Financial Audit - Quits His Job Every 6 Months And Wonders Why He Can’t Afford To Live

Episode Date: September 16, 2023

Check out these fun things: Patreon: ⁠https://www.patreon.com/calebhammer⁠  My socials: ⁠https://linktr.ee/calebhammer⁠  Do you want to be in a Financial Audit and you're in the Austin area? Email [e-mail] Sponsorship and business inquiries: [e-mail]  _______________________  Timestamps: 00:00 Job and income 06:05 And that’s why we go hard on people 12:47 SOFI 17:25 Wow that changes things 20:15 Says he doesn’t spend money on BS… Okay 17:27 I’m scared for your future 29:18 You need to budget 35:18 How are you surviving? 39:04 You might need to sell the house…. 41:49 Aura 47:19 This is what I’d do 50:27 Time to bust A** 53:33 Hammer Financial Score --- Support this podcast: https://podcasters.spotify.com/pod/show/calebhammer/support Learn more about your ad choices. Visit podcastchoices.com/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

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I'm Joshua. I'm 33 years old from the DFW area, and this is financial audit. Beautiful. Thank you for coming down. What do you do for living up in DFW? I'm actually a firefighter EMT. Very cool. Okay. Well, thank you for helping save people's lives.

Absolutely. Yeah, that's awesome. What do you make doing both of those? Just like, I believe it's right at 61,250. And that's without overtime. Pretty specific. Now, how often is overtime? Lately it's been often.

So I've actually, the last two pay periods I've had between 30 and 40 hours over time. Really? Wow. Jeez. Okay, what's a pay period every two weeks? Every two week pay period. and we're on a 28-day pay cycle. So, like, I'll have like an $1,800 check, $1,800 check, and $1,300 check.

Okay. Because one of them is only 90 hours. So what would you say on average with some overtime months, some less overtime months? What hits your bank account on a monthly basis on average? I guess it would probably be about $3,400. Okay. How do you feel living off $3,400? It's, I mean, it's doable.

How long have you been doing this? How long have you been making this income? Since December. I just got hired in December. Oh, what were we doing before that? I was going to say, because you got yourself into quite a bit of debt. Yeah, so I've had quite a pass when it comes to both school and work. I've worked a lot of jobs because I went to college because that was kind of what you're supposed to do, right?

Go to high school, go to college. What did you study? Economics. Graduate? Yes. Okay, cool. Went to A&M. And after that, I had a bunch of office jobs, just because that's what you're supposed to do.

And I did not like any of them. And I kind of figured it was like, well, this one will be different. This one will be different. I'll like this one. And I would be there for six months to a year. And I just, I couldn't sit behind a computer for eight hours a day. And so I would end up changing jobs. I was actually a police officer for just over a year.

So I did that. And then I realized that wasn't for me. And I went, went to the dark side. As I said, I switched. And so I went to the fire academy. You're still in the service place. And you've only been in December. Yeah.

how long until you switch career paths to be in like a gardener next or something. So I can tell you I'm not going to do that. I love this job. I've actually never had a job that I enjoyed so much. So this is definitely where I know I want to be for 20, 25 years. So throughout all these situations of kind of on your career a bit, which, you know, I mean, okay, fine. Exploratory, that's fine. You're not, not everyone's going to land in the thing they want to do.

And that's totally fine. But you've jumped a lot. Through that jumping, is that one got you into all the debts? So kind of, yes. So the credit card that I have has kind of gone out of control at this point. Started out, I used, so I had a credit card with like $1,000 on it, and it was a Cabela's credit card, and I just transferred it. Cabela's? Cabela's?

I worked at Cabela's right out of college. I worked there. Is it a restaurant? No, Cabela's. It's Bass Pro Shop Cabellas. Oh, okay. Yeah. So.

I don't go outside. Oh, okay. Gotcha. So it's a sporting goods store. So I had a credit card with like $1,000 on it from there. and just transferred the balance to the chase card because it was zero percent interest. And I was like, okay, I'll just pay this off. And I was doing fine.

And then left Cabela's, went and worked for a financial firm, ironically enough. And I was there for six months. And I was contract with like three other people. And they didn't renew our contract. And they kind of let us know last minute. We're supposed to be told 30 days out and pretty much a week out to like, hey, so you don't got to come back next week. So I didn't have a job lined up at that one. That's why we have emergency farms.

Yeah. And so when I got laid off from that, I didn't really have anything lined up in that moment. And so I kind of used the credit card there. And that's kind of where the credit card started just for basic necessities. Card card is a risky thing because you were kind of a credit card person. I don't even say that. You built up a thousand dollars on a cabella card. And you weren't paying it.

And then you transferred it to zero percent. So you're hardly a credit card person. But that even wins when is a credit card person. I mean, you can totally fall into the trap eventually. You just have to be really cautious and understand your own behavior. Right. But that's why not having an emergency fund is an emergency. Absolutely.

Because you just f*** your future self. How old were you when you did this? Would have been 25. So for almost a full decade, you f***ed yourself because you didn't have an emergency fund. He didn't have an emergency fund, so he fucked himself for a decade. Yeah. Learning lesson right there, for sure. It gets better.

Yeah. It's great. Well, if you want this to get better, hit that stuff. subscribe button. We're trying to get to 750,000 to subscribe. I said, thank you to everyone who I subscribe. I love you so much. What? How's it get better? Yeah. How does this? Okay, so the

personal loan that I have that's, I mean, we're kind of skipping ahead quite a bit. Oh, so getting into the down. Okay, well, I guess we can talk about those as we get into them, but is the primary function behind where we're at today, or the primary cause, because you're

just, you didn't have an emergency some fun and you just lived off the debt. Pretty much. Oh, is it? What about are you going further into it? Have you fixed your behaviors? What's going on? So, just recently, probably about a month ago, I went and set up a second checking account with my bank. And so

every bit of overtime that I work, I put into that checking account. Okay. And the only thing that pays is my credit card. So last month I paid $634. Are you budgeting properly to make sure the amount of money that you should be putting towards it is as maximum as it should be? Well, so basically I've been

living with no overtime. So I just take all the overtime and throw it into that. Yeah, but that's awesome. That's like bonus money. What about everything else? Have you been budgeting very strictly to get yourself out of the mess that you've gotten yourself in? No.

Why? Why possibly? Especially since he said he saw a lot of the show beforehand. Yeah. So I don't really have a good excuse. I'm pretty much paycheck to paycheck. So I could obviously budget and you can always make everything easier on yourself. Well, yeah.

But, I mean, I don't have a lot. I guess the way I've just looked at is I'm paycheck to paycheck, and I don't really spend a lot of money on dumb stuff. Most of my money every month goes to debt. And so I guess I never really... All right. Well, let's look at the situation. First, give yourself a score to 0 to 10.

I feel like I'm not the worst I've ever seen on your show, so like a 2. And if you're wondering why I go so hard is because that's the mentality of everyone. It's not good. It's not bad. It's bad. Okay, pull up this credit card because this is the bad one. This is the bad one, but I don't have a statement.

in front of me. Fun fact, by the way, of you, before we even getting into this, out of your accounts, you're saying you don't really spend that much money and most of it just goes to debt. You spent about $600 on fast food, not just fast food, but just eating out and tequitos are dumb. Yeah. So, yeah, absolutely. Don't come to the table home bullshit because that's going to piss me off immediately. Like if we're doing, why are you spending? Why are you spending? This is, this was Today, today, a stupid bending machine. So, why possibly are you spending on a card that you're struggling to pay off? So, for whatever reason, at that, at that vending machine, my debit card wouldn't work.

For whatever reason, it just kept trying and trying and trying to. So maybe we don't vent. Fair enough. The other one that's on there that was from yesterday, I believe, that was groceries, and that was because... Why had a card? Because I currently don't have, I have like $190 in my account. Why do you only have $190 in your account? I guess poor spending.

No, you're not budgeting, dude. You're not budgeting. It's like the most simplistic thing you can do. This is basically max-up. You said everything goes to this card. You said everything goes to this card. Why the fuck is it possibly only $300 from being maxed out? So before I paid the $634 or whatever.

was, or 664, it was at 12,400. It was actually 200 over max after interest. Uh-huh. And the month before that? Oh, no. So, by you're putting everything towards the cards, you mean you've done it for a singular month? For a month, correct, because that's when all the overtime at work opened up. Not many things piss me off, but if we come to this table, we start bringing some bullshit. Yeah, no, I mean, it was very, I mean, the extra, the second checking account that I set up, I just set up. This is Euphoria Calvin Klein. The new Elixir Collection, feature. featuring three perfume intense scents, inspired by a unique orchid accord, paired with vanilla, each with its own distinct attitude, each with its own universe, bold elixir, sensual,

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Regardless of that debit card, dude, regardless of the debit card, should you really? Because you go to this vending machine every second of your life. No, that was only the last two days. What? This was July 20th. 20th, seven days ago. Okay. Again, should not come to the table and bull-f-fitting? What's a whoop?

That's whoop. It's this. Oh, I've heard good things about that. Yeah. I wouldn't be putting it on a credit card that we're trying to pay off. Yeah. And yeah, especially your groceries. Why are we putting it on here, dude? I don't have the money to buy the groceries on my day.

No, I mean, I'm just telling you why. Yeah. And Hat Creek Burger and Amazon? Dude, you're spending money you just don't have. Yeah. You're spending money you just don't have. It's 24, 20% interest. 20% death interest.

I can't even see how much interest is accruing on a minimum monthly. Oh, wait, let's see. Let's see. Oh, here we go. $202. $202 because you're deciding to still spend money on here instead of paying it off. It's getting sucked from you. $202 on a monthly basis is getting absolutely sucked from you and killing you.

And it is not worth the 30 pending points you have. That's 30 cents. Right. If I'm not mistaken. Okay. Available credit, $27. $27. $27 because of probably future.

interests accrue and everything. Oh, okay. What's your minimum monthly payment on this thing? 3.30. So 10% of your income? Right. It's insane. You did yourself in with this and stop spending.

If the first thing, if the only thing you take away from this, stop spending on that card and budget. If you don't have the money in the checking account, you don't have the money to do the vending machine. I don't give a shit. You don't have the money to pay for the subscription for Wup. I hear good things. about it, but if you don't have the money to do it, you can't do it.

Yeah, I was actually going to cancel. It's as easy as that. I was actually planning on canceling that. I looked last night, and they make it real difficult to cancel, but I was going to knock that out today. Just say, you can, you can dispute it on there. Just be like, no, they're fucking with me. Like, just be like, I wanted to cancel, but it's making it hard to cancel. Stop. Okay.

And the credit card will just deny it. Okay. But again, I hear good things about the whoop. We just need a budget, dude. For sure. We have something in here. regular savings account $35. Well, that was, I had to put money into a savings account to get a pen fed.

I don't use that. I think I saw someone have this account for the other day, first time, this credit union. I've never heard of it. Is this the personal loan? Yes. Dang. Okay, so we have a personal loan. Personal loan is at $22,654.

Sorry, 22,296 now. So there's a payment. I can't see the minimum monthly payment in here, though. That's 501. Jeez, dude, these minimum monthly payments are eating you alive. Yep. And the interest rate on this? 5.6 or 7, something like that.

Okay, well, that's not absolute death. Certainly we don't want to be having it. It's over 4%. And it's not going to anything productive anyway. Right. But was this you consolidating some credit? card debt? Yes. Okay, so that is where I'm good with that as a

concept, but what a lot of people fall into in this, I think includes you is you consolidate it. Okay, now there's a balance on that out of the card, but that usually just goes right up to the moon again. That's exactly what happened. Exactly. So that's why a lot of people are against it. I'm okay for it as a tool. And then the other reason some

people are against it and they are correct is you put this on here and then you stop making progress on painting it off as quick as you should. Okay, yeah. Yeah, because you feel like you've made the progress. Right. Are you financing?

So that's bad. When did you do that? And then max out the credit card. How long are it to take you to max out that credit card again after fucking paint it off? A year and a half. Cool. Yeah. 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 four. 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 can 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. You're going to have where you are working? I was working part-time because my son was born and I was going to- You have a kid? Yeah. How was your kid? 19 months. Wow.

Okay. I was going to EMT school and working part-time because we kind of did the math and it didn't really, like it was kind of a six-of-one situation where I worked part-time or we sent him to daycare because daycare was so expensive. Wait, do you have a wife? What's the household income? She makes 55 a year. Well, that changes the story.

Yeah. Does she have debt? Minimal. She has a car and then a credit card with like $1,200 on it, I think. I'm monitoring your finances, but that could... That does change. That adds household income, which should... How do you guys does finances combined? No.

So we know we need to get a checking account, like a joint checking account and do all that. The only issue is we can't agree on what bank. Do the one I completely switched to is the SO-Fi one. Okay. You can do that one because then they have the... high yield savings of 4.4% of the time making this video. Okay. And there is a paid affiliate link in the description below, but I only

partner with them because I wanted to use it because there's sign up bonuses and stuff. It's really good. I use that. Yeah. I would recommend it. It's really good. And then we have an automobile. That's hers. Oh, this one's hers. Yeah, so I sent over her stuff

too because I knew it was combined and so. What's your average? Well, do you know her average take home? Oh. No, I sent her bank statement as well, so like her checks will be in there. Okay. Yeah. So this is her car.

It's 4.54% which is not in, that's, for auto loans, I'm more of a 3% or lower kind of person, but. Right. 72 months, though. I mean, it was her, her deal. If you're watching this, Tisk, Tisk, Tisk. 72 months. Tis Tis. what was the what's what's the car uh 2016 ford edge oh i think uh she really likes it so okay so long as

as it's being taken care of oh yeah absolutely 330 26 330 dollars and 26 cents a month what's her credit card she owes 1,200 something like that yeah i mean she she rarely uses it and so she's trying to she needs to stop using it yeah well she's kind of running the same issue I have is just, you know, we need a joint checking and we need to have a household budget. It's probably like a $30 minimum monthly payment or something like that. It's probably at like 20 to 30 percent interest. Jeez. Okay.

And the debts continue. Student loans. Who is this? Yours or hers? That's going to be mine. Okay. Yeah. And these are about to resume.

Right. They're probably 4 to 6 percent. They are just over 5. Okay. average or all of them? All of them. I consolidated all of them. Oh, you did? Yeah. So like 5.5. You say just over 5. It's supposed to just over 5. I honestly, I'd be lying if I could remember. Okay. How'd say 5.5. That may be hers. My student loans are in there too. I thought those were mine. Those may be hers. Because if that's the total of 12,000, then that's hers for sure.

Why? Because yours is, why don't have it? So you got to tell me. Oh, okay. Hers are probably 4 to 6%. I was going to say, They didn't look consolidated to me, so that makes much more sense. Go on. 72. 2,000. Fuck. Why?

So, just for economic school at A&M? No, no. So that's 18-year-old me. I took out loans, obviously, but I spent about six years, so my whole goal was to get into A&M. So I went to community college for a year.

That was a good deal. Then I went to Blynn, which is a community college. in college station. I'm thinking it would be easier to get into A&M because that's kind of like the rumor. It wasn't. So I did a semester and a half there. And then I got into A&M and I ended up doing like another three and a half years once I got an A&M.

Why were you just fucking around? Well, because by the time I got into A&M, a bunch of my credits didn't count towards my degree. Because I was taking filler classes just trying to get my GAP to get into A&M. Oh, dude. And then you were not planning and you were not talking to advisors? Well, no, I mean, kind of. essentially what happened was my GPA wasn't high enough,

so I had to keep taking classes to bump it up and bump it up and bump it up. And then by the time I got in... Maybe college isn't... Okay, go ahead. And then by the time I got into A&M, pretty much Econ was the only option I had, and so a bunch of those classes just fell off and didn't count. And then you refinanced the loans?

And I refinanced the loans. Why? To get, I guess, one payment, and then some of them were upwards of 7%. And so... Yeah, well, that's fair. They've not been paused, have they? because it's probably a private company

No, no, no, they're federal. Oh, you consolidated through the federal system? Right. 72,000 is probably going to be the basic, what the basic... Because I've been on the income-driven repayment program until they were paused due to COVID.

But it's going to be about $700 a month, dude. 5% plus. Okay, and we decided to go get a house. Locked in at a sick rate of 3.2% them. Yeah. I love that.

So we're probably a minimum monthly payment until this thing is paid off. We're just, I'm chilling with that. The first thing that isn't making me vomit. Okay. Balance 230. How much of a house is that in DFW? It's a pretty small house. It was built in 2018.

It's about 1,500 square feet. It's still pretty. Maybe I'm just used to Austin prices of being insane. How much did you guys put down? And when? So we put down like 10 grand because we did the first time homebuyer, so we didn't have to put on a whole lot. That was November of 2020. We've been there almost three years.

Yeah. Housing must be lovely affordable up there if that's what it was like in 2020. Jeez. Yeah. We got in right before the market went through the roof right before. Okay. So this is one of your checking accounts? Yeah, that's my main one.

Prosperity. Don't spend money. I will go to see. Sonic is to quitos, Venmo's not money, and Chick-fil-A, and to-a-fellee, and Tacos in Amazon and Velvet Taco, Amazon, Amazon, Tacitos, Amazon, or Venmo not money, Venmo, not money, Microsoft Things, Venmoe, not money, Venmo, Waterburger, Little Elephant. Little Elephant's the childcare. Oh, I'm sure with that.

Okay, well, yeah, no, it is. Child care is stupid expensive. Yeah, that's just, it's two payments a month, so it's actually, yeah. We'll definitely put it on the budget. Check fillet, Venmo, Venmo, Venmo, Amazon. So the Venmo, a majority of those Venmoes are going to be to my wife and from my wife, since we haven't combined checking accounts. I'll pay a bill and then she'll Venmo me half of it and vice versa.

And then also at work, we've been mowed $20 at the beginning of every shift for meals. And then we go to the store and buy food. What? Wait, what? So we have to buy our own food for the shift. because we stay there for 48 hours. So, oh, you grocery shop every day for it instead of... No, no, no, no.

I'm just saying you'll see it'll be every five days on there because we're on 48 hours and then off 96 hours. And so there'll be a $30 VINMO at the beginning of every month. And then after each shift after that to the end of the month, it's $20. Because we VINMO into a joint account and then go to the grocery store and as a crew, we buy food for the whole shift. Oh, okay. So a lot of those VINOs are going to be...

You can't just do a one-time pool instead of $20 a day? or shift? I mean, I guess we could, but sometimes you swap shifts with people or like you take time. Is this you're doing or is that what everyone does there? That's what like 90% of departments do. Just the daily Venmo? I mean, I wish it was more like a thing we could budget at the beginning of the month saying this is the amount. Well, I mean, it'll be $30 for the first shift and then there'll be three shifts after that.

That'll be 20. So I mean, you can budget. How much do you have a month? Well, it depends on how long the month is, but four to five. Huh? Four to five. That's all? Yeah, it's so long.

48 hours, right, yeah. Yeah. It's 130 bucks. Okay. Cool. Well, we'll definitely put it on the budget. And that makes sense. That makes sense.

I just wish it was something we could just, okay, here's my pool, and then whatever's left over is just like carried to the next month. Or if there's more, then you have to chip in more. If you're running out of your part of the pool, whatever, whatever. It just makes it a little more complicated of budget, but it's fine. We can figure it out. Wells Fargo. Who's this?

It's my wife. Okay. She has 100. $188 in there. Yeah, it's just zealin. Zellin back and forth. It's all it is and some bills. Zell, Zell, Zell, Zell, Zell, Zell, Zell, Zell, Zell, Zell, Zell, Zell, Zell.

And this is yours? No, that's ours. It's the same? I'm not sure. I just sent over what she sent me when I told her what I needed. Okay. I believe she only has one account. That's just she's out of you for insurance, Costco.

Costco insurance? No, no, no. So, like, she's on my health plan. insurance. So like that's another thing that takes out quite a bit. So for her and my son to be on there, it's $700 a month. So she vimos me $200 a month. So it'll be like $100 and $100 just to help cover that. Mortgage daycare. That's fine. Circle Kank. Takedos. More insurance. Daycare and insurance. So can't make all the payments at once it's looking like. Right? I'm not sure what you were. I don't know. I'm referencing the Zells.

Oh, I mean. These are what they're labeled. Yeah. Other insurance, mortgage again, insurance again. So, I mean, she been or zels me once a month for the mortgage, twice a month for insurance, just depending on how much money she has at the time. And then daycare is twice a month. All right.

And then that in the back is my very back sheet of that. Oh, that is my retirement. Yeah. How much does she ever in retirement? I don't know. She just started her first. 401k like a year ago. Oh, okay.

So basically nothing. And then you have basically nothing, especially for your age. You have 5,707. Yep. So especially since we have a kid, you now have a responsibility to make sure that you are taking care of yourself. She's taking care of herself. You guys are taking care of each other as a couple in being ready to retire so that the kid

is not put into the morally responsible position of having to take care of y'all. Absolutely. They will feel no matter if you ask it or not. Absolutely. On an average. Real estate. Okay, so what's this even invested in? So it's basically the state's retirement for first responders, so they take it and just invest it for you.

I put in, I think it's like 230 a month into that. Do they have different before you can pick from, or is it just a one size fits all? No, it's a one size fits all, but you can get a 457, which allows you to pick and choose a little more, which I plan on setting up because most first responders have TMRS plus a 457. Yeah. Does this have a, what's the max on contributing to this? Do you know? I'm not sure because I can't, I mean, I'm not able to. Does it work similar to like a pension?

Yes. Is it a pension? It's not a pension, but it's similar. And then the 457 I plan on setting up once I've paid off enough debt to be able to contribute to two retirements. Yeah, yeah, yeah. What's there, are you doing like a certain percentage to this on a monthly basis? I don't remember what I set my percentage, but I know it's like $230 a month. Is that being matched by anything?

Yeah, it's being matched by employer two to one. Two to one? I believe so. They're the two? Mm-hmm. All the way up to that money to the amount you're putting in? Yes. Yeah, they'll match it to the max, but I'm not at the max.

Oh, they'll match it to the max? Two to one? That's incredible. I believe. It's been three years as I said it up. One it to the max? That'd be crazy. I'd just extra, extra confirm on that.

Okay, I'm still, I mean, that'd be awesome if so. But this debt man is rough Because you guys have got to play catch up You're 33, how old is she? 32 Okay Yeah, so I'm scared for you guys' future

Because you've just put yourself in quite the hole So something we have been Throwing around which Because the mortgage is at a really good interest rate And that's the only reason we haven't But right now we've talked to a realtor I mean we could sell and we could make $100,000 And no capital gains tax

Because we've been there two years but then the problem arises of getting into another house. Yeah, it's getting into another house. You'd be getting in like an 8% rate at this point. Yeah. Or you'd be renting. Now, rent, rent right now in most major cities, you're actually getting a better deal on your money

than if you were to get a new mortgage. Right. But with you locked in at that 3% at about a 2,000, so 1,500 square feet. No, I mean, you'd probably, if it was Austin for like 800, 900 square feet, probably would be paying like 5%. is unpredictable.

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You should not receive a live vaccine when treated with Epglis. Before starting Epglis, tell your doctor if you have a parasitic infection. Ask your doctor about Evglis. And visit ebglis.com or call 1800 LilyRX or 1-800 545-5-9. $1,500. So I'm curious what it's like up in. It's really similar, actually. So you can find some good rent houses. We found a couple like a 1600 square foot rent house for $1,700 a month.

But those are few and far between mostly or if you want it like a two-bedroom. The house is a big thing, though. Yeah. Moving a family is a big thing. You guys can. I love this rate. I think I'm just going to try to do everything we can to hold onto this house. Yeah.

Yeah. Because, I mean, we had run the numbers and we could pay off pretty much all I know that part feels good. That part feels good. This thing should be a big wealth builder for the rest of your life. And I mean, even if this isn't the house you retire in, when you get to an other house, you're going to be able to roll over so much of this into it. Right.

I'm going to do everything I can to not do that. But if you do choose to do that, I won't be like furious. Okay. I personally would not. Okay. Unless is there like, do you guys need anything different? Is there any context? Oh, house-wise?

Well, we'd like a bigger house because we do want to have a second kid. I have. And, I mean, it's, there's more than enough, there's enough rooms, not more than enough. There's enough rooms in the house, but how many house rooms? Three. Yeah, but it's pretty small. I mean, this was definitely a starter home. We got it.

We got kind of rushed into it. But, I mean, it's where we are now. So we do want to be kind of further out. We want to be a little further out from the city and stuff, but it's definitely not a necessity. Further out from the city. Yeah. So you can have less things to do?

We just want to be away from the traffic. And I mean, because that whole area has exploded in the last like five years and it's just not fun to be around, to be honest. So your non-mortgage debt. Your non-mortgage debt. All the unproductive debt. Crazy. 131,979.

What do you think of that? It's insane. Yep. It's a while more than you all make a year as a household. Mortgage property taxes, property insurance, $1,914, $81.81. It's the first piece of the budget. Now your other minimum monthly payments altogether. Dude.

Only student loans kicking. Yeah. Oh, your debt minimum monthly payments, not the mortgage, not the mortgage, is $2,0.41.26. That's more than your mortgage. All the deaths that you all decided to go in, all your around. $2,0.41. Oh, that one hurts. What's all utilities together? So let's think internet gas electricity. What is all that together? Internet electric and water is going to be 90 and then on average 120, 140, so 260, so about 350. Okay.

Phone bills? As a household? Yeah. We're just on the same plan. It's $91 a month. Okay, that's not bad. Yeah. For two.

And this child care. How much for the month? It just went up, so $11.50 a month. Which is actually the cheapest one we can find in the area. It's crazy. I feel like if we want to fill, if there was a cheaper no, I don't even know.

If there was just a cheaper version of child care that people had access to, man, we could fill all those positions that are desperate to hire right now. Oh, right. Because if you're going to go work minimum wage or even $15 an hour, it's hard to afford this child care. It's almost like you make more money staying at home

taking care of the kid yourself. It's really difficult. I have a buddy that on their second kid, his wife just stopped working because her income was going to be all of their child care for their two kids. Yeah. She stopped working. Yeah, at that point it just doesn't make sense. This is just one kid. Right. Okay.

There are tax bennies. You are getting tax bennies, but... For sure. Okay. Either way, child care, phone bills, utilities, debt, mortgage, car insurances, both combined. We just actually combine them, leave, because it comes out of her account and I've Venmo her, so I believe it's like 220 for both of our cars. Okay.

That crazy. For two? Yeah. Cool. Okay, this is where I'm trying to think. This is included in the pile you put into your work food. Okay. I'm doing a grocery budget for the house.

I'm going to do $500. I think I'm going to do $600 because the baby. Yeah. Babystone diaper? Yes. Yeah. I don't know what age they get out of that because they are stinky and I don't want them. Supposedly boys are a little slower.

So people have told us don't expect it. before two years old. So he's very close to two. Yeah, but that's, I don't know. Okay, but there's diapers.

Okay. Divers and wipes, which, yeah. Lovely, nice and expensive. I'm going to give you, try to do 500 for groceries.

If you get that to 600, okay, but try to do 500. Okay. And then total paper, keeping the house alive, including the diapers. Okay.

And wipes and all that stuff. Two, two. Yeah, we buy diapers and wipes about once a month. So that's about $75 to $100. depending on which ones we buy there. So just in diapers and wipes.

Yeah. So 250. So toothpaste. Yeah. Pretty fun. Shampoo all that good stuff. Whoa. All right.

This is an expensive life. Let me see what she brought home from her checking. This Wells Fargo. Petitions. Payroll. She looks weekly. Yes. Yeah.

She makes 831. 61 a week. Well, brings home. She just started contributing to 401K. She should only. be taking her match. She should not contribute to anything else outside of that for now. Okay.

Eventually, we definitely want to be taking everything. Okay, so $43,223 a year after taxes and contribution, buy that by 12. On average, we're going to see about $3,600 a month from her. Why are you $3,400? Because the health insurance comes out of mine at $700.

Oh, that comes out. Yeah, and something we are going to change is in October when it opens up. She's actually going to get back on her insurance for $40 a month, and then that'll drop mine from $700 to, I believe it's like $300 or something. Oh, that'd be great. Having just one dependent is way cheaper than having two, more than doubles, so that'll help there. Yeah, that'd be fantastic.

So right now you guys have a monthly income $7,000. That's what comes into the household. Get that joint checking account started now and get this budget. This budget right here is all your budgets. That's the budget. It is the household budget spent from that joint checking account because you're not using credit cards because you're not a credit card person. I don't give a shit. If you ever use a credit card again, I will always say that people can use the FIS one.

Okay. Because swipe on it, it immediately pays it off like it's a debit card, but it still builds your credit score. So I will say I do have another credit card, but the zero balance. I had to put tires for my Jeep on there. How much is owed on that? Zero. No, I paid it off. So I paid it off.

zero percent interest before. Stop! You're not a critical person because you fall into these situations and then you have a stupid. Stop. Let's figure out your monthly budget. Total. Oh, this is not looking good. This is not looking good, is it?

Oh, geez. Thank goodness you're both working. That is not an option at this point. 6,517 is what's needed for you guys to survive. survive meaning your guys's needs category is 93% of your income

what can we do with that what can we do with the other 7% of your income that's insane that's insane that's a we're never getting out of this debt ever again you know what that unfortunately is and that sucks because I love what you're doing you're helping people and you work in a lot of hours

and all that shit it means that you're probably getting a second job when you're not at the firehouse absolutely sucks and is the last thing I would want to tell you, but it is like not a choice. It's basically not a choice. And then, oh my gosh. And then when ever, so when.

So would it make more sense to get a second job or to continue to work overtime? Because what I can say is with, no, no, no, get all the overtime you can. But if there's extra time that the wife is at home with the kids and you're not getting overtime, working a second job, maybe you're just running Uber Eats in the city. Okay. And then whenever you're able to rest and the kids there, maybe she's doing the same thing. Yeah, she was already saying she wanted to look for a second job. I'm just trying to avoid having her have to work a second job, honestly.

Well, I don't care. Okay. Because $483 is not going to do anything for this. So again, the bad debt, the bad debt that's not contributing to anything. Let's just do an example. A little example, 483 divided a lot. Okay, it's going to take you $27,000. months to pay all that off.

Not your mortgage. Not your mortgage. 273. Also known as 23 years. Yeah. So, yeah, she can not get a second job and you guys can do 23 years. That's why we were considering selling the house and paying the debt off right there. That's an avenue. But, man, it's a wealth builder tool with some of this.

No, I know. Well, they're... Okay. Yeah, these minimum monthly payments are killing you. but we can make progress here man if okay how much you're going to save on the health insurance starting in october again uh i believe it's i will save three hundred dollars a month okay so that adds three hundred dollars to the picture if she brings an extra five hundred dollars a month in from a job you bring an extra five hundred dollars a month in that brings us to about one thousand eight hundred dollars

yeah one thousand seven hundred dollars i will say with with one overtime shift i bring home six yeah that's great so just definitely do that but the average we took the average you gave me was You said overtime months and no overtime months, the average. Right. So that's great. Everything we get that, we get bonus. But 1,800 with you guys working the jobs, the only solution is if you guys bring in an extra $500 from outside work each. Okay.

Plus that insurance gets cut. Yeah. And that's $1,800. But the first thing I need you to do, and this is scary because this is going to take forever. That's why you guys are going to go get that. that other job right now, maybe even working more, probably not seeing each other, which is really going to suck. But I need you to guys have at least a two-month emergency fund before you even start paying

off the debt because you have a kid, and it's way too risky. And your job is a quite risky job, especially. We need to have a two-month emergency fund on the site. And at the pace, that's $1,300. $1,300 with the extra money you have, takes 26 months to have to have to have. two-month emergency fund. Right. That's insane.

We can't do that. Even with the $1,800 we're aiming for, it takes seven months just to get a two-month emergency fund. Okay. I mean, I might be changing my opinion because as a household, you guys have a higher median household income than people in your area and the people in the country and the people in the state. You guys are not doing bad.

You're just gone into so much death debt. Yep. You've not been making progress. And he's still been putting money on the credit card. I'm entering a place of no hope right now, which really sucks. So the solution that I am seeing is getting rid of that beautiful 3.2% rate. So I think what I do, what I do in this situation, unfortunately, as absolutely disgusting as it is, we put up the house for sale.

We try to get it where you walk away with that 100,000. How many have you been in it? Just under three years. Okay, so it's over two years. Yeah. Which means you will not have to pay taxes on it. We went to list it before we were in there for two years, not realizing capital gains tax before our realtor said, hey, wait a minute. And we were slated to make $180 at that point because that was when the market was insane.

Yeah. We should have sold, paid 20% capital gains tax, and we still would have walked away with more. Markets been taking up this last quarter. So, yeah. Like you might be in a good, there's no houses for sale. And people still want to get houses, even though the rates are dead. Yeah. So what I'd be doing is I'd try to sell the house. Okay. See if you can get 100, maybe more. Where's the cutoff point? When do we decide? If you're not walking away with a certain amount of money,

where do we not sell it? So when I was talking to the realtor, she said 5% down, she'd be fine for the next house because I always thought. You're not going to get into another house right now. I'm going to have you be renting. Well, but I want, I want to hold on to at least that. So that would be $20,000 for a $400,000 house for a down payment. So as long as I don't give a shit about that. As long as we can make $7. $70,000, we can pay off the $50,000 in debt and then still hold the $20,000. Well, $50,000. You have $131,000. No, I know, not including student loans.

That's the credit card, the car, the personal loan, and her credit card. Listen, you're going to put aside $1,200 from the sale, if you get it, $12,000. That's an emergency fund. The next down payment, we're going to save up eventually. Okay. Everything else is going to the debt. It does not make sense for you to have this sitting aside. even if it's that 4.4% interest in the SOFI,

all these interest rates beat that. So you're just losing the money. There's not a single interest rate that does not beat that, except for the mortgage, of course. So, yay. I'm going to just get a rough value on your house. Okay. Okay, what's the purchase price?

What's the purchase price you got for? We got it for 243. I think we owe $2.30 on it. You owe $2.30? Mm-hmm. I want to take a brief moment to think. thank today's video sponsor, ORA. Are you sick and tired just like me and everyone else honestly of receiving endless spam calls every day? I mean, look at this. Let me open my phone. Look at this.

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or check out the link at the top of the description below. Thanks again to Aura for sponsoring this episode. I mean, even Zillow will give you, I can't believe they're starting to do this again. I thought they stopped doing this. They'll give you a cash offer of $317,000. Really? So with that,

they'll do that. I bet you can sell it for $3,000. 30-ish. That's what the realtor was saying. Now you're going to have to pay the fees and whatnot, right? So we won't bring home 100 if we make 100. Bring home like, what, after everything, 80 to 90? Yeah, it was about

85 or so. That might be the only solution to pay that. I'm sorry the situation is so dire, man. It's really sexy because you guys are into a home, into quite a cute home, I will say. It's a nice house. Looks like a nice neighborhood. Yeah. is it just a learning lesson not to get yourself and to just complete it.

Absolutely. Because now you're just swimming in the sewer and you can't get out. So hopefully we have $85,000 to play with and we definitely pay off that high interest rate credit card. We pay off the personal loan. Pay off her credit card. Probably pay off the car at that point that's $48,000. We'll pay off the vice credit card, your credit card, your personal loan. And her car.

then pay off her student loans. Okay. And then everything else remaining goes to your student loans. Okay. And because they're over 5% especially, but we also put $12,000 aside. So I bet you guys pay off credit card personal loan, her car, her credit card. Most, if not all of her student loans, and then that's probably it.

Then we're stuck with the $700 minimum monthly payment for your student loans. And now is that $700, is that with the 10-year repayment plan? probably okay well because I know you're not what do you want income income driven well it wasn't before things of well what income thing are you going to be like your guys's income isn't bad but either way the income driven repay payment so

what they what happened before the last few years is like a dozen people like actually made it through that income I wrote a little song to remind you choice hotels get you more of the experiences you value the can be a hotels got it all

a rooftop all Have a ball. Bring a date your squad or even your mom. Book direct at choiceotails.com. Like actually got it forgiven, but the Department of Education right now, the current one, has forgiven tons and tons of those. So that process has actually made sense. One reason why I'm still skeptical, get into it. Okay.

So if it's administration to administration, what if by the time you're ready to qualify, whoever's there is like, no, we're not doing it. Because it feels like it feels like that it's like up to whoever's just running the department at the time. Right, right. And that's not politics. We can agree or disagree with all that stuff. That's just like how it's been historically. For sure. There's also, I logged in the other day and there's now, I forget what it's called,

but basically for government employees, it can be city, state, or federal. And it's a repayment plan where if you make a payment for 120 months and you're not late, they forgive what's left. So it's 10 years instead of 20 and they'll forgive what's left. And so I was going to be in this for 10 years. I mean, yeah, that's the other part is. Because we could get you with your guys, because your rent, well, your debt minimum monthly payments will be going.

You'll have an extra, because you guys still need to work extra money during this whole thing. Okay. But you should have an extra like $4,000. Right. At this point, you can pay that off in a year and a half. Yeah. I would just rather be gone with it a year and a half than 10 years. I'd be trying to convince her to put all that money towards my stuff.

student loans, though. That'd be all. Why? I mean, just, because I guess she might want to do other things. I just feel back for her. Well, no, I feel back because the majority is to be here. A majority of that is my debt. Yeah. Well, so she signed up for. No, I know. I know. Well, is she, are you guys not even close to on the same page about this? No, we are. I mean, she, like, we've talked about selling the house. That's why I called the realtor. What about the student loans done? I mean, I don't, I haven't, we haven't really talked about student loans because she's been making payments nonstop. So hers have gone down substantially. I think she started like 20 grand or something like. that. Yeah, no, I saw. Okay.

Well, I mean, you do what you want to do. I think just based on, if I was in my history, in my history of payments and being strategic about every single cent, I might do the 10-year thing. I'd look into how reliable that is. But I might do that for myself. But based on you, your history of debt and all the stuff and just being reliable and then things just constantly change and your job always changes. Even if you like this one right now, you've been in it for like seven months,

your job is always changing, you're going to the dad, getting out of debt, going into debt, whatever, and popping out babies left and right. Just the one. I know, but you said you want more. So, yeah. Especially if you're having more, let's just get rid of this. Let's get rid of the risk in your situation based on your own. So I'd get rid of that in a year and a half.

And if you guys, what makes me nervous? What happens if you can't sell the house for anything that you feel comfortable with? What if you just can't? Even this cash shop? What if this cash offer goes away? Right. And then what do we do from there? You pay this off in 25 years?

Right. So this is a very difficult situation. And I'm not usually in a position where I don't know what to do. This is what I'm hoping can get done because you get a good offer on a house. Right. You don't. Is that year and a half spending like that $4,000 that we would save every month on the student loans? Okay.

But you have a two-month emergency fund sitting on. Right. And then after that, you're probably spending on that. you're probably spending the next half of that second year, saving a portfolio for an emergency fund. Okay. Then boom, you have a six-month emergency fund.

You are 26, 27. She's 25, 26. Or 30, sorry. 36, 37. No, 33. Yeah. And she's 35, 36. Somewhere around there.

Okay. And then you guys are probably putting about, you guys are very behind a retirement. She probably wants to put about 30% aside for retirement and you probably want to put about 30% aside for retirement. Okay. And then I would try to when you do start saving up to get it. That's towards retirement.

Yeah. I'd probably cut your fund money on both of your side. Both of you guys, I'd probably cut your needs, live cheap for a bit because you guys are renting in this situation, by the week. Right. I'd probably cut your needs by a bit and your wants by a bit and put it into a down payment fund.

Okay. And then eventually you get a house. But when you get a house and when you get this rent, max out your needs as a household household incomes, combining finances, 50%. No higher than 50%. And then you're each investing 30%. So there's 20% you can put on fun. And with a good income, good household income like you all have,

you can do a lot of things with that. You can take nice vacations and stuff like that. When you say, we're not going to have much fun this month because next month we're going to spend this month's fun and next month's fun by going on a big vacation. Like that's great. Do that. Okay.

We can't do that. to tell you a full of the phone emergency fund in about two years, and that's only if you can sell the house. So it's a sketchy situation, and I wish I had a better answer to it. I hate, hate, it goes against every bone of my body to get rid of that 3.2% interest, but I'm also a slut for real estate. So it's, yeah. No, that was the, that was our hang up is knowing that we won't get an interest rate like that for years from now. Yeah.

So. Yeah. But you guys didn't even into your 40s yet. So there's still time to get into the forever home. Maybe the next home that you guys. as aim for is the home that you can grow into a little better. Yeah, for sure. For sure.

But it's going to be a grind dude, and you guys have to get on that same page. Well, it's definitely made me nervous is you've paid off the credit card. You've built it up. Chop them up, close the accounts. I don't give it. Even if you paid off that other card, I don't give a shit. Close them. You're done.

No more. Credit cards do not exist in your life. Probably don't exist in her life because she's holding a balance. You need to get on the same page whether or not that's having the conversation or going to like a, Counseling service. Yeah. That's fine.

But you guys need to get out of this debt. And then it's a sacrifice for two years. You guys are still working here in those two years, extra jobs. That's what got us to the numbers. If you don't, then paying off your student loans plus her, or plus the six-month emergency funds probably going to take like five, six years. Right. You need to bring in that extra money because your needs are still quite high.

But right now, your needs be 93% of your income that's like actual financial insanity. Yeah. It's crazy. You can't do anything with that. And the fact that there was any fun money spent, I understand why you guys aren't making any progress on the debt and just relying on little extra bonus tiblets from the, yeah, from the overtime.

But work as much overtime as you can. Okay. And work an extra job. Have for work an extra job. Okay. And then you guys get to spend the rest of your lives together without having to work extra jobs. And your kid and future kids will be able to spend all the time with you because you're in a good place, financially speaking,

and then you're going to be able to retire, and then the kids won't feel morally obligated to take care of you. Yeah, absolutely. But you fuck around as you have the last decade and a half, and then they will. Yeah. So that's up to you. No, for sure.

That's why I'm here. I know it's not a good place to be in. You know yourself, you know your relationships. What do you think is actually going to happen when you leave this place? Oh, no, I mean, I'm going to change. Because more than anything, one, I want to be able to retire. And two, I don't want any stress on my kid. But my dad's actually really smart financially, and he's set, he's partially retired.

He just works because he doesn't want to get bored. Sure. He could retire if you wanted to. My stepmom retired. Like, they're in a good place financially. And that's where I want to be when I'm 65, like they are. So I want to change. I mean, what are you guys going to do?

No, in relationship, what's going to happen? I mean, I'm sure she'll be on board. Like she wants her debt, which isn't even that much paid off. I mean, she's even said she's fine with selling a house. She'd prefer not to because that interest rate, obviously. I prefer not to as well. And renting. But no, I mean, she wants to get rid of it as badly as I do.

It's kind of the nuclear option. And right now, mostly because we both want a second kid. So she'll pretty much do it so that it's financially doable for us to have a second kid. Okay. Yeah. Cool. Any final thoughts? No.

I just, I knew it was bad. And that's probably why I had never sat down and gone over it, honestly, because it's like out of sight, out of mind. Yeah. And I'm bad about that. So it's good to have it into perspective that I didn't realize it was 93%. Come back in a year and a half. Bring her with you. All the debt should be gone.

And you should have a two-month emergency fund year and a half. Don't let us down. Okay. All right for Mr. Joshua, you know, he kind of nailed his hammer financial score. And it's because of the house that's really pulling some weight. Spending in a budget, certainly spending money absolutely shouldn't have. It was stupid. It makes no sense.

Two out of ten, because it wasn't the absolute worst that we've seen, and we know it can be a lot worse. Debt, one out of ten. No collections, no owing the IRS, but it can't be higher than one, because that is some disgusting debt. Retirement, definitely behind for their ages, but there is something in their two out of ten emergency fund. There's nothing, and that makes me scared, especially with a family with a kid, zero out of ten

real estate. Because they didn't put much down, the equity position is only good because the value of the house skyrocketed over the point. past couple years, but they have to sell it anyway, four out of 10. And our financial score aggregate, two out of ten. Check out all the resources I've linked in the description below. They are resources that I either use or would use, and there's paid affiliate links there.

You can get a high yield on your money with SOFI at 4.4% at the time of recording this episode, or you can put $5 in acorns and get $5 for free. And there's a lot of other things as well. Don't forget to follow my Instagram and Twitter. Thanks. sidekicks or auto and home insurance. With USAA, you can bundle your auto and home and save up to 10%. Tap the banner to learn more and get a quote at usaa.com slash bundle. Restrictions apply.