He Can’t Even Afford His Minimum Monthly Payments | Financial Audit

I'm Harold I'm 22 I'm based out of. Houston Texas and this is financial. audit what do you do 22 year old in. Houston Texas for a living I work as a. physical and occupational therapist. assistant oh okay cool did you do any. schooling for that no straight out of. high school straight out of high school. very nice and what do you make doing. that right now. um it depends during the week I make. 1750 and. on the weekend I make 18 so it's about a. fifty percent difference okay so yeah. nothing nothing crazy how many hours a.

week do you work. um it varies but I want to say right now. the average for the foreseeable future. is about 30 a week 30 30 yeah okay you. feel that's enough not full 40. um the problem with the 40 is that there. is no full-time position. um there's one but it's currently filled. and it looks like. it's going to stay filled most of the. employees are PRN which means they're as. needed so our hours vary yeah but how do.

you feel living on just that. um because of my living situation with. my grandparents I feel okay do you live. with your grandparents okay but I know. that I won't sustain me for very long so. what do you live with your grandparents. um just because. um family situation my parents really. aren't in the picture so I've been. living with my grandparents for about 20. years now oh okay okay so they pretty. much raised you then yeah essentially. very nice so.

free rent free living okay cool do you. plan to move out yeah heck yeah I don't. want to be a burden on my grandparents. okay I assume before you move out you. want to get out of a disgusting amount. of debt yes okay yes well before we jump. into your finances I mean I want to hear. from your perspective as honest you can. how do you think your financials stack. up to now what what score would you give. yourself. um like a Caleb Hammer score I have. Hammer Financial score a hammer.

Financial score. well I want to say. definitely a one if I'm being generous. probably zero generous wow okay all. right because I'm being really realistic. um but I appreciate that I think with a. couple of good steps potential to really. get out of it you know if I just think. so I think so okay. yeah so I've let's get let's give myself. a 0.5 average I'm out of ton dang so I. mean I've gone through it a bit you.

definitely have debts why have you. gotten into such Insanity. um well which debts I mean I have. multiple kinds of debts so no maybe. we'll approach that question when we get. into them. okay well we can start with your. checking account yeah sure. here check it again yeah started with. 1500 ended with a thousand two hundred. so more out than in yes. let's see so I want to look at your. paycheck so we had pay here on the first.

then on the 15th so 1400 then a thousand. yes. and that's all the pay you had so does. uh is that the normal range like. approximately the average of 1250 ish. every two weeks so no it was as you know. copyrighted at this point a unique month. um. um so before this month. there it was only so technically we need. three people for the position I'm in but. we only had two so I was working nearly. every day.

um so my paycheck reflects that now I. that was six to seven days a week so. that was the good one that was the 1400. yes and now now I I did the calculation. I think for the total month I think I. want to say I make 1600 before tax for. the total month no no no wait but that. doesn't make sense on the 15th you got. well this is well I'm speaking so it's. gotten worse yes because I work less. okay. so the hours went from what to what so I.

think I was averaging about. 90. well no no I want to say 45 a week. 45 to 50 a week 9 out of 30. why what. happened why'd they cut you uh we hired. somebody. do they need to hire somebody. um I think so I think in general for. people in my position they want us to. have 20 or less hours so what did you. say you make now and what was that. before tax or after tax now uh at this. current moment 1600 before tax and I. make a four percent contribution.

to your 401k is a match to four percent. yes I have about 2 500 so it's 100. Returns on yes. 1600 before taxes on a monthly basis. good thing you don't have rent yes you. want to be able to afford anything is. this what you want to do because I have. a feeling we're gonna need to talk about. your career choices here. um so I am someone who is very very. non-committal that changed recently. um. now I want to get into accounting but. the way I'm gonna get there is super. weird.

um because currently with this amount of. pay I have no way to support myself in. school so. um right now a really good opportunity. I'm looking at is to become a. firefighter for a couple years all right. that's absolutely all over the place all. right let's look at your checking. account yes we talked about what came in. but we have debts yes we sure do. we sure do you've been we talked. beforehand you've been watching this. channel for two months yes. you want to get out of the deck correct. I say I do but I'm sure my actions don't.

reflect that but yes I do want to is it. a joke. um well no I'm I really do want to but. I'm having trouble controlling my. actions so that they alignment for my. intent are you cope laughing is that. what's happening. um. yeah I guess but I stopped laughing no I. mean you can do whatever you want I just. want to make sure this isn't a joke to. you no not at all make sure that you're. actually trying to do something with. your life because I mean we're going to. the Dollar Store constantly I'm just. dropping a few bucks it's not crazy but. then we're going to McDonald's and we're.

doordashing dollar store again the Dina. uh Chick-fil-A McDonald's doing some. cafeteria thing cafeteria cafeteria. Burger King door Dash and More Dollar. Tree we're just stopping there every day. it feels like McDonald's and JCPenney. and McDonald's and Dina some Flex thing. some store cafeteria again and Burger. King Netflix subscription cash flapping. out 300 Raising Canes door Dash door. Dash. I mean you're spending your crypto owner. what was that 300 door dash out or uh.

the catch up so my cousin needed money. um for his bills he paid me back though. he did pay you back I was gonna say you. don't have money for your lack of bills. even because you still have debt yeah. okay. he paid you back that's a risky. situation in general but no it was it. was it was but what are we doing all. these again let's see here cover up the. number all the green is BS spending. unnecessary spending and there's another. page as well if you're trying to get out.

of debt you've been watching the channel. for a couple months they people put. their situations on display just like. you are thank you for putting your. situation on display for other people. make sure you're subscribed I love you. and what are you doing spending all this. money you know it you know it's bad. that's that's true I do know it's about. so what are you doing. the statement isn't reflect that but I. have made changes recently I definitely. don't spend if this statement doesn't. reflect it then how are we making. changes well then it doesn't exist but.

all those changes happened after the. statement we're like a week and a half. into this month yes so this barely. happened so there's no really history. supporting it but it has changed what. has changed. um I definitely eat out nearly as much. um recently I talked to my cousin's dad. and before I used to be paycheck to. paycheck uh now I am a month ahead on my. bills so for this month all my bills. already paid for. um well that's good but you barely even. your Bill's just a debt you don't even.

have rent or anything no I don't I just. have um it's not fully the debt there. are some like Insurance things that I. pay for it yeah yeah. okay well maybe things have changed for. a week and a half. let's just assume that they're the same. for clarity we should because a week and. a half is nothing in terms of long-term. stability and change for sure so this is. just crap and then doordashing we're. doing like the most expensive version of. getting food yes yeah.

and we have the deaths to pay off I'm. just glad you have a balance that's at. least over a thousand which is extremely. new I used to finish yeah like two. months I used to finish each check with. maybe like before I got my new check a. hundred dollars now of course this is in. a month where you got. more than double what you say you're. bringing in now yes so good and bad with. that but yeah. what's in your checking account right. now. um I want to say a thousand dollars a.

thousand two hundred I paid off some. bills since then okay okay. wait we immediately get into that. because there's no savings is there do. you have savings no nothing no emergency. phone number oh well I do have it's not. savings but I haven't taken it out. because I don't want to risk spending. the money. um it's about a thousand dollars it's. the last paycheck that was given to my. mom she's no longer alive but it's the. money that's owed to her so it goes to. me.

I'm sorry to hear about that. it's okay thank you though. and you want you haven't cashed it. because you don't want to spend it I. don't want to spend it I want to have a. reason for that money before I take it. out I just don't I don't want it just. existing. but that other than that there's nothing. well guess what. starting with a Visa Platinum what's the. first thing on it oh my feet oh worse. than doordash it's a late fee why we're. talking about current on bills why'd you.

have a late fee this was like this was. two weeks ago late fee. um I had a late fee because I'm not used. to having so many bills and I still do. it manually and I forget all the time. well you had a late fee the previous. month as well yes I forget all the time. what are we doing here Chinese Cafe. Chinese Cafe doordash Burger King late. fees Galore cafeterias we keep doing. that and Burger King and Amazon and. Burger King and Amazon and doordash and. doordash and doordash interest charges.

constantly and doordash. the interest on that card isn't too bad. Amazon Prime. some five star thing that keeps popping. up and yeah the interest isn't crazy. because you're not holding the craziest. bounce but that's because you basically. have no available credit on here anyway. yep. cocoa Amazon Amazon Burger King Academy. Sports. what is Oda on this credit card. currently.

um. currently. I want to say 350. okay so it's 332. somewhere around there. I'll call 350 just to be safe. but. it looks like the the cap is 500. yeah. what are we doing are we spending money. on a card that basically you're already. at the cap we're not and this is. destroying your credit card I'm not. spending money on that card anymore but. but yeah again all this change you're.

talking about is like oh I'm gonna be on. the show in like a week so I'm not gonna. do anything this week that's not any. more that's you took a week off of being. of just going crazy with money sure. that's fair to say so that's not anymore. let's stop saying any more okay you took. a week off I took a week vacation from. terrible spending habits yes anymore. what's the interest rate on this thing. uh 2.2 percent wow okay interesting for. a credit cards that's interesting 30. minimum monthly payment. okay.

and of course we're spending on it. not anymore I actually cut them up. you cut them up very good thank you. positive positive good good all right. we have a Discover card yes this one is. the bad one but I have done some things. for it no there's no good one. I have made some changes not sure how. you'll feel about them but I have. uh what for a week well no specifically.

to that card I did a card transfer. um but the balance on that I want to say. is a thousand five hundred the balance. on here now or I haven't spent anything. on it since so it's that oh so okay so. it's still at the current balance of a. thousand seven hundred yeah you did a. balance transfer recently yes with the. 87 minimum monthly payment we've lost 25. in interest and guess what fees charge. of 41 but even guess what more you did. an 80 80 payment towards it and spent.

139 I will never understand this on this. on anytime someone says across from me. they're like I've been watching you for. a bit I want to get out of that but I am. still spending on a card that I am. paying less towards on a minimum monthly. basis what are we doing why are we. spending on it please just help me so I. can at least understand where your head. is at so we can overcome it by the end. it blows my mind. um regards to what the card why you are.

spending money on a card. um I guess it was because I thought it'd. be better to spend it on a credit card. but you're losing interest on here how. does that possibly make sense 25. and guess what late fees we're having. late fees that's gonna piss me off. that's gonna piss me off 41 of late fees. within this statement so no we don't. just spend it here because it makes more. sense to spend here when we're losing 25. 000 interest in 41 because we're not. paying on the car at all even though the.

minimum payment is only 87 and what are. we doing we're doordashing McDonald's. we're doordashing McDonald's we're. doordashing McDonald's we're doordashing. McDonald's number doordash or McDonald's. all these thirty dollar things. even if this was money you had to spend. I'd rather be in the checking account. but you just doordashing McDonald's yeah. and then not paying off the account so. again why because that logic uh does not. make sense okay so my financial literacy. started very recently I want to say. extremely recently I didn't know how.

interests work until maybe four days ago. whoa I knew I knew that this amount of. Interest was high yeah but I didn't know. how it worked specifically. um up until recently I didn't see the. value in a dollar I didn't believe in. money. um what does that mean they didn't. believe in the money. um I didn't see the value in having it. outside of being able to pay your bills. but after watching your videos and you. talk about like retirement and being. able to afford emergencies I started to.

realize like you know how important it. is to have those things. um so my spending habits reflect an. inability to understand how money works. or unwillingness that makes sense I'm. very Revere thank you thank you for. admitting that that gives us a place to. work off of that's fantastic I Now. understand why you're doing this and I. don't have to beat into you the. craziness of this because you're. actually able to provide a reason yeah. so thank you that you that is the.

average American where many of us are. not top Personal Finance in schools many. of us are not taught personal finance by. our relatives because they have no. personal finance scores we just go we. spend money we're just dumb with money I. was you currently are for sure for sure. and hopefully just like me years and. years ago now you will also get to a. better place and we'll put together that. path to get to a better place. you didn't understand interest how. interest worked until just a couple days.

ago yeah I had to look up a YouTube. video okay help me calculate it yeah. all right so you know 20 interest on. terrible bad terrible. um Seventeen hundred dollars yeah. and then your Discovery you also sent. something that goes back oh that that's. the full month that's the rest of the. month oh it's the full month what did we. do we added doors a few more times so. no more spending on here you cut it up. okay you cut it up yeah but it's still. probably you you could use it on your.

computer or Apple pay all these things I. deleted it off my computer yes good it. doesn't exist anymore these credit cards. do not exist also doordash does not. exist in your situation. yes I agree with that I don't even want. you to drive to McDonald's and buy it. because that's too expensive and you. can't afford it right now. but definitely don't be doordashing. that's fair that makes no sense but you. can't afford to go out to eat anyway now. the secret name is this the whole. transfer no so.

um I forgot about that so the Synchrony. Bank is my parents more or less or my. grandparents. um same financial situation as me except. they're a little older so. um I had to finance the washing machine. for them it's in my name. not. that or I don't know what we're gonna do. um but yeah so it's so it's a pair of. washing machine at that point what I.

would want you to do is rent a washing. machine and dryer for a few months you. can do that yes you can do that. I did not know I do but yeah I haven't. because I have a weird situation in my. smaller condo in terms of the unit I. didn't really want to buy it for this so. I rent a unit okay it's not that much. you could well this is just yeah but the. interest on it of Education the interest. on it is not bad it's promotional period. I would easily be able to pay it off at.

the minimum payment before interest. starts being charged. yeah but you have this minimum monthly. payment of 435 135 and for someone who's. like barely bringing in any money for. sure like these minimum monthly payments. are starting to starting to stack up and. you finance your grandparents. just to watch. and dryer. yeah. what what do you think I was going yeah. that's all right Finance. oh.

because it's not even I mean it is yours. you own it you know yeah right yeah do. they know that uh yeah but I'm not sure. what I would do with the washer and. dryer I mean it's just in our house now. you're gonna take it to your place when. you get it. oh. um well as it already comes with one. yeah I guess but I'm not sure they are. going to rent their own. they don't have the money for it what do. you mean they don't have the money for. oh I get it no no I mean no that makes. sense.

that's the whole reason I financed it so. they're on like limited income Social. Security type stuff. uh my grandpa is my grandma works though. okay. so by not unfortunate are they using. their money in bad ways. um do they ever go out to eat. yes for sure then they can afford to. rent a washer and dryer um I understand. that that's as easy as the math works. there yes but the thing is is that. they're the type that aren't willing to.

uh like my grandma has a lot of stress. issues okay so they're not willing to. and I want to cut back. um I'm not sure they know how okay. and honestly honestly I say this in the. most loving way possible damn this is. not your responsibility if they are not. willing to cut back to take care of. themselves it is not on their grandson. to put his entire financial future on. hold. for them. I love giving back I want you to give. back I want to give back to those who.

helped me as well and others you cannot. do that while you yourself are in a. massive hole that you're struggling to. climb out of yeah and you don't go. deeper into the hole to help people who. are not willing to help themselves. I would have understood it if they were. on a super fixed income and you have. looked at their budget and literally. every single dollar they have is just. going to their survival but you said. they cannot afford it yet they are going. out to eat they can't afford it they are. choosing they go out to eat on a credit. card.

well that's even worse yeah again they. are choosing to in the situation that I. hold I'm not going to talk about their. finances and stuff like that because I. don't have it in front of me they. obviously need their own Financial audit. uh I mean they're just living like an. American typically who lives I mean it's. just normal unfortunately but. doesn't mean it falls on you it doesn't. fall on me but a lot of my family is in. the same situation and even though my. situation is bad I'm probably in the. best position currently as it stands my.

grandparents. at least my Grandma's not gonna be able. to retire at all so if I don't help her. there's never anything you know their. mortgage payment is or rent or whatever. it is. um I want to say the house is paid off. I want to say that but a lot of them and. your dad is getting social or uh Social. Security yes if how old are they. um 70s and 60s. well which one's the 60 my grandma. Grandma she's retirement age basically.

if she works until around that 70 72 you. know I think oh what is the exact year. for full retirement benefits isn't it 66. in nine months or something like that. is it they raised it recently I think I. know I don't know it off the top of my. head it again it doesn't really matter. for our conversation but. okay either way if she works for a few. more years and if she has a paid off. house and she can take advantage of the. tax laws in Texas when it comes to their. property taxes in the retirement age.

I see no reason why they can't extreme. that extreme debt what does extreme debt. mean. um 20 20 grand but she makes less than I. do 20 grand I know but when they get to. the point of full retirement and they. have no payments to take care of and. when it comes to housing and they can. live on a minimal food budget I could. get them into a situation where they get. out of twenty thousand dollars in debt. relatively quickly. so again it just comes down to almost an.

enablement of some way but even worse. because you are going further into debt. and you're right sure you could pay this. off by doing minimum monthly payments so. guess what. late fees. yes so what the what do you mean I. can pay this off with no issues late. fees you're missing payments so clearly. this doesn't make sense that's fair. that's fair I can't excuse that yeah. um.

um but outside of that oh my car in. school then that's the rest of the debt. I think for them or no for me for them. um I don't know this doesn't make sense. this doesn't make sense. this doesn't make sense. [Music]. when you have your place if it doesn't. come with a washer and dryer you are. taking this you are taking this because. you're not going to pay for two washer. and dryer systems you're not going to. pay for renting yours or buying another.

one while also paying this one off while. climbing out of a hole doesn't make. sense. give back when you're in a better place. yes absolutely let's do it but climb out. of the whole first dude. that's fair. and don't enable their bad choices. um. um um what they're using credit cards to. go out to eat. they'll make those choices regardless of. whether or not I help them my what I try. to do is to stop them as much as. possible no no what you're doing okay.

Grandma and Grandpa if you need help I. will help you need to follow these if. you're if you're not following these. guidelines that we've laid out then I. cannot help because I'm just enabling. bad behavior boom. well they follow it I don't know but. it's not on you if they don't that is. their personal choice that they are. making for their own life okay it has. not fall on you that is and it shouldn't. fall on you anyway. I agree but don't butt come on take care. of your own life dude please no I I. agree with that. um it's just.

[Music]. you'll see like with some of my bills. like. not every bill I pay uh there's other. bills that I pay that aren't mine. technically you barely even pay your own. bill bills late fee on every account. we've looked at so far yes. what do you mean. stop paying other people's Bills take. care of your own dude if they don't pay. it I don't know who will that doesn't. matter it's not yours you can't even pay. your own bills your bills come first. before anyone else's that's fair.

um. I guess like the you have a great heart. and good sympathy but you need to look. at this from a realistic perspective. you're throwing your entire future down. the drain right now because you're. missing payments you can't do that you. matter too of course I mean I think I. believe that I just don't do it through. your actions then. you have a car and you have cared up yes. the current balance of 16 870 that.

sounds correct yeah with a minimum. monthly payment of 286 yes. what is the term on this. oh you're not gonna like this 60 months. no 60 yeah 60. I can't believe I'm celebrating that but. there's been things. I had no idea how it worked before. granted when I uh did the so. the cars my sister's car took it off her. hands because I needed a car.

um but the interest isn't bad on it the. interest is 2.99 how much 3.99. and I did the calculations and even if I. paid it off quickly I would save only. about a thousand seven hundred yeah no. with interest rates like that yeah so it. depends on a few other categories a few. other things and we'll talk about that. but what is the car uh 2018 Mazda 3. okay. the sport it's the regular one mileage I. want to say 93 200. okay it's up there.

crazy but not. perfect but it's pretty middle of the. road. no we'll talk about that then. we also have student loans yes so you. don't have a degree you started doing. this job after yes I went to I went to. Boston University for two years and I. dropped out because I didn't know what I. wanted to do what were you studying. international relations useless degree. useless I wouldn't have known I wouldn't. have nothing to do with it well. technically there's all depending on the.

cost of the degree a degree in general. does have a return on investment oh yeah. for sure but even if it's a useless. degree but it does depend on how much. money you put into that degree yeah to. calculate that return what are the. interests do you know the interest rates. once the pause resumes which is coming. up quite soon. um I want I remember looking at it a. long time ago I tried to look at it. before this but they're all zero percent. I think it ranged anywhere from three to. six. okay now that's probably gonna be a. minimum of Abandonment around.

in 75. yeah 175. unless it's income based which no it's. not it's four different loans yeah all. together yeah. anything else. do you have anything else is there any. um car student loans credit cards no. that's it. washing machine. that's it. no.

I think your taxes I mean there's going. to be some withholding technically but. by the end of the year. I would adjust it with because you're. not gonna own it you're basically not. going to owe any taxes with the. different things that are happening. right now if it's this on a yearly basis. uh so make sure. look what you're withholding make sure. not too much is being taken away by. withholding yeah. withholding your taxes oh you know make. sure that the um. I just want to make sure that not much.

has been being taken away because you're. not gonna know how much attacks um I. think this income stays consistent I've. done the calculations I think it comes. out to be 12 I think. um it's not very much yeah I'm sure you. could find ways uh. yeah 12 on like what only a few thousand. of those though it's not gonna be dude. you're not gonna pay much in taxes. thousand six hundred dollars a month. um last year I think I made like 24. Grand I. got somewhere else yeah we're going down. to below 20 now.

yeah if I keep this up yeah either way. I'm just gonna say like a thousand four. hundred hits your account on a monthly. basis right I've made that estimate I. think that's fair that's 400. after. different holding and then you do four. percent towards the 401K which is 100. return so and beats any of these dots so. that makes sense to do but. this is what kills him okay the minimum. monthly payments under debts and this. includes we don't have to include the. college the debt repayment but that's.

about to start off in just a few months. anyway so. oh we're gonna included Your minimum. monthly payments of 708 dollars for your. post tax and 401k contribution 50 of. your income. your entire needs category there is. completely maxed out just paying the. minimum monthly payments oh that doesn't. even more debt. yeah. no well this is worse than. anything it should ever be and anyway. this is a hard dude.

um it doesn't feel that hard what do you. mean it doesn't feel the heart because I. love my grandparents. it doesn't feel that hard though we're. not paint we're getting late fees on. every account we looked at except for. your car it's not that hard it's clearly. just not cementing in your brain what is. actually happening. um I know that it's not sustainable but. I I don't really need much in terms of. material things I'll tell you what you. need to actually pay the minimum. monthly payments on your debt and you're. not even doing that. okay that's.

a feel heart oh what what are we gonna. I mean like my life I don't feel crushed. by it I mean I might eventually be but. currently I'm not if it doesn't feel. crushed by it then I don't the reason I. get so intense is to try to make sure. people understand how crushing this. actually is and you don't even. understand that if it doesn't feel. crushing 50 of your income on a monthly. basis is going to the minimum monthly. payments of which you're not even paying. on many things. the idea of you paying rent isn't even a.

possible possibility in your. in your no I don't think. I'm thinking I would have to make a lot. more no you're gonna have to live with. your grandparents forever well at this. rate yeah yeah that's right. but I like to change it I would like you. to change it too but if you're not but. that okay. I don't think you understand what I'm. hearing you're saying it doesn't feel. crushing it doesn't feel bad it doesn't. feel like it's a lot if it doesn't even. feel that way then how are you gonna. have a fire under your butt to. completely sacrifice everything in life. in order to actually get out of this.

crappy situation I mean when I feel like. it's not crushing I mean day to day. um I don't feel. I know that I need to make a change but. I don't feel like. um. other than being able to move out and I. guess gain a higher sense of. Independence I don't feel like I'm. missing much out of life. um but I do know that if I stay at this. current rate especially if anything. happens I won't be able to handle it I. won't be able to control anything so the. spiral could start it's just that in.

terms of my day-to-day. um. you said one of those cards went to. another debt consolidation or something. a balance transfer yes where is that I. don't have that no so that that happened. very recently. um it's too it was actually based on. recommendation I applied for the city. Double Dash card with their promotion. for zero percent off on a transfer so I. tried to do the math and I said okay. well if I move money to this card I'm.

zero percent interest I'm Gonna Save on. the interest what did you yeah what was. it the amount I moved yeah from the. Discover right yeah so is the Discover. still at 1700 though right now. um that balance or was it a balance on. top of that stuff so I the the. application was weird. um so if it if it went through because I. I have the card I don't know if the. transfer already happened but if it. hasn't happened I can just do it but it. was going to be the 1700 yeah well it's. not I only got a credit limit of 1 200.

okay but it's that money though it's. nothing on top of that 1700. uh so you're gonna transfer as much as. you can from that 1700 right yes to save. online okay but it's not anything on top. of that no it's just that money okay. okay so and I should be able to pay that. the debt still stands or yes okay. until that do you buy your own groceries. well I mean I was buying my own food. like the the faster you are to cook at. home in meal prep. I have you need to buy your own.

groceries or yes I do need to buy my own. groceries because the uh the stuff they. eat I don't tend to eat so I buy my own. groceries. um and I did the budgeting and I think. 10 to eat what if you did eat it though. if I did eat it. um well they don't my grandma's doesn't. cook consistently that's why they go out. I don't care the groceries that are. there can you have them or do you need. to get your own I can have them yeah but. usually I can't have them yeah.

I can I'm gonna give you very minimal. grocery budget then because you're gonna. take advantage of what's there and also. what you need okay. but guess what you're not touching a. restaurant dude or a doordash you can't. I need to make sure you fully completely. understand that before you even go into. a breakdown of a budget of any kind yeah. I know all my money's gonna have to go. into my debts do you pay for health. insurance. no I'm on my grandma's Insurance what's. your car insurance. um. uh Geico but I don't only pay my own car.

insurance huh I don't I pay multiple. people's insurance. that's what I was talking about here we. are what what what what is yours alone. it's mine alone is 168 dollars. 160 yeah or once. hold on let me check I have everything. budgeted out. [Music]. um. your generous heart is killing me. uh I've actually gotten that before I'm.

too giving. um for my Geico. 169 cents. 160. yeah. what are the other conferences you're. taking advantage so I pay for my. grandparents and my. um aunts and it is total uh. I'll stand on here but it's. it is on here oh sorry it is uh 309 you.

can't afford that you can't afford it. you can't afford it it doesn't exist you. can't afford it starting to a day you're. having a tough conversation with both. those groups saying I cannot afford it I. can't afford it literally my money. doesn't exist to afford it I'm going. deeper into debt you cannot afford it. mathematically it does not work yeah I. know I can't afford it okay you can't. afford it so you're having a. conversation with them and if you don't. do this if you don't do this then. there's no point in this conversation. because none of this exists unless you. clear up that 309 but you call them uh. you talk to them sit down whatever is.

the best situation to deal with them and. you say I cannot afford this I'm going. to try to get out of debt and actually. live my life I cannot afford this. anymore I'll take care of it for one. more month that's it that's it no. nothing else I don't want to hear. anything that is it there's no other. choice. but what if the I just want to hear what. your take is on this what if the. situation is the same for them. I don't give a I am talking about you. and improving your own life this debt is. impossible to get out of right now at. sixteen hundred dollars a month.

because guess what all of a sudden that. money is already gone basically it's. gone. if the situation is for them I will talk. to them about how to improve their. situation but you simply cannot afford. this. it doesn't get any more basic than that. okay math doesn't lie it does not lie so. you have the conversation will you have. that conversation will you actually do. this if you don't there's no point of. even continuing honestly um yeah I'll do.

it you have to do it not I do it I will. do it I will do it uh I'm not sure if. they'll agree though it's not their. friend. yeah I don't agree for you to uh stop. paying my own bills that's not their. choice. you still. and they will choose whether or not. they're breaking the law by driving. without car insurance or not. it is not their choice for you to pay.

for something whether or not they agree. with that I don't give a sh. they can put on their big boy pants and. take care of themselves. you do not need to subsidize their. entire life. going out to eating swiping credit cards. all the time them and you but them come. on. no this is done I don't care if they. don't agree to it you need to take care. of yourself. okay. I'll do it. you have to or there's nothing.

groceries I'm giving you 200 a month. because you're taking advantage of what. oh that's not bad no it's not my budget. is 225. okay well it's 200 now so 160. for your own car insurance 200 for food. do you have to share the cost of. utilities or anything no they don't make. me pay for anything okay probably the. reason why well I know but you're you're. not taking care of it anymore if the. conversation of you pitching in to deal. with utilities the property tax. something like that whatever it is. that's a valid conversation and we could. talk about the amount then but you are. not helping especially your aunt.

but not your grandparents either. gas how much you spend a month uh. [Music]. the so last month I spent. uh I guess. I spent. 59.25 60 bucks. do you take care of your own phone bill. internet anything like that oh internet. oh internet yes 71 I don't uh phone bill.

now. okay they can take care of the other. utilities if you're taking care of. Internet yeah I mean okay what's the. internet again 79 71 71 okay. then good old deck comes in at. a minimum monthly payment of 708 dollars. death. death death. and you can't spend anything outside of. that that's it that's where your money.

goes there's nothing you're allowed to. spend money on outside of that it. doesn't exist doesn't exist okay there's. nothing else that exists outside of that. might feel unrealistic I don't get your. life sustaining is unrealistic right now. financially speaking so I don't give a. fulfills unrealistic right now in order. to survive you need a thousand one. hundred ninety nine dollars on a monthly. basis just to survive. okay good thing you make that much bad. news. you don't have much left.

that's 85 86 86 percent of your income. of your post tax. [Music]. you have. essentially two hundred dollars two. hundred dollars on a monthly basis to. start attacking this crap. so you know that a thousand dollars you. had which one the Thousand hours you. haven't touched yeah congratulations. you're touching it you're touching it. your Visa is paid off oh I don't care I. don't give it no don't make any noises.

do it it's the nope no that money has a. lot of sentimental value okay that's. fantastic I'm not sure if I it's because. it's I don't have much for my mom and I. I mean it in terms of the use of the. money it is good use but I I had. envisioned using it for something. important that would stay with me dude I. promise this is important I know it's. important and this will stay with you if. you don't pay this off that's a thousand. dollars is a make or break because you. only have two hundred dollars extra on a.

monthly basis if you stick to this and. what's my confidence that you stick to. this I don't know because we have. nothing to show that you could. potentially do it that's right yeah. do you think your mom. would want you to use this money to. change to turn around your life yeah. yeah if this a thousand hours will have. more impact on you now getting rid of. high interest debt that is disgusting. than in any potential investment in the. future. yeah I mean no no Investments 25 I get.

the sentimental value I want to respect. that. even if you think about it in a. Sentimental way the way I talked about. it though this and that money will have. a greater impact. than investing it in the S P 500 later. saving and using it as a very starter. emergency fund using it as an extremely. start saving for a home. this will have more impact now than any. of those times. that's fair.

um I'm sure I'd have trouble doing it. but I'm also someone who follows logic. so if if you want to follow logic then. there is nothing more logical than using. it yeah kind of against the numbers. um I get this fundamental value. maybe find something you could do where. Maybe. you use this a thousand dollars now to. get out of really bad debt and then do. you have like a little brother or. something.

only child uh cousin I have cousin uh or. even just like a friend or like a. student that you know when you're in a. better place and your investment's on. track you do like a 5 000 check to. someone who wants to go to college you. know like okay in my mom's name here you. go. something like that you used this a. thousand dollars to start getting your. life on the right track and you turn it. back by giving away five times more you. know. years down the road when you're in a. better place. there's a way to turn this into.

something better but right now you just. the thousand dollars is unfortunately. not a ton of money but what's. unfortunate is it's a ton of money in. your case. yeah I mean. yeah I'm not used to working with a lot. of money so yeah you're right this is a. lot of money to me. um. yeah I guess I'll do the paperwork to do. it I get it I do but I recommend it. because all of a sudden that's one. credit card gone and guess what you can.

put the remaining seven uh 650 bucks. towards the Discover card there's only a. thousand hours left on the Discover Card. even with the balance transfer you put. it wherever yeah um would it make sense. to put it all towards the Discover card. then oh we're just in your situation the. snowball makes sense because your debts. are laid out in a way where the balances. are relatively increasable throughout. them there's not like a massive debt. with an insane interest that makes sense. to attack first or anything like that so. what we do is we get rid of that because.

it clears up thirty dollars a minimum. monthly payments and then the Discover. card again you put that 700 towards it. and then over 600 bucks you have a. thousand hours left on the Discover card. now you only have 200 actually on a. monthly basis that's going to take quite. a few months to pay off so what I. recommend in the meantime car 2019 a. 2018 car you're going to be driving. ubereats you're going to be delivering. for Jimmy John's I don't care what. you're doing you're driving Uber you are. working only 30 hours a week now maybe. even less. you need to go slam those work hours.

somewhere else anywhere I don't care. Barista I don't give a crap service is. desperate to hire right now. they're like the industry that is. desperate to hired you're going to take. advantage of it and you're going to work. every single second of your life because. 200 is going to take way too long to pay. off that a thousand dollars and then we. haven't even talked about the 30 000 and. then the 16 000 and the 13 000 you need. to bring in in extra thousand two. thousand dollars a month that you can. start throwing at this crap because. right now.

in this situation with where this debt. is we'll pretend oh actually well I mean. the student loans it six percent I mean. we'd want to pay that off so. um I do plan on uh well I don't plan on. only working this job for that much. longer. but with where this debt is we'll talk. about that in a second but with where. this debt is with the extra money you. have now it takes 90 months and that's. not even paying off your car because. you're that's not even your car that's.

just your student loans the synchrony. and what's left of your discoveries. eight years nine years uh it's not a. decade seven and a half ten and a half. damn seven and a half I'm gonna be. almost going into your 30s at that point. and that would be without thinking of. schooling or anything that's just bills. that's just taking care of this debt not. including your car because I didn't put. the car in there. like my monthly car payment yeah that's. not even including your card debt that. was just your student loans synchrony.

and what's left of the Discover after. the 600. so it's even worse with the car. but guess what with this car I'm doing. minimum monthly payments until it's paid. off because it makes no mathematical. sense to pay off early and it's a. relatively good car just do it make sure. you're taking care of it but the. interest rate minimum wage payments. until it's taken off you get this extra. job or you get the firefighter job where. you do something else within you wanted. to be accounting and we'll talk about. that in a second but. what I would do is then you're paying. off the Discover card as quick as. possible then you're paying off the. synchrony as quick as possible if you.

bring in these extra few thousand. dollars you can pay these off within. like five months and then the student. loans once the payments are resuming. which by that point they will have been. resumed whatever is over four percent. you're paying off as quick as possible. okay. whatever is four percent or less minimum. monthly payment until they're paid off. four percent okay then you need to save. up probably at least like ten thousand. dollars as an emergency fund after that. as quick as possible and then and only. then can you go have McDonald's you.

don't get to Once until all that stuff. um. okay uh when do I start thinking about. moving out. after the emergency fund which is 10. grand. or whatever so the high interest rates. are done it's probably going to be a. year and a half that's if you're. bringing in more money I'm being. generous in a year and a half it could. be that very long period of time to get. another job you mean to increase my. income and get get an extra job or. change that career path we talked about. the firefighter now you also talked.

about and this is what we can talk about. but you talked about getting into like. the accounting space yes. there is going back to school but we can. also look at getting into the world of. uh getting into companies helping with. different things through certifications. have you looked at course careers the. company that works with me that I work. with oh I've I I've seen you mention but. no I haven't like check it out it's in. the top of the description check it out. see what certifications they have that. might apply to something you want to do. that's a cheaper quicker way to get into.

the workforce in a qualified way where. you make more money doing something you. like to do. so I highly recommend checking that out. also without the credit cards I mean. while I'm on the topic of the companies. I work with you should definitely use. the Fizz that debit card it was. especially good for people your age and. it helps your spending on certain. categories helps build credit scores. things like that but you're not using. credit cards anymore it's a debit card. so use that check out course fears and. that's good you know okay my credit.

score is actually not too bad only. because I only say them because they. actually apply to you. yeah it's below 700 so we still wanted. to go off over time but but just barely. 6.98. just barely either way. what this comes down to you you got to. get a better job new career path or just. work your butt off right now with a. bunch of jobs and then you can do all. this including saving them for emergency. fund. in a year and a half couple years or we. can do nothing and it'll take until. you're 30 if not longer I definitely. want to take until today I'd rather not.

because I want you to get your own place. but you can't get your own place so a. few things are now this situation is. dependent on a few things one you have. to tell your grandparents in a nice way. to go for themselves. um in a nice way that's that's the Caleb. Hammer way of saying things of uh uh. you're not paying their car insurance. same with your aunt and then that. washing machine situation when you move. out you're taking it you're not paying. for theirs if you want to help support. them down the line do it I'm for it once. you're in a better place. so you need to have that tough.

conversation and then the income thing. figure that out and then put every. single little thing that you make that. is not your car insurance your 200. groceries sixty dollars of gas internet. and minimum monthly debt payments. anything outside of that just literally. goes to paying off the debt small it's. the biggest and then. emergency fund and then we start. investing 20 percent. of our income. every month every year. and you know you're already doing four. percent so you just got to do 16 more. percent but either way that's what it's.

going to take you cannot have any fun. that costs money until then so how fast. you get out of this is up to you and how. hard you're going to work that's true I. mean that's life in general I want you. to be realistic with me and the audience. you know yourself walking out of here. everything I just said what is actually. going to happen. um. see. based off of my historical track record. I definitely have been someone to where. a fire gets lit under me and you know.

maybe a month or two I stay on track I. stay on track and then it starts to feel. pointless and I give up but. um well I can't say that oh you know. this time would be different because. there's nothing to support that other. than my word. um that and we will hold you accountable. because you'll come back for an update. I'll make you. and we'll yell at you if you don't do. this. um yeah so. I think. lately I've been making a lot of changes. that normally I envisioned to be.

impossible. um so realistically speaking. um I think I will do the things but it's. gonna be a very Rocky start. um because I tend to be I tend to be a. very slow starter so. I would definitely be on this path but. probably a slightly slower rate just. um I think I need to get like my. motivation or guest Drive. um I can be very lazy very very lazy.

um so and I know that. um so I don't want to say that I'm the. type of person to go balls to the wall. you know. um but I definitely I mean I hear your. advice I came here for a reason. um and I'm not just gonna disregard it. and I will listen just I'm not sure. we'll be at the same rate we talked. about but I don't want it to be much. slower like. um. maybe slightly behind but what I fear. when people don't go crazy like two. years is you going crazy though and. you're getting a much better job when I.

find people don't go crazy it just it. just extends it essentially forever so. it's really your choice in there I do. want to one add one other thing when it. comes to this grocery stuff um this this. is. do not take personal offense to this and. I'm going to ask a couple questions how. tall are you. oh I am five seven five eight five seven. five eight I've gotten both what do you. wear. I've actually been losing weight. um two 37 last time I checked okay well.

as a fellow thick boy I I get it. when you're eating at home and stuff. like this and you can choose your own. groceries and not doordashing McDonald's. every single day this is also going to. improve uh your overall health yeah your. overall energy and just outlook on life. in general so that's another really good. thing to consider in this overall thing. yeah it's just an extra benefit of what. can come with this but it's an extra. obstacle to get over because overcoming. that the food convenience and that you.

know fast food lifestyle and I get it I. love the grease and the sweets yes I get. it but overcoming that and overcoming. the financial thing at the same time. very difficult so make sure your support. system is good talk to your friends seek. therapy uh with the health care you have. do what is necessary to make sure you. are sustainable on this path long term. yeah that seems solid advice any final. thoughts. um final thoughts I've actually been. thinking about this about what I would. say. um.

just yeah I mean I know the situation. looks bad I know that you know a lot of. people a lot of times they get the. advice they don't do it or they go back. to their old ways. um but I really aim to do something. different and take the advice to heart. and really try to understand what it. means to be uh financially sustainable. so yeah. and uh. just thank you for having me on pretty. much it when we do a checkup. two of those credit cards should be gone. we should start be making progress on.

that synchrony at a minimum some. let's see okay I hope I live up to those. expectations. for Harold there are a lot of things to. clean up there but I'm happy he was. honest about where he thinks his score. is he gave himself a one or a 0.5 to be. optimistic I gotta give him a hammer. Financial score zero out of ten right. now you got to take care of yourself. before you can take care of others I. want you to take care of others and be. sympathetic but you gotta be in a better. position he can't even pay his own bills. right now late fees late fees late fees. and if we're having late fees missed. payments on debts you cannot have.

anything over a zero out of ten for a. hammer Financial score make sure to. check out all the resources in the. description below and don't forget to. follow my Instagram and Twitter thanks.