Financial Audit - She's Going To Die In Poverty

Episode Date: August 12, 2023

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My name is Danny. I'm 26 and I'm based in Tulsa, Oklahoma, and this is financial audit. What do you do in Tulsa for a living? I'm a dog groomer. Oh, my dog literally needs that right now. You have absolutely no idea there's so many stickers stuck in his long fur. It's the season. Oh, my goodness. Okay, very cool.

What are you bringing in? Not very much right now. I moved from Washington to Tulsa. Washington State, D.C.? Yeah, Washington State. Okay. And I was making almost 3,000 a month. I was in a higher volume salon.

Now I'm doing my own self-employment between two different salons. So I'm bringing in post-tax, like maybe $1,700 right now. A month? Yeah. Ooh, that's hard. Okay. Jeez. You're W-2ed.

I know. I'm 1099. So that's after putting a lot. a little bit aside. Yeah. Which of this income, I mean, it's not going to honestly have to be much in terms of taxes. Yeah. But yeah.

Wow. Well, right off the gate, what's your rent? We split it. So my rent is 600. Who do you split it with? With my partner, Jaden. Oh, okay. Cool.

So 600. Well, I'm glad Tulsa's apparently insanely cheap. It's not too bad. We're not in the best neighborhood, but it is. Is it safe? Are you safe? Yeah. There?

Okay. And I mean, that's what matters. As long as you're safe, then I'm good with living in a cheap place for a bit. That's 35% of your take home. So that's definitely more than we want. We want 30 to be the extreme max in like a proper financial ecosystem of life. And you were beyond that. Yeah.

But we obviously need to gather the whole picture of your financial situation. See where your life is at and then see what we can do. So like what brought you here? What does your financial situation look like today? What's up? Well, what brought me here was my partner. He was living here, so I moved here to be with him. And then my financial situation is terrible.

It's been terrible for years now. Okay. I would give myself like a zero. Really? Okay. Why is it a zero? My spending habits are. are not good. I've had debts that I had during, I'm bipolar, so I had episodes that I didn't know

were episodes. And so it's all kind of now that I'm medicated and doing all the of the legwork there, it's just biting me in the ass now. So the, yeah, we actually had someone on just a couple weeks ago. I don't know if you saw that episode, someone who also struggled with bipolar disorder. And that's driving. them into a lot of, you know, struggling financial situations that they're now trying to claw themselves out of. How long have you been receiving help and everything? Not very long.

I was diagnosed in February. Of this year? Of this year. Yeah. It's only a few months ago. So I got on meds, went to psychiatrists, went to therapy. How has it been since then? It's been amazing.

Good. It's been so much better. I'm so sorry that it's taken so long. Yeah. It sucks. Yeah. As someone who deals with mental health struggles myself, I definitely get it. Mine's more on the anxiety side and like a panic disorder.

You know, it can be crippling. And I couldn't even imagine bipolar has to be one of like the hardest things that exists. So. Yeah, it can be hard. Good for you for getting help and getting, uh, taking care of. And now looking at your entire financial situation and trying to do better. Yes. Okay.

Definitely. I have goals in mind that I would like to get to. Um, but I need to fix my situation first. We'll talk about those goals. I'm curious. And then we'll see how we can kind of get there and pull ourselves out of this financial situation. So zero out of tenets, would you give yourself? Yes, absolutely. I want to take a brief moment to thank today's video sponsor, SoFi.

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by inflation and the Fed raising rates. And if you choose SOFI to pay your credit card lender directly, you can even receive an interest rate discount. So this could be a way to take charge of your finances today. So to see if the rate is competitive for you and in only 60 seconds without impacting your credit score head to sophy.com forward slash Caleb hammer. Thanks again to sofi for sponsoring this episode. So in the overall financial picture of your life, like here in the documents I have, I have a credit builder to check in accounts and a savings account. Do you have debts? Yes. I have debts. I don't have the paperwork on them. Oh, well, let's hear about these debts. Okay, give me the first one. So the first one is a car that is now has been repoed.

It's a Mitsubishi Lancer. It was repode? Yes. Okay. I owe about 30, sorry, just under 4,000. Oh, 4,000? Sorry, yeah. Oh, that 30 scared.

Yeah, no, no, no, no. It was a stupid buy I could afford it at the time Because I was in an episode So I was working three jobs for no reason So I could afford it at the time No really? Yeah

So now that Life changed drastically So I couldn't afford it anymore So about 4,000 on that I have my current vehicle So are you trying to Okay go ahead What's your current vehicle?

My current vehicle is a 2012 VW Jetta and I only owe like 30 I just made another payment so 30 200. Okay, you get me with the 30s. It keeps scared me. Sorry. What's the minimum monthly payments on that? 200. Oh, wow. Must have been on.

Okay. What was the purchase price? When did you get it? I got it last August. The purchase price was I think a little over $7K. What's the interest rate on that? I actually don't know. I'm trying to get a hold of the papers.

Do you have credit card on your phone? I do. The thing is, is the car was purchased through a friend. This is a personal loan through a friend? Through a friend, yes. Did they borrow the money or did they lend you the money from their own, like, pile of money? They purchased the vehicle and I pay them. Okay, but the loan is under their name?

Yes. Okay. I'm curious. Yes. So I've been trying to get a hold of that paperwork, but they haven't gotten back to me about the APR. And what are you doing about the repo situation? I'm making payments on it.

Okay, what's that payment? It's 100 a month. What was the interest? You're going to be mad at me. It was 21%. Oh, that's death. Yeah. Not mad at you, but the interest rate is what scares me.

I'm typically not mad at the end. individual unless they do something. That's in the past, but I am just mad at that interest rate for like existing. Yeah. Like I said, it was a very stupid purchase. I shouldn't have gone. When did you do that? That was back in, I want to say, 2018. And that vehicle was purchase price of $10,000.

Okay. When was it repoed? It was repoed last year. Have you been in contact with them? I wasn't for a long time until it went into collections, so that's in collections. Yeah. So I contacted the police. Wait, wait, wait, okay.

Who are you paying? Are you paying them or the collections agency? I'm paying the collections agency. That has interest on it, so? Not that I know of. Okay. And what are you paying them? I'm paying them the $100 a month.

And $100. It's only $4,000. But yeah, you don't make anything. Is that $100 is going to take forever before you can even... Where is this car? I don't know. Like, that's going to take 40 months. Is that even worth it?

Because I've never heard of car refund. I've never had anyone in my life repose Basically they take it and they sell it off And then I pay Because there was No I mean I know how it works I'm just trying to figure out If you've been in contact with them

In terms of any negotiations Because you know it's typically like you pay it off and full Then you might be able to get it back But it's in the collections No it's been sold And it's off So now you're just trying to pay off I'm just paying off the

Debt for something that doesn't exist Yeah because there was damage to the vehicle at the time. So I'm basically paying off that damage that I didn't get fixed on time. Kill me. Okay. Yeah. I assume there's another debt.

Yes. From how this conversation's going. Let me grab my phone. I have a list. Oh, okay. A list. I'm terrified. If you have a list of things on your to-do do do docket today,

one of those should be subscribed because we're trying to get to the 750,000 subscribers. So she's pulling up a list. Well, she pulls up a list. you subscribe um okay so I have

as close as you can do the way dental credit um of 875 oh to who um a collections everything's in collections

everything's in collections oh everything's in collections except for my Jedda yeah how many miles is on that Jetta 2012 um

just hit almost 156,000. So you might, how's the condition of this car? It's decent. Okay. Okay. Okay. Okay. But probably in a few years you'll need a new one, right?

Absolutely. Yeah. Okay. Okay. Dental? What do we have? We have a Banfield debt. What was that?

Oh, like the Pet Hospital? Yeah, the Pet Hospital of $682. Okay. And I'm actually making payments to them right now $50 a month. Yeah. And then I have two things of medical debt. One at 1,698. And then one at 1,114.

Okay. And then the last one. Oh, last one. Last one is a credit card that is, like six years old now at 1,296. They've been making payments. I haven't made payments. When's the last time that's had a payment?

I couldn't even tell you. So probably that entire six years? Yeah. What was the balance on that? 1,296. This might be the first time on this show where we talk about just letting it fall off your credit. Because you're almost there. Right.

Yeah, it's seven years, right? Besides the seven years, how old is this other, or besides the six years of that? What's the oldest one besides that? And how long is that? The oldest one is probably the Banfields. How old is that? Probably about the same, about six years. You've been paying on that, though.

I just started payments. Ah, you just started. Well, that ruins it. So there's been activity on that account. Yeah. So that will have to be paid. Okay. Besides that, what's the oldest besides the Bancfield?

That would be the Mitsubishi. And that is how long? That was 2000. It doesn't matter. You're making payments on it. Yeah. Okay. Medical debt.

How old is the medical debt? Medical debt is just a couple years old. Dental? Dental is about six or so. Have you been paying that? No, I have not. I am not a fall off the credit kind of person, but this could be the play.

It will fall off your character for it in seven years. More close to that. Statue of limitations on the debts, though, in terms of them still hounding you. Are you being hounded? Since I started making payments to the two, yes, they've been calling me. Good. So you started making payments and then they called you. Yeah.

Thrilled. Yeah. But the other ones haven't? No. Then I wouldn't worry about the statute of limitations in terms of pursuit either. If I'm not mistaken, those varies on the debts as well. But it'll at least fall off within the seven years, which will help your credit, which is, despite what many people. So manual underwriting, such a painting.

It's kind of hard to find. Having good credit makes the rest of life so much easier. Yikes. But so what's going to fall off is that credit card again. right? Yeah. Cardi cards falling off and the dental is going to fall off. Yeah.

How'd you get into this collection is in the first place? Because what? Just afraid if you've done 26 years old? Yes. Dude, this is insane by 26 to have that many accounts in collections. Yes. No matter what we do, how are we preventing you from going into one, two, three, four, five, six, seven accounts of collections again in the few. future.

I would say that I've already started learning my lesson about it because it's biting me in the already. And I've been making payments perfectly with my JETA and the insurance payments and everything. Good. And I'm medicated now. So that has been a huge help in keeping me from going into episodes to where I'm not. So you'd say all these. or episodic?

Yes. Not that that's an excuse. Well, sorry, that's incorrect. The dental was because I needed a wisdom tooth removed. Okay,

which is very fair, but why did you then not pay it? So basically because I just ignored it, and I'm just going to say that. So why did you ignore it? I just want to make sure we are not ignoring payments in the future. Why did you ignore it?

Why did you choose that? Because my, life was pretty insane at the time, and I had a bad habit included into my episodes of ignoring bills. Okay. And just ignoring normal adult things. So I'm glad life has become more stable and we're medicated now, but life is unpredictable. We still might be medicated in the future, but what if life goes wild again? Even though you will be, you know, medicated and receiving help.

What if life goes wild again? what's preventing us from, oh, I'm not going to pay rent this month. Okay, or the next month or the next month. I mean, honestly, I have my partner to be a good rock for me. Married? No. That's not guaranteed. It's not even guaranteed with marriage, but at least there's legal backing.

I mean, honestly, I don't know what to say then because I can't really foresee the future and what kind of episodes I'll go into. I'm not saying that will happen. I'm obviously not saying I hope that happened. I hope it doesn't happen. And I just want to make sure that because we ignore bills, because life was crazy, that when or if life gets crazy, you know, a different kind of crazy same thing. Who knows? That we don't fall into that habit again.

Because then you're going to spend years digging out of that hole. Exactly. And like I said, I. am in a completely different spot than I have ever been in. And I have learned that that is not okay to not make payments. And that's all I really can say because I can't guarantee that. Oh, I just, the stupid, the stupid repo. Yeah.

I want to get this clear. Make sure I didn't miss hear this. The one that's repo, that was under your name, right? Yes, that one's under my name, yeah. All right, well, let's continue getting the full picture of your account. We have four different accounts to locate here in paper. This one's a credit builder. Credit builder, yeah.

Are you familiar with it? Well, there's lots of credit builder. Some can be good, some can be bad. Usually because credit builders cost money. I'm good with them. Once, usually we're out of debt because we're trying to minimize minimum monthly payments. So this one is one that I put. in money from my checking account through time and I only get the amount that I put in.

Yeah. So I basically use it like a debit card. What's their fee though? They don't have a fee, I believe. Okay. I'm going to fetch it. I might be wrong. Very good.

And it actually has helped my credit. It took it from a $490 to a $565. $5.65. Yeah. No, when these collections either fall off or get off because we're going to pay some of them, then that's the big. thing. Yeah, I mean, yeah. So obviously there's some of these deaths that we need to pay for, correct? Yeah. There's deaths that we're needing to pay for. Why are you getting to quitos at a gas station?

Well, mine spot, what is my, my spot is not therapy, is it? Mind spot is therapy. Good. That's fantastic. It's $8. So I was skeptical that is therapy. So my co-pay is only $4 and I was just paying two at the time. Then obviously I'm down for that. That's fantastic. So for therapy in my meds, I spend a total of $12 a month. Incredible. We're obviously going to put that in the future budget because we are not negotiating. I mean, that's incredible. I'll probably recommend that for people going forward.

Okay. I'll take a look into it first. But what is DGX? Because that's everywhere. That is dollar general. Dude. Okay. Dollar general, dollar general.

What's penis systems? PNS star LC. Systems. Can I see? 35. Oh, that is the $50 payment to the collections. Okay. Gotcha.

Yeah. Sonic Drive-Thru, do we really be going to Sonic Drive-Thru when we need to pay off some of these collections? Do we really need to be going to Taco Bell? Do we need to be going to that dollar store, dollar store? Eloat Cafe and Cater, do we need to be doing that? Do we need to be going to Taco Bell? Do we need to be going back to the dollar store? Is that stuff?

And it's not like they're overly important purchases, $3 here, $20,000. $7 or $10 there. Come on. They add up, though. Yeah. They add up. So do we need to be doing that? No.

When there's collections. And I'm glad that at least with the credit builder, the money that you put in is with the money that I spent. But on this next account, we started with $4.38. To be fair, I don't really use this account anymore. I don't care. It still happened. It still happened.

I don't really use this account anymore. What do you mean we don't really use this account anymore? There are purchases all over the place. You mean you don't use this account anymore as in like a week ago? No, so my main money goes into my chime. Only $200 or so goes into the U.S. bank. As of like a week ago or something, because it's not like this wasn't, I mean, this was still going through May. Through May.

It was just a little bit of money here and there. Okay. Well, guess what? Overdraft because negative $4.30. And we ended. Even though $7404 came in, we ended. ended with a negative $1.12 cents. Two overdrafts with also Netflix payment, which were canceling immediately.

Fun fact, congratulations. Some debit card purchased from a store based on Rose Rock in Michigan and Brom's store and Popeyes and Reesores and Resort. And other one from... Research is groceries. That's okay then. I've just never heard of it. Sandos and the Rose Rock and Audible. Well, Audible is good, but we're going to the library while we're trying to pay off that.

Good. Google Storage. and P-F-X-L. That is the gym. Okay, then we're good with that as well. And then paying for like renting a movie or something on YouTube, I don't know. But premium? Yeah, YouTube premium.

We definitely don't need to be going to the Sand-Dose and whatever that thing on a Rose Rock and then Popeyes and Netflix. We're not doing that when we're trying to get out of debt. We're especially not doing that when we start the month with negative and when we end the month with negative. See, this comes back to my point earlier where I was a little nervous of going in the future. That was a month. If we're not managing at that point, I'm just, I'm glad that you don't have any open credit cards right now.

Right? No, no. That isn't that credit card builder. So, yeah. I know I'm not, I know I'm not a credit card person. I don't think I'll ever have another credit card. Good. Yeah.

It's fine if you aren't. The majority aren't. And that's okay. But guess what? And I think that makes me nervous. Chime checking account started negative $4.63. Started negative. Two accounts out of the four accounts and started negative.

Two of the checking accounts, there's only two checking accounts and both started negative. It ended positive with $7. This is why I'm nervous. American AI, Captain Scripps Office. So that was when I went, I was at the airport when I went to go visit my family. I didn't pay for the plane ticket or anything. I just paid for a couple things for food. Okay.

Okay. You eat a sandwich before because, because normally I wouldn't care, but we're trying to get out of collections. And even more importantly than that, the two chicken accounts that we have started negative. Do we be eating food from airports at that point? No. No. Dollar store, general, apple bill, upper bill. I don't know what roping is or pop.

Well, I know what Popeye is and there's an Albert thing. And then Andy Aldi with Paying through PayPal and Jadenhouse. So the Andy eyed, that is a payment for my insurance payment to my friend. Good. Yeah. I pay her $200 and then $80. So many services and stuff that I've never heard of on years, ever before my life. But still, again, the Popeye's and the Roppa's and the Rort and Jadenhouse.

And Captain Shkrimp's office in American AI. and... The Jaden House one is usually for rent or bills. Somebody thinks that just... I've never heard of it before. And so weird. And then the dollar store. Then an appra bill.

And other Jaden House, hopefully, bills. Yes. And then that and die thing. So again, a lot of unnecessary payments, even though some of those, okay, they made sense that they're called out, still a lot of unnecessary payments when we're starting with negative. And we're ending another one with negative. And we're only ending that one with $7.

If you didn't go to that stupid... place to eat in the airport, you would have had double the ending balance. Double the ending balance. Yeah. And then in savings. I mean, it just really rounds up. And it's a 2% yield anyway. I mean, I wouldn't use that.

Well, okay. I try not to plug too much, but I just, I like them because of the savings account, but come on, we'll be getting like 4.3% with SOFIs, high yield savings. Okay. Like, I mean, we may as well double our rate, right? Fair. So you can check out my description for that. But either way, yeah, there's only $159 in here anyway.

There is more in there now. How much? There's $356.13. Do you feel fully dependent on your partner? Yes, I do. Yeah, I bet. $1,500 a month? All these bills, rent 35% of your income, then we're not even talking about utilities or any of the debt minimum payments that you've done.

So my rent is including utilities. It is, really? Yes. We pay $1,200 including utilities. Okay. That is wild. All the food going out to eat that we could calculate in like the unnecessary spending, $411. Wow.

$411. $60 in gas. Yeah, I don't spend much in gas because I work like five minutes away from my job. Good. So gas, 60. And then utilities was, uh, uh, rent in utilities to 600, right? Yes. Is that including internet?

Yes. Good. Wow. Very good. Car payment is 200. 200, yeah. Car insurance is what? 80s, 89.

It's also good. Yeah. Um, now this $100 that you're paying towards the repo card and the $50 towards Banfield, is it which you negotiated them or is that just you trying to make progress? No, it's what I negotiated with them for monthly payments. I wouldn't have done that. I would have tried to save off a chunk of money and then negotiate to like pay half. So you're pretty much committed to that then.

Yes. I'm going to try and save up money and maybe trying to renegotiate with them, but as of right now, yeah. What happens if you don't pay? The minimum monthly payments. I don't know. Well, because it's already in collections, I mean, I might just stop. They'll hound you. Yeah.

If you're okay with being hound. No, we're stopping that for now. We're taking away. Yeah, we're stopping that for now. Okay. Both of them? The hound you and, yeah. Okay.

Okay, very good. Now, how do you guys do groceries? We split groceries. I spend about $200 a month. Perfect. That's the number I was going to give. And I'm going to give you a. For hair, skin, toothpaste, all that good stuff, $75 a month.

Toll paper, all that good stuff. Yeah, that's fine. Any other minimum monthly expenses you can think of that you are forced to pay? I would say the gym. I pay monthly 25. Good. That is definitely worth it. And same with the therapy with the 12.

Oh, yes. Yeah, that's too. That's fantastic. Anything else? Not that I can think of. Let me double check here. Nope, that's it. that I'm forced to pay.

So your minimum monthly expenses in order to survive is relatively cheap compared to a lot of people, especially a lot of people on this show, 1,261. It was $1,700. You have an additional $439 left on a monthly basis, and we're not doing the $150 towards those collections. Okay. So we have $439 left. You have $365 saved up.

Yeah. month number one just okay obviously save up as much as you can this month but we're just going to talk as July as month number one and July you put that 439

with your 356 and savings brings you to 795 that's what you're doing the month of July you're following the budget you're not spending a single cent outside of that if your partner wants to take you out to eat that's fantastic yeah a lot of other things you're not paying for fun you're not doing anything you're canceling

Netflix I don't care you're digging down going crazy in a good way then August month so month number two saving up another 7193 getting you to 1,000 234 perfect so month number 1 month number two you're putting all that extra money aside okay and it's aside it's perfect you have a fully funded emergency fund? Well, no, not even close. I can't believe what you said that. No, that's not close. You have the starter emergency fund.

You have your one month emergency fund. Okay. Lovely. Now the goal, and you don't know the interest right on your own car? So you're paying your phone that's killing you. I know. I'm trying to. I can't believe your friend.

You've even allowed that with your history, but either way. Say thank you every day to that friend. I do. She's, I've known her since. sixth grade and we're basically family. Again, I don't think we're worrying about the credit card that's in collections. I think we're going to wait for that to fall off.

And if they're not already contacting you, I'd set you limitations. We're just not worrying about it. Same with the dental. If they're not hounding, who cares? I mean, you know, I mean, there's the moral thing. If you want to pay for it, go for it. I'm just thinking math and how do we get you from A to B as quick as possible? That's where my logic is right now.

There's the moral. Yes, you borrowed it. Maybe you should pay it. but I'm going to let you determine that on your own. So the collections that we want to deal with is medical debt and the other medical debt. And then the repo car and the Banfield. Oh, Banfield.

What I'm going to do, okay, cool. Month number three, 439. Save that up. Call up the collections of the Banfield people. Like, I save them a little bit of money. I have $439. I'll just settle this. Come on.

Be done with it. It's all I have. I literally have nothing else. Okay. Those ain't no. Call them back once every week until they eventually say yes. Okay. And then pay it off.

Just don't pay them anything until that. Never give them access to any of your account information or log in information, anything like that. They might try to scam me into that. No. Don't do that. So I only have this. This is what I have. Let's settle it.

Keep asking them. Then for the other one, for the second medical debt at $1,150, the next month, save up. Maybe we're trying to save up to like $600 there over a month and a half. And we're saying, hey, this is all I have. This is all I have. Let's just finish this. Come on.

Let's just do the process over and over again. Yeah. You get them. Settle it. Medical debt too. We're doing the same thing. We're probably saving up about $1,000. Okay.

Over the course of like two, two and a half months. Like, it's all I have, $1,000. Repeat the process to the pay it off. I'm making it sound so much easier than it is. You're going to have to hound them. Yeah. Once a week, this is all I have. It's all I have to my name.

This is all I have to my name. You want it or not. You want it or not. They're taking a risk on it when they bought it, but they bought it on pennies on the dollar. So a lot of them, they're just lucky if they get anything. So if you really say, this is all I have and just make sure they know that over and over and over again. Like once a week, then that's cool. If they say no, they get upset.

Like, okay, talk to you later. Next week. Hello. Talk to you later. Next week. Hello. Talk to you later. Do it until they give in.

With the car, the repo one, the $4,000, maybe over the course of, I mean, it would be great if we could get like $2,000, $2,500. Maybe it would be $3,000. Try with $2,000. No, because then we don't want to go out from there because then I think they can just keep getting you up. Yeah. Maybe we save up $2,500.

Okay. Over the course of about six months, say, it's all I have them. My name, you know, I'm not going to repeat myself, but repeat the process. Yeah. And then try to settle it. Again, I just said that all within like two minutes, making it sound so much easier than it is. But that's the macro process. And then just getting in there and getting in there mentally and, you know, fight for yourself.

Fight for yourself. You're very self-spoken, very nice. But no, these d-heds, you've got to go in there with good energy. You borrowed that at 21%. Crazy. Yeah. I don't know why I did that. No, it's in the past.

It's in the past. We've all done things we don't like in the past, but we're here now and we're looking towards the future. And you're learning from the past. No one's going to punish you for what you did years and years and years ago because that would be stupid. I think in a year and three months or so, you save up enough to be able to negotiate with the collections.

each collections account, smallest to largest. I think it's just the easiest way to go about it. Okay. We're not doing the minimum monthly payment stores that's them anymore. So I think about a year to a year and a quarter year, 12 to a year in three months, something like that. Okay. So I think that's what it is until we get out of the collections. Now with the car, because you owe your friend, I don't like that situation.

Even if the interest rate was low because you owe your friend, we're just going to pay it off quick anyway. Yeah. So at that point, it'll probably be around like 2,500 left. I don't know the term, I don't know the term length, I mean, but. I believe it's three years. Three years? Yeah. Maybe it'll be how many years has it been?

Almost one. Almost one. Three years. The original amount was how much? About 7,000. down 2,500. Okay. Yeah.

You go like $1,500 will be left. And then you pay that off in about four months. Just give her all your extra money for four months until it's paid off. So now we're talking a year and a half, a little over a year and a half. All the collections are gone. The car is gone. And then we do the exciting thing. You give the money back to yourself.

What it costs for you to survive? We're going to get you to... I don't want any emergency phone. them to be less than $10,000 because of medical, potential medical things and car things like 7,566 on paper would be a six month emergency phone for you? No, let's get the 10,000

hours as quick as we can. And how do we do that? You'll already have $1,261 in there. So, essentially because you would need to save up an additional 8,739, but yeah, you don't have much of money to put towards that. We were about to have that conversation. Yeah, because it'll take about 20 months.

20 months to have a fully front of an emergency fund. Yeah. Then we start investing. That's unacceptable, so we don't do that. How many hours a week do you work grooming right now, bring in that money in? Okay, so right now I'm working. How many hours do you work? I'm working about 30 hours at my main salon, and then I get about maybe four hours

here and there from my other salon that I just started up. Are they going to give you more hours? So it's based on how many clients I have. And basically I get paid right now hourly because I'm not making enough in commissions. So once I make enough in commissions, then that's my income. but I am actually actively working to find another job. Yeah, what kind of job? Anything.

Okay. I've been applying to anything. Anything and everything? Anything and everything. At some point, it might be worth checking out certification programs to see if you can get into a mobile tech job. That would be great. So you can check out course careers for that,

but if that's not something you're interested in, you could, at the very least, I want you working in a coffee shop so that your total hours of work a week is 50, 60. Yeah. Like, your partner... How many discounts does USAA auto insurance offer?

Too many to say here. Multi-vehicle discount. Safe driver discount? New vehicle discount. Storage discount. Legacy. How many discounts will you stack up? Tap the banner or visit usaa.com slash auto discounts. Restrictions apply.

It's lovely. I met him. He's great. That's your partner, right? The person I met... Yeah. Lovely. Fantastic person.

Cool. Congratulations. You're not going to see them anymore. because you are going to be working your butthole off. Just going to go crazy. You have to go crazy. This doesn't make any sense that that's crazy. It's crazy how long it's going to take to get this emergency fund all the way up.

It's unacceptable that that would take an additional 20 months. You are working every second of your life. 34 hours of these two jobs. Uh-uh. No, you are doubling your hours. So maybe over 60. Maybe we're doing 68. I don't care.

You're not home. And you're only packing. for food or he'll deliver some food to you. I don't care. You're not spending money, but you need to work. Whether you get a certificate and then working like tech sales, something like that, just something you can do on the sign to something like course where is, or you go work at a coffee shop or you deliver Uber or you deliver Uberis in your car.

I don't know. Do you want to put more miles of maintenance on it? I don't think so. But whatever you can do in service still wants to hire. Even though the job market has gone a little woo right now, service still wants to hire. They're still trying to backfill for what it was like even pre-pandemic. So you need to work your butt off. Tulsa is a good enough size city that you can go find a restaurant.

Yeah, absolutely. I've been applying to everything. I don't care. Yeah. You've been applying to everything? Yes. And indeed, yeah. I've been applying.

Indeed. I'm with those restaurants that's worth going in talking to the manager. Yo, I want this job. Come on. Like, you can sometimes get, I've had a couple examples of people on this show who followed my advice and they went and got a job. got a job like the day of. It's crazy. It's crazy.

And check out the other places. Jimmy John's over there in my place. They're desperate to hire. They'll give referral bonuses of people who stay around for a month. You know, so they want to hire. You just need to increase your income. This income is, if you wanted to live on this income forever, like we wouldn't be able to retire, but I think you'd be able to survive.

I mean, you wouldn't be able to retire super comfortably, but we'd be able to survive. Yeah. Well, we're not going to make any progress in terms of paying off the debt and saving out of the emergency center. We're talking like four years and four years of you having absolutely no life, essentially. Yeah. So that's not ideal. No, no, it is not. Because at this point, you're, you know, working in your 80s dying on the Walmart floor.

Yeah. That's where we are. Yeah. And I want a better future for you. Agreed. If you, it depends how much you want a better future for yourself because then the actions that follow that decision. to hit the goals that you've mentioned that we haven't talked about yet,

but you want goals in order to hit those, figure out the actions that are required to do them. And right now, it's your income, it's your money. You don't have any. Yeah. What are those goals you want to hit? I want to get to the point where I have an emergency fund, the $10,000 at least.

I want to help buy a house with my partner. and I want to be able to have a family at some point. Don't get a house together or be on the same law unless you guys are married, just for legal protection, but yeah. Yeah. Okay. Yeah, no, very reasonable, very reasonable. The way to get there again, the equation to your situation is money.

Yeah, and part of my reason for even being here too is I see how my mom is living and it's just not how's she living ideal probably pretty similar to me not as far as like income because she makes more money than I do but it's all out the door it's all out the door she's taking care of

my niece and it's just she has no savings and she's never been very financially illiterate and growing up we were extremely poor and all that so seeing

that in further adulthood. I just don't. I don't want to be there. Then here's the thing. And here is the thing. If you actually follow the plan we talk about today and you bring in additional income to start paying down the debt and save off that emergency fund, you'll be a generational change. And that's exciting.

Yeah. That's exciting. Your future could be so right if you just buckle down and actually take care of. Yeah. And the goals are very reasonable. Those are goals that, you know, most people want to hit in this country. That's, you know, the classic almost like American dream type goal. You can do it.

Again, just got to buckle down. But not to go back to negative, but I do have to just say, I'm nervous because the two checking accounts of the two checking accounts you have both started negative. And one of them ended negative. Yeah. That was a month ago. Not even a full month ago. So I'm scared. That's fair.

Everything now depends on you. Do you get your stuff together or not? Yeah. What are you going to do when you leave here? What does the next few months of your life look like? Working, trying to find another job, getting another job, and working extra hours, and paying towards everything and letting those other ones fall off and just trying to get a better life. Does what I say about the collections and negotiating that makes sense?

Yes, yes, it does. Okay. Yeah. How many hours a week are you spending applying to jobs right now? Not enough. Okay. That's probably the correct answer. So it's a second full-time job until you get another job as you're applying for jobs. Go in, say 100 of the managers on these service places.

Okay. Because they will sign people up the day of. I've had that happen here with this show. Okay. Well, if you get another job and you bring in income a year from now, we should see major progress. So we'll do a follow-up then. Okay. Please do not disappoint us.

Please don't. Be a positive story. But what matters from here is actually what you're going to do. Depends how much you're going to buckle down or not. Are we going to be starting an engine checking accounts monthly basis with negative money? You've received the mental health you want. You've received the mental health that you've needed in the medical help. Now, receive this financial help and just improve your life drastically all the way around.

That's the goal. Any final thoughts? Just don't do what I do. And don't let anything go into collections. It'll bite you in the ass. For Danny, it's going to be a long road ahead. But it could be much shorter if she just brings in some more money by getting a second job, a third job, a fourth job, and just working. like crazy.

For her hammer financial score right now, spending, this is what's going to push it up a little more than anything. Yes, she was overspending for her situation, but it still wasn't crazy compared to a lot of people on here.

Three out of ten. Debt, I mean, if we're this much in collections, it's not going to be better than a zero out of ten. Retirement is nothing zero out of ten. Emergency funds barely started. So one out of ten, real estate, absolutely nothing.

Zero out of ten. For right now, it's not a zero out of ten. So one out of ten. Make sure to check out in the resources I have linked below, getting a free $5 for acorns. They're getting the best yield, high yield interest rate I can think of. So it's all down there. I link the resources. I've partnered with them. That way, I can get you the best resources possible. Don't forget to follow my Instagram on Twitter. Thanks. Thanks to SOFi for sponsoring this episode.

View your rate for a SOFi personal loan through my link, SOFi.com forward slash Caleb Hammer with no impact your credit score and no commitment.