Going Into Debt For An Expensive Vacation Instead Of Fixing His Finances | Financial Audit

hi my name is Garrett I am 27 based out. of Greenville South Carolina and this is. financial audit thanks for coming down. from Greenville what do you do for a. living up there I build f-16s with. Lockheed Martin gosh really yeah oh. that's a badass job that's awesome. what's your what's your position there. uh Tech lead right now but I'm on the. track to get a promotion here in about. six months oh lead plus promotion that. sounds like money what are you bringing. right now. um it's my base pay is 38.42.

but with working Friday Saturday Sunday. only 36 hours they pay me out for 40. oh. so I get paid at 41. oh 40 oh after. taxes if I work. 30 I usually work like two hours over. um I usually bring in roughly 1100 a. week that's your your typical weekly. check yeah okay and are you paid weekly. or I am paid weekly yeah Okay then if we.

go 1100 times that by 52 divided that by. 12. looks like we're bringing in about. on average. 4. 766 bucks a month. does that sound about right to you on. average you'll have some longer months. now have some shorter right and then. also 100 disable the VA so that brings. in an extra. 3700 a month wow. Mass what happened uh I actually.

I fell off of a jet in Afghanistan and. compressed my spine and messed up my. knees my neck everything like that so. and I hit my head on the way down so. what branch did you serve with Air Force. okay and were you just were you like a. mechanic I was yelling at 16s very cool. so 8 000. 466 now is this a dual or is this me. okay yeah we're not married or anything. like that I haven't included her income. in any of it and you guys do have kids.

though right we have one kid yep one kid. okay very cool how's it good he just. turned one in June okay wow. congratulations thank you so what is. your financial situation what are we. looking at today what what is all the. stacks of paper and debts that I see. what's going on uh I'm just we were. running for a year and then bought a. house admittedly probably a little bit. too expensive but. I try I'm pretty. as far as I go I like to keep track of.

all the finances. so. I roughly know what's going out what's. coming in I have a good bit of cushion. especially finances. um. I'm not drowning by any means but I want. to I want to get this done I'm sick of. it I'm sick of it how have you been in. it then why'd you go into it in the. first place because we definitely have. some credit card debt some heavy credit. cards yeah and that was the majority of. moving and stuff that came up that had. to be taken care of right then and there. what.

so moving so well I know we have a. mortgage statement in here so you bought. our house right if you had to use. debt to take care of the stuff that were. outside of the mortgage itself could you. even afford to get the house and you put. a lot of stuff on credit cards I did and. I knew going forward that. I I wrote down stuff that was coming in. and I said all right well this is how. much like after this I'm the credit.

card's only going to be used for minimum. stuff like gas groceries if that and. then pay it off at the end of every. month that's how I used to be with my. credit card until I moved slippery slope. yeah it is it really is you you can you. can immediately go from a credit card. prison to not a credit card person when. you just do simply. five thousand two hundred fifty eight. dollars on a car that already had ten. thousand dollars. we can immediately go into pure. stupidity when it comes to credit cards.

so absolutely again why did you get this. house right now if you had to go into. further credit card debt just to get the. house and you're already taking out debt. for the house I have nothing against. mortgages there's certain payment rules. we need to follow with that and we'll. see how that correlates to your income. but you had to go swipe cards yeah that. you couldn't pay off immediately right. let's do it and I'm trying to remember. back when I swiped the card and what. they were for that was last month last. month that is actually for I paid in.

full well the five thousand dollars I'm. I'm trying to remember what that was. I'll tell you what it was go for it but. first what would you give yourself right. now financially. zero to ten one. for sure it makes me sick to say that. but it is what it is numbers don't lie. okay. well I'm very curious on the why then. the why were where we are but we'll. definitely talk about that I mean I know. it's because we got a house but like. what led us in the decision making thing.

we started with ten thousand five. hundred sixty nine dollars on our credit. card which already has a balance makes. me yep me too wanna die and then we made. payments of five hundred dollars we had. a credit of 331 that's awesome but then. thousand two hundred fifty eight dollars. of purchases which is just chaos and a. ten thousand dollar card like kill me. now with two hundred dollars of Interest. two hundred dollars in a month I usually. get it you're bringing good income with.

the disability the full disability and. the income combined like okay we're. bringing in some moneys and I'm happy. about that but even people are sitting. here and so far this year they brought. in like two three four hundred dollars. of interest for a year on their cart I'm. like I get a little queasy and then I. see two hundred dollars charged here. uh interest charge. with a balance of fifteen thousand one. hundred ninety five so if I make a 500. payment. over half of that's just going to. interest yeah I do this is this is why.

we don't go into this in the first place. you've immediately gone from credit card. person to not right this is Navy Federal. Okay so. again current balance fifteen thousand. 195. 90 cents with minimum monthly payment of. 349 death. interest insane 200 a month.

if you don't want to pay 200 a month in. interest then you should definitely hit. that subscribe button it's it's a good. luck charm so hit that we're trying to. get the 750 000 subscribers and yes this. is like the second or third episode. we've recorded in this new set and we. are still working on it so hold your. judgment but I love you please subscribe. thank you to everyone who has subscribed. so far. but back into the trenches of death and. death money. yeah notorious Pig did we need to be. doing that 26 bucks in pure House Resort.

a thousand dollars okay yeah I know. you're gonna hit me on that one why are. we going on vacation when we have ten. thousand dollars it was our it was the. one time that we could go with someone. babysitting the kid. I don't give a [ __ ] about babysitting. kid. Nick. it's time to start putting that kid to. work with this kind of credit card debt. and then Amazon 21 bucks Amazon. what's this what's this Pet Suites pet.

resort they watched the kid but they. couldn't watch the dog too. three of them. I'd watch three dogs I love dogs. what yeah. yeah you paid 411 for that yeah. pure House Resort another. 1195 dollars you're making the voice go. up dude and now I can hear it after. people have made fun of me for it but. and then more pets weeds Pet Resort 261. you know what is Thrive Works what.

possibly even is thriver Thrive works at. this point two hundred dollars that's. therapy okay that's okay VA doesn't. cover it does but whenever you go into. the VA it takes them six seven months to. even get you scheduled so until they get. me scheduled I'm doing that have you. started that process to at least start. going through there well August 4th will. be my first appointment at the new. hospital so it's a bummer that they. can't reimburse for private I know well. I guess but people could take advantage. of that people could charge Crazy Prices. for sure.

um. it's so close to 900 of Interest charged. this year so far on this singular death. card why okay okay I just we need to. know in this conversation we. be able to do all the things to do for. the house so what do we do we went and. swiped cards and then we decided okay. because we can get the kids sat right. now because this weekend or this week is. the one time that someone is willing to. come to our house and look at the kid.

we decide it's time to go spend. thousands of dollars on a vacation. why why are you prioritizing vacation it. was more of. we've been having problems uh especially. me with anxiety stress I've never been. on vacation before it was our. anniversary I want to do something nice. yeah it was a lot of money I know. well I now. please don't share this if this is even.

too close to if this is even. semi-personal because what I said behind. the closed doors is my clothes orders. but I want to take a brief moment to. think today's episode sponsor policy. genius we need to talk about something. critical and that is when you have an. entire family or individuals relying on. your income life insurance we all know. how important it is to protect protect. our families and in the worst case. scenario we would not want them to worry. about money so that's where life. insurance comes in it provides a safety.

net for college costs mortgage payments. and other expenses so your family can. focus on what's most important I think. we've all experienced in our personal. lives when we've seen people pass away. in either our own families or in our. friends families and that safety net did. not exist it's tragic to watch and we do. not want that happening to our loved. ones that surround us and something like. policy genius can make finding that. insurance so much easier they're cutting. edge technology lets you compare life.

insurance quotes from Top insurers and. find the lowest cost price in just a few. clicks with policy genius you can find. life insurance policies that start at. just 25 per month for one million. dollars of coverage some options offer. coverage in as little as a week and. avoid unnecessary medical exams and if. you're confused about using policy. genius there are award-winning licensed. agents can help you along the way and. those agents work for you not the. insurance companies so they'll help you.

to find the insurance that meets your. needs and without any added fees so head. to policygenius.com forward slash Caleb. hammer or click the link in the. description below there you can get your. free life insurance quotes and see how. much money you can save your loved ones. deserve a financial safety not and you. deserve a better easier smarter way to. find it thanks again to policy genius. for sponsoring this episode and helping. to protect what is most important that. the therapist have any thoughts on this. on the vacation yeah. um and usually I don't talk about money.

in my therapy sessions so she kind of. just saw it at base value I think it's. something to talk about money is in your. therapy because that is an important. part of mental health in our culture in. our culture specifically this could be. like the heaviest thing Weighing on a. relationship it can be the heaviest. thing Weighing on our anxieties yeah and. depression and just. um just mental stress in general man now. do you have PTSD related to your. experience in the military I do yes okay.

yeah I'm very glad you're getting help. for that and I'm so sorry you're dealing. with that that's absolutely horrible I'm. glad you're taking the steps that 200. absolutely absolutely I'm I'm thrilled. to see that that 200 is there does that. take care of like weekly sessions so we. were doing weekly sessions and the 200. was just the first appointment kind of. like an orientation oh chill me out so. now it's dropped to 170 and. now it's going to be every other week. instead of every week because of.

affordability or no just because she. sees me making progress so she thinks. we're gonna try out this every other. week okay so okay okay good well okay. I'm glad that uh she's seen some. progress and I'm really glad you're. going to that. I it's impossible to ever know what's. going on the human mind is so stupidly. complicated. but I from the financial side of the. purpose of this show want to get you to. a point where if there's any stress.

that's being added because of finances. that we can at least get rid of that. yeah from my end like who knows who. knows what percentage of any might. contribute to any related anxieties and. feelings just from the extra weights of. life and finances being one of them yeah. but if there is a chance of it even. being a part of it then I want us to. deal with this for a Financial Health. reason but then just your actual Health. yeah being with me I know Finance is the. main thing that I stress about is really.

yeah yeah I'm really heavy on my. finances. um and I'm just I'm ready to get better. I'm I'm sick and tired of of doing this. okay I get the logic I get the I. communication but especially if a lot of. the anxiety stems as you just said from. finances right that it really makes. sense that take the vacation because. you're just horrible added to it oh no. really yeah we went to Key West and it. was just we're not we're not like party.

people we just want oh it was a party. goodness Key West is full of it yeah so. and uh. but yeah man we just got to get you in a. nice little cottage on Lake Michigan up. north. or somewhere on a beach where no one can. yes you know yes eventually. eventually not anytime soon but Bora. Bora would be nice ah yes well we will. get you there. you're not doing it like this again oh. no please absolutely not hopefully you. learned your lesson this is barely a.

month ago I'm not thrilled about that. I'm not gonna dig into it I you took. what I'm assuming was kind of a gut move. through the different anxieties and. stuff like that to do this right and on. your related to that you're able to give. reasoning why justification no reason. why so at least we know why you did that. we're just not gonna do it again because. that was really bad absolutely oh okay. and then we have Military Star yeah. which is another a lovely debt.

unless you're not purchasing on this but. you made 450 payments which is great. excuse me and uh interest charge of. almost 40 bucks. it's a 63 minimum monthly payment and. there is. 2694 owed that should have gone down to. 2500. okay I rarely use this card. um if I do use it it's something for a.

big purchase like I think the last thing. I purchased on there was months ago and. it was. when I say refrigerator. for the house so. which you couldn't afford could you. because you had to swipe it on a credit. card you got into this house too early. with me I'm. I get taken the points so you're gonna. yeah you're gonna think this is stupid. right but. I self-reflect a lot and I feel like. I'm scared to spend that money that I. have in my checking account I get it I.

feel like that and again not. justification not an excuse or anything. like that but it I think it stems from. growing up how I did how'd you grow up. very poor very poor um coming home. lights are off we're you know camping. for the night but when I got older I. realized that the electrical hadn't been. paid and there were many nights that my. mom would feed my sister and I but she. wouldn't eat oh my goodness so very. rough you know I don't I'm not using. that as a crutch no no no face that.

head-on and I'm ready to get these. numbers down it's certainly not a crush. but crutch but understanding where. someone has come from is incredibly. important like I mean that in general. definitely creates I mean that's a. traumatic experience overall especially. when you start to become conscious of it. and then you yourself now having a kid. not wanting them to go through the same. thing it's a very big stressor I get it. I get it. um but yes as you know that's obviously. not how this math works right we.

understand the mindset but I mean if. we're losing I mean at this point we're. losing 250 bucks a month at interest. yeah 250 bucks a month and interest on a. card. now I understand that one okay well we. need to look at the checking. plus 240 14 on these now I'm not gonna. celebrate the interest rates because. that last one is 18 this one's 15 not. good but at least it's not like 30 that. we're seeing these days with credit. cards right. so those are.

now car something interesting having a. car it looks like you put a good amount. of money to it yeah yeah so we had a. hail storm and it's purely cosmetic I'm. not going to. repair them oh yeah yeah right so. I. took the the insurance money they took. out my deductible and I put the rest. towards interest very good I do love to. see that okay little bummed that it. wasn't your money I thought you know. maybe we were making a step financially. but right yeah at least you use that.

money and started putting it towards. some things yeah so took it down from 23. 000 to 16 000. yep that's great so. sixteen thousand one hundred five. dollars that's awesome the minimum. monthly payment of. I'm gonna say it's like five or six uh. 486 oh okay and it fluctuates as well. with with that auto company you can. either put if you pay excess you can. either put it towards principal or put. it towards your max payments oh okay I. thought you were gonna say no no no no.

no no it's a fixed uh. 5.3 okay. certainly nothing to freak out about. there typically you would say we would. like to see interest on cars with. depreciation and everything. traditionally about three percent or. less but right of course that's not an. aggressively makes me want to die type. of rate it's a 2015 4Runner so it's. nothing brand new yeah what's it worth. it I started with this damage uh with. the damage I'd probably get 20 for it.

okay. so at least you're over right now yeah. if you didn't put that insurance money. towards it and you just left it and went. and just [ __ ] yeah no I it would. have been on water yeah I knew for sure. that was going towards principle and. we're decided to get a house yes which I. get it. probably because the kid probably pushed. you in a new direction towards that yeah. yeah yeah. of a 405. 000 37 current balance on this bad boy.

how much did you put down I assume you. took care of. took advantage of some yep no money down. well actually no I'm sorry I put 12K. down okay I mean I'd still rather try to. you know. put what you can right and even with the. VA loan the. the builders for the house required that. I put twelve thousand uh it's a new. construction yes.

6.625. that sucks yeah. in the 80s I don't give it come on yeah. in our lives yeah I don't like it so. um hopefully rates go down at some point. I'll refinance well it sucks is when the. rates are going down it's like usually. it's because like unemployment's going. up and right this is crap and I don't. want to root for that situation right. rates in general going down sure and. then yeah definitely refinance if we can.

get lower if we can get even close to. like four percent I'd be thrilled for. you. 2990. dollars well two thousand nine hundred. nineteen dollars yes it's a lot of money. dude that is an exorbitant amount of. money for a mortgage yeah that's 35 of. your income yeah which the 100 VA pay. that is a very recent thing probably I. think I got it oh really like three.

months ago what what are you expecting. it I was expecting it yeah okay at least. you're respecting I was at 90 before. went with the company they got me up to. 100. so I was already getting 2 000. yeah because this would have been. this would have been what 85 percent of. your income yeah. even 35 of your post tax I mean that's. just too much right yeah but at least. you're like straddling that line instead. of just going overboard and just into a. disastrous state if I. was taking up a lot of your needs.

category though yeah and if I hadn't. have gotten that 100 I was just going to. I only worked three days out the week. I'll just work an extra three days and. just have one day off a week I mean. yeah I won't get to spend a lot of time. with my son but I would rather have my. son in A well-stocked household in a. nice house. you know with the electricity on with. the electricity on right so from here we. go into the checking accounts and there. there's definitely some mystery around. you saying well I don't want to spend.

the money so Within These two months. things happened money got just sent. everywhere. within the active duty checking you had. seven thousand dollars ended with five. thousand six hundred and then in this. new month you started zero dollars and. ended with 8 362. then in the membership. savings five dollars and then in the new. one forty eight thousand one in fifty. thousand came out ended with three. thousand because you started with five. thousand. this is yeah or a little all over the.

place. similar starting in this regular savings. and similar ending nothing much there. right ten thousand hours overall ended. now we're up to 16 762. right so I know that seventeen thousand. um I transferred that into a another. checking account because of the hail. damage for the house. so I did an insurance claim on that it.

smoked my roof brand new roof smoked it. so I still have a good bit of that. because they're still replacing the. siding but they requested half down so. that's in another account I don't touch. it at all because that's gonna fully pay. for that right so that money's already. allocated except for a thousand dollar. deductible which I have saved so 16 000. are these numbers reflecting correctly. you have eight thousand dollars in. everyday checking or yeah everyday. checking active duty has three thousand. and saving says five is that correct yes. okay.

so yeah and then immediately I wanted to. start paying some Ted off right and that. goes back to being scared right I get it. just know that in the end. this debt right here. is hanging on to you more. than any of. the lack of this money would yep it's. it's beating you down and holding your. financial future down sucking away money. like a leech whatever yield you're.

getting on the savings is not even close. to the 15 17 18 on the credit cards. what is the old liner savings with the. five thousand dollars in there. yeah I I don't I don't remember I'll. take a look. so yeah a lot of the home stuff there's. another 17 now you spend like um you go. insane under spending okay you go wild I. mean these like cover these.

eh these numbers but look at this this. is just one page one page and it says. pink pink and there's like 10 pages of. this dude you go insane mobile quick. trip and many pets venmoing out money. who knows where that 125 dollars do. energy well that's actually okay and. then Uber Uber and United Pier House. Resort First Flight tropical Corner. Amazon Nick bahina Pizzeria Jolly mon.

Pier House affirm what were you. affirming so we're taking on the firms. now yeah I for better have done it the. zero percent interest way that's all. paid off on the firm and everything. Prime video Nick Mahana and bahana Honda. food and Rocky we're going on a hard. walk while we're on vacation right yeah. well that's the only place that. Clara is. allergic shelter your wife yes okay.

girlfriend oh right just be good yeah. she's allergic to selfish yeah I mean. through a tropical beach Town yeah and I. feel like that was that was a missed. point on my part it's time to go to the. mountains I need some elk yeah yeah oh. man that would be amazing uh so hard. rock is the only place that she did not. react. is so. well then all y'all's stomach's probably. reacted later that night anyway from. going to Hard Rock. Sphinx.

some train some turtle thing Hard Rock. again mohana Hondas Sunrise a spending. machine Xbox Live and I'm not gonna go. through all these because this is so. many pages of this line so many. images of just stupid. pink orange whatever color this is lines. of depth and lots of subscriptions in. Spotify and you're spending so much on. Xbox you're buying games every like 30. seconds of your life it's crazy and. going to eat I I know some of the.

specification but not all of it you. weren't there for a month were you no. but then you go to eat like twice a day. dude this is chaos this is insanity and. that what is this Nayak vending Nayak. vending. work that is the vending machine at work. food and now I do I uncook everything. and I bring lunch I don't hit the. vending machines at all now good lad. instacart. it's kind of an expensive way to grocery. shop I was sick.

girlfriend she was uh she was at school. have the one-year-old waddle he was a. daycare. I was Home Alone one year olds can pick. it up on their dog. any machines vending machines Xbox Xbox. I mean this is chaos. vending vending it's like okay you must. be ready to just start take care of this. now like this one has to be a recent. change because this is like this is all. and this is just last month right and. the vending they all come out at the. same time yes I still went to it and.

everything but oh so you're going to. them like daily and then they come out. all at once all at once right so it well. stop what were you getting where are you. glugging down or chomping on uh it's. probably. the bottle. of water oh my gosh you can get that you. can get like a I just bought a pack of. like a thousand water bottles or just a. few bucks yeah I I mean I was at work I. had forgotten everything at home. and uh no not every day but like I said. it all comes out all at once so Ben.

verified why are you paying for that you. have a lot of subscriptions man uh. that's canceled uh been verified I've. been getting phone calls from yeah from. the same number yeah so there's weirdos. out there. don't let them get to you. then retirement but the retirement's. pretty lack however this disability is. forever right so. um I'm putting 10 of my check into. retirement every week how long has that. been gone that's been going on for. a year now so it just hasn't had a bunch.

of time to build right because on. whatever this one is I don't know the. difference between the two I don't know. why they split it up into two. um that was something they did on their. part I just know that 10 comes out and. okay that's really all I was thinking. okay. well you're not in anything bad we're in. 2050 retirement funds 2060 retirement. funds so they start off more aggressive. then they get more conservative the. closer they get to that Target right but. I'm I've made it to where I want to stay. aggressive I want to put as much in. there I mean okay what you put it in.

then. um they're probably not in these Target. retirement funds anymore no they're. they're so you can it has a bar that you. can. adjust how much you want what does this. app this doesn't look familiar to me. that's from Lockheed Martin that's their. own their own thing they match up well I. wonder if it's like aggressive like it's. going hard aggressive now but the. retarget retirement fund still gets more. conservative the older you get though. yeah I'm not I'm not sure either way 1. 700 balance there so definitely behind. for your age on that one and we're.

putting like 38 bucks sorry but this is. a larger one oh I'll get to that in a. second uh seven thousand. 511 in the other one so okay. certainly behind for our age but I'm. glad there is something going and you. are contributing or you contributing. anything while you're in the military so. I tried I was gonna get your advice on. that I don't know how to access my tsp. from the military interesting. interesting well.

I've never been in the military uh I. guess I would just I mean you've emailed. and called around they don't tried I've. tried yeah they uh they don't answer and. I've been out for so long that I'm not. gonna answer Personnel Finance Personnel. I choose yeah it's it's like pulling. teeth to get home go to. I could probably head out to Columbia go. in there I'm not sure if they're gonna. have my records or I've been out for for. a while. it's interesting because I've had quite.

a few tsps. um like they've had access to their. documents everyone that's had one has. been able to pull them up here so. they've been able to get access to it we. certainly need to get you access to it. yeah is there there's no way to like go. onto their website like put in your. social or anything like that and get. access to an account. um I tried getting onto their uh in. preparation for coming here and. it I don't know it it won't pull me up. at all how much Googling did you do.

about how to access mine it's okay uh I. mean I did I did a good bit of research. I wanted to come prepared sure okay. oh sorry I wish I had more information. on that that's all good I'll figure it. out I just relate to things that you. know I try to learn as much as I can and. everything with that but out of the. books I consume the podcast I've. listened to you know and then my own. life people's lives around me yeah. um not much of honestly. uh come to the place of not being able. to access their teams right yeah so I.

apologize for that no I'll figure it out. um and then. yeah so 7 500 bucks here. and ESOP fund. I don't know that specifically and then. we have another Target retirement fund. which 75 is in. and this contributes more like 220 bucks. every two weeks which is great. I have a monthly income with your. current rate of 2197 a month I don't.

know if there are things 100 correct but. it's assuming that 288 is from employers. 6.99 from savings and then Social. Security couldn't even exist by the time. I'm not counting on that yeah yeah but. that's more than half at 1209. now of. course again 3700 which should go up. with inflation if you're getting on a. monthly basis which is good so but. either way we certainly want to play. some ketchup yeah when it comes to. retirement 100. okay so to be clear.

the money that we have right now is 16. 762 so let's get your budget we know. that your mortgage is. also I put a thousand dollars a month. it automatically pulls for my account. for savings I put it in Albert. Is this different than here. it pulls out out of the regular savings. so if you see like where does it go to. to an Albert account how much do you. have in there. two thousand okay so you've been doing.

it for two months you. okay what's the yield on that I don't. know yeah I don't know what the yields. are anything that's been all I'm saying. people always ask me what I use so I. finally decided to like get a good one. and then I have an affiliate link so far. 4.4 percent right now such a good yield. plus 200 up to 250 000 250 bonus when. you set up direct deposit okay I mean. like come on I mean that's incredible I. I personally use it it's the only reason. everything I have linked down there I. either personally use or would use if I.

was in a specific situation so it's like. that's killer. um but obviously do whatever you want. houses 2001 919 utilities internet so. internet will be 80 a month gas will be. 26 won't round at 27. that's all yep. okay well I guess it's not cold season. so exactly yeah electricity uh 153. yeah. then I've got water at 87.

I have security as well at 66 a month. well 65 a month I'm sorry. okay so I have that then at 412 phone. bills. phone that will be 96. a month who are. you with Verizon now Verizon's expensive. one yeah it is they do have the best. coverage in most places. and. okay I want to know how the grocery. situation works out with you and your.

girlfriend and then the kid of you both. you guys live together yes okay yeah. we've been together for about two years. what's the potential marriage situation. it's gonna happen I just I want both of. us to start our marriage. fresh no debt yeah you know yeah but tax. bennies yeah yeah well. all right that's fair that's right. there's some other benefits with not. with us not no no no I'm kidding her. yeah I'm kidding yeah she does yeah okay.

um and so she's going to school full. time really yeah she's going I want to. save her business admin so. she get she does very well in school. she'll uh. she gets grants and everything like that. so with her going to school we made an. agreement if she can pay for her bills. don't worry about groceries I'll get. groceries okay. um so I if if she does get in some. trouble I do have you know money set.

aside and everything like that to help. her out if if that happens but that. rarely happens that venmo that's the. only thing that happens gotcha what have. you been spending on groceries obviously. you're going out to eat every second of. your life which is weird. um. I didn't think I was eating out that. much to be completely honest we don't. four pages of pink lines my dude we. don't like going out to eat I'd normally. cook. um and I'll meal prep on Thursday and. I'll make enough for them to eat during. the weekend while I'm at work well.

that's not reflective but I get it I. mean a lot of those are also buying a. video game every second of your life and. a lot of stuff like that so it wasn't. all just eating out to eat but there was. a lady well that that's my mentality. going forward. um okay I hope so no eating out uh it's. hard to just change it on time so I. really hope so hopefully you saw what. it's like on the other side of it and. you're like I'm done it's time to be you. know Big Boy and live a good financial. future which absolutely can help ease. the stress around the all the other. things we can talk about all the other.

life things but again finances that's. where I put my focus and my knowledge at. so that's what I can talk on but for. sure. so food what have you been spending on. groceries what does it look like. looks. I want to give you guys 600 a month oh. that would cover it yeah 100 and my gut. wanted to say 500 but I want to give. extra 500. I want to give extra for. diapers and all that crap yeah oh let's. call it for groceries.

strictly groceries oh geez. puns having a spasm. for groceries I think we can we'll do. 500 okay we'll just see where things. land with that yeah but then for toilet. paper make keeping the house in order. including diapers yep. we shop at Costco too so good. use that I want to say 200 but I'm gonna. say 250 see where things look. okay car insurances so Insurance you uh.

my car insurance is 86 and then I also. have insurance on my motorcycle which is. paid off completely. um that's 90. 86 is great. we are going. I do want us to change because the. deductible is 2500 bucks and I was like. I see yeah yeah that lovely hail storm. that you guys had yeah.

because if that deductible is lower more. that money would have gone toward. principal yeah. okay any other minimum monthly payments. you got oh let's see I know you have. subscriptions like crazy yeah how much. is your Xbox Live that's what you use. right game pass or something gaming. mouse yeah what is that it's like 14. bucks a month yeah and then yeah I want. to say you have the actual Xbox Live. subscription on top of that so I say. like 30 a month. and allow you to keep that if that's you.

know your de-stress after a long day if. that's your de-stress and that's what. can help you get into the next day. without just like yeah yeah like 30. bucks a month [ __ ]. no more buying I'm not going out to eat. y'all going crazy you can buy Starfield. and that's it okay that's gonna be a. great game I hope. that's on that's on Game Pass so oh. there you go that's right I forgot. Microsoft is buying every game company. ever so. any other minimum monthly payments you. can think of there are other. subscriptions but we're canceling them. unless there's something.

uh I've got it seems critical HOA that's. paid out for this year though from the. construction company it's like 35 a. month sure. um and then I had that home improvement. loan. I didn't know about any Home Improvement. Home Improvement it's a new house or. possibly for what for a fence. 7100.

oh yeah I know jeez what's the interest. rate on that thing. uh I don't know because it hasn't come. all the way through yet yeah but you. signed it what did it say the interest. rate would have been when you signed up. for it I want to say it was at a three. and a half what yeah what's getting. three and a half these days it seems so. odd that's just I mean awesome oh yeah. not awesome I still wouldn't borrow a. fence at three and a half but.

I believe in taking out. some low interest that as sometimes but. I'm not taking around three three four. percent loan on a fence what's your. minimum fee payment on that once it. starts that will be I'm gonna say 200. stupid. oh we have a stupid. fence debt. ruin me. well now outside of your mortgage. yes.

dads. or a thousand ninety nine dollars just. your minimum monthly payments yep that's. disgusting it's absolutely nasty. so that that's your budget right every. other subscription is being canceled. Netflix Hulu everything it's done good. and let me add this [ __ ] up. all right so what's the need in order to. survive. survive is.

5482.56 a month. oh you're okay well now we know you need. 65 of your income your basic needs. you're living on frugality in your. situation is 65 percent of your income. that's terrible it should be no higher. than 50 of your income no higher so that. you can have access to other things so. that you can be contributing 20 of your. income so that you can have fun in the. limited life that we get to live right. but we don't even get to consider that. because your needs are 65 of your income.

and that's with your extra. disability and if it. 5482 compared to your 4766 that comes in. we're not living right you know this is. yeah no you are. we're living beyond our means right now. that is for sure which makes sense why. some of this is not being paid off as. quick as possible you do have in this. situation though in extra.

2984 if you follow my budget okay which. you should we gave wiggle room Xbox game. pass Xbox Live a Little More on the. toilet paper a little more on the. groceries we gave some Lego room sure. now we have. 16 17 18 000. what's the difference between the active. duty checking in the everyday check-in. what are you doing between those two I'm. putting mortgage into one so that way. whenever I get that payment from the VA. I'll take out the exact amount right and.

I'll put it into that because it. um Auto drafts from there. it's just so if if something happens. which if I'm following a budget it's. always going to be in there yeah exactly. it doesn't make sense yeah here going. forward I'm not going to do that but. yeah previously put it down into one. checking okay we're gonna keep. three thousand dollars in that checking. account okay. now. we're also gonna put in a high yield.

savings I don't know if what you have is. but again you can use my link uh get. that high yield savings we're gonna put. an additional three thousand from here. in there and that's six thousand I want. to take a brief moment to thank today's. sponsor course careers if you you want. to start a high paying career in the. Technologies industry but you don't have. the experience or the degree course. careers is here to help the replacing. college is the modern way people are. starting careers and it's so simple all.

you need to do is go through an. affordable online course where you learn. everything required to actually do the. job then they help you land a position. by partnering with companies who drop. their degree and experience requirements. to hire course careers graduates into. entry-level positions and internships. check out some of their stories of. people like Nyla who went from being a. 19 year old Starbucks Barista to making. over sixty thousand dollars in a remote. technology sales career or Josh who went. from being a College Dropout working in. retail to making a hundred and forty.

thousand dollars just six months after. completing course careers so go to. coursecareers.com which is linked in the. description below to sign up for the. free introduction course where you'll. learn exactly how you can start a high. paying technology career without a. degree or previous experience and make. sure to use the code Hammer 50 to get 50. off on the full course and all of this. is linked in the description below thank. you again to course careers for. sponsoring this episode so that's a. two-month emergency fund I do two months. because one. we have a kitten too because you have a.

kid okay. but that means. we have. drawn. drop 12. 762. so what are we obviously obviously. immediately doing. we are killing. that stupid star loan okay so two. thousand five hundred dollars gone.

meaning we have 10 262 left put that at. the Navy Federal then we have five. thousand dollars left some of the. minimum payments already going down now. you have three thousand dollars a month. you can put towards things five thousand. dollars there a month and a half Navy. Federal is gone right. what are we at at this point because we. just we're just allocating money that's. already had we're one and a half months. in. one and a half months in we have a. two-month emergency fund and two of the. cards that's been draining you draining. you and not in the good way draining you. completely Drive.

oh this fans is it really three point. three percent do you know I I mean I can. look it up real quick if it's a I'm just. trying to determine. so far we snowballed we did small credit. card to large credit card but now the. fence is obviously half little uh less. than half of the car but the car with. depreciation with the rate makes it more. like a 10 interest rate. uh mathematically speaking I'd rather. attack that in an avalanche method. versus the fence which makes more sense.

mathematically but if the interest rate. on the fence is higher than we think it. is it makes more sense to pay off the. fence at that point quicker then okay. but I don't know what things are looking. like right yeah if it's above five. percent pay off the fence but either way. 16. 000 on the car probably ish around that. time because it's only a month and a. half in plus the fence 23 100 besides. the Mortgage Debt twenty three thousand. one hundred dollars. of the now.

three thousand four hundred dollars you. have on a monthly basis because your. minimum monthly payments are going down. seven months seven months the fence is. gone and this is in the car the car is. gone as well so that means eight and a. half months two month emergency fund all. debts except for your mortgage is gone. okay that's crazy it's because you're. just holding on to money it makes no. sense yeah I I know that's gonna that is. something to bring up in therapy you. said you haven't talked about finances. yet talk about the mindset the trauma.

around the childhood when it comes to. this and. pay. this debt off there's no excuse for it. to have taken what was it I I don't. remember at this point 500 600 700 away. from you this year so far I don't. remember something stupid. um something just absolutely ridiculous. so that's gone now the mortgage uh 6.625. this is where things get interesting you.

what I want at this point because your. minimum monthly payments are down. drastically on the debts well let's. actually see so five thousand. 482 minus the 1099 and minimum monthly. payment debts okay cool 4 383 divided by. the 8 000. 466 you had in so your needs is Now 52. so just over so good you keep your needs.

where they are now what we still need to. do at this point now that our minimum. monthly payments are at about. or uh mineral monthly payments are gone. and the extra money you have is about. three thousand five hundred let's just. say three thousand five well no with the. car you're actually it's close to four. thousand dollars so four thousand. dollars we need. your six month emergency is twenty six. thousand two hundred and ninety eight. dollars okay minus that by the six. thousand dollars you already have in. there. or eight and a half months into this.

process at this point twenty thousand. 298 is what you need divide that by the. now four thousand dollars you can put. towards it. that's an additional five months so. what are we a year and a half. no not even just over a year yeah it's. like you know 13 and a half months or so. something like that so I mean that's. incredible. in just over a year if you just. sacrifice and stop doing the Bulls yeah.

and actually use some of the money. that's there all that's gone except for. the house and you have a fully funded. emergency fund right that's like a no. type thing so no do it get that did. immediately. from there then yes 52 is going to need. to keep your needs similar but. yeah I got that mortgage do we want to. usually I'm a let's not pay mortgage. early type person okay. I was but I mean you're encroaching. seven percent and if the stock market on.

average since historic performance has. performed seven to eight percent right. now S P 500. you know historically 10 points five. percent with dividends reinvested but. betting all on one thing yeah that's why. it's called a bet so I don't know so. going by the average the stock market. seven eight percent maybe it makes sense. where okay we're definitely. we're taking that 10 that you're doing. up to twenty percent yeah cool 20 now. you have 30 percent.

28 of your income left over for fun. yay let's do 18 of that towards fun okay. um a little more if you want to but. maybe just when we can when we're not. going crazy and when we're budgeting. well take that extra 10 maybe throw it. towards the mortgage because what you. can do and maybe this is this isn't this. isn't. well. probably shouldn't even say it but I. would do it from my real estate. investing side of things but for an.

average person probably not smart about. what you could do is when when and if. and most likely when rates go down again. at some point the extra Equity you have. in your house you could pull out like 80. percent of it. um of course you need to get to a 20. Equity position at that point anyway and. then you can invest that cash hopefully. at a low rate but either way I won't. even do that I wouldn't even think about. that I'm not let's not even get into. that world that's something I am. thinking about in the current mortgage. situation I would like to pay the house. off early well there you go as much as.

possible you know maybe put 10 of your. income towards an additional Edition. I've already got 30 000 equity in the. house good so but I've I don't the way. that I was brought up they said. five percent. it's like five percent equity position. yeah something like that okay uh yeah I. mean no no let's hold each other unless. totally chill my mine just went down a. rabbit hole because I I like to think. what would I do and you know if I run. new shoes and with the investing that I. like to do and take advantage of good.

low interest rate. um leverage on real estate and 30-year. fixed not the Crazy Dave Ramsey stuff. where he went bankrupt on 60 day notes. and then tries to equate that to 30-year. mortgages I don't know why but I love. you Dave I really do sorry. um. random random uh shots fired moment but. yeah for the average person yeah I mean. you'll pay it off really an extra 10 of. your income on top of that maybe you cut. it to like 15 years yeah.

that's that's the main reason for coming. on here is I I want to use that money. to where it's the most useful and that. way I free up this money to where I can. make my money work for me. yeah but obviously I'm not I'm nowhere. near that point right now well. especially as a potential future married. couple you're incredibly behind on. retirement so we're doing at least 20. you might want to get to 25 we might be. cutting from fun. still a bit going forward uh you say.

that's fine but then let's look at that. statement like we're living it to the. extreme so. which is in the past I'm not going to. judge about it anymore but if we're. thinking about where we were and where. we're going it's hard not to at least. consider where what we were doing just a. couple weeks ago. but either way yeah that's something you. could do you could do like 10 on fun an. additional 10 on paying off the home and. then an additional eight percent. contributing towards retirement to start. playing catch-up because she once she's. done with school and everything and you.

know pay off higher interest bad debt. she's gonna start needing to do like 25. 30 to start playing catch up how old is. she she's 30. yeah definitely then. because she's lost the best steak decade. of her life right for compound growth. and she's already starting to lose her. second best decade so I mean that's. where we are that's where we are how you. want to finesse the math around that in. order to hit the goals is what you want. to do 50 30 20 that's the classic 50 I. need 30 a month 20 on investing or. savings after you have a fully funded.

emergency fund after all bad High. interest rates. deaths are paid off so that's what I'd. say follow this budget pay it off in 13. and a half months have a fully funded. emergency fund at the same time and then. start catching up on retirement pay down. the house early if you want to and then. be able to live a little from there keep. taking care of your mental health bring. up the finances and therapy all right. and then um also get on the same page. financially if you're not already with. the future spouse before you get that. right all tied yeah any final thoughts. uh I appreciate you have me out.

um it's really eye-opening I found some. stuff that I. turn to Blind Eye to so now I just gotta. you know keep myself in line so it's. gonna happen for Garrett really just. needs to buckle down and start taking. care of this he's in an okay position to. start really hammering this down he just. needs to stop the [ __ ] and no more. fight. locations well in the terrible deaths.

Hammer Financial score for Garrett he. gave himself a one out of ten spending a. budget I could not give it any higher. than a zero come on that five thousand. dollar vacation while doing this debt no. collections no IRS debt but really bad. credit card debt still so one out of ten. retirement definitely behind but it's. still starting to contribute 3 out of. ten emergency fund good amount of money. saved up but a lot of it has to go to. the debt so I can't give it a higher. than a five out of ten real estate yes. we're in the real estate game now that. he has a house but kind of a higher. interest rate compared to where a lot of. things are not going to dock too much.

because of that but didn't have much. down so not a very high Equity position. plus it's pretty expensive for his. income including the disability benefits. so no higher than a four out of ten that. brings his total Hammer Financial score. to a 2.5 out of 10. check out all the. resources I have Linked In the. description below like a very high yield. savings account where their sign up. bonuses up to 250 or we can put five. dollars in acorns and get a free five. dollars by using my links thanks for. those paid Affiliates as well and don't.

forget to follow my Instagram and. Twitter thanks.