Negative Money In Her Checking Account | Financial Audit

Hi, my name is Ariel Cuevas. I'm based. out of Houston, Texas and this is. Financial Audit. Oh, and I'm 23. Do you. want me. 23, okay. No, you're good. So, cool. What are you doing for a. living in your early 20s in Houston, Texas? Yeah, so I'm actually an executive. assistant for a top producing agent in. Houston for real estate. Very cool. So, you just manage like his. schedule and a bunch of different stuff, paperwork. as well as like drafting contracts, speaking with the. crunch my hair? I've done this like I'm.

getting bad at this. I'm sorry. Continue, continue and I will scrunch. Um. I draft contracts as well as client. communication, scheduling showings, um everything that's needed, honestly. Just everything except for like um. bringing in the clients, right? Like. being the face of it. I'm kind of like. the. back behind the scenes, yeah. Oh, sure, that makes sense. And what do. you bring in on a yearly basis right. now? So, I actually just started at the. beginning of January. Yeah, so it's.

going on. zone? Yeah. About about. um I am right now I'm currently at $18. an hour, but um as my contract it is 19. Mhm? Yeah. Ooh. Mhm? And why? Why are you getting 18. when it says 19? Because it's a 90-day like. trial. Yeah. Okay. You're You're almost at the end of. that. And then it's only an extra dollar. after that. I didn't Yeah, it's only an. extra dollar which. Odd. May as well just do the 19 now. I don't.

see whatever. Okay. Yeah. Tell me about it, but. hours a week are you working on average? So, I do 40 hours. The thing is is I'm. salary, but yeah, okay. So, this is where I get. confused and so I'm a salary, right? But. when we did the like the interviews and. everything, it was like five interviews. that I went through, but um. I kept asking about the the pay and they. said it was salary, but I'm getting paid. like hourly. So, I don't exactly know.

how that works. getting a consistent paycheck? Yeah. No, no, no. Is it like the same every. paycheck? No. So, you're getting paid hourly. It's. not salary. They said it was salary. That's why I'm That's what what I'm. confused on. Did you not look over the employment. contract when you signed it? I did. No, I did and I signed it and. everything. Um. and I've kind of brought it up a couple. times, but it's not. something. the way that he kind of mentioned it, it. was like, "Oh, well.".

The way I explained it was, "So, would. my salary be 19 * 4 * 12, right? Would. that be like what my my annual salary. would be?" No, it would be like 19 * 40. * 52. you go. There you go. Which, by the way, the 18 that you're at I guess we may as. well do the 19 cuz that's where you're. going to be. Yeah. us to uh 39,520. before taxes and. Yeah, so like 32 after around, right?

Yeah, I mean, you probably wouldn't have. um. very much in terms of taxes, but yeah, it'd probably bring you down to I'm. guessing about 32, 33. Mhm. That's kind. of where I was in my calculations, too, which. um my. That's if you work 40 hours a week every. week, never taking any time off. I do. This is technically my first day. that I've taken off and since I started. But, I assume at some point, I mean, you're only 2 and 1/2 months in, you. will take like a week off. No. Never in your life? You're never going. to take a vacation? That's what I'm saying. So, um.

the way that I kind of had this job. planned out and the way we had spoke. about it was one of my main factors is. growth within a company. So, within the. first year, I would start out as. executive assistant. The second year, I. would. um hire myself out, so I would get a. replacement as the executive assistant. and I would Is this your plan or their. plan? This was planned. This is our. plan. also planned to have you on salary. But, know. I know. That's why I'm kind. of. I'm only a few months in, so if that's. not the way it goes, there's always.

different paths that I can take, but. this is as. per our contract how it's supposed to. go. Sure. The second year I do more management, you know, of not just the new executive. assistant, but the new agents coming in. since we're like a growing team. Man, I. mean, I'll tell you just as someone. who's, you know, had my first time my. first full-time employee and I've had a. couple part-times including kind of like. an internship. I mean, as a business and.

that is a business is real estate thing. We all hope for a lot of things that. things will change. So, I don't know if. I'd like hold on to that. don't necessarily have I don't. necessarily hold on to a lot of things. because I know life is very flexible. You don't always. get what you intended. Um, but that's. the goal so far and that's what I'm. going to have envisioned until something. sways me different and I got to switch. I'm very adaptable. I would hope so.

And if you're very adaptable, adapt to. hitting the subscribe button because. it's a it's a good luck charm. So, yeah. Um. So far and then the second year I would. do more management. with the salary or hourly raise and then. after that second year I would go back. to being a buyer's agent. And the reason. I started out being an executive. assistant, I'm originally. I'm originally from Washington state. I. moved to El Paso about 5 years ago with.

my mom. Interesting. Yeah. I got my license about a year a year and. a half ago. Mhm. I was doing everything. out there, but. this is kind of where I got myself into. a little bit of a. a situation was because. I was serving and I was doing good like. I was getting a good hourly like I'm a. very good customer service you know. connection wise. Okay.

And so I had always had the plan of like. doing something either real estate or. within like buildings all of that. because we actually had. um over 10 acres in Washington state. So. I had wanted to eventually turn that. into duplexes you know or some type of. uh property development. Okay. So I wanted to Well we we we can. definitely talk about what you want to. do and where you want to go and like you. know where you're from and why things. blah blah blah but I want to get into. the finances first. kind of where that's kind of where it.

heads into. So I started to do real. estate but when I started to do real. estate I didn't have the backup like I. didn't have tangible cash or like. I put it on like my schooling I put that. on credit and that's kind of where it. started. Years. So explain your financial. situation before I jump into it from. your perspective. Okay so my financial. situation is getting better. Um as of. about last year once once I started to. do like my schooling and everything.

that's kind of where I got into a mess. but. um. like do you want me to say how much I'm. in debt or do you want me to Well we'll. go through it but I was just curious you. know from your perspective how you're. seeing things. I'm glad it's getting. better. So has the fire been like lit under your. butt at some point and what was that. wake up call if there was? Um so not. necessarily there was a fire like I. would when I got into real estate I was. ready to go but Yeah. it takes time to. get your first client your first.

everything really. So I was like I said. I would I had already put my schooling. on credit so I didn't have money to go. off of. I was living with my mom so I I. pay rent or anything like that but. regardless, I was making purchases like. my signage. I was buying signs that I. should not have been buying like. okay. $200, $300 and I bought like four of. them. What? Okay. For like the open. house signs. And then I had bought a. brand new laptop, which was kind of.

needed because mine was kind of like it. would shut off during random times. So, I did need that, but then I also got a. brand new phone. That one was kind of. out of a splurge. I was like, "Well, I. need to look the part, you know?". Mhm. I had got some shoes, some clothes. Just going out to eat with other agents. cuz it's like. they had a money. Okay, so you spent a. lot of money. Okay. Well, let's get into things. What I'm immediately confused about and. this is kind of what is drawing stress.

immediately is you specifically said the. words, "I'm getting better." Yet you. started your checking account with. -$6.56. How was that possibly going better? Yeah. So, if you want to take a look at. that little screenshot I sent you, that's actually a little like. The budget? The budget. Well, we can get. to the budget after we get through the. debts. It shows um how I've been doing. better. In January is when I started my. job and I feel like I was doing a lot of.

spending. already before that because. I don't know, like seeing that debt, it. was stressing me out and I feel like. of January. Yeah. So, you were getting. paychecks now and you stopped. yet. So, I. How? How is the end of January when. you're not getting paychecks for a whole. month to get to that? like a week into January, the 7th, and. my boss, he was like, "Oh, well, since. we're already going to be around the. 15th, if you want to get paid at the end. of the month so it can just be one full. check." I know I should have said no,

Yeah. but I didn't. sounds weird. I know I should have said. no, but I didn't. So, I didn't get paid. till the end of the month that month. So. Okay, well, let's talk about the end of. the next month. You still only ended. with $7.40. So, all it takes is one reoccurring. charge or pay through, which most people. are on. I'm not. I I do everything off of It's. manual. Yeah, I do everything off of my. head. I have all my all my apps and. everything. Um your rent's not? No, I. don't pay rent. I live with my boyfriend.

at the moment, so. Oh, okay. Okay. Um honestly, the only. big debts that I have are like my credit. card debts and my car. Besides that, I. have. your debts, but we're talking about your. checking account right now. Yeah, so all. of that goes to either miscellaneous. stuff that I was doing. or my debts, which in January I did not. do good in paying towards my debt. I did like $500 towards my debt. In. February, I went up to $1,000 that was.

being paid off towards my debt. account right now. So, let's let's just. stay on subject. But. So, let's let's just stay on subject. So, I'm. we're trying to get out of debt and. we're doing better, yet everything I'm. going to hide the account number. Everything on here that's an X. is crap. It's crap you don't need. Doing. better and this is this was only this. ended only a couple weeks ago this. statement. So, you're doing vending, vending, Uber. Eats, salon crap, vending.

So, the vending actually stopped. Okay, then it must have literally just. stopped. A due class and Naya vending. and Morning Brew subscription and Naya's. vending, vending, vending, vending, Waffle Bus, Empire Smoke Shop, Expensive. Addiction, Best Stop 2, Beauty Place vending, vending, Dairy Queen vending, So, the. vending. Panera Bread, The Best Shop, Blue Ocean.

Smoothies vending vending best up. Uh Zelle and out $100. Who knows where. that went? And Amazon thing Pentagon. federal transfer $300. Oh, okay. But and Amazon and Waterburger. and Panera and K dog and Amazon. and Sam Houston fee of some kind. my dog food.

Okay, and Amazon and McDonald's. And. then there are also lots of Targets in. here. I know you can never tell with. Target if it's groceries or going to. Target. Tell me about it. I stopped I've. tried to stop going to Target honestly. because you go in there for one thing. and it ends up going crazy. the case then there's a lot of Targets I. didn't mention that were just riddled to. the top. Yeah, so like the vending one that's a. little coffee machine at my work and in. my head I was like okay, I don't want to. go get Starbucks so I would make my. coffee at home but then I would go get.

an espresso shot at work. So what I. ended up doing is I actually cuz I saw. that like consistency of like me paying. for the 250 and I know that adds up. So. what I did I bought a $20 mocha pot and. now I make espresso at home. Good. I'm. very very happy to hear that. You're. still eating out a ton though. Not anymore. Within that month yes, but. March I've spent total on expenses which. includes dog food, beauty, fast food, groceries I had spent $250.

So what has turned things around? Um. like I was trying to say when I. when I was in. hard debt and I was barely starting to. get into it I feel like. it was kind of like stressing me out to. the point where I was like not depressed. but like it was feeding into it, you. know? And so once I was able to finally. start to get that that consistent. paycheck, that consistency back I was. like, okay, yeah, all of that needs to. stop and I've been putting it all.

towards my debt. Um Well, good. I'm glad. you've started that. The thing is, you. said uh so far in March, only a couple. weeks in March, and we have all these. habits here which are easy to fall back. into. I'm going to congratulate you for. cutting it back these last couple weeks. That's awesome. That doesn't erase my. nerves around it, especially seeing. people on the show historically. It. doesn't erase my nerves either. Um. that's what I'm like. But, I know myself. and I know that I know I'm a financially.

good person. It's just that once. What? Once I got into this situation, it. kind of like derailed me. that, especially with the debt. I don't. know financially good. Unless you mean. that in a different way than I'm. interpreting it. before I started to get into this debt, I was financially good. That's what I'm. saying. Once I started to get into it, it was kind of like a spiral down, you. know? So, going up, I actually bought my. car. about a year and a half ago, 2 years. ago, but I would not have even bought.

it. I had a. I have a '93 Mustang, um a fox body. She's my baby. And. I was planning to get her fixed up. The. only thing that I that was really wrong. with her was like the AC and the battery. would die out like randomly. So, I went. to take her to a mechanic and I had. the mechanic kind of swindled me in the. sense that he was like, okay, well, we. can do this, but he was like, look at. all these car parts, blah blah blah. And. so, I ended up spending a good amount on.

that and I was like. and the thing that I had taken it in to. get fixed, they didn't even fix it. Yeah, so they kind of got me on that. one. And that's when I was like, dang, like. either I can go into spend more money on. this or I can get like a reliable car. And um. I ended up getting a used car. Okay, we'll talk about your car when we. get to your car. Let's stay on Let's. stay on topic, please. So, what do you. want to. Yeah, so we have credit card debt.

Yeah. Now, how how many years did it. take you to get into this hole that. you're in in terms of the credit card. debt, not cars. A year. Just a year? Yeah. Oh, that makes me extra nervous. cuz if you went into this within just a. year, it could be so easy to slide back. That. I went into it because I didn't have a. consistent job. I was only doing. a job? Cuz I the real estate company that I. started out with. that wasn't real estate? The real estate company that I was with,

they kept insisting that I do not get a. part-time job. Of course they did. That I I know that. now. I know that now. Um, they kept insisting that not even a. part-time job or else I wasn't going to. make it as a real estate agent, like. filling my head with all of this. Yeah, I I realize that now. But, um, that's kind of how that. happened because I kept I kept telling. them and I know they're not necessarily. like my bosses or anything, but I had. like a mentor and she was like she was. like, "No, don't get a job. You're going.

to focus on that job and you're not. going to be able to do real estate." And. I was like, "Okay, so I'm going to just. focus on it completely.". I had finally gotten a listing. I was. about to get a listing. Like I worked so. hard. I brought them in. I did a full. presentation on why they should list. with me. Yadada yadada and um, they. ended up going with somebody else. because of a half percentage less of. commission. Got you. So. Okay, so we have here Sorry, I have to.

cut off the stories. We got to. do the show. So, $4,864. on a Citi Costco card. Yeah. Yeah. Made a only $150 of payments within this. statement. $74.22. of interest. Yeah. Costco card, interesting card to just rack up this. much debt on. It's a pretty good card. I'm not going to lie. And as far as store cards go, it's a.

relatively good card. Amazon's the best. though. Uh 20 % This is 20%. interest rate on here. Yeah. Yeah. We've. already had in 2023 at the time of this. statement. Yes. just only just edited a week ago. You've. lost $239 in interest in just this year. so far. I'm trying to do the snowball. Okay. So, I have actually already paid off um my. Bank of America statement there. And as. of my next check, I will only be left. with $300 on my Apple Pay.

So, I'll really only have two. This Apple card? Yes. You'll have $300 left. Yeah. At the end of the month. So, I'll. really only have those two big cards to. tackle, which I'm going full force and um. hoping by No, I know that by at least. August, latest November, I'm going to be. out of debt. So, okay. Well, the Apple. card, 2033, but that's going to be brought down to.

what? To like 300. When? By the end of. the 31st. $80.50. of charges. Why are you charging on a. card that you're trying to pay off? What's the point of that? Well, let me. see. What was that under? Does it say what it is? And I will tell. you what it is. $40 of interest being. lost on a monthly basis on here. I'm. glad you're paying it off. That's. incredible. I'm I'm I'm definitely not. upset that you're doing that, to be very. clear. 80 80 80. yes, cuz you had Amazon, Waterburger,

Waterburger, Best Stop, Amazon Prime, and then a couple other things that were. cash. So, why are we spending on a card. that we're trying to pay off? Um I had. made a purchase for my boss, and then he. was going to Zelle me money and. were purchases for your boss? No, that's what I'm saying. He made did. a I did a purchase for him. He was going. to sell me the money and in that. instant, I was like, "Oh, I'mma get some. water burger.". I know I shouldn't have. Twice? Plus ordering two things on. Amazon? Plus Best Stop? Best Stop was. gas. Plus having other things on here?

Like what? Like your other gases and your T-Mobile. bill? On a card you're trying to pay off. instead of having it on checking. account? T-Mobile. Metro by T-Mobile? Oh, yeah. I switched over because I was. with Verizon and they were charging me. like $85 Well, that's fine, but again, you have an ongoing charge here to a. credit card that you're trying to pay. off. No, I'm not anymore. The You've. moved it to your checking account? Yeah, so I moved to Metro and that was. just I didn't have the full activation. fee or whatever, so I'd put it on that. card and paid it off.

Now, we have a Freedom card. Is this the. one that you said you paid off? No, that. one is going to be the next after my. Apple. So, this has. $3,865. and $5.05. owed. with a minimum monthly payment of $127. with. interest, yikes, of $88.96. And then, can I add another.

reason. Again, what are you doing $62.89. of purchases on a card you're trying to. pay off? Why did you put your TurboTax. on this? You're trying to pay off a card. while you're putting more down. have money in my checking's account and. Then why did you. When I did my TurboTax. need to do your taxes yet at that time. Why didn't you wait until you had money? When I did my TurboTax, they were like, "Oh, at the end, like you can get your. tax return, we'll take it out of your. tax return." And I had already done it. and I was like, "I don't want to pay an. extra $40 that they were trying to. charge Yeah. to do that." So, I was. like, "I'mma put it on a card and I.

Yeah. And why didn't you wait till you. had money? Yeah, that's the thing. I was going to. My head all of my money right now is. going towards my car. So regardless it. was going to get it was going to get. paid off. Well sure, but it doesn't make. sense to put it towards a place that. debts already have. This is the mindset. around that and makes me nervous. Like you might get out of this but we've. seen so many times on the show where. someone goes crazy and in a good way to.

pay off all the debt then all of a. sudden eventually they get back in it. Then they go crazy get out of that then. they get back in it. If we're putting. things on cards that already have debt. and we're having negative balances in. our checking account. What are we doing? Yeah, so. nervous with that. 30% interest rate on here so yeah. Yeah, definitely I'm glad that's happening. now. And. so far with what I'm seeing here I think. the snowball method definitely works. best for you cuz we have you know. I mean to a certain extent a credit card. consolidation wouldn't be the worst. either but I think this still makes the.

most sense. My. car payment. have another card. So you paid off. another card that I don't have? You said you paid off a card or. something. Yeah, my Bank of America. Okay, so you. just didn't send it. No, I sent it. No, I can't even check. Give me one. second. But it's good to know that that's gone. Yeah, I definitely took care of that. And that was the smallest balance I'm. assuming. It was 1,300. Okay. Jeez, yeah you got yourself into a. lot of credit card debt in just a year.

I did. Mhm. Oh, I didn't send it. I'm. sorry. Do you want Do you want to see. it? Nope, cuz you paid it off which is good. Yay, congratulations. But we also have a. car. Yeah, so that one when I got it I. got it out on my own name. So they gave. me 10% interest. But with that car the sales price was. 2,100 and I got them down to 1,600. So. I'm proud of myself for that one. And. then I did get a high interest payment. but a couple months later I did.

refinance it to 4.25 interest. Yes. Okay. So, my car payment back then. was like almost $400. Now, it's at 300 299. What's your. minimum monthly payment now? 299. Oh, okay. So, right now, not including the. car, you are losing just over $200 a. month in interest just from the credit. cards that you have. That's brutal. Especially 18 bucks an hour, yeah. Yeah, that's really bad.

If I can add real quick, I did also want. to say another reason I wanted to come. on here was because I wanted people who. were kind of in my situation thinking. about getting into real estate or like. already have and kind of went through my. like situation where it's not as easy as. people kind of make it out to seem like, "Oh, you're good. Like just, you know, within the first couple months, you'll. get a deal and then the stuff that. you've paid, it'll get paid off." I feel. like that's kind of what got me as well,

so Which is what I try to tell people. all the time on this show who say they. want to go into real estate, but. everyone thinks they're going to be the. one who's successful, which. I mean It can happen, especially if you. have like that financial backing, but. for people that What do you mean. financial backing? Like you being able. to sustain yourself? That or support. financially in the sense of. um. like I know parents help out sometimes. or just places where you can. sustain for a couple months as you as.

you go on. So, $24,632.76. of debt with a $610 minimum monthly. payment. Mhm. Yeah. And you're likely going to be bringing. home, so we're going to just start with. 19 cuz that's, you know, what starts. I'm going to lay out my vision of this. and then I'm going to take a look at. your budget and see how closely we. align. That could be interesting to see. Mhm, probably mean you're going to bring. home like 3,000 bucks a month. I'm. guessing. Um before taxes, right? After.

Well, if average now should be about. 3,300, then I assume after taxes. At 19. At 19 probably, but that's not. what I'm getting at the moment. Yeah, what are you getting at the moment? 18. So, I'm getting about 2,600. shouldn't. Do you have any contribution to like. 401k's? Is it taking out any health. insurance? Just like that. And you're getting a guaranteed 40 hours. a week? Yeah, well, I mean. a team I work 9:00 to 5:30. Monday through Friday, so I yeah.

Yeah, okay. No. I'm going to say 2,008. That doesn't. make sense. No, that doesn't make sense. Yeah, that's another reason I wanted to talk. in taxes right now. talk about cuz that my my salary and my. like that kind of does confuse me. Are. you sure you're getting paid the full. amount? Have you checked? Um I don't get. my pay stubs. Like I don't have access. work situation. to the QuickBooks. I don't think you're. getting paid correctly. And please.

correct us if if you know, any of us are. wrong here. You know, But I these are thoughts that. I've had through my head, but when I do. bring it up, it kind of gets drugged. under the rug. I don't like these people. you're working for for multiple reasons. now. We've We've had so many yellow. flags and now we're getting like a. couple combined red flags. Yes, I totally understand that, but. compared to where I was working before, the environment is That's good, but at a. minimum you should be getting the paid. that is Yeah. Yeah, and I kind of you're.

getting 1,800 bucks after taxes on a. monthly basis right now, correct? Is. that what you just said? No. Um. 2,500-ish. Okay, that might be. That might be about right. Yeah. It hasn't seemed that crazy to me, but I. haven't really wanted to I wanted to. bring up seeing my pay stubs, but since. this is my only consistent flow for the. moment, I don't want to risk anything um. putting me back to where I would have to.

like pull from cards or something. I'm. sorry. So, is it 1,500 or 2,500? 2,500. I'm going. going to say like 20. 650. is what would be coming in. on a monthly basis. So, okay, 2,650. dollars. Mhm. I'm going to lay out. So, you do. not pay rent cuz you just live with your. boyfriend and he and he doesn't expect. anything? Mhm. You pay utilities? No. Do. you pay groceries? Right now that he. knows my financial situation, he kind of. just wants me to pay off my debt and.

yeah, get on get all of that out of the. way. I like that, dude. Yeah. Don't like your boss, but I like. this dude. So, groceries, you do groceries? Well, I pay for my like um groceries. here and there. What is that? Um like meal preps or like lunches and. stuff. I'll pay for food sometimes. So, what do you set aside for groceries. on a monthly basis? Um on my budget, I. have 200, but I usually only use like. 100. Okay, we'll do 200. 200 for groceries.

We'll have I'm going to set aside since. it's his place, but an extra 50 dollars. for like toilet paper and stuff. That. kind of crap. Just extra things for the. house. Does that make sense? Uh it's awesome that you don't pay rent. That's great. Now, your minimum monthly. payments, of course, 610 dollars, which will go down as you. pay off things, but that's your debt. Health insurance. Are you on your. parents' health insurance? Yeah, good. What's your car insurance? Um uh 180. Okay. So, it's not bad, but it's not the. best. You don't pay your tolls, you. don't pay this.

I pay my phone bill, which was 80. dollars, but now it's 40 dollars, 42. Any other monthly payments that Mhm. are necessary? Renters insurance. Dog food we can include in here, so. That's. a thousand Yeah. 82 a month. That's what I had figured to. survive, basically. Yeah, pretty much. Which means yeah, you can throw a lot. towards things. Do you have an emergency. fund of any kind? Mhm. You have nothing. saved up? Well, if I put everything on.

my credit cards, I don't. Mhm. What? If. I had put everything on my credit cards, I I didn't have any emergency. Okay, I. think it might cuz right now you're. relying on your boyfriend for a lot. Mhm. Which is what? For my living. That's a lot. Yeah, that's true. That's. huge. That's usually like everyone's. biggest monthly expense. That's a risky situation relying on a. boyfriend for that. Mhm. Um. I don't care about the status of your. relationship. That does not determine. the amount of risk really because either.

way, relationships can just end. Marriages can end, but relationships can. just end. And that's what you're in. So, I think actually this next month instead. of immediately trying to pay off this. Apple Card, I think you set set aside. the extra courses and, you know, your. current pay. of 18. So, it's a little different, but. essentially the extra thousand four. hundred dollars a month, I would put. that in a high-yield savings. Mhm. I I. really would. Yeah, that's what I had. thought about, too, but just seeing that.

debt, it it it gives me anxiety. I I get it, but. there is a level of risk that when. people don't have enough saved up, if. something bad happens and you don't have. that, your debt situation will get worse. than it is now. I get that, yeah. So, to avoid that, we. get ourselves into a slightly. comfortable position. And by that, I. think if we just have like 2,000 bucks. saved up for you, I think that could be. okay. Um yeah. So, that's what I would do next. uh for the remainder of this month, Okay. your next paycheck and stuff like.

that. Then next month, I'd put 500 bucks. towards that $2,000 high-yield. And then. I would put a thousand bucks towards the. Apple Card. Well, I just opened a Roth. IRA. Nope. Nope. Nope. No. Doesn't make sense to invest when. these interest rates are 30% 20%. I haven't put anything in it yet. this is not your emergency fund cuz. you're not going to pull from that. Yeah, that's true. So, in high yield savings. Okay. Then you. can put a thousand dollars towards the. Apple Card. Then, start of We're. considering this.

We're considering next month month. number one, but you're just finishing. this month by putting it like. Yeah, a little bit towards that. How much do you think you can put. towards high yield savings this month? At the end of the month, probably like. Um I have to pay. Without paying extra to debt. 1 300 1 480. I could probably almost put. 800 to a thousand dollars in there. 800. to a thousand. We'll call it a thousand. Make it a thousand. Mhm. Cut back in what's necessary to make it.

a thousand. Then next month, you're. putting a thousand. So, start of month. number one, you're putting a thousand to. it and that's two thousand. Then you're. putting 500 to the Apple Card. Mhm. Then, month number two, putting. 1,500 towards the Apple Card. Apple Card. is paid off. Month number three, to the Freedom Card, putting 1,500 to. it. Then month number four, putting. 1,500 to it. Then month number five, we're putting about 400 to it or so, whatever is necessary. That was month. number four, right? If I'm not mistaken.

So, it'll be in about May, June, right? And then month and then the remainder of. a thousand will go towards the Costco. Card and then it will take another like. five months to pay off the Costco Card. So, at that point. Looking about around now. We might be. like nine months in. Mhm. So, we're. pretty much ending the year. All right, ending 2023. Now, the interest rate on the car. was 4%, right? 4.

Yeah, okay, 4%. What is the car? It's a 2016 Buick LaCrosse. I know nothing about the reliability of. that car. How many miles on it? Oh, when. I got it, it was like 60. Yeah. 60,000? Yeah. Okay. For a 2016, I don't think that's bad. Um. And it was really well maintained. Like, it's a very nice car. I think what I'll. do from there, cuz now that that minimum. monthly payments are kind of cut in. half, instead of paying off your car in. this snowball thing, what I would do is.

you should have about. $1,750 left on a monthly basis now. Mhm. And you have 2,000 sitting in your high. yield. For 4 and 1/2 months, I'd put. $1,750 towards the high yield until you. have 7,500. saved up. So, we're a year, 4 and 1/2. months in. So, minimum. $10,000 saved up. Minimum payments until. that, right? On my car? Yes, yes. And. then, cuz you have nothing in. retirement, I'm assuming. No. And then, from there, what I would think.

about with this car situation, I would. you know, you barely have any needs. I. don't know what it will look like then. Maybe you'll start contributing to rent. at that point, because you don't have. the expenses of a car. But, anything. that you would put towards extra that. car, however you want to lay out the budget, anything extra you'd put towards that. car, I would actually put towards. investments. Yeah. Because, if we're. using the S&P 500, which is not. investment advice worth getting into, but if I was doing that, I would know. that the average, even in up and down. years when you dollar cost average, the.

average of the S&P 500, 10%, will beat. the 4%. Now, if that interest rate was. getting to 6%, it's closing the gap, and. the risk is a little higher, and that's. where you start to hit down the car. more. But, you have a $10,000 emergency fund, which helps also take away some of the. risk, and you can start investing. towards that. In terms of that, I would. max out your Roth IRA on a yearly basis, and a little more, because there's not a. 401k through your work to take advantage. of. Yeah. So, I would probably try to. max out $6,500 for your IRA, and then. probably do an extra at least four at.

least $4,000, $4,500 in a brokerage on a. yearly basis. So, 10,000 bucks a year. being invested at a minimum. I do have a. brokerage account. I don't use it. I wouldn't yet not until you get out of. the credit card debt. And at that point, you're doing minimum monthly payments to. your car. But, if you're going to go. spend a lot of extra money you can have. fun at that point. If you're going to go. spend a lot of extra fun money, take. most of that instead and put it towards. your car. I'm not really a bunch of a. goer outer. What I'd be spending my. money towards, as you can see, was kind. of my issue was food, which I've cut.

that off basically. I get it. I get it. But, like I'm talking Yeah. Especially. with. going to go spend a bunch of money. eating out and stuff, I'd rather have. that go towards the car if anything. But, I would do minimum monthly payment, max. out your Roth IRA, do an extra $4,500 in. a brokerage on a yearly basis. I'm a bit of a stress eater. Me, too. Um. Ooh, stress eaters. Let's go. But, I think that's it. So, go ahead and. pull up your thing and let's see how. closely it aligns with that.

Okay. Yeah, and as you can see, in. January, I was starting out with. expenses almost $1,500, which in March that was cut down to like. $240. And in. Yeah, the more you can cut your. expenses, like I gave you a little more. room than you gave yourself, but barely. But, um feels like more money's left over. than is actually there. Towards the debt specifically, instead. of putting that towards the debt this. isn't a broken down budget. So, we can't. really see if it fully aligns. Either. way, in terms of putting towards the.

debt again, let's get 2,000 bucks in our. emergency fund first. I do have a a. whole the Brew Coffee the Brew thingy, that was actually my budget. I had. bought an Excel like sheet that tracks. transactions. and does the whole dashboard each month. cut down. Yeah. Cool. Well, um. Yeah, I mean you're obviously on the. right track. So, that's good. You got. into a bad situation. My fear is just falling back into it at.

some point because whatever happens, a. breakup happens, this happens, this. happens, you know, or we just, you know, lose the care. That's my fear. This is still like a. year and a half process though cuz your. income is limited. The debts are high. for your income and then we're far. behind on retirement. So you're not. going to have a great hammer financial. score, spoiler, but it's okay. You will. in a year and a half if you go. Oh, and other thing, I don't want to. just be permanently negative, but the. thing is you've demonstrated, you know, paying towards that but for like a. couple weeks. This is a year and a half.

Yes, but. So will that be maintained? Considering. that I've really been paying for my own. stuff since I was in my teens, I feel. like this. you don't have rent and you live with. your parents and I live with your. boyfriend. But in just the sense of even debts like. car debts, I could have gotten into like. a crazy car debt. I've never I've never. been really one to use my credit card. debt my credit cards and when I did I. was always paying it off. It was within. this last year that that really just got. to me and it it like I said, the more I.

saw it grow, the more I was willy-nilly. just not caring about it. And I hope it all works out. I just I. feel a responsibility to be realistic. from my perspective on the situation. it. That's also what I needed in the. sense just to make sure that I am going. on the right track and just a little. reminder that. that I could slip up and like cuz like. the emergency fund I hadn't planned that. till the end of my debt, but I do. understand why that would be necessary. at the moment. yeah. So, any final thoughts?

Um no, it was a good conversation. Awesome. Yeah. Thank you. Of course, of. course. For Ariel hammer financial. score, as I said at the end, right now. it's not going to be good cuz it's not. good, but she is making progress. She's. clearly on the right track. What we're. doing is minimizing some risk with the. emergency fund, but in general, she is. going to be in a good place, just not. right now. Hammer financial score three out of 10. You will be there at a seven, eight out. of 10 in a year and a half. I believe in. you. We will keep in touch and update.

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