Financial Audit - Missing Payments And Borrowing Every Cent From Her Friend To Survive

Episode Date: September 24, 2023

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My name is Amity. I'm 26. I'm from Austin, Texas. And this is financial audit. What do you do here in Austin for a living? I am an insurance agent. Very nice. What do you bring in with that? I make 18 an hour, but I think monthly it's like between 28 and 3200. Hmm. Okay. How many hours a week are you working? Between like 35 and 40. Okay. Now with this, are you getting insurance agent? Are you getting commission people signing up? Yeah. So I get 5% commission. on everything that we charge.

But it's not really as much as it seems. What do you mean? Because usually we'll do maybe like 900 to 1,000 a week, but really I'm only getting like 30, 40 bucks, maybe 50. What are your coworkers? About the same. About the same? So you'd say you're pretty well average in that then?

Yeah. You're not like otherperforming? No, it's just the commission. It's really low. And in the office that I'm in. It's pretty low. Oh, so that office specifically? How long have you been?

Three years. Have you considered going to other offices to make more money? I've thought about it. I've tried and there is more money, but when I did it, it wasn't very, like, it wasn't close enough for where I lived. And what was it convenient. Do you like sales? For the most part. If you like sales, why don't we get a better sales job?

How much hits your account on a monthly basis on average? I think about 28, maybe 32 at the most. Yeah, 20 is what came in. $2,801. So I'm going to just say that. With that, I mean, that can be pretty difficult to live in the Austin area. That's $33,600 a year post-taxas, post-contributions, post-health insurance. So that's, yeah, how do you feel living off with that in Austin?

I mean, obviously we racked up a good amount of debt. And it's not as bad as, it doesn't feel as bad as it looks, I guess. How so? Because I'm in debt, but it's not like, I'm not struggling other than the debt, if that makes sense. Isn't that a big struggle, though? Yeah. I was going to say, I mean, one of the reasons I go so hard on people is because people are like, yeah, it's not good. But it's not that bad either.

No, this is bad. This first thing we're going to look at. is a late fee. Yeah. So late fee. So, I mean, I don't want to be rude off the bat, but fuck off. Yeah, no.

That's not just not struggling. You're missing payments. Yeah. We're in collections. Yeah. The collection stuff is like three, four, four, five years old, though. Okay.

Okay. So in three to five years, you haven't touched it. No. Okay. So, yeah. I'm getting, two thousand and eight. Well, I'm just saying, like, if you're good at sales, like, I'd want you in a better sales position.

I worked in tech sales. And, I mean, I worked to get other people in tech sales with, like, course careers and stuff like that, because that was one of my first post-job colleges, or post-college jobs. And, like, when you're good at sales and you find an avenue that you can excel in, like, the cap is almost limitless, depending on the job. Some actually do have literal caps. And in that, you can just work your ass off at the top of the team Because it just depends how hard you work, how smart you work, and then you can pay for your debt quickly So if you're into sales, I'd want you to be making more than this, that's all I'm trying to say more than anything I mean, I like insurance, I've been doing it for a really long time

And preferably I'd rather stay in insurance It's just hard to find a decent insurance job that's going to pay you enough because like right now where I'm where I'm getting paid at is like a little bit above average but do you like so much about insurance it's just easy it I like number we're not taking the easy way when we're in collections and we're making payments yeah like you're taking the hard way of life by wrecking this up and missing payments so I don't care if the works necessarily easily temporarily your debt okay so we've gone to debt why have we gone into that in the first place.

So a majority of it, except for like my capital one card, a majority of it is from when I was like 19 and 20, I was in an abusive relationship that just kind of was not very stable. And as far as like money and spending. And so I just kind of let everything go. And at that time I had in my head that I was basically going to be in poverty and like not really have a stable job based on where I was going. And then when I got pregnant, I tried to make those changes. Yeah, I have a five-year-old.

And when I did that, I started to make the changes to stop spending so much. So I fixed a lot of the collections to where now I'm just kind of stuck with like the big stuff. And now I haven't been like... How'd you fix that? You mean, you negotiate? Yeah. Okay. Yeah.

I paid stuff down. And so now it's just those big ones that are stuck there. And then like sometimes some months are a little bit lower than others. And other times it's like, I don't really want to pay anything. And that's bad. But yeah. Okay. What would you give yourself zero to ten financial score today?

Maybe like a one, two at the most. So we have a credit card. This is a capital one. This, honestly, this one pisses me off for you more specifically. Right now, $610, Zodon, which is not that much. Especially, I mean, your income is lower for the area, but with your income, we shouldn't have this balance. We had a previous balance, $332. You made $150 minimum monthly payment, which is great.

More than the minimum monthly payment, more than double. Then you purchase $390 on it. But what upsets me even more is you didn't fully pay it off and then you doubled the balance on it. You then missed a payment, had a $25 fee on it, and then you lost $12.96 in interest, bringing it to $610.29. If we're losing money with interest, if we can't even make the minimum monthly payments, why are we possibly, possibly putting money on it? Why are we spending money? And by the way, not even money that's helpful to you. Casa something, Juiceland, McDonald's.

hopefully that's gas it could be chikitos or gas depending on that price range who the fuck knows and Apple subscription and Best of Books and there's your past due limit Yeah that was one of those

That was right before I got paid And I needed a few things Why is it? Okay Okay again this is like that You're choosing the easy job thing I'm gonna keep coming back to that Because right before you got paid

So what? You had zero dollars in your account You're gonna make them in a monthly payment So if we have zero dollars in our account, I don't give a shit. The job's easy. We want a better job, right? Yeah. I've applied.

I've done like three or four interviews for different things. For what? What industry? For another insurance company. And then for a position doing like accounting and bookkeeping. And then, yeah, two insurance and then bookkeeping. And they were all paying a lot more. But it was one thing or another.

I just didn't have enough experience or they went another route. Only four? Over how long? What do you mean? Over what period? Have you been searching for this better being job? It's been maybe like three or four months. A lot of them have been...

How many have you been applying to on a weekly basis? On a weekly basis, I'd say about four or five jobs. Are you actually? Yeah. Through Indeed or whatever that. That's obviously not enough when we're making low income and we're missing credit card payments. Yeah. Eight to five, no.

It's like, okay, if one... when you get off work, you're not working a second job. Your second job is applying for jobs on a full-time basis. Working 80 hours a week. 40 at this. 40 applying. Yeah. And then the money was just bull-fitting anyway.

So this wasn't even required. Like, okay, yeah, you missed the payment. But then we're just building a balance that we can't even pay off anyway for Juiceland, for Casa Moreno, McDonald's, a subscription, potentially tequitos, Apple thing. I have my Apple subscription come out on there, like my storage. But like the best of books, like, okay, great, but we have a good library system in Austin. Let's not pay for books. Huh?

I have a problem with books, actually. This year, I got back into books and I've spent a lot of money. Two, books are great. But again, we have an incredible library system in Austin. I like to own them. Fantastic. I like you to be out of debt. And then you own all the books you want.

Yeah. That's actually the first book I bought in like three months, though. I will gift you whatever book you like when you get out of this debt. It's a little reward, but come on. A book is not worth missing payments on a credit card. Having a $25. And this is a 32% interest. I think that's highest I've seen for a credit card on the show.

It's disgusting. I hate it. Now, I don't have other debt statements, but we have other things. So that's your credit card. Now, we have student loans. Are these all federal? Yes. So they're in forbearance right now.

They're about to restart. I'm guessing the payments are going to be about $150 a month, starting in two months. What? Two of them are like both of them together is like $80 a month. I know that for sure. Wait, are you on like an income-based repayment? Yes. So what's interesting about that is the income-based repayment has been successful as of late.

But it almost seems like an administrative thing. Because when you're, first of all, it to be very, very disarmament. with it. You've got up once and your whole process starts over again. And that's if they even get forgiven. The income-based repayment, forgiveness historically has just not been really a thing. This has been a failure of a system until these last couple years. But who's to say it's continued being a success? You know, what's the Department of Education at the time going to look like when you're ready to do years? So is it something I want someone to put all their, you know, their eggs in that basket?

I don't know. That makes me nervous, but so $80 a month? Yeah, for two of them. The other two, I honestly don't know. I haven't talked to them about those. Oh, I forgot.

So $80 a month for that, and the credit card is $69 bucks a month. Plus, if it's not forgiven, dude, I mean, the interest that's accruing on this. Even though federal student loans are like lower interest rate. Especially for the ones unsubsidized. I mean, we're paying lower than what you should for a minimum monthly payment.

I didn't just as a cruise and gets aggressive. We also have a personal loan? Yes. I don't have a statement for this. So one second, personal. And this is $1,171.171. What's your minimum monthly payment? $155.

What is this for? When my grandma passed, I had to get out of a loan to help pay for her. cremation. Why you? Nobody else hasn't. Like my uncle didn't help and my mom is. You said no one else have it but you didn't have it. Yeah.

So why again you? If it wasn't me, nobody would. And I kind of take on the responsibility for my family most of the time. Like financially at least. For how many people? Like what does this family situation look like? My parents and three brothers.

A lot of like the big food purchases are usually me feeding all five. Why aren't your parents taking care of their children? My dad's blind, so he doesn't work. But he should have assistance. He gets a very small amount of assistance. Yeah, it's not seem like substantial, but there should be supplementary. And it's a problem that everybody that I know hounds me about, but they.

Well, what about the mom? She is his caretaker, and she has. Why isn't there a government provided? Caretaker? They don't know. Have you looked into that? Have they looked into it? I don't know.

As far as, like, my dad's, like, health stuff, I'm not really sure how any of they, how any of it set up or what they actually get for everything. Might be something worth looking into, see what services exist, because obviously, I mean, we're not just going to let someone in our society who's blind just get, like, you know, that's not a thing. I don't think anyone encourages that. So there are things in place. I would start looking at it because you have a child. You are trying to build a life. You want to build a great life for your child. You taking care of your parents right now and for the rest of their lives

and then taking care of your siblings because they can't. That's a very difficult position to be in. And it's, yeah. What's the interest right on this personal loan? I'm actually not sure. I think it was like 19 maybe, but I'm not completely sure. 19? Yeah.

Oh. You think. I wouldn't be surprised, but that's disgusting. Wouldn't you take it out? In... Your credit score is bad. November? Yeah.

And then we have 2,000 in collections. Yeah, that's like the low really old stuff that I just can't seem to get paid off. What do you mean you can't seem to get paid off? I start to save money and then it just doesn't happen. And then I call to negotiate with them to try to. lower it down or to settle and they just give me a run around about it they won't agree to do anything like by paper no they won't well you have to essentially call them like once every couple weeks to just do it over and over and over and over and over and over and over and over and over and over and over and over and over and

over and over until eventually it does work i spent like a good year doing that last year every single week yeah called them yeah okay i they they were on first name with them like with each other and it just never doesn't always work this is two thousand hours so we should be able to knock this Yeah. I'm actually working with the credit guy. That I don't really feel like it was a good plan. Probably not. But he did help my credit go on from like a low 500.

So. Wait, what does that mean? I don't know. I don't really know what all he did from the back end. He was kind of like sending those letters out for me and fighting with them to take them off or to lower them and stuff like that. So you paid someone to. Mm-hmm. Everyone always asked me what checking account I use and what high-yield savings account I use.

Recently, I switched over to SOFI. The reason I did it is because their app is very intuitive and it's super easy to use on your computer as well. But even better than that, their high-yield savings account is all the way up to 4.4% at the time of recording this clip. That is so hard to beat and I am taking advantage of that all day. And not only that, but there's additional bonuses that I took advantage of that you can as well. Set up direct deposit, get a $50 bonus, or all the way up to $250. That's free money. That's free money.

I took it. You could take it too. So check out my affiliate link in the description below. It's seriously awesome. I use it each and every day for my banking needs. I'm okay in specific situations of people like taking advantage of a program that costs like a few bucks a month or something like that to improve their credit. I thought that's what you're talking about and I'm good with that. This, how much that this cost?

109 a month. But only for six months. months. This month is my last month paying for it. How much did you take off? I don't know yet because actually all of those are the same ones that have been there. But a couple of the ones that were paid off that they just hadn't removed. He had those taken off and like the inquiries and stuff like that and late payments.

He had all of that removed and it got my score up. If you want to help get my score up, hit that subscribe button and that score will just keep tick, tick, tick, tick. And we're trying to tick that all the way up to 750,000 subscribers. And thank you to everyone who has subscribed so far. I love you so much. Thank you. I really do appreciate it. Other accounts, 264.

That is a charge off from like 2019. I called the bank and I kept telling them to stop the payment and they said that they stopped it. But then it tried to draft it again and that's late fees. And yeah. Yeah, the student loans. No other debt? No. Why just laid out as a death?

Well, just my friend. I have... What? So a friend of mine has loaned me money throughout the years. Oh, no. I've just kind of paid him back when I can. It's interest-free, and he doesn't really care about getting it back. How much?

He estimates about $7,000. Estimates and $7? First of all, why is it an estimate? Because the way he sees it is, you know, a lot of him taking care of me is I should be paying. back. Are you getting child support? No. Are you with the person? Why are you not going in child support? He's a POS and he was in jail for the first three years. Okay. But have you gone to court? No. He doesn't work. And I wouldn't get anything anyways. He just kind of. I know, but they can still legally squeeze him and get him to a position where he like has to. No, they would just send him to jail.

Okay. Then he goes to jail. It doesn't. He still owes this though. Whenever I want to Whenever I get an address for him I can They'll start billing him But being that we don't know where he is That I can't really They won't be able to send him any bills or

Subpoena him or anything like that Until they know where he is at Baby Daddy on the loose Yeah He's playing stepdad to somebody else's kid though That's cool Lovely Do you have a minimum monthly payment to this dude

Um Friend No No He, if I can pay it back now, that'd be great. If not, it can wait like 20, 30 years. You know, 20, 30 years. What is this?

What is this relationship? He's a really good friend. No, that's great. Well, I guess that does answer my question. Okay. Well, how do you feel about it? It's not where I want to be. I want, I don't want to have that holds with my friend over me.

I don't want to have all the debt because eventually I do want to buy a house. And leave a house for my daughter, but. Oh, geez. Okay. Well, that's, yeah. I'd love for you to get a house, too, but that's, it's going to be a while. This parent situation, before we get into your checking account, I need you. I need you to look at the different services are out there because the further we can get you away from having to take care of them, the better because you do need to be able to take care of yourself and you need to be able to take care of your child.

It's not a selfish thing. It's just you building a good life for your family. And if you have to take care of your parents because there's no resources out there, then that's a different conversation. But right now, I feel it's like, okay, child support we didn't pursue that. We didn't pursue and then we're not pursuing, and we haven't. Let's help with the parents and different resources. Like, these are steps we have to take to at least see what's out there. How old are your siblings?

22. Okay, don't take care of him. No, I don't. 16 and 9. Okay, 16's close. The 16-old, he goes, he's in school, like, work from home. So everything that he does, my mom's kind of, like, teaching him, I guess. But the majority of it is online.

And then the 9-year-old, he's in school. Yeah, because what we need is a hopeful caretaker through, you know, different resources that we have. And then Mama needs to get a job. And I like it. I don't give it. Yeah. It's time for her to work.

She said she wants to. but when I give her the opportunities to do things, like she knows insurance because of me. And I tell her, you know, get a simple job, something to get some kind of money in. Then that's a different conversation. I'm going to cut you off. That's a different conversation.

If you have set up these helpful avenues and suggestions and she's choosing not to, then you need to cut off support right now because you're enabling bad behavior. Yeah. Because if she has been given opportunities that she can do and she is actively choosing not to, then no longer support, no longer support.

Because she is just being able to choose to not do those things because you're providing. So fuck off. That's done. That is done. Because it's not that I don't want them to get support. It's not that at all. They will be better off if she actually starts taking care of things like she can because you've shown her how to.

You're hurting her in a way. And not letting her do it herself, right? Yeah. Yeah. What's she going to do for the rest of her life? What is she going to do for the rest of her life? I don't know. No.

It's kind of gross. I'm obviously very outside on the situation, and I have a very narrow window looking in, but from what I've picked up and from what you just said right there, we're cutting off support today. Or if you want to be sympathetic, I have a conversation. I'm cutting off support in a month.

Get a job, even if it's an extra job, then, you know, work this many hours, bring in this much money, and then I can provide this because, of course, we know that you're taking care of dad until we figure out a situation where, there's a caretaker. Now, in your checking account,

started with 1,400, so ended with 900. I don't know why we're missing minimum monthly payments on card of cards. We'd do 100 bucks. No one knows when that went. Oh, here it is. Okay, so you give your mom 115. You give your mom 21. You give your mom, 210, you give

your mom 50. You give your mom 103. We can't be doing this. We can't be doing this. If it's the only option, that's a different conversation. But from everything we've talked about this so far, it's not. We cannot be doing this. Amazon. Amazon.

So I bought myself a Kindle so that way I wouldn't buy any more physical books. No, we go to the freaking library. I pay a big amount in property taxes. Take advantage of the property taxes I am paying, please. You don't need to. We're trying to get out of debt. So majority of my chase account is for like my rent and my daycare money. So that's where that goes.

Yeah, daycare. How much is daycare costing you? It was 210, which is surprisingly cheap because I had like the assistance. But now it should be nothing because she's in school now. Oh, right. So I'll be saving $200 a month. I got my rent cheaper too because I moved. Very good.

Spotify. I'd listen to the answer now if I was in a situation. Sonic, I definitely would not be doing. We're not doing the Kindle thing anymore. Cancel. Amazon Prime. Gatties. McDonald's, McDonald's, Tritch's Chicken, racing canes,

Cube Smart, Casamoran, Sonic. We're not doing this. McDonald's, Popeyes, tacos. Cash apping out $22. Waterburger, cash apping out, $47. Spotify and cash app it out $50. We're not doing this. We're not doing this right now.

This is inexcusable, unacceptable, when we are in bad, bad, bad debt. You've also had insufficient fund fees of $48 a year so far in here. If we're doing that, we are not getting Popeyes and McDonald's to be very clear. I'm raising my voice out of love to be very clear. It's because I want you to be in a better position. But don't make me want to be you be in a better position than you want you to be, okay? And these actions are demonstrating you're not giving a in my mind.

So you have a lot of your budget. So rent 1415, that's the cheaper rent. Yes. I used to pay 1560 for one bed. Now I'm in a three bed. Oh, wow. Yeah. 133 for insurance.

Oh, okay. Car one. Wait, what's happening with the car? So the car is in my friend's name. The $7,000-ish friend? Yeah. It is on, it is financed. and right now I don't pay it

But it's one of those I kind of want to pay it But if I can't really afford it, it's fine But it's in your friend's name Yes completely in his name Did he buy it for you? Technically Okay

Okay Do you know what's owed on it? I think it's like 3,000 left I'm not completely sure I don't have access to this What's the car? It's a 2005 Honda Civic.

How's it holding up? I mean, every like three or four months something pops up, but there are like really minor fixes. And he's one who pays for the maintenance. I just kind of pay for gas and insurance right now. If you did not have this friend, how would you be surviving? I wouldn't. And that's why I want to pay him back because he does help a lot. For an example, just knowing this area.

We had someone come on. We worked at a Waterburger in a small town. Like, you saw the episode? Dude was making like $75,000 a year. Yeah. Is it insurance? No. Is it hard work?

Yes. Is it late night? Yes. You have the choice to not be borrowing the $7,000 from a friend and having someone pay for your car. You are actively choosing it because you're not willing to go do something like that. Yeah. Why won't you go do something like that?

I can really only work a certain amount of hours because of where my daughter goes to school. Like with her being in school, I'm the only one who really is a parent for her. So that's why I had to like lower down my hours. I used to work, you know, 10 hours every day. Yeah. Okay. So there's after school programs. I would try to take advantage of them when we can. I have to wait until November. Now, November is when they start? Well, I have to wait until after her birthday. Because she's still five and they don't accept anybody under six. That is counterproductive. It's really stupid. And I, hate it but she's a late bloomer so the your two brothers that are 16 and eight or whatever are at home with mom and dad yes can can five-year-old not hang out there um right now she does but

the relationship that I really have with my mostly my dad is kind of strained and he just doesn't like having her there a lot because of her attitude and the way that my brother's interact with her. What? How do they interact? They fight and they yell and it's just a lot of... Well, where's the parenting? Yeah.

There, yeah. My mom tries, but a lot of it's kind of hard. I mean, I've never raised one of those stinky, nasty little sticky things, so I can't comment on the parenting, but... That's difficult. That's why where I moved, it's the same complex as my parents. So the idea now is that my mom would take my daughter to my place. and just watch her there so that way it keeps the separation.

And will she? Oh, that's the goal. What do you mean that's the goal? Is it going to happen or not? You're paying your mom. Is she going to or not? Well, I am paying my mom technically. I just had her key yesterday.

So today she's over there. She is. Yeah. Good. Then loop back around. You can work. Yeah. That's if my dad allows her to.

What do you mean? So a lot of what my mom... Oh, gross. I don't like this relationship you guys got going on. My mom is very hands-on. My mom, Ken, is willing to help me. If I told her, I'm going to work till 11 o'clock, she's going to watch her until 11 o'clock. She'll put her to bed, take her a shower, feed her and everything. But it's my dad that comes in and he's very, I guess, toxic in a way where he's like, no, you need to be home with us.

You need to be with your kids. Okay. And he's... Dad, I'm not giving you guys any more money. if she's not willing to help. Boom, there it is. If he chooses, okay, then good. Good luck on their own.

And the money that you're doing this will pay for after-school programs, private ones, if necessary, until there's the more public option. So there we go. There's an alternative. But you need to work. And there's many other single parents out there who do work relying on family or not. Because there are, this is a privilege that we have in a larger city, you know, top 10 population city in the country.

there are options. Some of them cost money. Some of them are public. Some are resources that are provided based on income situations. There are things. It just depends. How hard do you look into them? Well, so the daycare that I had her at, I can pay $200 a month again.

And I would have to take essentially like an hour and a half from work to go pick her up. And then I'd be able to work an additional. Well, traffic to get there and back. It's about like 30 minutes. What I mean? Find a place closer. Like daycare? Yeah.

There's not many that I've seen. Have you looked? How hard have you looked? A couple of a few times. Yeah. See, this doesn't sound like. It's a new area. I do have to look.

It's called Google Maps. Yeah. I mean. Yeah. I'm also very protective of my daughter. I don't know. Good. You should be.

Because like right now her daycare is like right behind my child. Interview them. Yeah. I'm not against that. I'm not saying put her in a dumpster and let the raccoons watch her while you're working. Yeah. No one's suggesting as much. There's personal responsibility that has to be taken in account.

of them making sure that they're good to go, but also you looking and finding people so that we don't just keep making excuses. Yeah. I mean, I like the daycare that she's at because it's right by my job. So it's like I go home and I come back

and then stop and finish. So it's a lot closer. Well, again, it sounds like we have to get another job anyway. So that might not be a factor. Yeah. My goal is working though? Well, yeah, but okay, that's a fantastic goal. Right now I don't give a shit.

You're working in where you can make money. Go be a Bandi Express manager. General manager. Go through the training. They pay a $1,000 of money here. Pay a ton of money for second and third managers. They're here. You're making $18 an hour.

I think their entry-level position is something like $20 an hour. So come on. Now you're getting a little commission. But we can get you more money in Austin. We can. Gas, $120, fair. Credit, minimum monthly payment. That's the credit guy that I pay.

But this is the last month that I'm going to pay him. Loan 160? I think it's like 155 or 160. What is? The loan. What loan? That same loan that is on my credit. The $1,100 that I owe.

It's like $155 or 160. What? The prison loan? Yes. Oh, okay. Subs, 40. Uh-uh. Done.

Doesn't exist. No point. 100 for your phone. Okay. Sounds like a. It's finance probably, or you're with a carrier that's too expensive. It's expensive. Okay.

Switch to like mint. Yeah. There's really no reason to have this. Well, I'm also financing my phone. I had to get a new phone because it wasn't updating, so I had to get a new phone. Did you take it to a place to make sure? Yes. Yeah, so we tried to update it with like the phone company and then like with one of those like little little phone repair shops, but they couldn't make it update either.

Okay. Okay. And electricity 50. Okay. No gas, no. No, everything's included in the rent. Okay. So that's your budget, huh?

Close. You don't have your credit card minimum monthly payment. Or your student loans minimum monthly payment. But that's okay. So immediately it makes me nervous. I'm actually going to minus that credit guy of 109 because this is the last month and that it's done. But this still makes me nervous. $2,357 just to survive on a monthly pay.

basis. No, we're minusing 4 for 40 for subscriptions as well. Well, that's canceled. That is my gym. I got to the gym. Okay.

Well, that one's fair. So we'll add 15 back. So 2,332 to survive. Okay. Which makes me nervous because you bring in 2008, post taxes and everything, meaning your needs are 83% of your income.

That's gross. We can't be doing that. It's not even close. Why'd you have to get a three bedroom? What about that complex having a one bedroom? Like, um, you'd think it'd be.

They didn't, have any one bedrooms available for them. I needed to move. The two bedroom was only $100 cheaper. So I figured. I know that doesn't seem like much, but an extra $100 that you can put towards your debt makes progress, though. You don't have a bunch of wiggle room here. In your current job, you have $468. No, we didn't put... I actually don't spend a lot on groceries. That's what you were thinking. I spend like... Well, you go out to eat every other day. 300 for groceries. The kid's older now.

So $100 for total pay for toothpiece, makeup, blah, blah, blah, blah. Everything else needed to keep the house survive. Now, now, now we have $68 left on a monthly basis. $68 left on a monthly basis. $68 because what's needed to survive is $2,732 death. You say your average income is $35? That's not even close to what you said. And you said low is $2,800.

So what you made this last month was your low? Yeah. Yeah, in July it didn't work so much Because we were trying to figure out where we were going to move Average is actually 3,500 Usually, yes The first half of the year I was averaging about 3,500 Second half of the year, two months in

So far, it's not been the best But again, like I've been, so this month and last month was mostly focusing on moving And trying to figure out where we're going to move to And then this month was actually moving And then I got sick And now I'm back at work. All right, 3,500.

We'll say that then. So now This is just me taking your word for that We have an extra $768 dollars on a monthly basis Because you're about to work You're doing that we're not having low months anymore It doesn't exist A big part of my monthly payment

My income though is also At work we get bonuses if we hit like certain quotas So the first half of the month The year I got All of the bonuses It's just June and July I didn't get them. Yeah.

Well, kill it. You got to make it now. You got to do it. Gas, you only spent $84. Your bills were pretty expensive. Subscriptions was $30. $80. $400.

$400 is what you ate out. $400. Bullf was like $450. $42 at Amazon. Church of Chicken. Keep Smart was expensive. I had to store my stuff for a few days. during the move, so I had to pay for the first month anyways.

Of course, you sent your mom a lot. Have money. Okay, $768. For three and a half months, following this exact budget, you were saving up $2,732. You're putting that on a high-eal savings account. I use SO-Fi. You can use whatever.

I like that because of sign-up bonuses, and it's 4.5%, which is, like, amazing. But whatever. Put it in there. That's your emergency fund. It's lovely. Lovely. Good.

Three and a half months. Let's just call it four months because we're like a few, because you're starting right now, half of this month. And then three more months. Okay. So we're four months in considering this being month number one. Four months in. Capital one paid off month number five.

That is paid off. Personal is what we attack next. That'll take two more months. So six, eight, personal loan is gone. What gets a little complicated is $14,3008. student loans. So what I would do is I'm going to assume we're going to take anything over 5%

pretty aggressively, which I'm going to assume is about $7,000 of it. And now we have a little extra money to put towards that we have about $850 we can put towards it now because the minimum of the payments are decreasing. Oh, we have more than that. We have about 900 now. So 7,000 minus 900. Take an additional eight months.

So we're 16 months into this. So 16 months. into this. Student loans are paid off. The high interest student loans are paid off. Personal loan is paid off. Capital one is paid off. And you have a one month emergency fund.

Okay. That's just too long for me for what these balances are. Now, after that, it would take another, another seven, eight months to pay off your friend if you want to. To have a conversation, figure that situation out. That is for you guys to figure out. I personally would, me, but you guys have a unique relationship, whatever. Do your thing. What I would do.

before I pay him off actually over the course of about two and a half to three months. So call it month, end of month number 19. Collections just pay it off. It's 2,144 paid off. Get it off your credit because you want to buy house when you start building the credit score now. Well, the problem wasn't like paying, like getting them paid off every time I would save,

I had the money, but whenever I would write them to agree to completely remove it, It's where I didn't show up anymore. They would say that they could send me a letter, but then they never did. And so that's why I held off on paying it because I didn't want to pay it. And then be like, oh, we never agreed to that. Okay. So we just restart that process at that time and just really try to work with them on that.

I mean, trust me, they're they can be a pain. But. I got down like four or five thousand though, kind of negotiating before now. And then probably need another six months or so. No, six months. No, that'd be great. But it's not. Because before you pay your friend off as well,

as long as the relationship is still good, I want to have a fully funded emergency fund. You have an extra $1,000 at that time. So you need $16,392 for a six-month emergency fund, minus the one month you already have. Damn. It's going to take another 13 months. To have a fully funded emergency fund.

It's the income situation for the area. For the area, your income is so low compared to what's needed to survive here. Yeah. I'm trying to get a raise to like 20, 22 an hour. It's not going to do it. We need to get to, again, 75,000 being a manager at Waterberger. And they want overnight managers. McDonald's wants over to.

I can't work overnight because I don't have anybody to stay with my daughter overnight. That's true. Like my availability is basically. And they cannot stay at Nana and Pappas. No, because they're five. deep in a three-bedroom as well okay well we're trying to do what we can do to get daytime jobs I got that overnight's definitely easier for that quick income but I just want to do like a work from home thing so I can do the overnight work from home is lovely it is so much harder to get a job

work from home right now so what we're doing right now is yes of course apply for those and keep applying for those but right now we're also just doing as much money as we can get as quickly as possible so this is a three four year situation and your current job Let's go make more money turn it into a two-year situation because you're not having any paid-for-fund for four to two to four years depending on how you go about it. No paid-for fun, not a single cent. Other people pay for it. You're no longer paying your parents. That wasn't included in the budget.

Nope. Nope. Not a thing. Not the thing. I want to take a brief moment to thank today's video sponsor, ORA. Are you sick and tired just like me and everyone else, honestly, of receiving endless spam calls every. I mean, look at this. Let me open my phone. Look at this. This right here is all spam. It's crap, except for one friend. There's one friend phone call. The rest is spam. Data brokers are making a fortune

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Let ORA do the hard work of keeping you safe online so you can focus on other things with peace of mind. Go to aura.com forward slash hammer or check out the link at the top of the description below. Thanks again to Aura for sponsoring this episode. I can relate to the getting out of debt situation. I've never been in a situation where I've had to take care of family members, and I've been very blessed and privileged in that situation. This is hard. I can't fully relate to it, but I at least get it from mathematically and emotionally that it is difficult.

And I sympathize, and I am sorry, that that is the situation that you and your family are in. I really do. One thing we just cannot accept is enablement, enablement of bad behavior. That's kind of what's happening from at least how you've described it. That's no longer an option. It's no longer an option because you not taking care of them and sticking with this job when you have good months all the time

still takes four years for you and your child to be in a decent position. Four. You give them money as much as you give them now. going to take a decade, decade and a half? You have nothing for retirement, do you? No. You have nothing to a savings in account? No.

So you're going to be in a position where your child is forced to take care of you at some point. Do you want to pass that burden on to another generation? That's what I'm working to get out of action. That's exactly it. We are making a generational change by making the sacrifices now. And a lot of that sacrifice might be a burden, might be kind of a rift in a relationship of people who have expectations because you have

coddled and catered to, I guess, as Dave Ramsey would say, misbehavior. And that's what they're doing. You just, you cannot, you can not enable that anymore. And I know it's so much easier said than done because they're your parents. You love them. You don't want there to be a rift in the relationship. If you guys live in the same complex, I get it. Mathematically speaking and emotionally speaking, we just can't do it anymore.

Yeah. My biggest worry is like if I don't help them as much as they do that it would be like, we can't watch your daughter anymore. I have to figure that out and spend even more money somewhere else. I know. So if they do, if they do watch your daughter, okay, monthly allowance for that, a set amount that you do. But that extra time that they're watching your daughter, you're making up in additional income.

That's the alternative in that situation. So yes, a monthly allowance for her watching your daughter when you need it, not just when it's convenient for her because you're paying her to do it like a job. And then you're working those extra hours, making at least double what you're paying her. Or else there's no point. So that's the alternative. Does that sound good to you? That does. That helps my friend agrees with you.

He's like, he listens to your videos and he's like, everything that he says is the same. I agree with it. And I'm like, yeah. but he's nicer about it. He's like, he's not nicer. He's mean. And I'm like, I don't think I'm mean.

I think I'm just very forward. Forward. Yeah. I try to, and I make sure to try to get the point across because again, we had the conversation at the beginning of this episode where you were kind of like, it's not good, but it's not that bad either. No, fuck you. It's bad.

Yeah. But that's a loving. Yeah. Because I just love the word. It just rolls off the tongue. So, yeah. So, no, everything. here is out of care and concern, but it does come across in an aggressive way. So I do get that.

But there's a point to it. There's a reasoning behind it. And I've seen it from updates that people have sent us via email who've been on the show. People are making progress. You can make progress. There is a good side at the end of this. Yes, the whole show. Sure, it's fun to film. It's fun to be here. I have fun having these conversations. I love talking about money. You all love to see insights into other people's financial situation. That's, you know, that's great. I wanted that show. The show didn't exist. So I made that show.

But there's a bigger point here. People, this makes me excited and so happy. Just like dopamine is flying right now. People are literally sending us email updates. They are getting closer and closer to out of debt. They are making more money. They are making progress. And if you follow what we talked about,

about today. That's you. That's you. You have the ability to get out of this in two years. If you go get a better job or work another job, well, the parents watch the kids and you take care of public resources as well. That's you. You have an incredible life ahead of you. All you have to choose right now and only you can, only you can choose it, will you make the sacrifice necessary to do it? That's your choice. I want to. I'm going to try to. I'm going to try to. too. I don't like the word try. Yeah.

Don't like the word try. It leaves a lot of room for excuses. Yeah. But yes, try. I want you to as well, but once without actions is just both. That's nothing. So put the actions to it. Have the tough conversations.

I believe in you. Get out of debt minimum by 30. Then you're probably contributing 25% to retirement. Live no more than 50% for your needs, which means your income is probably going to have to be higher for the area of is the reality of the situation with a single parent household because wants or needs could be no higher than 50% of your income in this area and 25% to play ketchup is going to go to retirement then you can have 25% for fun spoil the kid that's awesome do it go on vacations

that's awesome we're not in that moment right now but minimum by 30 I want you to start that but you can do that by 28 what are you actually going to do you know you more than I know you Well, you know you more than anyone. What does this look like when you leave here? I am going to stick to it as much as I can. Because I do want to not be in the situation that I'm in. What is as much as I can, though, to you? Knowing myself, I'm probably not going to be as aggressive about it as I should be.

Why, though? You see how bad it is. in this being aggressive still takes four years. What does it look like not being as aggressive as that? Mid-30s? Early 40s? How is that worth it to you? I thought, okay, well, now I'm a little upset.

I thought what was most important to you was breaking that cycle of the generation of kids having to take care of their parents. You don't take care of this now. Your kid takes care of you is forced to. choose the adult, responsible, mature choice, and break that cycle. Not for the sake of you. Not for the sake of you. For your kid.

It's worth it. Come on. I'll look for a better job. Once I get it, I'll start there. I also don't want to forget. At the end of the four years, maintaining this situation following my very strict budget, But you still have the friend to pay off. You guys need to deal with that in your own way.

Whatever way is possible. If he forgives it, that's awesome for you, obviously. He won't forgive it, unfortunately. Oh, I thought you mentioned earlier. He might. No, he's not worried about me paying it back. But at some point, he does want it back. After you have your fully funded emergency fund,

just because I'm sure he cares about you being in a safe place more than he cares about getting his money back, then pay it off. So it's probably going to extend like six and a half, or four and a half to five years at this point. probably four and a half. Maintaining this with a very strict budget, not paying parents. So there's a lot of variables here.

This is up to you, but I wish I was walking away more optimistic. You've ruined that at the end. I still love you. I still want you to succeed. Oh, don't go into it with that mindset that you just had. Go into it with a run and a kid. And I'm going to give my kid a better life. And I'm going to change the cycle of whatever.

Any final thoughts? I think that's it really I don't know what else it's definitely a very complicated situation especially when it comes to the overall family situation so tough conversations we had tough choices and tough sacrifices hammer financial scores spending within our budget I mean it was ridiculous zero out of ten debt in collections zero out of ten emergency fund there's nothing zero out of ten real estate and that even part of the picture is zero out of ten so hammer financial score zero out of ten make sure to check out all the resources linked in description below, I either use them or would use them in specific situations. Also, whoever has the most viewed TikTok or YouTube short using a clip from this video, I'll send you $100. Post however many times you want, but you must tag my YouTube slash TikTok at. And put YouTube Caleb Hammer in the title slash description.