He’s Single-Handedly Throwing Away Their Future | Financial Audit

Hey, how's it going? My name is Jeff. I. am 20, about to be 21. I'm from the. Houston area and this is financial. audit. Oh, you're young. Okay, so what. do you do for a living in Houston? I am. a sleep technician. So like for sleep. apnea, CPAP, that kind of stuff. I'm the. guy that hooks you up. Yeah. Interesting. So you go to people's. houses? No, so I'm out of a clinic. We. stay there overnight. People come in and. then we hook them up, sit back and watch. them sleep all night, see if they got. apneas. Okay. Okay. Mhm. Well, that's cool. That's a good job. That's obviously helping a lot of people. and a lot of people need that. So that's.

really good. What are you making doing. that? So I just started doing it. full-time. So I haven't gotten like an. actual full month of full-time pay yet, but it should be all right around. Yeah, yeah, like this month. But it should be. right around like 38, 4,000 a month. 30. 3,800 to 4,000, yeah. Oh, okay. Six. Let's call it 39,000. Is that before or. after taxes? That is before. So we don't get taxes. taken out at all. Oh, is it contractor work? I think. technically, yeah. Oh, okay. So have you been paid yet?

Yeah, uh-huh. Of that pay, have you set 30% aside for taxes? Why. not? So I've been working here for about. 4 months, 3 4 months. And for the first. 3 months I was working another job. I. was only doing that part-time. So I was working that other job. It was. at at an IT place. I was only working. maybe like 10 15 hours a week there. Um but I was trying to make that my. full-time job. So while I was working. there, I was barely making enough to. support rent and food and all that. stuff. So I didn't have nearly enough to.

also put aside 30%. Not the IT place, no. That was that was. an actual full-time. you were getting. You didn't need to set aside money cuz. technically you were getting paid by. them. But I was still making way more money. with the uh the sleep tech job. I was. making like 1,600 a month just working 2. nights a week. And with the IT place I. was making maybe like. No, I'm talking about your part-time at. the sleep place, right? Right. little while. Was that contractor or was that. Yeah, same thing. And you haven't set. aside anything? No. taxes that would. come out would probably wouldn't have. been ridiculous. There's I mean there. aren't extra taxes for uh contractors,

but even so with the part-time stuff. your taxes would have been relatively. low. But now. Mhm. coming in, let's just call it. $4,000 a month if we're. on the higher end, $50,000 a year, you're going to have taxes and I want. you to be ready for that. So why. So you didn't have enough money to. survive? Mhm. Cool, sympathize. Right. But now with this last paycheck of the. full-time, you know what's coming. Why have we not set any money aside? Honestly, I So the last couple checks.

I've gotten, I've literally just put. them straight aside and I have not. touched any of my money. I've tried to. not be spending stuff because I knew it. was coming onto this show, so I didn't. want to like mess with anything. I'm not. spending it all, so I still got a little. bit left. How much? What's on the side? Right now. I have like. 800 900, but I think I got paid today, so I should have like 2 grand. That's. not setting everything aside. No, it's not setting everything aside, of course. I still had to pay for food, yeah. Well, I've only been paid like. twice since I've been full-time. Okay. Okay.

So what would you give yourself you. What's your financial score? Zero to 10? Yeah. You say that, probably. Mhm. All right, so. This is a good amount of debt, dude, for. someone who's just 20. I didn't cuz you. know, with a beard you can never tell. where someone is in the age range. And. looking at the debt, I was not expecting. a 2 0. Turning 21 in a couple days. Thrilling. So with the Discover, $965.39.

with the $12 minimum Oh, sorry. $12 of. purchases. $41 minimum monthly payment. Fees. $30 of fees. Does that not feed a whole the Discover. card? Is that. $20.79. What's the fee for? Waterburger. We purchased $12. That's fine. Total. fees, $40. I got I've never had this card, but.

$30 fees total this year so far, 40. Total interest lost this year, 136. Do you know why you're getting fees? No, not entirely sure. Cuz you started with over the credit. limit. Oh, yeah. Why were you over the credit. limit? And then even if you make a. payment, why are you then going and. putting Waterburger? Not even a good. burger. At least put a good burger on. on now. [ __ ] that's not a good burger. Why would you Why out of everything you. can do.

Buddy, you were losing fees cuz you were. over the balance. Why are you putting. more money on it? That's a good. question, yeah. Well, give me a good. answer. Yeah, yeah, I really don't got one, you. know? Oh, come on. Why'd you go and. swipe that damn card at I needed to get. food. Needed to get food. I didn't I. wasn't I haven't been going to the. grocery store. that food. Okay, you're taking a little bit far. I. can I can I can deal with you saying. that it's bad, but come on now. I'm not. brown. I mean, dude, we can't just be. going and swiping. at fast food.

We're losing fees cuz we're over the. credit limit. Mhm. Mhm. Mhm. Yeah. Okay. Mercury. Okay. I just need to know. I will go. more into this, but. we'll go more into the debt. Why do you. have so much debt at 20, dude? Yeah. What have you done? Man. So really. this is all. other than I mean, not like 26,000 is on. my car. So I mean, the rest of it is all.

credit cards. And all of that is because I tried to. move out whenever I and my roommate. weren't necessarily perfectly ready for. it. Okay. Um basically the biggest chunk of it it. all really started whenever I was out of. a job for about 2 months and my roommate. had been out of a job. Yeah, well okay, that's not all of it. Probably about like. 3 4 grand all happened within that 2. months cuz I was putting all of the. rent, all of the food, everything on. just credit cards. When did you try to move out? Last.

October. Okay, so you're 19. Mhm. What were you not ready? You just didn't. have a good job? I had a decent job. My roommate had a. kind of shaky job and then he didn't. have a job. So, you know, for the first. few months he was getting money from. like his parents or family or whatever. trying to you know, make his part, but. that's not sustainable. So you know, I. had to start picking up his half or the. entire. rented per room, it was rented per. apartment? Yeah, yeah, yeah. We just got a. two-bedroom apartment that we split. But yeah, there was a 2-month period.

where neither of us had a job, so. was that conversation with the roommate. when you were taking on all the bills? I. mean, it we had the same conversation of. me just being like you got to figure out. a way and then there was no way being. figured out. So I had to. fired? Yes. So I was trying to quit. I wanted. to quit, but I didn't want to just like. leave them cuz they were short-staffed. We had stuff coming up, so I was like, okay, I'll quit in a month or two or. something like that. But then like after. a couple weeks they said that my head. wasn't in it anymore, so they just quit. me. They just fired me. Uh I was a QC at. a like piping industrial piping.

type business. So I just like checked the orders and. sent them out to the trucks and stuff. Okay. And then you just underperformed? I mean, I guess. I'm not sure. My mom. thinks they were trying to make a. What's it called? Like a. make me a message, them firing me be a. message cuz I wasn't like trying hard. enough. I guess they were trying to get. the rest of it. Yeah, I know. It didn't. make sense to me either. All right, buddy. On this thing, we got. your balance went up. Your balance went. up. So it's just like ah, credit line is.

$4,900. You're already over it. You're over it. by $17.55. So it was at the credit line by $0.55. Like you were almost there. You made a. okay, halfway decent payment, double the. minimum monthly payment. Lovely. Then. you went and purchased $359 stupid. dollars. Stu Why? So I'm not positive on that, but I do. know at one It was either with this card. or the Apple card. I put a bunch of. money towards it so that I could use it.

for groceries. Cuz I was at the grocery store and I. didn't have money on my Discover card. Oh, yeah, groceries? Is that what you. did? Buddy. You groceries. Well, that specific instance. I'm not. saying in general. I definitely haven't. got Yeah. In this specific instance, what are you. talking about? That's. groceries. Maybe it was $100 of this. You were DoorDashing McDonald's. You. were Sonic Drive-In and you went to. Waterburger. Got some taquitos. Got some. taquitos, Waterburger, Chick-fil-A, RFC.

restaurant thing, taquitos, Waterburger, Waterburger, Waterburger. Dude, I mean, that's just incorrect. Why. Why Why come here and just start bull. I'm not trying to bull But you lied. You. said you went there. You paid off the. thing so you could get groceries, of. which I would sympathize with cuz I'm. not going to have you starve on the. street. But you say that and then. out of the 1 2 3 4 5 6 7 8 9 10 11 12 13. 14 15 16 17 18 purchases on here, only.

five were actually relatively necessary, potentially. Yeah. Do you even care? I very care. Yes, sir. Very care? This isn't very care. The last month and a half I completely. stopped caring. This is. Why? Because I'm so so far into it and. it's just easier to not care. I mean, I. know it's not an excuse, but that is. the explanation. I mean, like I said, whenever I was out of a job and I. started initially building up that debt, that's why it got so bad because it.

wasn't really that bad. It was. manageable whenever I had a couple grand. or whatever. I could make that work, but. the job situation with my roommate never. really got better. So I continued having to struggle or. whatever. And then when I see that big. balance, I know that I'm not going to be. able to pay it off anytime soon cuz I'm. struggling with other stuff, so I just. continued piling it on. $188 minimum monthly payment is wild. Yeah. $141 of interest being squeezed from you. on a monthly basis. 32.24%. I haven't seen a rate like that. That's. crazy. $523 in interest this year so far and.

fees of $60.92. Over the limit. To what? Interest charged cash advance. You were cash advancing? I think that. was whenever I I was trying to do rent. We were never cash advancing. Yeah, I know I shouldn't have. Like, okay, we're trying to do rent. I. get it. But you're choosing DoorDash and. Sonic and Waterburger and Taquitos over. rent. You weren't caring for a bit and I get.

why. You explained it. Oh my gosh, $925. on a 32.24% interest. of cash advance. I mean, okay, you. didn't care. Your girlfriend's in the room with us. right now. How long have you guys been. together? It's almost 5 years. 5 years? That sounds like uh something is like. actually going on in terms of. relationship. So I assume a future is. relatively likely. I mean, she's here so. you guys don't hate each other. Okay, what about her? What about you guys? Do.

you care about that? Yeah, that's why I want to get it. figured out. This during that situation. when you were doing all this and this. this was just now and this was was the. end of last month. Yeah. Um it's going. to impact your guys' future together. It's going to hold you guys back. It's. going to prevent you from doing a. marriage that you might want to do like. a if you wanted to do something large. Yeah. It's going to prevent you guys. from retiring together. It's going to. prevent you guys from paying the bills, putting a down payment on a house. This.

is holding you back. So whatever care. you might not have because it's just. easier to just put things aside for a. moment. You're making it harder for her later. and you guys as a couple. That card is bad. Not good. That card is evil. I need you to chop up. the cards, be done with the cards. They. don't exist. They're horrible. Dude, if. you're going to use a card, use. something like the Fizz card, man. You've heard me talk about it, but it. acts as a debit debit card. So at least. you can take advantage of the credit.

score stuff, but it acts as a debit. card. Just do that. I feel disgusted. with you still having these cards. I. need you to close the card. Apple card. As far as store cards go, it's a halfway. decent one. Doesn't make sense for you to have it. $84 minimum monthly payment. on a balance of. 2,467. The balance only went down by like 80. bucks. Lovely, which corresponds to that. minimum monthly payment. So let's see what's going on here.

And we're we're purchasing things. Smoke. Shack. We're going and getting $40 from. Smoke Shack, whatever that is. Is that. like Yeah. vape it up? Dude, okay, also just bad. addiction for you because Trying to. quit. Uh yeah and I I respect that. That's hard. It's so much easier That's. Especially with all this stuff. I've. tried to quit so many times, but man, it's not easy when I got all this stuff. hanging over me. And I can't just say. quit for your finances. It's a it's a. very addictive thing, but just again, when thinking about the future of you.

and as a couple and together, maybe. children, who knows. We don't know what. the long-term consequences of the vape. type stuff is. We don't know that. Not a. lot of research has been done on that. itself. So I don't know how much interest is. being accrued on here, but it's probably. gross. So yes, I would work. uh you know, through mental health. mental health as well as whatever else. is necessary to try to break that. addiction just even for your health. The.

health is more important than the. financial aspect of it. But. even if you're going to purchase it, let's not purchase it on debt that we. can't even pay off. Yeah. Yeah. So we have a car. Mhm. Okay, what is this car? It is a 2019 Kia. Optima. Okay, what's it worth? Have you ever. looked it up? Uh yeah, I I want to say Blue Book's. like. 18,000, something like that. Yeah. So. Okay, what's the interest rate?

I I think like eight eight and a half, something like that. Nothing insane, but. I can't believe we've gotten to the. point where we think eight and a half is. an insane. not? I mean, it was it was like 12. we've had people on the show like 25 and. that's just. disgusting insanity, but 8.5 is. certainly not even close to good. 12 and then I got to refinance, but. saves you a little bit. Uh. so you had a refinance. What's the term. on this? 72. Yeah. What is What's even the point I.

didn't know what I was doing when I did. that. Uh-uh. Nope. It sucked thousand. almost $200, $1,200 of interest away. from you this year so far. What's the. minimum monthly payment? 417. Ooh yeah. Do that for 72 months. Mhm. I want to take a brief moment to thank. today's episode sponsor SonderMind. As. you know, mental health plays a massive. role when it comes to overall personal. finances. And I like being very open. about my own struggles with mental.

health. Therapy has helped me immensely. and I want to make sure anyone who wants. help is seeking help can get the help. they need. And that's where SonderMind. comes in. SonderMind is about getting. the right personalized support to help. you on your journey of life. If you. don't have a clear goal in mind when. starting therapy, this mental health. care app can help you out. SonderMind. understands the power of the right care. with the right person at the right time. And finding a therapist with them is. easy. Simply visit the link in the.

description below, answer a few. questions about yourself and let. SonderMind find the right person for. you. And it only takes 24 to 48 hours to. be connected with someone who gets you. And luckily, they also accept a wide. variety of health insurance plans. And. if you prefer in-person face-to-face. interaction, then they have a wide. variety of therapists near you as well. So go to care.sondermind.com/caleb. or visit the link at the top of the. description below to get started today. Oh, another. another Discover card. Oh, no, this is a Discover checking.

account. Right. So we've gone through all your debts? That's it. Um no, I also have Let's So. we just went through the Apple card and. the Mercury card, right? Apple card, Mercury card, Discover. and your car. I also have a Credit Karma. checking and No, no, yeah, yeah, yeah, that's that's all my debt. No, I have a. Synchrony Discount Tire card that I got. because I had to get four tires and I. didn't have any money to get them. Not having an emergency fund is an. emergency.

And it was right around $1,000, dude. What's owed on it right now? Um I want to say like 915, 920, something like. Minimum monthly payment? I think like 60. Is it zero interest? I got no idea on that, to be honest with. you. I know it was for like a certain amount. of time, but I don't think it stayed at. zero. All right, let's take a look at your. checking account. So we had a Discover checking account. started and ended with a pretty similar. balance. All our money goes in, all our. money goes out.

It's kind of what we're looking at. And if it wasn't enough already, dude, if it wasn't enough already, if you. didn't want to give me a heart attack, I. mean, it's happening already. Apple and. DoorDash and Tropical Smoothie and. Apple, McDonald's, Amazon, Taquitos. Bill Zetty? Oh, that that was a recurring thing. I. canceled that. I don't I don't even know. what it was, but I canceled it. Apple, Microsoft, DoorDash, DoorDash, Taquitos, Apple, Amazon,

McDonald's. All these Amazon or all. these Apple subscriptions or purchases. you need to stop. Whether it's like. Apple Pay, DoorDash, I don't know. Just. I need to figure that out, yeah. McDonald's. Prime Video. Taquitos, Amazon, Cinemark movie? Let's. go to a real movie theater and Cash App. out a lot of money. I think that's to. the girlfriend. Mhm. That's. and. that's weird. I also do that.

Yeah. Just like. There's a lot of money that goes out. towards that. It's not okay. How much on a monthly basis? Monthly, probably like. 300, 400. a joint operation? Nope. She does I mean, she No. No, it's. me. Health that use motion, DoorDash, Amazon, Prime Video, Netflix. We have. every subscription known to man. DoorDash, Affirm. Oh, Affirm, what are we affirming? So is.

that another debt? Do we have a balance. on Affirm? Or is it done? That one I don't know. I've seen the I. know I've seen the Affirm payments and I. really. Yeah. Yeah. Chug order. Apple. Apple. Keep coming up. Cash App and out. Oh, there it is. There. it is. And more DoorDash. So you get high and. then you order DoorDash. Exactly what. happens. Yeah. And then the rest is like we're. doing things like Acorns and stuff like. that. It doesn't really make sense to be. doing when we have these kind of.

interest rates and debts cuz you're not. going to beat it. You're just not going. to beat it. That actually saved me like. a month ago. I needed an extra like 200. bucks and I had like 200 saved in. Acorns. Well, that's yeah, not what it's for. Yeah. Cuz that's going to Acorns later. That's going to an IRA. So you're getting penalty on that money. anyway. Oh my gosh. Okay. So and then we have a. credit card. checking This is other spending account. or something. Yeah, I want to get out of. the Discover checking account. I don't. like that card, so I.

I don't know. I use SoFi. It's good. Okay. Good for savings, good for checking. 18. cents. That's what's in here. Lovely. Every second of your life is just. stuffing fast food down your throat. McDonald's, Amazon, Popeyes, Taquitos, DoorDash, DoorDash, DoorDash, DoorDash, Waterburger, DoorDash, Waterburger, and Amazon and Waterburger, Waterburger. Cheetos, DoorDash. Buddy,

it it's it's it. This is just. crazy. This is lack of discipline, this. is lack of care. This is just you. [ __ ] around and not giving a single. [ __ ] about your future. What's to say you're going to change. that? I mean, this was just happening. These are recent statements. Sure, okay, set you set set a couple hundred bucks. before you came on here. Lovely. As you. said, because you're coming on here. What's.

I mean, I I can lay out a budget, I can. do stuff, but what's going to say we're. going to get anywhere and you're going. to be able to have the behavior and. discipline to get you to a place Are you. high right now? No. No, okay. What's going to get you to. Your eyes are a little red. Just. wondering, sorry. It's okay. So, I just. Yeah, what's going to get us? So, like I said, man, I I really. can be disciplined. I really really can. be, especially financially. Before I got. into all the stuff, my credit score was.

like a 780. Like, I got it it was like. way up, and I was doing fantastic. I was. using I wasn't just doing like a couple. small purchases and then like I was. actually running up and then paying it. all off every single month. And my. credit score like shot up. With these statements, makes it I can. very clearly tell and I was talking to. Chanel whenever we were driving up here. I was like, man, he's going to he's. going to get really upset. It's just because I saw that balance and. I just completely knew that there was. like I don't know what the heck to do to. start going after it. But, if I have a. plan laid out, I'm absolutely going to.

stick to it to it. sat down and created a plan? I've tried. And? And it hasn't worked. Then why is me making a plan going to. So, I tried during Here's the I'm moving. back in with my mom. So, after this, I'm. the lease is up October 6th. So, this. week I'm trying to move back in with my. mom. So, um. I'm not going to have like a rent. payment or anything like that. Before. whenever I tried to like set aside a I. tried to make a budget, set aside. however much I could put towards. whatever, um I wasn't making enough. I wasn't. making enough on top of I mean, I.

probably was also wasting too much, but. you know, I wasn't making enough to. start really knocking away any of that. debt. So, I just never it never stuck. Like, I was spending like a hundred. bucks maybe. There's always a way to find just more. ways to spend money, though. It's uh. Okay. Okay. I mean, we can we can We can. try. I want to try to have hope. I'm. just upset for your situation, upset. about the debt. Yeah. I want you to move. Okay. And let her. come in.

Hi, how are you? I'm good. Good. So, I'm just talking into the. microphone. Right. So, you look good, don't worry. So, just lean forward a little bit, but. I want to hear from your perspective. just. You guys are not married, we don't have. combined finances and everything like. that, but. looking through this and looking through. the lack of discipline and care that has. happened, being together for five years screams. okay, there's a potential future. Mhm. How worried are you about all this? Is.

this awakening to you? Did you know? Yeah, so I knew he. spent more money than he should, but to. this extent, no, I didn't know. But, my word uh yeah, obviously. But, I do know he does have like the. discipline. um. to pick himself out of this hole he's. created. Okay. What do you think this situation means. for your guys's future as a couple?

Um. This is going to take a lot for him to. dig out of, a lot of sacrifice and work. No, I understand. And until then, like. we're going to stay as boyfriend. girlfriend, you know. I'm not um. planning on getting like. sharing finances if this is still going. on, you know what I mean? Yeah, very. smart. still in school, I still work, um. I'm still. taking care of myself, and. once he picks himself up and I can see. that.

you know, he's doing good. So, a large. percentage of his money goes to, you. know, and you don't partake, what are. your thoughts on that? Um. What are my thoughts? I don't. I'm not not cool with it, you know? Yeah. But, I definitely don't um. agree with it 100%. Okay. You know, like. And then finding out how much was going. how often. know till right now?

like I had an idea, you know? But, until right now, what he Would you. say like 300, 400 a month? Like, that's. a lot. That's actually crazy. And. especially when we're over credit card. limits. Yeah. So, like for If it were. for me, I'd be like, stop right now. But, Do you think he's addicted? Little bit. I mean, little bit, yeah. Yeah. I know this has. been uh for a very long time we kind of. all thought there was like no addiction. possible when it came to it, but then.

obviously these last like five years a. lot of studies have been done showing. that there can be addictive tendencies. to certain people who have a hard time. stopping. Um even though of course it's less than. like many many many many other. substances, but if you think I mean, have you guys had conversations around. that? Have you guys had conversations. around finances and how have they gone? When you said that, you mean like. Smoking weed. Smoking. So, yeah, we've had conversations about. that. Um whenever I've told him to stop, like he will. And Why does it start back up and how. long?

Why does he start back up? I'm not sure exactly why. Uh but once he's like. once he'll ask me like, what about now? I'll be like, sure, whatever. And then after that, it kind of spirals. out of control. Um and about finances, I do tell him, you know, like, first pay. off your credit cards first, no matter. what. I do tell him all these little tips and. all that, and he's like, oh no, I will, I will, and um he was doing really great. until he decided to move out, until his. roommate and he lost his job. Then all.

the debt spiraled out of control right. there. And this was This happened within. the last year or so. Yeah. So, before that, like he was better with. money than I was, and he was teaching me. stuff. Um. So, yeah. That's how that went. Okay. All right, we can switch back. We. can switch back, but thank you for being. for willing be being willing to share. Welcome back to the hot seat.

So, I don't know, what do you think. about all that? She's, you know, she'd. love you to take control of your. finances, it sounds like, for the. future. She thinks you have the. discipline nature around it, but then. also at the same time we've also seen, okay, you'll quit smoking for a bit. by request, but then we spiral out of. control. So, the discipline around that. Now, that comes with more addictive. tendencies than of course a lot of the. budgeting things, but even still with. that, lack of discipline that sounds. like has gotten us to a point where we. can't sustain.

a lot of. good behavior. So, I don't know, I'm a little nervous. What. are your thoughts on everything we just. talked about? Yeah. Uh. I mean, it's it's tough. It's definitely. tough, because I mean, I want to quit. I've been wanting to quit. Um and I've. tried, you know, multiple times, but you. know, I'll get like a week in or. whatever, and then I'll just go and. smoke just a little bit, and then I'll. be like, okay, I can't smoke every. single day, I'll just smoke like a. couple times a week. And then it turns. into every single night whenever I get. off work, you know what I mean? Like, it's. it's just a slippery slope that I've.

allowed myself to continue falling into, and then once I got into all the debt, I. really just stopped caring about. Nicotine I still did care about, but. weed especially, I just I was like, whatever, man, I'm just going to If I. smoke, I don't think about it nearly as. much as whenever I don't. Okay. So, housing, that's 34%, which is. certainly on the edge of comfort when it. comes to your spending. Not necessarily. compared to your income, we'll see that, but for spending it's pretty rough. Transportation, 21%. Necessary food was.

only 6.3%. Eating out, in around 20.2%. of your spending. 20.2% of your. spending. Unknown shopping, which is out Amazon, we don't even know, that was four. basically 5%. Different subscriptions, 2.4%. Gym, 1.7%, we're good with that. And. miscellaneous, let's see, miscellaneous. it was like the smoke shop and Cinemark. and extra at the gas station, that was. about 1.4%.

So, only 6.5%. of your spending went to actually paying. off debt. 6.5. What did I say the food. was? 20% of your spending could have. been going to paying off debt. You chose. You actively chose to go spend that. [ __ ] around, getting weed, doing. whatever, instead of paying off the.

debt. You're in the debt, but you could have. been making progress. You could have. been building a future together. She. said she won't consider combining. finances getting married until you get. your taken care of. You are preventing. your guys's self from actually forming. that beyond that bond and partnership. for the future, because you are choosing. 20%. 20% of your money, you are choosing that. of going to eating out and DoorDash.

That is what you're choosing. So, hopefully this is a the wake-up call you. needed, man, because that is bad. That. is rough, and that is selfish of you. Selfish. So, we have the we have I mean, there's ways. to go forward. The way that I typically do is we can. lay out a budget with your current. expenses and what we can put you on when. it comes to an overall strict budget and. we can try to get you out of debt. But. again, I'm a little.

afraid with afraid with past behavior, but. is that the path you want to go down? Yeah, absolutely. Uh-huh. All right, what's your rent or your. portion? So like I said, I'm moving back in with. my mom in my with my mom, so there's no. rent this week. Like October 6th is the. day that I'm moving. is ever owed. Mhm. Are you going to have. to pay anything for utilities or. internet give back at all? as far as I know. Okay, cool. Now, let's add up your. debt minimum monthly payments.

And how are you feeling? Cuz I know I've. dig dug into you, but I want this to be. a wake-up call. I mean, it's the. conversation that I wish happened to me. 10 years ago. So how are you how are you. doing? I definitely appreciate it. I. mean, I'm not going to say it's easy. It's not easy. It's not supposed to be. easy. And it will be not easy going. forward, but you're going to set. yourself up for success if you actually. follow this and you're going to have an. awesome life if you follow this. Now, gas $140. What about car insurance?

We don't have that. Yeah, so that's one thing I haven't been. my mom and my stepdad have been covering. my insurance just because I And will. they still? Right. No, and I don't want. them to. They still can, but I don't I. want to start paying that back. Okay. I mean, they don't like it's not. like they're completely happy with. covering it, you know what I mean? They're not like telling me you need to. start paying this, but they they're more. worried because it's like building up. and I'm going to have to pay it back. eventually, you know what I mean? wait, what? It's a debt to them? Technically, yeah. Because it's So it's.

to my stepdad. He's the one that pays. the all the the entire insurance plan or. whatever. And yeah, so each month it's like 350. that I was supposed to be paying for. insurance and I didn't pay it like after. the second month of me living there. So. it's been like 8 months of that building. up. What do you owe? Whatever 350 * 8 is. Okay, so you need to start Cuz you you. owe it back if you don't. way I need to start paying the 350, yeah.

At least doing that so it doesn't. continue to. Okay, car insurance? Yeah. 350. Mhm. It's expensive. Okay. Subscriptions we're cut cutting it out. Except for Well, does chat GPT help with. work? For your job? I don't think so. No, it did with the IT job. I probably. don't need it anymore. Okay, cut that. No more. I know it's non-traditional, but if you. guys go out to eat, she's paying. She's been doing that for the last year.

Well, are you sure? Because you eat out. every single day of your life on your. own statement, so. Okay, phone bill? Nothing. I don't pay. How's food going to work in the house? Um. I shouldn't have to pay for any. groceries or anything like that. I was. for my own budget, I was giving myself. like 100 bucks a month. Like just. it on there just in case and then. uh. toilet paper, toothpaste, all that good. stuff, let's give you 50.

Anything else you have to pay for? No. Okay. Well, I mean, I'm just because of it for. my own just. what I think you should do and it's. harder said than done. I'm not putting. in in anything for weed. I'm not putting. any in for nicotine. I it's not an. overnight thing. You work on that, but I. am not going to feel good putting that.

in a budget that I create. 1,430. 3,900 comes in. I need you to set aside. 3,900. It's in between the 3,800 and the. 4,000 you said. Need you to set aside. 1,000. $1,170 in a high yield savings account. I use SoFi high yield. That's where I. put my tax money.

But you need to start doing that now or. you're going to get [ __ ] by the taxman. come early next year. This gives you an extra $2,730. left on a monthly basis. 2,000. $2,730. $1,300 is what you have left over. Now normally I do a one month emergency. fund before getting things. kicked off, but you have a good safety. net living at home. We're not going to. do that. What I am going to do. is Synchrony is paid off immediately.

within month one. Let's just call that. month one being extra conservative, some. transitionary things. Okay, cool. Month. number two, we're paying off Discover. Let's again just call that month number. two. So month number three, what we're. going to be doing is we're paying off. half of the Apple Card. Month number. four, we're finishing off the Apple. Card. Month number five, we're doing minimum monthly payment on. some of these other things until they're. paid off and we're not putting a single. cent on them in anymore. It doesn't. exist. It's going to take 3 and 1/2.

months to pay off the Mercury Card. So we're 9 and 1/2 months. in. Yeah, so we're 9. Yeah, so we're 9 and 1/2 months in. Right? So we're heading into month five. 5 6. 7. So so. Wait. Wait, we're headed into month. five? Mhm, so 7 and 1/2 months is we've just. completed 7 and 1/2 months. Okay. The car.

Mhm. Mhm. There are choices to be made. Hey. You can. Do you want to pay it off or do you want. to finesse? I mean, I'm I want to do what's best. Whatever. Well, I don't know. It depends how long. cuz I'm okay with you being 20 and. taking a little longer, but uh as long. as you're doing it in an appropriate. manner. Now, the money you're going to have left. over is going to be a little more at. this point because we've saved some. money. So let's give you an extra 200.

So 1,500. left on a monthly basis now. It's going. to take 16 months to pay off that car. So 16 months plus the. This is for credit card people only. If. you're not a credit card person, close. your ears. People always ask me what. credit cards do I use personally or what. credit card should they use in specific. instances. I've partnered with. CardRatings to create specific lists of. good credit cards based on specific. situations. So we have the best no.

annual fee credit cards, the best travel. credit cards, the best secured credit. cards, and the best credit cards for. people who have no existing credit. So. to check out those lists that we've. specifically curated, head down to the. description below. Call it 8 months. So. 24 months, 2 years to get out fully out. of debt. 2 years of living at home, trying to make more money, uh you know, job shop, raises, stuff like that, working more hours. Whatever it takes and that could cut it.

down, but in this case, it would be 24. months. 2 years. Would you be okay with 2 years of this? Would you be okay with 2 years of this? Him living at home, not spending a. single cent on fun, 2 years. Yeah, honestly I'm fine. She says yes, she'll be in school. anyways. What do you think? 2 years longer than what I thought, but. yeah. What do you think? I thought Well, I mean, I didn't it's not too much. longer. I thought like a year, year and. a half. Why? Well, I don't know. I guess I thought I had to.

I'd have a little bit more than 13 to. put towards the car. set money aside for taxes or you're. going to get. I wouldn't even think about that. Mhm. Don't add IRS debt on top of this. Don't. add wage garnishing on top of this. What. you could do, what did you say KBB is. the the car right now? Uh 18, I believe. No, yeah. I would do this. I'd pay this. off cuz it's Whatever finessing we do, it's going to it's going to get you to. like. I don't know. $18,000 of that. So I. mean, you'll save a bit, but if you like.

the car, pay it off. So 2 years, pay it off. And then what. you're going to do from there and this. is before you can move out cuz let's put. in So we replace your debt payments for. potential rent. Let's say what you need to survive is. about 2,000. No, cuz Now, we're going to say about. 3,200 cuz we're going to also have food. and insurance and all this stuff. Well, then you have to pay off your. uncle, right? Or stepdad? Yeah, well yeah, that's the I also So I. owe my mom money. How much? Sorry. Yeah,

I forgot about I forgot about the people. debt. Yeah. So I Neither of them I owe. Chanel and I owe my mom. You owe her. money? Yes, yes. Unfortunately, it's terrible. I don't want to, but. do you owe her? 16. I owe my mom 18. 16,000? 1,600. Okay. 100. I want to give them both two grand back, but neither of both of them are telling. me whatever, you know, pay for. everything else. 16 for her, how much for mom? 18, technically. How much for stepdad? 350 * 8.

After the car is paid off after 2 years, you're not doing it until after 2 years. You're going to have conversations and. hopefully they'll be okay with it. I. assume she'll be okay with it. I assume. mom will be okay with it. Have the. conversation with stepdad. We'll figure. that out. But hopefully he's okay with it. You. should have an extra. $1,900 left on a monthly basis now. It's going to take 3 to 4 months to pay. back those debts. No interest just. unless they really want you to. 3 to 4.

debts. So a year and 4 months or 2 years. and 4 months to pay off all the debts. Now, what I need you to do, $3,200, let's just call your month to survive on. a low budget once you get a place, save up. No, I I did that wrong. I apologize. I. was looking at your income. I was going. to say that would be insane. So, let's. call it $1,700 to survive on a monthly. basis on a lower budget. Okay. Cool. That makes much more sense. That'll be Let's just call it $10,000.

You'll have a $10,000 emergency fund. So, after those debts are paid off, of. which you're not touching until you pay. off the car where 2 years 4 months in, again, you have an additional. $1,900 on a monthly basis. It's going to take another 5 months. 5 months to save up $10,000. Just over 5 months. And it was. just over 3 months on the last thing. anyway, so we'll just call this 5 months. since we rounded up on the last one.

Oi. Okay. So, 2 years 9 months. 2 years 9 months. until you can move out and you can have. fun money again. 2 years 9 months. You can make that quicker, probably. about 2 years in total if you. make a little bit more money. Okay. But this is with you setting some money. aside for taxes and I need you to do. that. But 2 years 9 months is a long time. Yeah. We've talked about discipline. We've. talked about how when it comes to. smoking and stuff, like you're good for. a bit and then you spiral. Mhm.

This you gave up because it was so bad. a few times. So, we start making progress. We start making progress, things get. hard. I don't I do not think this is. going to happen. I certainly don't want. this to happen. Well, let's just say in. the real world where things do happen, a. breakup happens. Okay, a breakup. happens. That's emotionally. very painful and losing a support system. and a lot of things. There's a lot of things that can throw.

this off and head back into the spiral. just like you do with weed, spiral of. going back into the debt or not. continuing the payoff method cuz 2 years. 9 months is a long time. It's a long. time for things to [ __ ] up. Yeah. You. really Just be honest. Be honest with. me. 2 years 9 months, do you think the. discipline you have and the lack of it. that you've shown. can be maintained for 2 years 9 months?

I mean, obviously I can't tell you 100%. certainty, but you know, I do think once. I start to see this balances kind of go. away and whenever I only got, you know, my car payment or whatever, I don't have. a bunch of subscriptions just taking. money out of my account. Like I don't. just got a bunch of different charges. I. don't even know what's going. Once I see. and I kind of have more control over it, cuz that's how it was before. Whenever I. was doing good financially, I had. control over everything. I knew where. all my money was going. Um and I was doing good with it. It was. once the stuff started to go out of my. control. It was like kind of too much.

for me to really know where every single. cent was going. That's whenever I really. stopped. putting as much care as I should have. been putting towards it. So, you started taking out debt at 18, right? Yeah. Yeah, I got my car. So, this is. going to take 9 months longer, 9 months longer than you've even had. debt Yeah. to pay off. Since you've gotten debt, this is going. to take at least 9 months longer. You. put any subscriptions in there still, keep the chat GDP,

and go out to eat here and there, get a. DoorDash here and there. You stretch. this cuz all it takes is just a few. little things. 2.9 months in a strict. life, you start that all of a sudden 4 5. 6 years. Yeah. 4 5 6 years. Your guys's. futures too way more important than. that. As a partnership, as a bond, whatever expectations are there. Not I'm. not saying you guys want to get married, but from the conversation, it sounds. like, okay, this is what's holding us. back potentially. Yeah. Now, you guys. won't be able to combine finances until. you get your figured out. Then on the.

addiction side of thing, man, I don't. know. Like I want to start I want to put. money in here for potential therapy if. that will help. Like or. whatever resources are available, I want you to take advantage of. And we. add therapy and I'm good with adding. therapy into a budget. Makes sense. But. that's going to stretch to like 4 and. 1/2 years. Yeah. All right. Well, like 3 and 1/2 years. It's It's a struggle, but the mental. health aspect is important to take care. of at the same time, especially since. you've added to these points where you. can spiral and then you've just given.

up. So, something I need you to take. care of. Um. I don't know. So, when it comes to the. addiction side of things, what are your. thoughts on that? Cuz that obviously. takes out hundreds and hundreds and. hundreds of dollars. Um let's And that's not even talking. about the health aspect. So, what are. your thoughts on that and then going. forward as well? Uh. I mean, I want to completely stop. I've. I've been wanting to completely stop. I. just kind of I don't know. Needed So, So, me and her, she's from. Argentina and we're going to Argentina.

uh this Christmas time-ish. Um so, I. wanted to be able to I wanted to not be. on any sort of vapor uh come that time. cuz I didn't want to be in Argentina. In November? Or December? December. It's. coming quick, man. Yeah. That's. So, what do you think's going to prevent. you from. the spiral as she called it. that's happened multiple multiple times? Honestly, the only thing I can think of. is busying myself with my finances, trying to just throw in myself 100% into. that. Cuz I mean, before I started smoking and.

everything, I mean, the main reason I. even did was because. my head kind of goes quick. My thoughts. are kind of always running, you know. what I mean? And nothing really slows it. down. Nothing ever really did until I. smoked for the first time and then I was. like, oh, okay, this is cool. I'm not. going a million miles a minute or. whatever, but. obviously, I have some I have a sort of addictive. personality. I get addicted to things. easily. So, whenever it's becoming, you know, a hindrance more than it's helping me.

emotionally or whatever, it's not worth. it. So, I got to stop. I have an addictive personality, so I. know to avoid things that have that, you. know, have potential addictive. tendencies to it in general. So, I mean, that's just smart to acknowledge and. avoid certain things in the future as. you're going forward as well. Cuz again, partnership and everything like that, she can't. You don't want to fall into. other things as well. Yeah. No, yeah. Yeah. So, uh okay. Well, then yeah, you could You. just got to be really strong about it,

man. Make sure you're taking advantage. of help where it is, whether it be. community services or whether it be a. therapist, anything like that. Take. advantage of the health insurance. You don't have health insurance? Uh are. you on your parents'? Think I still am, yeah. Think so. Yeah, through 26 or. until 26. I don't remember. But. Okay. So, what would be How many hours a. week are you working right now? So, uh. it's not It's just nightly. That's what. we get paid off of. I'm working 4 to 5. nights a week. Nights? What are the.

hours? We get there at like 7:00, 7:30. and we leave around like 7:00 in the. morning, more or less. Jeez. When are you guys seeing each. other, you two? Uh I mean, throughout. the day we're It It has been a little. bit less lately cuz she's been busy with. school and everything and I've been. trying to see. daytime thing and you're working at. night. I'm sorry to tell you guys this, but it matters for your future. But one. thing you can do to cut this. dramatically, that time from 2 years 9. months to. like ambitiously maybe even a year and a. half potentially, if you work work.

another job, man. There's industries that will that will. bring people on and just work right now. It'll be You'll see each other less. You'll have less sleep. I don't want you. to like avoid sleeping in a dangerous. way, but man, so you're working like 30, 40 hours a week right now, ish? Probably, yeah. Add an extra 20, 30. If. you can stretch it 40 on that, not. saying you have to. Well, I I definitely. don't have an issue with the hours, yeah. I mean, whenever I first started.

working, I was working in warehouses. like 60, 80 to 80-hour shifts for like 2. years. That's whenever I stopped and. gotten to sleep. What I'm saying is if. you're willing to, you cut that this. overall process and everything by a. year, by 9 months, by a year and a half. even. Who knows? Then you guys can get. on with your future even more. And so, whatever one you prioritize, the little. comfort now, being able to see each. other more, and doing this in 2 years 9. months, okay. Or get your guys's future moving full.

steam ahead by you just going crazy now. and paying it off, then that's chill. So, I don't I don't know. What are your. thoughts on that? I mean, yeah, that that sounds good. Like I said, What Which one? What do you mean which. one? Oh, the the the. I mean, the 2 years thing does sound. okay. Like that's that's doable. 9 months, basically 3. 3 years, yeah. I mean, yeah. I can. definitely pick up at least one more. shift a week at the sleep clinic. So,

that's another 200 200 bucks a week. Yeah, that will help. That'll help a. lot. Yeah. I mean, I used to do like DoorDash. and stuff. Maybe I could do that, you. know, whenever I get off cuz I usually. can't go to sleep for a couple hours. after I get off anyway. So, maybe I. could go and DoorDash like the breakfast. shift or whatever, try to make some. If. it makes sense, I'm not sure what. breakfast on DoorDash looks like. But if. it makes. If it makes sense, maybe wake up a. little earlier and do dinner before you. head in town. Okay, yeah. Yeah, yeah. But either way, if that if that. mathematically and economically makes. sense, then I'm down with that. Yeah,

definitely hustle and work. Have Now, you just need to have the. conversation with the stepdad and the. mom. Yeah. Yeah. Yeah, yeah. she's already here. She's hearing about. this for. the personal debts. That's going to be. after the interest debts. Yeah. You could You if you wanted to, you could cut it You could cut this down. a little. This is It's going to be hard. It's not going to make up too much and. the interest rate's actually going to be. a little higher. But you get rid of the. car by selling it, borrowing what's in. between, then borrowing what it takes to. get a 5 to $10,000 car on a personal.

loan. You're going to save a few. thousand dollars of having to pay off of. the interest rate is going to be higher. You're just going to attack it in. overall debt process, probably the last. step before the debt to people you know. in your life. That's one way you could. go could go about it. That might knock That might shave a few. months off of it. Mhm. It's not going to be dramatic. you think about like a consolidation. loan for the credit cards? I'm just Cuz. I thought about it, but I haven't done. anything. you to. Okay, potentially.

Potentially. But we've seen so many examples. recently. Mhm. I think a limited amounts. of people can do that. Okay. And you've. just you've gone over the credit limits, which is showing me you just have no. control. So, boom. Okay, you consolidate. them. You have all of a sudden room to. spend on the credit cards. You'll just. build those up again. We've seen so many. people do that on the show. Some people. can do what you're talking about, but. that's very risky. Again, if you're going to use a credit card, I'd use something like the Fizz card for. you. Okay. But.

other than that, I it's it's going to be a difficult long. process, and I hope you have the. discipline to get through it. I really hope so, but. Do you have any final thoughts, any. final questions? Nah. Not really. Just hope to. be able to come back in 6 months, a. year, or whatever and show you that I, you know, put my money where my mouth is. Yeah, I. think we said 7 months to pay off all. the cards before maybe before.

before the Mercury card? Um I'm not I. don't remember. But whatever that first. milestone is, let's get you to come back. then, and you should have done that. Okay. Okay. Let's let's do that for. sure. All right. For Jeff, you know, I really. care about their future together, where. they want to get. So, it's going to take. some sacrifice to get there. His Hammer. Financial score, spending and budget, those are ridiculous. Zero out of 10. Debt, if you're borrowing from. individuals in your life, I can't give. you a higher than zero out of 10. Emergency fund, at least he started, one. out of 10. Retirement, at least he. started, not much, one out of 10. Real.

estate, not a part of the conversation. yet, zero out of 10. To be generous, we'll give him a 0.5 out of 10 for his. Hammer Financial score. And don't forget. to check out the resources linked in the. description below. They are what I use. or would use in specific situations. If. you want to be in an episode of. Financial Audit and you're able to make. it down to Austin, Texas, fill out the. survey in the description below.