She Keeps Choosing Debt Over Work | Financial Audit

hi my name is Jess I'm from Montana and. this is financial audit and how old are. you 27 27. awesome well thanks for. coming down from Montana what do you do. up there for a living I am a nanny right. now so I've been in oh childcare a long. time okay so how long have you been. doing that since like before graduation. high school or yeah like right after I. graduated what made you want to go into. that. um well I just I don't know I've always. kind of liked kids I.

took care of my siblings growing up and. just kind of fell into it and got. training and went from there has it been. a successful career so far. no it's not very good pay oh well what. are you making what do you think on a. monthly basis on average. so right now I just recently started. this nanny job like a couple months ago. and it's 16 an hour. I feel like my friend my friend who just. watched some kids like. who's 19 makes more than that why is it.

so low. um I don't know is this. [Music]. no it's just privately really okay so. wow yeah so it's just the area and. everything like that yeah I think way. like pay wage is a little lower in. Montana right on average just across the. board but yeah it's. I don't know this job is actually more. than I've made in the past like working. at Child Care Centers well hopefully. with that the cost of living is also. lower I'm hoping we're gonna collect.

some information and figure that out. um oh okay. [Music]. so okay what did you say 16 15 hour how. many hours are you working on 16 an hour. and. um it's averaging like 35 an hour or 35. a week yep and you're doing like every. week you take weeks off or like what. does it look like um yeah every week you. know. and then this. I'm not so this I just started and then. I also wasn't sure about like taxes with. that so well there there is gonna you're.

gonna have to pay a little bit of taxes. uh and then just being self-employed and. everything this extra taxes that come. with that but with the bracket you'll be. in and. you know hopefully I don't know how much. you'll be able to write off maybe. transportation to and from potentially. um. but just the tax bracket you're in I. don't think you're gonna pay too much. but it is always good to at least think. about putting 25 to 30 aside usually 30. is the recommended just for safety are. you. not as of yet because.

I was have you paid taxes these last. like 10 years yes yeah I've always had. like pay stubs and did taxes that way so. and you've closed everything correctly. and everything oh you had oh okay. interesting so how are you being paid. right now. venmo. right but you're keeping track of all. that correct. yes yeah it's all logged on there like. every week and then you get like the. quarterly statements so we are what yeah. more than halfway through the year and. you haven't saved up anything for taxes.

on the side. so I just started last month at this job. oh so what were you doing previous on I. worked at a daycare and. it's kind of complicated. um this year has kind of been weird so I. worked at this daycare after taking like. a year off with kids. I was doing like decent before that. and. yeah no I mean just like what's up why'd. you leave the daycare what was happening.

the pay sucked and. um she's gonna give me bonuses that. didn't really happen and I ended up with. this like debt like I borrowed again. from that thing yeah and we're about to. go into a lot of that yep a whole lot of. that before we go into that debt though. you should hit subscribe because we are. trying to get the 750 000 subscribers. and thank you to everyone who has. subscribed so far so this is debt so. where you're just not making the money. you needed to do and you just ended up. going to debt because you went into like.

a lot of different kind of deaths that. have stacked up quite dramatically for. your income in fact for your income this. is if you work 35 hours a week every. single week never taken a break. essentially with that job right gets you. that it's still just below 30 000 which. is 2 426 a month and then you have to. put like 30 aside for taxes. so even with that like especially post. hacks and everything your debt is over. that at that point in terms of how much. is owed then the interest rates are. insane so tell us about your financial. situation why are you where you are.

right now and yeah what's up so. I've I've lived with my grandparents for. a while like probably. six years almost now and I have never. like they don't I don't pay rent so I've. kind of went into child care and I kind. of. um I don't know it's kind of hard to. explain. um. like my growing up I didn't have very. much stability so when I was like moved.

in with my grandparents and had that. stability I kind of. um just was thought I was okay because I. was paying the bills and making bills. and I didn't really have debt and like. besides a car payment until probably the. last couple years well that's what. happened the last couple years then. um well I took out that upgrade. thing and yeah I did and then. um I wanted to just kind of take some. time off because I because I I do work a.

lot like two or like up to two or three. jobs sometimes and okay well right now. it's only 35 hours a week so I don't. know if I'd consider that a lot but. sometimes right now it's okay yeah but. yeah and it would be I would like make. bigger purchases and then not really. save and any reason why. I just. probably ignorance yeah I just didn't. think of the future at the time in my. early 20s and dumb but.

okay so what would you give yourself a. score zero out of ten. 0.5 0.5 okay well I at least appreciate. that Honesty that. honestly we're about to go into this. debt and that kind of aligns with. potentially what I've seen so why'd you. go into this upgrade card loan of death. Insanity chaos terrible yeah. um well it was I was just burnt a couple. summers ago I was burnt out and just. wanted to take a couple months off print.

out from what working what are you doing. I was doing child care and. um I did photography on the side as well. and I also had times where I worked at a. restaurant in town local restaurant and. how many hours a week would you say you. were working at that time I'm just. trying how are you probably like. 80. so there's something going on down. there that's like I'm playing with my. phone case oh okay yeah so I just want.

to make sure it's not being picked up on. microphone okay. then you got burnt Allen then he just. took out debt to live instead. um. yeah cause. that's kind of where it ended up piling. up. I was working I had a school district. job as a para professional dude you've. been you you've done like more jobs like. most people do in a lifetime with them. yeah I worked at a child care center. consistently for like over four years. and was doing different side stuff while.

I worked there. and then I got this paraprofessional job. and. was doing okay with that and that's when. I took this loan out because I knew I. was going back to work when did you take. this loan out. um originally like. probably two summers ago if you took. this loan out to seven two summers ago. I'm so curious I did I because I did pay. it off like at one point you paid this. off yeah and then knowing it has a 30. Death interest rate why'd you possibly. get it all the way up to the max because.

you owe 4. 387.10 on here but there's only. available credit of 160 dollars why are. we where we are now borrowing against it. no no I know but yeah. if you paid it off and you made that. progress why did you put it back on I. need to know where your mindset's at. going into this. um yeah I know. there wasn't probably any logic behind. it honestly though are you still. spending money on this.

okay. 30 Death yeah interest rate this is. crazy okay well say it with me you're. not a credit card person and we know. that immediately because you maxed this. out again we're about to go through like. a million other debts. of which by the way you are not just not. uh still spending money on those debts. and cards I'm glad you're not in here. you really can't there's only 160. dollars right you know. I don't know I'm not feeling nervous.

about like what to do just because okay. let's pay it off but then you have. something that was paid off yeah. we're just gonna do another 4 500 bucks. on something with 30 interest rate again. are we just gonna do that again. um not this time what's gonna be. different about this time well the plan. is to pay off the super high interest. stuff and then close those accounts or. well it's gonna be different about you.

this time. oh plans are great yeah what's different. well now I'm aware of how terrible it is. because I thought I was doing okay. because I was making the payments and. then. when I left the daycare like at the end. of winter it was. I. um. sorry I lost my train of thought. but when I left the daycare at the end. of winter is when kind of I took it out. again because of last winter yes like.

February stacked that up within just a. few months. one what what was paid. what'd you spend it on. like both yeah like oh geez okay and. then I well after I left the daycare I. didn't have a plan so I kind of. lived on that for a couple months like. this. May was when I kind of got back into. work like stably okay there's I'm.

there's like red flags everywhere this. is like a red flag Central right now. paying off cards putting it back up. taking off work working like a thousand. trillion different jobs within just the. last few years like. how do I know you're going to be in this. nanny job for two months from now at. this rate like what if you feel burned. out then all of a sudden we just like we. open another car and just this is this. is not by the way shaming you in this. situation by any means I'm just I'm.

scared personally yeah and I need to. know where you're at and like what we. can do here which by the way I should. say thank you for being on here though. this is certainly. a dramatic conversation and probably. very tough for you and I get that. there's probably thousands tens of. thousands of people that relate to your. situation out there and you're coming. out here putting your situation on. display and it's hopefully helping them. and that's you know always the goal so. thank you for doing that and give her. love in the comments because that's. great oh yeah yeah it's the timeline's. super confusing but.

it is but yeah I didn't really realize. how like absolutely terrible it was. since I left the daycare job and like. saw it all added together but I need to. know what's going to be different this. time what's actually going to be. different about you this time. what's gonna say You're Not Gonna Leave. This and go get your 30th different job. next month. um because. I'm going back to school I just think. it'll be different I'm going back to. school now okay while I do this so we're.

throwing something Nelson yeah yeah okay. what's your highest level of Education. I did about a year of college and then. when I got training at the center I was. at I. Community College yep do you have those. credits still yep okay it's all. transferring it's the same place. what do you want to do. um I don't know all right well that's. that okay we'll we'll go to that.

conversation in the future I don't know. if I want you to spending money on. College if you don't know what you want. to do yet college is great I know it was. just but well when I left the daycare. job I like had a really hard time. finding like other work sure is it a. small town small community what's like. the population you don't have to tell us. the town but like what's the population. um I don't know it's one of the bigger. towns like it is a very small population. 33 000 people okay. so yes I can see um opportunities being.

limited for sure yeah and it was because. I thought I was good with the training I. got through my old job and then it was. kind of. Child Care positions kind of cap out at. a certain pay like twenty dollars I'm. sure yeah when there's when there's this. Less Market availability for that yeah. and now that I have like 10 years of. experience it was kind of like I don't. want to do the same job forever so if I. get my associates maybe I can just get a.

better job well we'll talk about that. that's an important conversation we'll. talk about that we got to get through. the desk and see what your financial. situation looks like so we know who have. the 4226 at the death death 30 interest. rate at 193 dollars a month minimum. empty payments these minimum monthly. payments are about to stack up by the. way yeah we had a card you had a. thousand dollars on it that's not great. but then you made 150 100 payments or. 180 payments that's great but then we. did 400. forces. this is why possibly on a card that we.

are losing interest rate on which is. 14.16. on a monthly basis which also 30. interest rate if I'm not mistaken which. also yearly interest loss 132 dollars. why are you possibly spending 400 on it. on a monthly. plane ticket. okay because I had the Airline credit. and it was gonna cost me a hundred. dollars out of pocket and by the time.

all the emailing was done it went up to. 325. well the good news is we do. reimburse some of it we well I'll talk. to you about that afterwards but okay. hopefully even if there was no. reimbursement I'm hoping the 401 is. considered an investment that this will. help a situation that will more than. have a return on investment of that 400. in terms of potentially tens of. thousands hundreds of thousands of. dollars in terms of you getting out of. debt starting to invest and being able.

to retire at some point so hopefully. that has a good investment. on it so okay it's the Quicksilver with. 1285.84 cents. with a 45 minimum monthly payment and of. course 30 Death extreme interest rate of. 29. 14 interest Recruiters in the last. month. crazy and then in here and no it wasn't.

just a plane ticket come on spending. almost 40 bucks at Hobby Lobby and. spending over 40 bucks at doordash do we. need to be door dashing do we need to be. doordashing while we have the stupid 30. and another stupid 30 debt and more debt. that we haven't even talked about should. we be doordashing no why did you. doordash because it was just last month. and you said oh but I I. I learned the piece of personal finance. which is great to myself it's better. than I was doing but yeah I know okay.

not a good habit not a good habit we. don't do it we don't do it for a single. second doordash doesn't exist honestly. it should have really exist afterwards. anyway I don't know it's a very. expensive way to get food it's only if. you can be very easily afforded within. the budget does it ever make sense and. then of course we have another card it. was 662 dollars made 180 payment great. that's over the minimum that's awesome. and then again purchases it's only 18. bucks but still why are we putting money. on a card that you are losing 14.85. cents of interest on on a monthly basis.

and you have lost at 32 interest rate. forty five dollars 71 cents this year so. far in interest why possibly. would you be putting 18 bucks on this. card. good reason is just. card person you're not a credit card. person not. currently it's I'm okay. it's it's okay to give an excuse as of.

why you put this on here because that at. least gives us insight into why and into. the I don't knows or it's just bad or I. was just being bad like please tell me. what's your what's your justification. behind now where where you mentally when. you went in doordashed and hobby lobbied. and then what'd you do on here uh. oh gas but then why'd you put it on this. card I need to know where your head's at. we have to get to the bottom of certain. things so that we can put you in a. better place going forward well. yeah I always.

I always make payments on time so I just. kind of justify it to myself that way. that sound soon we'll go into that yeah. sorry continue. yeah I just kind of justify it well I'll. pay it back later and then it adds up. and I owe a lot. good well thank you no that's very. helpful that's good so you think just. because or it's able to be paid back. later and because in general you know.

making them into monthly payments. okay now we have another card this one. is less uh. that I believe I paid off. yeah because there was like nothing it. was like seven dollars and 31 cents but. there were fees of eight dollars 32. cents yeah and it was after I paid it. off I saw that when I was like uh a. transfer fee or what maybe it was annual. oh this is. oh Credit One oh if there is a credit.

card or bank or whatever that I have. learned to hate throughout the process. of this show it is Credit One credit one. of death. because they just. they're just punching poor people in the. face on a daily basis it's not fair oh. yeah it's not well people sign up for it. but it's just the predatory practices. that they go after I like credit cards. this company and the way they go after. people with their terrible terrible fees.

just so people feel like they have a. place they can spend money it's. disgusting it's terrible. so. yeah cut that up do you have it with you. yeah are you gonna are you willing to. cut it up. um yeah good. so this is. credit. one no there's really nothing to pay off. again 7.31 so just pay that because it. was 58.62 fees charged within 2023 you. have a monthly fee it's probably that.

like 731 it's a monthly fee it's done I. need you to close this one usually I'm. not a close account kind of person but. you're just losing money on this you're. gonna close this account and then. interest because again you did hold. balances on it of 8.13 a year and uh 29. interest rate but there's nothing. nothing there to pay off but we do have. a car I'm assuming is what this loan is. yes. this is at a better interest rate of. essentially six percent yes and when you. take an account depreciation and.

everything like that I still don't like. that I wouldn't want anything on. vehicles that are three over three. percent so it's still not good we'd. still want to pay it off early what's. extra bad on this is the 70 uh you took. out of course 71 74 months so you're. just like well what's the longest we can. do it in order to get the minimum. monthly payments down and you took out. like the longest car loan and then. you're like okay cool yeah Happy Days. you and then and then. uh with that I mean you're paying a. total of 17 213 on the money you.

borrowed of 14 526 because of the. interest right so even though the. interest rate feels lower compared to. like the crazy 15 25 that we've seen in. terms of cars it's still terrible yeah. but that one I paid 250 a month so it's. like 11 over the minimum. that one I thought I was doing okay. right yep. okie dokie. but well.

so I don't know this Bank the finance. charge the way they have it lifted out. I wonder what the early repayment is I. wonder if that's like. okay total payments after you've made. all payments okay would be the 17 000. but the amount you financed was that 14. 562 so we're definitely gonna try to pay. that very early so you don't have to pay. that close to 3 000 in interest Okay so. 14 562 and all your money is going to.

interest right now except for that. little bit that you're making extra. at a 239. and nine Cent minimum monthly payment at. 5.74 interest. yeah so essentially six percent interest. okay. now in terms of you're like you're like. okay I feel okay you've overdrafted this. year so far on your checking account. you've over drafted I did the last. couple months yeah yeah so if we're over.

drafting do you really feel that mindset. that you just said. of like oh but I can just pay everything. yeah no I know it's because I wasn't I. was having such a hard time finding a. job after I left why'd you quit before. finding another job especially in your. situation with zero dollars in savings. correct. right. um yeah it's just because I was. basically losing money with that job and. was not making money at all and then.

um I had like personal things happen. right after I took that job with her and. had to miss a week and go down to Salt. Lake because my aunt died and then I'm. sorry yeah and. and then after that I just could not. catch back up and. um. she kind of promised me bonuses that. didn't happen and I just I am not for. sticking around a job especially when. money's. I promise that was not given uh but.

at the same time what's gonna put us. further in the hole yeah looking for a. job while we at least have some kind of. income versus just no income whatsoever. I know yeah and it wasn't the best. choice but my mental health improved a. lot afterwards so I kind of well how's. your mental health with all this debt. not good it's I hate it but that's the. only thing that's stressed me out. fortunately right now but okay.

so on here I mean you have 516 in there. it's a little low for chicken con like. to at least see a thousand bucks just. for safety reasons and again I'm. terrified of that zero dollars and saves. you even have a savings account. no I I got Sofi but good and that's. great Link in the description below. because there are sign up bonuses and a. really good and high yield rate but you. got it just nothing to put in there well. I got it and I was trying to put more. money in it but it won't let me deposit. I have to like link my bank through it I.

just recently downloaded and put it in. so okay yeah it's pretty chill to do I. mean it's usually what you do with most. high yield savings is you'll link your. bank account to it okay yeah yeah it was. like the last week I put got it what. were you gonna put in there because you. only have 516 bucks though in your. checking account we wouldn't want less. than that in a checking account do you. have money somewhere I don't know about. I just put 50 bucks in there um no. that's okay okay yeah. we what is this Rocky Mountain that's my.

car oh yeah okay that makes sense then. we have Prime video we're making like a. rent or something like that right of 10. bucks subscription and then so I see you. go to some gas stations but then you. also go to the gas station and get like. three four dollar purchases which I. assume is not just gas right no yeah. we're getting some taquitos and stuff. you don't need to be doing taquitos. right now in Chef's storage Chef store. um it's like a bulk food place okay. that's fine that's a good way that's a.

good way to save money oftentimes is the. bulk foods and then we're drawing money. of 60 bucks who knows where the heck. that went and okay there's the gas. that's fine then the DDA would draw 240. dollars. and then we're getting some taquitos and. then we're going to some chicken. Longhorn Saloon four dollar taquitos. and coal Avenue something there oh. that's my storage unit.

what a storage unit no oh sorry it's an. expensive storage unit. I it's actually my boyfriend we have it. we split it in half so I get paid 40. what do you need a storage unit. um what do you have at 27 that you need. to store. uh Beast I have I'm a beekeeper so I. have bee stuff yeah you make money off. the beekeep. not yet nope. that's an expense you need to put a lot.

of money in to make money yeah well. lovely audible that's okay I like. audible but it's just in your situation. we just want to save as much fun as. possible. uh and yes and then Adobe and I canceled. that like Photoshop and Lightroom good. and then McAfee. that was an annual fee yeah yeah and. then they reimbursed me like 60 because. I. called about it I wasn't expecting it.

but yeah Adobe which you've canceled but. then Wendy's you can't cancel that that. happens and so Miller Crossing I don't. know what that was it was a bar yeah. great and taquitos and Lewis and Clark. again Amazon and Playstation a 50 bucks. there and. I think that one's gas it's kind of hard. to tell in here and then oh thecare.com. let'scare.com. that's what I that was also annual fee.

my that's where I got my nanny job. through so. that also got canceled for next year so. friendlies which is probably a bar. station it's a gas station yep. friendlies 14 bucks you just got 14 of. gas. now that was probably. taquitos and then there's more taquitos. and then withdrawing something prospects. 60 bucks and Spotify more Adobe glad you. canceled that and then more PlayStation.

and yes thirty dollars of overdraft fees. right. so what you said earlier is not 100 true. about always being able to pay things. because congratulations we're having. overdraft fees which is terrible for. having overdraft fees and no we could. not be going and putting money on. something that we're just paying back. later if we can't even have money in our. checking account correct correct you. agree okay perfect. let us figure out where some of this is. so we have zero dollars in savings. correct yep.

okay okay so we're gonna we're really. starting from the absolute bottom. negative bottom like there's there's. really not you have twenty thousand. dollars of debt. total minimum monthly payments of 509.96. I mean that's already minimum monthly. payments on the debts of which none are. actually like. good that's by any means at least the. car has something physical well. everything else is just nothing. all the debts minimum monthly payments.

are a third a third of your income after. what you set aside for taxes third of. your income. what's your rent. um none with my grandparents oh look at. the grandparents that's great that. should help us in this situation. dramatically thank goodness I want you. okay so gas I'm seeing how much do you. think you spend on gas on a monthly. basis. 250 or so okay.

do you put anything towards the. grandparents situation like internet or. utilities or anything like that or do. they just fully take care of it. yeah they take care of it okay cool. I'm just gonna lean this towards where. you were okay. now going out to eat and just spending. money on both essentially. you know we're seeing like two to three. hundred bucks. again. for a lot of people that's not crazy but. with where you are in your income.

situation and the deaths that are. stacking up way too much I mean that. could be going to pay off that's much. quicker car insurance what's your car. insurance. that that is about 156 so. now what's the food situation at home. how is groceries done in terms of. preparing food and shopping and. everything like that. actually my sister and I have our with. our grandparents it's like we have the. basement apartment so we kind of just.

take turns getting groceries well you. and sister live together oh okay yeah. it's like a duplex I don't know so she's. sometimes shops for you you sometimes. shop for her yeah yeah we'll get like. our own stuff and then like stuff we. both use. I'm giving you 300 a month you're. allowed to use 300 a month Max that. you're allowed to contribute in terms of. groceries and everything like that. that's it then make up a toilet paper.

everything else necessary to keep the. house afloat 100 bucks is what you're. allowed to contribute to that. anything else well health insurance what. are you doing with health insurance. you're above the Affordable Care Act. thing yeah that was that's on there. that's like 40 a month health insurance. yeah oh look we cut oh sorry. um well yeah your income would qualify. for that so I was thinking in terms of. being on someone else's but uh 40 bucks. that's great yeah happy to hear that.

and anything else that you can think of. that you have to pay for different. Insurance uh different minimum monthly. payments on things. um I don't think so. okay. dogs cats because you know 200 bucks. went to chewies as well yes I have a dog. and then. my so my boyfriend will I'll do. purchases on my card and then he'll give.

me cash. for that purchase I just don't always. redeposit all the cash. well before we go into all this so again. your budget. the debt minimum monthly payments 509. gas 250 car insurance 156 dollars. grocery 300 toilet paper 100 health. insurance forty dollars do you do things. like therapy or anything like that I. mean it sounds like you do have okay we. need to go to therapy because you talked. about these different mental situations.

that you've been in that have led you to. dramatic things like dramatic purchases. or leaving a job just randomly so I. think therapy is 100 needed for you it's. needed for everyone but there's 100. needed for you and as someone who does. therapy has done therapy for a bit now. highly recommend it for anyone and. everyone yeah. um talk through these big things before. you do them I know I'm hoping to. take advantage of that when I go back to. school because I do qualify for like. Financial qualify for financial aid. you know what that means.

well it's like a Pell Grant oh you're in. a Pell Grant. you know how much you're going to get. from that. has it been determined. I think 2 000 per semester. how are you paying for the rest. what is the semester of constant. Community College for you up there. I haven't checked yet I think last time. I went but that was like seven years ago. it was like 1500.

in-state tuition there for a semester. 3477. so the other 1477. were you expecting to cash flow or. borrow what was the play there. when are you going back. um and August okay any of you thought. about how you're paying for it. I was probably no I was probably gonna. do accept loans if I got those too. because they're so you you're in a. position where you said a few months ago.

you've realized that the debt is really. bad and we were thinking of just. borrowing more money in a situation. where as you've admitted on here you do. not know what you want to do. does it make sense to go to college and. take out debt for it if you do not know. what to do no. I Love College college is great when it. makes sense when it makes sense. financially uh depending on the Avenue. that you go and then when it makes sense. for the career path and everything like. that college is great you can also do.

things like certifications there's. certifications things you can do there's. even things like I've partnered with. companies like course careers where you. can get different certifications to. different Tech Fields stuff like that I. don't know if that's for you it might. apply to other people out there but. there's different certifications you can. do as well it doesn't all have to be. going to college now that's okay for a. semester especially with Pell Grants. that's good you know we're only coming. up with a thousand five hundred bucks a. semester right to pay for things that's. okay. but should that be going towards that.

when you don't know what to do when we. have 30 Death debt on multiple things. does that make sense right. um no but. if I just put like. so I've had it planned out to put. instead of like the 500 minimum payments. I was going to do like a thousand. okay where were you getting the a. thousand from because of what is left. over because you need to set money aside.

for taxes because the tax man always be. coming you have all right 343 dollars. and four cents left okay on a monthly. basis following my very strict budget of. what you were even close to following in. your situation so where was that extra. thousand dollars gonna come from. probably just was not considering taxes. so. text man I know it's the tax man cometh. and. what were you gonna do this next year. um well they these people do want. someone long-term nanny so I was just.

gonna do that and go to school and what. were you gonna do about the taxes oh. well you're definitely came here because. I don't know okay yeah that's a good. answer it's a good answer and so 343 is. left on a monthly basis with that okay. we need to figure out. it could be. what are the things you like doing have.

you thought about your career path this. is the part of the conversation when we. can go into that now I know you would. like I really do enjoy working with kids. that's probably why I went back to it so. maybe Elementary School would you like. to be a teacher. not anymore no. I was thinking more maybe like. counseling or therapy okay okay uh. uh. series there's also though it takes a. lot of school and it's kind of expensive. to do it but there is the especially for. the income that comes with it there's. also like social work and stuff like.

that have you thought about that. yeah school council would be cool. therapists would be cool you think you'd. be able to do therapy well. you think that's something that would. vibe with you. um I think so I definitely would. probably have to look more into it and. get therapy myself so yes yeah which I. want to put in the budget uh I'm having. a hard time squeezing it in there right. now but it is very important okay look. look up different Community Resources. sometimes there's things online. different programs that lower income.

people of which you are a lower income. person you're part of the 48.2 percent. of Americans who make less than 30 000 a. year so in terms of those who work a. full-time job well you're not even fully. working 40 hours a week either way. uh look at local resources and things. like that for lower income people being. able to seek Mental Health Services okay. there are often options I don't know the. town I hope there's options and then. again online yeah let's check them out. so.

yeah that's the Avenue you want to go. down. yeah it's. does not look good on paper but I've. been working. like two or three jobs for so long like. I just kind of figure going back to. school and just. toughing it out for that couple years. and. maybe it would improve if I got a better. job after. doing the work I don't know.

if that made sense at all yeah yeah that. can make sense. that couldn't make sense I was just. trying to figure out the best path. forward is a return on the investment of. what you're gonna do gonna be better. than the return on investment of paying. off 30 interest rate 29 interest rate 32. interest rate I don't know I think we. have to attack those first what we could. do. thousand five hundred dollars. um a semester.

so that's 250 bucks we could save up. each semester to pay for the next one. 250 bucks a month. and that of course gives us like no. wiggle room because I I can't go back in. August but I think we start saving up. now to be able to pay starting in the. spring semester of next year. uh pay it in cash because I really don't. want you borrowing more money I really. don't. I don't know it's gonna it's gonna be. hard I think we might be putting College. on hold for a second for a second okay.

so. 343 dollars what you need to survive is. one thousand three hundred fifty five. dollars a month. so what I need you to do. well first of all what I need you to do. actually. fun fact right now well you're not in. college yet. you're gonna go be a barista you're. gonna go do this you're gonna go do that. you're gonna do anything and everything. when you're not nannying to bring in. more money and bring that from 343 a. month in extra to at least 750 bucks.

you're gonna go ahead and bring in an. extra 500 minimum which you should. easily be able to do an extra 500. minimum post taxes easily please do that. because if you don't do that this is. gonna take forever and you're never. gonna have time to be able to go to. college you're going to borrow for. college and then you're not going to be. paying any extra on these because you. don't have enough time to work while. you're in college then we're just going. and going and going this is the. interesting is going to be a crew and. crew and crewing and then you're going. to be in a position where you're in your. 40s and you know we're finally starting. to pay some of this off and.

we're gonna still have to pay off. student loans and we have nothing safe. for retirement and then hopefully you're. in a better job that you like with the. career path we're going down you know. not making a ton of money but that's. okay but at that point you won't have. any retirement then we're going on our. 50s and we're going our 60s and then we. don't have enough money to retire. because we decided to not just work our. right now then you're gonna be dying on. the Walmart floor that's the dark future. we're looking at I prefer to go the. light option the option that looks like. Yay happiness and what that looks like.

is okay let's sacrifice now no more. doordash we're not doing that at all. instead we might be running doordash you. know no more going into bars you might. be bartending yeah yeah. so. boyfriend I'm sure he's a pleasant guy. you're not gonna see him as much because. you're gonna be working your ass off. because you got yourself into a. situation and now it's time to put on. our big girl shoes or big girl pants. whatever and we'll go make that money is. to pay off the monies you already. borrowed yeah deal deal do you agree no.

I agree Okay cool so you'll do that yes. okay so if you will bring in an extra. 500 hours a month then we can put that. into this process okay. if you're 100 sure you're gonna do that. are you okay cool then we'll say you. have an extra 750 bucks a month it might. take you a few weeks to get a job that's. okay but just immediately when you go. home the first thing you do is job job. job I'm finding a job and it's bringing. me money. so 500 bucks extra a month 750 bucks. what I need you to do for the first two.

months after finding this job you're. saving up to about a thousand five. hundred dollars so 750 you're putting. that in your high yield the sofa that's. already opened is fine or anywhere else. as well that's the one that I use. that's a one month emergency fund so. that I have anything catastrophic. happens you can survive for a month will. you go and find another job and we know. you love finding other jobs because. you're always finding new jobs at least. you're good at this point though that is. the one upside of always finding new. jobs right is that you've you know how. to look for jobs know how to do the.

interviews so. where we're doing from that I think just. I think we might Avalanche method of. this thing honestly which is where the. minimum monthly payments are yeah and. just giving you extra room I think that. actually the upgrade one's the one we're. gonna attack first then you're gonna. never spend on it again because it makes. no sense you've maxed it out multiple. times and paid it off multiple times. you're not going to do that again. because it doesn't make any sense and I. do not want you sitting here in six. months to a year and saying oh I have a.

maxed out upgrade card that I paid off. following this these uh guidelines and. then Max it out again we're not doing. that because your life is important you. matter your future matters. please please so. 4226 divided by that 750 bucks it's. gonna take about six months to pay that. off so now we're nine months in but. upgrade is gone meaning you have an. extra two hundred dollars a month extra.

which is incredible you're still working. as hard as you are at that point still. working as hard as you are so you're. bringing in that extra 750 but now we. have 950 because we have an extra 250. that's incredible. from there the Capital One we're paying. that off boom in less than a month. because at that point the balance would. be lower I would just you're doing. minimum payments on everything else and. we're doing the upgrade first and then. the Capital One that's gone in less than. a month so we're like 10 months and then.

you're putting all of it towards the. Quicksilver card at that point with. where the balance should be that should. only take a month as well so now we're. 11 months in. at that point you have the car at 5.74. interest rate tell me the car what's the. car. 2014 Honda Pilot how many miles. 114 000. okay. over the miles but as far as I. understand the brand and everything it. should be okay how's the condition how's. everything. um it's good I guess I need new.

a CV shaft this one it's called. you know. CV shaft I think that's what it's called. I. how much is it gonna cost to work on it. um I think the part is like three or. four hundred. mm-hmm. it's cool it's gonna cost you a thousand. bucks labor and everything. possibly I have. someone with a garage nothing about yeah.

well this might be delayed by a month so. you can do that if that's 100 necessary. and of course then we're at 12 months of. this part we'll just bake that into the. process so you're a year from now you. have a one month emergency fund you've. taken care of that you've paid off. upgrade you paid off Capital One then. you paid off Quicksilver that's where. we're at in a year okay. from there what we can do with the car. situation which I'm not absolutely. thrilled with you having the loan it's a. 5.744 interest rate I think we can get a. better return on our investment giving. you a degree than that 5.74 74 interest.

rate plus depreciation I think we can. and I'm just thinking about this in a. fully mathematical perspective trust me. if you're in that situation and then you. have the fire or lit under it's because. you've been going crazy and you've been. paying off debt and you're just feeling. the exhilaration behind it and sure go. ahead and pay this off as quick as you. can if you want to in this situation. because you care about this and. hopefully during that year you will have. done some self-discovery taking some. quizzes online figure out what you want. to do you then meet with the counselor. we can get you back to school it's gonna.

be awesome you're gonna cash flow it. because you have an extra thousand bucks. a month you are paying for that semester. you're paying for that semester then you. also have some extra money that extra. money that you have on a semester basis. that doesn't go for the thousand five. hundred dollars which by the way should. be an extra thousand uh well. okay well during that time the minimum. monthly payments will have gone down. because you don't have them but at that. point you'll quit your second job. because you're going to focus on school. but you'll still work the 35 hours a. week on The Nanny.

the hours for school it might be funky. they might be like late hours they might. be early hours because the nanny are. also kind of odd hours but really truly. works at 35 hours a week we might be. down to like. minimum monthly payments down from the. Thousand to with what we did before like. 500 bucks so maybe you can only afford. to do minimum monthly payments on the. car and then cash flowing every semester. and you have a semester's worth of. credits. yes so you can go ahead and get your.

associate's degree. but then with everything you've said you. need at least a bachelor degree and then. you talked about some positions that. would require a degree beyond that as. well like to be a therapist and stuff. like that so. from there. the associates degree you just need to. know exactly what you want to do. for a career and then we can talk about. paths forward from there one thing I. really want you to start doing at that. point though we also need to save up and. have an emergency fund maybe you have a.

fully funded emergency fund before you. start cash flow in school so maybe it's. a year and a half before you start cash. flow in school I also really want to see. a Roth IRA max out on a yearly basis. because right now you're still and. you're even at that point you're. finishing up the best decade of your. life for compound growth you know we. want you to get to a point where you. have at least a million dollars by. retirement and by the time you and I are. ready for retirement who knows what. Social Security will look like in a. million dollars certainly won't be. enough but we need to get you at least. to that point. and we're not even close to looking at. the Horizon right now so a lot of things.

are up in the air in a year year and a. half from now. what do you want to do what the school. look like in order to get to the place. you want to do what does your job look. like at that point. are these debts fully paid off. do you save up the emergency fund which. I would of six months which would be. ten thousand hours because it's below. ten thousand dollars with what you need. to survive but I want a minimum of ten. thousand dollars to get something. medical happens or else in case a car. breaks down okay. so things are up in the air but what's.

most important right now. is you get that one month emergency fund. you go get that second job you pay off. the upgrade you pay off the Capital One. then you pay off the Quicksilver then. you save up a six month emergency fund. then what you determine is most. important to do from there. is up to you and we can have a. conversation at that point. but that's what the next year to year. and a half looks like yeah and go bring. even more money in that I said minimum. extra 500 a month post taxes yeah bring. in more if you can go crazy.

go crazy which is absolutely wild I. don't care if it's federal minimum wage. work as much as you can and get better. jobs the more you find them throughout. the process but. I don't want to be Negative Nancy right. now yeah though you're an incredibly. nice person and I think everyone has. just uh you know is rooting for you and. everything like that I need to be the. real person and say you head down the. path you're currently heading down even. where you've cut back a bit yeah you're. dying in poverty oh yeah like oh you're.

declaring bankruptcies you know. potentially multiple times throughout. your life because you have gotten to the. point where you've paid off debt so. let's just say you've gone through. bankruptcy the debts are gone you know. depending on what you do. I see no place where you're not going. back into them at this point you know we. need to deal with some things definitely. yeah I. my grandparents I live with there's. Finance everything so that's kind of. the example I have and then.

my parents kind of both. aren't financially stable either so. there are certain ways to go about zero. financing that makes sense but that's I. doubt that's what they're following one. thing you can do if you like this method. of following things I partner with the. Fizz card and it's actually geared. towards the costumes and you'll be in. that situation again it acts as a debit. card it's kind of an instant charge so. it builds credit via a credit method. when you swipe the card boom yes it's on.

the credit card but it immediately gets. paid off with your checking account so. it acts like a debit card but it helps. build credit so you can get the double. effect with it but what's very clear. follow my budget use a budgeting app of. any kind I use rocket money you can use. any whatever works best for you you can. just use a spreadsheet for all I care. okay but are you ready to chop up at. least the upgrade card. right now. the upgrade card Credit One the upgrade. card and the stupid evil evil absolutely.

death disgusting. stupid. what was it called Credit One credit one. you ready yeah gonna kill it. can you go get the scissors please in. the kitchen yes. this is progress this is this is the. Awakening of the future you this is the. rest of your life starting to make. progress you've been able to see the. sunset on the other side of the Horizon. on the other side of the Hill that. you're going to be climbing up Credit. One.

which is. [Music]. okay so a whole. [Music]. oh thank you. no I want you to do the honors but okay. I'm trying to block out some important. information first. this is I don't think I don't think I. can cover up your name on here. cover up your name on here. the best you can that's perfect so you. can do that now chop it up and Camera.

lift it up not the card yeah yeah yeah. yeah kill it yeah. ended and its existence okay. it's gone it's gone it is done now go. close account as well because not not. just for safety reasons but because they. are charging you stupid fees on a. monthly basis so that card that bank. you're done you're free from them you're. free from them and you're gonna go live. an amazing life and you're gonna. sacrifice to do it and you're gonna be. incredible and everyone's gonna look up. to you because you're gonna make an.

amazing life happen yeah yes do it thank. you any final thoughts. um. um no I just gotta do better yeah. I'm excited to get rid of the debt for. Jess it's gonna be a really long road. ahead with lots of hard work but it is. worth it and I hope she doesn't she took. the first step by coming on here and by. chopping up that card and closing that. account so good job just for that for. your Hammer Financial score you kind of. hit the nail on the head with your Gus.

but spending in a budget uh not great. shouldn't be doing this I should be. doing taquitos all that stuff it's not. the worst we've seen it's definitely a. two out of 10. debt there's nothing in. collections there's nothing owed to the. IRS but I cannot go higher than a one. out of ten retirement nothing zero ten. emergency fund nothing zero ten real. estate not even part of the conversation. zero out of ten for your Hammer. Financial score just 0.5 out of ten. check out all the resources I've Linked. In the description below they are what I. use or would use in different situations. like a high yield savings account.

different educational resources and. places to invest like Acorn so you can. get a free five dollars if you sign up. using my link below don't forget to. follow my Instagram and Twitter thanks.