34-Year-Old Has The Most Insane Debt Imaginable | Financial Audit

hi I'm Jacob Stone I'm 34 years old. based in Austin Texas and this is. financial audit. so 34 years old here in Austin Texas. what do you do for a living a full-time. I'm an instructional designer I make. like e-learning training videos for like. employee training oh cool then on the. side I'm filmmaker Director of. Photography and even starting YouTube. myself so oh really yeah oh sick you. have a channel yeah yeah it's uh I. wanted to do like filmmaker tutorials so.

okay we'll link it in the description. I'm gonna try my best to remember I. always forget there and then I like put. it in like an hour after upload so but I. will try my best okay uh how is that. line of work uh in Austin like that side. stuff that you're doing right now so so. the side stuff is is good if you're in. like commercial work which I haven't. really Dove too much into yet like it. pays really well I've been wanting to do. more more narrative stuff and music. videos which okay doesn't pay as well so.

that's why I'm like still doing a. full-time job but that's why I decided. to do the YouTube stuff eventually build. that up and then work on whatever. narrative or music video projects that I. want so okay that'd be sick what do you. bring in from your uh day job. um I think I think I bring in not only. how to do. like income oh income yeah I was like. wait you don't know how much you make. okay go ahead uh uh that's a hundred.

thousand oh all right it's a nice salary. oh I did not know what to expect with. that job but a hundred thousand dollars. very nice okay sick and what do you. think you bring in on average if you. just do your average month for the side. gigs like what do you think your monthly. bring in. um monthly it's maybe right now it's. been a less than a thousand but last. year for my schedule C was around 11 000. for the year okay okay so so it's not. that much it's gonna be like 800 bucks.

700 800 something like that yeah okay. no because of the tax bracket that. you're in this extra stuff though of. course it's not a ton of money you're. sending money aside for taxes. yeah I am since I'm not bringing too. much for my side stuff usually. um what I contribute tax wise for my. full-time job kind of absorbs it oh your. deduction okay yeah okay so yeah and. that makes sense but a hundred thousand. dollars plus like an extra eight hundred. dollars a month that's pretty sick. before we dive into your financial.

situation and we got some debts oh yeah. I want to hear from your perspective. what do you think your financial. situation is today and what would you. give yourself on a score of one to ten. I think my financial situation is just. the amount of debt I have and that I. accumulated I think if it wasn't for. that I could probably. have like live on less income and not. have to maintain a full-time job and I'd. say a score of one to ten.

maybe a four or five all right well we. will see how that pans out in the end so. the dad why'd you get into this dead in. the first place well you know how like. and I don't know if this applies to. y'all but like when you're 18 at least. my parents were like you got to get a. credit card build up your credit well I. built up a lot of credit and uh yeah I. just kept like eating and getting credit. cards not really tracking my spending. taking out loans and some of it was to.

buy gear to do my video stuff but it. hasn't really like fully paid off. um so I just kept building and building. and so they're like get a credit card. but here's no education on how to use it. yeah yeah it was pretty much that like I. hate that yeah even my parents are still. in debt and they're in their 60s. are you afraid of ending up in that. situation yeah actually. okay. where have you like been trying to get.

to what have you done to try to correct. this have you tried to correct it or are. we like just starting. I so I um put a lot of my debt into a. debt relief program okay closed a lot of. my credit cards so I haven't actually. used a credit card in a while I mean I. do have a secure one where you like make. a deposit and stuff just to build up my. credit a bit okay and making payments on. that but other than other credit cards I. haven't done that in a few years. um I've also started to put money in.

savings like emergency fund and just. focus paying off debt but it's it's been. a lot slower than anticipated okay. because those minimum monthly payments. are probably stacked yeah yeah all right. well we'll look at them let's start with. we have a USA classic checking. I mean this is kind of a scary starting. balance of 261 but it's also a scary. ending balance of 240. this was great with seven thousand five. hundred dollars coming in but 7 600 left.

yeah yeah so I mean do you have. automatic payments or is everything. manual are things automatically taken. out some things are automatic and some. things are manual. um because they get paid bi-weekly so. all like my pay dates are different. okay. well that makes me nervous with that. balance yeah what about like so you have. an overdraft you have an overdraft this. year it looks like in 2023 so far so. that's good but at 240 with automatic. withdrawals are you ever afraid of over.

drafting I I definitely have ever. drafted quite a bit in the past. yeah. and it's uh 29 fee every time it happens. so if I noticed anything within your. spending anything it's that you love. Jeff Bezos yeah yeah he's definitely uh. enticing yeah so I mean we start with. one of my favorite places Panda Express. but then we have apple bills some.

Crossroads FDR for 200 oh so that that's. the debt relief program I have I like. they like consolidate all my cards and. do the negotiation it's it's 400 a month. for that oh geez okay. um we're definitely gonna get into that. and then here comes the Bezos Amazon. Amazon Amazon Amazon noodle Ally Prime. video uh Texas Tech for some tolls and. Black Rifle coffee and event and that's. what you have right there and venmo and. Bezos and Bezos and Bezos.

let's see Bezos physique by strength. that's my uh my fitness trainer oh okay. okay well that's okay then I'm okay with. that anything that's like mental and. physical fitness I'm all about now. you've sent out or you wrote a check for. a thousand one hundred dollars that's my. rent so oh so you just pay my check okay. yeah my roommate pays the landlord in. total for um like through cash app and. we're like since cash app or venmo takes.

a few days to transfer I'm like I. believe it I was like I can't believe. this but I'm like hey dude can I write. you a check and that way you can deposit. it same day so I so I write him my half. and then he sends the full amount to the. landlord gotcha so your rent is only a. thousand one hundred okay that's not. crazy for the area but you do have a. roommate yeah yeah. Bezos clarna. oh yeah so you're financing things still. yeah that um I think that one was. recently a pair of shoes why are we.

financing a pair of shoes I mean you. know that you're at a bad debt. situation sorry and you're trying to get. out of it why are we going into. financing instead of just buying shoes. uh I think it's because I needed them. and I but I didn't have the full amount. then you can afford them yeah it's. typically how that works yeah yeah or. else we can go further into the bad. situation cash happened out 30 bucks. just right Lawns and lawns.

oh just right Lawns uh that's uh who we. pay to do the lawn we don't we don't. have a lawn mower right now oh so you. guys are paying essentially 45. bucks a week uh. so 100 bucks a month just to avoid. getting a lawn outcome cash happened at. 176 bucks venmoon 450 only fans.

Bezos. only fans again double only fans that's. kind of a waste of money when we're. trying to get out of debt Chipotle. grounding Nitro bar Bezos Bezos ATM. withdrawal 43 so we don't even know. where that went. Pluckers Lakeline. I know that plucker so we may have been. in the same room I like wings yeah yeah. wings are good very expensive though. yeah Chipotle. cash app and out 25 bucks there's your.

Fitness thing I think uh the crossroads. FDR that's the fitness right uh the. crossroads is the uh debt relief oh. that's right okay yeah yeah yeah and. Bezos and noodle alley and Bezos. Signature Cuts cash app and out. paying for a credit report through. Experian I mean you don't need to be. doing that when you're trying to get out. of this thing you can just I know Credit. Karma is not a hundred percent accurate. but it'll give you a good idea trying to. get out of debt we don't need to be. paying someone to tell us what our. credit score is Amazon.

[Music]. pesos. here's your car payment 801. death death we'll get into that but. that's death Hulu Panda Express we're. back to that karna again. and there's there's. a stupid pain for the lawn and. what is this Lion's crave oh uh Krav. Maga it's a it's another gym like. martial arts okay you spend a lot on.

that on on Fitness yeah the um my. fitness coach I I already told her that. I think I'm Gonna Cancel that for now. like I I've been doing that for a few. months and I think I got a good grasp on. it okay um but uh I enjoy the problem of. God I know a lot of fighting jibs are. kind of expensive but I think they're. one of the more reasonably priced okay. because yeah. I'm so good with like Fitness and. everything like that and you know mental. health everything like that we've gotten. to the point where you've spent almost a.

thousand dollars it feels like maybe. like 750 bucks in total on Fitness for. someone trying to get on a debt that's. kind of a lot of money yeah. okay Bezos Apple Chipotle. and take five. oil change oil change okay so that's. okay. uh let's look at the income that's came. let's try to find that so. so that's okay.

do you contribute to a 401k I do. um what's the percentage you contribute. I contribute three percent and it's. matched up to that three percent no they. only match up to uh one and a half. percent I would probably only take the. one and a half percent for now until. you're fully out of debt okay because. that one and a half percent of the. dimension up to that's 100 return but. with the debts that you're in the. interest on those debts is not going to. be anything that you're putting in there. outside of that 100 match okay so it.

makes sense to I mean we'll boost. retirement eventually it just doesn't. make sense to do it now uh and then. so this was another pay so it comes in. different amounts because we had 2874. and then we have 4262. oh so that um. that I get a yearly bonus and so so they. added the bonus into that check but that. so that's like a once a year thing okay. so typically you're post-text. withholdings and your post 401k.

contribution we're looking at about. 5 500 on a monthly basis that's your. account yeah that sounds that sounds. about right okay beautiful. now that's a lot of money to play with. yeah for most people. if we keep going through this because at. the bottom of this pile here we got some. naughties yeah. all right well here's another checking. what's the point of this double checking. the double oh so I think.

so I've had USAA for quite a while um. because I was in the National Guard and. girl I dated in college her she's she. was military but also her parents were. and they're like hey you should get USAA. it's a military bank I was like oh okay. um so I think at the time I only had one. checking account and then one savings. but then that savings I I withdrew too. many times and it turned into a checking. account so then I was like with me. starting to do my videography stuff I I.

don't have an actual business account. but I'm like I know you're supposed to. keep them separate so I was like I think. I'll use this other checking account now. for business and then. um then I opened another savings account. so okay because yeah you can write some. stuff off there if you're keeping it. separate making sure you're keeping. track of everything. so but we have zero dollars in here we. started with three thousand four hundred. three or I'm sorry 343 but we completely. took out everything after the 1900 was.

put in yeah so what are we doing. um I think it's just spending stuff on I. think our business expenses maybe not I. I'm not sure well it's hard to say. because we have. klarna again another karna that was. paying for uh GoDaddy. um Go Daddy through karna you're. financing Go Daddy. yeah well I I just paid for my domain. for like the next 10 years and it was.

like 50 bucks. they I don't know if they like raise the. prices or whatever but like I originally. thought it's going to be like 20 or 30. but then they're like bam 75 and I was. just like and you finance 75. yeah. buddy. we're trying to get out of debt we don't. need to go into debt which is buy things. and then okay I don't know if they're. business expenses but we have Bezos and.

BJ's Restaurant and Bezos and Bezos and. I don't know what this courses thing is. for 97 bucks that you spend uh Sean. Canal oh that's. um their YouTube course okay being. YouTube course yeah. you could have just waited to talk to me. B H Photo I can see that as business. expense that makes sense. so we can write that off hopefully G. Suite okay that makes more sense and.

Bezos some of the bezoses could be I. don't know some equipment yeah Open Sky. one taco and dromeda Bezos. how much is this is honestly okay so. Austin movie gear that makes sense yeah. uh venomena a hundred dollars Bezos. Bezos clarna. Bezos Bezos Bezos and the awesome movie. gear again that's fine and we're back to. BJ's Restaurant really like that for.

business. and Austin Convention Center we could. see that in film freeway I can see that. too. how much of that is honestly business. though versus just personal I was told. um and maybe I'm wrong about this if if. you have a meal and you discuss business. it's business. um but I'm not sure how much that. actually applies yeah sure you can make. it work but is that what you're saying. through like BJ's Restaurant but what. about all the Amazons and stuff uh. usually those are stuff that like. applies gear wise whether it's like.

camera accessories or like stuff like. that so if we're bringing in 800 a month. from this extra stuff but we took out a. total of a thousand nine hundred thirty. four dollars. yeah I'm financing stuff for my my. full-time pay. what or do you have to uh something work. doesn't pay for it no that's that's for. my own side stuff oh so that's from your. side stuff yeah yeah so a thousand nine. hundred dollars for your side stuff yeah.

but you bring in like 800 bucks a month. from it yeah I pay for some of that. stuff for my my full-time paycheck. oh. so why are we losing money on our. business. uh. I don't think I'm the best I think this. probably sends from not being the best. at finances I'm also working how to be. better at business okay well that's good. but let me ask uh just very simple. question when it comes to anything do.

you budget. not probably not the best I use a. software called YNAB okay and uh I will. say it's helped me not overdraft as much. but I don't think I'm as proactive as I. could be okay well you haven't. overdrafted this year and if you. overdrafted quite a bit before that then. I guess that is progress. but yeah I mean we're losing money on. the business check-in we barely have any. money we have no money in the business I. can barely have any money in the uh and. the primary checking.

what what is what does your retirement. look like today I'm a little nervous 34. man. my retirement is probably nothing right. now I mean not not that I don't have. anything retirement I think I have a few. thousand in my current 401k and then I. have a 1600 and an IRA but yeah it's. probably not going to get me anymore so. less than 5 000 total you think yeah. okay so you know that's severely behind. for your age yeah and you've lost the. best decade of your life to take.

advantage for compound growth and you're. almost through the second best take a. hit of your working life yeah for. compound growth so it's time we need to. kick this into high gear but what scares. me is the coming debt after we look at. this next thing real quick yeah yeah. all right now we have savings is this. that emergency fund that we were talking. about for a bit Yeah I so we we've gone. up to 125 dollars that's our emergency. fund yeah okay. so nothing. and it really only started this last.

month. 50 bucks 75 bucks I mean that's. everything. yeah okay yeah look well we're gonna. need to make some progress there but. that immediately takes us into the debt. and because the rest is a bit more. intensive with looking two we're going. to start with the one that is as clearly. outlined. you have a forerunner. do you like this Forerunner I love it. actually yeah well it loves you. because it is 800 minimum monthly.

payment. 800 minimum monthly payment are you. kidding me. how does that feel for you. it feels a little intense. 15 of your post tax income and you make. good income yeah. the total remaining balance is 43 885. which is almost half your annual income.

and we have again yeah the 801. 58 it's insane do you ever Miss payments. on this if you were overdrafting and. checking I haven't missed payments yet. you haven't no oh very good now what I. cannot see on here is the interest rate. do you know the interest rate I think. it's like 11.7. [Music]. when did you get this car October. those Reese in October yeah you do this. won't be paid off till essentially 2030.

2030. so this is what is this a 2022 4Runner. 2020. 2020 okay so it was used yeah oh I don't. even know what a forerunner is I know. nothing about cars all I know is the. person we filmed yesterday has a 4Runner. now you have a forerunner and they're. coming to just beat me into the ground. for Runner takeover why'd you decide to. do this dude just last October so like. six months ago what compelled you to get. into this situation if you knew you were. already trying to get out of debt. because you got into the consolidation.

crap well. what's the logic so it was a bit of a. want but I also did. I also knew I needed an SUV for film. stuff to haul gear and the car I had was. the transmission was going plus a few. thousand other dollars worth of repairs. that needed done why couldn't you get a. ten thousand dollar used SUV. it's like my SUV. yeah I did think about it and I I don't.

know that's the actual reason isn't it. this is gonna be death dude this is this. is gonna take so long to pay off the. interest rate is disgusting and you are. it's draining so much of your income and. this is a singular debt a singular out. of all the debts we have to talk about. the stupid 2024runner what's the miles. on it. it's like. 56 000 miles okay.

so this must be the consolidation then. yeah this. so these are all debts. yeah I couldn't keep up with the minimum. payments and I think I forget who it was. but somebody suggested one of these debt. relief programs I was on the sinking. bankruptcy but I was like all right I'll. try one of these first where well you. know what they are so I they're. Consolidated monthly payment is a lot. less than what all those were together.

so is the settlement amount. what you owe. the um. it's uh the balance was what I owed and. that's how much they they settled or. they negotiated with the company. so you owed right here seven thousand. and then negotiated 100 of it. yeah oh but you're paying the settlement. company now yeah yeah so oh okay got it. okay and you're paying how much uh 400 a. month is there interest on that there's.

no interest but it does include their. fee. um for what they what was their fee. oh. I think I know they're they're flat fees. like I think 75 a month included in that. price oh um but I forget what their fee. is per settlement so. there's additional per settlement. yeah and it's traditional it's included. in that payment.

um. but I I forget what that you said 75 ish. of the pay of the 400 payment yeah so. let's say the payment is 325 right. yeah. it's essentially a 23 interest. yeah that's I guess that that's a lot. well yeah so I I don't even know if this. is okay but yeah it may have made more. sense to consolidate this with. I know a lot of people don't like them. but with like just.

into an actual debt without this random. fees and stuff but consolidate it within. one single thing under something like. Sofi and I know a lot of people don't. like them but in the situation where you. couldn't make the endless minimum. monthly payments and all the interest is. accruing it makes more sense to get it. under one thing for a relatively decent. interest but you got sucked into this. program which is giving you if we did. the math right like 25 interest that. isn't even like. like that's your monthly fee you're. gonna have to just pay that no matter. what like can you pay it off early I.

don't even know yeah they said if you. contribute more into that program though. they can pay it off early so okay what. was the total balance going into this. that you owed it was like 27. 000 something and I I have about like 11. 000 paid off or settled already. you realize you just took out a car loan. for forty three thousand dollars yeah in. this 20 whatever was killing you enough. to get into this program. yeah this this was before the car though.

this I started this in like 2018 I think. or oh 2018 okay or 2019 somewhere on. there so minimum monthly payment is 400. What's the total balance left. uh I I think it's around. like 15 000 or. so these minimum monthly payments are. immediately eaten into you eating into. your Monies. that is an insane the fee they're doing. on that is insane and it's probably even.

worse because there's additional fees. from the settlements that you talked. about. that's crazy. thank you. well we don't have to go through these. individuals because you're just paying. them. and yeah. also if you want to settle anything you. should settle hitting that subscribe. button because we're trying to get to. 500 000 subscribers. and thank you to everyone who has. subscribed so far. what is this is this something. additional uh it's part of those. um part of those deaths so this is not.

something you have to pay additionally. yeah correct it's part of it okay so we. don't have to worry about this. this I'm not 100 sure what this is that. was the statement they gave me. um and I was just like what kind of. statement is that so that's why I send. you the screenshots so this is the. statement of what we just looked at yeah. oh thank God so that's just something. else my goodness I get it okay yeah you. have a settlement fee of 75 dollars.

huge payments creditor. three Japan tuners. and then they have a monthly service. here twelve dollars so really with what. they're doing and then a monthly service. fee there's like two different service. fees dude this is this is I think this. is encroaching of if they just broke it. down to interest like 30 interest oh. damn you're getting f'd the good part is. they did bring it down from like 20 to. what 15 like 25 to 15. yeah so now we.

can we can say okay but I I would have. Consolidated in a different way because. I think this is almost like predatory. but you're right so we got to get out of. it. yeah I I know you can quit the program. but then what does that mean like you. can you can just stop it but then you. would I'd have to go back to like. settling each creditor individually I. guess or. well since it's fifteen thousand dollars. on your income I mean we could do. something like that we could try to.

refinance them under something else I. think with just fifteen thousand dollars. and you have two debts you don't have. any additional debt anywhere else I I do. have more I I didn't. dude what so student loans. um about 30 000 there are they all. federal they're all federal okay so. they're not paused they're not going to. be for long yeah. um I owe the IRS sixteen thousand dude. sixteen thousand yeah what are you doing.

so what happened so this was definitely. partially my fault. um I maybe all my fault yeah I was gonna. say you better take some accountability. okay go all right so I got hired. um can I say the company name or should. I not that's up to you so I got hired as. a contractor by Saint Jude Medical who. was acquired by Abbott Labs and I got. hired as a 90-day contract to hire.

and they were supposed to hire me after. you 90 days it was a 1099 so I was like. oh you know I know you don't have taxes. taken out as a 1099 but I was going to. be hired full-time and contribute a. little more taxes to make up for that. well because of the acquisition they did. they didn't end up hiring me for 13. months and I well the part where it. comes my fault is I should have put. money aside for taxes but since I was. expecting to get hired I didn't well.

what what would that have changed anyway. you still would have paid your back. taxes. yeah I guess I would have not owed all. of 2017 I would have voted like a few. months okay yeah if it was that original. agreed to Pine timeline once you. realized that it was continuing. continuing why didn't you just like okay. let me put 30 aside. yeah it wasn't that smart what'd you say. what was the number again. about sixteen thousand death. okay what's the interest rate on the.

student loans do you know it's like I. think the highest one because they're. all individual I think the highest one's. like six percent and the lowest one's. like four percent. [Music]. dollar minimum monthly payment once it. resumes. okay so with this IRS what is the. current status of it oh is it on a. payment plan what's up uh so I was on a. payment plan I was laid off in August oh. okay and then I got got hired again or. no laid off in June.

um got a new job in August and then I. was like waiting to catch up and then. restart that payment plan again but I. haven't what was the monthly payment on. that I think it was around 198 dollars. and do you know if they had any interest. on that they have interest I I forget. what the interest rate was Ish I think. maybe 11 percent. try not to throw up okay. so we're restarting that right yeah okay. like today.

I don't want them to start coming after. you and garnishing wages and crap. any other debt um. none. that I can think of or remember there's. no credit card debt anywhere that's not. within that settlement that that's all. my credit card debt so no other card. that vehicle debt that's the only car no. private student loans okay oh well that. just that just. made a poo situation into like a death.

situation. oh so. be clear here none of this is good debt. there's no leveraged mortgage or. anything like that. we are at. 104 800. debt well the student loans we could say. they're they're questionable depending. on the interest rate. but even even without that we're like 80. 000 hours of bad High Interest death.

debt. yeah that was way down on you yeah. pretty stressful yeah. okay. the interest rates are trash. which equates to once the IRS resumes. which it should immediately and once the. student loans resume which it will here. very soon one thousand eight hundred. dollars a month in minimal monthly. payments. also known as. 33 percent.

of your income 33 of your post. contribution post-tax. so what is clear from here is this is. going to be a insane Hill to climb are. you actually. like willing to sacrifice things in your. life so you can have a better rest of. your life because right now I'll be. honest it's just straight up honesty so. you know how dire the situation what. this is is you're paying off debt for. decades and decades that's if you don't. take out any more debt and we just.

signed up for card debt and then you're. not really building retirement by any. means and you are forced to work even if. any medical thing happens if anything. happens you are forced to work. throughout your 70s and 80s until you. collapse and die that's what this is. looking like yeah you get it. as long as you get the severity of the. situation. then you can actually take the steps. necessary to hopefully improve the rest. of your life right now this is actually. a scary situation.

now you live with the roommate yes. how how do you feel about that situation. uh it's great. um he's one of my really good friends. okay and we get along really well and. prior to the place we're at now we had. an apartment and they were gonna raise. rent so right now we live in a four. bedroom house and wow that's really. cheap okay yeah where where we were. living at the apartment was going to be. the same price for this four bedroom.

house so we're like. might as well have the extra room and. like I turned one room into my office. one for his and yeah that's you know. working on. my own videos and stuff like that so. okay good I just wanted to make sure the. living situation was all good we need to. build you a budget now and then honestly. light a fire under and get this taken. care of because this is bad yeah are you. willing to sacrifice like actually. sacrifice you. okay.

first I don't think we're putting any. more money into the business. unless it is critical to keep it going. but we're not just trying to improve. things and prove things because right. now you're double taking what you're. bringing in and everything else that you. can bring in from side gigs. you need to put that money towards the. debt okay there's nothing else it can go. towards. so for living. sorry buddy restaurants don't exist. going to get coffee don't exist uh it. just doesn't exist you are cooking going.

forward you are cooking until you're out. of this bad debt and then and only then. can you go out to eat again after. emergency fund too so your rent right. now is a thousand one hundred. what about utilities internet all that. stuff what does your portion come out to. uh it's been average between 175 to 195. okay we'll call it one 85. health insurance cover to work yeah and.

taking out your portion okay perfect. Insurance everything we're going to call. that 200 for your utilities and all that. good stuff okay uh car insurance what. are we looking at it's about. 3 40 a month. so for this stupid car that you're. driving your pain over a thousand. dollars just to have it great what is. your gas on a monthly basis that you. fill up for this car I work from home so. it's.

probably a hundred dollars that's not. bad okay good. anything else that you're forced to take. care of outside of your minimum monthly. payments on things. um my phone about a hundred four dollars. a month. who are you with uh Verizon yeah that. sounds all right. T-Mobile has the best coverage in Austin. officially I'll switch to that it's only. 70. save yourself some money I'm not. gonna make a huge difference but. everything we can cut back anywhere.

helps in the end it's 1800 for minimum. monthly payments so you don't miss. anything and that's starting like. immediately food congratulations I'm. giving you a new grocery budget of 300. per month 300 a month. okay yeah it's a cutback but you can do. it people have done it it's okay okay. giving you toilet paper money as in. anything necessary for the house to run. Outsider utilities and rent of a hundred. dollars. like uh hygiene items or something yeah.

all that crap yeah anything that's not. grocery is that you need. what's really killing us is of course. the debt mineral monthly payment it is. by far the largest. the required budget just to survive and. that's with cutting down things to four. thousand forty four dollars a month. which fun fact for the income that's. coming in at the taxes is 74 of your. income meaning your needs category which. should never exceed 50 it's at 74 so if.

you're wondering why you haven't been. able to save up for retirement that's. why because on top of that what are you. normally doing going out to eat going to. doing whatever giving Bezos a bunch of. money and all this stuff so it's no. wonder why the savings is minimal. checking account basically has nothing. in it and one literally has nothing in. it and retirement is under five thousand. dollars yeah agreed yeah so what do you. think about this sacrifice before we. even go forward in terms of a plan. because if you're not even willing to. come to this sacrifice then or there's.

there's nothing we can do yeah I mean a. definitely should eat out less because I. mean I'm trying to lose weight anyway so. you can't afford to eat out flat in. general this is not even the budget yeah. okay what do you think about that though. definitely going to be hard because. it's uh. yeah so used to it it is I get it I got. that dad bud I know I get it but.

when it just comes to your future what's. most important you being able to live. incredible decades remaining of your. life and actually being able to retire. at some point. or go into BJ's Restaurant. yeah that's a good point so this one. sucks and this is what's going to take. care of your situation more than. anything and I don't think you're going. to do this but this is what you would. actually need to do in this situation. forerunners gone. for now so. yeah dude it's 800 bucks a month plus.

the car insurance of 300 and something. and you work from home. come on. yeah that's true this doesn't make sense. so it's 43 885 remaining on it the. payoff I assume is somewhere around. there. what's the car worth right now. I had it in for a like a manufacturer's. warranty repair and I guess one of their. sales people did a quote on it I think. it was 32 000. I'm gonna lay out what I.

will do just for people who might be in. your situation. I if I was a betting man I don't think. you're going to do this Americans are in. love with their cars makes no sense but. this will actually provide you a better. life this is what I would do for this. car situation. I would sell it I'd get that 33 or. whatever it is. I would then borrow a personal loan of. fifteen thousand dollars. 10 of that fifteen thousand hours goes. with the 43 or the 33 and pays off the.

Forerunner debt the extra five thousand. dollars I'm going and taking it to a. mechanic a used SUV make sure they give. you your seal of approval that this is. okay to buy off and this is a temporary. used SUV so you can lug around your. stuff. it's not fancy it's not great it's. probably like 2016-17. but it's fine it's safe it's reliable it. gets you there then also we have a. fifteen thousand dollar debt with a. minimum monthly payment interest rate.

will probably be around the same or. minimum monthly payment of probably like. a few hundred instead of 800. yeah. so this you just can't afford and that. immediately gives you like an extra 500. a month no no that methadone yeah maybe. 400 500 something like that a month this. is a throw towards all your other debt. yeah right now you just straight up. cannot afford this it just makes no. sense. so that's what you essentially have to. do to come out on the other side of this. or else this is going to take years and.

years and years but what I would do from. there okay so we have that 15 000. personal loan so we have two loans for. fifteen thousand dollars that settlement. because it's essentially a payday loan. the way that interest rate is structured. uh not really I wasn't over exaggeration. but I would hit that one first you would. in this context have an extra two. thousand dollars a month extra two. thousand dollars a month so the first. month I would save up two thousand set. it on the side that's if you get a. pickle for whatever reason boom you have. two thousand on the other side maybe do. that for two months that's up to you for.

your comfort level of risk you could get. that to two thousand or four thousand. whatever but let's just say you do the. 2000 that first month. and for the next. season take so long so as much extra. money as you can bring in like that. extra 800 bucks that you bring in a. month we're actually going to use. towards us so that's uh uh like we'll. just say to be conservative and extra. 2 500 a month is what you have from side. gigs in this because you're only. spending on what we laid out for the. budget nothing else nothing else we can. have free fun.

divide that by the 2500 and it still. takes six months to pay off the. settlement. but you're doing it you're going crazy. and you're working as much as you can to. bring in as much money as possible and. working every single second because the. rest of your life is worth it it is. worth it. then we're doing another six months. actually no the settlement 400 uh. minimum monthly payment of 400 just. congratulations gone because you paid it. off so maybe the next four and a half. five months you're doing that for the.

personal loan that we took out boom. that's gone we immediately have gone. from four terrible debts. two in the student loans is questionable. so. from their IRS we don't have around with. the IRS we're going after that IRS with. those two minimum monthly payments gone. now we're attacking the IRS and within. four and a half to five months I think. honestly in that situation of The. Sixteen thousand dollars we don't owe. the government no more money well at.

least in back pay and that's great. that's a lift off your shoulders. then we have the student loans. this is going to come down to the. interest rate anything that is in that. five to six percent range I think you. pull you put money towards all this. extra money you put towards it until. those are gone I don't know how long. it's gonna take because I don't know how. much is within that area the four. percent or less. that's what we're like okay we'll do. minimum monthly payments until they're. paid off because we can beat it in the. marketplace okay. so I don't know how long that's going to.

take necessarily but this and then from. there what's your minimum monthly. payments uh in order to survive your. debt is gone except for a little bit. with the student loans from there you. probably need about. 15 to 20 000 hours save that for an. emergency fund so you do that as quick. as possible without the minimum monthly. payments there except for a little bit. in student loans that's probably going. to take another six months or so. five to six months so we're going to. call this. a one and a half to two year process if. you go crazy if you go crazy if you keep.

your car if you go out to eat what does. this become this becomes because of. interest rates and everything like that. decade-long process I mean the car won't. even be paid off until 2030. then you'll. probably want another car by then. because that's a while from now and you. know in terms of how we view Our Lives. so that's why I'm nervous because I'm. not getting an indication that you're. willing to sacrifice that you're willing. to get rid of the car that you're. willing to do anything and and only.

after what I talked about after a couple. years ago in heart is when we can start. throwing money towards retirement but. the fact is I don't think any of that. can happen to me it's gonna last out to. a decade maybe even longer meaning that. we're pushing off retirement to our mid. 40s maybe our 50s and at that point. there's not much time to take advantage. of compound growth within the. marketplace of investing yeah so. retirement is lacking and then you're. just desperate desperate to try to. scrounge money together to survive so. I'm just I'm trying to lay that out not. to necessarily be.

overly negative though the purpose is to. just show you this is scary this is an. emergency for your life does that make. sense yeah okay. so what do you think about this car. situation. I I do like it. um. you know it's fun to drive but yeah the. that 800 a month is. I like cringe every time I make that. payment. um. yeah I I I could look into it.

um please do usually when I hear that. that means like we're not going to do it. but please do because like either. selling it like I don't have the title. so I could try and trade it back in at a. dealership like would that be I would. try to do private sale so what you're. gonna do is with it you're going to want. to secure the personal loan first so. that you're able to with the private. sale pay off the loan immediately with. and so we can do the title transfer I. don't know if I have the strong enough.

flight what's your credit score. I think last time I checked it was 6 50. okay with 650 we can do a personal loan. interest rates not gonna be great but. fifteen thousand. versus 45 essentially a thousand it's. not even comparable even if the interest. rate is higher because you're going to. attack it as quick as possible anyway. yeah I usually get denied for like loans. and credit cards like I've tried. um what I would do is I would use a. service like Credit Karma and it has. like guarantees on it and if like you.

don't actually get approved by the loans. they guarantee they'll give you money oh. okay so there's like there are systems. you can go down in 2023 okay and I mean. I feel gross even telling someone to. like go into debt but this is like a 15. compared to 45 it's not even like on the. same level. yeah dude I want you to do so well but. you have to actually sacrifice you have. to actually do what's necessary to get.

there. me too. you are then do it do it just do it. yeah yeah. so the fun part is once you do have that. fully funded emergency fund if you just. follow this exactly and we're out of it. in one and a half to two years probably. two years. 40 or uh sorry 36. as long as you're putting 20 towards. retirement you can save up as much as.

you want on the side for fun and go and. get this Forerunner again I don't care. but you're buying it in cash after 20. minimum is going to retirement at that. point that's true this isn't like I like. the Forerunner but this isn't exactly. the one I wanted well that's perfect on. perfect excuse to get rid of it and then. in a few years from now we get to the. the dream Forerunner. okay yeah if this isn't the exact one. you want then why are we losing with car. insurance and everything thousand one.

hundred fifty dollars a month on it. why is that going down the drain a. massive percentage of our income if it's. not even the one we would like yeah. that's a good point yeah. well I need to know from your. perspective actually knowing yourself in. a realistic world going forward what are. you actually going to do. I'm. I'm definitely gonna not eat out because. I one I do need to lose weight and save.

money there me too. um as far as not going out at all I I. don't really drink anymore. but I I do enjoy local music and I. go to something sometimes because I'm an. extrovert a lot of them are quite free. though yeah yeah like you can get even. if you do pay a lot of them it's under. 30 bucks. um if that's what you need to survive. I'm two a month two months okay come on.

if that's what you need to survive I. still wouldn't do it because I know how. to die the situation is but if that's. what you need to continue down the path. Okay so sorry. um as far as the car goes I I'm gonna. Research into it uh because it's not. like I'm showing it off for people like. nobody really cares that I have it I. just don't know how that process works. or if I'm gonna get approved for a loan. or all that stuff so. we'll start by looking at Credit Karma. there and you'll download it put. everything see if you can have any. guaranteed stuff there if we can get.

fifteen thousand borrowed yeah then we'd. go the route of private sale in a. private sale for a month or two is not. working. which it should if you offer what it's. actually worth should be fine I know. there's people in Texas in a major city. like Austin who will take it off your. hands but either way then we can look. for a trade and like CarMax which. that's the last route so we start with. private sale okay. because in the end it's a math game but. go ahead and uh I think the reason I.

went for a newer vehicle in general was. um I'm not a mechanic so I like don't. know how to fix older ones that have. issues no and that's why again like I. said there and what I try to say in. every video when you go to buy a used. vehicle if it's especially if it's. private sale but even if it's not you're. taking it to a trusted mechanic or build. that relationship so you can and make. sure they give the seal of approval that. this will be one safe to Reliable for a. few years to come okay but you're not in. for long term you're only in this car. for a few years yeah and then you're.

getting a car that you want yeah that's. true yeah well what do you think about. the budget I laid out I think it's gonna. be a little tough. um yeah it's like I definitely want to. not eat out but it's gonna take. discipline. um but I think that definitely frees up. the more income to pay off stuff so. remember even with the very Bare Bones. budget I give you. everything in the budget is still 75 of. your income. that's how rough it is so that's why we.

go so extreme so you can. get to a better place yeah I mean that. just demonstrates how bad the debt is. the fact that even with the bare bones. budget three four severe income is. immediately gone no matter what just for. you to survive and not go into like you. know behind payments yeah any final. thoughts. um no I don't think anything else for. Jacob it's gonna be an incredibly tough. situation and I'm unfortunately. skeptical that he'll get out of it which. is that. I know the budget just the most narrow. budget is still 75 of his income and.

that's with cutting back on everything. so I'm I'm very nervous but for his. hammer Financial score spending in a. budget two out of ten his money is. getting drained down but he's not over. Drafting and he's not completely losing. money but he's not following a budget at. all and he's definitely overspending. debt one out of ten because he doesn't. have payday loans or collections but one. is the best I can give him there my. timer for his age at least he has a. couple thousand bucks but it's. practically nothing for his age one out. of ten emergency fund has a little bit.

of money in there but it's practically. nothing again one out of ten real estate. he's not even in that world yet zero out. of ten so his overall aggregate Hammer. Financial score one out of ten make sure. to check out everything in the. description below like the resources I. have provided and don't forget to follow. me on Instagram and Twitter thanks.