Financial Audit - Military Wife Is Choosing Eating Out Over Her Future

Episode Date: August 16, 2023

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My name is Roy. I am based out of Austin, Texas. I'm 22, and this is financial audit. All right. You're pretty young. We haven't had someone that young in a half second. So what do you do for a living in Austin, Texas? I am a phlebotomist. I work on like a bus, usually collecting blood donations. No, you're good. Oh, really? So you're just going around and collecting the bloods? Yeah, pretty much. Okay, I would pass out in a heartbeat. Step people all day. And I would be fainting.

Okay, very cool. What are you making? I actually, we have some of the, so this must be hourly because I have two pay stubs. Yeah, it is hourly. So I sent you one paystab. So I get paid twice a month, but they give us, I think, like, three or four times a year. I get a three-week paycheck. So that's why one of those is like way bigger than the other.

Yeah, I don't know. Oh, that was one of the random, the rare. three-week paychecks? Yeah. Oh, gotcha. Okay, so I see you make 21, 32 an hour. Yes, and I did just recently get a promotion, so I got a little bit of a pay increase. Too a while.

I brought it with me. All right. Congratulations on. Thank you. It was better promote me. Okay. Now I get paid 2282 an hour. Okay.

And I'm going to be getting paid more because I'm going to be getting paid more because I'm going to do more things, but that's what it's going to be in like four days. Well, you have good overtime anyway because it increases it by 12 bucks, it looks like. So that's pretty nice. But, of course, in this statement, we only had seven hours of overtime. But you did get 40 hours of regular pay, two weeks. Okay, very good. And then your gross pay here was $1,950, $1,571 being net after withholdings and contributions

for 1K, all that good stuff. So is that more average than that big one then, right? Yeah, pretty much. I only get the big one like three or four times a year. Okay, and with your pay raise, it's probably going to be more like 1,750 hitting your account on a monthly basis. I'm thinking? Maybe so, yeah, I guess so.

1,750, but oh, not on a monthly basis, on a biweekly basis. Yeah. So, of course, that would be. You really think it's $1,700? What do you think is going to be higher or lower? Sounds like a lot to me. Well, you're at 1,570. Well, okay, well, let's just do some quick math.

What did you say your new rate's going to be? 2280, I think, is what it was. And you're getting pretty much a guaranteed 40 plus a little bit of overtime. Always. I think it'll be like 1,650. Okay. But of course, with overtime, it could be higher. Yeah.

Could be less. 1650. So you're row times that by a two. So pretty much. $3,330 hitting your account on a monthly basis is that net income. What's your percentage to 401K contribution? It's 4%. Okay.

And what's it matched to? I think all of it. Pretty sure. Okay, because the employer, you actually, with what you contribute it is less than what you're... Oh, it is. Oh, I'm not sure. So, like, it looks like they're matching almost more than 100%.

Oh, really? Oh, oh. But it might be like certain percentages up to a certain amount so yeah yeah but essentially you put in 58 bucks they put in 78 bucks oh wow okay and then that other paycheck was a little more so okay cool well after that race we're getting in three thousand three hundred dollars net on a monthly basis so let's figure out your financial situation like i want to know what we're getting into here is you know and give the audience some background what's up what's going on um well right now i guess in terms of what i pay for

like I'm a renter. I do roommate with, well, technically with my husband and my brother, but my husband is away right now because he just joined the Navy. I want to take a brief moment to thank today's sponsor, SoFi. So as we know, with so many people on the show, people are just burdened down by high interest private student loans. And because of that, they can't even think of their future. What does it even take to pay those off with the insane interest rates? Am I ever going to be able to get a new car? Am I ever going to be able to get a new house?

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So refinancing your loans to a lower rate, as we've seen with many people on the show, can help you take control of your personal finances and lead you towards financial freedom. And you can do that today by going to sophy.com forward slash Caleb. There you can explore your options and that link is also in the description below. Find out if the rates are competitive for you. Oh, geez. Okay. But he still pays a third of the rent, so that's cool. So he got deployed for the first time?

Well, he's still in school right now. And then he's going to be stationed at when he graduates in August. So you're going to do like the three-year stint or full career? He's going to be in, well, he signed up for four years and that's it. I'm not going to let that man do any more than that because I'm tired of being by myself. But he's, you're not going to go join. So, yeah, that's the thing is, so he got orders to go to San Diego. And so.

Oh, no. I don't want to go to San Diego. Yeah. That nobody likes whatsoever. Yeah. So, but I think I'm just going to go with him anyways, just because I want to be able to see him. And he's going to be on a ship. So that's like my best opportunity to be able to see him as much as possible.

Oh, no, 75 degrees in sunny with no humidity all year. Oh, no, beaches and palm trees. Well, it's a- $6 a gallon over there. Yeah, but then you get to live in, like, perfect climate. So, also just don't drive. Yeah, you're right. You know what?

I'll just... Live in a walkable area. Yeah, I'll just be homeless, you know, but I don't have to pay rent and I can beg. Okay, either way. So, okay, continue. What's your financial situation? Oh, yes, right.

Okay. So we want to buy a house whenever he's done with the military is kind of like the goal right now. I mean, I'm not going to dig myself into a hole to do it. But with our plan right now, it's he gets out. We buy a house and then we have kids. And then I just need to pay off my car. And that's really it. I don't really have any debt or anything.

Other than the car. Right, yeah. So we have the car. You've recently put a good amount of money towards it, which is great, but it's still at $12,180. Mm-hmm. By the way, give yourself a score zero out of ten. Where are you at currently, do you think? Like 10 being amazing?

Mm-hmm. Zero being... Maybe like a six or a five, five or a six, like middle of the road. Five and a half out of ten. Okay. Let's see how that stacks up at the end. Okay. So, Carr, $12,180, $75.

Very good. What's the interest rate on this? it is 5.6% I think yeah that's in that range with cars like yeah I mean certainly not crazy but with depreciation and everything when it just comes down to basic Mac we'll still want to pay it off kind of early and your minimum monthly payment is what um it's like two hundred eighty dollars I believe well okay actually it might be more I can't

Well, what's the term length on that thing? It was like the longest one. Is that 66 months or something? That's not the longest one, but still, but still. But still. I like to follow the money guys rule. The money guys rule being that you're putting 10% down. It's three years long.

And it's no more than 8% of your total income before taxes. So pretty much like after taxes and stuff like that. What I like to do, I kind of adjust it to more like 12% post-tax. Okay. income, which doesn't mathematically necessarily work out. But in terms of net income, do we really want more than 12% going towards that? I don't think so. So, we're definitely three years.

But you're making, you know, why, so you started making more payments to it. Why? Well, okay, so this is my first time, like, buying a car and, like, taking out a loan for it. So I didn't exactly know, like. Wait, wouldn't you do it? Um, like, I think in May. Oh, wow. Very recent.

Okay. Maybe a little before that. Yeah. Pretty recent. I just got it. But yeah, it was my first time doing that. So I guess I just tried to do it the best way that I could now. And I had like $8,000. So I was like, okay, like, this is my down payment.

And then they like never asked me for a down payment. So I was like, okay, well, I guess I'll just pay it on the account. And like they gave me the option to put a down payment at the dealership, but I could only put $2,000 down. I was like, I don't know why I would do this. Because they want to suck that interest out of you. So I said no. and I just put it in my...

What's the car? It's a Corolla, a 2016. But it had like 74,000 miles on it. So, yeah, it's too expensive for that car. I paid too much money for it, for sure. Why? Why'd you do that? Because, well, I was trying to talk the guy down.

I really probably should have said no, but... Yeah, I wasn't sure if I could find a better deal, but I was trying to talk the guy down, and I... Well, he... I heard that you shouldn't, like... like tell them like exactly like how you're planning to pay for until the very end so they don't swindle you out of your money. And then I, he was like, okay, so like, you know, how are you

going to pay for it? And I was like, well, you know, I was thinking about financing through the bank unless you can offer me a better interest rate. And then he was, he was like, okay, like, what was the, you know, like interest rate that you got from your bank? And then he just, I just showed him like the paper that shows the approved loan amount. And he was like, okay, well, you already have this, so I'm not going to take any money off of what the car's worth. And I was like, oh. And like all the oil changes were done on time on it.

And I don't plan on buying another car unless I, like, really have to. Like, I prefer to just keep this one like forever. So it's like. Well, I won't be for you. But I get what you're saying. Yes. Okay, cool. Now, I see, you have a credit card, which you paid off every month.

It looks like. Yes. Yeah. So you're a credit card person. That's lovely. That's rare. but, you know, nothing, what's common interest? Common interest?

Oh, that was a karaoke bar. You spent $183 there. It was for my birthday. My husband Venmoed me for it, so I just put it on my card, and then he paid me back. Yeah, and then some holy roast and Decira's La Papaya and Palpa. Palapa. Pallapa. Frivolous spending.

And C-Rane. Yeah, so nothing really. important on here that needed to happen, but you are paying it off. Yep. Now you're checking the account with available balance to 746, which I'm happy with, 747, sorry. In here, okay, these cheaper 7-Eleven trips, what are you doing? Are you feeling of just a little bit of gas or are you going in and getting caffeine? I'm getting caffeine and snacks.

What caffeine, $12.30 cents? Because. No, what? Oh, wait, which one? What are you spending $12.30 cents in caffeine? No, caffeine and snacks. Oh, yes. Yeah, because.

What are you drinking? Well, I need to have, like, minimum 200 milligrams of caffeine to start off with. So usually it's like those monster coffees with extra caffeine in it or the Celsius ones are pretty good, like those. Okay. 7-Eleven. But I should not be doing that. So we're getting caffeine. We're getting free dose.

We're Chick-fil-A, caffeine. We start CBD and some brewing thing and Andy's Frozen Custard. and some caffeine, double apple smoke shop. Again, let's not have unhealthy habits that are also expensive habits. So that's almost $100. What are you smoking? Oh, wheat. Yeah, for sure.

Okay. In what kind of form? Well, I mean, sometimes I will vape it and sometimes I'll smoke it in the bong and just get it from my dealer. But I threw away my bong this morning. It's an ongoing addiction that I'm trying to get rid of. Oh, really? Okay.

Well, not only the addiction thing and the financial thing, but really out of all places in our body, do we really? really want different kind of chemicals going into our lungs, our lungs of all places. Like, if we want anything to exist in us, it's like our brain, lungs, and heart. And we're just putting, we don't know what, you know, vapes. We don't know the long-term consequences of that vapor, but either way. And then McDonald's and ploppa again. And then you paid $8,000 towards the car.

That's fantastic. So that was the down payment. You saved that, but then you just put it. How many discounts does USA 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. Yeah. Ramen to Tzuya, mid-Raman and Austin, okay. And some more CBD and caffeine and KFC and Starbucks and T.J. Max, 18, which all of 80 bucks, who knows where that went. Netflix, Nomad Bar, Austin, Waterburger, and some caffeine. And Popeyes and Papas.

and you transferred in $2,245 from savings. Why are we doing that? Okay, so the reason why is because my dad just inherited, because my grandma died, so he inherited a trust. And he, you want to see somebody with some crazy financial plans? You talk to that man, because he does not have a bank account. Well, I don't think he does anyway, and he doesn't have an ID, so he can't open a bank account.

And so he had no way to get the money. And I was talking to my aunt, and she's trying to figure out how to get this money to him. And I was like, well, just send it to me like all. I was thinking I would open up another savings account and put it in there for him so that he can just ask me when he needs it. So I emptied my savings account so that she could send me all that money. I keep track of it.

You know what I mean? Be like, okay, this is my dad's money and this is my money. So it's not like a permanent thing for it to be in my savings account right now, but that's why I move money for my savings. And if you want to keep track of things, keep track of your to do list. And at the top of that to do do list is hitting that. a subscribe button because we're trying to get the 750,000 subscribers. Thank you to everyone who has subscribed so far.

So, okay, that $2,245 that came in, is that all that's going to come in? Yes, that's it. Okay. And then, again, $500 to the Corolla and Pineapple Express and Pineapple Express and Uber Technologies, Uber, and Wendy's, and IHop, and Venway not $210. That might have been. Usually I use Venmo for bills, too. So sometimes my brother will go shopping and I'll send him because we do the shopping as a group and we'll just pay each other for half And caffeine and Uber and Uber and again you have a car but we're Uber in all right and Waterburger and Venomene out $610.

Oh, that was when I bought my car to pick it up. Oh, okay. That's fair. Yeah. And Benemowing out $25. Vendumint out a lot of monies. But again, if that's for bills. So really, I didn't really, I think I saw one grocery store in here, Rosedale Market for $55.

bucks. Do you just eat out for every single? Okay. So where's the grocery shopping or do you just eat out every single meal? So this past month has been a little bit irregular for me. That's why I've been going to 7-Eleven so much is because I haven't been grocery shopping because I just, and I haven't really been eating anything. I also lost five pounds on accident.

I'm sorry. But I just been having a hard time with my husband being gone. So that's why I'm like kind of. not only do I spend a lot of money for like weed and stuff and like going to 7-11 like buying my one meal of the day there but are you bored? No no I go out with friends a lot because that's what all that lapa lappa and stuff is I'm going out with my coworkers because I'm trying not to be at home by myself so I'm trying to yeah but also like going on drinking and eating is kind of expensive so I need to stop doing that but um yeah no I've just that's why I haven't been grocery shopping all the BS spending was just just over a thousand bucks, which isn't crazy, but it is... It sounds like a lot to me.

Well, it is a lot for your income. For BS spending, it's a third of your income. Yeah. So that's kind of a lot. But then again, if that's all the fun you're having and you're not in a bad situation, then if that's the 30% that you want to put towards having fun, okay.

But I would rather get you out of your card debt now first. And then last but not least, but there is a savings account. What's the current balance in there? Because I know things have changed. What's in your savings right now? I believe it's like $22,500. All right.

I think we have found... But that's my dad's money. That's not my money. Well, what's your money? Oh, my savings? Yeah. Oh, I haven't really... I don't care about your dad's when I don't...

Allocated a set amount for savings because I've just been kind of doing whatever with my money. What's your savings? What do you have? Like in my checking account right now No that's all my money in my checking account You don't have anything else outside of that No

Where the $8,000 come from? $8,000? Well, I had it already That's what you saved up Yeah But half of it my husband gave me So right now the $700 in your checking account It was all that you have towards your name

Why did you send the savings That's your dad's not even yours Like, whoa, what are we doing? What do you mean? You said, the savings that should $25, $23,000. Oh, yeah, no, no, no. That's just in my savings account.

But it's not yours. Yeah, no, it's not mine. So your dad's money's in your savings account? Yeah, because he doesn't have a bank account. Oh my God, that's just weird. I know. How old is this dude? Well, he's like 56 or something like that.

What is he like a weirdo? Yeah, he's a weirdo for sure. All right, so, well, now I'm a little less happy. I was like, all right, we're going to pay off the car. today and we're going to have pretty much a fully funded emergency phone and that was it. Nope. Sorry to burst your bubble. Bubble bursted.

Spending a third on fun. We have all that. I'm glad you saved up $8,000 to begin with. I am glad you put a good down payment down on a car. We can, you know, I mean, it kind of was. But you didn't do it with the traditional round. But either way. Right.

Your portion of rent. $610. Incredible for Austin, but that's what the remains and stuff. We got a backyard. Oh, it's a house. Yeah, it's a duplex. I got three dogs, so I need a backyard. Oh, very good.

Very good. I have a puppy, too, but he's in my bedroom. So he didn't jump all over you when you came in. Oh, that's okay. Okay. And your portion of utilities? So me and my brother are splitting in a half since my husband's not there, so he's not paying any of it.

And usually it's around this time, it's like between 150 and like 180. Oh, so my portion would be about like 75 to. So you pay half? Yeah. Okay. Maybe 80 bucks, I guess. What's your car insurance? My car insurance.

Well, it freaking was 140. And then they canceled it because they didn't have, I don't know, it was weird. Like I put I had to get the insurance before I took the car home, right? Because the dealer wouldn't let me take the car home. And so I got it. And then they sent me a letter in the mail saying like, oh, like we don't have your name on the title. And I was like, what are you talking about? I just bought it.

But I guess it's because when I started the insurance, like I wasn't on the title yet or something like that. I'm not sure. But anyways, I just restarted it yesterday. And I was playing phone tag with them because they kept me around and not doing anything. And then it went up to like 200 something. maybe like 250 or something. I can't exactly remember. Oh, she spent on gas a month?

Maybe like, like $60 or $70? I don't have to fill up very much. Yeah. Though it is a very driving, like, you need to drive in order to live in Austin once you're directly downtown or in the domain. Okay, so healthcare, is that through work? I have my husband's health insurance, so I don't pay anything. Other minimum

monthly expenses. Oh, well, we have the car payment. It was 280. I forgot my, so my gas bill is separate from my utility bill. That's usually like... Oh, so you didn't include that? No, yeah, sorry, I forgot. It's usually like $20 maybe for my portion.

Okay. I'm going to give you grocery spending of which is what you're going to be doing now is getting groceries. Like a big girl of $300. And then I'm giving you toll paper, anything else you need for the house, make up all that good stuff, $100. Do you think $300 for groceries is enough for one and a half people?

You have a kid? No, it's my younger sibling, but me and my brother, we just split the groceries and half. How old's your younger sibling? Like 16. Is he the brother that you're talking about that splits the payments? No, no, no. I have my older brother. Yeah, and then my younger sister.

Younger sisters who you're taking care of. Yeah. Okay. And you and your older brother both take part in this? Kind of sort of, yeah, taking care of them and the younger sibling. I don't really do anything except for get groceries and stuff, but he is the main. Yeah. Okay.

What's the situation there? Why is he living with you guys? Well, as we've established, my dad is weirdo. So my sister can't. Oh, no, she's crazy. They're all crazy. Okay. All right.

I'm going to allocate just an additional, since someone else is also helping to put into it. I'm going to have you put in it. It's only groceries and other little things that you're helping with or are you helping with more stuff too. Like school supplies and like what do we what does it look like? Just food. Yeah. I mean, I'll do the odd thing here and there, but I mean, I don't think it's really anything usually expensive. Like I'll get them pants sometimes, but then I'm going to put on a monthly basis an additional 250 bucks that you can put towards that. A little more than I was going to go, but that's just in case there's pants and shoes and stuff like that. So let's try to have that less.

This is you put towards the brother front, your portion. Okay. And then, you know, whatever else comes from the other side's awesome too. Okay. I put it that as a max of 250. Make it a little lower when you can, but then when those odd things pop up that you should help with. You said 16 as well? Yeah.

Okay. He can also start, you know, working at some Mickey D's if he wants to bring in some extra money. Right. Does he have a car? No. my younger sister. Oh, she. Yeah.

No, she does not have a car. No, she has a bike. That's like electric and stuff. So she gets around that way? Yeah. And you're pretty close to things? Yeah, I would say so. Okay, then she can start getting a job.

As long as it does not detract from school and does not put her in like a bad mental health place with the balance between school and stuff. But she can also help. Okay. I just want to frame this right. She does not necessarily need to be fully. self-efficient right now, but she can start gaining some of the skills of contributing. Yeah, but she's probably not going to because she's going into a self-paced school right now,

so she's just trying to graduate a year early. So the kind of the plan was like just focus on school. Probably at the beginning of next year, yeah. But by that time, I may be in San Diego, so it's kind of irrelevant to me. Okay. Just one thing to consider going out there. I'm way on the outside of the. conversation so I don't want to make any immediate adjustments.

Right. Just make sure as we're heading into the next year and heading towards 18, skills are good to learn. We do not want to be enabling anything. Of course not. Any leaning on people. Well, actually, leaning on family is good in a healthy way. I just want to make sure.

Not excessively, yeah. Yeah. For sure. Through a weird family situation that is currently there with parents that are not in the picture, I want to make sure she is fully successful when she hits that adult. age in our culture to go out and make a path of her own without having to rely on others. Leaning, in a healthy way, in a healthy way on family and friends, totally good. Nothing wrong with that.

But just making sure that she's fully set up. Any other minimum monthly payments you can think of? Oh, you know, you should probably put on there. I have to pay, let's see. Well, I buy a lot of dog food. So it probably comes out to like one. 20 a month maybe. I have big dogs.

Typically the way I do that is I put that in your own groceries. Oh. So I'm changing your food budget to 400. Okay. That works. I just get the H.E.B. brand, so it's not too expensive. Okay. And you're canceling all your other subscriptions because you do not need them right now.

Like Netflix on a lot of course. Of course. I don't really watch. Netflix anyway, so I guess I don't need it. Who does at this point? Okay, so your needs category comes out to $2,060. And after your raise, not taking an account much overtime, well, a little bit of overtime, but not much.

After your raise, your needs category is 62% of your income. So that's too much. That's too much. And that's with also helping your younger sister But even still take that away And you're still well above 50%. 50% should be the maximum that goes towards your needs. 50%.

So what we need to do here is, you know, When you're moving to San Diego, which is I'm going to say Well, I mean, the income situation will change then too Because you'll need another job. So it just gets weird. Essentially, what needs to happen right now is needs are cut somehow. Where do we make wiggle room in the needs? I don't know.

I don't want you to, you know, starve yourself. I don't want you to not give your little sister what she needs. I don't want you can't break leases or anything. Well, actually, we can break a lease because there's a clause in leases for people in the military. And is your brother going, oh. Well, we already talked about it. And he said he was fine to just stay at. It sounds like a bad decision.

When would you move? It's hard to tell right now because like everything the military tells us the next day turns out to be a lie. So don't ever trust the military. but he's supposed to get he's going to my husband's going to graduate in August and then at that point he should be able to take maybe three weeks of leave and then we were going to spend that time to move but we have to get on a wait list for the housing so we're not even sure if we can move by that point we may have to wait longer so everything's kind of kind of cluster right now yeah yeah it's hard to make plans it is but I'm not not going to screw myself and go to San Diego without a job or anything because, I mean, I have a good job here that I like. Well, your needs are obviously too expensive, but you do have $1,240 left over on a monthly basis with some overtime that's in there.

So we can start making progress certain things and we can have an emergency fund and stuff like that. But is there, well, yeah, celebrate, but is there, but the amount of time that's necessary in order to get that is well beyond the when you would move. even if it's delayed a bit. Right. So it's like how much of a plan is going to be a plan right now. So should I just work a bunch of overtime?

Well, absolutely. Do you have the option to work as much as you want? Yeah, I can work as much as I want. You work a bunch. Okay. Stretch that to 4,400 hours that's coming in. Monthly? Net?

Net? Yeah. Okay. Go crazy because you're working, what, 45 hours right now or something like that? 44 hours? Usually, yeah, around there? Okay. Work 5560.

5560. Go crazy. Because you're moving. Let's get you in a clean spot. It doesn't matter right now. You're looking for distractions anyway at this point. Yeah. Because you miss your husband and you're going and spending money right now.

Let's use that time and just be making the money right now. Okay. So you're doing what because the cool thing is if you have an extra net $2,000 a month, I mean, just for the sake of moving and the expenses around it, you know, for two and a half month save up $5,000, which is two and a half months of emergency fun for you right now. But that covers some of the moving expenses when that needs to happen. You know, putting down security deposits and stuff like that. Well, no, no, no, it's a, it's a, yeah, because we don't really have to do.

The military will pay to move all of our stuff. Okay, maybe we save up $4,000 is for a little extra safety net than we would normally have in this situation. But then everything after that $4,000 for these costs. coming months, you're just putting it towards the car, putting it towards the car, trying to get the car balance, you know, after a few months, maybe down to $6,000, $8,000. Because you're just going crazy. But that's if you're here going crazy for like six months. I don't know if we're going to be here going crazy for a total of six months from now.

I don't know, because August that's coming up in a couple months. Yeah. And then you're thinking of moving, like, what? After that. So I don't know. A lot of this depends on that. And then what the income situation and living expenses look like there. Obviously, the military is taking care of a lot of it, but, you know, cost of things are also higher, as you mentioned with gas there.

But rents in living, shelter overhead is usually someone's biggest monthly expense anyway. That's not something you're going to have to worry about. So you should really work like crazy when you're there. Just go wild in whatever position you're in, even if you're making a little less money. You know, hopefully your needs category will be less. It should be maxed out of 50% anyway, but it shouldn't even be getting close to 50% with the situation you're in at that point. And everything else should be getting this car paid off. Because then you're going to have your car fully owned, owning nothing, which will be very fun, very good.

And then how much do you have in your 401k right now? I believe it's like $600. Like I had just started. The exciting part is your 22. And usually I get on people here who are in their 30s and stuff like, oh, you missed your best decade of kind of. compound growth. I mean, by the time you're out of the car and the income, I don't know what your income will be. It's so hard, but your expenses will be less. What I want to see is a fully funded emergency fund, which is six months of living expenses, minimum $10,000, just in case a car breaks or something like that. Our medical thing happens. Minimum $10,000 and the car paid off by the time you're, it was just your birthday, right? So the time you're like 33 and a half. I want to see. So a year and a half from now, I want to see the car gone on a fully funded emergency fund. And I don't see why you shouldn't be able to do that. Especially if before you leave to move, just go insane. Go insane and work 60 hours a week.

Okay. 70 hours a week. I don't care. Go wild. Just work, work, work. And only follow the budget that I gave you. You do mean next year, right? Not when I'm 33 because I'm 22 right now.

23 and a half. 23 and a half. Okay. Just make a turn. Oh, yeah, yeah, yeah. I'm going to tilt this target you, but yeah, 23.5. So, which is great because then what I'm going to have you do, is at a minimum maxing out your Roth IRA every year.

And you maxing out your Roth IRA every year from where you're starting with compound growth to the time you retire. Dude, you're going to be a millionaire. You're just straight up going to be a millionaire unless you're investing in some stupid stuff. We're not going to talk about that because I do not have the legal qualifications

to give you investment advice. Okay. That's fine. I do have a question about the 401 case stuff. Okay. So, Okay, no, I just lost my question. I'll think of it later.

Okay. But either way, if you're just investing in the general stock market, which is not advice, which returns 8% a year on average since the, you know, historical inception of it to now, you're going to be a millionaire if you're max out of every year and doing that, not a suggestion. But if you do it. So, like, that's exciting. Oh, I remembered my question.

Sorry. Okay. So if I move jobs because you're very. 401k is like with your job is that mean you have to like you're going to roll it over yeah you're going to roll it over into something like fidelity that's where I rolled mine over for my previous employer oh and then you just keep it there yeah you can keep it in fidelity or wherever you've rolled it over too and you can roll it over again if you end up wanting to but okay uh yeah it's actually it's actually really simple and usually those platforms like well the platforms that you're rolling it over

too again I only have experience with fidelity in that instance but they just gave me instructions and it was super easy. Okay, good. That's why I haven't started 401K yet because I was like kind of, I've had a lot of jobs, so I skip around jobs a lot. Well, that's my history anyway. Well, I see you actually with ADP with the payroll. And if they have their 401K through there as well,

that's where I transferred mine through. And it wasn't that difficult. Oh, okay. Okay, cool. Great. No, it'll be pretty chill. In general, your financial situation isn't that complicated. What's a little weird here is the unknowns.

I don't know how long you're going to be here. I don't know how much overtime you're at. actually going to do, I would just go crazy and see if you do. If you don't, I mean, the situation drags out to like three years. And I don't know in terms of paying off the car, have a fully funded emergency fund. And I don't know what your income situation is going to look like when you move anyway and what living expenses are going to look like either and just what you do. So, a lot of it's dependent on what you choose to do. What I would lay out as a path, though, is take whatever path gets you to a couple months of emergency fund now because the move is going to create some unknown

expenses you never know. Right. So a couple month emergency fund and then paying off the car as quick as you can and then saving up a six month emergency fund, $10,000 minimum in case of medical expenses or like the car breaking down or whatever. Okay. $10,000. Because when it rains, it bores.

Right, right, right. So from there. And then do I just keep that $10,000 like in my regular savings account? Yeah, put it in a high yield like SOFIs. That's where I keep mine link in the description below at 4.3% interest rate. And there's actually bonuses when you set up direct. deposit like 250 bucks, which is something you could do actually. Do they do like a credit check when you apply for that or anything?

Because I could do one with my credit card. Yeah. No, my credit card, the bank, it says I can have a high-yield savings account. Yeah, yeah, yeah. But it's probably shit. Well, unless it's not. I think it was like 4.6%. Maybe.

I know Capital One has a good one currently, but I do. Yeah. Do you have to pay monthly for that savings account? No, dude. They're paying you. They want you to have your money. Oh, okay, cool. Yeah, they're giving you, like, four, again, with the one I use, 4.3% on the annual basis.

I will do that then. Yeah, so that's something worth considering. Then, yes, that's just sitting there. And then you're maxing out your Roth IRA and then trying to get as close to it with your income situation is going to be hard, but who knows what it's going to look like. But as close as you can get to maxing out your 401K, 20% minimum of your income should be going towards investing in savings of some kind. Okay. Once the car is paid off. Once the car is paid off.

50% for needs, 30% for wants, 20% for savings. I'd rather you do 25% for savings and 25% for wants and 50% on needs. But yeah. Okay. Okay. Do you think I should open a high-yield savings account for my dad's trust fund too? Sure. If you're for some reason managing it, which you should get some legal paperwork explaining the situation around there, by the way.

I should. Oh, gosh. I don't want to do that. Well, it's just. It's weird. I know. It is weird. Plus he gave it to you to put in there.

And it's like legally like he gifted it to you. So maybe there's taxes and it's a weird situation. Oh, you're right. Maybe I should just take it all and give it to him. That's the, get it out of my. That's the safer way for you. Okay, that's what I'll do. I don't want to get in legal trouble.

No, let him be a big boy and figure out his own life. You're right. You're right. Come on. Yeah. So that's all what I do. What are you actually going to do knowing yourself? Okay, so in terms of overtime, I, my, the length of my shifts, I can't really like work always like 10 hours if I want to.

It just kind of depends on like how long the blood drive is. Well, you made it sound like you could work as much as you want. Well, you know, I can pick up as much as I want. But, I mean, should I work seven days a week? Sure, I don't care. Take advantage of the time now when you. you have nothing else going on to just pay off the debt and get close to your goals. At some point, you'll have things going on in life, stuff with your husband and everything,

that you want to dedicate more time aside. When you have kids, you mention that as well. Okay. Take the opportunity of the time where there's no other obligations to just pay off this debt and save up as much as you can. So yes, go crazy. Okay. I think I could probably pick up.

I definitely think I could easily pick up one extra full shift. Maybe my seventh work day could be like because you could, I could do like a half shift. That way I could still clean my house. Six and a half days. It takes a long time to clean my house. Okay. Yeah. I think I can do that pretty good.

Yeah. You say and then with you're saving up the two months, paying off the debt and saving up 10,000 hours or more depending on your six months of living expenses. Right. Yeah. So with paying off my car and saving up for an emergency fund, should I just, should I just pay off all of the car first and then save it for the emergency fund or do both at the same time? Again, we're doing two months of them, two months of monthly expenses saved up on the side and then paying everything towards the car and then saving up the six months of merchants

fund minimum $10,000. You're doing that just because what we've seen, even if people following like Dave Ramsey's planner, it's $1,000 on the site, we've had multiple people on this show of the following that guidance. Then because an emergency pops up in $1,000 isn't even closer to enough of dealing with real emergencies in 2023. They end up in a worse situation than when they, when they, than where they were before starting his baby steps.

So I'm just saying make sure you can cover at least a month. And I'm giving you two months because who knows what's going to pop up with the moving expenses. Right. Sorry. Oh, I forgot to tell you my phone bill. It's $15 a month. Okay. Yeah, it doesn't really change much.

That's really cheap. That's really cool. I only pay it once a year. Anything else? No, I don't think so. Can I write this down so I can remember it? We'll talk about that. Okay.

And then, yes. well, I'll give you all that. You can also watch the videos as well. Oh, yeah, that's true. But while we're here and recording this for the masses, I think you can be in an okay place. Just sacrifice now and then figure out the income moving situation, follow the steps that I laid out,

and you'll be a millionaire by the time you retire. Okay. It's exciting. Right. Don't f*** up. I will not mess it up. I don't have. I don't want to be a phobotomist forever either,

so I'm not going to be making this income for the rest of my life anyway. Do this go crazy. A year, a year and a half, we should have a follow-up, and you should have a fully fund an emergency fund and a car that's completely paid off. Okay. Okay. Sounds good. All right.

All right. For Roy, actually, her hammer financial score is going to be a little lower right now because of a few specific things in the categories and you'll see. But I think it's going to get up pretty quickly. So breaking it down. Her hammer financial score, spending within a budget, I mean, come on, spending a third-year income on BS when we have no emergency fund. And when we have that kind of card debt, it's going to be a zero.

For the debt, though, it's not the worst debt by any means. It's not a super high interest rate, but it is a car, so it's going to have to be a three out of ten. Retirement, okay, for her age, you know, I'm glad to it started, but there's still pretty much nothing right now. We just need to get that out. But, you know, 22 can't blame her too much, but the overall hammer financial score is not age-based. It's trying to get to that 10 out of 10 as you go through the ages. Right now it's going to be a 1 out of 10 emergency fund. There's nothing.

She trained it. Put it towards the car, which I appreciate, but there needs to be a little cushion still. zero out of ten real estate nothing but they're talking about that zero out of ten right now hammer financial score one out of ten check out the resources that i link in the description below they're the ones that i use or would use in specific circumstances like a very high yield savings account that i personally use are getting a free five dollars when you put five dollars in to acorns and other things like education and stuff like that so check them out and don't forget to follow me on instagram and twitter thanks refinancing your student loans can help you take care of your finances

so take the next step towards financial freedom and visit salfi.com forward slash Caleb. Find out if the rates are competitive for you by going to the link in the description below.