$100,000 Credit Card Debt, Bankruptcy | Financial Audit

my name is Joey I'm 25 I'm based in. Austin and this is financial audit. what do you do for a living in Austin. I am a plumbing salesman I sell Plumbing. salesman I sell um hot water heaters and. to people yes to humans yes. so not to the companies but to the. people that's right I don't like you I. don't like you I try to be a likable. person or having a bad start already. so I swear that stuff just it's just so. they always try to go because I know.

nothing about plumbing and they always. just try to sell me all this crap that I. my friends my friends who know anything. about Plumbing tell me I don't need yeah. oh and I just feel like it's an endless. like. suck. yeah most people you know don't enjoy. having a salesperson in their house I do. go to people's homes by appointment so. that's how I do the sales is all yeah. but when they have something wrong right. usually when they're people that want to. get sold to when they have when their. poop is Flowing out of their shower or. something well I don't deal with that.

it's mostly water heaters I upsell on. that side when they're taking cold. showers people don't want to be sold no. but they want hot water yeah. okay oh what do you make. it is purely commissioned um I average. about 1500 a week. okay nice how do you feel living off of. 1500 a week. um it is it's okay it's enough. to pay the bills but it's okay the bills.

I'm just gonna address this yeah sorry. okay it's enough to pay the bills but. it's not really. enough to do a whole lot more is how it. feels how it feels our uw-2 are you. contract W-2 W2 okay so taxes are. withheld then so good 1500 bucks poster. post text or pre-tax pre-tax pre-tax. okay and I know with sales and. commission sometimes it could be almost. more like tax like a bonus check yeah. and so some weeks I'll have you know.

pretty high commission checks and they. get taxed ridiculously high so I would. say um it's more like closer to a. thousand that I actually take home based. off of 1500. um. taxes get taken out and then my health. insurance gets taken out of my my. paycheck right absolutely that makes. sense so like four thousand bucks a. month was in your account on average on. average monthly basis okay well I think. a lot of people out there are like. four thousand dollars a month in my. checking account on a monthly basis I'd.

be able to live why do you feel like. you're not able to live what's up. um. so I feel like my my recurring bills are. higher than they should be. um I feel like I don't really go out and. spend like I don't go out to bars I mean. I do eat out a lot. um but I don't go out and do things it. doesn't seem like I just do budget I. don't budget no. I mean isn't that just the answer to. your immediate question that would help.

yes why haven't you been budgeting part. of it is I don't know what my paycheck's. gonna look like when I say average yeah. that means that one week I'll have a 700. check and one week I'll have a 2500. check if you have something that Ebbs. and flows so much you just I mean take. your bottom for the last year you know. and just budget off of that then the. rest is extra that you can put towards. different categories I'm not sure what. the breakdown is supposed to look like. for a budget of because I you know. putting money aside for savings. retirement I'm not 50 on needs 30 on. wands 20 on savings depending on your.

debt situation. right what is your best situation. um my car your car okay my car uh that's. usually one of the rough ones it's the. car I also I forget my TV as well is. finance was there TV Finance that's the. first on this show. through Best Buy. okay and my TV broke. well okay. yeah but then so even if with zero.

percent like I'm okay with some zero. percent here and there but like with you. it's like you're not budgeting you feel. like you don't have money left over at. the end of the month if we're having. minimum monthly payments be attached to. that it's usually not a good thing. yeah. um. yeah I mean I think a budget would would. certainly help so before we jump into. the finances and stuff. um I want you to describe your financial. situation from your perspective. um.

risky. hmm. go on. um well I don't have. uh anything in savings. um so it feels like I get paid and then. I spend the money and then I get paid. and then I spend the money and it's just. you know kind of like up and down not. really growing. right yeah well if this is if this is. self-diagnosed why have you not. corrected this that's why I'm so. confused.

I don't it's hard to say I don't know. um I feel like when I get especially. like a above normal paycheck it's really. easy to feel like you know you're. feeling really comfortable and then you. and then it's all gone. um where do you think it's going no. budget I think restaurants is a big. thing yeah. I could be wrong I guess I haven't. really like done an analysis of my. finances. in my car. yeah that's fair. if you want to do an analysis analyze.

hitting that subscribe button because we. are trying to get the 250 000. subscribers in really close are you a. subscriber I am good I punch you if you. weren't so thank you good I mean you. would kick my ass in a fight any day so. that would have probably been a bad bad. idea but. okay. that makes sense let's take a deep dive. in this financial situation and. hopefully we can put together a plan to. get you on the right track we have some. debts the car but then the zero percent.

Finance. uh TV and then no savings and then. money's just going nowhere so that's our. basis let's see let's start with. everyday checking. well dude. I'm confused what the [ __ ] is this you. you start you started the beginning. balance of your checking account was. negative 236 negative 236 what's up what.

are you doing was that in the joint or. was that in the checking this is in your. checking account you started with. negative money. um and you don't budget even though this. is self-diagnosed the only reason I'm. upset at that is because you're like oh. I know I spend too much money oh I it. feels like there's nothing left over and. then all of a sudden you're deciding not. to do all these things uh that you know. are pretty clear that you should do and. then we open the first document and it. starts with negative 236. I actually didn't know that there was a. negative balance ever that even makes me.

more upset how do you not know Well. normally I would get a notification from. Wells Fargo. um but there was no overdraft fees or. anything so I'm not sure what what to do. you look at your money ever yeah look at. it and you didn't know no I did not know. and. 5338 came in so better month than the. average. yeah okay but then 4550 went out so 550. more than yes if you had your average.

ending with 551 still makes me a little. nervous under a thousand dollars. especially since you started negative. like if you only have a few hundred. bucks in there I mean that's dangerous. for you clearly. yeah so one commission check 854 and. then another commission check 344 but. you also had thousands thousands so. those don't really count and then. commission for 57 then zelins out in. lots of zells and then here was the. bigger one 1400 for uh payroll and then.

oh there's another one so you had five. payrolls yeah this this one so that's. why every week yeah. so this is just one of those rare months. where you know yep so. 1186. so if you didn't do that you would. have been negative again if you didn't. have one of those lucky months where you. got five you would have been negative. again yep. so usually when I see 7-Eleven it's 345. that's typically not gas no that is uh.

something that I need to fix that's. energy drinks what yeah. um do you what do you mean. it's like a banging a bang energy drink. yeah but you say you need to fix like oh. I need to get less I usually I mean. sometimes I'll get one every day. one every day yeah um well I actually. might have a connection for you to. fulfill this habit I wonder why uh. friends I have up north they moved into. uh North Austin they moved into a place.

um. the previous owner bang subscription. and it continues to come in on a weekly. basis has spent uh hundreds and hundreds. of dollars since they've moved in only. like five months ago. I think I was better off not knowing I. think not knowing as well and they're. literally they try to hand it all off to. us but none of us drink that crap so I. recently. um I have a gallon joke at home so I.

made. um not for energy drinks is for coffee. so I'll try to so it's a caffeine thing. it is yeah I don't need energy it's. cheap you can make cheap coffee so I'm. trying to just make it at home Let's. Take Five. that is a oil change okay fair enough. yeah an Amazon Prime there's a lot of. other things well it's a DoubleTree. that is a hotel. all right and a la carte in Houston.

yeah yeah. there's a lot of restaurants here and. like pizza and stuff like that and lots. of subscriptions Microsoft Amazon. purchase Amazon purchase. GrubHub GrubHub plus you're paying the. subscription for GrubHub and apple uh. subscriptions you know probably some app. thing in there and maybe you're paying. for hinge super Premium Plus extra and. Burger King in liquor stores and liquor. stores restaurants.

Home Depot 30 bucks that could be good. that could be bad album I was expensive. Dairy Queen I'm not gonna go through all. these but Amazon Amazon this is. constantly throughout here and going to. a lot of different markets like Walnut. Market 345 is that bang Walnut Market. 345 probably yeah Chipotle Microsoft. subscription uh Microsoft purchase of. some kind this is you're just going in. man you're just spending all this money. and you're doing this. you're doing these bang purchases when. you have negative money in your checking.

account. this is a failure all around when it. comes to money management yes. yeah it doesn't look very good I just. want you to be able to recognize that. yeah I would say. um it feels like I've been living my. financial situation I've been living. this way for a while and I would say. probably this year it was a while. um. forever I suppose that is a lot yeah so. since I've been working.

um. you know like I get the money and then I. just like I have it to spend and then I. spend it and then there's really nothing. left over. um I would say this year I had some sort. of uh Epiphany that I need to be. preparing for retirement and be having. some backup money in case something. happens. um and I don't have that right now and. uh I've been watching your channel so. that really helped me put some things in. perspective as well what was the wake-up. call was it the channel or was there. something else.

uh well I'd say a lot of it was actually. my job so you know I'm going to people's. houses to sell water heaters and hot. water is kind of you know nearly a. necessity I mean you can kind of get. away a little bit but I mean you need. out water and there's a lot of people. out there who are you know elderly and. they are in positions where even if I'm. essentially giving it away to them you. know they they can't buy it and seeing. that firsthand I'm like man. I feel like I'm gonna be like that if I.

don't change something. yeah absolutely well I'm glad that the. fire has been lit under the now what. most people struggle with is adjusting. their lifestyle they've just been used. to forever to actually fix their life. yeah you think the fire that was lit. under that real real world experience. that you witnessed was enough of a. weight up call for you to actually. address things in your life. yes I do okay. good doesn't look like anything's.

happened here because you know the. statement pretty goes pretty much goes. right up into a couple days ago yeah so. yeah I think it just came out you just. haven't. started this no okay why have you not. started self-addressed we're just. waiting for this I know I think the. realization came like very recently. um and I haven't. um uh I guess there's probably some. purchases recently that I shouldn't have. done.

um I I need a plan I think is I don't. have like a plan made out in my head and. it's hard to start going towards a goal. blindly. sure. let's take a look at there's a joint. account there is yeah you're married no. um me and my girlfriend live together. um and it's easier for us to. our our split bills like rent. um electricity Etc it was just easier to. know what that amount was and just put. it aside.

and just have an auto draft out of that. account. okay I mean if if it's like the shared. things like rent stuff like that as long. as it's not like shared debts and it's. not like truly sharing all of your money. together right now before there's like. that legal like I have our own accounts. that we use yeah every day yeah your. negative account yeah. so you put in. I think this was yeah this was you 1300. bucks.

I mean that's a lot of your normal. you know your average money Four Hands. is that her money yeah so she she. actually has it come out of her paycheck. and directed go directly into that. account just so she doesn't have to. think about it you put it in a similar. amount but you. oh wait oh there she is so it's pretty. cool I think you put in maybe about 100. more yeah I put in a little bit more um. I pay for the TV. see okay what is this because that is.

financed. yes so you finance it together no so who. is it under it is under her name and I. pay for it. all of it yes why why is the finance. under her name it's helping her credit. and you are the one paying for it if you. were gonna stupidly Finance it in the. first place and pay for it why not just. do it. um I tried to do it but I could not. qualify for it. oh my gosh. yeah I've had um why is she not paying.

for it uh because I'm the one who wanted. the more expensive TV why don't you just. save up and get the TV you know it's. it's just. not even on your level it's just an. inherent risk on her level. that you are paying for something. financed right by her it's a it's a 70. sorry 75 a month payment. for 24 months. um 24 months is a long time and guess. what people break up not that I I think.

that's happening I certainly don't root. for it but I would I would um. obviously I don't. want this situation to happen but I mean. I would skip paying one of my own things. before I would not pay that because it's. not under my name. now you better. you better because that's rough and then. we have a chewy subscription that you. guys are sharing so you guys are sharing. things and what what is This Global. exchange payment that is a gevc stands. for Global exchange Vacation Club it's a.

um. it's a where you it's like a. subscription and you get discounts to. hotels and resorts can't afford a hotel. resort it doesn't make sense you can't. even get a TV cancel this dude that. makes no sense or just have her pay for. it I don't know her financial situation. what do you mean. it's 156 a month for three years well is. this like a time share it's similar. you get Cokes in at this. we uh that's a lot of money on a monthly.

basis yeah and we get a it's a 20-year. membership oh. um. we've used it so far we have used it we. we've got a few free vacations that we. get. um stop free it is not free no um when I. was looking at the and you're locked. into this on a monthly basis for three. years. who's hold you into this how'd you get. into this how'd this happen. um it was a we won a cruise at Six Flags.

by spinning a wheel and then they had us. go to this seminar yeah I'm sure they. did and uh luckily we were able to. um. get the price down from what they. originally trying to sell from. you get the price down on your pieces. that you're selling so they feel like. they're getting a deal so they sell it. easiest people to sell to are salesmen.

fun fact. um you know we asked some pretty hard. questions to the guy and it felt like we. were making an informed decision and I. understand it's an unnecessary purchase. unnecessary purchase but that's also how. they sell the ball to you because you. feel they make you feel like you're. getting a discount on that you're making. an informed purchase there was uh there. were things that. um the salesperson did not say to us. truthfully that we found out afterwards. unfortunately for these things and we. went in. um.

under false pretenses a little bit what. is the Synchrony Bank of 82. that is our mattress. financed matches Finance mattress you. didn't tell me about that what is this. holy forever okay under who. um that is under both of us. C you also told me you guys didn't have. any shared deaths that just shared dead. um it has recently been removed from my. for my credit what does that mean.

because uh last month I was discharged. for chapter seven. oh. whoa whoa. that's when did that happen. um this was for a restaurant that me and. my mom opened in 2019. yikes too yeah that's why I couldn't. qualify for the TV we will be talking.

about that in a second I did not know. that and you guys share in LA Fitness. subscription yep. ATT so your rent this is split 50 50. yes so your rent's about 25 of your post. tax yeah I think it's on average 18.50. uh water is included in our rent so it. fluctuates a little bit I don't like. that okay so so it's falling off your. credit. that's right it is still in her name.

so who are you paying for it yeah we we. split the payment in half for how long. um it has a thousand dollars left on it. oh. I actually am not sure probably like a. year yeah we're almost it is almost done. yeah my Year's a long time yeah cool if. you guys broke up. gosh. we've been together five years We're not. gonna break up that's not how that works.

but again I hope you guys don't I'm not. rooting for that I just have to take in. that calculated risk and you guys have a. service here for 10 months ten dollars a. month. so. tell me about this restaurant Dude tell. me. um. have you heard of um. mighty fine so I was a manager at mighty. fine for a while burger place yeah. um. they I I was managing there and my mom.

had an idea she's always wanted to open. a restaurant and she was like well I. know how to handle the business side but. I don't know how to actually run a. restaurant so she was like if you wanna. help me with that then we can be. co-owners in it. so that's what we did and I. financed most of. getting that started with credit cards. oh.

yeah. okay how much did you borrow. um. I don't know how much I borrowed. completely but the the settled debt was. about a hundred and twenty thousand oh. it was most of them in credit cards yes. oh. good night and your mom was chill with. us I it was yeah it was her idea. at the time that's open and where it was.

in Leander it was called AJ's well no. one lives in Leander well why would you. open a restaurant in the middle of. nowhere we. advertisement by the city because they. were trying to expand in front of the. yeah because no one lives there. people it's usually a bad sign yeah but. no wonder so that's usually a bad sign. of like the cities giving you free. advertising well they were trying to do. it they were they had this whole plan. about expanding like right in front of. like Town Hall I'm sure they did a bad.

sign. there's been a few others they're. desperate enough okay so what was that. what was the restaurant it was um like. new American. um you know your your typical like. burgers steak. um you know chicken dishes more like in. the 20 range. it's kind of expensive yeah I mean it. was it was uh more of an upscale I mean. not fancy but you know not. not like a necessarily budget night out.

well. and walk me through that so we opened it. so we opened it in about three months. um this is sorry not three months three. weeks. um it went from it was an abandoned. business for four years. um and my mom talked to the. owner of the building and he agreed to. let us open a restaurant in there. um and not charge us rent for like three. months.

so we went in. um completely redid the inside repainted. got new equipment trained staff made a. menu and opened three weeks later. we were doing okay. um you know most restaurants don't make. a profit. in the first nine months. most of the time most restaurants fat. right it's true and then the ones that. don't usually don't make a profit you. know for most most of the first year. um we were making essentially enough.

just to get by like to pay everybody and. order food and pay on your hundred eight. thousand dollars of credit card yes okay. um sorry I lost my train of thought it's. okay you opened it you're able to scrape. by. yeah so. we were doing okay. um what really. caused the downfall was my mom ended up. in a divorce and her name was on the.

bank account that we used. um and her now ex-husband put a. temporary restraining order on her and. it locked the bank account so we were. not able to pay anybody pay rent like. anything. um and by the time you know it covered. was starting so the quality was the. beginning of that yeah and the court. date was pushed out like a month and we. were like you know we can't hold. employees and not pay them so you guys. get PPP no this was before that happened. oh wow okay yeah yeah so we were.

basically we had our hands tied we had. no access to any money. um and our startup costs would have been. so high to rehire everybody and we had. ten thousand dollars of food in the. fridge that was going to go bad because. we can't open for a month. um that we were like we just have to. close it and then you immediately. declare in chapter seven no I didn't I. didn't start filing until the end of. last year September. and it's been a long process yeah.

probably traumatic process. yeah it was a lot of steps it's one. reason I that's some people ask why I. don't quickly jump to suggesting. bankruptcy for people on here it's. because I would rather do everything and. tell that because so the the thought. part well I I had two lawsuits against. me for not paying one from our food. supplier and one from our supplier for. the restaurant equipment yeah. um. the lawsuit itself both of them together. was thirty thousand did wait so you. didn't.

did you have debt to them outside of the. credit card because I thought you paid. yes those yes so we had a loan through. um. the company that we got our equipment. from. um to pay it was about 20 000 for the. equipment man you just went full that. yeah well at the time I didn't really. know the risk that I was taking. um yeah because you were what 22 yeah. yeah. um. you know I just was trusting that my mom.

knew what she was talking about and all. you did was work on Mighty Fine and it. was fine but that doesn't equal. yeah kind of business. yeah a little a little too hopeful not. enough knowledge. so did you have the card debt when you. started filing paperwork. I did okay so the car I still have. um in the car that the card debt I still. have however I did not reaffirm the debt.

so I have what's called retain and pay. um which means it's no longer being. reported to my credit and they don't. actually ask for statements. so I technically it says I have zero do. which is not true. um they we basically have an agreement. due to a technicality in the contract. where I can just continue paying and. they don't want to repo the car because. it's more trouble than it's worth sure. but if you stop paying that well I don't. know actually. um how far like how long I'd have to go.

without paying for them to actually do. that. is it usually like. ah crap. I always suck with the right off the top. of my head I think it's five months old. traditionally it's like five months six. months. ah it's right we're not planning on. they'll correct me I'm not planning on. not paying it for five years I'm making. regular payments on it well you didn't. send me well maybe it's because there is. no statement because yeah I can't I. can't pull them up my account has been. changed to a different status what is. your car it's a Cadillac xt5 2018 T5.

xt5 yes it's a SUV and when did you get. it I got in April. okay. so a year ago essentially yeah interest. hi. um a little bit under 15 percent. [Music]. minimum monthly payment. 6 18. oh. that's a disgusting minimum monthly.

payment for your income disgusting. disgusting okay and. loan term. 72 months yep there it is. oh and. I kind of wish this was on your credit I. know actually I I called them literally. at two days ago. um because I was trying to get my. account put back into the regular status. because I had been discharged in their.

bankruptcy Department told me that they. because of the way that it was filed. they are not going to put on my credit. so I have about since September it. there's no payments that have been. recorded even though I've been making. them yeah because if you're gonna have. this we may as well let it positively. impact your credit right. hey okay uh let's identify it. then it won't be on my credit. well with what are your credits at today. and where interest rates are today I.

don't know if that would be worth it. maybe it would be you have like four. years left on it in general maybe you do. refund so maybe I've been thinking about. Credit Karma is saying I have good. chances of refinancing it to 10. ideally if I refinance it to a 500. payment I would continue making 600. payments. um 500 okay because you'd keep it at the. loan term. um well. I I could do a shorter term I'm not sure.

how many miles on it uh 77 000. and what is the loan balance. you probably don't have 1700 and no. sorry twenty seven thousand eight. hundred. that was just checked um. I know I'm like oh. let's pull up that Credit Karma then. let's take a look yeah okay let's see. what's let's see what's going on in. there. oh all right didn't know what we were. getting into today.

haven't had a bankruptcy on here I know. that's why part of why I wanted to come. on you know I don't know how many people. out there. might be in the same position I know. it's Unique for the show I just I feel. bad that for you had it been. what is this what do you have this. that is paid off. I know but with the money that this. would have cost iPhone 14 pro Max. again I got a really good paycheck at my.

last job I know that really good. paycheck should have gone to this car. yeah yep we're in the 500s. [Music]. refinance in your car alone from GM yeah. I'm really surprised because Credit. Karma has like a guarantee where you can. like uh well it's under a few things. where they say like you can do this and. if you don't get approved for it yes I. just got a credit card that way. um because I have as far as you. shouldn't have a credit card.

I'm not I'm pretty good at not using. credit cards themselves negative balance. on checking account in what place have. you possibly demonstrated you're able to. manage money in any way whatsoever I. wouldn't put a high balance on a credit. I don't trust you nope that's fine. what I I had you know tens of thousands. in credit card limit before the. restaurant opened. um and I had yeah and then you maxed. them all the [ __ ] out not yes but it. wasn't on it wasn't on you know daily. spending I just want to buy it what. place in your mind have you been able to.

show historically that you can manage a. credit card. the last credit card I had I had a. secured card while I was filing. bankruptcy that went away because I. obviously because I filed you know all. these suck with the interest rates and. everything because even so even if they. refinance because they're all going to. be 72 months 72 months 84 months please. do not do that because if you do the 84. months you'll pay a total of 20 000 in. interest and for the 72 months you'll be. paying around ten thousand dollars of.

Interest throughout that disgusting if. it's paid off in this thing it is which. it won't be we'll talk about that. ideally 16 months I'd like to just you. know quickly get rid of the car and get. a different one. wow what the well you have to drive a. lot for your work I get a company car. my John vehicle. it's in really good connection XTS xt5. my ass my five look like an S I'm cool.

so I wanted your opinion on the cost. what the cost of a car should be I. suppose you know in my head I'm thinking. if I were able to come in your sale. price. right for a new car that um you know. because I want to get rid of this and. get into a cheaper car you have a. company car. I can't use it for personal use. okay is your girlfriend have a car yeah. okay then for personal use you only go. with your girlfriend places until you're. out of this death spiral so you'd.

recommend no car for now well. you'll use your company car stop at HEB. on the way home. hmm. and then if you go places you go out to. eat and stuff like that you and your. girlfriend go I mean you don't go out. there I mean you don't spend money going. out to you she can pay for it but. no no no xu5 I found um sure it's a five. xc5 there is an XDS it's a different. it's a different uh it's not even.

popping up as an option. it should be on here as well like. XT. 5. um there's you know there's uh xc5s that. are the same trim level same age and. within 2000 miles being sold to. dealerships for uh 27 000. so obviously. I couldn't sell it to the dealership for. that much but I think I'm pretty close. to what I could sell it for on the. private Market private Market yeah okay. well I would immediately put that on the. market today okay today cleaning up.

getting on the market try to sell it for. as much as you can let's say you only. get you know 25 000 for it still. whatever boom put it towards it I don't. even care about refinancing at that. point boom put it towards it and then. you're just not spending anything other. than your rent and groceries and. utilities right uh until you pay off the. other few thousand whatever's left over. at that point and then it's done it's. done it's done forever I'd like it to be. done it's done and I think you should be.

able to do that with just in a few. months if you sell this you know maybe. you sell for twenty thousand dollars. then still yeah you put your budget like. 300 for groceries then you have your. rent and then you know that's pretty. much it what do you. yeah you know I was thinking. um potentially due to the credit. situation and not being reported doing a. voluntary repossession for GM Financial. and letting them just take it and I mean. if it's not being recorded on my credit. anyway then that might be a way for me.

to get rid of it without you know being. penalized will that fully take care of. the loan. I don't know I guess I I don't know that. either you would uh if not I don't know. I feel like I don't know I don't have. the answer to the question yeah. unfortunately. yeah maybe but assuming not. just do this paid off in a few months. 300 for groceries pay your portion of. the rent pay your portion of the. utilities don't spend a single Sense on. anything else outside of that.

that's hard that is hard yeah. be a big boy you can do it I believe in. you 25. you ordered it out. [Music]. he didn't act like it for a few months. because it's worth it the. that a few months then continue the. strict budget you know you have your. portion of the rent you have your. groceries let's just say you have an. extra two thousand dollars left over. what I would do for five months not. going out to eat not having fun unless. your girlfriend's paying for someone. else's paying for it you can have fun. but it's pretty fun you know just create.

your budget for what is best in each. category just no fun spending and. cutting back on Necessities where. possible and healthy then over the next. five months you're putting two thousand. dollars aside on average. into a high yield savings account get. just like ten thousand bucks as a. starter emergency fund saved up at least. have that because it's an emergency that. you don't have an emergency fund it's. risky. yeah. um. I so I'm not planning on staying at my.

current job. okay okay so I the company vehicle is. not going to be a permanent thing okay. and if you take your reason you want to. leave. yeah I'm well I'm in the middle of. recruiting for the Austin Police. Department you're already in the middle. of it. yeah yeah. ideally it would start in May so can. your girlfriend drop you off to work. potentially I'm gonna get you to a place.

where you can get a car but you need to. at least have like seven months where. you don't need a personal vehicle it's. um I'm gonna be going to. um kind of like the. east side of the airport. um. it's not that far of a drive it's like a. 15-minute drive from where I live. will your girlfriend take you I don't. know if uh she'll be able to what does. she do she is um. um she's in product development for. furniture company so she works she works.

um about five minutes north of where we. live okay so it is in the area you guys. can figure it out. you guys gotta figure it out or you. could take the bus dude I know you could. take if you're 15 minutes at the airport. I guarantee you can take the bus to the. airport. guaranteed. yeah then that is worth it. I don't think you're gonna do this I. don't think you're gonna do this I don't. think you're going to do what is. necessary I don't think people are in. American culture willing to sacrifice. going from a car to riding a bus for a.

few months just the better the rest of. their life. I mean I'm willing to make serious. changes. um I know I have to because. um well especially you know if I end up. doing the police academy I'm going to be. taking a pay cut so. um I need to also dude if you're willing. to grow a pair sell this thing pay off. the other couple thousand bucks you know. whatever it takes then save up ten. thousand dollars as quick as you can I'm. thinking like seven months if you go. crazy which you should because this is.

crazier yes. then at that point what you can do you. determine your saving level of how. quickly you want to get to another ten. thousand dollars to get a car but you. can get there you can continue going. crazy do an extra five months of two. thousand dollars saved up on a monthly. basis and you can buy ten thousand. dollar car in cash because I want you to. avoid debt if I wouldn't use the credit. card you have but I don't think there's. going to be any talking you out of that. so there's no point of having that. conversation but. in another five months from there you'd.

be able to buy a ten thousand dollar car. and then you can start investing you. have an emergency fund you have a paid. off car you can start investing and. stuff like that and that's great we want. to get you to that point but you have to. make the sacrifice now that is necessary. now ride the bus ride with the. girlfriend to what is actually necessary. to improve your life I promise a year. from now a year and a half from now you. will feel so good instead of. trying to pay off this car or trying to.

save up for a car right now instead of. an emergency fund and having this. process take twice as long three times. as long four times as long. temporary sacrifice. Thomas it's worth it right promise. um. I don't think I was expecting you to say. to go without a car for that long. um Americans are addicted yeah I mean. it's not impossible I know for a fact. you can ride a bus though in the city. there are yes I get stuck behind the. buses all the time yeah yeah.

it's a more effective way to use. for humans to move anyway my car. insurances 215. so that's perfect that. was as much money as you can put I want. you to get to a place where you can have. a car because essentially we're forced. to have one in order to live in our. society. here but. you'll get there. it'll just be after this is paid off. after you have ten thousand dollars. saved through an emergency fund and. after you then save up. you know I'm thinking like ten thousand. dollars to get a car if you want to do a.

five thousand dollar car that's great if. you want you know go to the private sale. take it to a mechanic make sure that. they agree on the value and that you. know you're making a good decision it's. not just going to break down and it's. not bad for safety you know five. thousand sure ten thousand is what I'm. guessing. okay. yeah I mean that was the range that well. I was thinking more like 10 to 15 000. but I suppose who want to save up to 15. 000 that's fine but you're also falling. behind on retirement. yes so I'd rather you just get the. cheaper car start saving for retirement.

start catching up and then once you're. to a place where you're caught up you. can upgrade in cars we're not saying. you're going to be living in a town or. you're not gonna have a ten thousand. dollar car for the rest of your life. right we're talking about taking. temporary sacrifices here and there to. catch up because of the massive mistakes. you have made you're just owning your. past. all right you made the choices yes yes. so are you willing to actually deal with. them uh yes I am okay and you don't have. to support yourself with a fifteen.

thousand dollar car right now. you don't do that you're You're A to B. right now you're a to B yeah. yeah in a few years you can get yourself. a nice car you'll probably be making a. good amount of money police people make. here make good money here. as far as privacy yeah yeah so yeah. you'll be able to get it it comes with a. good benefits they do yes so. well I mean I and touching back on the. credit card I mean I I really had to get.

a card because my credit is pretty. stagnant there's actually I don't think. there's anything being recorded on my. credit I know and I love a good credit. score as much as the next person there. is a level of importance the importance. of you actually having. well-managed money and not go into debt. is far more important than you having a. good credit score and you have. demonstrated in the past a few times. negative balance on your checking. account just at the beginning of this. month that we're recording and. accumulating over a hundred thousand.

dollars in credit card debt two major. examples in recent history of you. demonstrating you cannot manage money I. would love you to have a credit card. once you're able to get on a budget that. you actually follow use you need a. budget which is an app where you use. mint I don't care use Dave Ramsey's app. I don't care any app is great just use. it budget use an expense. yeah Excel you know what I'm yeah you. know yeah use anything yeah. yeah just budget once you can.

demonstrate it then you can do credit. eventually okay because yes you're. losing money with debit cards but you're. losing more money because you don't know. how to manage money. does that make sense is this yeah I mean. fair enough I mean I clearly I know that. there's a an issue here a big reason of. wanting to come on here was getting a. second. you know hearing somebody say what the. problems are to help make those problems. real versus just in my head you know I. need to fix this uh it's not that big of.

a deal you know. um it it helps put things in perspective. um the car situation is going to be hard. but I think I understand what you're. saying about. that that's probably the best decision. to get rid of it yes dude I promise in a. year and a half that year and a half. sacrifice is going to be yeah so worth. it for the remaining Decades of your. life versus stretching this out for a. few years yeah well I know something's. got to happen with that that's my I I. hate paying that yeah bill. it's so worth it I promise you yeah.

you'll be so excited when you're just. out of this and you have a paid for car. and a fully funded emergency fund my. goodness your life will be fantastic and. then you'll start investing and you'll. be well ahead of people eventually right. now you're well behind where you should. be right so do what's necessary so I. don't want to be too judgmental because. everyone takes things you know different. ways and presents themselves different. ways but just with the way you are. showing yourself here taking in the. information I have low confidence and I.

just need to say that as a very open and. transparent person okay you could just. be presenting yourself. with how you are and maybe you're fully. taking this in and you're ready to just. go crazy which is awesome which is what. I'm hoping. I just have a little confidence right. now. will you do this what would you do I. want to hear from your perspective. knowing you what will you actually do. there are 100 going to be Financial. changes that I make. um. I mean starting I mean marches tomorrow. so literally. ASAP.

um. I. I don't want to say that I'm for sure. going to get rid of the car but I do. um want to either pay it off enough to. just sell it and then get a cheaper car. I mean I. I've never not had a car it just sounds. kind of it sounds yes it's very. anti-americans because maybe that's just. something I need to you know get over. um about how I feel about it right now.

yeah you're acting like a toddler. without his yeah you know sippy cup. they're fine you'll be able to survive. I'm not disagreeing no I'm not. disagreeing you know well how crazy. babies go when they all of a sudden. exist without a pacifier for a second. they've lived with it their entire lives. oh my goodness the world is ending they. don't have it to suck on. you can live without a car in a major. Metro with public transportation that's. sucks but it's halfway decent in the. area I know you're living in the area.

you have to go to well I'll I'll say. this I'm definitely gonna. um when I go home today talk to my. girlfriend and we are going to discuss. what that would look like if I were to. just give her the car okay well the only. say she has in it is you know whether or. not she'll drive you right yeah other. than that there's nothing else this is. all you do I think if she can actually. do that and it's not too much of a. burden on you know whatever she needs to. deal with with work then I think that. you know there is a a children's video.

because it will be a burden on her but. if she fully understands the extent of. the mess you're in and what you need to. do and how temporary the sacrifice is. for the remaining Decades of both of. your lives assuming you get married. she will totally be on board if she's. immature adult. well. she will be seeing this video. well and speaking of that though I go in. on you and I go in on everyone just to. make sure they understand the extent of. their debt and then I'm disappointed in.

different ways if they're not going to. follow through but thank you for being. here because you're putting your example. on display for other people and other. people you know with similar situations. you know maybe people who have gone. through bankruptcy might be going. through any kind of bankruptcy. um you know they relate to a situation. hopefully it helps so thank you for that. of course I I hope that there's people. um well no I don't hope that there's. people in similar situation but those. that do I hope they um continue to learn. from these videos any final thoughts.

um. I hope I can make it without a car. for Joey he's obviously climbing out of. a really big hole and you know going. through bankruptcy that's something I. wish no one would ever have to go. through but he's made some big mistakes. in his life and I am a little nervous. based on those mistakes and based on. just where the checking account was at. the beginning of this month I'm nervous. with where we are going but uh has to. definitely get out of this card that has. to definitely get an emergency fund and.

it needs to save any money for. retirement so right now Hammer Financial. score just looking at where the debts. are right now it's gonna be three out of. 10 which is actually not as bad as I bet. something people are expecting but he. only has that card down I think he can. get out of it if he actually does it so. make sure to check out all the fun. things in the description like my. Instagram and Twitter and don't forget. to subscribe thanks.