McMoron Refuses To Grow Up | Financial Audit

this is 18% you're never gonna beat this. just losing it right so this cannot be. considered justified in good good. because it's not 30% good this is not. good this is you this is stupid this is. death my name is Mike I'm from cuming. Georgia I'm 25 years old and this is. financial audit it's a naughty little. town name what do you do there for a. living so I'm a video producer I work at. Optimum Productions we do like. manufacturing videos a lot of the times. oh okay cool so what's your position.

there you said producer yep so I help. produce the videos but I also do a lot. of the editing work what do you make as. a producer let's see how our wages. compare so I'm at 46,000 a year right. now I win the good boss. award okay $446,000 a year cool uh. anything on top of that or is it 46 flat. uh it's 46 flat how do we feel living on. uh incoming doing that uh well a lot. better I actually just recently moved.

this month to from coming to Alpharetta. Georgia so the cost living is a little. cheaper there you know um but. technically it's still in the same. county so not much has changed there but. my income has increased yeah last year I. was making what are you making like I. want to say it was $30,000 what were you. doing uh so I was a medical records. processor at the time so before that I. got laid off from a video production job. I'm sorry yeah and so I kind of. scrambled wasn't sure what I was doing I.

contracted with a studio for a while and. then needed to find something full-time. like secure and my parents kind of had. an impact there because they kind of. chimed in they've seen me go through. film over the years saying like is this. really a secure job for you you know. even though I've had really good years. and I've had yeah media is up and down. and IND industry is up and down but I. mean that's certainly one of the more. volatile ones exactly and so my mom was. working in the healthcare industry kind. of doing like the admin side and she. said maybe you should get into that cuz. that's job security right there you.

don't have to stay there forever yeah. healthare is good yeah and so I'm glad I. did it I did it for about eight months. but at the same time I think I probably. shouldn't have why because the pay cut. was so substantial compared to what i is. that where you built up the debt yeah. about right then in there um why did you. maintain your lifestyle then if that's. what built up the debt that's a good. question actually um I'm honestly not. terribly sure because what I do is I. base my life on a looser budget like. it's still budgeted but not very. stringent if that makes sense well.

what's the point of budgeting if you. don't budget right and. so well I mean it was a budget in a. sense it was based more on cash flow. essentially so I knew I was making a set. amount a month right so every bill that. I had I made sure it got paid for um so. when I was was that is that budgeting. though are you telling your money where. to go where it's going to go you can. prepare and then you look back on a. monly basis see if you get the budget. see what you need to address for the. next month or you're just like rent's. coming I need to make sure have enough.

for rent uh no so all of like you know. my basic needs were always covered no. matter what yeah and I think ultimately. what screwed me cuz I used to be pretty. good with my money in the past where I. didn't have to necessarily. maintain like a set budget mainly. because I didn't have high debt if I did. have debt I paid it off pretty quick in. big chunks uh based on like film work. well were you investing during that time. uh a little bit okay so you probably. still needed a budget then if you're. only investing a little bit cuz you need. to start pretty much by the time start.

earning any kind of income as adult. putting at least 20% aside on a monthly. basis yeah and I think the best way I. could describe it too was it was more of. like improvisation with my money not. necessarily month-to month but like. every few months so you never budgeted. though I guess technically the grand. schem things yeah okay yeah go through. our please just please go through our. budgeting program you get it for free. because you're on here but through. actually well we'll refund you we'll. refund you but seriously go through that. and actually build a budget and follow. it because that's what's really going to. change your whole financial situation.

anyway but M uh so credit cards we're. about to go through like a million. trillion quadrillion credit cards yep. why. the so okay what was the pay before you. were laid off before the $330,000 what. was your pay uh that was at 42k a year. okay so 42 down to 30 yeah that hurts um. and I don't really know the cost of. living in coming but why did you. maintain your lifestyle the way you did. I'm assuming that's what it was we'll go. through this and we'll actually. determine but why it felt like I.

actually reduced My Lifestyle believe it. or not um then how'd you get into so. much debt I know so one thing I noticed. actually after the fact months later was. that I didn't account for entertainment. food costs and gas prices actually what. do you mean those are the three things I. had left out when I had thought about. taking this job on and then I took the. pay cut not realizing how much I was. those are the the those are the. things though those are the ones that we. you the take into account yeah exactly. well those are the ones that just can.

balloon cuz rent's the same every single. month your car payments the same every. single month mhm those things can just. balloon unchecked and those are the ones. that you didn't think about I think we. can all agree that taking care of our. families and making sure they're taken. care of financially if you're not around. anymore is top priority that's why I. want to take a second to thank today's. sponsor fabric by Gerber Life made by. parents for parents fabric understands. that every family has their own set of. challenges to cater to these challenges.

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yeah and I don't know why you know. talking about it out loud too like. sounds silly because I had this. conversation with myself like weeks ago. too I was like why did I let it get to. this point and how did I not think of. that you know as somebody who was. somewhat money Savvy yeah so it really. kind of caught me off guard in that. sense um something I definitely should. have accounted for um especially with. Rising costs in food you know especially. like growing at the grocery store it's. totally different this past year than it. has been like a couple years back yeah. but even still I could get you $300 a.

month easy I mean we proved it we did a. grocery shopping video the video the. audio is just I had like the mic right. here and we thought it was good and we. weren't testing it and the whole thing. came out sounding. like it wasn't good but we easily proved. and through the program you go through. we we at least have a digital version of. it uh $300 a month as one person healthy. sustainable lifestyle in terms of the. groceries you get plus extra things on. top of it for the yum yums H okay for.

300 bucks a month so yes inflation's. been over the past couple years it's. been not thrilling right but you can't. blame all this on that because that. could get you $300 a month at the. grocery store MH we have thousands and. thousands and thousands of dollars of. credit card debt here so what was the. actual reason why'd you go into debt cuz. I was an idiot honestly okay I probably. should have thought about food uh food. for the most part I think fast food.

probably fast food eating out yeah what. what would you give yourself score 0 to. 10 in this current. state yeah not future or past yeah right. now uh 4.5 can I do0 five yeah cool I. do0 FES all the time sweet um I haven't. looked at this many credit cards in a. long time so I'd be very surprised if. you were considered average right like. average in terms of scale of bad to good. you think you're right down the middle. in terms of bad to perfect worst worse. to perfect you think you're in the. middle I'd say I'm in the.

middle all right the score will not lie. let's see City Custom Cash. Card you custom you customized your cash. to a massive debt balance oh yeah we're. sitting. at. $3,581. 188 and that went up why that's not a. joke why are you laughing I don't know. that's not funny man that's your life.

that's your life you think if I go it's. not funny if I go and eat a big fat. burger and I'm just putting myself. closer in the ground I've been eating. healthier these last few weeks team's. cheering me on it's not hilarious if I. go out and do something that's bad for. my health it's not hilarious if you go. out and build your debt more yeah I. think so why did this go up yeah I think. part of it had to do with the the move. right so my last place the whole rent. situation kind of changed um our. landlord didn't want to renew our lease. we had some of the lowest rent in the.

area and then suddenly we kind of had to. like drop everything and figure out. where we go next so me and my roommate. mainly but also I had plans to move in. with my girlfriend at the time as well. are is that who you live with now it is. yep okay so you and your girlfriends put. a place yep no longer the roommate the. roommate in there so we're renting out. the basement right now to him uh for I'm. not too sure how long but that's in the. basement yeah exactly and so that whole. move what did this go up to then uh. 4,000 me yeah.

just it just went further down the hole. yep man pretty much paying for like a. U-Haul um well let's see cuz $349 a. purchases before that U-Haul but you. only did the minimum Mony payment and. guess what we're acre $86 of Interest. we're purchasing our car that's acre. interest and we're not paying off how. many times have I said that in the. history of the show are we going to be. surprised are we going to be surprised. are we going to be surprised no we're. not it's all spending let's see out of. all these uh 15 or so purchases there's. one two. two three four that might be considered.

not bull not and you laugh about the. balance going up which ones are the. let's go through it Taco mat uh sip Inc. and Ivy Mexican restaurant Jimmy John's. Ale House Ale House McDonald's Subway. Rib Shack Taco Mac Dairy Queen my merch. no no no no this is the budgeting this. is the budgeting program which actually. yeah wouldn't be considered. because technically just like any kind.

of education that would improve you if. it improved your income this wouldn't. improve your income but this would. improve your budgeting skills which. would save you more money over time so. that I won't consider when I was going. through this earlier now I recognize the. price when I was considering going. through this earlier I thought you. bought some merch and I was about to. just I was about to take some some of. our new merch and just beat you over the. head with it yeah okay so five things. that are because then the final one is. Taco Bell so five things that we're not. B out of the 15 or 20 in here it's. ridiculous and you laugh about the but.

the balance going up this isn't funny. this is all you spending this is all. stupid. bull $86 of Interest loss. $420 uh within 2023 that was taken away. from you because you decided Taco Mac. and Dairy Queen was more important than. your future yeah probably. not now you're disputing a purchase with. Exxon flag ship food Golf.

Breeze oh yeah so that was when I was in. Florida uh I had paid for something and. the product didn't work so I disputed. that claim and that did come back okay. so basically 30% interest yeah that. one's a really high interest rate I. think that's probably the highest. interest rate card all right let's go to. the next card freedom freedom to die in. debt. 1,9 uh nope. close. 1,492. 25 with a minimum monthly payment of 45.

okay let's see what are we going on here. you did a minim monthly payment and then. you purchased. $464 it's like what's the point man. right like do you care this is like this. is this is a lack of giving a sh your. life man $30 of Interest AC crew so. interest is acru we're only paying. minimum the payments but we decide to. put additional $464 on there so of. course the balance went up by almost. $500 even though interest is acre and I.

think that's the part that scares me the. most too is the fact that like lately I. could tell too that I have been kind of. ignoring my purchases more and just kind. of swiping why why do you think I think. it mainly is due to like just a lot of. stress again the move career change all. at once taking the pay cut during that. time and also having so it's the cope a. little bit yeah and like when I did take. that pay cut during that job too I was. working overtime for about six months. straight about 50 to 60 hours a week. Non-Stop and so I know that took a lot.

out of me just a lot of changes all at. once and then my brain kind of went numb. to the whole purchasing and checking in. on things I can understand that and then. my follow-up question has to be you said. you're starting to recognize it so if. you were starting to recognize it why. did you not take any assessment of it. and try to stop I wasn't sure what to do. when I had that pay cut uh it was the. first time in my life when I kind of no. no no right now you do not have the pay. cut right now you have a pay raise right. now from there and you're going through. this and this is your cope okay if you.

were starting to recognize that this was. within the last 30 days. dude why did you not assess and try. something different or try to fix this. uh again I think just too much going on. January is the one that moved in so no. that's fine but you said though you. specifically said your words that you. started to realize it so why did you not. from there assess your. situation I think I was just two tied up. with other things you know I think that.

was just part of it shocker yeah and I. probably should have prioritized. that oit bar and kidos are not more. important than your future man your 25. don't throw away your 20s like this. right most it's one of the most. important decades for your financial. future what's rent ley.com is that. rental insurance uh rent ley.com what's. the charge on that the amount $199 so. that was when we touring homes it cost a.

tour yeah you get like three tours a. month with it uh because they're rent. locks it's kind of like the new thing a. lot of these property management. companies are doing yeah it's kind of M. oh Taquito no surprise Cork and Barrel. church church Hills uh something you. went to like a park something Parks and. Recreation. Pizza lifelong or uh life in Long Creek. life in Long Creek life in Long Creek.

Panda Express Zak bees more Taquito and. wash Factory Express is that a car wash. it is a car wash does your car need to. be clean when you're dying and dead I. don't think so who the cares you're. pulling up next to someone who you can't. even see the car's dirty while you're in. it as long as you just use your. windshield wi fluid it's pretty. important though especially when you. have a newer vehicle you know it's kind. of important to keep it clean it. degrades a lot of stuff especially like. your pain yeah but spray it down dude. we're not talking about you needing to. go through a wash you can do just very. basic like that on your own right yeah.

for free and I used to do that on my own. and I don't know why I stopped getting. used to Lux your finances the worse. luxuri is you can't afford a luxury to. save your life right you can't do yeah. $49 of interest just stolen from you and. again it's all on. bull I just hate to see someone in their. third in their 20s man do this yeah do. you normally crumple up paper like that. depends on how I'm feeling oh it's a lot.

of emotion in the paper I'm a very. emotional person especially when talking. about numbers and seeing again someone. throw their like way do you I mean do. you not like maybe you just don't see. the reason why it go so hard on people. is so many people just don't see the. Dess of this they don't really truly. understand the numbers and the behaviors. uh that they're doing that are just. throwing away their future man. and it just deeply impacts me and I I it. kills me that and I can't tell if it's. happening here just yet but for a lot of.

people I talk to I care about their. future more than they do and that me and. that better not be you no because that's. an important thing to me you know I had. the realization that like I'm digging. myself a deeper hole and it's not. stopping and I need to stop but I don't. know how yet I guess is the best way to. put it okay Best Buy card what did you. get uh so that was a Macbook and I. needed that just for my production. company itself and so that was actually. a write off for my company at the time.

you own a production company I do yep. how much does that bring in uh did you. write off well last year it brought in. what 26,000 so not too much it's more of. like on the side now yeah that's. actually pretty good for a side gig I'm. sure a lot of people love their side. gigs to bring in $26,000 a year mhm yeah. $2 is like an ongoing fee you made a $65. payment which is a little above the. minimum what's this fee is it uh is it a. two fees last year $2 each $2 fees oh.

it's a minimum interest charge the. minimum interest charge yeah cuz I know. that you have to pay your promotional. balance by the end of this year exactly. or else yeah all the Deferred interest. is going to come and kill you which is. about. $800 yeah yeah no it's gon to so let me. Mark this you have 11 months to pay this. well no I mean well from right. now you have 11 months to pay it off ex. like to the day if I'm not mistaken yeah. to the day oh no never mind little under. 11 months we'll call it 10 just to be.

safe would you prioritize that first uh. we'll go over that let's get the full. situation done but um so you edit on. Final Cut I don't you don't no and. there's no point of you having a Macbook. I had it on D Vinci resolve okay but you. don't need a Macbook for that right in. fact it would probably work better on a. PC we're learning that here I uh I built. a PC a long time ago actually I still. have it but I switched to MacBook mainly. for Mobility you know I was also in. Studios at the time so sometimes that.

came in handy I definitely like the. silicons on uh in terms of for for. laptop performance I like it but um. certainly not going to be as good as a. tower unless you're using Final Cut. which syns directly with I hate Final. Cut with a passion me too okay PayPal. credit I I take advantage of PayPal. credit because you can get great like 0%. financing yeah you are not doing that. you're doing the stupid version stupid. version also know known as having a.

balance of. $9. 9221 with a minimum monthly payment of. $30 purchases of 346 you're doing it. again we're back to it we're back to the. and $17 38 so what are you financing. what are you financing McDonald's. McDonald's McDonald's Domino's. McDonald's Chick-fil-A Delta and. Chick-fil-A well that was for the flight. year but okay well most of that was come. back to you but the rest of that.

uhuh tell I think uh what got me was. PayPal is really easy PayPal credit. makes it really easy when it's tied to. your account so I was doing a lot of. like Domino's delivery right because it. was easy to click one button and it kind. of just defaulted to that your groceries. across all your accounts was 3% of your. spending but going out to eat was 7.2. it's an insane that's an insane. percentage compared to what you're. actually spending on groceries you go. out every every second of your life to. eat I don't care if it's easy it's.

called maturity and lack of discipline. Yep this is sitting at just about 30% as. home it's easy it's easy to charge you. interest. for okay here's here's another card. no. no what's the new oh maybe federal man. that's a great interest rate that was my. best card for a while when you shot up. this is not a good interest rate that's.

did it go up it wasn't 18 18% and no. human history has that ever been. considered good for a credit card though. right that's SC 0% would be considered. good anything above that but on average. right most credit cards are 24 okay if. we compare against the worst of the. worst of the worst of the worst it's. better than that but compared to. anything that's halfway decent in this. world it's terrible man well I mean z. don't let but do not justify this being.

okay because it's only at 18% you'll. never beat this in the market this. performs 10 uh 8 to 10% higher than the. market on. average okay or you're losing 8 to 10%. more than you would gain in the market. right if. it I can't I cannot believe you did that. you this is good this is good how is. this. good well it's slow right for a credit. card for a credit card it's still a.

death interest rate do you know how it. works that's 18% you're losing on that. balance in a yearly basis right if you. invested that much in the market it. would only gain on average up years down. years combin 8 to 12% 8 to 12% this is. 18% you're never going to beat this on. anything else just losing it right yes. yeah so this cannot be considered. Justified fighting good good because.

it's not 30% good this is not good this. is you this is stupid this is. death I need to beat that into your. brain cuz I cannot allow you to walk. from here and uh ever ever ever come. close to saying this is good again I. need you I need that to get through to. you if anything if anything in this. conversation ever gets through to you I. need that to be clear and to you. watching this this is not good I think. that's my optimistic side coming out.

kind to stay positive about a lot of. things yeah well congratulations also. welcome to the real world but also slow. death R SL I don't think this is a slow. death this is you're holding $7. 7,970 would it make you feel better if I. told you I did put the card away it make. me feel better if you closed your. account and burned it that's my oldest. card though wouldn't that affect my My. overall credit history or is that. playing the game people like. you and this is. I love the advantages you can take and.

Credit in this world but my goodness. this is everyone loves the idea of it. and then people themselves in the system. people themselves you are not in any way. taking advantage of credit of credit in. any decent way of your credit score of. anything credit related you are not. taking advantage of anything it is all. taking advantage of you and there's. nothing but the numbers here to prove it. pro there's nothing there's nothing to.

dispute it you are not taking care. taking advantage of your credit score of. the credit industry in any way. whatsoever you are being taken advantage. of and they are killing you they own you. it does feel like it honestly so I don't. give a this card man you have proved. you're not a credit card person and no. matter what benefit you could. potentially gain I love to finesse the. system cuz I can be disciplined but even. still I'm getting like 2 to 5% uh cash.

back so it's like small little discounts. that's just because I like to maximize. my that's not even a point card or. anything you not great well you not. getting that 2 to 5% mhm isn't who gives. a compared to the risk factor that you. have knowing that you just build up debt. and you're your future I would much. rather you not even come close to. getting two to 5% and never have a. credit card balance again it's not worth. it man it's not worth it I need you to.

walk from here walk away from here and. realize 18% bad it's not good because. there's worse things out there it's not. I'm not going to go stub my toe and say. it's good because it's better than. getting shot right yeah I guess that. aspect sense yeah it's a little extreme. though but yeah that's how my brain. that's how my brain be doing come on. you've watched this show you know you. know how I am yeah uh and then I also. need you to walk away and realiz that. you are not taking advantage of credit. in anyway so I don't give a sh all this.

card Burn It Burn It To The Ground $197. minim monthly payments these are. starting to stack they are yeah the. monthly payments are starting to kill me. or at least they were too when I was. making even less income that was really. devastating honestly and you still. purchased 10 it's only $10 but why' you. purchase what was the $10 purchase it. was an apple subscription oh yeah. something in there and we just start.

that's almost $8,000 that you spent. there imagine if that was in the market. man yeah would have done really good oh. man just in terms of 25 to 59 and a half. if that was sitting in like a Roth IRA. just getting some index funds even just. buying some topend individual stocks in. a well balanced portfolio and something. like. Mumu and that you're just you're just. you're losing a lot of potential because. of your decision. yeah the paper stacking is really. getting me now like seeing it physically.

is freaking me you should be freaked out. I need you to be freaked out I don't. want anyone to ever experience anx. anxiety but if this is the one and only. time you do in your life it's important. to experience I'd be lying to if I told. you I haven't been you know it's been. like this for like months in the back of. my head but your behavior hasn't changed. it has not which is bad because I've put. my attention to other things instead of. this when I should have been doing it to. this so we basically have the same. balance here UND Discover it uh yeah. Discover it what are you discovering how. to die in poverty and you should.

discover how to hit that subscribe. button thanking everyone who has. subscribed try to get to a million. subscribers also thank you for you uh to. being on the show I hope this helps you. I really hope this helps you that's like. the secondary objective the even primary. objective is that there's going to be. people out there that are getting in. your situation people out there that are. in your situation or fighting to escape. your situation and this is actually. benefiting them so thank you feel free. to U you know um apply in the. description below as well we're always. happy to have different kinds of people.

on this show um but thank you for being. here and be nice $. 7,817 sh on dis card $73 of Interest no. no no no no no no no no $162 of interest. and $73 of purchases $183 minim monthy. payment oh. this. this that purchase actually kind of hurt. me too cuz I hadn't spent on it in quite.

a while why' you do it stuff for the. house needed some stuff for storage yeah. needed critically needed or else like. the whole place would come tumbling down. went from a five bedroom down to a. three-bedroom congratulations but needed. like literally your world would not. exist it was a need do you know what the. word need means was it a true need you. would like not survive without it I. would probably think so some of it was. Plumbing stuff some of it was.

shelving 25% so that also considered. good because it's below 30 I'm not. consider that one good I think like 20. is my cut off personally oh my gosh not. anymore though right right right I think. any no no like actually yeah no actually. okay what do you think a good interest. rate is what do you think would be. considered one second what do you think. would be considered if if if if if a. debt is above this rate we need to pay. it off immediately and if a debt is that. rate or below we can just minim monthly. payment to payoff what is the number. you've watched this show so what is the.

number well I guess in your perspective. it'd be zero right but in mine it'. probably be something like 12 and it. also depends on the application credit. card or Alan right not necessarily what. the no what mortgage I would consider. maybe a little different just because. such a massive balance car loan well. then you take in account depreciation. and maintenance and the risk involved in. that mhm so then essentially you may as. well add two to three points on top of. your rate really mathema ially over time. four to 5% four to 5% if it's above four.

to 5% pay it off pretty quick because. it's going to have hard time competing. with the overall Market at 8% you said. above 12 yeah the market doesn't beat 12. man unless we enter just multiple. Decades of like insane economic growth. you're never going to beat it so You'. want to pay it off as quick as possible. because you're not going to beat that. anywhere else there's nothing you can do. with your money MH that will make you. more money than paying it off quicker I. actually hadn't thought of it like that. if you have a 12% loan and that's. considered your small.

debt if you pay it off as quick as. possible M you literally gained 12%. instead of just doing minimum monthly. payment sales and ining that interest. yeah yeah yeah you just no that makes. sense 45% but I don't all of a sudden. want you shop again that's for finessing. you're not a debt person you you don't. know how to finesse debt and that's okay. who cares doesn't matter really you're. not a credit card person you don't need. to finesse it it you don't need to. finesse it there's I mean There are.

rules for getting a car we love we love. the money guy uh you put 20% down it's. no longer than 3 years and it's more no. more than 8% of your gross income that's. a pretty good rule to follow for cars. but that still gets complicated um I. would rather get you in a position where. you just don't have to do de again. especially where your mind is very. confused on what's considered bad and. good right now this is below 5% for a. car I'm assuming this is a car yeah it. is a car 4.59 I think is the rate yeah.

yeah really good I actually got pretty. lucky with that I don't know if I'd. say car payments are something I tried. to avoid most of my life but finally. payments let's do this yeah. $437 kind of expensive a little bit Yeah. on a. $1,846. um balance again the interest rate okay. I was pretty ahead of it on that so I.

was doing 500 a month no matter what. since the Geto because well I wouldn't I. wouldn't do that because all of a sudden. let's start thinking of the return again. let's go back to that conversation if. you're putting extra towards this does. that really make sense if it's 4.5%. versus that same amount extra on a. credit card at 30% no you're going to. make so much more in the end or save so. much more I should say not me so you're. saying it's bad to put extra money. towards a car loan no not as a overall. concept but when you have a debt that's. much worse you want to allocate more.

funds to that one saying now that's. typically the Avalanche method of. highest interest rate to lowest interest. rate there's the snowball method of. paying um smallest overall balance to. highest overall balance with that one I. mean this would still be one of the. later ones anyway it would be the last. one at this point because it's the. largest balance so if it's Avalanche. highest interest rates lowest interest. rate or uh snowball lowest bounce the. highest bounce this one's the last in. all those scenarios CU it's the lowest. interest rate and it's the highest. balance so you putting extra to this.

doesn't make sense in any of the typical. debt repayment strategies I think I just. wanted to shorten the Lan term length. which is totally valid and totally fair. but in terms of saving money over time. and getting yourself out of debt quicker. it does not make sense now this PayPal. tell me about this PayPal is this credit. or is this like a checking account. within PayPal uh that would be checking. so any kind of like purchases I made. through that well fun fact the money. that could be going to Deb is instead. going to Mickey D's Mickey D's Mickey. D's Mickey D's Mickey D's Mickey D. Mickey D Mickey D Mickey D Mickey D. Mickey D Mickey D we changed it up and.

we got some. dominoes Microsoft dominoes Domino's. dominoes Mickey Mickey we seem to have. like two genres in our life yeah uh. either some of those MCD dubs or some. pepperoni zah yeah and I think that was. partially due to like when I worked from. home for that Healthcare job gosh that's. even easier to make a sandwich I had a. 30 minute launch exactly so I would do. that and then towards the end I guess I. just started ordering like the mobile. mobile app and just doing that well. delete that yeah throw away your phone.

if you have to I don't care that's. insane how much money sitting in your. PayPal checking account cuz that oh oh. none I don't I just do it as like a pass. through okay no more passrs you're just. allowing this to be dragged out yeah. which is why I want to get a jump on it. now especially with my pay coming back. to normal you know I feel like now I. have that extra cash to use and utilize. for my debt so versus going out and. eating and spending money at Mickey D's. all the time what scares me with your.

behavior is lifestyle inflation is what. scares me with your behavior but we do. have about 4,525 in savings I like to. save that's one thing one good thing I. could say but I should be putting it to. Deb shouldn't I well no no no not well. probably a bit of it but this. immediately uh raises the question the. first credit card you said oh I had to. ra it by $500 because I got a U-Haul M. you had $4,000 in side how does it make. sense in any mathematical scenario to.

put $500 on a thing that's going to lose. 30% on a yearly basis or add 30% more to. that debt on a yearly basis than just. taking it out of savings where you're. not going to lose or gain any interest. I've always felt like having cash was. King liquid you know uh and having that. in my back pocket because I never really. had that in the past important. especially during this economy this. economy what what is me economy. like the you brought it up I I there. there are economic factors that play.

into a lot of things but the moment I. hear when when people are choosing the. percentages where their money is going. like you then they sit back and say and. the economy no you this was your. behavior that has gotten you into this. this isn't a this economy thing this. isn't an inflation thing for you for. some people yes not for you yours is. behavior man you really think so have. have you not just listened to any of the. statement purchases I've been through. how do you not think so though I just. thought things got more expensive right.

it doesn't matter even if things got. more expensive and your income was your. income if things got more expensive you. cut back from bull spending but your B. spending has not been cut back. M I'm sorry I'm sorry I would love you. to experience every luxury that's ever. existed but if you if things get more. expensive for you to survive survival. comes first before the luxuries you cut. back on luxuries a MC double is a luxury. is it though it's a want it's like a $2.

thing it's a. want it's a. want oh my gosh oh my gosh really are. you kidding me right now are you just. being cheeky no no no I mean I just I. just see it as like a $2 purchase right. yes but that Death By A Thousand Cuts. again 7% of your spend over 7% of your. spending went going out to eat out to. eat that $2 MCD double over and over and. over and over over and over and over and. over and over over over over just you.

and it you man if you're not willing to. see that then you're not going to change. the single Behavior you're not going to. get out of debt you're going to be in. the debt in your 30s you're not going to. be able to retire you're going to die on. the Walmart floor you're going to be a. disappointment from this show and that's. going to kill me that's going to kill me. you're a human being that deserves to. live a good life you have to sacrifice. to do it but in order to sacrifice you. have to realize what the sacrifice and. what's considered sacrifice B A MCD. double is a want is a want you could go. buy Frozen patties buns pickles and jars. onions ketchup mustard yes I know what.

goes on to make double because I love. them you can do that and price effective. wise after you eat about 10 they're. going to be well less cheap than $2 for. a single one it is a want and not only. that but we need you to calorically. survive in a healthy way which is like. $300 a month for all your meals plus. snacks and. desserts that's what you need anything. beyond is a one want cuz you want it you. don't need it you probably did not need.

a shelving unit to literally survive you. do not need a patty in between two buns. that was cooked two hours ago to. survive yeah well does that make sense. it does you know uh for never say that. again because that's gonna murder me. well I think the biggest thing at least. my mindset towards it was convenience. right uh as far as time goes time we. have you know especially working aside. also well guess what fun.

fact come come come hey hey um hey hey. can can you grab grab grab the grab the. camera grab the. camera grab camera start. filming Let's do let's just do a little. trip okay walk with me. I'll watch this. watch.

this did you just save that much time by. ordering McDonald's did you just save. that much time ordering. McDonald's now yes this requires a go to. the grocery store once a week but that. 30 to 45h hour long maybe sacrifice is. worth it if it's going to save your. future M making a sandwich is simple. dude don't it's basically math in basic. reality and it's as easy as you really.

got an argument for everything too well. it's literally just basic dude and I. can't believe that people just don't. believe it or push back on it it's. crazy I think it goes back to that. lifestyle inflation thing you're talking. about too a lot of Vape on here yep. Popeyes taquitos robber shop that's fine. yeah and I know the nicotine thing has. been a huge problem I've been trying to. quit for a while now actually it's so. difficult man it is no it's tough like. probably one of the hardest things I've.

tried to do and I've tried it like six. times yeah I mean keep trying try. different methods I've never been. addicted to it uh so I mean I can't. speak on that personally but I know. people who have gone through it I know I. money three people close close in my. life who have gone through stopping. smoking or different things related to. nicotine vaping anything like that three. that I can think of off the top of my. head very difficult but they've done it. successfully yeah I know you can and. it's easier said than done find the. right processes for you whether it's.

having an accountability buddy maybe. it's talking to a therapist you know. there's a lot of different methods maybe. there's different waning methods you. know I don't know but keep trying don't. give up that's all I ask I'm not going. to put it in your budget because I. refuse to put right addictive something. in your budget especially something. that's not good for your health but I. did go from smoking cigarettes to vaping. though so I'm proud of but the Ning. content is much higher that's what I. mean that's what got me now is like. that's even harder to put down it feels. like than like if I was just smoking. cigarettes and we don't know the.

long-term effects of vaping no that's. what terrifies me the most my hand. smells like bread. now Amazon Amazon Veno in out more. Taquito Veno Veno Amazon Amazon okay did. I hit that 4.5 what that 4.5 score am I. in the. ballpark you're not even close no you. can't even you have anything in. retirement uh I do how much 3500 right. now I'm growing in a Roth IRA 3500 M uh.

yeah that's pretty not great for it's 25. what should it be at for my age well the. way that we like to see it is a certain. percentage compared to your income you. know it's that was our easiest way to. figure out the hammer Financial score. for people online typically what I do. here is I just compare to where I would. like to see it in your situation for. your age there's different categories so. the debt it's like is this is is your. death situation bad or good I don't. compare that for age it's like mm real. estate same with the age like for.

younger people their score is going to. be lower because of that and it's. something to shoot hire for and same. spending a budget that's going to be on. your budget based on your situation uh. the retirement though that is your age. emergency fund that's also just math not. age okay but this is for your age what I. would probably want to see you at about. 25 maybe getting closer to about 15. $2,000 would make me feel make me feel. good like dude setting up a really solid. foundation so much easier to send them. done everyone comes with different. circumstances but it doesn't also change. the simple math of where I would want.

you to be mhm terms to truly set. yourself up for Success now you I think. you would have had the ability to do it. personally based on everything we've. seen what's your portion of rent what do. you have to put towards rent personally. 5.58 utilities your. portion uh I'm not sure with this new. place yet but I want to average 140 what. about your portion of Internet uh none. uh okay you're allowed to contribute. however you do food with a girlfriend.

blah blah blah blah blah blah blah. you're allowed to contribute $300 and. that's Max okay toilet paper fund. anything you need to survive anything. that you need to survive around the. house around different things uh things. always pop up there going to be car. maintenance it's just that extra little. cuz we're doing a loose budget you'll. figure out your exact budget in the. budgeting program and everything so but. this is our loose to see what it's going. to take to get out of debt $100 for the. toilet paper fund one wonderful. wonderful wonderful car insurance car. insurance is 137 a.

month phone. bill I don't have one right now parents. okay yep trying to ride that out as long. as I. can any ongoing Healthcare needs. medications things that cost money on a. monthly basis none of that no okay vroom. vroom gas your location gas now that I'm. not working from home I'm actually. closer to work my new place by six. minutes. away on a m Bas oh it depends too.

sometimes I like to do weekend trips I'm. a big outdoors guy so I rock climbing as. long as it's yeah rock climbing is free. right it is free yeah that stuff is free. but $310 in gas is what we had that. sounds about right okay yeah it's kind. of expensive is that. expensive compared to a lot of people on. this show it is. expensive what's your car I don't really. live in the city you know what's your. car uh it's a uh Honda. HRV okay mhm it's pretty fuel economic.

like 32 m a. gallon that no surprise is your biggest. killer it's. $1,043 round it up to 44 after the. cents $1. 1,44 okay and that's including my car. payment yep it's all your debt anything. else you need to survive on a monthly. basis that I might be. forgetting I don't think so to be honest.

I really don't need a whole L not giving. you anything for subscriptions yet not. giving you anything for fun yet we need. to see the difference of what's coming. in yeah your author is 3,400 can we. count the venmo zel's Apple pay and. PayPal Inc as. income that has came some of it it's how. much of it guess how much on a monthly. basis on average up months down months. do you want percentage no just give me a. number uh also you got to talk on the. mic dude yeah.

um I don't know if I could put a number. on it cuz sometimes it's between friends. sometimes it's between roommates. sometimes we split things oh so that's. not pay not all of it some of it sales. much pay how much just pay 10% of it so. maybe like average a 100 bucks okay. nothing yeah pretty much okay so your. actual pay that came in was. 2,400 yep and that's what it looks like. normally uh I didn't used to but I guess. now some months I did have better months.

uh just for my side hustle obviously so. some months would be like $4,000 months. unfortunately your budget literally just. to survive in your current situation. $2,589 a month which is giving you which. means $189 in the. red. y big. ych. [Music].

I feel like I am left over with more. cash though at the end of each month at. least this month I know I will be with. the new pay coming in and I what's your. new pay G to be uh so I'm averaging. 1,500 every two weeks so about 3,000. that's after tax so I asked if this was. what it was like now and you said oh no. no no it has increased yeah okay well. that's different M okay so you have an. extra 4,1 or. $411 on a monthly basis great okay we. can actually start yeah like doing.

things the crazy thing is man even with. that 400 just to get a one month well. you actually have a one month emergency. fund but never mind so I would leave in. your savings what did we have in total. in. savings I know it's another Interruption. but you can get $5,000 by listening to. the end of this right now if you. transfer your portfolio to Mumu which I. personally use for my individual stock. picks you can get up to $5,000 it's. literally free money and an amazing. investment platform and it's what I. personally use so check it out in the.

description below I highly recommend it. how much was in savings again what was. 4,560 yeah we're drawing. 1,171 from there and you're leaving 2589. in there which is a one month emergency. fund and you're starting to tackle this. debt with that that money withdrawn from. the savings yep so you're going we're. going to snowball or Avalanche snowball. or Avalanche no PayPal credit's so small. relative compared to everything else. that we're killing that tomorrow like.

you should do this like tonight with. draw it okay well it'll take a couple. days for things to settle but like. starting tonight boom you pay that from. your. 1,971 so that gives us now. 979. today which you're then throwing at the. Freedom Card which means in your actual. first one month. so in month number one you're totally. paying off with the extra $411 on a.

monthly basis you're toally totally. paying off the Freedom Card from the. okay so that to me so with the. $4,560 in savings you're pulling. everything except for 2589 and you're. paying off the uh Freedom Card which was. 1,492 immediately and then with what's. left of that and the extra $411 that you. have after pay minus your living. expenses will pay off off the PayPal. credit uh uh well partially is that what.

you're saying I meant PayPal credit. first and then the Freedom Card but it. still works that way gotcha so by the. end of month number one those two are. gone that's incredible because all of a. sudden you now have an extra $486 on a. monthly basis because your minimum. monthly payments are going down because. you just wiped out two debts that's. great okay and this is where snowball. versus Avalanche starts kicking in Best. Buy I say we don't attack that next even. though that would be next because you. can go tell December in this and in this. situation just for the sake of. conservativeness we just finished.

February we're headed into March so. March 1st where are we looking or. through March what are we doing yeah. this gets a little difficult maybe. discover I'm looking at the city card. which is 4,000 because your again your. remaining income is not incredible. M because that takes eight months to pay. off yeah that takes eight months to pay. off which means we all of a sudden start. it means all of a sudden the Best Buy is. going to be a month away to where all. that back interest would hit I mean I. would have the cash to cover it.

technically what out of the savings that. I have yeah no I don't want you ever. below a one month emergency fund though. because you've been laid off before you. know how the world is MH so in this. situation if you don't increase your. income the thing I'm actually taking. care of next for risk mitigation is the. Best Buy card so you never have to pay a. set on that interest that sucks that. takes four months so we're five months. in now and it takes an. additional eight months to pay off the. city. card oh man yeah I know this sucks so.

we're a year we're a year and one month. in year in one month in and we're like. we we're only getting to our biggest. balances now we do have about 500 uh. almost $600 left on a monthly basis now. and hopefully you'll have had a raise by. then but I mean just for example of how. long it's going to take to pay off the. other two cards but you can pay off in. whatever order because they're only $100. apart from each other I don't really. care I would attack them based on. interest reminded we're a year and one.

month then and then $600 a month to go. towards those two cards and then takes. over two years to pay off those other. two cards so now we're three we're three. years three months in three years three. months in and we're out of credit card. debt huh and that's being strict on it. that's you having not a single scent of. fun and that's just shows how extreme. your situation is so I mean you can do. that I don't think that's sustainable. and that's hard and not having any paid. for funder in that is very very.

difficult depending on the sacrifice. some can do it I I did something. relatively close to that um so I know it. can be done but for the average person. like it's going to be very difficult so. what's going to speed this up immensely. and what is going to suck is when you. get off work man two three nights a week. go work five hours at a fast food. restaurant. maybe like literally whatever job you. can get obviously the higher pay going. say I could take freelance gigs no. problem and do that too okay it's. getting money well no I hope so but then.

you also have to take in account saving. up money for taxes and everything on the. side as well but either way all I'm. saying is after taxes net if you're. bringing an extra $1,000 a. month you cut this out dramatically you. go from three years three months to get. out of car debt to what a year it's. pretty good yeah you cut it by 2/3. that's incredible a year you can do. sacrifice yeah you know 26 in your auto. credit card debt then the car I would.

actually well what's the term on the car. uh 5year ter not thrilled in that so. what I would do is maybe raise it uh. you're doing 500 now first of all cut. that down minimum payments except for. the debt that you're tackling okay uh. you're 437 at that time one year from. now because you have to bring an extra. ,000 net a month um I would probably. raise that up to about $600 $700 on a. monthly basis so that you're paying it. off quicker just a low your lower your. overall risk cuz this is kind of a. longer length but the interest rate.

isn't aggressive enough for me to say. you need to put everything towards it so. I would do that and then everything else. you're doing on the side is you're. saving up for a six-month emergency fund. which after your debt is paid off is. actually pretty chill it's going to be. $10,000 it's going to be $10,000 because. it's either six months of your living. expenses or $10,000 which everyone is. higher and you're saying doing that. simultaneously while I'm doing these too. no no no while you're doing the the car. so after all the credit cards paid off. while you're doing the car at $600 a. month or $700 six to 7 m um choose.

choose what you want everything else. except for your basic needs goes to. building a six Monon emergency fund. which for you will be about $10,000 okay. now after the $10,000 we're still. continuing that car thing until it's. done but you're contributing on a. minimum monthly basis you're going to be. 26 27 20% aside for retirement and. you're going to set yourself up very. well for retirement in like mid 60s yeah. very well and that's the goal you know. well if that's the goal then none of. what you were doing can continue in any.

way whatsoever you need to burn up your. accounts you need to close your accounts. they can never exist you're not a Critic. card person maybe in the future if you. show you're disciplined enough to get. out of debt it's a conversation we can. have at that time but I need to see the. discipline a year from now you should. come back on the show and the credit. card debt should all be gone one year. from now I want you right there and you. know show that you did it and then we'll. talk about continuing you know build the. emergency farm from there what should we. do about the car what should we do about. Investments but I I see a path forward. it requires you go making some more. money through the freelance or through.

another job two three nights a week but. I don't know with your behavior and with. some of the things you said this episode. I am a bit nervous I'm a bit scared but. I know you can do it if you actually. sacrifice so I think a year from now we. will see yeah I'm no stranger to hard. work obviously sacrifice is something I. need to work on you know kind of realize. that um but I think I could do it you. know I think I could actually do it. quicker in my head. but we'll see I guess any final thoughts. as far as my deck goes as far as any of.

this I guess ultimately I think it's the. best way to put it is that a fair. assumption to you at least yes because. it feels like it especially talking. about it all the way through like this I. actually haven't had the chance to do. that yet so well let's see it's a bit. embarrassing too I'm not gonna lie to. you you know like okay that's something. I'm not used to talking a lot about is. my finances with others I mean you're. spending in a budget with where these. percentages we going crazy I can't give. you higher than a I mean only 0.9 was.

actually going to debt overall net I. can't give you higher. than a one like this is insane like it's. so bad it has to be a one your debt you. don't have collections or IRS debt but. it's as bad as you can get outside of. that pretty much so one there emergency. fund you actually have some money in. savings that's going to go towards the. debt but it does show that you have. bones for savings that's actually going. to be about a six for where you are. there wait how much was in savings uh 4. I'll give you a five retirement you know. is started mhm uh not where I'd want you.

to be for your age but I'm going to give. a solid let's be generous and say four I. it's a three or four I'm going to say. four real estate is a zero and it's. reasonable for it to be zero at your age. this is a a score to shoot for it's like. there's the ultimate perfect at 10 which. is almost impossible to hit then there's. the worst of the worst at zero um yeah I. do Wonder Too like when if at all ever. be able to afford a home too absolutely. man you get out of this debt and you. start saving and we can talk about that.

in a year yeah so your Hammer Financial. score is a two out of 10 did not hit my. first guess you did not make sure to. check out all the resources Linked In. the description below they are what I. use or would use in specific situations. including the best budgeting program. ever made in the history of the internet. which he will take and change his life. please thanks to all of our patreon. producers for making this episode. possible if you want to participate in. an episode of financial audit and you're. able to make it to Austin Texas please. fill out an application in the survey. Linked In the description below you can. also send a link to your friends or.

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