just a few months. I usually make a payment with Home Depot at minimum $100, if not $150. With what's happening, I have to ask you. Do you want just one person, one person, your wife, to be managing the household finances without your input based on what we're talking about so far.

Now, I'm not villainizing you, but in general, I want to know your stance in what you think about that because she's controlling your entire financial future right now because you're not inputting yourself. It's not like she's aggressively doing it or stealing it. You're just not participating. Yeah, I know.

Now the big problem and see the problem is a lot. Oh, shit. Give me in Spanish. No, no, no, no. No, no, it's fine. Every time it's one box in my house, the Amazon. It's for me, for whatever. No need this.

He's saying I buy too much crap on Amazon and there's always a box at the front of the door. And he feels like it's not needed, but he doesn't really argue with me or anything. Why? Why? Why? Why? No. I'm trying the more gentleman person with my wife.

Yeah. He doesn't want to fight with me. I know no need five. I get that. No fight. Well, there are differences between doing nothing and being complicit and fighting. There are conversations that can be had. And if everything turns into a fight, then we need to go to

council. No, we don't. We don't fight. No, never fine. Well, there we go. But we can have conversations. If you don't stick up for, if you don't stick up for your financial security as a couple here, when you see that things are being mismanaged, you're just as complicit. It's just as much your fault if you do not stick up. Yeah, probably.

It's my phone. That is to talk with me. Yeah, probably it's my fault. I need to speak more than exactly this. situation. Okay. But now it's no money, no save money.

Mm-hmm. No money in my account. It's terrible. Oh, yeah. And when we'll get to those accounts. Quick silver card. $1,5003 and $22 with a $56 minimum payment. My, we're purchasing again. The, how much is due on there?

$1,5003. I think that's his because we have three capital one cards. Are you guys authorized users on your different accounts? Yeah, my yes. I am, yeah, I'm both. But we don't use, we're authorized users, but he uses his and then I have my two. I know, but we're just, yeah. You guys are essentially together.

Yeah. $41 of interest, $68 of purchases. All right. Okay, I doubt this was gas, $5.19. That's usually like going in the store. storing getting some crap. Water? Water?

Get water from the store. Guys, get bottles of water or a big old jug. Get a nice thing. And use this. And use this. We do use them. Then have water refills at home that we can put in the trunk. This is just too expensive.

Guys, we're adding it to our dad's here. And Buckees, who knows? You never know. You're getting barbecue. You're getting Beaver nuggets or you're getting gas. I don't know. Other problem, the big problem in house, the kid in house. I'm sorry.

The kid and uses the water, the water water, half the water, probably in the room. I see it's probably a short. Yeah, he thinks my son waste bottle water and that his room is like a graveyard of bottled water. Do not allow them to have bottled water. You're the parents. And it's half. Sometimes it's half. All of them.

And you're the parents, tell them they can't have bottled water anymore. It's like, hey, what? They're not, they don't own you. And speak the same problem for long time. He's been complaining about the same problem. Ban him from bottled waters. Why? Why not? Why has nothing been done? What? I don't know. I guess because in my mind it's like a whole case is only what, three something or whatever. And you don't know money. So, okay. Yeah, every penny counts. I get.

Yeah. But that's not what was my thinking. while it was happening. Okay. That's a 30% interest. Oh my. Okay. Other quicks over. Yeah, there's three total.

Right. So these are mine. Okay, so the other two are yours? Yeah. This one's at $2,559. This is debt, guys. This is insane. Minimony monthly payments are stacking.

$78 minimum amount of payment. More purchases! We're going to lose my fucking mine more purchases. This is insane. And it's more than you. even paid towards it. $152 of purchases in 91 cents. $50 of interest and two cents. What do we get? Oh, what is this? What is it? Bistrology Myanmar. Oh, that's when we went on our little mini trip to Florida this last month. And that's, that's what we had for breakfast.

How can we justify trips? How can we justify trips in any way whatsoever? You have no money. You're not surviving. You can't even pay your bills. Well, okay. The way we justified it is because we, the The hotel was free and we drove over there. So all we paid was food the whole weekend. Okay, so money you didn't have. Yes. Yes. But we paid food.

That's a good way to justify spending money you don't have. Any more trips coming up? No, not recent. No. Not soon. Does that mean there's... Well, we have a pending one to Cancun, but it's something that's being... Yeah, it's...

When? We don't have it scheduled. We don't. we don't have it scheduled so but we has anything been purchased for it uh the the 390 has been reserved for it so how uh because reserved how spent no it's like one of those timeshare things that you did okay that so we got a free trip but plane paid hotel paid what do you mean you're in a time share your hotel wasn't paid no no no no you're paying for your time share no no no no we didn't like for listening to the time share that was the reward

It's not... You haven't signed a timeshare. Not there. You have a timeshare? Kind of. What is kind of? How do we kind of have a time share? Yeah, we have a time share.

So it's a monthly thing. But that wasn't part of it. That was a total separate thing. Do you know your maintenance fees in this time share? It's not that kind. It's something that's just a six-year thing. And it's like a $178 a month. Oh.

Oh, you'll see. see it. It's one of the cards. It's a card? It's a, it's put on a card, yes. Oh. Okay. We've just made every choice possible, haven't we? Mm-hmm.

And Walmart? Is Walmart usually groceries or what? It's, yeah, usually always groceries. Okay, that was also spent on there. No, no, no, no, no, it, a TV. H-EV, yeah, but the groceries on there. It was, it was. Yeah.

Okay. Best buy. That was a... Interest charge. What the fuck? Back interest. I had to offend. Because no way,

$432 of interest just hit. So we didn't pay off the card by the time we needed to. Which means now I have no faith that the Home Depot card will be paid off. I don't... Okay. What? What? No, no.

Oh, that's the interest rates hundreds of percent. There shouldn't be any... Okay. Well, I have to. look at it. I will let you look at it right now. No, I mean, I have to see the details of the things because I interest charge. Yes, because there was no interest for 18 months.

We did nothing. I always paid it every month. All you didn't pay it off, which means your back interest that was accumulating while it did it, which wouldn't have hit you if you paid it off by the time it was owed by the the time that ended has now come back with a whopping $429.27. You didn't even know this. You're an accountant. Just a reminder.

Sometimes we've got to account our own finances, at least once a month. Okay. It went from $1,886 to $2,244 without spending a penny. Yeah, we did spend like $700 we shouldn't have. not in this statement so great more on top of that that's wonderful before that because we did it

a while ago buddy I don't care about that I do I do all that matters to me is you had back interest accruing and this is the first time

this has happened on the show I think we've had people with these kind of debts but we haven't seen it when it hits you had that back interest accruing that you would not have to pay if you were mature enough to pay

Pay it off on time. You were able to look at like our documents at all. If we were able to do any kind of personal accounting, but you didn't. Now you're facing the consequences, which is why I don't believe for a single second that Home Depot card will be paid off before it starts to increase interest. Luckily, it doesn't look like back interest accrues on that one.

Not 100% sure, but that's what it looks like. Okay. We have no reaction to this. Well, I didn't know it was there, so I don't have a reaction to it. So I have to. Okay, you're not credit card. People never open up a credit card again.

Close all your credit cards. It doesn't matter. It's not like you're taking advantage of the American credit system to buy a house in Chile anyway. So you guys don't need credit. You don't need credit, do you? Do you need credit? For times when we don't have money. Okay, no, that's why I get you to an emergency fund through a plan.

We no longer take advantage. We don't take advantage. We don't take out credit for emergencies anymore. I mean, your emergency was buying fireworks. by the way. That was your memory. It was just something I wanted to do for my son. So it's even worse.

Okay. Yes. And I get that, but also there's free fireworks shows everywhere. No, he wanted to blow them off himself. Okay. That's great. So you blow up your finances to satisfy that goal. It's going to be really great when he's going to be forced to take care of you guys.

Because you don't have any sense saved up ever for retirement and you're still paying on debt. in retirement and all the fun, all the fun money that you guys spent to, you know, spoil with fireworks and stuff like that, it's going to come back to bite him because he's going to want to live his own life and mom and dad are going to come back and they're going to be like, uh-oh, we've fucked up. Please help us because I don't want to die under a bridge. And they're going to feel obviously morally responsible too because they're your parents and no one's ever going to let their parents die under a bridge. I don't think that's going to happen, but okay.

Why? I just don't think that's going to happen. That's a good reason. I mean, I wouldn't let him take care of me. I mean, I don't think it's going to happen. No, no, no. It's not about let. Like, he will be obligated to morally in his core.

It's not about you asking. No one lets their parents, unless their parents is their piece of shit, obviously. No one lets their parents suffer in retirement. I think we will fix this before we get to that point. How? By slowly real. What I need to do to fix it? That's not an action.

What? That's, what, what? That's, no, no, no. How about you? So you don't even know yet what you need to do? No, I do know. I'm not going to be overspending. I'm not going to be spending on things I don't need.

What other answer is there? That is the answer. That's what I need to do. Literally any plan that isn't just like, I mean, I don't know. That's a good basic, like, starting point. But that just doesn't give me hope. I'm sorry. I'm sorry.

I'm sorry. Okay. Kia Forte. Who is the Forte? La Forte. La Forte. Okie docks. We have,

oh, these minimum monthly payment, guys. Guys, these minimum payments are insane. I didn't write that on the Best Buy one. It was 50. Okay. Minimum monthly payment, or the forte is total load, total balance. Oh, whoa.

Kill me. Okay. 19,738. 99 cents. We'll just keep going up. We just keep going up. $461.61.0.0.48. Yay.

Joy, joy. 19% interest rate? 19% interest rate? That's what they, yeah, that's what they gave him. So you don't do it? I know. That's so much easier to set than done. But like, how much shopping around did we do?

Why did we have to get a car this expensive? What were we doing in general? I don't go with him when he got the car. So you just got it without even talking to the wife? You got a whole car tens of thousands of hours without a conversation with the life. I mean, I knew he wanted a car, but he went and got that one. How did you not have a conversation? I'm called on my wife.

So he called you. He said that he found a car and all that. Yeah, but yeah, I was, I just wasn't there. But he talked to you about it. He said, he, he had to be physically there to get information in 2024. Yeah, I mean, I vaguely remember the conversation, but I honestly didn't think he was going to sign and bring the car. That's all. But he did.

Okay. He felt he can do those payments on a monthly basis without any issues. That's what starts people. They see the monthly payment and you likely extend. the term to as large as you could almost in order to afford it. And you see this one minimum monthly payment. You're like, I can squeeze that in. Then you see the next one.

I can squeeze that in. The next one, I can squeeze that in. Right now we're, we're, we're, we're, happening this pile and we have one, two, three, four, five, six minimum monthly payment so far. Plus, we already know about a timeshare minimum monthly payment as well. Plus, we already know about your secret loan minimum monthly payment as well, which I have not put on here. So they just keep stacking.

They just keep stacking. They seem like I can afford this one. I can afford this one. They stack and stack until you can't afford a single thing in life. Yeah. You owe 19,738. What do you think it's worth? What do you think you could sell it for today?

$22,000, probably. $11,000. Okay. So he owes more on it than what it's worth. Yeah. Okay. By a substantial amount. I'm out. Probably not. Oh, the math doesn't even work to trade it and get a personal and get a

$10,000 in a car pay the difference. That's just going to have to be a we're paying it off until we're paying off. That interest rate's insane. I haven't seen a bad car interest rate loan in a second. You guys are just bringing it all. You've really brought me all the highlights. I brought them all because I didn't want to hide anything so that it can all be there. I do appreciate that, but I just like, it's interesting because people come in and they have this one other bad thing. And that's like what the episode focuses on. And then someone else is one really bad thing. You guys like collected the infinity stones of all the bad things that the rest of the guests do.

And then you sit right here. At least you guys aren't blowing all money on like some of them, right? No. No, no, no, no, no, no, no, no cheating and having kids. No, we don't even go by alcohol. We don't do any of that. Okay. So you guys didn't do that.

We do have the mystery loan. No. We like to just go out and eat and travel if we can. That's our vice. Mine too. Look at this. I can shake my titties and I'm a man. You're not supposed to do that.

Care credit is, that was for a dentist, but it's the medical card. So no interest for 18 months, but that's... Well, we know how you guys do with no interest. That one that I always... I've had balances on that one. before but it's all medical stuff okay is this how i'm going no no i haven't used that card in a while but then i had to do a a dental thing like a few weeks ago so and is that this that's that yeah there's 550 yeah okay well you had fees 30 this year so far promotional balance this is deferred

this is the third interest deferred interest is already starting to accrue so you must pay this off by by the end of the year not a problem yep Five months to pay this off. Okay, $500, five months. What's my calculator? It's buried under a pile of debt. $100 a month. Who would have thought 500 divided up a five was 100?

How much is? I have to pay $100 dollars a month for not pay the interest grand. Okay. Grande. Yeah. That's my second card. Quick silver number three.

Two thousand and nine hundred and six. Mm-hmm. $2,926.34. It's an $80 minimum monthly payment. No purchases. Thank you. After everything, we made it. We're not purchasing.

Okay. Wonderful. Still accruing $46 of interest, but no purchasing. The balance is high. The minimum monthly payment is continuing to stack in our never-ending path towards minimum monthly payment. Payment Supremacy. Okay.

This is another car. Capital One. That's my car. We have a pathfinder. That's fine. Okay. This one's yours. Here we have a...

Okay, your principal balance is a fourth of what his is. Have you had this for a while? No, I just bought an older car. Thank you. See, we can do it. We can do it. You should have got an older car. It's too late.

$5,758 is owed. $384 minimum wage. You guys are so lucky your household incomes 100,000 hours a year, if not more because of the extra side business. 17% interest rate, though, 17%. Did we shop around? Did we apply for different ones? Did we go to our credit union?

Did we get anything? It's just, I know the higher interest is because my credit isn't back. What is your credit? 700 and something? No, not anymore. No one? It's 620 something, 640. I think you've got to get closer to like 12%.

if we shopped around a bit maybe maybe not that's what I ended up with well yeah okay and yeah and it was the kind of the car that I wanted and it's oh yeah

what's it worth I don't know probably not that much it's a 2003 Pathfinder Oh what do you think it's worth maybe 3,000 pretty good

3,000 Okay. So you are underwater on it somehow. You know, all that, you know, at a 17% interest rate. Underwater it is 17% right. I try to make at least $400. The payment there that you see, that's what I make every month. A little tiny bit over.

I don't know if it makes a difference. So I'm curious about that. I'm curious about that. Wow. What's the curious? Noah says we have cookies and asking if you want cookies. I'm confused, but I want cookies. He also says if you want a gold star.

Parents, quick reality check. What's more important than protecting your family? Probably nothing, right? And that's why I'm excited to share our sponsor, Fabric by Gerber Life. Fabric is made by parents for parents, and it's all about having a plan in place to protect your loved's financial future in case the unexpected happens. Fabric has flexible policies that fit your family and your budget.

You could snag a million dollars in coverage for less than a Takedo. That's right, you can get high-quality term life insurance for less than $1 a day. And if you've got kids, and especially if you're young and healthy, the time to lock in low rates is now. Even if you have life insurance through your employer, it may not offer enough protection for your family and it may not follow you if you leave your job. And the best part about Fabric, you can apply completely. online in under 10 minutes. No need for awkward meetings or endless paperwork. Plus, you can even get covered instantly without a health exam. Fabric is here to help you

rest a little easier knowing that your family is protected. You and your family deserve that. Fabric is partnered with Gerber Life and policies are issued by Western Southern Life Assurance Company and named trusted for over a whole century. With over 1900 five-star reviews on Trust Pilot and an excellent rating, you know you're in good hands. And it's not just life insurance. They offer free online wills and investment tools for your kids' future. It's a tricky financial world out there and Fabric wants to make it as easy as possible for you. So what are you waiting for? Head to meetfabric.com slash Caleb and join the thousands of parents who trust Fabric to protect their family. That's meetfabric.com slash Caleb and thanks to Fabric

for sponsoring this video. Wait, what did you do? What did you do? What did you tell? What did you tell me? He's trying to, he's trying to be a butt to you. I tell you. I tell you, I, I tell you, I, I, I, I try to make an extra $20. I don't know if it really makes a big difference. He wants a gold star for that. You can fight him in the post show. He's going to come out here and you can just go, go, go, go, go. Well, now he wants to cut it, so never mind.

I was trying to tease the post show. Okay. Yeah, I don't know if it makes a grand difference, but I try to make a little extra $20 principal payment every month. Yeah, I mean, okay, so you've brought that up. You brought it up for a couple cards. Okay. So what is our strategy there?

I'm genuinely curious. I would love to know what you think we're doing when we put just an extra couple dollars towards all our debts across the board. It lowers the amount of time or the amount of interest you pay because it lowers the amount of time that it's stretched out.

You're attacking the principal amounts. So less is a career interest. Yeah. So typically in the debt payoff journey, we usually talk about avalanche or snowball have you heard of those not when it comes to finance but what does that mean okay so snowball so you've watched the show haven't you yeah yeah i just probably just didn't focus on that term okay but i mean i can get the general idea of snowball and avalanche yeah yeah snowball you're paying off your smallest balance at a time whatever's the smallest that's the one

your pain then your minimum monthly payments is going towards everything else the reason you're doing that is because one, you get a quick reward in your brain that you're making progress. Could you pay you off your $500,000 debt? And also the minimum monthly payment that would have gone towards that is now rolled until your leftover money that starts going to the next debt. And all of a sudden we have more and more and more and more and more leftover money that's going into the next debt. That's a snowball method.

Avalanche method, which technically pays off debt quicker with less money over time being put towards it, is paying off your highest interest rate to the lowest interest rate, no matter what the balance is on the card while doing your minimum fee payment on everything else. And the reason we're doing that is because obviously if something, something's accruing 40% inches or something occurring 2% inches. You're paying off the one that's accruing a bunch of inches first. That one gets you there quicker. Psychologically, people have more success, at least in this environment,

with the snowball method because you see those wins a little quicker, which encourages you to keep going. But if you're really disciplined, which then avalanches, typically the best. Financially, mathematically speaking. But we don't even talk about money, so I don't even want that to be considered in your guys' picture. Okay. So it's typically not an advised debt payoff strategy to put an extra $5 towards all our debt across the board. Because we're really not making momentum anywhere and not paying off a high interest rate card quicker.

Usually I would do like an extra 50 or more. Like on the credit cards, I don't know if it's just an example. We're not really, we're not making progress on a small debt to get rid of extra minimum monthly payments to put towards something else. We're also not making progress, substantial progress towards the death that has higher interest. So we're not making any substantial progress. So we do it that way. So you're saying it's better to take all those little extras and just do it towards one for now. Yes, absolutely.

And we'll talk about that at the end. Okay. But we have more credit cards. That one, I can, I mean, it's... Was this a time share? Oh, no, no, no. This is a credit card from Chase Bank that's connected to the Marriott. Yeah, because we love to travel with money we don't have.

And that's why this has a balance of $4,882. dollars and 72 cents that one since we moved from Houston from Oregon to Houston we we used that car three years ago so we we used that card to do our like our expenses moving expenses and since then I have had a really hard time trying to lower the interest and that even lowering the interest I mean not the interest the balance but the thing is before I used to have things automatically withdrawn from there to pay stuff so the balance wouldn't go down and and then I took it out. You know what makes it really hard to lower the balance?

It's to keep making purchases. You know what makes it hard? Doing the auto payments for certain things. Missing payments. How about that? How about missing payments? That makes it hard to not pay it off. $100,000 a year plus.

That's not a usual thing, but I did it twice. Bringing back a classic. You really are collecting all the Infinity Stones. It's not a usual month. I haven't heard that in a long time. that's actually kind of funny that's a throwback are you I usually don't forget but I forgot that month so yeah it's a special unusual month guys mm-hmm well I mean it's the month that I'm

looking at so that's really all I care about and there's another one that yeah yeah six dollars yes is this everything you hope to do it would be or do you hate me right now no it's okay it's opening my eyes to things I didn't see before so it's fine I mean I'll deal with it that's the point Yeah. I know it's hard to get called out, guys. So I do appreciate you being here. I really do. And I know this is a hard first step. And I know I'm quippying a little.

I see the number in my life. It's terrible now. More terrible. Life isn't terrible. Life isn't terrible. He says he sees the numbers now. Now he feels like. No, I know.

But, but this is the first time you're knowing it. Meaning now we can get together, create a plan and actually figure it out. And you know what? If we didn't know it, you might not know that life. is terrible, it might feel good in the moment, but we would end up in a worse position. So this is the first step to make sure that you guys actually live a good life in the future. We have to get there. We have to get there.

So we got to get through the debts because we miss a payment. Usually it's $166, I think. Of course, late fees are added because we're not paying on our bills. Because that's the total fee this year so far, about $8111. $8 in interest in this year so far for this card, $107.78 cents in interest this past month. $351 is owed right now because we're late. We paid it. Good.

You backpaid. Good. Don't miss it again. Infinity Stones collected so far this episode. Not a typical month. A secret payday loan from the husband. Two underwater cars at 15% interest. A mother time share.

I'm saying in the words of the late great Noah. Late payments. motorcycle his motorcycle can you get rid of that he's planning to use that instead of his car to get to work so you're going to sell the car

no no sell one no we can't we can't sell one because I mean he can't use his motorcycle when it's raining outside or and he can't use the motorcycle when he needs to do jobs

his side jobs and what other ones and when can he not use the other card that he has to use a motorcycle for? No, he would use it just to go to like his day time. Then we are selling the motorcycle. Yeah, he says. Have we looked at this number yet, guys? Remember when you just said you feel terrible?

Yeah, if we can wipe out one of the debts. Like, this isn't even in consideration. Are you going to sell it? His motorcycle, but I mean, I think it's such a small loan. That's why I asked him. isn't it like it only owed 1,000 you're right

it is a smaller loan so this actually doesn't make progress I just saw it and I was like let's just get rid of because we don't need three transplants and it's only $1,200 $89 minimum payment but again it's the stack

this will just be one of the quickest ones we pay off what's it worth what's it worth if you could pay it because if you could sell it and you got like $5,000 for it He only paid $3,000 for it. Like that's from the dealer, new. It's not an, it's like those little, it's not even. It's just a mall, motorcycle.

Yeah, it's not a big thing. So if it knew cost $3,000, I wouldn't think it costs that much more to sell it. What's the interest rate on this thing? Oh, 23% for water who are we doing? Cros. Where am I? Okay. Wow.

that is all I could print out for the student loans. Oh my gosh. There is more. Yeah, because you went to a lot of school. There's more than the 52,000? There's like a hundred and fifty thousand more. That is the... Did you guys even know that?

I put it in the original list, yeah, of... That's insane. The in, yeah, total it should be like a hundred... Yeah. Why did you need the infinite amount of schooling? with all this money that needed to be borrowed. You didn't need your master's degree to do what you're doing now. I didn't know that at the moment.

They kept convincing me that I did. I got to, I, DeVry. DeVry. All your school, the one that wanted you to keep giving them money. Isn't that a private institution? Yeah. So, absolutely, no shit they were selling you. Fuck me.

So, but are the government loan, like the, the, So they're all federal? Except for those. These are the ones that are not. These are consolidating. Oh. Oh. Some of them are at 18.5% interest rate.

Student loans at 18.5 interest rate? I've never seen that in my life. I've never seen that in my life. You collected a stone I didn't even know existed. That's what they offered me at one of the loans. You took it. When did you take this? Years ago, many years ago.

I don't remember. It was many years ago. But I had to do the private, I mean, because they had classes at nighttime and I had to do a full-time job. I saw the unsubsidized and subsidized. Oh, no. All of them are under the consolidation and their signature collect loans. Yeah. We have $52,000 in private student loans, the lowest interest rates of 5.3.

I'm not going to throw up over that, but there's so much an 18.5% interest rate. the other one is a hundred and something thousand. In federal? Yeah. Why haven't you tried to do any kind of like working for the government for any public student loan forgiveness or anything? Because that's the only way out of this. They need accounts in somewhere. They have to.

A nonprofit. A nonprofit. Okay. Well, I have to find one that will pay me enough, I guess. I mean, at this point. I mean. But at the moment, I'm only. paying on those and the minimum payment per month is $205. The other ones are not in payment right now.

$205. Why? The, I haven't deferred at the moment. Oh, I can't, well, like you could see, I can't pay all of that. I agree. I agree. But just always pushing a deferment because you know what's happening in all these loans? Yeah, the interest is collecting. Your interest is getting. And this one's sitting at 18.5 with a lower rate and then a lower minimum of the payment, then you would need to be paying at least $600 to be making any kind of progress on that $650 a month. That's why I. And we're just allowing it to die. So this is why we're fleeing the country. Well, I mean, they do have that, well, someone told me or I saw in there that that 25, after 25 years, you can be forgiven if you're like all good. Listen, potentially. So this is the thing about this is the thing. Everything student loan right now, this is such a hot talk after the, after the

the Biden proposal a couple years ago. Right now, like the save program, for example, in federal courts, it's getting thrown around, it's getting slashed, it's getting, it's getting upheld, it's getting destroyed, and it's all that shit's going to go to the federal's probably to the Supreme Court at some point. And the Supreme Court hates any kind of student loan forgiveness, it seems like. And the student loan forgiveness in terms of... It's not even that much. For me, for me, it's not even...

Hold on, you borrowed the money. This is the taxpayer taking care of it for you. So don't pretend like it's nothing. No, I know. It's the money he's earning. It's the money he's earning. So it's not like it's nothing. I'm not saying I'm anti-forgiveness or anything,

but pretending like it's nothing. That's gross. No, no, no. It's just saying that even if they do approve it and everything, which I would appreciate, it's still over $150,000. And I thought maybe this would be a bankruptcy conversation, but it's just a loan, so it doesn't matter.

No, yeah. Yeah, and then when it comes to the 25-year thing, so what I was talking about with that is, it really depends on the Department of Education. A lot of the forgiveness stuff is really dependent on the actions they're doing and what they're the loans that they're forgiving and just just you know who's in charge there and you know I don't know what administration is going to be in charge at that time what if they're just beyond anti-forgiving any kind of student loans even like I don't know man

it's it's there's just a big risk right time right place sure but I that's this I don't know I figure yeah if it doesn't work out I'll still apply for those you know the the income-based one, so. Which means you're just allowing it to accrue interest forever. And also, income-based, you guys make $100,000. At some point, like, maybe the next Department of Education is not going to find your income acceptable for income-based repayment. How does this continue?

Oh, is this a mortgage? Yes, my condo in Portland, Oregon, I rented out. I have a, that's the loan for the condo. And my payments with the mortgage and the... HOA together that I have to make is approximately $900 and I get rent from the person in there for $1,200. Do you pay a rental property management company? No.

Okay. Okay. Okay. Are you setting 6% aside for any future repairs and vacancies? No. Well, do you collect from them? 1,200 and I approximately... Well, you should be setting 72 aside at a minimum on a monthly basis.

But it sounds like you're at least keeping out. I'm sure there's months that you don't, though, things break. No, I mean, probably I'm pretty sure, but my tenant doesn't call me. He just fixes it because that's what he does. Now, at some point, obviously they might move out. Rental market might take a turn. But what concerns me more because I also own a condo for rental unit. It's the one thing.

It's the one I wish I didn't get. It's okay now because luckily the rental. market picked up in that area. Uh-huh. But condo associations. Unless you're on the board, you pretty much don't have a say. Are you on the board? No.

Yeah, they can raise that crazy. Yeah. And they could also be like, oh, guys, we need a new roof for this building. Looks like everyone owes a couple thousand bucks. Uh, you know. Every year they raise it like, like $20 at least. Yeah, wait until they need to fix a pool or something. It's right now at like $310.

And when I first bought it, it was like $180. Exactly. Condos. Yeah. For rentals. I know now What is it worth? Have you checked? Last time I checked

Which was maybe like two years ago It was 165,000 Sell it tomorrow I can't sell it for another couple more years Because I got a loan from the The county in Oregon And I have to have it for a certain amount of years So two more years

It's insane That's so crazy You're little They gave me 20,000 for down payment. So I get it. But do you know how much progress we could make? We could change your life with this extra $100,000 or $80,000 after fees and everything.

$75,000. Let's just say to be conservative. $75,000 in cash in your hand, getting rid of this rental property that cash flows at like 3%. That you could change your life. You can change your life and you literally cannot. What happens if you do? Do you have to pay it back? Yeah, the $20,000.

I think a couple more years I think it's okay like I have two more years I'm trying to think if it's worth I'm trying to figure out some math so you have like 100,000 hours in interest rate accruing things that aren't this condo essentially let's just say an average is out

at about 12% interest rate okay how much do you have to pay back 20,000 yeah if I sell it now we would want to do some critical math but if this debt all sits here without making any progress at an average of like 12%. It's going to accrue with 24,000 hours and inches over the next two years. So technically it actually might make more sense to sell it. That is not a guarantee.

Let me be very clear. We need to get some minutia math on that, but just gut take, you actually might make more selling it now and paying off the debt than allowing the debt to continue and sell it in two years. We would need to figure out what the actual, based on all your debts, what's the real interest that's going to happen over the next? It might be higher, it might be lower. actually very much could be higher because of those student loans and those credit cards are like 30%. There's a good chance where if you sold it today instead of two years ago and paid back to two years from now and paid back to $20,000 that you'd actually make more money by putting a lot of it towards the debt. But then again, but then again, you'd only be putting like $50,000 towards the debt. In that case, it would still be accruing some interest, half of it would still be accruing interest.

So the math in the end still might be closer to break even. I don't know. If you're willing to sit down and actually do the math, math, math, you might be able to determine that you'll make some money. And also will they know? Will they know? Oh, yeah, because there's something in the loan for the bank. Like, they have to let them know.

Sure, that makes sense. Why would they want you to keep it for them? I guess so it's discouraging flippers. Well, what it's doing is it's preventing inventory. Like, that just overall hurts the housing market. For the average buyer, like it's an it's an interesting program. I get the assistance part, but that rule Probably to discourage flippers. I have to do a lot of things to get that condo at first because I even had to take like a two two day class to lower my interest rate because they wanted to give me a higher than the three point whatever they gave me. Oh, I get that. Okay. Okay. That's the time. How the fuck does this keep going? How are we still going through debt in an hour and ten minutes?

That's the time share one. What are we at? One, two, three, four, five, six, seven, nine, ten, eleven, twelve, twelve, thirteen, fourteen, fifteen, fifteen, with the student loans and now sixteen. Oh, I didn't even write down your other student loans yet. Okay, how much do you owe in the federal student loans? I believe it's like a hundred. You know what, I did that, uh, that credit karma thing that you said. It's, it's on there, but it's like a hundred and, okay, a hundred.

What's owed on the secret special loan? Oh, it's only like six hundred and fifty, maybe. What's the minimum money? $54. Okay. You need more paper. Oh, windom. Oh, Windham.

We love Wyndham. That they... We love Windham. I didn't even tell him about it that they lied to us again. It's a time share. Yeah. What do you expect? Yeah, but I actually didn't realize, because I went by what they told me, obviously, which was a lie.

they said we were going to be charged 120 a month, which was fine, whatever. I assumed before like fees and maintenance and all it. They don't have fees and maintenance. It's just 120. Because this is what their plan is. They want us to use it for six years at this special thing without maintenance fees or anything. And on their credit card. Yeah. And then after the six years that we're going to love it so much that we're going to do all the regular timeshare stuff. And we're like, okay, I don't think so, but fine. We'll try it for six years. So later on, a month later, after I noticed that they were charging 178 instead of the 120 they promised.

And then I wasn't making enough. Have you considered trying to sell it? I don't know if I can. Because I don't know. It's not like a regular timeshare where you like have to call and schedule. It's a different kind of time share. I know. You can stay at any windom across the country.

Yeah. Yeah. Yeah. I'm allowed. Oh, I didn't like I don't. Oh, yeah. I have to investigate. Because I'd recently.

Probably not. I would investigate immediately because you've been so many times by them. Interest rate is $61 and $65. $178 purchases. That's your monthly thing. And then $240. It's like it's crazy. You're forced to make a purchase on here almost.

It's like insane that you're even allowing this. 2490. There used to be exit companies, but there are also sketchy things surrounding them. What I was going to try and do, I don't know if it's a good idea, but I was going to try and call him to see if I can get that 178 removed from my regular.

account. So this one won't keep on collecting interest and then try to pay this off. I mean, yeah, that's a start. I would try to think about selling as you're one else over as well. Um, but I'll, I'm going to look into the contract and see if that's possible because as far as I know, I thought we were stuck with it for six years. You know what you're, I don't have your contract. Do you know what your times share is called? Um, it, it has the, the wind of name on it. But no, I don't. Like specific name, no.

I don't have it with me, no. I mean, you can also just ask them if they're able to sell to someone else. I'm sure they don't care as long as they get their money. You might be locked in for six years, but it's also just kind of weird. Obviously, you've missed your decision period. Time share cancellation letter. You can write a cancellation letter to the timeshare company. If there's things in the contract that's allows you to do that,

It needs to include all necessary details in the agreement number. They might offer a deed back program where you can return the time share. I highly doubt it. Obviously selling it. I do have written in, I don't know if it makes a difference. I was going to call my lawyers to ask them, but the person that sold us the thing, handwritten what we were supposed to be charged and it does not match what the contract has at all. There's actually, there are attorneys that you can talk to that are experiencing this.

There's that. time share exit companies, I don't know. There's been bad reputations with them, kind of. Interesting, this one. Just stop pain, this says. Some owners just stop pain. And it can lead to foreclosure. And it'll damage your creditors.

That's kind of like a last, last, last, last, last, last resort. Okay. Time shares are incredibly difficult. This is really, out of all things to get into, it's one of the last things I would get into, the interest that's accrued this year so far, $338. Okay, $159 in a chase checking account. This is both you guys?

No, this is mine. Okay. First of all, that's basically no money. That's scary, especially for making $100,000. No money because I pay everything out there. No, no, no, no, no, no, no, no, no, no, no, no, no. I see on this first page alone, two necessary transactions. Three, the rest is just going out to eat and shoving it all down your threat.

wrote. Jack in the box, subway, food town, Bath and Body Works, Sonic Drive-Thru, Dropbox. Let's not pay for Dropbox when we can't pay bills. DoorDash, Thai restaurant, Lam, Mikushikotikachina.

I can't do words that require knowing languages. I'm sorry. Paramount, I failed Spanish. Spanish, too, in high school. It's true. True, true. I told you that's one of our vices that we eat out a lot. Okay.

Yeah, we don't give vices when we can't pay bills. Half big goodness. Terry Aki something. Amazon. I think we're running out of ink on these paper. Amazon. Amazon. Amazon. Google Storage affirming. We're affirming? So there's

even more. Amazon. Go inside getting some BS. Jack in the box. Adobe. We're not paying Adobe subscriptions when we can't pay our minimum monthly payments. Terra, no, I have a Amazon, Microsoft Ultimate. I don't think we're using Google. Use Google spreadsheets. It's free.

eBay, eBay. Why are we doing eBay? Come on, guys. Discovery Plus, there's nothing on there anyway. I also watching like the new Star Trek show, but I haven't even heard if it's good or bad. A firm. Great, more affirms.

Netflix is definitely not anything on there. Affirm, Amazon, Jack in the Box. Best Buy. Best Buy, we already have a Best Buy card, but there's Best Buy. Wait, that's the Best Buy payment. I think that was the Best Buy Car. Amazon.

Car Wash? Why are we car washing? We can't afford to pay our car hardly, but we're getting it washed? It's Texas. It's not. snowing down here. We don't have salt and stuff hitting the bottom of our car. We're not doing that. Motel 6. No more traveling. Merlin's delivery. Surf style Hulu. Guys, we have every

streaming service possible. Stop. Going inside getting some BS from a gas station. Amazon, Amazon, Amazon, Wave sushi. Mm-mm-mm. Texas Roadhouse. Getting them rules. Ross stores going in getting some BS. Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, McDonald's. That's insane. That is insane. I we complained Wham, wan, wan, wan, wan, I can't pay my bills

WAN, wan, well, you're buying all this bullshit No more excuses Uh-uh I don't care if it's a vice Uh-uh

Those are the two Yeah What I told you Amazon and going out 400 hours in this checking account Oh, we're back at it You better believe it

See Yobachi buffet Game Time tickets $182 Where we go What game did we see Let's play the game of life Where we pay off debt Chile in Peru, but he got the deposit for that money, and then he went and bought the tickets.

Amazon, Spotify, I promise we can listen to ads, guys. We can listen to ads. We don't have money. Realmiti.com. Remit. That's what he uses to send the money to Chile. What money? Right now, if you guys use my Moomoo link in the description below, you can literally get 8% on your money that's sitting in there for three months.

It's absolutely incredible. Plus, you'll get 15 free stocks just for signing up with my link. This is literally free money, so make sure you're taking advantage of it now. There is no reason not to. Sign up now. Link in the description below. That's his child support is 400 a month. Oh, you have to.

Yeah. And then whatever extra. Oh, we're going to Waffle House starting 3 a.m. fights. Lens Buffet, Apple Bills. There's more money to the child support, and you have to do that. get that home depot panera bread food town apple bill raw stores apple bill amazon wendy's going inside gas station getting some b s spicy chan asian we're getting more car washes great i'm glad the cars clean up only our finances were as well paying for parking there paying for parking there sending more money

uh back to chili legends concessions we're getting concessions at the concert we already can't afford dolex d'lx amazon sending more money back adidas dad's Domino's Apple Bill. Going outside, it's a BS. Apple Bill Wendy's going outside get it's a BS. Oh my gosh,

you're just, stop Amazon. Mabo seafood. Sending some money to chili. Getting some basketball. Robbins is really good. Great. I'm glad.

I'm glad. You know what's really, you know what's really, really, really, really, really, really, really, really, really good. Being able to fulfill your dreams and moving back to where you want to. I know.

I need to stop. going inside getting to bullshit. Going inside getting to bullshit. Amazon. Fruit jungos. Amazon. Oh my fuck. What are we doing with the Zelle?

Zelling out 350. Zelling out 100. Zelling out 50. Zelling out 50. Zelling out 200. Zelling out 100. Zelling out 30. Where the fuck that going? Zelling out 150 or selling out 15.

Zelling out 700. Zelling out 30. Zon out 50. Okay. The zealing out for him is usually business-based because he'll do a job. He'll get someone to help him. him and then he'll pay the helper and then he gets the cash and then doesn't put it in the account he'll like spend all cash goes in the account now but you're also including him in

the financial conversations yes you guys are doing this together of the money spent which was a thousand five hundred hours more than we brought him because of course we're buying we're building up our debt only 12% went to debt oh that's great only 5.5% went to getting groceries but guess what 6.5% 6.5% when to go out to eat or $843. Unknown spending.

Typically Amazon. We know you had a lot of Amazon. Do I even need to look at your Amazon to see if it's bullshit spending? I have a feeling it's all bullshit spending. Either way, it was $1,828. Then, miscellaneous Bs, B,S, things that do not contribute to your life at all.

There's miscellaneous swiping, going to the concert, getting whatever. $1,411, or 10.8% of your spending. Other large purchases, $2,647. $0.78. Or 20.3% of your spending. Yeah, this is our life, guys. This is what we've chosen.

You bored? Not that. It's just that I was told we should have been done by three, but that's, I haven't a point. I haven't been. You have a lot of things. Oh, what do you mean? Three.

I just need to text them and tell him. I might be a little bit more like, yeah. That's fine. Especially we're going to film a post show after this as well, which you guys can join. I think in the description below, it's an extra 20 minutes of, usually we dive more into the sign of things because, you know, this is the finance part. Then we get the drama in the post show. We'll be done by four.

Noah says. And let me just call them and tell him that it's... Oh, because we have a member stream before. You can also hang out for that. Make sure you guys are hanging out for the member streams. What is your rent or mortgage? The rent that we rent a house. It's at 1,300.

$1,300. $200? $200? $200. $200? Utilities? Gas electric internet. Okay. Internet is about 90. Water is about...

45? 50. Like 50, 55. Electric ranges between 150 to... close to like 390 or 290. I'll say 225 for that. Okay. Ventus insurance, do we have it?

Yes, but it's included in my car insurance. thingy. We'll talk about that. So 374 utilities. Good. Gas? For both. For me, it's more cheap. Every month? A month? 30? No, for a week.

Mine is like 60 a week. I work further and mine's a six cylinder. Okay, 360. Car insurances? 225 for both our cars plus the renter's insurance. That's not bad. Phone bill.

Yeah. Oh, we pay $16. Good. Because, yeah, different reasons. 16 total? 16 total for my phone, his phone, and my son's phone. Okay. But that's because I have a, my bill says $398, but I have, I have, I give people.

Okay. Yeah, and then, yeah. $700 for groceries, follow the meal plan, tweak it to your thing. $200 for the TP fund, $200 for the, $200 for the, $300 for the, The TP fund. That is anything else you need to survive. Because this is like a top-down version of your budget. You need to build it out for its true nuances.

It's anything else you need to survive. It's makeup. We're just doing some basic things that aren't fully wants. Some could say makeup's a want, but I put it in there. It is your toilet paper. It's your towels. It's when you need an extra clothes for this month, you know, that's your TP fund. $200.

Anything medical co-pays that are ongoing prescriptions. Yeah. Humpin. For months, probably 100. Okay. Anything on top of that? No. Jim?

No. My $20. $21. Look at me. No, Jim. Look at me. Okay, let me get your minimum money debt payments. Yeah, and you remove the carwatch.

My car watch. Yeah, no more car watches? No, no for me. In the same for you. Our minimum monthly payment is $2,500.16.51. What comes in for rent? Oh, 1,200. And like out of that, 300 is like profit, I guess, from the rent of property.

I'll include that in your monthly income. About $10,000 comes in a month. Well, that was a good month, though. So I'm going to say about 9. Oh, because that did include the rent. So 9,000 after the rent. I'm going to say it's like an average. Anything else I need to put in your budget or was that it?

Hmm, probably I need to remove the Spotify premium. Yeah, no subscriptions. No subscriptions. Not yet. We might have room, but I doubt it. For now. Guys, you have room. You, I told you at the beginning, I was like, when we add up everything, it's going to be true that after you pay your minimums, you don't have anything.

That was false. You just spend it all. You just f*** around. I'm gonna double check my math just to be safe. But as far as I can tell, you have room. It's this irresponsibility acting like a child, putting our fun and instant pleasure over our future. Yep, I was right. You need $5,8007 and 51 cents to exist on a monthly basis. 9,000 comes in and, you know, you had a better month than that last time. So in your better month, you have an extra... I mean, you have an extra $3,192.

Sometimes you have an extra $4,192. I'll allow $192 to go to fund. Spotify, whatever. So $3,000 is left over on a monthly basis. For a month and a half, save up a month of a merchant fund should be the easiest thing to do. And a high-eal savings account, just that extra $3,000, just set it aside.

And it allows you guys to survive for a month if anything goes, you know, up and down. Oh, you know the one thing that you forgot. We owe the IRS $1,500. Oh, my, okay. And it needs to be paid by October with the, you know, the little agreement. No, I have good news. You're paying it next month. Next month.

Because you have an extra $3,000 after I gave you $200 for fun. What? How do you give me that face? You have an extra $3,000 if you don't fuck around. Okay. Okay, no, I believe you. I believe you. It's not about believing me.

Now I just don't think you're going to actually. No, I just, I don't. It was the last hour and I have. have a waste of time. No, it wasn't. I just, I just, I guess I just don't see the 3,000 extra, but I guess we, there is. No, I see it on there, but I mean, I just didn't think we spent that much on the Amazon and the going out and all that, but I guess we do.

There's your pie chart. Shows where all your spending's going. You do. You know what? I have fireworks in my car. Uh-huh. I'm going to launch them. Okay.

At your son if he asked for fireworks again. Oh. And you give it to them. Oh, it's only every July. I don't ever buy it. And December. Damn right. No, I don't buy it in December.

Only in July. Thank you. I was going to bring that up. Guys, this is honestly kind of simple. Yes, in general, like this, like, legitimately, you have $100,000 dollars. Okay, $100,000 in bad debt. That's not. I mean, well, that includes the...

But you don't have to pay off that house early. So, $50,000, the condo. $3,000 a month. I mean, you can just go smallest and the largest. In a year and a quarter, all your bad debts gone, except for... Well, that secondary mortgage isn't necessarily bad debt. It's just don't think you need it right now. Literally, you can pay off all cars.

You can pay off all... Except for the student loans. That's where things get difficult. So what I would do is grind for the next five years to at least get... Five years. No, that's a joke. With a private student loan, It's another year and a quarter.

Three years, three years conservatively, or two and a half years, you're out of all bad debt. Because your income is so strong. Your spending is just so stupid right now. That's why I feel like you can't make progress. So one, you likely live a healthier life, so that's good. Two, out of bad debt and have a one month emergency fund in two and a half years. Call it three years. You have a fully funded emergency fund.

So at that point, you might not be out of your time sure yet, but try to be. at that point maybe pay off your no sell the condo get out of it and honestly probably throw the rest of the student loans or towards retirement or towards retirement we can talk about it then but

minimum though three years you are out of all bad debt and you have a fully funded emergency fund and you know what it can be quick than three years because sometimes you make more money I'm doing the months where you don't make this much money you make more money boom

call it two and a half years you're out of all bad debt guys you have the most there are so many people I talk to here where it's eight years to get out of it in their current situation there was someone I filmed with yesterday what was it Noah what did it take her 90 years to get out of debt with her current budget 90 years to get out of budget sorry sitting over there because we're getting ready for the post show 90 years to get out you guys while giving you money to spend on fun in your conservative months get out of all bad debt and have a fully funded emergency fund in three years I'll be embarrassed, embarrassed and ashamed and disgusted if you guys don't get out by then, because you'll be given up the golden opportunity of a lifetime. So don't f*** this around. Don't f*** this up. You have

no idea the blessing your income is and how your living expenses are relatively low. Your largest living expenses. It's your debt minimum monthly payments by double. That's your highest by double. And it's going to snowball as you get into it. So you start feeling the momentum and you start getting excited about paying off the debt, pay for the smallest debt at a time. You're going to knock out like three individual debts in the next couple months. The IRS next month, one month emergency fund, then there's $500 debt, the $650 debt, $1,307 debt. You're just going to kill it all. Then you just, the fact that this debt exists is a joke. And you have the opportunity to no longer live like a joke. Okay. It's budget, it's sacrifice, it's

No, fuck. Bull. And in the budget, are we, like, saving money or after we're out of debt? Well, remember, I gave you a one-month emergency fund. You're getting that first after the IRS payment. Okay. And then, you're not saving money until we're fully out of the bad debt, which is about two and a half years,

and you're getting a fully funded emergency fund, which is saving more money. That's everything you need to live on your minimums for six months. And then at that point, you can either, I want you to sell the condo, and we're either throwing that at retirement to try to catch up, or we're throwing it at the student loans because who knows what the situation around that's going to be. We can talk about that then.

You know, I plan to be here in three years. So we'll have a conversation. Okay. This is down the road. But yes, we do want to certainly start catching up on retirement, that's for sure. And then, you know, we're going to do some asset transfer things. And it might start getting infusing when we're trying to get to chilly.

But three years, guys, this is a blessing of a lifetime. Right now for your hammer financial score, spending in a budget. I mean, you overspent on your budget, so it's a zero out of ten. debt, you have IRS debt, zero out of ten. Honestly, with all this debt, it would be a one out of ten at the top, but it's a zero out of ten. Emergency fund? Nothing in saving zero out of ten retirement? Nothing? Anything?

No. That's crazy. That's crazy. That's crazy. Okay. Well, whatever, zero out of ten. Real estate, it is going to benefit your score, so you're probably going to get rounded up. That's a condo.

Condo is not the kind of rental property I'd get because of the condo association fees. It's a rental property. I would rather have primary residence first. Okay. It's going to be a three out of ten. real estate. I only round up unless I hate people. So Hammer Financial score 0.5 out of 10. Make sure to join the membership below to get access to the post show and our member streams on Tuesdays and all the other extra shows behind the scenes that we do. Feel free to check out of

the resources linked in the description below. As they are what a user would use in specific situations, including the best budgeting program and best investing program in the history of the internet. Today on the financial audit post show. Mr. Hammer, you're going on a date tonight. Can we talk about that? Ooh. What's cool? What? Is she cool? Does she call soda pop? Probably like a true American.

How'd you guys meet? No good this time. Hinch. How about them? How did they meet? Oh. No. Well, but yours is Hinge.

Ours is plenty of fish. Really? Yeah. To watch the financial audit post show, click the join button below.