Spending Every Penny At The Bars | Financial Audit

Hi, I'm Corbin. I'm 26 and based in. Austin, Texas and this is financial. audit. What do you do for a living here. in Austin? Uh I work for the uh state of. Texas. Oh, what do you do? Uh I do uh. some some stuff working with the the. House of Representatives. Okay. Yeah. Could have sworn it was. H-E-B. No. No, it's not H-E-B. Okay. Do you have like an account with them or. something? I do, yes. Did you used to work for them? No. They. have a uh a debit card that had a. high-yield Yeah, they they had a.

high-yield uh savings account and 5%. cash back if you buy from them. Oh, very. Not not trying to give them an ad, but. you know. Yeah. Yeah. What is What's. your income now? Uh my income now is. about uh 55,000 a year. Okay. How do you. feel living in Austin 55,000 a year? Uh. it's expensive. It's It's harder or it. has gotten harder. What's your living. situation? Uh I'm married, so I It's me. and my wife living together. Oh, it's a Okay. So, it's a married.

income. What's the household income? Household income is about double that. I. would say in about 90,000. Okay. So, a little under double that. Mhm. So, okay. Very good. Now, your financial. situation. Give us just a brief. overview. What are we looking at? What. is your life financially? Yeah, so. really overall, I feel like my. day-to-day financial situation is is. pretty good. I don't feel like I have. too many outstanding debts, outstanding. I don't I don't spend a ton of stuff on.

on random stuff. I'm kind of more. ready to look more into investing and. and I don't have any investments. Uh. Well, I have a retirement. Yeah, yeah, I saw that. Yeah. But that's the only investment that I. have other than I guess savings account, which really I don't think counts. Where do you think your money's going if. not investing? It's just. Do you mean What do you mean? Like why are you not investing? If you. want to invest, why is that not. happening? Um, it's it's trying to find it it.

honestly trying to understand it and. just trying to figure out what what that. means for me and and how much I can. afford to put aside and and that kind of. thing. Uh, I generally I don't I. wouldn't say I go. I pretty much max out my budget every. month. I don't I don't save a whole lot. except for in in certain situations. go then? Um, food, housing, um, the you know, movies, the. occasional, um, vacation, stuff like.

that. And it any extra money I just put. into savings. your wife? Um, it's a similar situation. We don't. buy a whole lot of extra stuff. So, any. extra money that we get is just it just. goes into a savings account. Are you. guys'. full financial situation intertwined or. are you all separate? Uh, it is it is. intertwined, yeah. It's we right right. after we got married, we consolidated. everything and and. I just wanted to take a brief moment to.

give a shout-out to a company that helps. support this channel, Monzo. Monzo is a. money management app that helps you see, save, and spend your money with. confidence. So, head to the description. below to learn more or you can sign up. for free by going to monzo.com/us/caleb, which again is linked in the description. below. Thank you. So, is is most of what. I'm going to look at both of you. together then? Yes, that's correct. Oh, okay. Okay, cool. There shouldn't be anything I don't. think that she has that. that you don't have. Gotcha. Okay. So,

give yourself a score zero out of 10. where you think you are financially then. let's see how you stack up at the end. Financially, I would say I give myself. about a a seven and a half. That is. quite optimistic. But, okay. to be optimistic. Optimistic is good. Now, do you think you should be focusing. on investing when you have $36,800.91. in debt? Uh. maybe not. Okay. What's your idea around debt? Um my idea around debt is generally um.

kind of pay it off when you can. Pay it. off. how. I guess kind of month to month. Pay the. pay what you need to and and. pay it off uh when when you can. Oh, okay. So, minimum monthly payments and. then when you have a little extra pay it. off. That's where you are? Mhm. Okay. Have you put anything extra. towards these? Uh no. They're all fairly. recent debts, I would think. So, um yeah. So, I haven't I hadn't put. anything extra towards them.

Well, we have right here the first one. So, this is an installment loan of. $16,317. Mhm. What's this for? Uh it's for a car. Ah, what is the car? Um. one of them is That one's probably the. uh That's the Prius. So, it's a Toyota. Prius, relatively new. Well, at least. it'll pretty much last. Yes. And the. minimum monthly payment for this one is. 303. Mhm.

The interest rate, 5%. Mhm. For cars, I. typically like to see 3% or less. So, we're going to do minimum monthly. payments until paid off because if you. take that and account the 5% plus. depreciation, typically in cars, you. know, the car market's been a little. funky for a few years and it's headed. towards the right direction. It's not. there yet, but and with then maintenance. as well, it's like, okay, but add that. into the mathematical equation when it. comes to the. uh the overall. interest rate, depreciation, and. uh maintenance,

you know, I'm not thrilled with that. rate, but I'm also not like screaming. dying. Yeah. And you just got this? Uh about a year. ago. About a year ago. Okay. What what. year is the car? Uh 2020. Okay. And what is the loan length? Loan. length, I believe was 72 months. Why? That's That's That's what they gave me. That's. No, I mean you could. No, I mean that's probably what they. offered because I mean it makes them. more money over time. So that's probably.

the one they wanted you to get into and. then they convinced you to that. You. were like, "No, I want to do a 3-year. loan, right?". I I mean ideally I would have loved a. lesser loan, but in order to get the. monthly payments to where I was. comfortable with at at the time. Yeah, but you know you're paying more long, right? Yes. I do know that, yeah. And. you're okay with that? I guess, yeah. So what monthly payment were you. uncomfortable with? Um I didn't want to. go too much above um. the 300 was pretty much where I was.

comfortable with. I didn't definitely. didn't want to go to 350 or 4. That felt. too in my my rough calculations of what. I what I could afford at the time, I. think that was that's what I was. comfortable with. Well, especially since you have another. one. Right. That's That's more recent. That's also a car. Okay, so a car for both of you. Yes, yes. What is this car? That is a. Corolla Cross Toyota. Year? 2022. Okay, $15,090.87. with a. $254.69.

That's where we get the total debt. situation. The interest rate on this. one's worse. Again, it's not like I'm. dying type, but at 6.64% we're probably. going to want to pay this one off at. that point where it's encroaching that. 7% plus depreciation plus maintenance. It's the the the money that's going. towards this. is going to perform. competitively on that number in the. market. So like we want to get rid of. this to minimize our risk.

I'll go from there. But again, these. debts aren't something that I'm like. freaking out about going crazy. Well, let me guess, 72 months? Or whatever it. is, 74? There thereabouts. When did you get this one? Uh that one. was this year in January. So, why? Why'd. you guys get new cars? Uh, my the the. one that we replaced the with the Prius. was uh totaled and this next one that. car was 15 years old and just crapped. out. Yeah. How was it totaled? Uh, the first one was, yeah. No, why? Oh, why? Oh, I got rear-ended. Okay. And.

then the insurance paid off the. remainder of. They paid off the remainder of that. lease. And that was it? And yeah, and we. I was left with about um 10,000. And you put 10,000 towards that? Mhm. Okay. Well, that's good. That explains. the uh balance not being crazy high. Okay. So, clearly we have a debt that we want. to pay off and then one that's. questionable. Yeah. What is your rent? My rent is uh 1950 a. month. Oh.

And post-tax income for you guys as a. household has to be. thinking about. on a monthly basis $6,000? Thereabouts, yeah. Okay. So, this rent's a bit expensive for you. guys. A little bit, yeah. So, we we. don't want to go and get minimum monthly. payments that are beyond our comfort. level for the cars by having it be in 3. years paid off the car. And I understand.

that now because you're. out of the income that comes in about. $6,000 a month net 32. 5 33%. of your income goes to rent. Right. So, 30% is like the absolute max. that it should go to or should I mean. 25% is the what we should aim for as a. max, but 30% is like, all right, that's. the extreme number. And you're going. over the extreme number. Yeah. In certain places it's impossible, but. it's not impossible here. And you guys.

chose to get a $2,000 place. Yes, that's. true. Okay. Well, that's not thrilling, but. it's going to it's going to help with. the overall equation. So, we have credit. cards. You do not hold balances on this. credit card, so it looks like that's. good. Are these both of your credit. cards or are there are there some that. I'm not seeing? Uh no, that's that's all. we have. Okay. What about her? Uh. they're both joint. Oh, very good. Okay, so on here and let's let's start. collecting some math on this. We spent. $1,752.

on this credit card on a monthly basis. Again, 33% of our income is going to. rent. And we have $6,000 total. We're doing. Camp Gladiator and Chipotle and Hulu and. Odd Wood Owls and Moody's Burgers. Pet-. uh Peternal's. Electric Company Smart Hub. That's fair. Okay, we're good with that one. And Chili's and Humble Pint Brewing. Workhorse Bar, Workhorse Bar, Amazon,

Amazon, Quip, New York, Spotify, Phoebe's Diner. Heard good things about. that. Torchy's and Moving and Storage. Did you guys just move? Yes. Okay. And I will I'll be okay with that one, too. Movie Pass, I don't know if people. still use that. Camp Gladiator, DoorDash, definitely don't need that. And Blue Corn and Movie Pass and Academy. Sports Outdoor and Brewtorium. You guys. glug a lot of beverages and Hobby Lobby.

Uh. and bookshop.org as well. So, I mean, there's also a lot of gas on. here that was spent. But, in general, that was a lot of BS spending as well. Just spending you don't need to be. doing. We're going to spending $1,752. Okay, so that's one, but we have. multiple cards. So, we have an Apple. Card. next. On the Apple Card,

we spent uh. it's it's kind of hard to see on this. stupid Apple card, of course. $596.83. How do you feel about the spending so. far? We're only two accounts in and. we've spent 2,500 basically. Yeah, that the last month with moving. was probably not where I would like to. be. Well, but if you're where you'd like to. be, that place that you would like to be. should be hitting so that subscribe. button because we're trying to get to. 750,000 subscribers and thank you to. everyone who has subscribed so far. So,

okay, yep. $596. What we do here? Well, this was all bull. New York Times, Capital Grille, a vending machine, Capital Grille, Capital Grille, Capital. Grille, Precision Camera, Capital. Grille, Super Creaky Shop and Capital. Grille. Dude, Capital Okay, you're just. going there like every second of your. life and taking toll roads which you. don't necessarily need to take, but you. live in an area where I know it's easier. for you to take it, but you don't have. to. Maximum Fun Inc. Capital Grille.

Apple bills, Market at Work, Stitch Fix, it's an expensive way to do clothes, but. I they do look nice. And Jerry's Art of. Tomorrow and Capital Grille, Shocker and. Total Wine & More. Starbucks, Raising Cane's, New York. Times, Queso's Tacos, Scissors and. Scotch. Man, you guys glug glug glug. glug. To be fair, Scissors and Scotch is. a hair cutting place. Oh, well, that's good. But still, always. going to the bars and grilles and stuff.

Okay. And then we have one of the checking. accounts. We have a couple different. checking accounts. Well, actually, we. have the H-E-B thing, too. So, it's a. debit card. It's a debit card, yes. And you put in a thousand dollars. Spent 894. Spent 894, did you? Transfer out. Uh, if that's all of. it I'm not sure how that looks, but.

Hm. A lot of HEB purchases though. HEB. HEB HEB and That's all I use that for is. HEB. Well, again, then we spent Oh, no, you. transferred 500 savings. 500 savings. That's why. So, eight. 94 87 minus 500, you spent. on this now. An HEB, mostly groceries. probably, but still spent $394.87.

Okay? Now, we have two checking. accounts. And here we have a huge balance in this. regular. uh, savings, which is good. And even the. checking's pretty good. Uh, but 22,000. 718. in the savings. What kind of interest rate is this. getting? Um, that one's not as high. That's about I I believe a 2% 2 to 1/2. Dude, 4.3% at SoFi. That's what I use. Linked in my description. So, two other.

four four and above percent. Good, good, good. Then, yeah, we may as. well be getting this 22,000. So, a lot. of this is paying off things and. transferring money back and forth. Correct. Uh, we got a DoorDash. Yeah. Don't need to be doing that, but uh, that's pretty much it with this. This is. things going in and money being. transferred around. Right. And then, what is that savings. for? What are you What are you attending. intending behind it? Um, one day one day. a house is going to be what really is. the savings is going to be.

When When do you want that? Uh, within the next five years we were. hoping. Okay. Okay. Then, this everyday checking with the. Wells Fargo is pretty much nothing. That one I just kept open and I had to. pay my last landlord through Zelle. My. bank doesn't have Zelle, so I kept that. open. That's an older checking account. Yeah, that's what you did. You Zelled. out 1,735. Mhm. So, your last landlord. Okay, we won't count that towards your. spending money cuz that's just done. That's certainly not considered normal. by any means.

Then, we do have the Texas Saver. program, which I assume is your through. work. retirement. 3,631. Okay, that's very behind. I'd want you. to be there in like your first year, 2. years of working. How many years have you been working? Uh. this is my first fourth year, yeah. Yeah, no. Definitely not happy with. that. However, with what it's in, uh we. got well, 41% international is actually. quite a bit international, but and then. 24 large cap, 16 mid cap, 12% mid cap. And no, that's not investing advice for.

legal reasons. But, for me, when I do. that much in international, I don't know. in my only investment portfolio. And we. have Apple savings, 4.15 again. .15 lower than what you could get, but. that's okay. 5,000. $21.55 in there. And this is also saving. for the home, emergency fund type. Yeah, pretty much, yeah. Okay. And is this another savings? We have. three different savings? Uh yes.

Okay, so we have an additional. Uh is this high yield? Yes, that's a I. believe 4% as well. That extra .3, my dude. But, good. I'm glad an extra 2,000 21. cents in here. 500 went in. Okay. What is this? This is uh the uh the state requires you. to withhold, I believe it's 9% of your. paycheck and put it into another type of. savings account. So, there's one that's.

voluntary and there's one that's. mandatory. Um I'm not really sure what the. the it it's kind of they they make you. put in this amount of money and they. handle it, basically. I don't have any. control over that. They're handling it? Okay, so it's in like a pension? It's Yeah, it's a pension, essentially. Well, this number is making me more. happy at 18,330. Which is why I don't put as much. as much as I probably could into that. other one. Yeah. Pensions can be good. Pensions can also.

be uh. I really don't know anything about this. one at all. This is all I could find. Yeah, this is a sheet of nothing. It's not Yeah, I could this that's as. good as I could get. Okay. So, happy with the savings. So, clearly. we're doing well there. We have a debt. we we want to get rid of cuz it's. certainly not a good debt. Neither of. these debts are working for it. Okay. I explained it a few times. I'm not. going to go into great detail not to.

bore the audience and I'll I'll explain. it to you more afterwards if you would. like it, but car debt in my logic behind. it. I'm okay. relatively with car debt if it's 3 years. at 3%. and that's all, but in the context of. okay, you have $10,000 you're going to. get a $10,000 car. Oh, okay, we can get. a 3-year loan at 3%. I'm going to put. $2,000 down and invest the other 8%. Invest the other 8% or $8,000. If the.

$8,000 is then just spent on BS, well, we go and get a car loan with $2,000. down, then it's not worth it. We're. getting a higher interest rate, especially like 7% where you're at, not. worth it. Cuz the stock market on average 8% a. year. So, with maintenance and everything on that, are we really making progress in life. with that? I don't think so. Plus, when. people go get leverage on a car, you. know, $10,000 cash. Yeah, but I can take out. leverage on a car.

Since I'm putting less down, maybe I'll. just get a $15,000 car instead. So, that's why I'm kind of against it. Uh but, there are ways to do it. Have you been in Well, we have the. answer, but have you been investing that. extra money? No. Yeah. Certainly not. So, we have not. been doing all right. What else have we not been doing right? So, rent, basically 2,000. Does that. include utilities and all that? No, just Okay, what's utilities? Uh. utilities run uh Including internet? Including internet, uh run probably.

250? That doesn't sound right. Two Wait. We just moved, so I'm trying to remember. all of that. Um so, we have water, we. have gas Oh, no, not gas. We have water, electric. I think it's. It's closer to 200 with the internet. Yeah. Yeah, it'll be 200. And this is just. rent, utilities, and what you spent last.

month on the different cards, $5,000. Meaning we have $1,000 left over. Then, with all the other bills, I assume like. I mean, we we can't There's not probably. not much room to start saving for the. way you need to get for the house, having a fully funded emergency fund to. get the house, where you're trying to. retire or or we're trying to put extra. money towards the retirement, or we're. trying to put extra money towards the. debt. We can't do that if this We. definitely cannot do it, not even close, if we are doing what you did, which was. $1,334.09. of eating out. In a month. In a month.

That's what you spent. 1,000. 334. I haven't been upset until this. part of the conversation. This whole. conversation has been going well so far, but 22.2%. of your entire income was spent eating. out when we have a 7% debt on a car, when we're lagging in retirement outside. of the pension. We're trying to. uh save up to buy a house, but. uh what you have saved is pretty much an.

emergency fund. We have nothing actually. saved for a house, really, at this. point. Mhm. So, that's kind of upsetting. That should be. something you. you should be upset about. $35 of subscriptions is not crazy. $200. of gas also not crazy. Um. lost close to $200 in interest across. these two debts. Minimum monthly payments for the debts. are. So again, you got $1,000 left over, but. now an extra $674.

and 5 cents is sucked away in minimum. monthly payments. $200 for gas. Now we have what? An extra $100 left. over in the way you guys were living? Yeah. Can't do that. Can't live life on. $100. Or can't do put things towards progress. All your bills together, you know, thousands. Big purchases, the Ailes and the Camp.

Gladiator and. Huh, $100 at Chili's. Chili's of all. places. Chili's great. Okay, fantastic. You haul but that's fair. Blue Corn Harvest and Brewatorium. It's all glug glugs. Glug glug glug glug. glug. Scissors and Scotch. Well, that's. okay. That's a haircut. $7.65 bucks. Especially if that's included tip. Yes. Then that's okay. So gas and then utilities and rent.

2,000 for rent. 200 for utilities. 674 for the debt. Gas 200. Going to give you as a couple now trying. to actually make progress in life $400. for groceries a month. Cuz we're we're cutting it back. Right. Yeah, doing cheap. Healthy but cheap. Yes. And then $150 for. makeup and soap and both like that that.

you need to kind of survive on toilet. paper, but like also, you know, you can. cut back where you can, but it's a. toilet paper fund, 150 bucks. Healthcare, you get state. Well, the. wife? Uh same, through work in the city. Very cool. And any other expenses? Cuz we're. cutting the. uh almost 40 bucks of subscriptions you. have, too. Mhm. No longer exists. Sorry. Log into. someone else's account. Yeah, they're. cutting down on that crap, though.

Um. what else? What else you have? Minimum monthly? Mhm. You mean payments and stuff? Yeah, just. things you have to take care of on a. monthly basis that are reoccurring. charges that you can think of in your. life. Um other than the. Car insurances? Car insurance, yes. for both? Um I believe it's 200 total for both. It's actually not crazy, but again, with. the way you were living, Mhm. now you guys are in the red.

And in that toilet paper fund, there's. like haircuts as well. Yeah. Okay, anything else? I don't know. Other than the. subscriptions, I don't have any other. sort of monthly recurring things and. food and whatnot. Mhm. The subscriptions. are dead. Dead. Congratulations. Your minimum monthly. budget in order to survive, and of. course, half of this is rent because your rent's. crazy. Then a little big chunk is dead. as well. It's almost a third. Okay. Uh.

$3,824. That's your budget. That's your survival. budget. Mhm. What I'm going to do in your situation, you're not going to like me. You're not going to like me at all, dude. But I don't care because we're going to. get you to a better place, and I would. rather you be in a better place than. like me. What is in savings across the different. savings accounts and the checking. account and on the checking account?

It is. 37,789. Well, we've done that. We've made. progress. Going a little wild now with. some of our spending. Sure. Lifestyle inflation perhaps. From time to time. From time to time and. time to time seems to always be. happening. But 37,789, that's fantastic. The interesting part is you have to get. your wife on board and this I'm very. curious about how that conversation's. going to go. Cuz we're going to pull out.

uh $15,090. immediately. Mhm. and pay off that second car at the. 7% interest rate. After that's gone, it's dead. No longer exists. The debt's. gone. That's fantastic. That's great. It's incredible. You're driving that car. around without a worry in the world. Right. And if it does break and the insurance. covers it, you just use that money to go. uh you know, if it totals, you use that. money to go get another car of the same. value. Mhm. Cool. Now, again, that second car or.

that the first car we talked about, that's what I'm questioning at that 5%. interest. With depreciation everything, just the math working out on it, no, it doesn't work. It doesn't work. But do we want to put everything towards. it? I don't know. What I might do in that situation cuz. you killed half your minimum monthly. payments, Yep. I might. to turn this into a 3-year loan, double from 303 to $606.

a month. End of that 5%. What do you think about. that? How do you feel about that? That could That could be doable. Kind. It'll be the same amount of the payments. you have now. Right. Cuz but you paid. off one and then you're just doubling. the other. Yeah, that that that feels pretty good. Okay, so I think you do that until it's. paid off in like. 2 to 3 years. Okay. Uh. uh uh. this is going to be conversations in. comment section for this one and it's. it's valid, but it's. like that 5% is just I'm just really.

trying to do what fits best for your. overall situation. What do you think. about the wife and the pulling out. $15,090? Um, I don't think she'd be that opposed. to that. better not cuz the math doesn't work. You need to do this. No, yeah. The we've been trying to. figure out better ways to. to get those payments down. Yeah, for. sure. better interest rates or something, but. yeah. So, 37,000. 789 minus. minus that $15,090.

now leaves you with 22,699. and the minimum for you to survive is. the same cuz you've doubled your minimum. monthly payment. Uh, we're going to say 3,900 is what's. needed to survive now. So, the minimum monthly payment's just a. little more. cuz you're doubling. At the 3,900. turn that into a 6-month emergency fund. is 23,400, which is great cuz you make $6,000. You have $2,100 left over in this.

budget. Mhm. For 1 month, you save up and boom, you have a fully funded emergency fund. of $23,400. That's great. That's what's. needed for you to survive. That's. fantastic. Okay. Does she also have a pension through the. city? Um, I believe so. Okay, cuz I'm curious what your. retirements look like together cuz. that's. it's important. Like, okay, your. pension's okay so far. I mean, it's on the right track.

Your retirement outside of it not great, but. I'm curious what hers is like because if. you are combined and then that's all we. have. is just your pension, I don't know. Okay, but you have a fully funded. emergency fund and you have an extra. What I'm going to do at this point. What's crazy is. This is what's going to hold you back. And this is where if you wanted to pay. off that other car early, you could. You don't have to, but it starts helping.

because of the $6,000 that comes in. Your needs are 63% of your income. They. should be maxed, capped. at. at 50% so. I'd keep that budget relatively similar, but what you can then do with the extra. money. put 20%. 20% is minimum what's being saved,

what's being invested. Extra 20%. Then I will allow you to put 17% of that. $6,000 that comes in on a monthly basis. 17% you can put towards fun. Eating out and stuff like that. I don't think 17% is going to cover the. amount of money you're spending now. You're going to have to cut it in half. what it is now, if not a little more. Yeah, you can spend about a thousand. bucks. About a thousand bucks. So, of the 20%. then that.

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career without a degree or previous. experience. And make sure to use the. code hammer50 to get $50 off on the full. course and all of this is linked in the. description below. Thank you again to. Course Careers for sponsoring this. episode. 1,200 1,200 That's both of you maxing. out your Roth IRAs every year which you. should. Mhm. Max out your Roth IRAs. every year. Then there's a little left. over. Cuz I want you to max out your Roth IRAs. every year before you start saving for a. home. But there's not much left over after.

that. It's only like extra 50 75 dollars. a month in the overall budget. And you. know, you're never going to use your. emergency fund to get a home. That's not. going to happen. And that'll put you in. a dangerous place. Right. So we need to find a way to start saving. for the home. Obviously pay increases as. the years come while not increasing our. needs is going to help. If you can move. to a cheaper place for a couple years, that's going to help. If you can have a. place that's 1,500 bucks a month which I. know for a fact you can, two bedroom, it'll just be okay, basic. Yeah. You. know, it won't be bad but it won't be.

super nice either. That mean that gives. you then you have like $600 a month to. put towards things. And you know, that's. extra. $7,200 a year. So we could get a solid. 10% down payment in a few years. We. could get a solid 20% down payment in. like 8 years. Something like that. You. could go 10% down for the first home and. then try to. uh. put into a a total 20% as soon as you. can. But really. I know that house is a very important.

goal. What's clear right now. is you take the money out, you pay off. the the car that's higher interest, then. you double the payment on the first car, then you save up a fully funded. emergency fund, which should only take. an extra like $1,000 to do, which you. can do. And then from there, you do. What was it like? 14% of your Was it 14 or 17% of your. income towards fun? Um I'm going to say. it was 17. Okay, 17. And then 20% is going to. investing across the board, which is. both of you maxing out your Roth IRAs, then a little extra being set aside for.

home. The only way to get to the goal you're. going to want is then cutting your fun. down, putting that money aside, and then when your rent is up in a year. from now, or however long you sign the lease for, getting a cheaper place, and increasing. your income at the same time through. just pay raises while not inflating your. lifestyle around that. Right. That Those are the the ways to. get to the goals that you're trying to. achieve. Mhm. It's going to be I think it's going to. be pretty difficult to get a home in a.

few years. Okay. If you want to do this. right. Right. If you want to do this. where you're set up in the future. That's okay. What? You're 26. We'll get. you guys in a home comfortably if you do. what I said by like 32. How old is she? Uh same age. Okay, 32. That's fine for. home ownership. Yeah. You don't need to rush it by any. means, right? I mean, I know you want. it, but. Sure, yeah. It'd be great, but we don't. need to. Another way to get the ball. rolling quicker is I mean, you could.

fully pay off both cars right now, and. then go aggressively and save up the. fully funded emergency fund over the. course of like six, seven, eight months. Just everything not having any ounce of. fun that costs money unless, you know, it's only free fun. Mhm. Then you have. the fully funded emergency fund. Then. you have an extra $600 a month you can. start saving towards a home cuz you're. getting rid of some minimum monthly. payments. That might be an option that. helps get the ball rolling quicker. I'm. trying to do the math option for what. makes sense with money being put certain.

places. But, that might get the ball rolling. quicker in a way where you see. movement towards the goals you want to. hit. Yeah. So, maybe pay off both call cars. right now, but I won't be upset if you. definitely pay off the 7% one. Right. And then double the payment, make it a. 3-year loan for the second. Okay. It's difficult. People have. conversations about it. Let us know your. opinion on that. But, I'm going to be hard work to get to your.

goal. You can do it. And you guys will. retire millionaires if you follow what I. said. You start maxing out your Roth IRAs now, both of you 26. I mean, if you just do that and the. limits never increase, let's see. Just. for an example, and let's just say it's invested in the. general stock market 8% a year, and you want to. retire at 60. Mhm. So, if you both max out your Roth IRAs. every year, and this is without the. limits ever being increased, and this.

was to rise with inflation, uh. it. 35 years, retiring by 60, both maxing. out Roth IRA, average 8%, which is what the stock. market has done on average, 2.2 million. dollars or. 1.1 after what inflation feels like, or. that's what it would feel like after. inflation in today's money. Yeah. So, that's good. And that's just your. Roth IRA, and then whatever her. retirement situation looks like with. work, and then your pension. I mean, that's fantastic. You're going to retire.

multi-millionaires. That's if you follow. the plan I say and you invest that. amount, and you cut back on other things. to hit the other goals you're trying to. do, but I don't know. You guys went insane and ate out. almost 20% of your No, over 20% of your. income. It's like 23%, right? Right. It's crazy. You can't do that for the rest of your. life. No. So, what are you going to do? Why Why. did you guys eat out so much? What was. happening there? I I mean, I can I kind. of partially blame it on moving. You. know, it's hard to.

keep a fridge stocked and you pay I paid. family and friends for moving in food. instead of. money money. I didn't hire a. maybe. Okay. Well, what do you think? Cuz now. this plan that I said and the plan that. we will have to put in motion for you to. make you know, end up in a really good. place in life. Requires. both of you to be on the same page. What do you think about that? I I think.

that that could work. Yeah, I think we. can be on the same page for sure. Well, you know her the best better than. anyone. What do you think she's going to. say to this? I think she'll agree. Honestly. Okay. So, is this exactly what you're going to. do? This is what I'm going to do. It is? Okay. Okay. Cool, then we'll do a. checkup. That car better be gone and. then determine what you want to do for. that other car. And we should have a fully funded. emergency fund pretty soon by the next. time we time we see by the next time we. see each other, but.

don't let us down. You're in a position. where you can do so many good things. You just have to buckle down and. actually do it now. Got you. Any final thoughts? That's it. For Corbin, he and his wife actually. have a really good opportunity to live. an amazing life financially speaking. Uh they just got to buckle down, stop. getting those glugs all the time and you. know, start investing and doing some. things. For right now, Hammer Financial. Score spending within a budget has to be. three out of 10 cuz that's 22% going out. to eat. Come on. What what are we doing. here? Especially when we have a 70% debt.

on a vehicle that's going down in value. Come on. Debt, nothing crazy as we've. seen by any means. Three out of 10 cuz. it's still not good by any means either. Retirement. Uh the pension good. What do you have. set aside? Not so good. Four out of 10. And I think I'm being a little generous. there maybe. Emergency fund, 10 out of. 10. It's fully saved. Obviously some of. it's going to go to a car, but right now. it's fully saved. So, that's good. I'm. glad they're able to do that. And real. estate, that's going to be about 6 years. down the road, zero out of 10. Hammer.

Finance score right now for them as a. couple, four out of 10. Check out the. resources I have linked in the. description below for high-yield. savings, getting a free $5 when you sign. up for Acorns. There's a variety of. things that I personally use or would. use in specific situations, and I have. them linked down there as affiliates. Don't forget to follow my Instagram and. Twitter. Thanks.