Financial Audit - Poverty From TikTok Brain Rot

Episode Date: April 24, 2024

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My name is Jordan. I'm from Colleen, Texas. I'm 21 years old, and this is Financial Audit. Thanks for coming down to Austin. So, what do you do for a living up there in Cleveland? I am a fraud case representative. Fraud case representative in like the banking industry.

Yeah, banking industry. Very good. What are we making right now? I net $2,200 biweekly. Fly weekly, okay. How do we feel living in clean off that $2,200? Poor. Why?

I don't think that's enough money. Everything is just going up. Sure. Everything always goes up forever. that's $52,800 a year net. I wouldn't necessarily call that poor. Are there decisions surrounding your life and finances that are making you poor and the feeling poor versus the actual money that's coming in and literally being poor, which wouldn't be with that income? A little bit of both, but, you know, that's your opinion.

Huh? That's your opinion, but it's a little bit of. I don't know. I'm asking you. Well, no, I feel like I'm just not making enough money. you're not making enough money. You don't think it's anything to do that you're spending or the debts you've gotten yourself in

or any of the life choices that you've made. It's only about the money that's coming in? No, I wouldn't say to it. I wouldn't say that. About 50-50. About 50-50. Okay. Is this the industry that you want to be making a career?

No. What do you want to be doing? Accounting. Okay. So, I mean, you're already in the finance space. Accounting, I could see a natural transition. What's your degree in? Do you have a degree?

No, I just literally put a pause to my school in maybe about two weeks ago. Okay. Where were you? A&M. Okay. How far were we into it? Were we going for accounting? Yeah.

This was my last two years. Oh, this is okay. So you're halfway through college? Yeah. So what made us drop out, especially if that's the career path we want to go down? Finance, basically. Yeah. So I was on a program to where if you made under 45,

thousand dollars a year you didn't have to pay to go to school okay but now since last year this last year i made way lower that so now i have to pay okay and what's the tuition i don't have no clue i know i can't get um enough aid because my parents um make they're high earners yeah so yeah so anything you'd qualify for any type of loan or anything like that would probably be interest rates higher than you'd like to see yeah okay I mean, school is certainly an investment, whether or not you're getting it for free, though. Accounting, you can make a very good career in accounting. It is.

It is. But I think, well, if I'm going to go to school for that and pay, I have to work out this first because right now it's not going to work out. Wouldn't it make more sense to put our money towards school instead of fast food and holding balances on credit cards if that's what we care about? Like, where's our priorities? Because I think it's more of a priority being skewer. And then you're already kind of taking a little bit of a victim complex on, oh, I make a pretty strong income from my age, but it's not enough money. That's your opinion. I don't make enough money.

I don't think the- Enough money for what? To live. Well, that's objectively incorrect. That's your opinion. I don't think- No, no, that is objectively incorrect. How?

Mathematically, that is objectively incorrect. How? What do you mean? Mathematic. What do you mean, how? How? Who's living off her 50%? $2,000 here.

Dude, what is the median income? First of all, the median household income in the United States is like 65. And your net, what were you again? 52. Net? Yeah, exactly. Median household in the U.S. I'm not saying you're living in luxury, unless that's what you're conflating.

Median real household income was $74,000 in 2022. And median salary in the, the United States, 59,384 before taxes, USA, today, 2024. So you're making above that

before taxes. So you're making above the median. The median. That's in the median. So you just asked who's living off of that? The median's living off of

less than that. Does that answer your question? Yeah. So you're wrong. Kind of. What the f... I'm kind of wrong, but... How?

Okay, well, maybe this is my situation. I feel like I'm not making enough money. Okay, I think it's your situation based on your decisions. That could be. It is. I've seen your finances. It's not about the income that's coming in. It's about your lack of discipline. Your lack of budgeting.

You're fucking around. You've made bad choices. Bad choices are okay. I've made bad choices, but we correct them. You're not correcting them. Yeah? If you say so. Okay, okay, I'm going to agree with you 50 feet.

So object, I'm going to agree with you 50-50. What the fuck are you? Do I make bad decisions? Yes, but I don't think that it plays, you know, a lot on my finances. I don't think it's just, you know, me. I'm not the problem. Me, I'm not the problem. Is that what you just said?

Was that what those are words that just came out of your mouth? I'm not the problem. I think it's my income. I need more income. 20% of your spending, 20% of, goes to going out to eat. You need to eat. Buddy, another 20.

Yeah, you need to eat, but 1.7% goes to groceries. I need to eat. 20% goes out to eat. I need to eat. Are you single? Are you only feeding yourself? I'm single, but sometimes I'll go with my sister right now.

Okay, but you only need to feed yourself. Yeah. Okay. Well, you already spend. $535 more on food a month than I know you could if you followed like our meal plan that we've created that is healthy, sustainable, the amount of calories you need on a daily basis.

You're serious? Yeah. Oh, I didn't know that's that much. Okay, well, maybe I do that. Yeah, maybe it is your fault. Maybe there's a little bit of responsibility that can be here. If that's what we get out of this conversation, I'm going to be very happy.

You know, it sounds like personal responsibility is basically non-existent in your life and I would love that to come into your life. Yeah. Okay. So you're going to go through the budgeting program. We gift it to every guest. So you get that. It's going to be great.

You're going to go through that. You get access to our meal plan and you're going to follow all the education. So make sure you do that. Okay. So your finances, from your perspective, and I'm already nervous to hear what you're about to say on this. But zero to ten, what is your score? And then I'll give you my score at the end.

Zero to ten, zero being the worst, ten being the best. I'm gonna say at three okay so three and if you want your hammer financial score get for free in the description below three out of ten why do you think it's a three out ten what's going on through finances today um well I'm I'm pretty much paycheck to paycheck but I do have 401 so that's a good sign so that's the only reason why I get myself for three okay because retirement is starting okay uh five dollars forty nine cents and savings and this U-F-C-U, this checking account, 69 cents.

I don't use that. Okay, there's just a transfer account. Uh-huh. Now, we seem to have some kind of loan. Is this a personal loan? 1,353. What is this loan for? Oh, that's a line of credit.

A line of credit that you have up to $1,353 currently. Yeah. That's 17.9% interest. What are you using it for? Random stuff? It's never been paid off since I took it out. It's probably been up to $13. It's my income.

That's the problem. It is. You're borrowing for bullshit. $1,353. $11 is what is owed at that 17.9% interest rate. And it's only, it's a $49 minimum wage payment. I mean, it's going to take forever to pay off. And that interest is going to be crewing forever.

At 21, man. At 21. That's just so young to have something so bad But Yeah, give me grace Just a little bit Huh? Give me grace

Ew What? Why would I give you grace? I'm 21 You're 21 You're three years into adulthood If you're still a child Then you shouldn't be a lot of drive

You should be able to live on your own You're right Yeah You're right Uh huh I'll take it Grace Grace

Grace There's no Break Break me off a piece of that Kid Cat Bar Have a break Have a Kit Cat

Have a Kit Cat grace plus you and your grace you say you have a 401k but you have a 401k loan I do that was for a good reason please

in October I left my apartment now I think it happened October 29th my lease was up the last day of October I left my apartment to go to my mom's house

when I got back my whole ceiling was on the floor and insurance and all that did not want to cover it due to the city code came out, said the roof was never put on right in the first place. Okay. So they didn't want to cover anything.

Rents his insurance, correct? Yeah, renter's insurance. And my apartment complex, it was like the weekend. So when I got back, my lease was over. So I had to move into another. They usually have maintenance or someone 24 hours, no. There was, no, this incident maintenance couldn't handle it. Like my whole ceiling was on the ground.

Yeah. Yeah, yeah, yeah, but you would have been able to get a hold of someone that could have gotten a hold of someone else. It took them hours. Okay, sure. Hour. So I had to buy new stuff for this new apartment and I'm being forced to a new lease. Well, hold on. What do you have to buy?

Furniture. What did you have to buy? Tell me. Couches. No, you didn't. Eddie. Had to? Yes.

I think you'd get a lived without a couch. Yeah. Couldn't put an air mattress on the ground. I lived on an air mattress for my first nine months in Austin. I'm way bigger than you. that mattress going to do? Get a double thick air mattress. That's not going to work.

Mattress on the ground. Okay, that would have worked. All I'm saying is you did not need to. You used the word need. Do I need a couch to survive? No. Now, do I want you to live without this stuff? No, I'm not saying that.

But taking a loan against your own retirement that has just started for something that is not a necessity to live. So I disagree with your. premise there. It was more than that. Okay. I thought I was going to have to get another apartment or something like that because I was at the end of my lease. Although I had renewed, they was like, well, we're not going to, whatever that is. They're not going to accept it because my apartment is down. So I moved, they moved into a two-bedroom. Okay. So I had to sign a whole new lease for that two-bedroom. I was paying $650 for rent. And when I signed a leave, they was like, well, we can't give you this two-bedroom. Although that

happened but we can't get you this too bedroom for 650 so you're going to have to sign a whole new lease and your new rent will be a thousand and sixty dollars okay so i was debating well should i just move to another apartment a complex or why is this bargaining and sir 401K because i didn't have no money i didn't have no savings okay to pay the little increase in rent what was the rent going from to 650 oh that is to take that is a big jump okay that's bit on their part yeah Okay, and what did you end up doing instead? Uh, signing the loolies. With, with a different place?

No. With them, for the 10,000, uh, 1,000? Yeah. I want to take a moment to thank today's sponsor, Cook Unity. If you've ever watched this show before, then you know that I love food. Not only do I love food, but I love all different kinds of food. Cook Unity is the revolutionary chef to you delivery service that's bringing you the culinary wonders of top-not chefs right to your table.

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meets world-class taste. All right, and then we have a couple of card of cards. Here's with that credit union, A visa. Currently owe $1,06.34 of the $25 minimum monthly payment. You made a minimum monthly payment. And then you went and purchased. So, and there's fees. There's interest. We're purchasing.

Yeah. Again, it's our income. That's a problem. Right? You're purchasing on a credit card that's accruing interest. It better have been for necessities than if the income wasn't strong enough. Oh, wait. It's for a smoke shop and vape.

So I'm going into a gas station. getting some bullshit McDonald's. And what's this insurance debt protection? If I was to ever get hurt or something like that or die, it'll cancel like that. It'll pay it off. Or if I was to lose my job, it'll pay it off. Oh, if you were to lose your job?

Pay what off this? Yeah. I was going to say if you died, it wouldn't matter unless someone else was on it. But, hmm, it's interesting. It would actually pay it off. Okay. But the McDonald's and the smoke shop. and going in the gas station and getting some things.

Yeah, definitely necessary, right? To put on a car that we're getting fees. But everything else was. McDonald's was necessary? I had to eat. Are you? What are you? What are you?

What are you? That was a $12.30 a meal. If you went for a meal on what we do, your meal would have cost it. Cost after averaging out, averaging out against 28 days, three meals a day, which is what we have in there, because you're meal planning about $3.57. cents per meal. Oh, that sounds pretty good. That does sound pretty good. That's cheaper than that McDonald's one. So no, that McDonald's one does not look pretty cheap to me. Okay. So did you need it? At that time, I would say yes. Why? Have you never heard of a grocery store? Yeah, I go to the

grocery store sometimes. Yeah, one percent of your spending or whatever it was. Still weird. Have you ever heard of a sandwich? Yeah. It's a great new invention. I eat sandwiches. Yeah, it's cheaper than McDonald's. Yeah. Is it as tasty? No. Trust me, I love me some McNugs. But you can't afford it, buddy. You're putting the sound of cards you can't pay off

and it's accruing interest and fees. Okay. And you're having a debt protection on this. Like, you're already worried that like, well, I can't pay this off if something bad happens. If you're having the worry. Okay. Do you cook?

Uh, no. Okay. I've upgraded your apartment, I assume it has a little bit of a kitchen, no? Yeah. Does it have the ability to cook things in it? Okay. It's barely used. And we don't cook because.

Okay. I got a good excuse. I work 48 hours a week. Okay. Even though I work from home, make 58 hours a week and you can't pay a free card because you spend it all. Go ahead. You wouldn't have to work as much if you knew how to budget. Go ahead.

To you. But. I don't feel like I know going out to eat I understand being naturally defensive like when you're on camera for the first time and I'm going through your shit it's much more invasive

than a lot of people think when they're watching the audience so I get it but to you that's the dumbest I've ever hurt what you mean to you we already I already told you how much you spent going out to eat to you and this is you to you to you there is simple $300 is less than the

$900 or whatever than you want them to eat. So to you, fuck off. To you. Okay. That's the stupidest shit I've ever heard of my life. All right. So I get you might be a little nervous, naturally defensive. That is what happens on this. But also, shut the fuck up. Okay. Okay. Okay. And I'm the one that's allowed to be mean. I'm the Caleb Springer. I get to be mean in the thumbnail and title. It's what we all agreed upon. Not you. Be nice. Give him support. He had the balls to come on. You don't. $288 and 39 cents on this card. $7.71.

Interest is accrued, paid a minute and month of payment, but then we spent more than that on it. So, again, second credit card now. We're spending money. And then we're not paying it off. In interest is agreeing. It's okay. Okay.

Let me explain. I'm going to pay that off today. And I'm not going to use it again. Is that why it's okay? Yeah. Okay. Oh, that's about to, you have no idea. I was about to, like, reach across this table.

going in and getting some bullshit some mart and what do you you stop at like the the gas station and you just get so many purchases is right by my house and congratulations especially if it's on everyone has a gas station near their house i'm proud of you well i'm thrilled for you if it's on saturday or something like that oh yes known for the gas station days Saturdays yes i am getting a monster or whatever to work on Saturday because i'm not required to work on Saturday but i do so good get a get go to Costco and get monsters in like a big pack. You're losing so much more on these

individual purchases where you could get a big pack. I agree. I agree. I could. I just don't go in grocery stores. I don't know. That goes complete. Brandon, can you play the clip from like five minutes ago? He's like, I know grocery stores. I go there. Yeah, I go

to the grocery store sometimes. I don't grocery shop. No more. What is this DBA air up? DBA. Aaron your tires is maybe? I don't know. It's like two bucks.

Oh, yeah. Yeah, that's what it is. 32.4% interest on this and you're fucking around with it. That is an insane interest rate for you to fuck around with. Oh, gosh. You agree. But you still do it. All right.

Sick. Great. Walmart Capital One. Wallie World. The card. We made a minimum of the payment, but what did we do? Shocker, we purchased. more than we put towards it.

That one's okay to. Huh? That one's okay too. What you mean? Well, I'm going to pay it off today. So why haven't you in the past then? No, I have. But I always... There's no...

I can't get excited about you paying it off today. Yeah. Because if you've paid it off in the past and then this is where we are and you're losing interest, $6,000, $0.36 and it's stacking across all these, then why would I possibly be excited? It doesn't matter if you pay it off today if next month. it's not paid off again. Right.

And I agree with that. But, you know, it's going to be paid off. I'm going to try not to use it. I won't say I won't, but I'm going to try not to use it. What am I talking to right now? You're like a wall, a brick wall of just like there's some. Okay. I feel like my words aren't making it through.

Well, I can't tell you that I'm not going to spend on them no more, but I don't know what the future holds. I'm going to try. Can I ask why you're here, please? Because I need help. I need a plan or something. I get the natural defensiveness, but this is like actually stupid. Your logic and the words you're using are stupid.

And where are you getting the money to even pay these off anyway? You have $300 in the statements that we have. Both of these were, both of these combined were. I mean, the last one was 288. This one's 268. Where are you paying them off from? my chicken's a guy i got paid today oh so it's one of those things yeah i got paid today so i'm gonna pay them off i yeah that's such a worrying statement

where we wait until like you were just so unfinancially figured out like you have you are structured in no way whatsoever your finances are just a mess they are that it's like a the moment we get paid oh we're gonna do it and then we're gonna go into debt again and then it's a going to accrue interest and we're going to go we're going to do this so for raising canes that's what we're going to allow interest to be accrued on and that's what i have a problem wait i don't i don't know how to just stop stop what like after i pay them off you know i'll go okay with like a month or okay no that's great that is a great omission i am so happy you said that you know what that means you're not a credit card person chop them up close the accounts you can never use credit cards again

until you have financially proven to yourself that you're responsible you're able to budget you're able to your spending, which you cannot now and you've self-confessed. I'm so glad you said that. Congratulations. Okay. That's the best thing you've said all day. I may chop them up, but I'm not closing. Why?

Because then he can just add him to a virtual wall. Then he can just go request a new card. If you do not have the discipline, if you are not able to, if you don't give a shit enough to care about your future, then what's the point? What is the point of chopping them up that point? I understand what you're saying, but I need that credit age for our... Oh, you're just...

Everyone these days. You do? I don't care. It's taking advantage of you. You're not taking advantage of it. How much times if I had to say this? Buddy, in what world is this helping you? I agree with you on that point.

But in October, you know, when you apply for another apartment or whatever, you're going to need a decent credit score. So it doesn't matter because in 2021, according to your application, you paid off a ton of debt. Oh yeah. A lot. Yeah. A few years later, we're in debt.

So you continue to keep these open regardless if they're chopped up and then reordered and put in a virtual wallet or whatever. It doesn't matter if you pay them off through what we talk about today, given your history three years from now, you'll be in bad debt again. You are not disciplined. You cannot utilize this. Credit cards are for the rare few who are engaged. incredibly disciplined with their finances and they can actually utilize it. You're not that person. It doesn't make any sense.

Okay. I agree. So you will close them then because you agree with me? I will close. I will close most of them. But I got to keep one. You know, I just got to keep one.

Why? You're going to blow it up again. Okay. Okay. So you say I shouldn't keep one. Yes. You can't. You can't.

You can't. Okay. Because you're just going to match. max it out and that's going to fuck your credit anyway. I will close them. I will close him. I understand what you're saying. What a lot of people try to say where they want to take advantage of credit?

What are you trying to take advantage of credit for? You said you're getting a house? I'm not getting a house. But I have spoke with mortgage loan officers. I've been speaking with them for the past couple months just to see where I was at, you know, monthly check in, see how much house buying power I can get. But you said you can't afford to live. are you getting a house that doesn't make any sense because rent is just so expensive right now rents

cheaper than mortgages well i'm not looking at no like you know house no big old house or what now i'm just looking at like 150 000 what does they get you in that area a nice three bedroom two bathroom two bathroom condo type of thing no house if if that's if you can get a nice three bedroom two bath for 150 thousand dollars in there you have absolutely no excuse to say bringing home net $50,000 is living poor. That is the most aggressively stupid thing I've heard. And yes, if you close your accounts, it will temporarily ding your credit. But for you, for someone who maxes their shit out over and over and over again,

that's going to do more damage in the long run. That's going to hurt your score by being over that 33% or 30% whatever it is, utilization. It's going to hurt you and your finances by maxing them out. I would rather you have a little thing now. Trust me, we have more debt that will keep your credit score alive. Okay. $150,000 for a house. That's incredible.

Plus, do you want to go back to school anyway? Does it just settling down on a house make sense? Um, no and yes. I'm confused on that, too. Like, I don't know. If you're confused on it, don't get a house. You only get a house when you 100% sure know what your plan is. Okay.

So no. Yeah, no house. Oh, a credit card that is actually not terrible. a credit card that you don't hold a balance on. Good job. Navy federal. Okay. That's the one I'm keeping.

Well, no, because it's the behavior around it. You failed three of four. You failed three of four. So all those bad behaviors will translate to the one you have open then. Right, but that's a secured $200 card. And that most, it's only like two bills that are really going in. And that equals up to about $200. And it's paid off every money.

Well, did you say there's only two bills going on here? Yeah. Plus a little... Oh, that's interesting. Chili, Starbucks. An Apple subscription thing. An Apple subscription thing. Netflix, McDonald's, Texas Roadhouse.

Two bills. Okay, maybe not on that... The fuck are you talking about. Maybe not on that statement. But... I'm only going to go out to this statement I have. But yeah. So what are you talking about?

Okay, well, maybe not. But it is only... Cut it up. You don't know how to use crap. credit cards. You were going to ruin me. It's like you have a gosh, just like you're incapable of just recognizing reality. I do.

But you said there's only two bills on here and then I had it literally right in front of me. Okay, well, maybe not that statement because I think I did get paid three times. So I was like maybe I already paid it off before it and spent somewhere. but yeah do you want scissors to chop up the card are you real about it i am so you'll do it oh it's not we're not here to play around this is changing your life man this isn't closing your accounts unfortunately but it is taking a step at least showing that you're willing to do something and that this conversation isn't a complete waste of time this is why i'm a hard is a gentleman see how hard it's taking a bust through this brick wall right now trying to

cool aid man through this guy okay wait that those are all card cards are they yeah I want to make sure not cutting up a debit card how many got right there four good okay now just to be clear this is this is your choice doing this I don't want you to do anything you're uncomfortable with. I think this is a great first step and I highly encourage you to do this, but I do not want you to feel pressured. Yeah, I'm serious about this. I'm kind of my... Okay. I had a guy. Might want to do like two at a time. This is the kind of stuff I watch to get off at home. Yeah. That's it. Okay. And then the name is Navy Federal what you use? Uh, that's my main chickens. Okay. It's 85 dollars in there. Yeah. It's not much better.

That's how it. Then $200 in savings. $200 and saving. Yeah. You thought you had more or less? No, it should have been nothing in there. Okay, so there's nothing anymore? That's just like a transfer account. Well, money goes in and money goes out.

Okay, well, no money went in, no money went out. This statement, at least I'll let you look. Oh, sorry. Oh, yeah, this is money went in and money went out. Wait a second. I think I've misordered something because you also have a car, right? Yeah. Do you have a car debt?

This is just a summary. Or was that card? I glossed over that second debt. On another page. Because that was like your most debt. Wait a second. What's going on here? It's Wednesday.

You need a free $20. Usually you get $5 for signing up for Acorns. But using my link in the description below, you get a free $20. There's no strings attached. Make your Wednesday better by getting a free $20 for signing up for an amazing platform in the link in the description below. Got it. Nissan. Marano. I don't even know that car. I've never heard of that car.

I didn't even want to talk about that. Why? I'm pissed off at myself about buying this car. Why? Okay, so I think I bought the car in October. And I wasn't supposed to buy a car. I was supposed to pay out my old car. I only had $3,000 left because the following November is when I received like probably $10,000 to $11,000 from my job. I got my bonus and I got paid three times. Wow. So I was going to pay off my car, but I ended up trading it in and buying this new car. Why did you go against your plan?

Why did you go against your plan though? Impost. Like, that's the definition of your life, isn't it? It's okay. It's a lot of people's problems. We live in a consumer culture. It's not okay, but I at least understand it. The 14.1% interest rate of insanity is,

though it is I'm thinking about getting the refinance right now well I mean what's your score what score credit like 670 what is your what are you able to these days um I don't you said you're in the process I am somebody supposed to be calling me back when did you apply this morning oh the day that the day that you came on the show also what did you blow $11,000 on Paying off summer like 3,000 went to paying off the hit. The death that we racked back up. Okay.

And this is why you can't have credit cards. The thing about it is Christmas came up. Comes up every year. It's not really a surprise. Yeah. But I did a lot of extra things for Christmas that I normally don't. Yeah, 8,000 hours worth of things. No.

It wasn't all that. Like, I bought a bed. I bought a bedroom set and stuff like that, which was like 3,000. thousand dollars. Okay. And I don't know what that money went to be honest with you. Okay. Let's just put it towards this new car, man. I only had it for a couple of days. The bedroom set? No, the money. Yeah, because you blew it all. Okay. Not okay. Like, okay, but, well, I know, but it's such a weird response. Okay, so you're looking to refinance this? Yeah. How, though? You owe 26,789. It's worth 18,300.

Okay, well, then I don't know how much it works because I'm early in the process on it. So I don't know. Well, it's worth 18,300. So, yeah, that's not going to work. Yeah, we looked it up. Okay, well, that's not going to work. Yeah. No, no, no, no.

You are in the hole of this car. I saw it almost 9,000. So that's kind of, uh, no, they, the bank wanted me to refinance my car, like from the mortgage side of things. me obtaining a mortgage. They wanted me to refinance my car to get a lower payment out of that extending the term. Oh, they're trying to get your monthly minimum.

Yeah. So your term's gonna be long. Basically. That's not good. You don't need a mortgage for nobody. You're 21. Were you going in person to ANM or online? Okay.

Do you want to stay in Kille? No. I know. I know. Have you just answered your own, like, and tight? It sounds bad. I know.

No one wants to live in clean anyway. Yeah, no, it's like, I'm kidding. I'm sure clean's fine. Can't point it on a map, but... I don't know what I want to do. It just, it wouldn't make sense you get in a house right now. Your mortgage rate would be high. You say that you live in poverty, essentially.

You, your debt's high. You'd be extending your car loan length, and I don't think the interest rate's going to be much better where rates are today, based on your credit score. It's, it makes no sense. and then you don't even want to stay that. Where do you want to live? Um,

I don't know. Okay, but not in clean. Yeah, not in clean. So why would you buy a house? Usually you have to stay in a house for like five years for it to make sense. You want to, you want to make me,

you want to be forced to stay in clean? I don't, I don't know because growing up, our, well, my parents, they always, you know,

they feared us from going certain places or just, oh, they feared you? Like, you know, they installed that fear like, oh, don't go this where don't go there you know don't go where like places yeah like places like

what or stuff like that so i'm trying to distance myself like what though i'm sorry i'm trying to get a little more understanding of that that's interesting you know how your parents were like oh don't do that don't go there like i was talking about moving for college and all that they didn't want me to move what yeah it's like what was the reason was it a financial thing no not financial okay because that would have maybe made sense what was their reasoning um They just have different ones like crime and you don't know nobody in that city. You don't know. How is something what's to happen?

How are we going to get to you? That's really bad. That's really bad for life and personal growth. It's being coddled and held by parents and not escaping the cocoon and you going off and living on your own. I encourage everyone to go off and live on their own at some point. I'm okay with also staying at home for a bit. But at some point, I think it's great to leave the hometown and experience different culture, different world, parts of the world. It's good for careers.

It's good for building connections. It's good for just diversifying your knowledge and learning more about the world. No, they, that's kind of, that's kind of, it's kind of weird and gross. It is, it is. So you're afraid of living going, basically, because I know, well, with my job, I can go anywhere, but it's like that fear, well, what if I move here, then I lose my job? I don't have connections like I do. That doesn't make sense. Down there.

Also, if you get locked into a mortgage, you can't really trade up and down like you can for rent. And if you want to go back to school, you're about to get large semester bills happening. Yeah. So you say no to the mortgage. Well, no. I just want to make that clear.

I think everything in the, there wasn't one upside. Okay, I was just making sure. No, I know. But like, there literally wasn't an upside in any. the points we brought up. Well, I think I just want to experience ownership, you know, or something. You get what I'm saying? Because my... Sure, but you're 21. You have a lot of life to live. I understand it. I'll see. You own a car. You have, you have ownership right there. I mean, everybody owns the car, but... Cool. You've experienced ownership. Congratulations.

And then the checking account instead of doing the things like the mortgage or paying off the car loan that's at a terrible interest rate or paying for school because there's torque, what are we doing? What are we doing? What are we doing? whatever what does snap finance that about my nephew it's a financing company like you know what is like a buy now pay later is it for I bought my nephew something from the jury store

a chain how much was it I don't remember I know it was like it probably was like 1,200 1500 how much you owe on it no I paid it off that was the last payment oh the fuck stop spending

money you don't have if you do you want to complete school or not yeah that could have easily gone towards tuition it could have but you know he asked for it so oh it was in the moment oh hey hey can i have $1,200 no one got it oh well i just asked for it so by your logic i should be able to get it i can borrow it what is it uh and then stop an easy way every s fucking second of your life okay sonic drive in taco bell go into the tequito store starbucks Bubba's Starbucks Starbucks

Donuts McDonald's Starbucks Cabo seafood cash apping out $98 McDonald's Takedos Pizza

I think yeah pizza What is this acceptance now acceptance now $1228

acceptance now French alone Oh how much is left on that Um 1200 1244 to be except

Is there interest Um no same as cash. Huh? I'm doing a hundred days same as cash right now. So I don't know

if the interest occurs after. Yeah. And it might catch up too. It might accrue the interest from before if you don't pay. Yeah. When does that end?

Um, May 5th. Oh, I'm going to pay it off. With what money? I'm just going to pay the money. Like, what?

When I get paid out, I'm going to pay it off. That's what I did last time. But it goes towards everything else, No. Yeah. Oh, fuck off. Just empower advance empower me. Okay. Oh my gosh. It's hidden. So many hidden things. Yeah. What. What? That's a advance. Huh? That's advance. Payday event. And you want to be a fucking accountant? What are you going to account? You can't account for your life.

I'm going to pay. I'm going to pay it off when I get paid takes payday advances. Takes payday. advances. I'm going to pay it off when I get paid. No, you're going to pay your pay to advance when you get paid. Pay it off when you get paid. There's no paying it off when you get paid. That's stupid. That doesn't make any sense. You don't have money to pay it off when you get paid. You got to pay it off. You're going to pay it. You got paid it to last time you got paid. Yeah. You're right. I am right. So, stop with me. Stop with me. You can't, I took you at you, worry that you could pay it off when you got paid. How? How? How? Choice hotels gets you more of what you value. Here's a little tune. help you remember. Same drive, different day. Don't you wish you were getting away? Pack your beds and

come on through. Texas, Ohio, Alaska. We're up there too. Comfort in. It's calling your name. Save on the stay. Oh, and free waffles are yours to claim. Well, I hope you like my little song. Book direct at Shoreshiltails.com. Because I don't have that no. You don't have the payday advance anymore? No, it's closed my... They closed it and I... What do you mean they closed it? Well, I closed it and I can't open it up again in 12 months because I don't... Oh, thank...

That is the blessing of a lifetime. That is the blessing of a lifetime. It's the best thing I've heard all day. It's the greatest news. What else is going to be uncovered in this checking account that I didn't... Dairy Queen? Tipsy Gator, Starbucks, Raising Cajon, Starbucks. Cash apping out.

Pizza. Cici's pizza. Oh, Cece's. What's up with people going on Cici's on this show all of a sudden? Like, we had that the other day. What the fuck's happening? And then chicken chicken. What are you going to a Chuck of Cheese for?

My niece and nephew wanted to go to Chucka Cheese. I took him to Chick-a-Chews. Okay, yeah, you can't afford it. Tell them to go with their parents. Okay. Subway McDonald's. Listen, what Jared did is obviously not working. So we don't have to go there.

Then $100. We started with $7 in this account. Then $100. Oh, my gosh. the spending that continues. It's crazy. I forgot there was another document. I went through these and I forgot there was another document.

I thought we got through the spending, but no. Oh no. Oh no, we didn't. No, we didn't because, again, college is two springs. We can't pay for it. So instead, let's just go out to eat. $900 a month. That makes sense.

Stupid. Starbucks, tequitos, Raised in Keynes, McTalmonds. You go out to eat every day. Yeah. You go, I do. I'm glad you admitted that. And that's f***ed up.

It is. I agree with you on that. But it's, I don't know how to grocery shop. I don't know what all I need, what all I'm going to need because. Well, thank goodness you're getting our meal plan because, me. Also, another great invention called a cookbook. I know how to cook.

I just don't know how to shop. What do you mean? Like grocery shop. You have H-E-B there, right? Yeah. Select it all in the car and pick it up for free. I understand that, but it's this. it's going to last me, you know? It'll be like, what? Like, let's just say if I go grocery shopping,

I don't know. I just don't know how to go shop shop. But I don't know how to grocery shop coming from a grown man is an insane statement. I get that. But I don't know how to grocery shop. Like, you can't blame me for something. I don't really know how to do. What is, well, I'm a little confused because I mean I was never handheld walked into a grocery store with a teacher and been like this is how you grocery shop like who learns how to grocery shop you literally go and get what you need for the next two weeks okay for the next two weeks okay like that like do I get stuff like once a month do I do it for every two weeks I don't do it's up to the individual some people go after like multiple days a week to get what they need for the next couple days so I shop I'm like an every two

week person some people get the grocery pickup some people do once a month with these big bulk items from Costco and stuff. This is, but the internet's free, dude. It is, it is. I'm just looking forward to your plan to see how you set it up or something because I don't know how to do it. McDonald's Taco Bell, Takedos, Takedos, Starbucks, Texas Roadhouse. It's also just, none of this is good for you. Tipsy Gator, raising canes.

Oh, there's snap finance. I'm actually. Taco Bell. eating out is it's going to slow down i can't say it's going completely stop but it's medical reasons behind it medical what medical uh i'm pretty sure it's putting you in medical yeah that's what i'm saying that's why i say i got to like tone it down because i'm actually getting tested tomorrow for a pre-diabetic i think and how do you think that's going to go um hope for the best preparing for the worst okay do you think you're diabetic yeah

with my eating habits yeah i didn't want to say it but going through all this i mean i mean it's worth i'm gonna think so i get it i get it but this is not good for you this is not um just reality basic reality not a shame thing because people confuse reality with shame what is going on right there is not suggesting living past like 50 right and i don't want that for you Because there's no point of us getting our finances together if you're not going to live a long life. Right. And I want you to live a long life. So the sacrifices you are going to do now are going to be for a greater future.

Right. Okay. Subway McDonald's. And then yes, 2,424 and 401K, but we're borrowing against it anyway. So it's just like, uh, I mean, that was what I've lost my pen out of rage. Hmm? I would say, well, that was for a good cause. I would say. Okay.

maybe not a couch you didn't know i don't think you understand i didn't know where i was going to live at that point that doesn't involve couches that statement does not involve couches bed frames okay i agree they don't oh oh what do you spend $41 at HB, $900 going out to eat. $900? Just about. Okay. Y'all, this is the time to switch to my favorite high-yield savings account.

With SoFi, you can get 4.6% on your money. I hate when my money is just losing value, so make sure you're keeping up with inflation at the very least. You can also get FDIC insurance on that money up to $2 million with them. Plus, they'll give you money up to $300 when you set up. up in account with them. There's even extra perks like being able to get paid a couple days early. So far is what I use when I'm setting money aside and it is the banking app of the future. Sign up, link in the description below. I always want my money to be making more money,

so don't lose money on yours. Let's go through your spending categories. Just so you've probably never broken down. You've probably never budgeted in your life. Let me guess. Okay, good. Bad, but let me tell you, in terms of going to debt payments net, net $522.71 or 12.4% of your spending. $1,138.43. $0.23 went to housing or 27% of your spending. 0.6% went to your phone bill. What's your phone?

What is it? iPhone. Your bill. Oh, $95. Okay. Do helium, it's 20. It's the easiest thing. 18.7% went to transportation or $7.49.44.

Necessary food. Go to the grocery store, $71.7. cents or 1.7% your spending. 19.8% of the spending is we've went over before or 835.64 cents went to food. Unknown shopping. Typically, Amazon, Walmart, that kind of

we know it's not grocery, so it's bullshit. 4%. 167.07 cents went to that. Savings, 1%. Subscriptions. 0.4%. 75,000. 54 cents went to miscellaneous. Go on. Stopping at the store. Getting all that crap.

1.8%. the gas stations. $533.9. Other large expenses, which was $12.6. Other large expenses equate to in your situation. Cash chaffing out money.

Friends with benefits? FWB. That's my brain goes. How much was it? 2511? Cheap friends with benefits. Oh, I have no clue what that is. Okay.

Something. I was the receiver and the acceptance now. Great. I didn't think it was that much. But now I'm seeing it. You get every meal going on to eat. I understand. I'm surprised it's not more.

Well, yeah, you're right. I didn't know it was that much because I had never really looked at it and looking at it. Some need to change. Something needs to change. So let's look at this back to the beginning of the conversation. Brandon, would you be kind enough to play where he says that, He just doesn't make enough and that's all. No, I feel like I'm just not making enough money.

It's obviously very beyond clear. That is your spending. It's not your income. It is your spending. And I hope you can acknowledge that now. Can you acknowledge that? Can you acknowledge that now? It is my spending, but at the same time, I think I'm not making enough money.

Oh my gosh. Oh, my. I agreed. No, you didn't. You just went, said you weren't making enough. Fuck off. $4,400 comes in on a month. monthly basis. What is your rent?

1060. What about utilities? 150. What about internet? Included in rent. Your phone bill? Will you switch to healing? Do you owe on your iPhone? Yeah. And I'm on a family bill. How much is your phone bill again? 90. 95. Kill me. Car insurance.

185. Gas on a monthly basis. Probably 50 bucks. No. No. Yeah. I don't go nowhere. What? What eat? Well, I couldn't tell if it was gas to go in inside and getting a shot, but anything over $10 at a gas station equated to $132. Okay. I'm going to say $100.

Okay, yeah, you can put that $100. What's your minimum of the furniture? Oh, $129 biweekly. Your debt minimum monthly payments, $1,042. That's my debt monthly? Yes. Okay. That explains.

Oh, my income, that's the issue. $300 for groceries. $100 for your TP fund. It's anything else you need to exist. Okay. Medical. Ongoing? Nothing right now.

What's the co-pay going to cost at the appointment tomorrow? I don't have no copay. I don't think so. No. Never paid a co-pay. Jim? No, Jim.

I got one at my apartment complex, though. Do you use it? No. No subscriptions. Hold on, not even Netflix? No, there's nothing on there anyway, so calm down. Okay, you're gonna be working. But I watch.

YouTube's free. Okay, that's it. Anything else in your life that I need to take an account? Yeah, so that $4,400, it should be like, what? It should be no income. Yeah, $4,400 is actually like $4,000 because I put $200 in a savings. What savings?

I have a USA savings account? No, you don't. It's not going there anymore. Why not? Because it doesn't make any sense. You're losing 32% interest. What is that $200? What kind of interest is it gaining in that USAA account?

Even if it's at like the SOFA 5, 4.6%, it's losing to the 32% interest you're losing on your credit cards. It doesn't mathematically make sense. Okay, but what if something happens? They didn't know how it savings. And then I'm back to card. You already don't have savings, so it doesn't matter. I got a little.

I got a $400. No, I'm going to, let me walk you through the actual program, okay? Okay. That's, you're not doing that. Okay. You're not doing that. Anything else that you have to pay for on a month of basis? Um,

and no, you're not going out to eat because it's stupid. It's killing you and your finances. So no going out to eat? No, going out to eat. Nothing else, minimum. Okay, in order to survive,

and this is great. This is great. You know what? I am going to put in a little going out to eat. Can we just do it in a healthy way potentially? Um, so what I will do, do is I'm giving you $150

$1.50 to go out to eat on a monthly basis. Congratulations. Giving your budget to $3,177 on a monthly basis. Congratulations. $150 going out to eat. Come on.

Okay, yeah, I'll take that. I'll take that. Yes, you will. Because that's all I'm giving you. And for the clothes. Do you have clothes? Sick. Answers that.

So no clothes. Why are you getting more clothes? You got a good point. 1,223 is what you have left over, which is so f-f-fin awesome. You have no idea. That's awesome? Yes, it's awesome. Are you kidding me?

You, sir, make okay money, great money for your age. It is not an income problem. Okay, which is a rarity on this show sometimes. So be happy. You're blessed beyond belief. Your best beyond belief. And if you didn't get this car, you could have an extra $600 anyway, but it doesn't matter. You got it, so we're going to deal with it.

Okay. So first two months, set that completely aside, and essentially by the end of the first two months, you have a fully funded emergency fund. So there you go. That's the savings. Okay. Like I said, just go with me on my process,

and I promised I'd get you there. Okay, month number three, pay off visa. Done, and put the $200 towards the furniture loan. said May and all the vacancies just occurs okay we're gonna finesse this a little first month you actually pay off the furniture loan then month number two and three

you throw it towards a one month emergency fund then the furniture loan's gone and the one month emergency fund is there by the end of month number three month number four pay off the visa and the remaining money goes towards paid off the capital one card as well the Walmart capital one that's sick

Oh, well, okay. So in month number four, one month emergency fund, furniture is gone, Walmart Capital One's gone, Visa is gone. Then month number three, kill the regular Capital One. No, sorry, month number five killed the regular Capital One, throw the rest towards the line of credit. Line of credit is killed by midway through 75% through month number six, but we'll just call it that to be conservative, give some room for flexibility. Month number six. On number six, all credit cards gone. The furniture loan is gone.

all you have is the nissons the nisons a really bad debt but you're also really under water on it do you want to keep the nons um it looks like i have no choice not necessarily do you want to keep the nisun not really okay so you don't care about it are you willing to drive a 10,000 hour car yeah yeah i'm willing i'm willing okay so let's see let me make sure the math works first you're about under nine thousand dollars 10,000 dollar car, you'd be in 19,000 hours But with closing So what you could do

So you could sell the car For the 18,300 You can borrow 9,000 dollars To make up the gap And you can't out In a personal loan But also you're actually borrowing $19,000 You're using $9,000

And you're throwing it towards paying off the car Because you sold the car And you're also using that $9,000 you paid off the car. Fantastic. That loan's gone. The additional $10,000 in that loan,

you're then using to go get a $10,000 car that you get you sent you sent to a couple of mechanics, get the right off that it's going to last you a few years, it's safe and happy. It's not luxurious. Okay. Okay. Cool. Now, you have a $19,000 loan.

You can or you cannot do that. It's up to you because that's saving you $7,000, which is really good, but it's up to you whether or not you want to. to pay this off aggressively or do that finessing route. But let's just say you do. And what are we in month number seven at this point? Yeah.

And at that point with where our minimum monthly payments are, we have about an extra $1,300 off on a monthly basis. It'll take you. I would do that actually because it's going to take a while, 14 months to pay off. So it's about a year in seven months. A year and seven months. months. A year in seven months. Until you're fully debt-free. Really? Yeah. Okay. See, that's what I was

understanding. Is that good or bad? That, no, that's way better than what I was looking at. That's because I'm making you go aggressive. I'm giving you $150 to go out to eat. Okay. I'm a nice guy. Yeah. Very nice. Thank you. You're welcome. Are you willing to do that? I am willing to do it. I'm willing to do it. And then at that point, what I would do is that save up a fully six-month emergency fund so let's call it two years total no about two years and three months total you're fully debt free and you have a fully funded emergency fund at that point if you want you can also cash flow the remainder of school okay as best as you can might have to borrow the rest okay and then you pay that off aggressively when you're done okay that's what i'd person do i'd gift you like a course career

certification but you're not going into tech so yeah and that's when the exciting things start oh you got to also pay after 401k loan so let's just add an extra month on there for that so it's going to take two years four months and then try to max out your 401k max out your rath IRA on a yearly basis um you won't be able to do that during school you know i want to be able to cash flow school but then you could even start getting into exciting things i love using like i max out my IRAs and solo 401k's all that good stuff then i buy some individual stocks through moo moo because that's where the exciting fun things happen you're not there yet you will be.

So do you think I should stop contributing? To your 401K? Yeah. I'd take your match. Okay. But only up to the match. Are you contributing more than your match? Less than my match.

I would take your full match. Okay. It's literally free money. So to recap, that's going to take, you know, to yours four months. Now, if you want to... There's also... I mean, the issue of school, you could do school before it,

and it delays the stuff. It gets complicated, but... I'm willing to help you do that process if that's what you choose. But to confirm, you are not going to get a house right now, correct? Because that's the whole situation. No, I'm not going to get a house. You say don't get a house.

They're not believing you. Don't get a house. Well, are you only going to spend $150 a month going out to eat? Yes. I think it's very doable. I got to be smart about it. You're going to go to grocery store? Like an adult.

I'm going to do the Walmart.com. You're going to go through, yes. You're going to go through our budgeting program. You're going to do all this. Okay. Yes. Yes. Hammer financial score.

Your budget was not a control. It was ridiculous. It wasn't the worst we've ever seen, but it certainly wasn't good at all. 2 out of 10. Again, not the worst we seem definitely not good. 2 out of 10. Emergency fund, you got to start 1 out of 10 retirement. For your age, $4,000.

I'm actually going to give you a 4 out of 10 for that. You're getting started. Let's just pretend like you're just out of college real estate. 0 out of 10 for now. And I don't want you to increase that score yet. You shouldn't be increasing that score yet. in your situation. Hammer financial score rounded up, two out of ten.

Make sure to stick around for the post show, everyone, and don't forget to check out the links in the description below, as they are what I use or would use in specific situations, including the best budgeting program in the history of the internet. Today on the Financial Audit Post Show. How don't you treat your own finances like a job? Because it is your future. It is.

Wait. It don't work like that all the time. Do you drink often? Every weekend. You go hard when you drink. Every other week. I mean, no. is the office drinker. Okay, Noah is not the office drinker. Noah occasionally has a few beers and has a little bit of...

But no one else drinks, so Noah's the office drinker. To watch the financial audit post show, click the join button below.