25-Year-Old Spends Everything On BS | Financial Audit

my name is artier at kosaredi I'm 25. years old based out of Austin Texas and. this is financial interrogation. all right yeah so you are a follow-up. episode now for most people if they. haven't seen your original episode it. honestly won't matter because we're. going to give you the same kind of. financial audit as normal but for people. who have will determine if you have. um you know. I want to hear from your perspective. well actually first uh just for a little. bit of context and stuff like that you.

were in a position where you were just. recently laid off in the tech World. which is actually interesting because. now Tech is laying off all over the. place and which wasn't the case at that. time we still had a very strong Tech. market for probably like five months. after that recording and you also had. some weird personal loans for car stuff. yeah so one personal loan still there. gone good why but you just paid it off I. got a job I got like another job so once. money started coming in I just paid that.

off okay and your Runway was pretty. small too but you got ended up getting. another job unemployment helped quite a. bit because yeah absolutely unemployment. I got like 2 000 a month. so I only really had to pull 2000 a. month out of my savings account so I was. able to make it work I can't promise. you'll get two thousand dollars a month. for subscribing but I will promise that. you won't regret it and really trying to. get to 250 000 subscribers so please. feel free to consider okay so what is. your new position and what do you bring. in software engineer so my base salary.

is a hundred and fifteen thousand one. one five not one five zero. um I got a twenty thousand dollar. sign-on bonus. and then. um end-of-year performance bonus uh. that's gonna be like 12 to 18 so average. you could say 15. yeah that's end of the. year though so that's actually really. good because that you were like in the. 90s right previously ninety thousand. range with your the job you're laid off. with right oh that one that was paying.

more than 90 000. oh it was okay I was. paying like 90 an hour yeah oh okay yeah. it was good well are you happy with this. Trump yeah is it one of the major tech. companies or is it like smaller. um it's kind of like medium for the. previous position I wasn't deliberately. waiting for a medium tech company it's. just I got lucky yeah really okay so. looking back everything you clean that. up where would you say your financial. position is now.

it's better than being unemployed so. yeah it's better. any issues self uh assessed any issues. I feel like it's easy for anyone to say. yeah I don't have issues so and then you. know you do an odd on them you're like. dude you got a lot of issues okay I. don't think I have anything major I'm. sure there's probably some things in my. budget aren't perfect but I'm not like. you know going to debt or like blowing.

through my paycheck why did you decide. to get rid of this personal I'm glad you. did but what was like the kick in the. butt that you threw a big pile of money. towards getting ready because I had an. income like I got a job. but what made you uh instead of like. saving that money or spending that money. what made you think to put it at that. specific because the interest rate is. high it's smart to just get rid of the. high interest debt now if you have like. a loan that's two percent then you know. maybe it might be better to take that. money and investors what was the. interest rate do you remember it was. something like 10 yeah okay yeah it was.

I'm very glad you did it was dumb I just. couldn't get that regular auto loan for. some reason I don't know why yeah yeah. and the car is a Toyota Camry uh 2018. and all paid off no debt on that paid. off correct again I don't want to like. pretend oh I'm self-made I think in the. previous video I should have um. specified hey my parents did help me. um I think in college my dad got my. parents got me the car so they were kind.

of paying for it then most it was mostly. paid off when I got it so I just kind of. want to make that clear I don't want to. be like yeah you know I did it all. myself. yeah that was definitely a topic of. conversation the last time was. um you know maybe potential entitlements. and stuff like that because we also had. conversations around you not willing to. work in other job in the meantime like. even if it was for 15 bucks an hour it. almost felt like you were looking down. on it no I definitely don't look down. upon folks who do work those jobs.

um so in South Asian culture if you. graduate the degree in something it's. generally a bit more acceptable to like. you know live at home with them and. relax financially. um you know my parents were okay with it. they actually encouraged me to just. focus on getting a programming job I. wasn't like leeching off of them or. doing anything underhanded with them so. I just want to make that clear now I. understand. now of course. um you know if they're not in a position. where they can financially support you. then they'll say hey can you get a. part-time job my parents are like no I'm.

just focus on getting a programming job. I wasn't you know my mom wasn't coming. up to me and saying hey can you work and. I wasn't I wasn't saying hey go [ __ ]. yourself mom I wasn't doing anything. like that they just and that's their. choice that's their money and there's. absolutely nothing wrong with that and. you're able to spend the time applying. for jobs. um okay yeah and I understand a lot of. you out there probably don't have that. Advantage I realize that but. you know your parents might have. different views my parents were fine. with it well let's take a look at your.

money see where things lie see if well. we already know some things have. improved but let's see if anything's. stayed the same or slip backwards we. have a few different checking accounts. yeah I primarily use Alliant but yeah. I'll have a few different checking. accounts we'll start with the Wells. Fargo and there's a beginning balance. 2000 then 125 was taken out ended uh. just below 2000 and really it was just a. Scott purchase of some kind yeah voice. acting coach. oh yeah okay so you're doing. is this new but this is new.

um I I mean I've been trying to voice. act for I've been voice acting for a. little bit but I just felt like I wasn't. making a lot of progress I was just. going and trying to do free jobs and oh. I was going on like websites and just. trying to audition for a bunch of small. projects because again I'm just starting. out I can't just go up to a major guy. and say hey give me a job I gotta I. gotta work my way up. um You Wanna Give us some voice acting. yeah so I just wasn't making as much. progress so I heard a voice acting coach.

um I've learned a lot from him I've. gotten a lot better is that what you. like want to do. it's one of the things I want to do so. more of a side hustle and passion or do. you think that's something you want to. do a career in. I mean I'm not going to just throw. everything away and try to pursue it. right it's kind of a balance um. you don't want to work at a job that you. absolutely hate even if you make a lot. of money but at the same time do you. hate your job no I don't hate my job but. like it's just a balancing act right. yeah you want to you want to pursue what. you want to do but you know you also got.

to make money yeah yeah absolutely. so yeah for now I'll just try to make it. a side hustle if it grows into something. big great right yeah then we have yeah. so this was your main one right that is. my main one yeah yes that's definitely. where the majority of the purchases were. now this is a good thing we went from. fifteen thousand four hundred fifty two. dollars to savings and we deposited 4. 639 bringing it to over twenty thousand. dollars that sounds like a fully funded. emergency fund to me how do you feel I. save 4 000 usually if you deposited four.

thousand I don't know yeah in total I. think I saved 2300 or something what. that's what you need a budget told me I. don't oh okay very cool and how long. have you been using you need a budget. um I mean I was using it when I first. met you yeah in the moment I mean even. before I got my first job I was using. YNAB or you need a budget because it's a. good thing just to learn how about you. use it pretty aggressively like. constantly okay yeah pretty aggressively. like usually every few days I'll just go. through my purchases categorize them.

that way at the end of the month I I. don't have a massive log of purchases. and I'm just like wait what was that. thing I bought like 30 days ago and then. in the checking. 5702 starting balance good balance for. checking account I think right around. five to ten is good depending on the. person and their life total withdrawal. is. 7638 deposits six thousand eight hundred. forty five so more taken out with ending. slightly below 5000 for the anti-balance. but if you know a lot of that went into.

savings that's okay and here there. wasn't too much purchases too many. purchases that were like you know crazy. you're getting some Japanese food and. some super chicken. and we're having Uber trips and a flight. potentially it looks like well no that's. kitchen United and then withdrawal perch. and Genuine Joe coffee Amazon purchases. Golden Acres Amazon Amazon how Amazon. Adobe Creative Cloud which you know.

hopefully you're gonna return on. investment or at least at some point and. then some practical shooting. going. shooting all the time practical shooting. I make sure not to like let it no. destroy my budget I still try Okay save. money taking tolls yeah Google storage. and yeah again I'm here uh in terms of. like everything that's on here that is. not half so. I don't know it's it's a decent amount.

of spending on one thing but nothing. crazy however if you add everything you. spend up together then it becomes a. little more but relative to your income. that's what matters we have a Wells. Fargo checking before we get into where. the majority we're spending on which is. credit cards Wells Fargo checking 249. starting 260 deposit only 10 taken out. ending just under 500 and this was yeah. it's because I didn't have a high enough. balance it was so dumb I had 499 I was. like and then it like I saw okay wait I.

have a ten dollar charge yeah so yeah. that was just. sucks. then we have Chase Sapphire Chase. Sapphire is this your is this your main. main boy I recently got it I make sure. to pay it off every single month the. reason why there's so many purchases on. that card is because I'm basically. routing my purchases through it because. I want to get those Airline points. because I spend four thousand dollars on. that card within the first three months. of opening it you get a lot of air I'll.

get a lot of Airline points so that's. what I'm doing for sure yeah doing some. credit card turn and then you got a. thousand 368 000 purchases which in. general is a lot depends where it goes. okay fun fact they're all X's x's mean. bad so you did just blow it on things. that weren't necessary I mean so in. order to try to get these points. you're spending on things that don't add. anything other than just fun there's. two grocery trips three yeah I got.

covered earlier remember so I had to. like get a bunch of electrolyte drinks. and like a bunch of chicken noodle soup. to deal with it. okay you don't have food to make. what you didn't have food to make or. grocery store pick up food to make but. like chicken noodle soup and electrolyte. drinks are mainly what helps that's what. I read if it helps your mental health at. least then it helps so this is a lot of. spending I'm not gonna name everything. off but we'll throw it on screen you're. going to some theaters you're eating.

things out hopdoddy yeah a lot this. month definitely ate out a lot of Amazon. purchases and eating out eating out. eating out Taco Bell getting coffee. Alaskan Air Alaska Air and some sushi. and Postmates or delivering food and. Waffle House and Amazon and more Google. purchases like Google play something for. 4 32 and then again out of all these X's. there's only three purchases that. weren't. [Music]. having fun four purchases a couple HEBs.

and then a parking well yeah a lot of my. basic stuff like rent that's on auto pay. for um my debit but yeah all my other. purchases like eating out I was putting. on this card right um I think you get. more cash back on like eating out so if. I ever ate out I usually just use a. credit card instead of debit it didn't. make me spend more money at least I like. to think so. well I don't know that was a lot of. money that was eating out more than once. a day yeah it was a lot yeah and then if.

you combine that with the other eating. app that was from the checking account. you know now it's stacking up yeah and. then on the Wells Fargo Visa 21. was the previous bounce and you know you. paid that off you don't hold any. balances on here right nope ten dollars. of purchases and it was just your. Spotify subscription yeah I just have my. Spotify subscription on there I pay it. off every month right and then we have. what car is this it's an Express card. not American Express but like the. clothing store yeah okay so you started.

Express three times yeah 282 dollars of. purchases so you definitely spend a lot. of money yeah definitely spend a lot of. money I suppose so yes. what's your paycheck my take home or. like before yeah take home all right so. after taxes. I think it's like close to seven. thousand a month. okay seven thousand now oh the rent it. rents just under thirty percent of your. take home so yeah it's a it's at the.

higher end but it's it's uh under 30 so. yes my lease is going to expire in April. so I'm not renewing that I did where you. going I don't know I'm thinking maybe LA. or if I stay in Austin I'll go for a. cheaper place I'll find something for. maybe 1500 I'm sure you can find a. decent apartment if you go to L.A you. ready to change your budget because. you're going to lose a lot in taxes and. lifestyle higher if I go to L.A it's. yeah I'll uh to pay an extra 800 in. taxes I think because of state income. tax.

um then rent is gonna be higher yeah. yeah. so in terms of your budget categories. again we're throwing the sunscreen. majority of these These are fine. uh you did have 467 dollars to travel. which seven thousand dollars take home. not crazy 156 of guns not crazy acting. and that's like the voice. stuff uh backstage backstage. subscription that's one of the things I. pay money for. um but yes also voice acting as well. okay so really you're not going crazy I.

like that we put twenty thousand dollars. in the emergency fund and I like that. you have. good money checking account. you are spending a lot on fun but it. fits within the bad budget categories. I said this is not an obligation not an. obligation but it's a nice to have it is. so for food I try to keep it at like 500. including groceries and eating out.

that's. well I didn't add that up right there. but that looked well over 500 yeah that. one I spent like 610 for January unique. month yeah okay it's a running joke on a. like on this channel I guess that was a. unique month what do you have in. retirement retirement so right now I'm. just matching the 401K what's the match. it's like three percent it's something. like that I I make sure to match. whatever percentage my employer offers. okay do you know what's in your 401k.

right now I just want to put more in my. savings account why there's 20 000. that's a good emergency fund well you. have to remember. um after taxes my sign sorry. after taxes my sign-on bonus you know. remember before taxes it was 20 000. after it was like 15 000 because there's. like a 22 tax rate on bonuses. so I just took that placed in my savings. account.

um. yeah but why are you trying to put more. money in your savings twenty thousands. good for an emergency fund so I'm trying. to get do you have a goal that you're. saving up for. or else it's just losing money. that is true inflation does reduce the. value of your money. let's see so I spent like okay so I. saved 23. well and losing money by not. taking advantage of the market as well. yeah that's true. um well you have to remember. um. the sign there's like a stipulation for. the sign on bonus like if you.

uh if you get laid off or something then. you have to if you get laid off before a. certain amount of time or something like. that then you have to pay that sign on. bonus back so I don't want to just spend. it I kind of really if you get laid off. laid off or the you look you leave the. position for whatever reason that makes. sense if you leave the position but I. think if you get laid off really I think. yeah I think that's. that's why I'm I'm just holding on to it. I don't want to spend that I'm just. that's interesting I might re-look at. that contract you sign okay maybe.

that's like just something I mean it's. absolutely possible but that's just it. just seems so. and we're in the world of layoffs right. now has your company done any rounds I. don't think so okay and I hope they. don't is it a tech company it's like a. consulting company they do like a lot of. college and Healthcare stuff so I think. that's pretty stable college and. colleges and Healthcare always you know. have a steady stream of Revenue they're. not as dependent on you know venture.

capital or I don't know colleges got. really hurt and have been fully. recovered from the pandemic okay. I mean I don't think there's any you. know industry that's 100 safe no there. isn't I'm just curious about that bonus. thing yeah. find out about that because that. definitely changes things if you can. confirm it if you wouldn't have to pay. that back where you're laid off then. absolutely. at twenty thousand dollars I think. you're good well let's see here I think. you could survive on three thousand. dollars a month.

it could be kind of tricky. why let me think yeah I mean yeah what. you are forced to do yeah is only like. two thousand dollars I'm giving you an. extra three thousand dollars for cash. and groceries okay if I remember on uh. like on my uh on YNAB my. Baseline obligations or like you know 3. 000 rounds so yeah I'm careful I could. probably pull it off but in your. obligations you also have things like. grooming and clothing that can be cut. and digital subscriptions that can be. cut as well so there's things that can.

be cut okay so I should or I should at. least re-categorize them so that they're. not yes important yeah tolls you can cut. you don't have to take toll roads to get. places quicker. uh you know public transportation you. can cut Austin isn't really a public. transit there isn't but it's in your. budget so clean Community yeah it's like. part of the bill for my apartment it's. like clean Community pest control that. stuff yeah definitely all adds up but. there's plenty of things you could cut. back here so that's why I think twenty.

thousand dollars is perfect because it. could sustain you for six months. just surviving while you're searching. for other things you wouldn't be having. fun but you're not supposed to be and. that's yeah of course you know when I. was unemployed I didn't go crazy I made. sure to just cut back on stuff I wasn't. like buying guns or anything yeah like. that yeah. so after so. from your previous employer or employers. have you rolled over. any Investments any 401 case so for my. previous employer I was just putting. money in my savings account that was.

like so you don't have retirement you. have like two thousand dollars in. retirement. probably but like I haven't been working. very long you haven't yeah but do you. think I should uh divert that money for. my savings account and Route it to my no. no we're gonna leave it there leave it. there the money that I'm going to put I. guess yes yeah max out your Roth IRA in. fact you still have. about a month left to max out last year. uh. last year's Roth IRA so okay I maxed out. six thousand dollars and six thousand.

five hundred dollars for the next year. because two thousand dollars retirement. at 25 I know a lot of people are gonna. be like I haven't saved anything uh by. then either just to get to where I'm. assuming you'll want to be by your 60s. you're already behind so it's time to. catch up. three percent into 401K I think if you. want to just be truly simple about it. and not think about it I would max out. your Roth IRA on a yearly basis and then. just bump your 401k to like 10 15 Okay. so.

basically take the money that I'm. normally putting into my savings account. every month. um or I mean before before a month is up. I guess Max out my Roth IRA and then um. oh you don't have to no you can just put. no no to take advantage of um uh of. course I'm blanking on the term now that. we're filming uh but instead of putting. in a lump in it would make more sense uh. to dollar cost average by just putting. it on a monthly basis it was easy math. when it was just six thousand dollars. but I am happy it's six thousand five.

hundred dollars now so what would that. be that would be. 641 okay and 66 cents. a month that you just put towards your. Roth all right yeah I can probably do. that I can definitely do it you can. definitely do that seven thousand. dollars I'd punch you if you can't do. that if you say you can't do that so. easy boom and then I would just bump. 401k to 15 yeah okay yeah I'm just. trying to make sure I know like what to. do first like the proper order because I. looked online it said first to get rid.

of high interest debt take care of. yourself which you don't have yeah. immediate obligations and then when it. comes to like saving money build up. emergency funds would you have yeah and. then match your employees 401k. contribution and then max out raw die. right then go back to 401K yep and. there's also you could slightly switch. it up if the 401K is Roth based as well. uh and rules have just been changed now. where Roth 401ks do not have uh minimum. distribution amounts by the time you're. in your 70 a week can you write it down.

for me just so I don't um yeah we'll. we'll afterwards we can go feel like. I'll forget something yes or something. now is your 401K Roth based. I don't think I looked at that detail. okay yeah uh usually you can switch it. most places are getting rothbased 401ks. at this point anyway so that would make. sense to definitely either way it. doesn't matter with the money you're. bringing you're going to max out your. Roth IRA easy and then do 15 into your. 401k if you can max out your 401K that's. awesome. but so if I take your advice.

um. which is not an investing device because. we haven't talked about where to put the. money okay so if I follow like if I. follow what you told me I'll be able to. retire by 60 and what's the math on that. okay well let's figure it out we're just. gonna use the general S P 500 which. averages 10 a year so taking all of its. down years and all of its up years into. consideration it's just over 10 a year. this will be in today's money and then. we can calculate what it will be after. inflation as well well what do you want. to return you said by 60. start with 60. yeah let's see okay.

because you are in your best year decade. of compound growth second half of your. best decade so. time to start putting as much money in. as you can. 35 years. so in today's money 7 million. oh actually well I mean it would be 7. million 102 000 nominally yeah it'd be. something yeah but what it would feel. like in today's money yeah and this is. also taking into account that you're. just putting six thousand five hundred.

dollars in forever for your uh Roth IRA. even though that limit will increase. with inflation as well okay so. and that your pay doesn't go up and you. know your stuff like that so this is. just if right now continued forever. starting with two thousand dollars. putting in 26 000 a year 35 years s p. 500. in today's money with what the. average inflation has been for the past. few decades. would be 3.6 million dollars that's what. it would feel like today you know and. with that you could easily.

60 I don't know maybe I'll live to like. 108 000 hours you can siphon off and. allowed to continue to grow and I think. that's right around where I set the. money that I want to have when until I. know I'm like officially set for the. rest of my life four million I think uh. just just slightly over 100 and it's. like a hundred fifteen hundred twenty. thousand dollars a year I could siphon. so okay but with that that's great you. can amp it up if you want to as well but. yeah and I could probably retire earlier.

but I guess how would I do that because. even you know I'm still up but. let's see. is there a way to get that up I mean. what do you mean. would there be a way to retire even. earlier than that yeah so if I were to. retire like 50 what would that number. look like then oh I want to take a look. 2.5 2.5 and then but in today's money. today's money. 1.6 1.6 mil and then how much can I take. off again from 1.6 yeah I do three.

percent. in order to allow it to continue to grow. 48 000. oh okay yeah that's it's not a. lot I guess I got to find a way to. increase my income then. well income will increase with this. limits will increase as well and you. could also increase how much a putting. increase okay so you can cut back on. other categories I'm talking to the mic. so when you suggested maximum I Roth IRA. and doing 15 for the 401K is that. basically taking all my leftover money. like the 2300 and putting into. retirement.

how much total money would that be like. would I be contributing wait I'm sorry. so I'd be contributing like 400 a month. for like Roth IRA then how much if I did. a 15 401k contribution how much money a. month is that see that's. how a month. it's like 15 of my take on pay that's. before taxes so. it's like nine thousand and then. it was like. 1500. it would be about oh a month.

maybe about 1600 and okay so I'd be. putting 1600 towards my 401k and the tax. situation is different based on Roth or. uh tradition we can talk about that. afterwards as well but essentially now. if you move to California it might make. more sense for you to do traditional uh. anyway because that'll help you save a. little more money on taxes taxable. income. where Roth you know it's definitely. if you're below 30 absolutely do Roth. always 100 thank you is there any other.

advice or any other stuff you think I. should well no just right now your flaw. right now is that you're definitely. behind on retirement so it's time to. okay. amp that up you're in the best five. years of your life for compound growth. got it and it gets worse and worse by. every year so put as much money towards. it as you can if you for some reason max. out your 401K you for some reason max. out your health savings account you're. for some reason max out your Roth IRA. you can put money into a brokerage as. well you can put it into the same. similar funds depending with who who.

you're with okay so and if I want to. like save up for a house would that mean. you know focusing on getting more money. into the safe well what's hard is. because. um there's a there's some Merit to that. yes there is oh absolutely I would love. you to get a house. you determine what the number is. that you need to have in your account to. retire okay you determine what you need. to contribute on a monthly or annual. basis in order to hit that depending. with what you're invested in.

and then you will know the exact amount. you have to put towards investing on the. side and then anything else that you. want to save on top of that would have. to be on top of that to get a house. okay if you cut back from the goal then. you're not going to hit the goal yeah. okay it just comes down to priorities. and where your money is gone if we look. at this month I mean ton of your money. was just to BS. awesome yeah. you're just as blunt when I first met. you Caleb oh I'm always blunt this is. how I am anyone who's known me since.

birth that is just me but uh with that I. mean that that that's what I'm thinking. uh I know you wanted to address some. things from the last video so I will. allow you to close out this video by. addressing some things wait didn't I say. it earlier on. it was that all you wanted to address. well I mean the main criticism was that. you know I didn't get like go down to. Walmart or something but you know my. parents were fine with me just you know. trying to focus on getting a programming. job okay yeah I didn't realize how big.

of a deal it was because they never. really brought it up. was that pretty much it I mean the main. criticism of me what about your glug. glug of the water oh yeah that. I mean I didn't know you beforehand dude. so I made you stress thirsty. yeah it's better than stress eating okay. zero calories for sure yeah well that's. true cool any final thoughts then any. final thoughts. um when you gave me some good advice so.

I'll make sure to follow that. um. I can't think of any questions yeah so. there we go for the hammer Financial. score this is the first Improvement. we've had from a follow-up episode we've. done three previously technically four. but one you know two with the same. person but this is an improvement so. that is good not perfect emergency fund. we got to there that's great we got rid. of all bad debts we got rid of all this. there's no debt at all and all that's. really happening is you know not owning. a piece of real estate and not you know.

we're pretty behind on investing so. right now because we're pretty. aggressively behind on investing Hammer. Financial score 7 out of ten but that. will be an eight very quickly and then. hopefully uh all the way up to a 10 in. the coming years once he's able to get a. piece of property so make sure to follow. the things in the description like my. Instagram and Twitter and don't forget. to subscribe thanks.