Financial Audit - The Impossible Financial Audit

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Starting point is 00:00:21 Bring a date, your team, or even your mom. Book direct at Choiceotails.com. See you on the roof. To watch episodes of Financial Audit a week earlier, check us out on YouTube. That's five kids. That's five of us. Yeah, you can't go out to eat, you dumb fucking, gonna lose the house. One time.

Starting point is 00:00:38 Look back. You're a stubborn little... Like an actual... Yeah. You're a wimpy little cry, baby. What about your kids? They're there. You're going to fuck them up.

Starting point is 00:00:49 Yeah. You're going to ruin them. Hi, my name is Cole. I'm 29 years old from Dallas, Texas, and this is Financial Audit. Cole, Cole, Cole. The amount of spending that is on the spreadsheet in front of me, I went through your documents, I saw your documents, I lined some things, there's awesome lines,

Starting point is 00:01:13 but I didn't make the spreadsheet. Our lovely producer Jake made this spreadsheet. And the absolute spending that you are apparently capable of is one of the most ridiculous things I've ever seen in my life, my God. It's impressive. What do you do in Dallas for a living? I'm paramedic. Okay.

Starting point is 00:01:38 It's not the highest paying job, is it? No. Yeah. Well, how much are you making? Well, so I technically have two different rates. I have a day rate and a 24-hour rate. Sure. But my primary rate is 20-50 an hour.

Starting point is 00:01:50 20-50 an hour. Okay. What would you say you bring in on a monthly basis? Take-home is around 5,500. Is that on average? Actually, that's not bad. Wait, how many hours a week do you work? Between 72-8.

Starting point is 00:02:01 86. Oh, good. Yeah. Wait, how do you even have time to spend all the money that we're about to get through? I don't know. It just, it just comes in and goes out as fast as I made it. I guess so. So, so 5500. Okay. Take home. Take home for sure. And that's not necessarily bad at all by any means. What's the life situation? You're 25. Is there anyone else in the law? Huh? 29. 29. Sorry, that's what I meant. Is there anyone else in the life right now? Any dependents on this? I have a wife and three kids.

Starting point is 00:02:35 Oh, well, what are the kids' ages? Okay. My stepdaughter is 11, and then my two boys we have together are six and three. It's a lot to support. I can get expensive, especially in Dallas. I'll have that 55. So what is going on here, man? Because, again, the spending is ridiculous.

Starting point is 00:02:53 What is going on? What are we looking at today? What is Cole? Cole is a big spender because I don't like to tell my wife or my kids no and so they're like oh if we want this we want that like I'm like all right cool I'll get it what happens if you say no they get upset and I don't want to deal with a crying screaming child the wife cries screams oh no no no my wife my wife is like if we can't afford it so just the kids 11 6 and 3 the 11 year old 2 11 year olds yeah oh she's well she's 11 so she hasn't

Starting point is 00:03:26 attitude. It looked like you were going to say something else for a second. But it's one of those things like I feel like I want to provide as much as I can for my family. And you are? Yeah. And so in my, the way my brain works is like, if we, my wife is like, are you sure we can afford it? I'm like, yeah, yeah, sure. I'll just work a couple extra shifts.

Starting point is 00:03:47 Okay. Well, that's on you then. If you say, well, yeah, we can. Well, yeah. When, well, no, we can't. But I don't want to say that. No, shit. But you do.

Starting point is 00:03:55 But you do say it. Not really. Oh, no, no, but you do say, yes, we can, though. Yeah, I tell them. But that's incorrect. Right. But I don't want to tell them that, no, we can't afford it. So when you tell them we're going to lose the house,

Starting point is 00:04:11 that's going to be an easier conversation than saying, no, we can't get Mickey D's? Well, no, because I'll just work more. Okay. I'm sorry. No, no, no. Let's be honest. Let's be very real.

Starting point is 00:04:21 You're kind of pushing yourself to the human extreme in terms of the kind of physical work you're doing in terms of hours a week. I'll just work more is starting to become not an option for you, unlike many of the guests on the show. Right. Yeah. So no, that's an incorrect answer. Yeah, I spend well outside of what I make or we make.

Starting point is 00:04:42 Yeah, but what you just said was incorrect. I will just work more. No, you can't almost, basically. I mean, I can. No, it starts getting dangerous and you're responsible for other people's lives in the situation. That's true. If we start pushing you to 100, man.

Starting point is 00:04:55 I mean, come on. That's scary. I mean, yeah, but I've also started like a couple of side business. Well, I've started a side business. And then- It's 168 hours a week. I mean, you're working half of the hours that exist in the week already. Like, this starts getting scary.

Starting point is 00:05:12 Then you have side businesses? What do you have? Yeah, so just to backtrack a little bit. So like my hours, they're easier because they're 24-hour shifts. So, like, if you break down the numbers, like, last week, I worked 70 two hours. Yeah, yeah. three days. Yes, sure.

Starting point is 00:05:24 We've got more days left. This week I work, I'll work 72 hours. You can still push your body to the max, though, you know? Even still. Like, imagine five days of that in a row. They have the days off for a reason. Well, yeah. That's why you, that's for overtime.

Starting point is 00:05:39 But you're saying, I can work more. It might start getting bad for you, bad for your family, and bad for the people you're taking care of. Right. But that's where the side business is going to be. Okay, so the side businesses then, go ahead. I started my own car detailing business. You look like you would.

Starting point is 00:05:56 Okay. Yeah. It's fun. Like the OCD in me like really enjoys it. Like you take in like a dirty nasty car. Oh, I love those TikToks. Yeah. They're just like visually satisfying.

Starting point is 00:06:07 How do you have time for that though? Because I mean. I wish I knew. I mean, do you have time for it? What's coming in with that? Um, how successful is this?

Starting point is 00:06:14 How long have you been doing it? Since July. And I've done in totality, I've done like six or seven cars. Okay. So this is pretty, pretty. Yeah, because just right now it's like free advertising. It's like Facebook next door, texting friends. Like call me if you need me type stuff.

Starting point is 00:06:30 So this is hardly a side business even. It's almost like like a family, friends. Yeah. But I'm trying to, the goal is to grow it. So how would you grow it working 80 hours a week, trying to make sure people don't die on the way to the hospital? Fit it in somewhere. There's small gaps in there.

Starting point is 00:06:48 No, real, realistic answer. Come on, guy. I think I could come. This is a dream. give me real. I could comfortably do one car a week if like my schedule was full. But you have to align with the people who wanted to get the car clean schedule as well. Right. Yeah. But working only two to three days a week, I've got those four days. Absolutely. Fit one in somewhere. Which I hope they're okay with those four. That's true. It's usually a lot of people,

Starting point is 00:07:12 they'll call me. I've only had one guy call me and say, hey, I need it done today. What do you charge for a full, full service? It depends on the size of the vehicle. Mid-sized sedan. No, no, no, no, mid-sized SUV. Three rows or two. Two. Full details, $250. Okay. How many hours does that take you?

Starting point is 00:07:30 Roughly two, two and a half. Okay. Unless there's like... But you've done seven since July. Okay. In the other side hustle? I just partnered up with a buddy of mine that works at a fire department doing roof sales and patio extensions. Okay.

Starting point is 00:07:46 What the f... It's a vibe all over the place. Is that necessarily a... It almost feels like your spending looks like that we're about to get into. Your spending looks like you think you're making a lot of money on those other jobs as well coming in. Like you're pretending like you've already made it in those jobs. I assume most of that's based on commission, right? Roof sales.

Starting point is 00:08:07 Yeah. Whatever extension. Okay. How's that been for how long? How are you doing? Well, I've been employed there for a week. Okay. So why?

Starting point is 00:08:16 Why not put more effort towards that other thing anyway, especially if you're good at it and you like it? the detail I haven't been put into a spot yet to be able to like I really would like to be able to start Yeah but you're taking time away when you're going to try to do this extra third side hustle Right but that's really only busy during like storm season that's like four months out of the year Of which you won't be doing detailing But losing clients less focus on advertising less focus on community building

Starting point is 00:08:40 Keeping people in a lot of people that some people if you get the right person that want to get their car detailed Maybe they want like a monthly appointment well what happens when storm season comes around Well, you got to... That's a few months. I would agree. You got to prioritize your repeats over brand new people, in my opinion. Yes, but you won't be able to repeat when you're focused on the storm. It just feels very disjointed things that aren't even in similar industries.

Starting point is 00:09:04 It just, why not focus on one that you know you enjoy and has showed at least seven successful actions behind closed sales? Because I think I see the numbers behind roof sales. The potential numbers. Come on. It's a potential number. I don't What's the structure of this organization? Of what organization?

Starting point is 00:09:25 Because let's just say, I don't think you're in any kind of multi-level. I don't think it is. Likely in roof sales, I've never heard of that. Could exist. I'm sure it exists in every industry. But even stale, come on. Like, let's look at a multi-level for a second. They always show, look what our earners make.

Starting point is 00:09:42 Look what our top salespeople make. Yeah, it's good. If you're able to full focus on it and make it an amazing thing, You're not able to. You work 80 hours a week doing this other thing. You want to work more hours. You'll say you'll work more hours. Well, also trying to do this car detailing thing. In order to get the numbers that you're likely trying to get, you're going door to door every single second of every single day trying to get it like a solar salesman.

Starting point is 00:10:04 So I don't know how you're going to reach those numbers you want to do with the side side of a side hustle. Well, that's why it's a side hustle. But it shouldn't be because I don't think you're going to be able to build the relationships. For an actual true sales position, that, man, you grind that to the grine. ground you grind the customer to the ground you grind every single second of every single day there is not a moment your phone is off your phone is off for 80 hours a week not really really in my pocket so if some dude is like his heart's bursting out of his chest you're like hello solar this is cool with uh stop having a heart attack i got to sell a roof real quick yeah yeah but come on real world yeah no like there's a lot

Starting point is 00:10:39 going on does that job actually make sense something where sales sales is like i don't know that's like you're locked in always for the customer If you really want to do it. And I don't think you have the time. I have the time. No. Yes, I do. I only work three days a week.

Starting point is 00:10:56 I get that. But again, the time you have to dedicate to something like that is always. And there are days where you're off for 24 hours. And then there's times where you're detailing cars and trying to make. Is this not making sense, guy? Because I have enough time. Oh, my. Do you not understand the point I'm trying to say?

Starting point is 00:11:16 I do. You're saying I'm working on a house. But then why do you come back? But I have time. I do. Put those other days that you can't exist in. Right. In the sales world.

Starting point is 00:11:29 That's only, oh my, my. Okay. Well, it's clearly you're in that position where you saw a number, you saw the potential earnings, you're more excited about that. You live in the world of delusion instead of the real world.

Starting point is 00:11:43 For that situation, you've only done it for a week, so I'm not surprised. It'll bite you in. We'll see. So pay a roll that came in, 5,700, Zalayanin, 480 Twitch. You stream?

Starting point is 00:11:56 Occasionally. This is so weird. I talked to like three streamers in a row all of a sudden. I had one big month when... What do you stream? You apparently have a... Do you ever see your kids? Yeah.

Starting point is 00:12:08 What, when you pass them? No, I'm leaving the door and going to the man cave. I pick him up from school. I'll take them to school all my days off. Is that it? We have dinner. The car rides? No, we have dinner together.

Starting point is 00:12:18 I don't understand how you have this extra time. How much? How much time do you put into Twitch? Not much. It was only $316, but even still, people put dozens and dozens hours into Twitch and get $0. I haven't streamed it over a month. That's from one month where I got like $150.

Starting point is 00:12:33 That was it. Well, either way, what's the Zelle in of $480? That's a car. Okay. So $6,500 came in total. You're probably not setting money aside for Twitch, even though there's not much, or setting money aside for taxes for the cars either, right? Well, because it hasn't turned a profit yet.

Starting point is 00:12:50 Yeah, but you're still, okay, are you going to be able to adequately claim everything as the finances organized? Yeah, I've got receipts and everything of all my purchases, ins and stuff like that. Good. Same with the Twitch hasn't made a profit. That's the only profit. Ever? Oh, okay. Yeah.

Starting point is 00:13:07 Okay. So, well, 6,500 came in, and that's more than normal. How much went out? How much was spent? Probably a penny shy of that went out that month. A penny shy in which way? Like I brought in, I brought in whatever, what did you say? $6,500 and $0.02.

Starting point is 00:13:24 Yeah, I probably spent $6,400. Okay. 11,500. I don't think you understand your life. Again, I think you think you're already successful in all these other things that you can spend like you are. You're not. The spending's insane guy. It's almost double.

Starting point is 00:13:40 It's almost double. That's bad. Yeah, it's bad. What about your kids? What about your kids? They're there. They're there, but they're not going to have a good, they're not going to have any kind of college fund they're not going to have you're not going to retire it's like they're there but

Starting point is 00:13:56 i don't know their future is kind of getting put on hold get it and you're like listen i just hope this is because you're excited to be on the show i hope it's maybe a cope thing but just sitting there and just kind of smirk it's a it's a cope okay good i always have to call it out because i know it doesn't feel like it is from the audience perspective they're always like why why i'm calling someone out for laughing i get it when i just see this person sitting across me the whole time And they're like, this look. Yeah, it's a co-pund. I'm just like, what the fuck?

Starting point is 00:14:24 Is this person not taking it seriously? Because we put so much energy and timing of this. And most of the spending, by the way, on credit, is debt. Yeah. I'm really good about getting rid of all my debt and then replacing it right back. What does that mean? In what ways? I've knocked out my debt completely twice in the last six years.

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Starting point is 00:16:04 Celebrate Mom with Whole Foods Market. That's PDSD-D-E-B-T. Dot.com slash Caleb. Your free debt analysis is just a few clicks away. So head to PDSDet.com slash Caleb today. It's never too early to take control of your financial future. And then accrued. How? What? How? A few years ago, I did a debt consolidation loan. So like, got all, okay. Well, that's not wiping out. Right. But like, I emptied out all my credit cards and

Starting point is 00:16:30 had the loan. But then I reaccrued all my credit cards while still having the debt consolidation loan. Classic. Yeah. This is what happens every time. Yeah. And then in March, um, we bought and sold. March is this year? Yeah. We bought and sold our house. So. Okay. You didn't buy and sell within one month. I bought. I bought. I, sorry, I sold my house to buy my current home. Okay. Sorry. Yes.

Starting point is 00:16:53 So we had bought a home in 2020 back when rates and markets were low. Oh, yeah. So I bought a house for 240. And then when we sold it in March, I only owed 210 and sold it for $3.50. Woo! Yeah. Love it. Yeah, it was great.

Starting point is 00:17:08 And then turned around and bought this home. Sticker price was $4.10. Was able to do 20% down and then paid off like half of our debt. do you not understand the mistake you made both times? Because it won't matter if we pay this off. Do you not understand it? This is what everyone struggles with because I've had so many people that have paid off debts on the show and then repeat the cycle. Do you not understand?

Starting point is 00:17:33 Do you understand what? If you don't change the behavior before you get out of debt, you took two shortcuts. One was from position of equity from an investment that you gained. That is good. Good job on that one. The other one was a consolidation. That doesn't count. That's not a reward.

Starting point is 00:17:46 That was not any progress. That's not an accomplishment. But either way, if you don't actually fix the behavior and the emotions around finances and anything that actually got you there in the first place, if you go and take those shortcuts, one earn, one not, it doesn't matter either way. The debt gets back. You never got out of debt by earning and grinding it out. You had an investment that paid off again. I'm not against that as a whole. But you never changed the behavior got out of debt by actually fixing your finances.

Starting point is 00:18:15 So if we get another shortcut that gets us there again And pays it off for a third time in six years It won't matter because you'll get there again Yeah And then to top it off with the house With the house I have So the house that we bought in 2020 Was like just a D.R. Horton's spec home

Starting point is 00:18:33 Like Well I actually don't know what that So D.R. Harton's the builder Yeah, it's just one of those like cheap Speck home you just pick your lot and the floor plan Yeah, yeah And then they build whatever Like you don't get to pick

Starting point is 00:18:45 anything, no colors. Oh, they're just like a cheap builder? Mm-hmm. Oh, okay. Very cheap. Yeah. And so we vowed from when we sold that home that we would never buy another Deer Horton home again.

Starting point is 00:18:55 Why, it was bad? It's just piss poor quality. The builder didn't give a shit. So from frame to move in was like 90 days. Wow. It's ungodly fast. Oh, you still got an incredible equity position when he sold it. Yeah.

Starting point is 00:19:09 So then we had so many like foundational problems and just all kinds of problems with the house. Okay, foundation you can repair and get a warrant. around it though but even still go ahead yeah but they're like arguing with the or horton to fix anything you'd have better look arguing with this wall yeah because most new homes have a year or two warranty or something and so we sold that home and then we're like we're never going to buy a d r horton home again or forever something tells me you bought a d r horton home well don't beat me to the punchline well you keep setting it up so this house that we bought was built no nine back when you know people actually what i thought gave a building houses well my wife just changed okay my wife

Starting point is 00:19:45 My wife going through, I guess, like, I guess, like the tax records of the old home found that it was also built by D.R. Horton. Uh-huh. And so with that, we have now discovered that they built this house incorrectly. So it's incorrectly. How do you build an house incorrect? What do you mean? I wish I knew, but. Why, I mean, it's been around for almost a couple decades.

Starting point is 00:20:03 So, like, what is built incorrectly? What are you talking about? So the siding of one of the siding strips on my house has fallen off because the wood in between the siding and the frame of the house has rotted away. from water damage because they didn't put correct flashing and cocking and around where they were supposed to. So now I have to have that fixed. And that's one second. Oh, these are ongoing expenses right now.

Starting point is 00:20:27 Yeah. So I have to have, I had the guy who works for the roofing company come out and inspect that one spot. And he's like, I can fix this now, but I'm more afraid of like what else is wrong. And so he's going to come back. Well, hold on.

Starting point is 00:20:42 How detailed was your home inspection? I know they don't necessarily always get into walls, but you can really get some deep looks. Well, the exterior of the home looked fine. Looked. When we bought it. You didn't really have anyone go deep dive and drill a little hole look anywhere.

Starting point is 00:20:54 I always go crazy. I pay a lot for my inspections. Well, our inspection was 500 bucks. That's normal. It was our realtors inspector. Usually they're okay. Yeah. But that's like general.

Starting point is 00:21:07 Yeah, but like if you looked at the outside of peeling apart the boards, which I don't think a normal inspector would do, you wouldn't have seen it anyways. Because it was intact and in good shape when we bought it. And then just ironically enough, after we bought it, it fell apart. And so my inspector is going to come back next week to look at like he's going to pull apart some of the siding and look to see the real extent of the damage to see if I have to have an insurance claim or not. Okay.

Starting point is 00:21:33 Well, I hope so on that. Have you gotten a quote of what this is going to cost? He's working on. Because again, you already spend double what you make. So I don't know how you're going to spend more. Yeah. So he's working on the quote for just the quick fix, which. I said it should only be, I say only, but is a quick fix smart?

Starting point is 00:21:47 I don't think so. It just depends on the extent of the, it just depends on the extent of the rest of the house. So you spend double what you make, most of it on credit. Where do you think, honestly, honest, self-assessment, I want to see where your brain is, think you are zero to tens, zero being the worst finances, 10 being the best finances. Where do you think you are?

Starting point is 00:22:07 Like a 1.5. Okay, thank you. If you want your hammer financial score, it's free. Link in the description below. See where you stand. And then if you want to come down here to Austin, Texas, come hang out. It's fun. I'll yell at you, but then you'll also become friends with our really nice producers.

Starting point is 00:22:20 And then I'll yell at you. We'll have you on Austin, Texas. It'll be a good time. You have fun so far. Yeah. I appreciate you coming down. See, it's a good, that's a good time. Caleb.com slash apply.

Starting point is 00:22:29 Check it out. It's an easy drive. Oh, you came from down. Sure. Yeah. I mean, people come from like, anywhere. But, yeah.

Starting point is 00:22:37 I know where else matters other than Texas, so it's okay. Chase, Amazon card. Is this an Amazon added? Hes addicted household? It's a shared account. So like, Well, that's why I'm asking how much. Yeah, yeah.

Starting point is 00:22:50 To answer your question, yeah. So me and my wife used the Amazon card and then my parents use the Amazon account. Your parents? Why are you? No, they use the Amazon account. Okay. But, you know. Why?

Starting point is 00:23:01 They're old. So maybe sometimes one of my purchases gets on, or one of their purchases gets on my card, but it's really not a big deal. What do you mean it's not a big deal? Again, you spend double what you make. Now we have a home repair that we probably cannot afford. Right. Because if insurance does it.

Starting point is 00:23:13 cover it. So I think it kind of does matter if old people are using our money that we don't have. Well, if they do it on accident, they'll send me the money for it. Oh, that's not a huge issue. I mean, I don't know why they can't use their own account just to be safe.

Starting point is 00:23:32 I mean, they're cards on the account. Like, they have their own cards and stuff that they need to use on the account. Okay. Just feels like extra confusion and asset for no reason. I think I've still grandfathered in with the super cheap Amazon Prime price. price because I've had Prime for since Prime was a thing. I get it.

Starting point is 00:23:48 Okay. $3,721 since $21 on here. $97 minimum payment. Not cheap. Not cheap. See again, here it is. This must be the spending. $1,355 on a card when you have kids to take care of that 11 year old.

Starting point is 00:24:08 What's their plan? Not their plan. They wouldn't know. Do you want to pay for their college? You want them to have a fund? Do you want anything to be done? If they're going to go to college, you know what are your plans? What do you want for their future?

Starting point is 00:24:19 Because again, you only put the minimum fee payment towards it, which at the time was $78, I think. And then a $1,355 to spend on a card that is accruing $60.78 in interest. Interest. And you're not even coming close to paying it off. Nope. You're not even coming close. It's not even an objective here with your behavior.

Starting point is 00:24:41 So what are your plans for these kids? do you, what do you want for them? Because right now, you're not getting them anywhere except for good luck once you push them out the house. Yeah. With the 11-year-old, she's infatuated with animals. So she'll- For now, she's 11. Well, for now, yeah.

Starting point is 00:24:56 So, I mean. I'm asking what plans do you have to set them up if you choose to in any way? There is a one right now because we just can't afford to make a plan. But that's you. That's your choice. Yeah. I mean, like. What do you mean you can't afford to?

Starting point is 00:25:12 You can. I mean, it's there somewhere, I'm sure. No, no, no, no. You can afford it. You are choosing that. What's your mortgage payment? 3250. Oh.

Starting point is 00:25:24 Yeah. Oh, for, wait, why did you guys solve this and get this? That's who. Everything. Oh, this is the definition of house poor. Maybe you don't have the money. Oh. So you said 34.

Starting point is 00:25:39 3250. 3250. For, for. For sake. Oh, it's 60%. That's not a joke, man. That's literal dangerous. That is scary.

Starting point is 00:25:54 And you don't need to be doing that in Dallas, that kind of percentage. Six and a quarter? Huh? My mortgage rate, six and a quarter. Okay. It was better than what we're out there. It's okay. It's 60% of your income.

Starting point is 00:26:10 I don't give a shit the interest rate is. 60% of your income, 60% of your income. 60% of your income. regardless of what the interest rate is. It could be 20. It could be zero. Actually, Tony would be horrible. But either way, either way, at 60% of your income.

Starting point is 00:26:23 Yeah. Man, that is dangerous. That is, I was kind of joking at the beginning when I say, well, what are you going to know when you come to your wife and say, I can't afford $4,000 and how are we had to move? Now it becomes real. Yeah. Now it becomes real, man. Get hurt.

Starting point is 00:26:35 You're done. Yeah, that's the one thing I'm always doing to move. Yeah, and you're always going, doing something. And you're going to try to be a professional skydama next month or something. with how you do things. You're on to the next thing every second of every life. Everything has to be a side hustle, a side hustle. Yeah.

Starting point is 00:26:51 Man. So I don't know. That's an insane. So, fuck sake. You're right. You probably can't afford to set them up because if our needs are already a 60% without anything other than the roof over our head.

Starting point is 00:27:07 Gosh. Everything with my last house to this house is doubled. Why do you guys sell and move? we didn't we were out we had outgrown our home you're behind on your fain h-o-a they're gonna start putting it leans against you sorry what were you saying that's only because what were you saying okay so to go back to the house

Starting point is 00:27:30 yes so everything with the house doubled because we we bought in 2020 and we owned a 4-2 1800 square foot and then we had our third kids and then we were max capacity in the house and there was just no room for like all of us the kids and all There was room. Remember everything you want, but come on. People did eight kids in like 700 square feet. Like 100 years ago.

Starting point is 00:27:52 There was room. Yeah. And so we sold and bought and then this house is 3,100 square foot. What? That was the only reason? That was it? Need more space. You didn't need.

Starting point is 00:28:05 The word literal need you did not need. You wanted. It was a needful want. I'm sure there were some annoyances. but people have done it since forever. You would have been okay. This is the classic American entitlement with space. Which, great if you can afford it.

Starting point is 00:28:22 If you can't, you did not need it to be very clear. And now you've put your, what was your mortgage payment then? 1850 at 3%. You went from a relatively proper 30% of your income, relatively could be a little high depending but I'm okay with it

Starting point is 00:28:49 to 60% I don't think you understand how bad this is just looking at you oh no I do it's just nervous okay

Starting point is 00:29:01 yeah trust me reminder every single person that comes on this show is not used to be in front of the camera so I get it it's fine it's one of those

Starting point is 00:29:09 like it's always every day I think about it Why'd you do it? What's your square footage now? 3,100. Oh, you did really go up. Okay. Everything doubled.

Starting point is 00:29:19 What was the price of the house you got now? 4.10. 20% down. How suburban? How far from core? Five minutes. I'm still. Whoa, you're right up into downtown.

Starting point is 00:29:31 I'm really inner city. Gosh, I can't. Because of Austin, I can't imagine anything being close to town. I mean less than a half a million. That's crazy. That's crazy talk. Not even a lot of land. here goes for like less than a million five minutes from downtown that's crazy okay wow well good

Starting point is 00:29:48 for you guys on that part but it's very inner city everything anything and everything we would need is a 10 minute drive no that's great um and your house is a five minute existence from being taken from you if you're chasing data down instead of seeing it in one place you need the intuit erp Intuit Enterprise Suite. All your data in one place with built-in AI for real-time insights. Learn more at Intuit.com slash ERP. Literally, if anything goes wrong. But back to the HOA.

Starting point is 00:30:21 You have savings, right? Not anymore. You don't know. You don't, the position you've put your kids in? It's not a joke. I'm not fucking around. There is nothing here. No entertainment factor required in this thing.

Starting point is 00:30:36 You don't know the dangerous position. you've put your family in. This is scarier than you could possibly imagine. It is irresponsible. Irresponsible, scary death, ruining your family, putting your kids through trauma. Because they don't know. I grew up with seeing four closer notices a couple times on the house. Okay. Luckily, they were able to beat through it. That stick with me. Stuck with me. And one of the reasons why I care about being good with finances today. But take that the wrong way or make it get worse. Or if they take it the wrong way or you have it worse than my parents did and you don't make it through because you've already pushed yourself to like basically the human limit, let's be honest,

Starting point is 00:31:19 you're going to f*** them up. Yeah. You're going to ruin them. Then they're going to go from that to a four, four, five, six, seven hundred square foot apartment. And then if you think you didn't have enough space before, then you will. And that's all because of your consequences, because you thought you needed something that you've actually put yourself into a position. Now you don't have savings and you're behind on your HOA. Yeah, tell me about the HOA. This is huge for financial audit. For a year now, my team and I have worked with experts to create what I truly believe are the three best educational programs in the financial space online. We have our budgeting program where I teach you how to create, manage, and revolutionize your budget and control your money.

Starting point is 00:32:01 And then there's the investing program where I teach you to define what investing profile applies to you and your life and then teach what specific investing strategies applies to you in that situation. And now finally, we have our debt program where I teach you the best ways to pay off debt, manage debt, and even take advantage of good debt. This has been a revolutionary project that we've been working on for over a year now. And just like over 10,000 people who've already taken our educational programs, you can now take advantage of all three of them bundled together at a 15% discount. I've heard from thousands of people now who've taken these classes,

Starting point is 00:32:39 and they've literally changed their lives for the better, and finally, you can too at a more affordable price. Head to Calebhammer.com or click the link in the description below. You will not regret this. This is crazy, man. They changed billing companies and didn't have... No, no, no, no, no. They didn't have our phone number or our email,

Starting point is 00:32:57 and so we never were told that it changed. They had to your mailing address. They never mailed us a letter. The HOA always mails. They're obsessed with mailing. Okay. So I went up because I went up to the office yesterday and told them because I knew that we were. What are you behind?

Starting point is 00:33:12 Huh? What are you behind? The do is 580? For how long is that? Is it the annual quarterly? What's your monthly quarter? Semi-annually. So it's 1100 a year.

Starting point is 00:33:25 You don't have that? Nope. You ready for a lien? Nope. People can lose their houses from H-O-As. You're going to lose your house in two ways. Mortgage in H-O-A. Yep.

Starting point is 00:33:34 That's really taking care of your family, guy. Yeah, or stretched beyond thin. No, you're spending like a fucking moron. Yeah. I mean, my spending has been really drastically out of hand lately. Why, when things are worse than ever? I wish I knew. That's not an answer.

Starting point is 00:33:55 Come on, why do you think? I want to see some self-report here. I want to see some self-realization. Why do you think so I can at least see where your mindset is today? I think it's just pure laziness. A lot of those stuff we spend money on. his food. Like going out.

Starting point is 00:34:10 Oh, man. Really? Going out is killer for us. Oh, let me see. There's $768 going out to eat. You could have, you could. I thought it'd be a lot more, honestly. Trust me, there's other categories.

Starting point is 00:34:21 There are other categories. But $768. First of all, that's it compared to your income. Come on. $768. $5,500. I mean, you spend 14% going out to eat. That's already insane.

Starting point is 00:34:36 Right? If we're maxing our needs out at 50%, You already have 60% but we're spending 14, 15% going out to eat. Come on! That could have paid for your back age away and now you're not willing to do it and you're willing to get a lien.

Starting point is 00:34:47 I'm not willing to get a lien. But you are. You literally are through your numbers because you spent the money on fast food or eating out or whatever that could have gone to that. So yes, you are. You are willing to get a lien.

Starting point is 00:35:03 Don't fuck with me. You are. Your numbers say so. And I actually do have rage behind this. I know you haven't done anything to piss me off, but I've raised behind this because your children are going to be impacted more than you know, and that pisses me off because they have no say in this. Right.

Starting point is 00:35:21 And then the interest are coming out on these cards? I think I already set the numbers. Let's see. Are you kidding me? Every line is highlighted. Every damn line is highlighted. That means it's all bullshit. Things that don't matter.

Starting point is 00:35:33 And no, this wasn't going out to eat. It's mostly Amazon because it's the Amazon card. Let me see your Amazon account. Go ahead. Pull it up. And also some board. room, these statements are hard to read. Blizzard, Sonic,

Starting point is 00:35:45 Amazon, Golden Chicken Chicken, Amazon, Joy, Donuts, something, video games. Come on. Do you want the Amazon account or the card? I want to see the Amazon account. I want to see the things that were actually being purchased. And can you start a screen recording for us?

Starting point is 00:36:00 Can't record a screen due to security policy. A lot of, a lot of the purchases on here from my parents. So it's, because it's the same account. I don't know what's what, but I'm telling you there's a million, a bigillion Amazon purchases on it. Right, I know. So you tell me as I called them out, okay?

Starting point is 00:36:20 I don't even know what any of this stuff is. They all look like little things that you get from late night television ads. The thing at the top and then the following one, nope. Oh, of where I was? Yeah, yeah. So the thing at the top and then the following one, those are from me. So the top one is for my rifle and the one below it is for a fly. Your rifle, you can't afford your mortgage.

Starting point is 00:36:40 You're not going to shoot the bankers when they come. you're right i'm not yeah so i don't think we need to be dealing with that if you can't afford your mortgages your hobby really more important than your kid's life no be a man i was like a wooden or something i'm hoping that's not for grandma that's my parents what are all these little what are there's like oh these are dog toys i'm wondering why there's like gorilla things and just yeah so oh okay our dogs are our dogs why do we need one two three four five toys when we can't afford our mortgage i'm sorry we can't afford our mortgage In fact, there was two pack, three packs.

Starting point is 00:37:17 So this is like 10 toys, 10 toys, but the dogs aren't going to have a house to live in. Thank goodness. But guys, they have toys. They have toys when they live in a corner in the middle of nowhere because they get kicked out of their house. Because they chew on around the house. So my wife bought them those. Which is fair, but get two or three and redirect. And that's, that's, that's.

Starting point is 00:37:36 And work on training. And that's my own fault because she asked me, she said, I put all these dogs to his part and said, which one's the one? I said, I don't care to buy them. and so she bought all of them. Glass cleaner, leather cleaner. A lot of those are the glass cleaner. Oh my gosh, we have like the classic white mom things with these candles and the wine glasses with I'm fabulous, ran on it. That's my mom.

Starting point is 00:37:57 Come on. So then there's like a chemical right there. That's mine. The bike my parents bought for my son. A lot of that is my parents. Which is fine. But I saw your Amazon purchases. We had over $1,000, wasn't it?

Starting point is 00:38:12 Yeah. Wasn't it? So, did you really need a camouflage JBL clip 3 waterproof speaker? I didn't buy it. Who would buy that? Is grandma buying camouflage speakers?

Starting point is 00:38:23 Probably my sister. You're the rifle guy. Probably my sister. Why is your sister on here too? What is this? This is like pure Amazon incest. It's the family Amazon account. Family,

Starting point is 00:38:32 but it gets confusing, doesn't it? You don't know where purchases are. You got confused. Risk, and the watch things in a music stand. The music stand. is for the child because she's an orchestra. A million, million, billion, trillion pairs of underwear.

Starting point is 00:38:49 You're not going to, the sad thing is oftentimes music programs as she continues to advance. Sometimes it's a little like, hey, gosh, we might need some money for these extracurricular things. You're going to send them to states. You're going to send them to locals. You're going to do a lot of different things that cost money to participate in. And they're going to want to participate because they're not horrible. Hopefully, maybe. I don't know.

Starting point is 00:39:07 If they're practicing, we'll see. But guess what you're not going to be able to afford to send them there with the way you're doing it. Well, right now with her school program, she gets reduced fees. They're still. No, they're still there, but they're not. So, like, her instrument usage fee is like $120. But we don't, we only had to pay like $40. You rent it.

Starting point is 00:39:26 Had to. I'm not spending $3,000 on it. Of course, absolutely. Whatever she's playing. Chewling. Well, it really depends on the school. Some schools, they have an instrument. We're in a popular school district, so they have instruments to let us rent.

Starting point is 00:39:40 The school rents them? No, no, we rent them from the school. Yeah, to you. Yeah, yeah. This is different than the school district I came from. It's a one-time fee. It's not like a monthly fee or anything. Okay, now we have a plan-em card.

Starting point is 00:39:51 That card, by the way. Oh, fuck you. You're spending on it. What do you mean? I have two Amexes. One of them should be dormant. One of them should have something on it. Well, this is plan-em.

Starting point is 00:40:02 Okay, $1,142 with a $40 minimum payment. That one has a balance, but I don't use it. New pay overtime charges, interest, and new charges. Fuck you, you're lying. I don't know what the fuck you're talking about. There's new charges on both things. I don't get off.

Starting point is 00:40:18 This is your most recent statement. No, I know. Unless someone else in the house is using it. No. Because everyone shares everything. We're getting grandma's wooden and everything. So it's just like...

Starting point is 00:40:31 Oh, I see. My... What is this one? Oh. Oh. I thought... So I have YouTube TV with Red Zone. and I thought it was on a different card.

Starting point is 00:40:43 Oh, that's not that's not cheap. No. The Red Zone thing. No. But I don't keep it during football season. And then when football season is over, YouTube. Bad news is football season. Bad news.

Starting point is 00:40:54 It's foreclosure season. Not yet. Still got six more weeks. Audio books. That comes with the card and they, they're supposed to take it off. I don't have a credit for it, but I'm sure it happens somewhere.

Starting point is 00:41:10 Because with the platinum, it's not right. I know, but it's not there. Okay. And then some Walmart charges And then yes, there's your little red zone But buddy You're having $26 of interest accruing there And then 20...

Starting point is 00:41:24 And then... Okay, yeah, 2673 of interest accruing. So it's interest on two cards And we're still putting money on a card that we can't pay off That is accruing interest. Oh, sorry, total interest on this card Because you get another... No, no, yeah, sorry.

Starting point is 00:41:38 Okay, fees this year so far, 775. That must be... $345 interest. this year so far on this card alone. Is it still the platinum? I just don't know why you're accepting this. You're not a credit card person. No, I'm not.

Starting point is 00:41:51 Use the Fizz card, debit card that accrues still builds credit. But at least you can't spend more than is in your bank account. Just don't know why you set yourself up for that. It's itself. It's fun. Are we cope joking? Yes. I'm really good at that.

Starting point is 00:42:14 Best buy. That's my wife's laptop. in Microsoft office stuff. So it's, there's interest being charged. You're not even zero percent. It should be zero percent. Guess what?

Starting point is 00:42:24 It's not. What? How do you not look? Do you not look at statements? What is you and your wife's relationship with money in the household and understanding where things go? Do we not at least understand where things go?

Starting point is 00:42:35 Do you guys sit down and look at statements? Look at the household budget. Look at where money's happening. I don't look at the statements. I just pay the bill because I was told it was zero percent when I got the car. It probably was until a certain period of time. It's not that old. It's supposed to be zero for a year

Starting point is 00:42:50 It may have been six months, I don't know That's fair Come on I did miss one payment Because I think that's one of the One of the few cards that's due Yes payment So now we're big behind on

Starting point is 00:43:04 In-house and no we're missing Best fight Our lowest balance card by the way so far Lowest balance I caught up the payment Well thank you missed it here So I don't care Because it's one of those weird cards

Starting point is 00:43:17 That do like the first or second day of the month which is odd. The rest of my... Why wouldn't you just have auto pay? Auto pay. Sure. Ficked Auto pay, but have it on just in case you fuck up and you fucked up and then you owe to fee.

Starting point is 00:43:29 The reason I don't... So fuck Auto pay. You're not responsible. You're not an adult. You're a 29-year-old baby. Come on. But I don't like auto pay because I like to physically pay my bill. Great, but I have auto pay set up just in case you forget to.

Starting point is 00:43:42 Doesn't auto pay still take it out if you pay it? What? Like, if you pay the bill, but like, say you pay... They set it up on a bill. a certain way. You have statement balance payoff you have, which is automatic pay for the minimum payment due. If you have it on the minimum monthly due and you already make a payment that is covering the minimum of payment, but you likely won't have to cover that. If you have a statement balance, it's probably, it'll probably take the full statement balance. There's a lot of different ways

Starting point is 00:44:04 you can set it up. Some things are card dependent. Just take a look at it instead of paying $30. Why pay $30 to have access to this card for a month? That's what you just did. Right, but if my bill is doing, oh my gosh. So like if my bill's due on the 10th, but I paid on the first, but auto pay is going to ding on the 10th. Am I paying that card twice? I don't think so. See, that's what I don't know. That's why I don't do auto pay.

Starting point is 00:44:23 With that card, I don't. Yeah, you haven't looked. Because I don't like auto pay. It scares me. You like $30 fees. One time. Huh? It's one time fee.

Starting point is 00:44:32 Yeah, it's $30. And also, why not just look to see if it would? Because all it says is auto pay yes or no. And then the- Yes, but then see if it does. But then I can't get $30 back. You are a stubborn little, like an actual. Yeah. You're a wimpy little cry baby.

Starting point is 00:44:50 When it comes of money. Oh, yeah. You're scared of an auto play? Yeah. It messes with my OCD. I like to control what I pay. Yeah, that worked really well. This one time.

Starting point is 00:45:03 Listen, that's not true. You've had $101 in fees this year. So far, it's happened three to four times. On that one, he doesn't even know. Do you not see the issue here? Do you not see the problem with what you're saying? You didn't even know.

Starting point is 00:45:19 It happened one time. Oh, no, it didn't happen three or four times. Oh, it happened more? You don't know! So set a fucking out of pay! Use the lovely thing called Google. It's really cool and find out if a... Let's get straight to the point. If you're paying more each month on your mortgage than you'd like

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Starting point is 00:46:37 Again, you're not a credit card person. Nope. So that shouldn't be a part of the conversation. $137 of interest is being accrued. And yes, we have the interest rate right there of the 30.99%. I don't know when your interest period ended because we are obviously past that. Lovely. Deferred interest? I mean, there's a six-month option, and that's probably what you had.

Starting point is 00:46:57 There's a lot of options, 36, 24, 18, 12, 6. I'm sure your interest is so... They wouldn't want you to have that longer one. I didn't know I could pick. I thought it was just... You gave you the option of six months because they wouldn't trust you to have it longer. Because your credit's probably... $690? I'm surprised.

Starting point is 00:47:17 It's because I have a ginormous available credit. Yeah, actually your limits are kind of high, but you just still hold back. ounces. Yeah. My credit was 100 points higher a couple years ago. I'm sure it was. But then dummy me, I see my giant credit score because I've always wanted to try to get to 800. I'm like, oh, cool. I have a 750 or like a 755. Let me go get like what I would consider like an elite card. An elite card. Why is it a status thing? I don't know. I wish I knew. But it's like in the back of my mind. It's like I want this really bad card. It's a card. I don't understand why people care about it. I really don't.

Starting point is 00:47:54 I just get whatever is best for the points that live with my lifestyle. Yeah. Other than that, who gives a fuck? Who gives a fuck? So then I get these nice shiny cards and then you get a dopamine hit when you spend on it and then it just, there goes. Oh, okay, self-admitted. That's great. Then you can't use cards.

Starting point is 00:48:13 No. Okay, just envelope system yourself. There you go. You just said it. What does that even mean? Yeah, put the money that are in each category of spending after you figure out a budget. Go through our budgeting class. go through our investing class, go through our debt class,

Starting point is 00:48:26 go through all them with your wife, please. Not the 11-year-old, not yet, but you know, let them have it eventually. Go through them, take the quizzes, learn. You get them for free. They're all bundled together for 15% off literally. Over 10,000 people have taken them and actually changed their life. We've heard from them.

Starting point is 00:48:40 Take it for free. Once you learn that budget, you learn what goes into each category, then take dollars and put them in the envelope. Once that category's dollars have been fully spent, you cannot spend in that category anymore. You're forcing yourself. if you're not getting the dopamine of the swipe or the chip or the tap. Like physical dollars or just like writing numbers on.

Starting point is 00:49:00 Yeah, physical. Yeah, physical. Yeah, that's when you're starting from baby mode because you are in baby mode because you're a little child. Okay. You have no ability to manage your money to save your life. I can manage it. No, no, no, no, no, no, no, no. It just manages away.

Starting point is 00:49:16 Huh? Okay. Just manage itself away. Ha, ha, ha, ha. Yes, okay. Yes. Little humors. Sure.

Starting point is 00:49:21 So you start with that to train. yourself and then you can transition to more of a digital wallet and things like that. But you have self-admitted that you get that dopamine rush. You f*** not every time you swipe a card. And I need you to manage that. Okay. So then how do I... You need to have an endless goon session instead of the instant ending.

Starting point is 00:49:44 So then how do I pay a bill if I'm mailing? Do I mail the cash to the credit card company or is? I see what you say. Yeah, some things aren't going to have to be digital. But we can still, what I would do is, essentially a good way to do that could be having that proper money necessary for that bill set aside maybe in an envelope and then we deposit it cool now you know that bill is taking care of but we're still not spending digitally okay i got you because i was thinking how am i going to

Starting point is 00:50:12 mail 18 envelopes a month that's insane no no no i'm not i'm not suggesting mailing money definitely not because that's always a great idea yeah the post service is so great Okay, this one, this one seems 0%. We're at $1,179.25 with a $35 minimum payment. I didn't get that best buy minimum. The best by minimum is 51. These are starting to stack for someone that only has 40% of their income left after their housing. And that's not even including utilities, internet, or anything like that.

Starting point is 00:50:44 Okay. Purchasing. We're still purchasing. It is 0%, but it still takes six years to pay off doing the minimums without adding anything more. and you endlessly add. So again, I wrote your previous balance. Damn it.

Starting point is 00:50:58 Your current balance is $1,366,0.85. This one is primarily for gas. Okay, fantastic. You're putting it on a card that is a 0%. But guess what? You thought your best buy was at 0%. So do you know in the sentence? Tell me, please.

Starting point is 00:51:13 Didn't know that one was at 0%. Like I said, I don't look at the statements. I just pay the bill. You're paying the minimum, but you're allowing an interested crew. So you like thousands of dollars being taken away from your wallet? Well, no. You're hard-earned money that you're actually working hard to earn.

Starting point is 00:51:28 No, it's just when I... Okay, well, you are doing that. When I put myself in the situation, I'm in, the only thing I can do is the minimum payment. I know. So we stopped spending on here. We already saw that first statement. It was bull-st. It was all Amazon dumb things.

Starting point is 00:51:42 And we went through, and it was, there was nothing that was a real true. Trying to be a bit more mindful of things you buy for you and your family? Well, when it comes to laundry, choose All Free Clear. 100% free from dyes and perfumes. All Free Clear uses only essential ingredients that tackle tough stains and odors. And it's gentle on the skin. It's a powerful clean you can feel good about. So go on.

Starting point is 00:52:08 Pick up a bottle of All Free Clear for your next laundry day. Necessity. There has been interest this year so far. Wait, okay, so why is interest? Yeah, we have something. You've gotten back into it. promotional APR. When do you think it ends?

Starting point is 00:52:25 So you don't even know. I didn't even know it was your present or whatever. Oh, congratulations. It ends in less than a month. It ends in three weeks. So, and then it's going to be at 27.7% interest. Okay. $70 of fees is here so far.

Starting point is 00:52:36 I'm sure you've had late fees. Probably about two. Probably. Because you don't know anything about your money because you've never look at a statement in your life. Please go through our debt and budgeting program. Please for for sake. Oh, you probably, someone inquired probably to get,

Starting point is 00:52:51 to a promotional, please help us. We're drowning promotional thing. Or someone at the bank was like, or Bank of America. He's an American. He has an American flag right there. I love him. Let's give him a little. My wife actually told me to get that card because she has the same one.

Starting point is 00:53:07 Are you guys separate finances? So we have a combo, like me and her have a joint account and then she has her own checking account. We separated that years ago because I spend all our money. Oh, you're the, just, you're the, I'm the spender. I'm the spender. I'm the spender. You're the man, baby.

Starting point is 00:53:22 She's the typical, like, my kids need all of this. I'll spend hundreds of dollars on the kids, but I'm walking out of my shoes. I'm not going to buy myself new shoes. Me, I'm like, okay, I'll spend all the money on the kids, and if I need new shoes, I'll just go buy them. Okay, we're obviously going to have to make more money to get out of this situation. What do you want to do? Do you want to do 80-hour paramedic for the rest of your life?

Starting point is 00:53:44 No, I actually want to completely change fields. What do you want to do? I well, so that's what I've been pondering for a good six. Do you have a few? I have two. Yeah. I've got kind of like set paths. So for one path that stays in the medical field, I want to go be a CRNA.

Starting point is 00:53:58 Okay. But that takes four, five, six, nine years, seven to nine years. CNR? Because they don't have, no, no, no. Yeah, yeah, CRNA. It's basically an anesthetist with surgical capabilities. Sure, sure, sure. And starting pay fresh out of college, no experience.

Starting point is 00:54:16 Yeah, fresh out of school, no experience. How did you go to manage your mortgage with nine years? That's where the problem comes in. That's a problem. What's the second? That one takes seven to nine years because I don't have a degree. I just have trade schools. So then aspect number two, I want to go be a criminal defense attorney.

Starting point is 00:54:33 For fuck sake. Do you have anything that takes less than nine years? No. Again, this mortgage situation, you're going to put yourself in a small apartment to be able to afford these things. That's where the big problem comes into me not being able to go back to school. So I can circumvent some of the schooling with my wife is getting her degree. And she's using. What?

Starting point is 00:54:51 want healthcare business administration but she's going online okay you cut that oh cut the school name yeah okay that's fine um i mean that's where everyone goes online for right thing so what i can do is um partners with sophia and sophia you basically pay a fee or months of your subscription you can take as many classes as you want and all you do is you can shortcut these classes so you take a test if you pass the test you get credit for the for the class the full credit it like a three hour credit. And then stop saying the name. We have to believe it every time.

Starting point is 00:55:26 And then, well, I just don't know. I don't want people to know that's where she goes to school. I know, but you keep saying it. So even if I don't want. Stop saying it. Keep talking. Okay. So then Sophia is accredited with another online school that accepts these credits that you can fast

Starting point is 00:55:46 So you're considering this. How much is this? So Sophia is like $90 a month and you can take as many classes as you. want and then the online school you pay you can't get through your master's and stuff like that either way no you don't go to a real college but i can cut out two years of bachelors yeah yeah two years of twoish if i mean you're like associates like the genads no no you can get a four year degree from this online school so like if the online school but through sophia it's both i don't know much about the sophia thing i right so you you piggyback the both of them so you do as much as you can in sophia to transfer

Starting point is 00:56:17 to the online school and then you finish your degree with online school so there's any people that have through this in the, who's in the audience. I would love to hear your thoughts on that. I've never heard of Sophia. I know the school she's going to. Yeah. So then the school is an accredited university. Okay. So then I can cut out years on my bachelor's and then if I want to go to the lawyer route, it's an accredited school. And then to get it to law school, I apply and pass. And then if I get into law, if I get into law school, then that's three to four years. Three or four years of having to pay for this mortgage. It's already 60% of your income. So then the problem is we law school. Law school is full time.

Starting point is 00:56:52 It's either four or five days a week. No, the problem is that you got, that's not the school isn't the problem. Law school isn't the problem. Those future goals aren't the problem. The thing is you've set yourself up for an expensive lifestyle that you can't afford if you want to do anything but grind forever. Right. That's the problem. Again, and this is actually worrying that you are naming the wrong problem.

Starting point is 00:57:14 You don't understand that what you did that got you here is the actual problem because that just means that you're going to end up here again post school. you're going to lifestyle inflate yourself to, if you guys are making like 150,000, 300,000 hours a year as a household income, you're still going to have your household mortgage be like 60% to have this castle because you need more space. I need two movie rooms or whatever. Like that's how you will do it if you did not learn from this mistake. Just like when you consolidate your debt and you sold your house and you use the equity position that you made money on and you just built your debt right back up again. The fact that you do not know the actual problem is dangerous and scary. Well, I guess it doesn't help you.

Starting point is 00:57:58 If your wife, I guess I can't gift you. I could gift you a course career certificate. It has nothing to do with what you're doing. It is 25% off. No, it's Black Friday. Whatever Black Friday, I think it's 25% off for all their certifications for those interested in the audience, by the way. But if there's anything we can provide to you on that, education front. We definitely will, though.

Starting point is 00:58:22 All right, so save your one, capital one. Oh, this balance is thick, dude. It never goes away. Well, because you spend on it like a dumb ass. You spent more than you paid towards it. What do you mean it never goes away? Come on. You're not a little victim. You did this. No, I know. It's not it never goes away. You don't allow it to go to way. You want it to be there because you allow it to be there. Because you have a leash around it. I think it has a leash around. No, you spend on it. It doesn't. It has a hold of me.

Starting point is 00:58:50 It's like, I'm not going anywhere. By your... I think we have a leash on each other. Sure. Some kinky thing. Whatever. $7,619. $17.74.

Starting point is 00:59:04 An insane balance for... And all these up are absolutely wild for your life. For the income that is happening in this $250 minimum payment, I do not know how this is all going to fit, man. I do not know. $440. $14,000 purchases, but you only made the minimum payment the month before that. What the f-again?

Starting point is 00:59:23 We are doing this on a card that is accruing $174.9 in interest on a monthly basis. You don't know that because you don't look at a statement. You just want to make sure you can make your minimumity payments. I'm not shocked we have late fees everywhere throughout here on these cards because, again, you're late on all your payments. You're late on the HOA. You can't afford to pay that. We have no savings.

Starting point is 00:59:42 I'm curious to hear about why here in a second because you said you had to not anymore. That means something. So I'm just not surprised we see we've had late. So let's see. Do we have fees? There we go. We've had a late fee this year so far. There it is.

Starting point is 00:59:56 I see I knew it. And I didn't even see that when I was going through here and scanning when I was looking at today. Okay? Because this is crazy because you stretch yourself beyond where you can go to. So making sure you say you don't know the interest. You don't know what's being spent on here. You don't know the money as long as you can make your minimum fee payments. But through all these cards, you have missed minimum monthly payments.

Starting point is 01:00:15 So that's not even true. Your logic of I just make sure I have enough to make minimum with your payments isn't true because you miss them. Disney Plus, Hulu, Netflix, subscriptions, I promise you don't need. If the little kids need to watch something, put them on this free app. It's great. And then some utilities and Walmart, $24, who knows. And then donations to a church, I think.

Starting point is 01:00:46 Okay. So the thing we believe, there was a sport. restaurant that you went to for $70. That's five kids. That's five of us. Yeah, you can't go out to eat. You dumb, you're going to lose the house. Sorry.

Starting point is 01:00:57 The only reason I'm angry and I, we got to get it. It's the kids. It's the kids. No, yeah. You're forcing them to go through what is going to be traumatic in their life and you don't care. Had a thousand, five hundred hours lost this year so far an interest on just this card. One card.

Starting point is 01:01:16 It's a lot. Good copse smile, dude. It's a lot. there. You're going to get through this with that. Of course we've missed payments. Huh? It's better than crying. No, it's not. Crying's a real emotion instead of trying to laugh your way through the shit.

Starting point is 01:01:32 It's not a joke. It's real. Kids are you going to be crying when they're forced to leave their house because of you. 27.74% interest rate. This just keeps going. What are we in? Fat Stack 2.0. City Costco card. That one's going to be a habit. going to have a high spinnature.

Starting point is 01:01:52 Oh, no, it has a high balance, too. That too. $7,000. Why? Two $7,000 cards and your income is insane. That one has the move on it, which the mover's f***ing royally. Oh, sure. Everything's everyone else's fault according to you.

Starting point is 01:02:07 What did you get? I owe the $1,000 a lot of money. Why did you get f***? They quoted me $1,500 to move from one house to the other, which was not far in distance. And then when they moved me in, after they broke, a bunch of my shit charged me $3,200. Okay, one, did you get the insurance to them? There's oftentimes insurance you can get through them.

Starting point is 01:02:28 They didn't offer it. Okay, then we don't use those movers because every mover offers insurance. That's usually how they make extra money, but they f***ed up. Great. Number two, they probably charged you per hour and quoted what they thought it would take and it ended up being twice as long. They quoted me for six hours. They were two hours late.

Starting point is 01:02:46 How many men? Did they quote you for versus how many showed up? They quoted me for two trucks. How many people, though? Five or six. So you don't even know, man. It was five or six. And then they quoted me for two trucks for six hours.

Starting point is 01:03:01 And it took two trucks in seven hours. But they were, so they were two hours late. So it was like time shift just moved over. Okay. Why didn't you dispute the charge? I did. And? I've never disputed a charge before.

Starting point is 01:03:12 And when I disputed it with them, I didn't know you only get one, like, paragraph to put, like one opportunity to say, this is why I don't like this charge. and the city bank denied it. They denied the dispute. What do you mean you only get one? Did you put it in the reason? Yeah, yeah. So when you... Then what does it matter

Starting point is 01:03:28 that you only had one chance to explain? I thought you got to do like, this is a summary of what happened. Okay, we're going to contact you and then I can further explain like going to more detail. So your summary was lacking? I would, yeah.

Starting point is 01:03:39 Well, you shouldn't have done that regardless. Why would you want to have a lacking summary for something so expensive? Because I thought they were going to come back to me. I get why, but why have a lacking summary regardless? Because they had a 500 character limit. and I couldn't put

Starting point is 01:03:50 I don't know the basic you told me was less than 500 hey they charge us as much as they said they were going to and they broke all their stuff

Starting point is 01:03:59 and didn't offer us insurance but I wanted to have like I had like timestamps and line items and pictures I get you I get you okay that's so like that's what I was hoping that they would come back and say

Starting point is 01:04:09 call the bank did you call them? No you haven't even called them then I have no sympathy you haven't typed in a number to call I have no sympathy

Starting point is 01:04:18 They said the dispute is closed and done with. I get it, but you haven't even tried to call. You never know what can happen, man. You didn't even put the effort. Come on. And banks are usually pretty darn good about if you're disputing and they think there's anything sucks going on working. But I don't know, man.

Starting point is 01:04:37 It just sounds like you probably didn't know what you're signing up for. Do you think I could still call? I mean, this was back in large. I don't know. Everything's worth a try. That's fair. Yeah, because I still don't believe you knew what you were even doing. I mean, I knew I was signing up for movers, but when they hit me with the price, I was like, that's insane.

Starting point is 01:04:55 And so to get... Honestly, for that many people, that many trucks, I don't know if it is insane for that much time. When I've done moving, I do two people, one truck typically. Actually, I did three people the last time. It cost me $500 and it was for a couple hours. So six hours, two trucks, six guys, seven hours. I'm not really surprised. Because a couple of the other companies I had quoted me was,

Starting point is 01:05:17 there's one bigger company that they were going to send four guys with two trucks, and it was giving like $9,000. Yeah, moving's expensive, dude, if you don't do it yourself. Absolutely. Okay, you made your a little more than the minimum of the payment, but it doesn't matter because you purchased $1,787. Tires. Okay.

Starting point is 01:05:35 I had to put new tires on my wife's car. And there was, yeah, tires, sensors was like $1,500. Guess what, you're going to have to do tires again at some point for any car. but hers were like The metal was showing on her tires Well you're spending on going out to eat And stuff is if we know we have to get tires

Starting point is 01:05:55 We can't afford to get tires We have to put it on something that's accruing We probably can't go out to eat Wow who would have thought $88,041.41 sense of interest is accruing So Costco did the tires Yes And then there's also Costco spending

Starting point is 01:06:09 Costco spending in Dream Sleep Machine That was I went to $167 I went to a sleep doctor to try to get a sleep study. You have sleep problems? My wife says I don't, my wife says I snore and stop breathing in the middle of the night. Oh.

Starting point is 01:06:23 I sleep just fine. Oh, that you stop breathing heavy? Oh, so this is like a sleep apnea test. Yeah. So. Oh, okay. That's good. That's good.

Starting point is 01:06:28 I couldn't get the sleep apnea test. And that charge is also bullshit because no, no, it's not like, as in like, I agree, I paid it. But I talked to a doctor for three seconds. And he goes, so do you have trouble sleeping? Welcome to health care. Yeah. And it sucks. He was like, do you have trouble sleeping?

Starting point is 01:06:43 I was like, no, I sleep just fine. My wife says I snore and stop breathing. and go, okay, well, you fill out your assessment, get scheduled for a sleep study and goodbye. Okay, yeah. That was the hunter's whatever that charges. So then the lady comes in and she's like, hey, your insurance is going to be $600 a night for a sleep study. And I said, no, thank you. Walked out.

Starting point is 01:07:02 Well, the fact is, is with your income and with your life and with the dependents you have, you probably should do it and you probably could afford it if you weren't done with your house. If you don't, weren't done with your spending, because this is actually something I would say you should do. I'm not paying $600 a night. If you're, I get that. You can't. You spend more than that going out to eat. So great.

Starting point is 01:07:21 So, but you could die. And then, and then what? Do you have life insurance, please? Yeah. I actually, because you're going to be stupid and get yourself killed by not taking care of yourself because you're putting food $70 at a fucking restaurant over you being able to survive the night. But your priorities are whack.

Starting point is 01:07:41 You're so stupid. For my life insurance, I, up, I went. above like the auto accepted minimum, it's up to good because you're dead. Your priorities are whack man. You're just acting like a dumb ass. I wouldn't be surprised.

Starting point is 01:07:57 Oh, Chrysler. Oh, for what? What am I looking at? My car. Zero percent though? Delease. Oh, okay. Well, then all that really just baked in. A $712 minimum with the payment? Oh,

Starting point is 01:08:11 fuck. Oh, is this going to be possible? Oh, it's It's been possible. No, your debt's going, buddy, you spent more than double what you made because you put your spending on credit cards that are just going up and you're luckily high credit limits allowing you to do this.

Starting point is 01:08:28 You think it's possible because you've been able to do that so far, but you're going to hit the credit limits and then you're this purchase wasn't my fault. I got salesman. Oh, you stopped being... It happened. I went there for one thing. Shut the fuck up. That's going to piss me off. How do you have no responsibility in this world? Are you a damn child in every instance?

Starting point is 01:08:49 That is going to rage me. What? What? I went for a different vehicle, a used vehicle, half the price. Uh-huh. And I got salesman out of it. Uh-huh.

Starting point is 01:09:01 He's like, this is a piece of shit. Uh-huh. And you have no way of advocating for yourself for acting like an adult? Uh-huh. And so I went with something else and I got- Oh, crazy story, dude. Great.

Starting point is 01:09:12 Yeah, it was fun. baby because 700, I don't like, two parts of my rage here. I have to explain my rage because the audience doesn't understand it when I get, I'm going to go, wait, so hungry.

Starting point is 01:09:32 It's also just parasycial and weird, but whatever. Okay, so, my rage. What is it? One, I got salesman. Of course, it's not your fault. Everything's out of your control. Two, I don't know what we're going to do, man.

Starting point is 01:09:46 This 712 has to have pushed us to our limit. If we incorporate whatever expenses in your life, including food for the family, it has to have pushed you to your limit. And I don't know what to do. I'm scared to find out where this ends. Okay, what's your term on this? And where are you in that term? It's over in February. This coming February. Oh, thank goodness. Thank goodness. It's the only bright spot because you're not going to buy it. No, no. You are going to go get a $10,000 car. Max and you're not going to get salesman because you don't know how to advocate for yourself. That's going to be it.

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Starting point is 01:12:18 If you get too cheap of a car, then you have to put more money into it than it's even worth. I'm not saying to do that. Usually you can get a $10,000 car. Make sure you get it taken to a mechanic. Make sure the mechanic gives you the thumbs up that it's going to last a few years without you pumping a lot of money into it. Without you being in a dangerous situation, okay, physically and financially. So the only problem I'm going to run into it at the lease is my miles. What?

Starting point is 01:12:43 You know, it's like... Yes. And time asking what? The cap is 45K and I'm currently at 49. What's the 25 cents a mile, I think? That's like the standard. So you're going to be at what, 51? Give or take, 1,000.

Starting point is 01:13:05 Let's call it. It's call it 525 to be safe. Huh, 5,250? No, no, no. Oh. Miles, 52,500 on the car when I turn it in. What, 52,000? Yeah.

Starting point is 01:13:16 my round trip to work alone is like 30 miles and how much it was you you were allowed to do 15k a year so 45 total so it's like 7,200 and yeah 75 so on the charge per mile 25 cents wait wait why can I not do that math wait whoa how do you do that math uh

Starting point is 01:13:38 oh wait wait wait wait okay I can do that I got I got I got so you can have to owe 1,875 just in mileage. Just in mileage. Because they're going to damage or anything? There's a couple of chips in the windshield. They've been patched, but I mean, they're going to charge me for it.

Starting point is 01:13:56 I know a new windshield is anywhere between $500 to $600. I'm not saying I want you to, but you might be able to roll this over. The thing that with that is you're forced to get it with that dealership, which is dramatically limiting your options for getting the best card of the $10,000. You might be able to roll it over. I'm hoping there's some luck there. But $1,875, technically we could be able to do this if you didn't. do stupid with your house if you didn't do stupid with your spending.

Starting point is 01:14:19 For the sake. Yeah. I'm going to make a note for that, I guess. The other option I had thought of was because my wife's work from home now that... Your wife works for work. She has a job. Yeah, we're dual income. Okay.

Starting point is 01:14:36 How much does she make? 52. So... A year? Yeah. Why hits her account? She's salaried. Hold on.

Starting point is 01:14:42 But is there also more expenses in debt that she has that I don't have here? No. So I have to give her some of the... the bills every now. Hold on, but the household income is more than $5,500 a month. Yeah. What the fuck did you not tell me this? What comes in from my income?

Starting point is 01:14:55 What comes in for her account? Take home is $2,400 a month? A month. Okay. Because she pays all the insurance and stuff. It helps. It helps. Oh, well, then I need to know.

Starting point is 01:15:08 Do you know those amounts for the bill she takes care of, too? It's whatever I tell her to pay. Usually it's utility bills. No, for everything she does, like insurance and everything. think she pays $450 for health insurance. Oh, before her money hits. Yeah, yeah. Oh, okay.

Starting point is 01:15:24 I thought you meant like car insurance. No, no, no, no. I have the car insurance. Okay, okay. So the Chrysler, okay, so $712 a month. Okay. But back to the car. So, and I'm sure this is a bad idea, but to avoid, like, lease fees and all that

Starting point is 01:15:38 if I turn it in, so CDJR, Chrysler, Dodge, G. brand, whatever has the deal, like, if you turn in your lease to get another lease. Don't. No. We're stopping the cycle. Okay. We're stopping the cycle. Furniture?

Starting point is 01:15:55 Good. Fuck off $4,146. About a lot of furniture. Apparently. Okay. $4,146. $26 is owed for furniture, the minimum fee payment of $166. Okay.

Starting point is 01:16:13 Let's see here. There are going to be. at 18% but when Wait, oh wait wait wait Oh it's deferred interest Oh shit oh when does this end 24 months Oh stop stop stop stop

Starting point is 01:16:25 You don't know anything We've learned this to this conversation I don't even want to give here I'm sorry I wouldn't trust your number It's not on here is it Wait got it 24%

Starting point is 01:16:37 Again you do not know what you're talking about man One ends in seven months Okay. Not 24. The $1,199 is owed in seven months. Accrued interest so far on that one is $545. And it's only going to go higher. The other one is probably the longer one. That's going to end more in like a year in seven months. Okay? That's $3,790. But that's already accrued $314. And it's accruing $56 a month in interest that you will have. to pay if you don't do you understand that yeah that interest will back hit you oh no I didn't know that what did you think I was talking about this entire time when I was talking about interest accruing what did you think was happening well on

Starting point is 01:17:31 this one specifically what do you mean by back because it's zero if it's zero percent for X amount of time if you don't pay that entire balance and seven months of a thousand one hundred ninety nine dollars the that it was accruing on the back, deferred, will hit. Oh. Which so far is $545 for that one, it will likely be close to about $700. Okay. And then the $3,790, that's going to be like $1,000 by the time that hits.

Starting point is 01:17:59 No, it's going to be like $1,500, maybe $2,000 by the time that hits. Okay. If you do not pay it off in time. Gotcha. Does that make sense? Yes. Is this another debt? Can we be done with debt?

Starting point is 01:18:11 That's the mortgage. This is the house. Jeez. Hope that means it's the end of the fucking debts, because this is. is we're still going this is such a long episode 325,940 and 43 cents owed at a 6.625% interest rate that's just about where we're at today and the minimum monthly payment including all the goodies escrow distributed is 3,258 right?

Starting point is 01:18:41 Yep, gosh, that is so expensive. Yep. For you especially. Well, again, the wife's income that's actually coming. in to help. Yes. Let's see what the percentage is now. Still very, very bad.

Starting point is 01:18:55 About 42%, you would cap it at about 30. You're still putting yourself in a dangerous position. It's not as crazy as it was. But it's still very dangerous. Oh, what is this? 30-11. For you? Yes.

Starting point is 01:19:12 So you did go to school. You dropped out. I used it for trade schools. Did you complete trade schools? Yeah. I'm all starting up. Great. Paramedic.

Starting point is 01:19:22 Paramedic. So, 2,556. That's what's left. This isn't crazy. I got it in 2014. What's your minimum? 120. And they're both low interest.

Starting point is 01:19:33 One's like 3%. The only one's 4%. 140? 120. 120. They're two different ones. They're broken up real weird. Yep.

Starting point is 01:19:43 That's, yep, that student loans for you. Federal ones at least. I did have a year of like whenever they were just. Is that it? The debt? Oh my gosh. No, there's one more that I guess I didn't submit my wife's car. No, apparently it's on, it's included in one of these checking accounts. It's on the A plus.

Starting point is 01:19:59 Yeah. Let me find it. Are you kidding me? How are we still going through debt an hour and 17 minutes in? Okay, it's in the A plus credit. Oh. Luckily, it's a low interest rate. You said this was your wife's car?

Starting point is 01:20:14 Okay, 4.5. 4.25. Oh, you better. Again, you do not know things. Let me speak. Sorry. When talking about your numbers, you do not look at them. So I will tell you what they are. It's $40,000.

Starting point is 01:20:31 Because it had a rollover of negative equity from the last car. What's the car? Currently, it's a Tahoe. 2018 Tahoe. LT. Nothing fancy. Do you know what it's worth? 23, 22.

Starting point is 01:20:47 Well, any more than I owe on it. I can't believe you guys have had to separate your mom. money just for the sole fact that you're not mature enough to not spend money. That is crazy. I feel bad for her. I feel bad for her that she's married to someone so immature. Financially. I'm sure you're great in so many other ways.

Starting point is 01:21:04 This is always financially. No, I understand. But come on. She married a child. It's bad. Financially. Minimacy payment is 600. Again, this is getting us in a crazy dangerous position.

Starting point is 01:21:14 What is the term length on this? 72 from 2020. Oh, I'm just going to I think we're going to call her in the post show. So here's where we have the significant other confrontation. So make sure you guys join our YouTube membership, guys. You can get the post show and thousands of hours of other audits and other content that we do.

Starting point is 01:21:39 There's even a call-in show where you can call in and get my take on your situation, any kind of situation. So make sure you guys join that elite for all the extra content, especially. And a private Discord now. A lot of stuff. Super fun. Okay.

Starting point is 01:21:56 And let's check in the account in 201836. It's not horrible. 2412, actually. Pooper Scooper. Twitch, rain for Twitch. Subscription. Domino's Chick-fil-A, Chick-fil-A. When inside got some bullshit.

Starting point is 01:22:17 Sushi? $103 to sushi and habachi. Come the fuck on you. You can't afford that. When at gas station got some bullshit. ultimate pooper scoop this is an ongoing people come by no we have a lot of dogs yeah no you order one pooper scooper off the internet and you do it or make the 11 year old do it or your wife the 11 year old dude you're their dad make them ground them you figure it out taking a parenting course watch some

Starting point is 01:22:42 youtube videos talk to someone that knows what they're doing and parent your child okay sick i'm not the person to tell you how but do it guess what i was a rebellious little piece of i still picked up my poop. Lots of places can expose you to identity theft. Oh, no. That's why LifeLock monitors hundreds of millions of data points a second for threats to your identity, which is way more than anyone can do on their own. If we find anything suspicious, like new loans or changes to your financial accounts, we alert you right away, all through text, phone, email, or the LifeLock app. Get the alerts that could make all the difference. Save up to 40% your first year at Lifelock.com slash special offer.

Starting point is 01:23:23 Terms apply. They probably told me I couldn't play Xbox or something. That was enough. Uber Eats, Uber Eats, McDonald's, smoothie king, wing stop. Academy Sports, hoping for the kids, 200. My wife's birthday. Academy Sports? Close.

Starting point is 01:23:38 Clothes. Okay. Happy birthday. We're not going to lose the house. Wife. How about that? He went outside of gas station. Got some bullshit.

Starting point is 01:23:46 The local open. You guys are eating out every second of your life. Yep. Every second of your fucking life. Twitch? Stanley. Stanley? My daughter's birthday birthday.

Starting point is 01:23:58 Oh, my. How about, again, get them a birthday of not having to get evicted? Huh? Well, close. McDonald's wing stuff. Come on. This spending is the dumbest, mother stupid shit ever. Would you believe you if I told you it's been worse?

Starting point is 01:24:17 Yes, I would. I would, because I know who I'm looking at right now. I've learned you throughout this. Went inside a gas station, got some stupid bullshit, drink, whatever snack. Who knows? Pizza, Starbucks, PayPal and out. More pooping to scooping. Subscription to Microsoft.

Starting point is 01:24:34 More Twitch. What are you twitching constantly? You have Twitch money. You're just like, Twitch, you're just throwing it to Twitch. What are you doing? You don't know how bad your life is. You're just throwing it all. It's so horrible to see.

Starting point is 01:24:49 More scooping up to pooping. Oh my fucking we're PayPal and out We're going inside and get into bullshit And golden chick PayPal PayPal PayPal Poop and Scoop and Scoop Domino's Starbucks You can get the poop and scoop when you take care of your Money and act like an adult

Starting point is 01:25:05 Apple subscription The PayPal is meals for work What a joke? Huh? The PayPal, it's meals at work Like I have to pay in because we go grocery shopping You put into a community fund Your community fund

Starting point is 01:25:18 What I can't eat You know what I'm I'm going to say. Do you watch the show? Every now and then. What am I going to say? Bring your own lunch. Make a sandwich. Hey, there you go. You figured it out. You can get cheaper than the communal thing.

Starting point is 01:25:34 It doesn't have to bend everyone else's wishes for lunch. $1,000 guys, in this little cash app investing LLC fund. Oh, retirement is just around the corner. We're almost there. Oh, but wait, you haven't heard nothing yet. $285 in Robin. It was at our wife, my wife and me, guys, we're going to live in luxury. $42 in this Robin Hood.

Starting point is 01:26:02 Wonderful. Well done. Really, really set yourself up. Oh, good. And I'm being told I didn't look and apparently it's all in Dogecoin. I made a lot of money out of it. What's a lot? Like five grand worth.

Starting point is 01:26:18 So you took it all out. I had to sell most of it. Good. Yeah, because you can't afford. pay bills. So I just left it in there. Take the investment program. I'm not having this conversation.

Starting point is 01:26:29 I've got a retirement account. It's got a couple grand in it too. Okay, good. 401K? Yep. Okay, you could have sent me a statement, but all right. Is that like a 16% ROR for 15 years?

Starting point is 01:26:41 Probably. Your spending's stupid if you want to take a look at it. I don't want it in front of me anymore. I'm scared to make this budget. I am scared. I think this is going to be. It's going to be upside down. I bet it's upside down.

Starting point is 01:26:58 So what's the solution then? If we already know it's upside down, then there's no point. And people love it when I don't make a budget. But again, if it's upside down, what is the point? What do we do? What's your solution? What did you think? I'm still going to make it.

Starting point is 01:27:10 What did you think you were going to do? I know. What is you and your wife's plan? Well, I know the things I need to get rid of. One being my car, obviously. Yeah. And then go to the grocery store more versus going out all the time. That'll cut down a lot of spending.

Starting point is 01:27:26 and then I think those are two of our bigger expenditures. That's it. That's all we were going to do. That's to get me started. How are you going to get a $10,000 car in a few months? What was your plan there? Or you were planning to just get another lease? That wouldn't help you.

Starting point is 01:27:44 You would have been had another chunky payment. Your debt minimumally totals, by the way, $2,000, $2,2,2,2,2,2,230. But that's not including your mortgage. Your mortgage again, $3,000. $258 to $49. What about utilities? Water bill averages between $120 and $140. And electric bill lately has been averaging about $150.

Starting point is 01:28:11 Internet? $80 a month. I brought room for gas gas for both of you. So it's different now because now that she's worked for him, which isn't filled with us. I would say $180 a month. Car insurance for both. It's $3.20.

Starting point is 01:28:27 Winnie for both. TP, find anything else you need to survive, this includes things for kids' school and stuff like that. I'm going to do $200. Hopefully you can cut that back. Necessary food,

Starting point is 01:28:38 which will be able to get you guys. It's going to be, your kids are going to be so bored with the food you get, but I don't care. They can eat or they can go to bed. They can get hungry, and then they'll fucking eat.

Starting point is 01:28:47 Maybe, I don't know. That's what we tell them. Yeah, but, again, I'm not a parent. I don't, but either way, though you're going to be meal prepping only a couple times a week. So it's just going to be lots of repeats,

Starting point is 01:28:56 but it's just, we got to, you know, survive. I think we can meal prep. I'm going to do a thousand. Not going out to eat. Medical health care co-pays anything? So I'm changing my insurance coverage at the turn of the year when I get new benefits because I'm trying to get more healthy, I guess.

Starting point is 01:29:21 So I pick the- Monthly expenses. I don't know yet. That's the problem. So no one consistently goes to the doctor right now. Okay, Jim? Don't have one. Like don't have a membership.

Starting point is 01:29:30 Pets? How many? Three. Pet food? How much? Get it from Costco, so it's cheaper, but it's probably $80 a month? What are they? Dogs, cats? What? I have two Rottweilers and a pit bull. Okay, do you have pet insurance? No.

Starting point is 01:29:46 It's irresponsible? My mother-in-law works at a vet clinic. She's the manager of it. So she can save a pet's life for free? If they need a surgery? No. Exactly. So you don't have pet insurance? It's irresponsible. Let's call it $40 per. I'm set by three.

Starting point is 01:30:00 $120. I don't even know you can get pet insurance. You're kidding me? What are you going to do? You're going to let them die? No, I just pay. I say I pay for it, but I just... You pay for a $10,000 operation if you needed to.

Starting point is 01:30:11 Exactly. If you have a pet insurance, meaning you're allowing them to... I mean, you're not being a responsible pet owner in my eyes. I'm sure other people see it in a different way, but that is how I see it because the pets are everything to me. Phone bill. I would care credit because we've been in a situation like that before.

Starting point is 01:30:26 $10,000, $30,000? I did $30,000. Mine cost $30,000 recently. Somebody broke my pit bull. leg, snapped in it clean in half, and I put $4,000 on a care credit. Yeah, what happens when it's 30? Phone bill. I don't pay because I'm on my mom's account.

Starting point is 01:30:42 Is there one for your wife, kids? She doesn't pay one either, because she's on her mom. What other expenses am I not aware of that your wife takes care? Daycare. Oh, how much? Yeah, $1,000 a month. Wait, I thought she works at home. He's part-time.

Starting point is 01:31:01 The youngest, there's only one. Can she take can she sacrifice a little for that? We've tried, but the problem is. But a thousand, we probably, we just like simply can't, right? Like, we're about to add this up and we know we can, right? Yeah. Again, total household income, what was it? 5500 plus 2,000 plus 2,400 a month.

Starting point is 01:31:23 Not a bad household income, but where you guys got yourself. So let me do the math. Let's find out. Shelty, go ahead, tell me about this insurance, or the child's care. So she's on the phone a lot at home And he's not a work from home kid So he goes to daycare He's just I mean it's a typical three old

Starting point is 01:31:40 Just rambunctious and loud Okay So he goes to daycare For the for the front half Like he goes from 8 to noon And then when he comes home takes a nap By the time he wakes her for his nap When are the grandparents

Starting point is 01:31:50 They work full time How old are they? My grandparents or my parents Your parents My dad is 60 And my mom is 55 Congratulations man

Starting point is 01:32:01 If you actually budget you made it. You actually so I'm glad we did a budget. I am. You barely made it. I mean, let's be honest, your break-even,

Starting point is 01:32:14 but because I'm sure there's expenses we haven't taken an account, food, T-P, you know, it's Evin' flow, you got to make the budget together, but you made it by $41.45. So I'm considering that break-even, possibly under, possibly over.

Starting point is 01:32:29 Most likely over, more than under, because you and your wife need to sit down, take the budgeting class, learn how to make a budget and then manage it, figure out what it is together. So, yes, the thing is, working your schedule on all this stuff, following this budget, like crazy all the way through February, you're still going to have to essentially take out a 10,000-hour loan on the 10,000 car and probably 11,000, 12,000 in order to roll the negative

Starting point is 01:32:57 thing if you do that broke. Now you might just have to take out a little personal loan to deal with that, and you might have to, and then 10,000 hour so you can use all the different lots. in town so you don't have to roll over and use that one lot that you're currently leasing list so you're probably going to add 10,000 dollars to this but your minimum of payment hopefully we get it closer to 400 versus the 750 for the car and that actually starts giving you some room but only like $250 a room and $250 a room let's do some basic math here buddy I just want to put this perspective you have that extra sheet of spending no you don't

Starting point is 01:33:32 because I do just want to put this into any kind of perspective we take away the mortgage and we add that $10,000 car loan, and we add that $500 you borrow to figure out that lease situation. You have $83,509 a debt. If you follow this completely, sorry, actually we have to get rid of the lease. Oh, the lease isn't on there because it wouldn't be. It's not, we're not.

Starting point is 01:33:58 Oh, wait. Oh, no, oh, we did. But that only takes you $2,977 off. So, okay, 80,532, extra $250 a month now. So that still takes you $322 months to pay off debt, which is obviously unreasonable. Or 26 years, which is not even close to reasonable because we need to be able to retire. So this leads us to a few different, interesting little things. Can't sell the house.

Starting point is 01:34:28 No way it gained equity position necessary to, because you're going to, it's going to cost you a while, like, 5 to 10% to sell the house anyway, six to 10 percent. So it's not even worth that. Bankruptcy, um, bankruptcy might be an option. Maybe start talking to a bankruptcy attorney, get their thoughts on it. I'm going to set you up with the free, you and your wife are going to sit down with people who I use for my own financial advisors, licensed financial advisors, domain money. Because of my situation, my partnership with them, everyone, everyone, including the audience, and you gets a free session with them if you sign up. So highly recommend that, like CPA or licensed financial advisors. So do that, get their take on it and see if they think bankruptcy is an option.

Starting point is 01:35:12 But probably stop your side hustles. If you really do have extra time to work, put it towards a guaranteed income. If you bring in a guaranteed income an extra thousand hours a month, which is going to be hard from you because I think you're already pushing your body in the max. I really do. I don't want you to end up in a dangerous position. But let's just pretend you do. Again, what was it, $80,000? I mean, it takes 80 months to pay off, so what is that?

Starting point is 01:35:38 That's still six and a half years. Might be bankruptcy, right? You know, we're keeping the cars, keeping the house, but bankruptcy for a bit, and I can be able to take out credit, but you really start fresh. Fuck yourself for 10 years in terms of being able to take advantage of any kind of leverage. But at least you and your wife get a relatively fresh start, not fully. Still got to figure out the mortgage situation. Still got to figure out car payments.

Starting point is 01:36:00 But also that for... Is it seven years on your credit report or whatever? Depends which bankruptcy you go through, but it was just to assume a decade. But when you have to borrow to get this new car, you're going to fuck yourself there or you're going to get something predatory. So there are consequences and negativity things. So there are options here. You work yourself to a limit that I wouldn't recommend, and that still takes six years to be off the debt,

Starting point is 01:36:29 following the most rigorous budget ever. or you're paying it off into your 50s, you know, going the other way without changing anything. And this doesn't even include you going back to school. I'm sorry, this is a doom and gloom right now. The proper and better path is probably bankruptcy, which sucks. It's really the last option because it's expensive to go through bankruptcy.

Starting point is 01:36:49 And, you know, it's going to cause pressure on the household. So her, both her uncles actually filed for bankruptcy. They went really well for them. Yeah. They did the whole dead and eyeballs. They have kids and wives. I think at the time they each were married with a single kid. It can cause stress on the household.

Starting point is 01:37:08 You know, people are going to try to come get their money. It's going to be fights. But it can work. It can work. And I think you've reached that situation where it might be the option. I want you to sit down with the domain money people first, though. Okay.

Starting point is 01:37:20 I really do. Okay. Yeah, I mean, that's my take. That's my take. I'm sorry. I wish I had a better answer. You can do the long way. You could do the midway or you could do the,

Starting point is 01:37:31 quicker way relatively, but then I think, again, my big concern is what do you do about your car when the lease is done if you do have bankruptcy and your credit is and then you have to borrow essentially to, in bankruptcy, it won't be done by then, probably, anyway, so it's a hard one man. Spending a budget, you overspent zero out of ten debt. You put yourself in such a beyond dangerous position, but you don't have IRS debt or collections, so one out of ten. Merchancy fund, nothing in savings zero out of ten retirement, barely getting started, one under ten. real estate. You do have a house. No longer have an equity position. We got, well, 20% down, but again, if you sell the house, you're going to lose, guaranteed 10%. So it's not great. And it's 40% of the household income or 60% of years. I have to give it a mid 5 out of 10 because of all that. Hammer Financial score, rounding up 1.5 out of 10. Come to the post show, guys. We're going to call

Starting point is 01:38:34 the wife. I need to get her take on this. I need to confront her. And I need to see what their relationship with money is like with each other. And also make sure to bundle our three educational programs that over 10,000 people have taken advantage of. You get it all for 15% off if bundled. I'll see you guys in the post show. You told me because she doesn't trust you because you spend every dollar you see. Yeah.

Starting point is 01:38:52 But then why would you be the person responsible for paying the bills? Most of them are mine. When I call her, is she going to know you have late payments and hundreds of dollars of fees this year so far? Maybe. Sounds like we need to give a little ring ring. I agree. I'm going to put a job speaker.

Starting point is 01:39:06 Why do you allow Cole to? to be the one that's in control of paying the bills. That is not what he said. To watch the financial audit post show, click the join button below.

Financial Audit - The Impossible Financial Audit

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