Quits His Job Every 6 Months And Wonders Why He Can’t Afford To Live | Financial Audit

I am Joshua. I'm 33 years old from the. DFW area and this is financial audit. [music] Beautiful. Thank you for coming. down. What do you do for a living up in. DFW? I'm actually a firefighter EMT. Very. cool. Okay, well thank you for helping. save people's lives. Absolutely. Uh yeah, that's awesome. What do you. what do you make doing both those? just like I believe it's right at. 61,250. And that's without overtime. Pretty specific. Now, how often is. overtime? Uh. lately it's been often. So, I've.

actually the last two pay periods I've. had between 30 and 40 hours overtime. Really? Wow. Geez. Okay, what's the pay. period? Every 2 weeks? uh every 2-week pay period and we're on. a 28-day pay cycle. So, like I'll have a like a $1,800 check, $1,800 check, and $1,300 check cuz one. of them's only 90 hours. So, what would. you say on average with some overtime. months, some less overtime months, what. hits your bank account on a monthly. basis on average? Mhm.

Guess it would probably be about 3,400. Okay. Taking in How do you feel living off of. 3,400? Um. it's I mean it's doable. Um How long have you been doing this? How long have you been making this. income? Since uh December. I just got hired in. December. Oh, what were you doing before that? I. was going to say cuz you got yourself. into quite a bit of debt. Yeah, so I've had quite a past when it. comes to both school and work. Uh. I've worked a lot of jobs cuz I went to. college cuz that's kind of what you're.

supposed to do, right? Go to high. school, go to college. study? Uh economics. Graduate? Yes. Okay, cool. Went to UNM and uh. after that I had a bunch of office jobs. just cuz that's what you're supposed to. do and I did not like any of them and I. kind of figured it was like a well, this. one will be different, this one will be. different, I'll like this one and I. would be there for 6 months to a year. and I just I couldn't sit behind a. computer for 8 hours a day. and so I I up changing jobs. Um I was actually a police officer for. just over a year. So, I did that and.

then I realized that wasn't for me. And I went went to the dark side as they. say. I switched and so I went to the. fire academy. Still in the service place and then. you've only been in December. Yeah. How long until you switch career paths. to being like a gardener next or. something? So, I can tell you I'm not going to do. that. I love this job. I've actually never had. a job that I enjoyed so much. So, this. is definitely where where I want to be. for 20 25 years. So, throughout all. these situations of kind of thrown on.

your career a bit, which you know, I. mean, okay, fine. Exploratory, that's. fine. You're not not everyone's going to. land in the thing they want to do. And. that's totally fine. It's. You but you've jumped a lot. Yeah. Through that jumping, is that what got. you into all the debts? So Kind of, yes. So, [clears throat] the the credit card. that I have has kind of gone out of. control at this point. Started out I used So, I had a credit. card with like a thousand dollars on it. and it was like a Cabela's credit card. and I just transferred it to. Cabela's? Yeah, cuz I worked at Cabela's. right out of college. I worked there. a restaurant? No, Cabela's it's.

Bass Pro Shop Cabela's. Oh, okay. Yeah. So. I don't go outside. Oh, okay. Got you. So, it's a sporting goods store. So, I had a credit card with like a. thousand dollars on it from there and. just transferred the balance to the. Chase card cuz it was zero percent. interest and I was like, okay, I'll just. pay this off. Mhm. And I was doing fine and then. left Cabela's, went and worked for a. financial firm ironically enough and I. was there for six months. Mhm. I was contract with like three. other people and they didn't renew our. contract and they kind of let us know.

last minute. We're supposed to be told. 30 days out and pretty much a week out. they're like, "Hey, so, you don't got to. come back next week." So, I didn't have. a job lined up at that point. we have emergency funds. Yeah. And so, when I got laid off from that, I didn't. really have anything lined up in that. moment and so, I kind of used the credit card there and. that's kind of where the credit card. started just for. basic necessities. Um. So yeah, there's. Credit cards are a risky thing cuz you. were kind of a credit card person. Don't. even say that. You built up a thousand.

dollars on a Cabela's card and you. weren't paying it back and then you. transferred it to 0%. So you're hardly a. credit card person, but that even went. when is a credit card person. Like I. mean you can totally fall in the trap. eventually so you just have to be really. cautious and understand your own. behavior. Right. But [snorts] that's why. not having an emergency fund is an. emergency. Absolutely. Cuz you just [ __ ] your future self. What How old were you when you did this? Uh would have been 25. So for almost a. full decade you [ __ ] yourself because. you didn't have an emergency fund. He. didn't have an emergency fund so he. [ __ ] himself for a decade.

Yeah. Learning lesson right there for. sure. It It gets better. You'll Yeah, this. great. Yeah. Well, if you want this to. get better hit that subscribe button. We're trying to get to 750,000. subscribers. And thank you to everyone. who has subscribed. I love you so much. What? What? How's it get better? Yeah, how. does this? Okay, so the personal loan. that I have that's 20 I mean we're kind. of skipping ahead quite a bit. So Oh, so. getting into the debt Okay, well I guess. we can talk about those as we get into. them, but. Oh.

is the primary function behind where. we're at today or the primary cause. because you were just. you didn't have an emergency self fund. and you just lived off the debt? Pretty. much. Oh, is it? What about Are you going. further into it? Have you fixed your. behaviors? What's going on? So uh just recently probably about a. month ago I went and set up a second. checking account with my bank and so. every bit of overtime that I work I put. into that checking account and the only. thing that that pays is my credit card. So last month I paid $634.

off. properly to make sure the amount of. money that you should be putting towards. it is as maximum as it should be? Um. well, so basically I've been living with. no overtime. So I just take all the. overtime and throw it into that. Yeah, but that's awesome. That's like bonus. money. What about everything else? Have. you been budgeting very strictly to get. [clears throat] yourself out of the mess. that you've gotten yourself in? No. Why? Well Why possibly? Um Especially. since you said he saw a lot of this show. beforehand. Yeah, so I don't really have. a good excuse. Um I'm pretty much.

paycheck to paycheck, so I could. obviously budget and you can always make. everything. easier on yourself. Um Well, yeah. But I. mean I don't have a lot I guess I guess. the way I just look at it is I'm. paycheck to paycheck and I don't really. spend a lot of money on dumb stuff. Most. of my money every month goes to that and. so. um I guess I never really All right, well let's look at the situation. First, give yourself a score zero to 10. Mhm, I feel like I'm not the worst I've. ever seen on your show, so like a two. And if you're wondering why I go so hard. it's because that's the mentality of. everyone. It's not good. But it's not.

that bad. [ __ ] you, it's bad. Well, okay, pull out this credit card. cuz this is the bad one. This is the bad. one, but I don't have a statement in. front of me. Fun [clears throat] fact by. the way, of you before we even get into. this Yeah. out of your accounts, uh. you're saying you don't. I don't spend that much money and most. of it just goes to debt. You spent about. $600 on fast food. Not just fast food, but just eating out and taquitos. Okay. Yeah. So. Yeah. Absolutely. Don't come to the table with [ __ ]. Cuz that's going to piss me off.

immediately. Like if we're doing Why are. you spending? Why are you spending? This. is. This was the This was just a few. This was the day! So Today a stupid. vending machine. So. Why possibly are you spending on a card. that you're struggling to pay off? So. for whatever reason at that at that. vending machine my debit card wouldn't. work. For whatever reason it just it. kept trying and trying and trying. we don't vend. Fair enough. The other one that's on there that was.

from yesterday, I believe, that was. groceries and that was because. Why had a card? Because I currently. don't have I have like $190 in my. account. Why do you only have $190 in. your account? I guess poor spending and no. No, cuz you're not budgeting, dude. You're not budgeting. It's like the most. simplistic thing you can do. This is. basically maxed out. You said it. You said everything goes to this card. You said everything goes to this card.

Why the [ __ ] is it possibly only $300. from being maxed out? So, before I paid. the $634 or whatever it was or $664, it. was at $12,400. It was actually $200. over max after interest. Uh-huh. And the month before that? Oh, no. So, uh So, by you putting everything towards. the card, you mean you've done it for a. singular month. For a month. Correct. Because that's when all the overtime at. work opened up. Not many things piss me off, but if we. come to this table we start bringing. some [ __ ]. Yeah, no. I mean, it was very I mean,

the extra cash second checking account. that I set up, I just set up like 3. weeks ago. Yeah, not spending money. Spends. venomous machines spends. $600 going out to eat and getting into. ketoes. Regardless of that debit card, dude. Regardless of the debit card. Should you. really Cuz you go to this vending. machine every second of your life. No, that was only the last 2 days. What? This is July 20th. 20th. 7 days. ago. Okay. Again, you I come to the table and bull.

What's a whoop? That's whoop. It's this. Oh, I've heard good things about that. Yeah. Um. I want to be putting it on the credit. card that we're trying to pay off. Yeah. And yeah, especially your groceries. Why. are we putting it on here, dude? Cuz I don't have the money to buy the. groceries on my debit card. No, I mean, I'm just telling you why. Yeah. And Hat Creek Burger and Amazon? Dude, you're spending money you just. don't have. You're spending money you. just don't have. It's 24 20 It's 20%. interest. 20% death interest. I can't.

even see how much interest is accruing. on a minimum monthly Oh, wait. Let's. see. Let's see. Oh, here we go. $202. $202 because you're deciding to still. spend money on here instead of paying it. off. Is getting sucked from you. $202 on a. monthly basis is getting absolutely. sucked from you and killing you. And it is not worth the 30 pending. points you have. That's 30 cents, right? If I'm not mistaken. Okay. [snorts]. Available credit $27. $27.

Um $27. cuz of probably future interest accrue. and everything. Oh, okay. What's your minimum monthly payment on. this thing? Uh 330. Um so, 10% of your income? Right. Which. is insane. You did yourself in with this and stop. spending. If the first thing If the only. thing you take away from this, stop. spending on that card. and budget. If you don't have the money. in the checking account, you don't have.

the money to do the vending machine. I. don't give a [ __ ] You don't have the. money to pay for the subscription for. Whoop but you hear good things about it. But if you don't have the money to do. it, you can't do it. Yeah, I was actually going to cancel. as that. I was actually planning on. canceling that. I looked last night and. they make it real difficult to cancel, but I was going to knock that out today. Just say Just you can you can. dispute it on there. Just be like, "No, they're [ __ ] with me.". Like Like just be like, "I wanted to cancel but they're making. it hard to cancel. Stop." Okay. And the credit card will just deny it. Okay. But again, I hear good things about the.

Whoop. We just need a budget, dude. For. sure. Uh we have something in here. Regular. savings account, $35. Well, that was I. had to put money in the savings account. to get a. PenFed. I don't use that savings. I saw someone have this account for the. other the other day. First time this. credit union. I've never heard of it. Is this the personal loan? Yes. Dang. Okay, so we have a personal loan. Personal loan is at. $22,654.

Uh sorry, $22, $296 now. So, there's a payment. Uh, I can't see the minimum monthly. payment on here, though. That's. 501. Jeez, dude, these minimum monthly. payments eating you alive. Yeah. And the interest rate on this? 5.6. 6 or 7, something like that. Okay, well, that's not absolute death. Certainly, we. don't want to be having it. It's over 4%.

and it's not going to anything. productive, anyway. Right. But, was this you consolidating. some credit card debt? Yes. Okay, so that is where I'm good. with that as a concept. But, what a lot. of people fall into, and this I think. includes you, is you consolidate it. Okay, now there's a balance on that. other the card that usually just goes. right up to the moon again. So, exactly what happened. Exactly. So, that's why a lot of people. are against it. I'm okay for as a tool. And then, the other reason some people. are against it, and they are correct, is. you put this on here Mhm. and then you. stop making progress on paying it off as.

quick as you should. Okay, yeah. Yeah, because you feel like you've made the. progress or you refinanced it, so. that's bad. When did you do that and. then max out the credit card How long. did it take you to max out that credit. card again after [ __ ] paying it off? Uh, uh, year and a half. Cool. Yeah. Everyone always asks me what checking. account I use and what high yield. savings account I use. Recently, I. switched over to SoFi. The reason I did. it is because their app is very. intuitive and it's super easy to use on. your computers as well. But, even better.

than that, their high yield savings. account is all the way up to 4.4%. at the time of recording this clip. That. is so hard to beat and I am taking. advantage of that all day. And not only. that, but there's additional bonuses. that I took advantage of that you can as. well. Set up direct deposit, get a $50. bonus, or all the way up to $250. That's free money. That's free money. I. took it, you can take it, too. So, check. out my affiliate link in the description. below. It's seriously awesome. I use it. each and every day for my banking needs.

You had a full year working? I. [clears throat] was working part-time. cuz my son was born and I was going to. a kid? Yeah. How old's your kid? 19 months. Oh, okay. I was going to EMT. school um. and working part-time cuz. uh we kind of did the math and it didn't. really. like it was kind of a six of one. situation where I work part-time. um or we send him to daycare cuz daycare. was so expensive. Wait, you have a wife? Mhm. What's the household income? I assume. it's 55 a year. Oh, that changes the.

story. Yeah. Does she have debt? Uh. minimal. She has a car and then uh credit card. with like $1,200 on it, I think. I'm. auditing your finances, but that could. that does change. That adds household. income, which should Yeah, how do you. guys do your finances combined? Uh no. So, we know we need to get a checking. account like a joint checking account. and do all that. Uh the only issue is we. can't agree on what bank. Do you. the one I completely switched to was is. the SoFi one. Okay. You can do that one.

cuz then they have the high-yield. savings of 4.4% at the time of making. this video. Okay. And there is a paid. affiliate link in the description below, but I only partner with them because I. wanted to use it cuz there's sign-up. bonuses and stuff. Got you. It's really good. I I use that. Yeah. I. would recommend it. It's really good. Uh. and then we have a. automobile loan. Mhm. That's hers. Oh, this one's hers? Yeah, so I sent over her stuff, too, cuz. I knew it was Oh. combined and so. What's your average Well, do you know. her average take home?

Oh, [sighs]. no. I sent her. to figure out. her bank statement as well, so like her. checks will be in there. Okay. Yeah. So, this is her car. Yeah. 4.54%. which is not ins- that's uh. I for auto loans, I'm more of a. 3% or lower kind of person, but. Right. 72 months, though. Mhm. I mean, it was it was her her deal. Uh So. If you're watching this, tisk. tisk. 72 months, tisk tisk. What was the.

What's What's the car? Uh 2016 Ford. Edge. Ew. [snorts]. I think uh. She really likes it, so. Okay, as long. as it's being taken care of. Oh, yeah. Absolutely. $330.26. $330.26. a month. What's her credit card? She owes 1,200? Something like that. Yeah, I mean she. she rarely uses it and so. [clears throat] she's trying to She. needs to stop using. it. Yeah. Well, she's kind of running the.

same issue I have is just, you know, We need a joint checking and we needed. to have a household budget. It's probably like a. $30 minimum monthly payment or something. like that. It's probably at like 20 to. 30% interest. Jeez. Okay. And the debts continue. Student loans, whose is this? Yours or. hers? that's going to be mine. Okay. Yeah. And. these are about to resume. Right. They're probably 4 to 6%. They are.

just over five. Okay, on average or all of them? All of. them. I consolidated all of them, so. Oh, you did? Yeah. So like 5.5? You say just over. five, what's what's the just over five? I I honestly I'd be lying if I could. remember. I don't know how to say. 5.5. That may be hers. My student loans are. in there, too. I thought those were. mine. Those may be hers. Cuz. if that's the total of 12,000, then. that's hers for sure. Why? Cuz yours is. [snorts]. Well, I don't have it, so you got to.

tell me. Oh, okay. Hers are probably 4 to 6%. I was going. to say they didn't look consolidated to. me, so that that makes [clears throat]. much more sense. Go on. 72. Dude, that was it. Why? So. Just for economic school at A&M No, no, no. So, so it's So that's. 18-year-old me. Um. So I took out loans, obviously, but. I spent about 6 years. So my whole goal. was to get into A&M. So I went to. community college for a year. That.

wasn't a good deal. Then I went to. Blinn, which is a community college in. College Station. Okay. Thinking it would be easier to get into. A&M cuz that's kind of like the rumor. It wasn't. So I did a semester and a. half there, and then I got into A&M, and. I ended up doing like another 3 and 1/2. years once I got into A&M. Why? Were you. just hanging around? Um well, because by. the time I got into A&M, a bunch of my. credits didn't count towards my degree. Why? So cuz I was taking filler classes. just trying to get my GPA up to get into. A&M. Dude. And then. So you were not planning, and you were. not talking to advisers? Um well, no, I.

mean, kind of. Essentially what happened. was my GPA wasn't high enough, so I had. to keep taking classes to bump it up and. bump it up and bump it up. And then by. the time I got into. Maybe college isn't Okay, go ahead. [laughter]. And then by the time I got into A&M, um. pretty much Econ was the only option I. had, and so a bunch of those classes. just fell off and didn't count. And then. you refinanced the loans? And I. refinanced the loans. Why? Um to get I. guess one payment, and then some of them. were upwards of 7%, and so. Yeah, well, that's fair.

They They've not been paused, have they? Cuz it's probably a private company? No, no, no. They're federal. Uh oh, you consolidated through the. federal system? Right. Uh 72,000. It's probably going to be the. basic with the basic. Cuz I've been on the income-driven. repayment program until they were paused. due to COVID. But it's going to be about $700 a month, dude. 5%. plus. Okay. And we decided to go get a house.

Yes. Locked in at a sick rate of 3.2%. then. Yeah. Love that. So we're probably minimal monthly. payment till this thing is paid off. Which is I'm chilling with that. That's the first thing that isn't making. me vomit. Okay. [snorts]. Balance 230. How much of a house is that in DFW? Uh. it's a pretty small house. It was built. in 2018. It's about 1,500 square feet. Mhm. It's still pretty Maybe I'm just used to. Austin prices being insane. How much did.

you guys put down? And when? so we put down like 10 grand because we. did the first-time home buyers so we. didn't have to put on a whole lot. That. was November of 2020. We've been there almost 3 years. Yeah. Housing must be lovely affordable up. there if that's what it was like in. 2020. Geez. Yeah. We got in right before. the the market went through the roof. Like right before. So. Okay, so this is. one of your checking accounts. Yeah, that's my main one.

Prosperity. Don't spend money on ghost. psychic customs, taquitos, Venmo's out. money, and Chick-fil-A, and taquitos, and Amazon, and Amazon, and with Taco, Amazon, Amazon, taquitos, and or Venmo'ing out money, Venmo'ing. out money. Microsoft things, Venmo'ing out money, Venmo, Whataburger, Little Elephant. Little Elephant's the childcare. Oh, I'm chill with that. Okay. Well, yeah, no. It is. Childcare is so stupid. expensive. Yeah, that's just it's.

it's two payments a month so it's. actually yeah. Oh, definitely put it on. the budget. Chick-fil-A, Venmo, Venmo, Venmo, Amazon. So the Venmo a majority of those Venmo's. are going to be. to my wife and from my wife since we. haven't combined checking accounts. I'll. pay a bill and then she'll Venmo me half. of it and vice versa. And then also at work we Venmo $20 at. the beginning of every shift for meals. and then we go to the store and buy food. and What? Wait, what? So we have to buy.

our own food. for the shift cuz we stay there for 48. hours. So. so oh, you grocery shop every day for it. instead of. No, no, no, no. I'm just saying you'll. see it's it'll be every 5 days on there. cuz we're on 48 hours and then off 96. hours. And so there'll be a $30 Venmo at. the beginning of every month. And then. after each shift after that to the end. of the month it's $20 cuz we Venmo into. a joint account and then go to the. grocery store and as a crew we buy food. for the whole shift. Oh, [clears throat]. okay. So a lot of those Venmos are going. to be You can't just do a one-time pool?

Instead of $20 a day or shift? Um I mean. I guess we could but sometimes you swap. shifts with people or like you take off. this? Is this your doing or is that what. everyone does there? That's what like. 90% of departments do. It's just the daily Venmo. I mean I wish. it was more like a thing we could budget. at the beginning of the month saying. this is the amount. Well, I mean it'll be. $30 for the first shift and then. there'll be three shifts after that. that'll be 20. So I mean you. shifts do you have a month? Um well, it. depends on how long the month is but.

four to five. Huh? Four to five? That's. all? Yeah, it's 48 48 hours, right? Yeah. Yeah. Oh, so it's 130 bucks. Mhm. Okay. Cool. Well, we'll definitely put. it in the budget and that makes sense. That makes sense. Um I just wish it was. something we could just. All right, here's my pool and then. whatever is left over is just like. carried to the next month. Or if there's. more then you have to chip in more if. you're you're running out of your. [gasps]. part of the pool. Whatever. Whatever. It. just makes it a little more complicated. to budget but it's fine. We can figure. it out. Wells Fargo, whose is this? It's my.

wife. Okay. She has $188 in there. Mhm. [snorts]. Yeah, this is Zelle and Zelle and back. and forth. That's all it is and some. bills. Zelle Zelle Zelle Zelle Zelle. Zelle Zelle. Mhm. And this is yours? No, that's ours. It's the same? Um not sure. I just sent over what she. sent me when I told her I needed. Okay. I believe she only has one account. That's you. She Zelle'd you for. insurance, Costco. Mhm.

[clears throat]. Costco insurance? No, no, no. So um. she's on my health plan, my health. insurance. So, like that's another thing. that takes out quite a bit. So, for her. and my son to be on there, it's $700 a. month. Cool. So, she Venmos me um $200 a. month. So, it'll be like a 100 and 100. Just to help cover that. Um mortgage, daycare, that's fine. Circle K, taquitos. More insurance. [snorts]. Daycare and insurance. So, can't make. all the payments at once, it's looking. like.

Right? Uh which. I'm not sure what you were referring. I don't know. There's just. with I'm referencing the Zelles. Oh, I. mean. are what they're labeled. Yeah, so. Another insurance, mortgage again, insurance again. Mhm. So, I mean she. Ven- or Zelles me once a month for the. mortgage, twice two to three times a. month for insurance, just depending on. how much money she has at the time, and. then Okay. daycare is twice a month. All right. And then that in the back is my on the. very back sheet of that, you can see.

it's my retirement. Yeah. How much does she have in retirement? Uh. I don't know. I She just started her. 401k like a year ago. Okay, so basically nothing. And then you. have basically nothing, especially for. your age. You have 5,707. Yeah. So, especially since we have a kid, you. now have a responsibility to make sure. that you are taking care of your self. self, she's taking care of herself, you. guys are taking care of each other as a. couple and being ready to retire, so. that the kid is not put into the morally. responsible position to take of having. to take care of y'all. Absolutely. So,

they will feel no matter if you ask it. or not. Absolutely. On an average. Relationship. [snorts]. Okay. So, what's the I don't I don't. what's this even invested in? Um so, it's the. it's basically the state's retirement. for first responders. So, they they take. it and just invest it for you. Um I put. in I think it's like 230 a month into. that, and then they. have different portfolios you can pick. from, or is it just a one-size-fits-all? No, it's a one-size-fits-all, but you. can get a 457, which allows you to pick.

and choose a little more, um, which I. plan on setting up cuz most first. responders have TMRS plus a 457. Yeah. Um Does this have a What's the max on. contributing to this, do you know? I'm. not sure cuz I can't I mean I'm not able. to Does it work similar to like a. pension? Yes. Is it a pension? It's not a pension, but it's similar. Um. And then the 457 I plan on setting up. once I've paid off enough debt to be. able to contribute to two retirements. yeah. What's the Do you Are you doing. like a certain percentage to this on a. monthly basis? Um I don't remember what.

I set my percentage, but I know it's. like 230 bucks a month. Is that being matched by anything? Yeah, it's being matched by employer two. to one. Uh. two to one? so. They're the two? Mhm. All the way up to that money to the. amount you're putting in? Yes. Yeah. They'll do it They'll match. it to the max, but I'm not at the max. Oh, they'll match it to the max two to. one? That's incredible. I believe. It's been 3 years since I set. it up. One it to the max? That'd be crazy. I'd.

look at I'd just extra extra confirm on. that, but I'm still I mean that'd be. awesome if so. But this debt man is. rough. Cuz you guys have got to play catch-up. You're You're 33, how old is she? Uh 32. Okay. Yeah, so. I'm scared for you guys' future cuz. you've just put yourself in quite the. hole. So, something we've been throwing around. which cuz the mortgage is at a really. good interest rate and that's the only. reason we haven't, but right now we've. talked to a realtor and I mean we could.

sell and we could make $100,000. and no capital gains tax cuz we've been. there 2 years, but then the problem. arises of getting into another house. Yeah, it's getting into another house. You'd be getting in at like an 8% rate. at this point or you'd be renting. Now, rent. Rent right now in most major cities, you're actually getting a better deal on. your money than if you were to get a new. mortgage, but with you locked in at that. 3% at about a 2,000 So, on 1,500 sq ft. No, I mean I don't know. You you would probably. It was Austin for like 800, 900 sq ft,

probably be paying like 1,500. So, I'm. curious what it's like up there. It's. really similar, actually. So, you can. find some good rent houses. We found a. couple um like a 1,600 sq ft rent house. for 1,700 a month, but those are few and. far between. Mostly are. If you want it like two bedroom. houses a big thing, though. Yeah. Yeah. Having a family is a big thing. You guys. can Mhm. I love this rate. I think I'm just going. to try to do everything we can to hold. on to this house. Yeah. Yeah. Cuz I mean we had we had run the.

numbers and we could pay off pretty much. all our debt except student. that part feels good. That part feels. good. This thing should be a big wealth. builder for the rest of your life. Mhm. And I mean, even if this isn't the house. you retire in, when you get to another. house, you're going to be able to roll. over so much of this into it. Right. I'm going to do everything I can. to not do that, but if you do choose to. do that, I won't be like furious. Okay. I personally would not. Okay. Mhm. Unless is there like Do you guys.

need anything different? Is there any. context? W- Oh, house-wise? Yeah. Uh well, we'd like a bigger house. cuz we do want to have a second kid. Oh, yeah. And I mean, it's W- There's. more than enough There's enough rooms. somewhere enough. There's enough rooms. in the house, but How many house rooms? Three. That's a lot of rooms. um. but it's pretty small. I mean, this was. definitely a starter home. We got it. We got kind of rushed into it. Um but I. mean, it's where we are now, so we do. want to be kind of further out. We want. to be a little further out from the city. and stuff, but it's definitely not a.

necessity. Further out from the city? Yeah. So, you can have less things to do? We just want to be away from the. traffic. And I mean, cuz that whole area. has exploded in the last like 5 years, and it's just. not fun to be around, to be honest. So, your non-mortgage debt. your non-mortgage debt, all the. unproductive debt. [snorts]. Crazy. 131,979. What do you think of that? It's insane. Yeah.

It's well more than you all make a year. as a household. Mortgage, property taxes, property. insurance, $1,914. 81 cents a month. It's the first piece of the budget. Now your other minimum monthly payments. all together. Damn. When these student loans kick in? Yeah. Ho, ho. Yeah. Your debt minimum monthly. payment is not the mortgage, not the. mortgage, is.

$2,041.26. That's. more than your mortgage. All the debts. that you all decided to go in, all your. rounds. [sighs]. Yeah. [snorts] $2,041. Oh, that one hurts. What's all your. utilities together? Uh So in let's think. internet, gas, electricity, what is all. that together? Internet, electric, and. water is going to be. 90 and then on average. 120, 140, so 260, so about 350. Oh,

okay. Phone bills? Uh. As a household per annum? Yeah, we're. just on the same plan. It's $91 a month. Okay, that's not bad. Yeah. For two. And there's child care. Mhm. How much for the month? Uh just went up, so 1150 a month. Which is actually the cheapest one we. could find in the area. I feel like if we want to fill. if there was a cheaper No, I don't even. know. If there was just a cheaper. version of child care that people had.

access to, man, we could fill all those. positions that are desperate to hire. right now. Oh, right. Because if you're going to go work. minimum wage or even 15 bucks an hour, it's hard to afford this child care. It's almost like you make more money. staying at home taking care of the kids. yourself. It's really difficult. a buddy that on their second kid, his. wife just stopped working cuz her income. was going to be all of the child care. for their two kids. So, they just she. stopped working. that point it just doesn't make sense. This is just one kid. Right. Okay. [sighs].

There are tax benefits. You are getting. tax benefits, but. okay. Either way, child care, phone bills, utilities, debt, mortgage, car insurances, both combined. Yeah. We just actually combined them. [sighs]. Believe cuz it comes out of her account. and I Venmo her, so I believe it's like. 220 for both of our cars. Okay. Not. crazy. for two? Yeah. Cool.

Okay. This is where I'm trying to think. This is included in the pile you put. into your work food. Okay. You want to grocery budget for the. house? I'm going to do. I want [snorts] to do 500. I think I'm. going to do 600. Cuz the baby. Yeah. Baby's on diapers? Yes. Yeah. I don't know what age they get out of. that because they are. stinky and I don't want them. Supposedly boys are a little slower, so.

people have told us don't expect it. before 2 years old, so. And he's very close to two. Yeah, but. that's I don't know if he. Okay, but there's diapers. Yeah. Diapers. and wipes, which. Yeah. Lovely, nice and expensive. Mhm. I'm going to give you try to do 500. for groceries. If you get that to 600, okay, but try to do 500. And then toilet. paper, keeping the house alive, including the diapers and wipes and all. that stuff, 250? Uh yeah, we buy diapers and wipes about. once a month, so that's.

about 75 to 100 dollars depending on. which ones we buy there, so Okay. Just on diapers and wipes. Yeah, so 250, so toothpaste. Yeah. We buy shampoo, all. that good stuff. Well, all right, this is an expensive. life. Let me see what she brought home. from her checking. In this Wells Fargo. positions. payroll which looks.

weekly. Yes, yeah. She makes 831.61 a. week. Well, brings home. Mhm. [clears throat]. She just started contributing to 401k. She should only be taking her match. She. should not contribute to anything else. outside of that for now. Okay. Eventually, we definitely want to be. taking everything. Okay, so 43,243.72. cents a year after taxes and. contribution. Divide that by 12. On average, we're.

going to see about 3,600 dollars a month. from her. Why are you 3,400? Cuz the health insurance comes out of. mine at 700. Oh, oh, that that comes. out. Yeah, and something we are we are going. to change is in October when it opens. up, she's actually going to get back on. her insurance for 40 dollars a month and. then that'll drop mine from 700 to I. believe it's like 300 or something like. that. be great. The having just one dependent is way. cheaper than having two. It more than.

doubles, so that'll help there. Yeah, that'd be fantastic. So, right now you guys have a monthly. income of 7,000 dollars. That's what. comes into the household. Get that joint. checking account started now and get. this budget. This budget right here is. all your budgets. Okay. It That's the. budget. It is the household budget. Spend from that joint checking account. cuz you're not using credit cards cuz. you're not a credit card person. I don't. give a [ __ ] You ever use a credit card. again, I I will always say that people. can use the Fizz one. Okay. Because. swipe on it. it immediately pays it off like it's a.

debit card, but it still builds your. credit score, so I will I will say I do. have another credit card with a zero. balance. I had to put tires for my Jeep. on there. How much is owed on that? Zero. No, I paid it off. So, I paid it. off with zero percent interest before. that. Stop. You're not a credit card person cuz you. fall into these situations and then you. have a stupid Stop. Uh, let's figure out your monthly. budget, [snorts]. total. This is not looking good. This is not looking good, is it?

Hot cheese. [snorts]. And against you're both working cuz that. is not an option at this point. $6,517. is what's needed for you guys to. survive. Survive. Meaning. your guys' needs category is 93% of your. income. What can we do with that? What. can we do with the other 7% of your. income? That's insane. That's insane. That's a we're never getting out of this. debt ever again. You know what that. unfortunately is, and that sucks cuz I.

love what you're doing. You're helping. people and you're working a lot of hours. and all that. It means that you're probably getting a. second job when you're not at the. firehouse, which absolutely sucks and is. the last thing I would want to tell you. Well, it is like not a choice It's It's. basically not a choice. And then Oh my gosh. And then when every. So, when [sighs and gasps]. So, would it make more sense to get a. second job or to continue to work.

overtime cuz what I can't say is No, no, no, get all the overtime you can, but if. there's extra time that the wife is at. home with the kids and you're not. getting overtime, work a second job. Maybe you're just running Uber Eats in. the city. Um, and then whenever you're you're able. to rest and the kids there, maybe she's. doing the same thing. Okay, yeah, she. was already saying she wanted to look. for a second job. I'm just trying to. avoid having her. have to work a second job, honestly. Well, I don't care. Because $483 is not going to do anything.

for this. So again, the bad debt the bad. debt that's not contributing anything. Let's just let's just do an example. Little example. 483 divided by Okay, it's going to take you 273 months. to pay all that off. Not your mortgage. not your mortgage. 273. also known as. 23 years. So yeah, we can we she can not get a. second job and you guys can do 23 years. That's why we were considering selling. the house and paying the debt off. That's an avenue but man it's a it's a.

wealth builder tool for some of this. stuff. Well, there. Okay. Yeah, these minimum monthly payments are. killing you. Mhm. But we can make. progress here man. If Okay, how much you. going to save on the health insurance. starting in October again? Uh I believe. it's I will save $300 a month. Okay, so that adds $300 to the picture. If she brings an extra $500 a month in. from a job, you bring extra $500 a month. in. That brings us to about $1,800. Yeah. $1,700. I will say with with one overtime shift.

I bring home $600. Yeah, that's great. So just definitely. do that. But the average we took the. average you gave me was you you said. overtime months and no overtime months. The average. So. So that's great. Everything we get that. we get bonus but $1,800. Mhm. with you guys working the jobs the. only solution [snorts] is if you guys. bring in an extra $500 from outside work. each. Okay. Plus that insurance gets cut. Yeah. And. that's $1,800. [clears throat]. But the first thing I need you to do.

Mhm. and this is this is scary cuz this. is going to take forever. That's why you guys are going to go get. that other job right now. Maybe even. working more. Probably not seeing each. other which is really going to suck. But I need you to guys have at at least. a 2-month emergency fund before you even. start paying off this debt cuz you have. a kid and it's way too risky. And your. job is a quite risky job, especially. We. need to have a 2-month emergency fund on. the side. And at the pace. that's. $1,300.

$1,300 with the extra money you have. takes 26 months Mhm. to have a 2-month. emergency fund. Right. That's insane. We. can't do that. Even with the $1,800. we're aiming for, [snorts]. it takes 7 months just to get a 2-month. emergency fund. Okay. [sighs and snorts]. I mean, I might be changing my opinion. because. as a household, you guys have a higher. median household income than people in.

your area and the people in the country. and the people in the state. Mhm. You. guys are not doing bad. You just got. into so much death debt. Yep. And you've not been making progress and. you've still been putting money on the. credit cards. Mhm. I'm entering a place. of no hope right now. It really sucks. So, the solution that I am seeing is. getting rid of that beautiful 3.2% rate. So, I think. what I do. what I do in this situation. unfortunately, as. absolutely disgusting as it is,

we put up the house for sale. We try to. get it where you walk away with that 100. How long have you been in it? Uh. just under 3 years. Under three Okay, so. it's over 2 years. Yeah. Which means you. will not have to pay That's actually. taxes on it. We went to list it before. we were in there for 2 years, not. realizing capital gains tax before our. realtor said, "Hey, wait a minute." And. we were slated to make 180 at that point. cuz that was when the market was insane. We should have sold, paid 20% capital.

gains tax, and we still would have. walked away with more. Market's been ticking up this last. quarter or so. Yeah. Like, you might be. in a good I mean, there's just there's. no houses for sale and people still want. to get houses even though the rates are. death. Yeah. So, what I'd be doing is I'd try. to sell the house. Okay. See if you can. get 100, maybe more. Mhm. [snorts]. Where's the cutoff point? When do we. decide if you're not walking away with a. certain amount of money, where do we not. sell it? So when I was talking to the to. the realtor, she said 5% down should be. fine for the next house cuz I always. thought. going to get into another house right. now. Okay. to have you be renting.

Well, but I want I want to hold on to at. least that. So that that would be 20,000. for a $400,000 house for a down payment. So as long I don't know. I don't give a. [ __ ] about that. As long as we can make. 70,000, we can pay off the 50,000 in. debt and then still hold the 20,000. You have 131,000 in debt. No, I know not. including student loans. That's the. credit card, the car, the personal loan, and her credit card. Listen, you're going to put aside. $1,200. from the sale if you get it. That's a. $12,000. 12,000. That's an emergency. fund. The next down payment we're going.

to save up eventually. Everything else. is going to the debt. It does not make. sense for you to have this sitting. aside. Even if it's that 4.4% interest. in the SoFi, Mhm. all these interest. rates beat that. So you're just losing. the money. There's not a single interest. rate that's. that does not beat that. Except for the mortgage, yeah, of. course. So, yay. I'm going to just get a rough value on. your house. Okay. Okay, what's the what's the purchase. price we resumed? What's the purchase.

price you got it for? Uh we got it for. 243. I think we owe 230 on it. You owe. 230? Mhm. I want to take a brief moment to. thank today's video sponsor, Aura. Are. you sick and tired, just like me and. everyone else, honestly, of receiving. endless spam calls every day? I mean, look at this. Let let me open my phone. Look at this. This right here is all. spam. It's crap. Except for one friend. There's one friend phone call. The rest. is spam. Data brokers are making a. fortune selling your information to robo.

callers, spammers, and others who want. to learn more about you, like where you. live. But with Aura, they can identify. data brokers exposing your info and. submit opt-out requests on your behalf. Brokers are legally required to remove. your info if you ask them to, but they. make it super hard to do. Let Aura. handle that for you. Aura also does a. lot more to protect you and your family. from online threats you can't see. It's. really easy to set up so you don't have. to download several different apps to. get things like parental controls,

antivirus, VPN, password management, identity theft insurance, and more. You. can get everything at one affordable. price. Let Aura do the hard work of. keeping you safe online so you can focus. on other things with peace of mind. Go. to aura.com/hammer. or check out the link at the top of the. description below. Thanks again to Aura. for sponsoring this episode. I mean, even Zillow will give you. I can't believe they're starting to do. this again. I thought they stopped doing. this. They'll give you a cash offer of. 317,000. Really? So, with that Mhm.

if they'll do that, I bet you can sell. it for. 330-ish. That's what the realtor was saying. It's. 330. Now, you're going to have to pay the. fees and whatnot. Right. So, we won't. bring home 100 if we make 100. Bring. home like what after everything? 80 to 90? Yeah, I was thinking about 85 or so. That might be the only solution to pay. that. I'm sorry the situation is so. dire, man. This really sucks cuz you. guys are into a home and to quite a cute. home, I will say. It's a nice house,

looks like a nice neighborhood. Yep. Um. is it just a learning lesson not to get. yourself into just complete. Absolutely. cuz now you're just swimming. in the sewer and you can't get out. So, hopefully if we have $85,000 to play. with, then we definitely pay off that. high interest rate credit card, we pay. off the personal loan, pay off her. credit card, probably pay off the car at. that point. That's. $48,000. We'll pay off the wife's credit card, your credit card, your personal loan,

and her car. Then, pay off her student. loans. Okay. And then, everything else. remaining goes to your student loans. Okay. And because they're over 5% especially, Mhm. but we also put $12,000 aside. I was going to ask that. So, I bet I bet. you guys pay off credit card, personal. loan, her car, her credit card, Mhm. most if not all of her student. loans, and then that's probably it. Then. we're stuck with the $700 minimum. monthly payment for your student loans. And now is that 700, um, is that with the 10-year repayment plan?

Probably. Okay. Well, cuz I know you're. not a fan of the income income-driven. I wasn't before. Things have Well, what. what income thing are you going to be. like you guys' income isn't bad, but. either way the income-driven repayment. plan. So, what they what happened before. uh the last few years is like. a dozen people like actually made it. through that income like actually got it. forgiven, but the Department of. Education right now, the current one, has forgiven. tons and tons of those. So, that process.

has actually made sense. One reason why. I'm still skeptical could it get into. Okay. So, if it's administration to. administration, what if by the time. you're ready to qualify whoever's there. is like, "Nah, we're not doing it." Cuz. this is it it feels like it feels like. that it's like up to whoever's just. running the department at the time. Right. Right. And that's not politics. We can agree or disagree with all that. stuff. That's just like how it's been. historically. For sure. Um, there's also. I logged in the other day and there's.

now, um, I forget what it's called, but. basically for government employees, it. can be city, state, or federal, and it's. a repayment plan where if you make a. payment for 120 months and you're not. late, they forgive what's left. So, it's. 10 years instead of 20, and they'll. forgive what's left. And so, I was going. to. to be in this for 10 years? I mean, yeah. That's the other part is. Cuz we could get you. With you guys'. Cuz your rent will your your debt. minimum monthly payments will be gone. You'll have an extra So, you guys still. need to work extra money during this. whole thing. Okay. just have an extra.

like $4,000 Right. at this point. You. can pay that off in a year and a half. Yeah. I would just rather be gone with. it a year and a half than 10 years. I'd. be trying to convince her to put all. that money towards my student loans, though. That That'd be all. Why? Uh I. mean, just. cuz I guess she'd want might want to do. other things. I just feel bad. Hurry up. and do. Well, no. I feel bad cuz the majority. be here, though. A majority of that is. my debt. Yeah, well, so she signed up for No, I. know. I know. Well, is she Are you guys not. even close to on the same page about. this? No, we are. I mean, she like we've.

talked about selling the house. That's. why I called the realtor. the student loans then? Uh I mean, I. don't I haven't We haven't really talked. about student loans cuz she's been. making payments non-stop. So, hers have. gone down substantially. I think she's. still at like 20 grand or something like. that. So, Yeah, no. I saw. uh. Okay. Well, I mean, you do what you want to do. I. think just based on. If I was in my history and my history of. payments and strateg-. being strategic about every single cent, Mhm. I might do the 10-year thing. I'd look.

[clears throat] into. how. uh reliable that is. But, I might do. that for myself. But, based on you, your. history of debt and all this stuff and. just being reliable and then things just. constantly change and your job always. changes. Even if you like this one right. now, you've been in it for like 7. months. Your job is always changing. You're going into the debt, getting out. of debt, going into debt, whatever. Um. and popping out babies left and right. Just the one. I know, but you said you. want more, so. Yeah. Uh especially if you're having. more, let's look at getting rid of this.

Let's get rid of the risk in your. situation based on your own. So, I'd get. your rid of that in a year and a half. And if you guys What makes me nervous? What happens if you can't sell the house. for anything that you feel comfortable. with? What if you just can't? Even this. cash offer. What if this cash offer goes. away? Right. And then and and then what. do we do from there? You pay this off in 25 years? Right. So, this is this is a very difficult. situation and I'm not usually in a. position where I'm like, I don't know. what to do. This is what I'm hoping can. get done because you get a good offer on. a house. Right.

If you don't Is that year and a half. spending all like that 4,000 that we. would save every month on the student. loans? Okay. Mhm. But you have a 2-month. emergency fund sitting on the side. And. then after that you're probably spending. the next half of that second year. saving on your portfolio for an. emergency fund. Okay. Then boom, you. have a 6-month emergency fund. You. you're you are 26 27. She's 25 26 or 30 Sorry. 36 37. Yeah. And she's.

35 36. Somewhere around there. And then. you guys are probably putting about. You guys are very behind on retirement. She probably wants to put about 30%. aside for retirement and you probably. want to put about 30% aside for. retirement. Okay. Um and then I would. try to when you do start saving up to. get a That's towards retirement. Yeah. I'd probably cut your fun money on both. of your side. both of you guys. I'd probably cut your. needs, live cheap for a bit cuz you guys.

are renting in this situation by the. way. I'd probably cut your needs by a bit and. your wants by a bit and put it into a. down payment fund. Okay. And then. eventually you get a house. But when you. get a house and when you get this rent, max out your needs as a household. household incomes combined finances. [snorts]. 50%. No higher than 50%. And then you're. each investing 30%. So there's 20% you. can put on fun. And with a good income. good household income that you all have, you can do a lot of things with that. You can take nice vacations and stuff. like that. When you say we're not going. to have much fun this month because next.

month we're going to spend this month's. fun and next month's fun by going on a. big vacation. Like that's great. Do. that. Okay. We can't do that until you. fully fund an emergency fund in about 2. years and that's only if you can sell. the house. So it's a sketchy situation. and I wish I had a better answer to it. I hate hate It goes against every bone. in my body to get rid of that 3.2%. interest, but I'm also a [ __ ] for real. estate, so. It's Yeah. No, that was the that was our. hang-up is knowing that we won't get an. interest rate like that for. years from now. Yeah. So. Yeah.

But. you guys aren't even to your 40s yet, so. there's still time to get into the. forever home. Maybe the next home that. you guys aim for is the home that you. can grow into a little better. Yeah, for sure. so. For sure. But it's going to be a grind, dude, and. you guys have to get on that same page. What's definitely made me nervous is. you've paid off the credit card, you've. built it up, chop them up, close the. accounts. I don't give a. Even if you paid off that other card, I. don't give a close them, you're done. Mhm. Okay. Credit cards do not exist in your.

life. Probably don't exist in her life. cuz she's holding a balance. [sighs]. You need to get on the same page whether. or not that's having the conversation or. going to like a counseling service. Yeah. That's fine, but you guys need to. get out of this debt and then it's a. sacrifice for 2 years. You guys are. still working during those 2 years extra. jobs. That's what got us to the numbers. If you don't, then. paying off your student loans plus her. plus the 6-month emergency fund is. probably going to take like 5, 6 years. Right. Okay. Uh you need to bring in. that extra money [clears throat] because.

your needs are still quite high. For right now, your needs being 93% of. your income, that's like actual. financial insanity. Yeah. It's crazy. You can't do anything with that. The. fact that there wasn't any fun money. spent, I understand why you guys aren't. making any progress on the debt. Mhm. And just relying on little extra bonus. tiplets from the. Yeah, from the overtime, but. Yeah. Get work as much overtime as you can. Okay. And work an extra job. Have her. work an extra job. Okay. And then you.

guys get to spend the rest of your lives. together without having to work extra. jobs, and your kid and future kids will. be able to spend all the time with you. because you're you're in a good place. financially speaking, and then you're. going to be able to retire, and then the. kids won't feel morally obligated to. take care of you. Yeah, absolutely. But you [ __ ] around as you have the. decade and a half and then they will. Yeah. So, that's up to you. No, for. sure. That's That's why I'm here. And I. know it's not a good place to be in. You. know yourself, you know your. relationships. What do you think's. actually going to happen when you leave. this place? Oh, no. I mean, I'm going to.

change. Like cuz I more than anything, one, I want to be able to retire. And. two, I don't want any stress on my kid. My dad's actually really smart. financially and he's set. He's partially. retired. He just works cuz he doesn't. want to get bored. Sure. He could retire if he wanted to. My stepmom retired. Like they're in a. good place financially and that's where. I want to be when I'm 65. Mhm. Like they. are. So, I I want to change. I mean, that's. What are you guys going to do? Now, in. your relationship, what's going to. happen? I'm I mean, I'm sure she'll be. on board. Like she She wants her debt, which isn't even that much, paid off. Um.

and I mean, she's even. said she's fine with selling the house. She'd prefer not to cuz that interest. rate, obviously, and. not to as well, but and then renting. But, no. I mean, she. she wants to get rid of it as badly as I. do. So, It's kind of the nuclear option. in our life now. Mostly cuz we both want a second kid. So, she'll pretty much do it so that. it's financially doable for us to have a. second kid. Okay. Yeah. Okay. Cool. Any final thoughts? No. I just I knew it was bad and that's. probably why I had never sat down and.

gone over it, honestly, cuz it's like. out of sight, out of mind. And that's. And I'm bad about that. So, it's. it. good to have it into perspective. that I didn't realize it was 93%. Come. back in a year and a half. Bring her. with you. Okay. All of the debt should. be gone. and you should have a two-month. emergency fund here and a half. Yeah. Don't let us down. Okay. All right. For Mr. Joshua, you know, he. kind of nailed his hammer financial. score and it's because of the house. that's really pulling some weight.

Spending in a budget, certainly spending. money absolutely shouldn't have. It was. stupid. It makes no sense. Two out of 10. cuz it wasn't [music] the absolute worst. that we've seen and we know it can be a. lot worse. Debt. one out of 10. No collections, no owing. the IRS, but it can't be higher than one. cuz that is that is some disgusting. debt. [music] Retirement, definitely. behind for their ages, but there is. something in there. Two out of 10. Emergency fund, there's nothing in there. that makes me scared, especially with a. family with a kid. Zero out of 10. Real. estate, cuz they didn't put much down,

the equity position is only good cuz the. value of the house has skyrocketed over. the past couple years, but they have to. sell it anyway. Four out of 10. And. their financial score aggregate, two out. of 10. Check out all the resources I've. linked in the description below. They. are resources that I either use or would. use, and there's paid affiliate links. there. You can get a high yield on your. money with SoFi at 4.4% at the time of. recording this episode, or you can put. $5,000 in Acorns and get $5,000 for. free, and there's a lot of other things. as well. And don't forget to follow my.

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