She’s Hiding $200,000 Of Student Loans From Me | Financial Audit

hi I'm Yaya I'm 47 years old I'm from. Converse Texas and this is financial. audit Converse Texas how close to Austin. is that um that is close to San Antonio. oh okay well thanks for coming up what. do you do for a living right now well. right now I do quality insurance um for. a medical waste company and but that's. not really my passion though um we just. moved here actually in April and of. April who's we me and my my kids oh okay. and um I am working on getting Li Ed for.

uh mental health counseling so oh I love. that that's really important that's good. yeah I I love doing it as an intern in. Illinois and I'm just just need to take. the test and go through the licensing um. stuff here okay how old are your kids. four and five very ni where'd you guys. move from um well ly Illinois which is. like mest from Michigan right out of ch. right outside Chicago yeah I'm from I'm. from kamazo Michigan so pretty close to. that yeah uh welcome to the warmth.

usually I mean it's only 64 right nowy. it's nicer than 30 40 degrees Yeah uh. okay what are you making at your current. job oh right now it's not much not what. I'm used to I'm only making a little. over 56 Grand a year it's not terrible. though it's not terrible it's not. terrible but when the only yeah yeah oh. I had coming in when did you move here. uh April we arrived April 30th I had.

coming in in the most recent statement $. 3,661 sounds about right mhm okay how do. you feel living off of that with the two. kids uh I'm making it it probably. wouldn't be as bad if I didn't have so. much credit card debt yeah you've kind. of yourself yeah kind of I mean uh well. there's a there's a history behind that. oh I'm sure there always is we can get. into it in a bit but uh I so I do think. so fun fact you're actually one of the. first people in like forever.

who has not seen a single episode of the. show which is kind of exciting um which. means that I'll probably be a little. more delicate as you because a lot of. people that have seen the show they've. seen the show and then they come on and. they're stilling up so I pisses me off. but still with that being said I do a. score at the end I rate your finances 0. to 10 zero being bad 10 being great what. would you give your overall Financial. score right now zero now zero probably. oh yeah honest it's not it's not good.

it's not good I made a lot. of but you're still making bad decisions. well you're still spending on the cards. yeah after I I make the payment and then. I have to use it to buy certain things. you know it's not like I'm out shopping. and do I'm buying groceries. or um you know ordering like on Amazon. like you know like their you know. clothes your shoes or stuff like that I.

know I'm kind of like in this this bad. cycle of spending and but I do have a. plan I have a plan to get out of it but. it's just going to take a little time. the extra miscellaneous bull that is not. required to survive by any means by the. way it was uh close to 10% of your. overall spending where eating out was. about 4% of your overall spending so all. going to putting clothes on the kids I'm. gonna have to immediately push back on. okay it will help mhm uh as a general.

rule for the show m not the B cuz it. will be called out it'll be seen I have. eyes into your finances we've gone over. it back to front to front to back okay. multiple times Well we will burn you at. the stake of truth I I believe you I. totally believe you I'm not going to lie. I have bought stuff for myself yeah. there's a lot of things that go into. there's a lot of things that that go. into spending and and first thing I feel.

like you got to go back to how you were. taught to spend and and save it goes. back to Childhood and you know I have. parents that came I mean they're both. Highly Educated smart as hell but you. know when you come from a a a country. that doesn't have a credit system to a. place that does come from Ghana okay so. you know I think their just their their. way of spending was just not conducive. to really Building Wealth or saving and. kind of being in the hole so you learn. how to spend that way not even that dude.

people born in the United States whether. or not they're from another country the. American way is going to debt until the. day you die and not know how to control. spending so and so I grew up kind of. thinking that way you know trying to. keep up with the Joneses getting a a. flashy sports car when I was like 19 you. get well probably dating myself but it. was a brand new mitsubish Eclipse when. that first came out oh that means. nothing to me oh okay I but I don't know.

any cars I don't know any cars well. you're you're like 12 you look you are. super young so you probably would not no. I don't I don't know today's cars I just. don't know cars I'm I I have a Jeep. Cherokee me too really yeah I do and. that is like all I know that exists in. the world I know there's such thing. there's such thing as a Buick out there. that's a car that exists oh yeah because. I've had one um yeah okay well either. way so you rate yourself as a zero what. immediately scared me going into this. mhm and I'm going to put the fear of.

debt into you just CU it's important for. people to realize especially since you. haven't seen the show a lot of people. that come in they're like my Situation's. not good oh not that bad either not like. you it's pretty terrible I need to make. sure you understand how absolutely dire. your situation is and then what we can. do to actually turn it around I will. give you a plan in the end Okay cool so. stands out to me immediately credit.

one yeah evil they are. basically just the most evil credit card. company that exists they like disguise. themselves to look like Capital One when. it's coming in in sign it for it and. then they just hit you with fees and. terrible interest and just there they. just pound people into the ground and. then they open up multiple credit cards. with credit one cuz it's like $500. limits in this case it's a $700 limit. what do we have here we had a previous. balance $651 payment of $50 good. job purchases of.

$51.7 so if we know if we're trying to. get out of debt dude and I assume you. don't like this cards you said that you. don't like being in credit card debt you. said you're trying to pay them off. you've made you've made mistakes why are. we putting more money on it than we put. towards it and then $6 of fees $16 of. Interest bringing it from 651 to 668 so. the balance went up mhm well I just made. another payment so just before it. doesn't matter what what happens here is.

you make a payment and then you put more. money on it so like next week you're. going to go put more money on it this is. the most recent statement we have and is. it putting clothes on the kids back no. it's going to Bill Miller. Barbecue that sounds that sounds. horrible when you say it like that yeah. and this is the reality I shouldn't even. laugh because it's it's really not funny. no it's not it's terrifying it is it's. that's not good. um okay I guess full disclosure.

it and I I don't want to use being a. single mom as an excuse because it's. it's just a fact of life right now but. you know I do I do struggle with being. you know overwhelmed or maybe a little. bit depressed anxious and. so and when people are in that state. sometimes they they find a little bit of. satisfaction in in buying I'm sorry uh. and buying little things you know um I'm. not a huge Spender as you've noticed I.

don't think you see any like enormous. purchases over no it's a lot of little. purchas exactly which is almost worse. and I was just going to say that I think. that's one of the things I convinced. myself of oh I I just got this you know. it's deal $77.99 or $8.99 or $20 or $30. or here or there oh this is you know. this is really you know good on sale and. I convinced myself I didn't spend that. much but in reality when you add all. those purchases up then I look then I. feel bad I'm like ah I probably.

shouldn't have I could have done without. that or I you know done without this but. you know full disclosure you know after. the kids go to bed and I'm sitting there. by myself and I'm feeling kind of bummed. out or whatever um you know sometimes I. it makes me feel a little bit better to. I'm sitting there on Amazon you know and. I'm looking and I'm seeing these really. cute yoga pants and I'm like okay cuz. I've you know I've gotten into working. out a lot since I got here and you know.

and you know I joined backstage.com you. know trying to look for some you know. Fitness type gigs or whatever so you. know I've been kind of investing in like. some new shoes which I probably didn't. need some young. pants. yeah well that's nice way to put it I. guess so it makes you happy it. temporarily okay tempor do you have. anything in. retirement very little you know what. will make you happy MH you being able to. retire and your kids not being morally.

obligated to take care of you because. you were not mature enough to set. yourself up for retirement you're. approaching 50 I am you can start. withdrawing things from retirement. accounts taxfree penalty free sorry. penalty free at 59 A5 I want to think a. brief moment to thank today's episode. sponsor Sofi if you didn't know already. Sofi is an all-in-one finance app that. allows you to bank borrow and invest all. in one place but that's not even all. they have to offer if you're looking for. a new budgeting app and I know a lot of.

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with Sofi by scanning this QR code or. visiting sofi.com calb insights or. clicking the link at the top of the. description below you're approaching. that decade of your life MH and we have. how much in retirement right now oh gosh. I don't even think you want to know I. want to I need to know probably maybe. two grand and what's it in uh 401K. okay that won't last you a quarter no. and Social Security is not something I. who knows what it's going to look like 5. years from now let alone 15 well here's.

the thing there there was a time I was. in an abusive relationship with my kid's. dad and he was not only verbally and. physically abusive he was financially. abusive so sometimes the the emotional. bondage that you're in is almost worse. than being punched in the face or. strangled you know it's it's it's very. difficult and so when they're coercing. you you better give me this amount or. you better give me this and buy that and. mind you I'm the only one working.

there's two car payments there's a condo. there's two children there's all these. things so now and then I was pregnant at. the time the company offered us to buy. out I'd been there for a long time so. that check was pretty big oh is that. came from that's where it came from okay. so so you saved uh no it wasn't well. part of it was I had a lot more money in. my 401k and I ended up cashing that out. so I had all this money that I thought. was well I had put most of it in a. savings account High interest savings.

account I'm like okay this is going to. be. great the plan was for him to work for. me to relax for a little bit and then I. was going to get another job right away. you know but then Corona happened now. we're in the pandemic now I can't find a. job he's not working so slowly but. surely the money is getting Whitted away. and Whittle down and Whittle down when. did you leave leave him the relationship. um October 3rd of 22 good I'm glad.

especially if there's anything phys I. mean the other ones are unexcusable too. but if there if there's even like a. concept of something physical well I. lost everything when I left done like. literally he destroyed the condo he. disabled my car I was nobody drive the. car again you charges did you charges I. did and oh well we can't really do. anything because lived here the police. we he lived here too and there's not a. law against someone destroying their own. things I'm like oh this was he on the.

title of the car. no I found some well he did he speak to. a lawyer um I did speak to a I I did. speak to a family law attorney because. he was making all these threats about. taking the kids I'm like ain't nobody. gonna give you the kids dude ain't. nobody giving you no damn kids oh man so. I'm just trying to give you some. background but that's not but it's not I. don't use it as excuses for bad spending. habits because the bad spending habits. still exist they they pre dated the. relationship I just need you to retire.

because. like if. you they'll be entering their 20s by the. time you're probably like all right I. feel like I should retire right that. means like I don't know if you're going. to be able to survive on Social Security. we can't so what happens then what. happens you don't have anything saved. because we're just going into more and. more debt like this we overspend from. what you were already putting towards it. so your two kids will feel like they. have to take care of you and I don't.

want that no I don't want that either. it's actually it's an immature choice to. put that on your children yeah and I I. absolutely that is one of my biggest. fears actually I do not want to put them. in a position to where I don't I don't. want them to inherit the same spending. habits I want to teach them how to save. how to spend and give them what I call a. little bit of jump off money so when. they're done with school they've got a. little bit of something that they can. use to get their lives started. I'm giving you our budgeting course.

which is the best budgeting course. online for free uh when they are. like 13 14 15 MH make them make them. take the class that'll teach them some. really good skills and it also gives. them resources of how to budget like. actual physical resources yeah um so. Bill Bill Barbecue I think retirement is. a little more important than that yeah I. AG okay so Credit One again this is what. usually happens with credit one you have. one credit one you get a second Credit. One oh this is a pretty high Credit One.

balance that was the first one I got. this the one you looked at previously. was the second. one okay we're sitting at. $1,388. 40 Death at a $70 minimum monthly. payment now we did a $70 payment but. what did we do we went and purchased. $96 Experian credit report you don't. need to pay for that dude is like Credit. Karma or get your get your free annual. credit report as well well it say that's.

good for people who are nerding down on. their credit score totally good when you. don't have debt and you have a fully fed. emergency fund and you're contributing. at least 20% to your retirement yeah go. do that put it in your fund budget does. not make sense in your situation then. gas and then gas you get gas every. second of your life by the way across. all your statements you fill a tank of. gas every second of your life unless. you're grocery shopping from the gas. station do it I don't know you're. filling up $30 $40 it takes a gas like. every other day across all the.

statements combined it's wild I know. can't be I don't I I don't even go. anywhere I work from home and I take the. kids to school and I pick them up it's. like I'm so boring I rarely go anywhere. you know it's not boring hitting that. subscribe button cuz we're trying to get. to a million subscribers and I can't. believe I'm even saying that thank you. to everyone who has subscribed so far. natural I had to do I had to do the. segue um okay well I don't know we'll. take a look into it and we'll see if we. miss something something uh interest.

this year so far 173 and $68 in fees on. the last one we even say but it was $43. of Interest this year so far and $118 of. fees fees fees fees fees fees fees oh. boy one main what is one main for what. what even is this that was one of the. worst decisions ever I didn't even see. this before I went through this with the. text is so small. me this is this is insane what is this. what is this I don't know is is that the. personal loan yeah what was it for oh.

well. so this was this would have been I think. in June of 22 I took that out some. somewhere around there and um we were. basically broke and did not have enough. money to make it through why are we. broke um in that time in that time all. of my money went to paying all the bills. and all the other B that he racked up.

okay uh I I hate to say this but I mean. this is the truth he had a problem. with so uh well not well they not really. like. creatum I don't know is but I I don't. know anything. um buying all these like uppers it's. just some stupid like and you're popping. all these and demanding money from me. and running up my credit card and how. long are you guys together six years I'm.

again I'm glad you're out of. it I'm so am I you have a restraining. order has he tried to I do have a. restraining order out of Illinois I. don't know how much that means here but. well if you needed to pursue it here as. well I would obviously encourage that uh. hopefully you don't need to though um. $3,872 on here with 143 minimum monthly. payment took this out in order to. survive but guess what they're like lone. sharks honestly. 36% death death. I original loan amount was.

$3,400 that's all I got and I still if. the original was 303 $3,400 and it's. currently 3,872 yes oh this that's why I. call them lone sharks do One Main. Financial I'm like oh and when the last. time I called for a payoff was maybe I. don't know three or so weeks ago I. wanted to find out well how much if I. paid it off now oh 20 she's like 20 900. what and like I've been paying you $143.

for over a year damn near a year B is. not payoff call for payoff I wish I had. no morals cuz God open up this company. see how much money they're making it's. disgusting though I hate myself for that. one that's the first thing that's. getting paid off when I have some money. in my you did it let it be a lesson to. not never ever ever again never again. this is disgusting this one's disgusting. yeah I I agree.

Prosper it's a card yep not prospering. on that one. oh current bounce 232 no interest though. so you didn't fully pay it off. though I've paid that c off several yeah. you paid this off but do you ever rack. it back up yeah why buying stuff okay. you know what we call that here you're. not a a credit card person you're not a.

credit card person credit card people. are people that can finesse the system. never pay a single sent of interest on. their life make the rewards back like. getting 2% discount on all purchases. with a city double cash something like. that you're not a credit card person. they're taking advantage of you they're. making money off of you you pay off the. bals you build it all the way back up. you're getting Amazon Amazon and eBay. eBay great and it's a 33.2 4% interest. though you didn't have interest in the. statement because you did pay it off. you're right you've built it up you've. had fees for $4 of fees and $930 of.

Interest this year so far you're not a. credit card person I'll connect you with. a resource that people in this community. use all the time uh it's it's called. Fizz it's a credit card so it helps. build your credit but it pays it off. instantly like a debit card so you'll. never hold a balance dude it's so it's. what you need you are not a credit card. person I need you to close all these. accounts I need you to chop up what well. if I close all my accounts it's going to. fect my credit. score you do you I do you even know what.

you just said do you even know what that. means you're not taking advantage of. credit you're not taking advantage of. credit credit is taking advantage of you. you are paying hundreds of dollars a. month no no no no maybe even like $1,000. a month in interest they are making. money off of you you're taking advantage. of nothing that comes with a halfway. decent credit score what's your credit. score uh well last time I checked it it. said. six something. low six or high six no it's low six okay.

so it barely even matters so it barely. even matters what does it matter close. these pay them off I plan to I plan pay. them all off how do you plan to pay them. off we're 47 years in and we have these. I know well I haven't always been I but. like you said you pay off that credit. card and you build it up every single. time I know it's a situation I'm in. right now but like I said I have a plan. I bet if we budget I bet if we budget in. the end that there was I do want. practically no excuse I do want.

I you know what I'm not I'm not good at. that not good at then you're going to. take you're going to take my class we're. going to give you and there's a. spreadsheet that you can plug your. budget into and it'll do all the math. for you I do I do want to do that. because I I'm also going to create you a. basic one at the end okay but I mean for. so long I I waited till after 40 to have. kids so for 40 years I was single I had. money I was traveling I was kicking it. got you know. got my master's degree did all that how.

much did you have in retirement though. um how much should I have at one time. maybe like something like that by what. age let's see I was there like 19 years. so I was 40 okay that's way too low for. our 40 so even though you were doing. okay financially you're still. prioritizing fun and Bullit over your. actual necessities of life yeah so. there's still a lot of the bad habits. that are persisting today were still. prevalent then correct it is now we're. in a darker situation and that's why I.

said the the bad spending habits. predated the relationship it only got. worse during that time period and now I. find myself like damn I don't have. access to that kind of money anymore. where I can pay all this off yeah and. you know get. ahead Brightway yeah that's another One. Main Financial oh great company yeah it. is that probably wasn't a smart decision. because has any of this been well $.

7257 with a minimum monthly payment of. $26 and. 38 with $240 of purchases even though. you only did the minimum monthly payment. dude what the 16 hours of interest. charge if we're if. we're okay if we're losing interest I'm. just I'm not try I'm trying not to go as. hard on you as I normally do on people. cuz you haven't seen the show this might. be your first. like actual conversation with someone.

who wants you to succeed financially so. I want to be. gentle. uh if there if there's a balance we. can't pay off on a card that is a crew. interest we are not purchasing a single. scent on. it it's not an option. yeah I did uh definitely not intend to. I what do you mean you did well I told.

myself you use a studio booking thing. Little Caesars and lead for worth I know. I my intent when I got the card was oh. okay I will boost my total credit so. that way my um debt to well not debt to. income but you know my available credit. because they say they always talk about. credit usage okay okay credit us that's. it credit utilization I'm like okay well. this if I add two grand to My overall.

credit you know limit but you also lower. the age of your overall credit so we'll. see how much it offset utilization is a. bigger impact so so I thought that's. what I thought I thought okay that's. what I'll do that's you know and I was. not intending to spend it at all but so. you thought that this happened and then. yeah so remind me what are you not I'm. not a credit card. person cut this up destroy it burn it it. doesn't exist it's ruining you okay so.

let me ask you a question though yeah. okay. so credit utilization right and they say. that if you voluntarily close your. credit card accounts that it tanks your. credit score sure so if I close all my. credit accounts then how fast can I even. expect my credit score to rebound from. that now I have no credit well okay so. it's going to decrease the age of your. score. and your available credit yes it will.

even though these are pretty close to. max out anyway so will it impact. available credit not that much but it'll. definitely decrease your age and it'll. negatively impact your score let me ask. you this a question to your question. what do you use your credit score for. what do you use your credit for well. there's two main things that I have on. my radar right now A I want to refinance. my car because because of the situation. that I was in that he put me in I ended. up having to buy another car while there.

were still another car what's the. interest rate on it it's like. 18% it's ridiculous with your credit. score though I don't know how much. better you're going to get to be honest. well my what I want to do is I want to. improve my credit score so I can. refinance but you see that having these. credit cards and your actions behind. them lack of discipline lack of maturity. and lack of. understanding you're making your credit. worse so like what's the point these are. obviously an enabler tool to your demise. well and what's the second thing what's. the second thing on your I want to.

purchase a house okay and that's not in. the conversation right now so I mean. just being flat out and that's okay yeah. not everyone need I would love you to. get a house I mean I've had a house. before I've had a house before I would. like to purchase a house again I'd love. that and maybe we can talk by 2025 that. is my goal okay well but see I'm. planning to pay these cards off within. the next six months so again we're 47. years and what's your plan to start now. I'd like to hear your plan that. obviously was not starting well I have.

some funds that are going to be coming. and so I've kind of from where and how. much okay well I don't really want to. say from where because it's kind of. sensitive so I'm looking at about 6,500. and then hopefully from tax return um. that will be enough. to wipe all of this out so once I do. that then from my monthly just regular. pay I can um I can start saving that. money and that that's really my plan is.

once I pay these cards off within the. next six six to eight months I guess. whenever tax time I'm sorry whenever tax. time comes around um then uh then start. saving the money that I'm paying for all. this crap I can be putting that to the. side to start saving for the down. payment for the house I want to open up. two savings accounts for my children and. start putting money there I I do not not. want to put money towards this I want I.

do need you to have enough money save. for retirement though. which okay okay okay okay well and part. of that plan too and and this might. sound really ambitious but I'm an. ambitious person once I start counseling. which hopefully I my the whole lure. process will be completed before the end. of next year my um my income is going to. go way up. so I'm. part of the plan is that when I have. this increased income then I'll be able.

to save more because now I don't have. this debt so but I want to get out of. this debt before I even get to that. income level people in your situation. people with your spending history people. with your debt history tell me your best. guess what usually happens when people. get a big sum of money and pay off their. cards or they take their cards and. consolidate it under one debt what. usually happens they get into more debt. they take the balance from zero all the. way back up because the behavior never.

changed what was happening never changed. and look you're not making those changes. now again Little Caesars lead Studio. booking stuff we don't need to be doing. right now is what was on this card when. you can't even pay it off so the. behavior around that typically maintains. I know I know in your gut you're like oh. yeah but I'm going to have the money. it's going to be clean it's going to be. good you know fresh start without. addressing the overall behavior and. discipline lack of Bud. it does not go the way you say it's I I.

I I believe you but part of that also. was I did want that's part of the reason. I did this too I'm like well maybe they. have some kind of advice or something. for me because I know like okay I'm not. budgeting at all really I mean I do. budget little things here and there but. not at a substantial level I do need. some help with that and I feel like yeah. I've made a lot of mistakes I've had. some bad spending habits.

do in order to because I've been wanting. for someone to look at my finances and. say okay this is a situation you're in. but this is how you can get out of it. sure realistically okay you know well. let's see how guaranteed is that. 6,500 pretty guaranteed give me your. odds uh about I would say about 98% all. right better I have to take your word on. it there's nothing else I can do.

Milestone Milestone of. getting we owe. $429.99 $8 of Interest fees of. $35 oh it was the annual fee the annual. fee on this. card minim payment again you are not. wreaking the benefits from these cars. they don't make any sense that's why you. need to close them you know what and I. was going to ask about that too because.

um I the ones with the annual fees I was. literally thinking about closing them. but I'm like okay is this going to how. is this going to affect my credit score. if I just close these cards but I don't. want to pay a fee every freaking month. or every year. utilization uh D ter. marks those are things that play like. the heaviest weight on this I think if. we get you on the Fizz card and maybe. just one of these that just you put gas. on it twice a month and have it. automatically paid off I think even that.

with all these closed accounts is still. going to put you in a better place. creditwise I can't promise but I really. do think. okay 24.9% interest interest on that one. my goodness your debt just keeps going. doesn't it sign up for all every debt. that's ever existed well except for. student loans I don't see student loans. well they're not in repayment right now. so. you're GNA so they exist they do exist.

me that's not even the wor credit card. yet I I I think you're going to blow a. gasket when you see the the one of the. my my other statement. $889 $21 of Interest fees of $4 what. the fees was the annual monthly fee mhm. great uh purchases. $249. oh.

you you oh never mind oh my gosh never. mind I take back. the I thought you were over your credit. balance there for a second and I was. like dude if you care about your credit. like what are you do they're not all. maxed out whatever this Alma Alma Alma. Alma Alma is well that that I actually. need to do the co-pay for counseling oh. that's totally chill but I didn't I. didn't want to I I really didn't want to. put put it on that card I really didn't. no I bet not how often is that is that. Weekly M so we'll put it in your budget.

four times a month then right it's. 356. 3.56 times that by four that's a lot. it's a lot of I well that's okay you. know but God if I could get rid of that. loan and the other well like I said I. think your head's going to pop clean off. when you see the other credit card I've. seen them all but I'm being reminded. like Dam. $200 it's ridiculous.

32.9550. 1829 cents buddy a lot of these balances. are so low that we could kill them now. and it will save your life and existence. in future that one I'm not too worried. about I can you should be worried about. all them because uh available credit is. only 17 bucks on here it's basically. maxed out which is also in your credit. yeah it is fees $59 interest.

$548 $40 Min a monthly. payment a was the minimum Mony on the. last. one uh. 39. uh yeah it was the annual fee mhm and. interest like why should I pay $59 for a. $300 credit limit that just seems yeah.

oh God Ally yep oh boy and typically. Ally is known for giving you money by. giving them money but you are on the. opposite side of it where you owe. $527 27 on a card that is only goes up. to $5,300 mhm great uh bounce went up. you're like I hate this card I hate this. card but yeah we decided to put $271 27. of purchases on it does that make sense.

I don't think so does Little Caesar make. sense I don't think so does Big Kahuna. make sense I really don't think so well. no that was for my my my son's. fundraiser so I made a. donation I get proba should have done. that in cash you should probably. unfortunately probably shouldn't have. done that and I know that sucks I that. really sucks you want to do that your. mom you're loving you're caring I can. see it I know that's your energy you. want to do that honestly I do agree with. that one I'm like in. prek probably didn't need to I could.

have waited on the fundraiser thing well. there's also that I would rather. fundraise your retirement so he doesn't. have to take care of you when you're in. your 70s so yeah that's what I choose. nobody likes buying a $10 bag of popcorn. was it good at least uh well I didn't. even get the popcorn I got like a $12. bag No it's like $15 bag of cookies was. it good they were they were good I don't. think worth 15 bucks I bought I bought. some uh I bought Girl Scout cookies uh. when they came out and I bought Boy. Scout popcorn recently well Girl Scout.

those were good these were just they. were just okay kids JY 108 bucks what. are you doing my son's birthday. party his first like kind of real. birthday party and I F I I felt like I. felt like I owed them cuz they've just. been through so much you know being that. violence I just I feel like I and that's. part of the thing that drives me I feel. like I owe them the best life possible. and I know that does not include leaving.

them any debt I am. so that's I'm driven by that like I I. have to what do you mean leaving them on. debt I mean as as they as I get older. and they get older I don't want to have. any debt you know or or not any savings. for them you know okay well these credit. cards won't get passed on to them well. that I know I know but like I need to. have money in my account I don't want. them to worry about you know God forbid. I know this is a long way away but I. don't I I still think about like okay. what if something happens to me you know.

I don't want them to worry about oh how. are we going to bury mama you know stuff. like that I do you know have a life. insurance policy and all that but still. um you know I don't want to leave them I. I just I want to leave them with. something good I want to leave them with. some money yeah I want to leave them but. more than just the money I want to leave. them with good spending habits so that. they do not follow in my footsteps I do. not want them in debt I don't want them. taking out all these loans I would. really like to teach them how to finance.

school without having to go into debt I. didn't I put I essentially put myself. through school I had to pay for it some. kind of way and I was well you took out. student loans I did I. was that in retrospect if I could go. back and do that all over again I would. have went to a different school I went. to a really great school but I would. have gone to a different school I would. probably State School something cheaper. I would have done work study I would not. have have taken out all these I would. have well there's even there's like I. mean even for them you never know.

there's like trade schools they can go. to there's certification programs like I. like the tech certification Su course. careers there's a lot of different. options that are so aren't like you have. to go to college college is great though. for those who do it correctly so that's. definitely a good conversation to have. but um obviously we'll get there uh. because the oldest one's only five right. now but uh obviously that's a that's a. good want in the future $1,389 of. Interest stolen from your your life this. year so far and fees of. just on that card. feel thinking about that checken account.

ended with. $97.95 terrifies me for a mother or two. yeah yeah what happens if any payment. hits um yeah I just we could end with. $97 97 up putting stuff on credit cards. well we could end with more money or we. can go to big Guna Little Caesars. getting some taquitos GrubHub toos and. by the way cuz you're not a watcher of. this channel Taquito usually means. stopping in the gas station getting some.

bu doesn't matter isn't anything it's. like $2 you're not getting $2 of gas I. know that something from the Microsoft. store Five Below Taquito Little Caesar. Taquito Dairy Queen McDonald's Taquito. McDonald's Taquito McDonald's taquitos. Dairy Queen Netflix don't need it right. now they don't really have anything good. no McDonald's I want to cancel that and. to kidos and eBay I you know what. stopping the gas station a lot. M buying energy drinks which is a bad.

idea I know make some coffee at home I. don't like coffee U make some tea at. home I know that that that is a bad. habit of buying these energy drinks. another bad habit total total overdraft. fees year so far $136 they refunded. those they refunded some of them. $102. yeah but the fact that you even met that. and yet we were choosing too and around. yeah over having money yeah $99 in. another chicken account nothing really. happens here but we got.

pizza great cuz that's what we need to. survive all right my. dude I don't want you to be a up heading. down being a up headed down the road to. be a is by breaking my rules of not. being a. up you need an emergency fund you do not. have it you're breaking rule number one. does that fit in the budget no breaking. rule number uh one and two don't hold. credit card balance oh you know you're. breaking number four uh three uh four do.

you have uh debt on a car uh yeah I owe. money on my on my Jeep what the was that. what was that. [Music]. statement well we talked about it I told. you it's like 18% what you're right okay. 18% how much is owed oh God way more. than it's worth how much is like 22 22. Grand I know it's it minimum monthly. payment. $549 it's absurd stop buying cars you.

can't afford rule number two I needed a. car though I had no car you needed a car. did not need a 20 to $30,000 car well no. I didn't and it doesn't even cost that. much the it it was it's a 2015 Jeep. Cherokee it's not worth that much okay. but the interest no it's not I have a 29. jeap choke it's worth like 15 or 12 MH. and cuz the interest. rate I did I knew and and the thing is. the refinancing isn't what's going to. save you though cuz the balance is still. what's Ed yeah yeah but and at the time. I knew I was getting screwed but he he.

put me in that position on purpose live. someplace you can actually afford what's. your rent oh it's cheap it's only 1100. well that is good well if you add in the. um utilities and stuff that are included. I pay 1320 now so it's not bad it's a. duplex got a garage it's it's it's a. it's a cool. place well you already broke number. seven in the past it's about the way to. go to school. yeah bum bum that's a Netflix.

sound Frank Underwood Before He Touched. boys uh was a great show. and that's rule number 10 you're. breaking it you don't need the Netflix. subscription not right now no I actually. I actually meant to cancel that I think. I just forgot about it Ru number nine. how to not die on the Walmart floor how. to do investing correctly pulling from. your 401k that's not doly so you're. breaking almost every rule in the how to. not be a list so you break you continue. breaking those rules you end up in the. up Zone I don't want you to do that your.

life's too important your kids lives are. too important they. are yeah housing is a lot it's about 30%. of your income but that's right on the. cusp of being okay to not okay. Transportation a good amount gas and car. insurance and all that stuff and then. obviously the car. loan going out to um getting your. necessary food groceries 8.5% but going. out to eat was almost 4%. % so I think spend that much but yeah.

well you are that's the important part. of this conversation is cuz now you know. now you got to make the adult decisions. uh that gym you know the birthday thing. and some other things you went to but. then also Amazon and Walmart uh Walmart. might be groceries yeah I order. Walmart's groceries Walmart's groceries. okay so we put that in the unknown. shopping because you never know Walmart. you can buy anything so groceries is. probably higher yeah that's much easier. to curbside is my friend those. it felt like they were adding up a 30. but it was only 1.6% of your spending.

which one uh the medical the uh uh. counseling and uh 3% went to. subscriptions and miscellaneous bull was. uh you know eBay and Microsoft thing and. gas station Taquito they I think they. charged me the studio thing that was. 8.3% of your spending 8.3% of your. spending now fun fact add this all. together 3.6% of your spending went. towards paying towards your debt totally. when we offset what you spent there. adding to your debt and it feels like.

50% of my income I feel like all my. money is going towards these debts well. that's what it you're choosing to. instead I can do better now when we. calculate it m we do do uh we offset it. by the amount that you added to your. debt as well because we don't consider. putting money towards your debt if. you've added money towards it so towards. of the progress you made towards your. debt 3.6% of your spend. it was very bad very bad that is that is. bad did not realize that counseling.

$12.24 a month rent and utilities $1,320. a month does that include internet no. how much for internet uh. $67 how much for car insurance oh gosh. State Farm uh 130. $130 130 yeah renters insurance that's. included in the rent.

okay gas we saw. $243 and you said you don't drive well. you know what certain months I did. probably drive a little bit more because. we went to the lake on the weekend so we. went to we put up a kitty pool in the. backyard I actually I did I did do that. I'll do. 200. okay okay. [Music]. groceries so with groceries we found we.

can do a human adult 2,500 calories a. day not including the snacks that we. also threw in from HB meal prepping 250. bucks a month for one adult now let's. throw in the two kids I'm going to put. you at 300 I'm going to throw in the two. kids going to call. that 750 how does that. feel. $750 a month for groceries. that's a. lot uh.

three seven 700 she well I'm giving I'm. giving you I don't think so I don't know. I'm giving you 300 I'm just trying to. figure out what's your budget I'm giving. you 300 I'm giving them 200. each um I try to I try to make it on. like 400 bucks a month yeah but you eat. out a lot so uh what I'm actually going. to do you're right that is a lot so if. we're meal prepping together all this. stuff. you most people that come on the show. are single and don't have kids so we. don't have to do this part of the math.

much so um you can do without the eating. out honestly uh yeah I'm not putting in. that in your budget no no not even close. not for a. second four five let's call it let's. call it 600. bucks I you say if you can bring it. lower while being healthy absolutely go. for it toilet paper this is anything in. order to survive this is contributing. things for school getting pencils this. is the extra what you you need to. survive on a monthly basis fund I call. it the toilet paper fund it's 150.

bucks oh already had your counseling. okay phone. bill um how much is my cell Bill my cell. bill is. like like 50 some bucks well my mom is. on there but she pays me back okay so. like uh alog together when she doesn't. run up the bill it's like like. 120 typical bill is like 121 she pays. back yeah she pays back I'm giving you. 55 yeah okay again this is a rough. estimate budget you have to get your.

exact numbers and plug it into the to. the uh program that we'll give you that. comes with the class uh okay 4450 for. life insurance yeah for that. one and Jim is. 3681 anything else you need to. survive while you're thinking think. about it for a second I'm going to add. up your minute minimum monthly debt.

payments it's nothing like I can't. really think of that I have to. have you're damn right because your debt. is going to be what kills you your. debt monthly payments is. $1,163. 81 yeah it's rough.

and I know that the cycle is bad because. I'm robbing Peter to PayPal you know I'm. like okay well I'm making my credit card. payments on time which looks good for me. but then I'm turning around and spending. it which not all all the cards but it's. it it doesn't matter it's just not how. many hours a week are you working. 40. the unfortunate truth is yes you are you. are doing that and the reason is because.

now with the debt minimum monthly. payments and where they've gotten to if. you didn't have debt minum monthly. payments by the way you'd have like an. extra have an extra thousand bucks a. month and that is where I'm trying to. get to because I I that I have realized. I have realized God if I didn't have all. these minimum payments how much money. would I have and what could I do with it. and so with them you need a minimum to. survive minimum to survive. 3,889. 3,661 is what hits the account on a.

minimum monthly basis so before we know. it we're not only not making progress on. debt but the debts all going to become. maxed out we're going to be forced to. open a new c one then a new c one then. new c one I don't I don't want to go. down that road I really don't. so and this becomes hard because we have. kids to take care of we're a single mom. there's no family here right well my. sister's up she's up here actually okay. so there's no family there to babysit no. so you work 9 to 5 uh 7 to 3:30. typically cuz so in order to pick up the.

kids yeah you get to pick your hours. yeah my my schedule's really flexible as. long as I work 40 hours I kind of start. work more than that no it's work from. home. MH okay so it's going to be harder cuz. work from home jobs are harder to get. they really. are oh no I just thought of. the all right reality situations this is. going to be a pain in the I hate this. you're not going to want to do it. especially since you haven't listened to. this channel this is going to suck you.

have to work you have to work 40 hours a. week right for this job MH cool love it. great that's awesome doesn't have to. okay kids are at school you're going. somewhere and you're. working while they're at school then you. come. home cook them dinner help them with. homework let them you know settle down. do some fun things on their own and. you're starting to work your your job. that you already have now then you take.

a break put them to bed and then you're. working late into the night I would love. that actually and I had been trying to. find like another side gig that I could. work at night at least for another like. four hours work from home yeah well I'm. saying I'm saying yes work from home. jobs are hard to land but they're very. competitive right. now you're probably gonna have to go. work somewhere during the day while. they're off of school and then do your. work from home job later in the evening. through through early parts of the night.

and I hate it it sucks you're gonna be. like I'm not actually supposed to that. well you really can't be because you. want to know what the alternative is. bankruptcy and I don't want you to do. that if I I mean if if I was able to. work that out with my job I don't know. if they're going to let me work evenings. because you have to work within a. certain time frame well you didn't say. that um what are the time. frames they want you to start before 9: and then you say. you know sorry if I wasn't clear it's. very flexible but I don't think they're. going to let me work at night.

otherwise I mean if I could you're not. making insignificant amount of money. so. um how how to go get a job I don't know. what local resources are available there. for after school programs I don't know. uh I certainly don't you know if we get. into child care that can cost thousands. of dollars um so you'd have to work like. crazy to even afford. that if there's local resources that.

they uh after 3:30 whenever they're out. of school that they're able to go to a. place till like 6 that would be great um. the only issue with that right now is. that a lot of places they don't want. prek they want them to be a certain age. well okay one's approaching it the. other but I am still looking for some. kind even if it's like 15 bucks an hour. data entry just at night you know that I.

can do from home that would be so. perfect if I could do that that's what. I'm I'm like I'm still I'm still I'm. still looking because I'm like you know. what well then if you're not working. this extra job MH you're after your 40. hours a week you're spending another 40. hours a week right now applying to jobs. it's not an option it's not applying for. a few weeks it's not applying for a few. day it's a full-time job you're applying. for jobs and you need to get something I. don't even care if it's 725 or whatever. the minimum wage is that I know it sucks. but you need to make more money now that.

sucks that sucks doesn't it but guess. what uh your minimum in order to survive. is $200 more than you bring home so it's. really not an option I need you to work. and right now if if there's truly no. things available there might be. something prek have you have you gone. have you gone through every option yeah. cuz when I got here I'm going to take. your I'm going to take your word I was. really when I got here I was really. stressed out by myself with the kids. 24/7 I'm like I need to y'all need to go. somewhere I'm going to take your word.

for it then so then what you have to do. is yes the work from home data entry. something lowlevel something that might. not even hit 15 I don't know you're. going to take anything and everything. you can get I am not opposed to that at. all you can't be because you're going. towards. bankruptcy I unfortunately and I really. hate this you just don't have a. choice except for bankruptcy no I'm not. doing that or moving to where family is. so that they can babysit you're working. your job and then they're babysitting. while you're out.

working and from your reaction looks. like that's not an option so that leaves. uses I'm not opposed to working I have. I've been I've had jobs since I was 13 I. am not opposed to work and I've worked. over time I have worked three jobs. before so I not I don't sleep anyway so. I am not opposed to working like another. part-time job this is scary to be very. clear this is scary you can't afford to. survive right now saving that moneyy I. love when my money is making more money.

in the Sofi high yield savings account I. use has 4.6% interest on that moneyy. it's the savings account I personally. use for my tax money that I set aside. and other money that I just want to be. building while it's just sitting there. and you can get bonuses by signing up. all the way up to $250 by using my. affiliate Link in the description below. and it's not just cuz they're my. affiliate I personally use them they're. great I've had a great experience with. them so far and I only recommend those. who I like working with and who I like. using so if you have money sitting in. savings have that money make some more.

money and use that high yield savings. account link in the description below. 4.6% and bonuses all the way up to $250. and your futures on the line your kids. Futures online so I need that to be the. fire under to go apply for other jobs. like it's a full-time job and accept the. first one that comes your way even if. it's not perfect and then if you don't. like it you're applying to other jobs. like it's another full-time job while. you're doing that job and your main job. it's it becomes hard it's all easier. said than done unfortunately you just. don't have a choice yeah so if you care.

about your future if you care about your. child children's future you're going. you're bringing in an. extra minimum 1,500 bucks a month after. taxes minimum and then let's let's just. say for the sake of it that you do that. right. [Music]. M and I'm going to do rough math here. the our uh payoff debt calculator within. the budgeting uh thing that we made that. we're going to give you access to is. going to provide you a more accurate.

answer. but actually I should just pulled that. up but we're already. here so say you bring in an extra let's. actually call it you have to bring in an. extra minimum. $1,700 a month after taxes so you can. make up the $200 you lost and uh put. $1,500 towards thatt okay make sure. everything's okay with this. oh well I mean like you said 6, uh 500. might be come in in plus tax return.

either way you have. $3,760 a terrible death debt so and. that'll just that'll help the progress a. little so I would definitely throw that. at it but let's just say it doesn't even. happen go make an extra $1,700 a month. after taxes and it still takes 20 months. to pay off minimal not having any paid. for fund not a single Cent for you or. your kids which really sucks yeah so. 30,000. 30,500 minus that by let's call it after.

tax returns in this bonus 8,500 okay now. minus that divide that by 1,500 extra. that takes still a year and three months. to pay off see that I like a year and. three months I can do that a year and. three months a sacrifice is not that bad. for your future and your children's fut. it's not it's not it's not that means. the money has to come in and the tax. return has to at least be 2,000 I don't. know oh it'll be more than that then. your deductions are oh well I mean.

you're getting your child children got. two kids so um I mean it it I with the. money that I'm. expecting I because when I added up my. actual debt not not including the car. I'm probably looking at like around 15. grand I. think yeah but your car is included well. well I know I'm still going to have to. make that car payment right now I'm the. like the first thing on my list is. getting all this the Lo credit cards.

it'll free up more money it free up a. lot more money it'll take some minimum. Mony payments away yes and that but the. car is half of your minimum monthy. payments uh well yeah yeah well I didn't. when I included my debt I didn't include. that cuz I'm like well I don't have 22. Grand to pay that off right now what do. you have in. student that's not really important. because it they're not in repayment. right now that well how much I don't. want to say how much it's a lot oh come. on it's a lot it's a whole whole lot we. just put your entire Financial life on.

display you can tell us the student. loans god um I'll just say it's more. than. 200,000 for undergrad and master's. degree I. know I went to very expensive. school and again if I could go back in. time what a Twist if I could go back in. time I would have to a much cheaper. School uh yeah is that all federal uh.

yeah is it yeah I think none of it's. private. um no I don't think so are you going to. try to use the counseling into something. that might go towards public student. loan forgiveness yes that might well I'm. in a program right now that is that is. my option so um the program I'm in now. is once you make your minimum payments. on know it's a long time and it's income. based so it's not when it does go into. repayment yeah so once it goes into.

repayment it won't be it's not that much. because I was I was paying on it before. and then it got suspended you know after. Co or whatever you got to be very. careful with it you can't up once once. and it's no I I paid on time every. single month um so what happens if the. administration at the time by the time. you hit it whoever regardless of. politics whatever what if the. administration at the time the. Department of Education under them is. not going about for a bunch of student. loans well kind of like they have even. if they. well I mean that would be stupid for.

them to do because the average person. they well they're they're never going to. get their money and they know that most. average person they give you like 25. years to pay it off right so if and. they're add if they're adding in all. this interest and the average person can. barely make the monthly payments they. cannot forget it all they want to but. you're not going to get blood from a. stone you can take people to court you. can well you know what they would do. they attach your wages if they yes they. garnish your wages they get their money.

yeah but that they take it before you. get it true but it's a long I've never. known anyone that's ever happened to. really no where they for student loans. I've I've never known that to happen to. anyone wage garnishing um if you just. choose not to pay no I'm not saying. you're choosing not to pay you're in a. program right now I'm not saying that uh. and if you just well you're right you. just go into default and you don't. contact them you don't try to work. anything out then that that's what they. would probably do but now public student.

loan forgiveness that's the one with the. kind of bad track record the statistics. are kind of flawed because a lot of the. time people were applying for that. program even though they actually didn't. qualify for it at all so it skews the. percentage of people who have been. successful either way it still it still. wasn't great uh but the current. Administration has picked up a lot of. that and has forgiven a lot more of it. than past administrations but again what. if a future Administration doesn't I. don't know that's if you go public for. um now they have the save plan the save. plan but again dude with the student.

loan student loans is such a touchy. subject that it is each department of. education just approaches it in a. different way and. like it's not a political thing it's. just like what if you get someone that. like they just decide hey this is all. this is all student loans are being. forgiven you owe it well they would. honestly they would end up screwing. themselves because now you're putting. more you're putting more people into. uh homelessness you you start taking. their wages no I'm not saying it's good. I'm not saying it's good what if they.

just do it because that's just their. Viewpoint I. mean think about you I'm just thinking. about you no and I I agree with you I'm. not disagreeing with you I mean I'm that. that's a definitely a possibility but. either way over 200,000 that's wild it's. trade school and certifications My. Friends Community College all day I. would have I would in in hindsight had I. realized that this was the situation I. was going to be in I wouldn't have. worried about status and you. know trying to whatever status I would.

have definitely uh piece of paper would. have well you have also have to. understand part of it was a little bit. cultural where you know it's like oh my. daughter is this or my son is that and. having to get that education I would. have and what school are they going to. oh trust me I get I would have have just. gone to Community College you come from. an immigrant family you come from people. who have been highly educated the.

addiction in just our culture alone in. the United States of uh you know our. kids should go to the best school all. this stuff and borrow whatever it takes. I get it doesn't mean it's not dumb as. yeah but you but by the time you realize. that you're already so let's say you. have 26 years if you want to retire mid. 70s $2,000 in retirement. that's. uh you can get to a million bucks for. retirement which it's it's it's it's not.

going to be like a luxurious retirement. with that but you can get there by doing. a th000 bucks a month th000 bucks a. month into workplace contributions. obviously takes advantage of tax. advantage accounts Roth IRA are great. there's also brokerages you can throw. things into they're not as tax. advantaged I mean there's even like. automated investing kind of like acorns. and Vora where they give you a 1% match. so I mean there's so many options. there's so many options. but th000 bucks a month after this is. kind of the minimum you need to throw.

towards retirement after this which. means you might I hope you get to that. higher pay income sooner than later but. you're going to have to start I'm going. to have to be really disciplined on my. you're going to budget hard you're going. to go through this thing the program. we're going to set you up with but. you're also just going to be working. your off for honestly the next decade. two and a half decades I believe it but. it's worth it yeah it's worth it I. promise it's it's just for your kids. alone it's worth it it is I agree you. have any final thoughts any questions um. no I mean I I I'm actually very grateful.

for this because this is a hard. conversation that needed to be had with. somebody and I needed to have it and I. just you know didn't know you know. didn't know where to turn or what to do. and I thought I just kept thinking for. so long okay I need to have some hard. conversations with somebody who's going. to be like look okay this is what your. finan Outlook is and this is what you. need to do in order to Upright your. situation you know so I am very grateful.

to get the information and um. I I know it's it sounds like bull. because when you look at my spending. you're like uh yeah but I actually. really really determined to not be in. this situation and to change my spending. habits I have two little faces that I. see every single day and they mo they. motivate me to do to do better you know. so I mean it's pretty obvious Hammer.

Financial score is z out of 10 just as. yeah I predicted so that's what it is. make sure to check out all the resources. Linked In the description below they are. what I use or would use in specific. situations thanks to all of our patreon. producers for making this episode. possible if you want to participate in. an episode of financial audit and you're. able to make it to Austin Texas please. fill out an application in the survey. Linked In the description below you can. also send a link to your friends or. family who you think might be good to be. on the show if you have any questions. you can email casting cop hammer.com.