When A Traditional Family Costs You Thousands | Financial Audit

hi my name is Wendy I'm 27 years old. based out of Richmond Texas and this is. financial audit what do you do in. Richmond for a living um I'm a brand. marketing associate for a kitchen wear. and Cutlery brand and they're actually. based out of Georgetown so that's really. like the Georgetown near. here an Austin suburb very cool oh say. you come here a lot good so well that. explains one of the restaurants I saw. that is kind of near there all right all. right so how much do you bring in this.

position um Sal or 65 65 is your salary. yes cool what hits your account on a. monthly basis on average um about 2k. every two weeks every two weeks that Mak. about 4,000 for that job are we saying. there's another job um I I've I've. always done freelance and also like a. home health aid thing on the side so an. additional at least 1,000 to 1,500 per. month oh okay so an extra 1,500 a month. yeah that's really cool so with that how.

much time are you putting into that on a. monthly basis um that's usually on the. weekends so it's it doesn't take. anything from like I just have it set up. in routine so that's just extra income. but I do try to take on freelance. clients if it makes sense if it's worth. it but um yeah right now I'm just trying. to focus on my new job and it is a. pretty new job and so um yeah I really. like where I am yeah yeah okay so are. you okay yes sorry okay no it's okay. you're just your voice is shaking so I. just want to make sure General I do get.

shaky when I talk too so oh okay well. just as someone who is an anxious person. and has my own issues with that I just I. want to make sure thank you um okay so. why why are we in all this de just off. the bat we have the credit cards you. know we're just all over the place why. are you in a bunch of debt 27 years old. making a decent income I'm making a. decent income right now and I think that. is a common thing and I do want to start. off by saying I'm very aware of how.

well positioned I am and I am I was very. set up by my immigrant parents for. Success your parents my immigrant. grandparents okay my parents I'm an only. child and um being from I was born in. China and so I don't know how yeah. familiar you are with their first gen. culture but um I'm still very tied into. my family and like I moved right back. with them um bought a new house after. college and so we rent out my childh at. home and so you bought a new house or. they bought a new house it was a. collective effort I would say but.

financially obviously I didn't. contribute nearly as much as they did. who's on who who's on the loan don't. have a mortgage it was purchasing cash. yes. who's on the title on my parents okay so. you have no ownership no no ownership so. is more like a handshake agreement like. I have a little bit of ownership in this. cuz you put money into it it's not. really like black and white like that I. guess it's just assumed like I'm an only. child like afterwards obviously the. house would just no risk of the. relationship shower uh souring not.

really just because we are codependent. in a way so like my parents don't speak. English fully they wouldn't even have. been able to navigate any of that. without me and I know that there's this. joke on Tik Tok that's like oh growing. up and I have to start making my own. doctor's appointments and stuff you know. like um I can't tell my par doctor to. call my mom but growing up that was. always something I already did so I kind. of had like a rested development where I. grew up a little bit faster in the. beginning compared to my peers but then. I probably took a Bender here and there.

and sort of was your college paid for. yes well it was mostly paid for by. scholarship and grants and then I took. an additional fifth year so that's why I. still have student loans oh okay fifth. year where did you go UT UT okay so big. Connections in Austin what' you study. marketing that makes sense for your job. very good and you took out student loans. for only the fifth year so student so. just student loans for the fifth year. colleges paid for set it for Success you.

put money towards this house that you're. not on the title correct how much um I. don't want to. say well that's okay well I can respect. that but where my mind in question is. when it comes to all this is like should. we put money towards a house that we. don't have any technical ownership into. if we have a a credit card debt that is. auru interest on a monthly I so I. graduated in 2019 we got the house and. pandemic hit and yes I didn't get a job.

right away but I always had like my. credit cards paid off up until I quit. that first job so I had living secured I. wasn't paying like I the mindset was I. don't love paying rent right and so if. I'm going to have to have a housing. expense obviously I'm going to go in. with my family and then maybe rent out. whatever childhood home we have instead. and so that living wise that's been fine. like I don't have as much rent expense. or utilities or anything to worry about. so that is a huge safety that where.

honestly sometimes I do fall back on and. being like Oh living at home with the. the parents though it's fine for me. because it's a pretty big house I have. my own floor like it's not what happens. if you you know start dating get a. spouse I I do think I travel enough to. be out of the house a lot to where I. don't think I'm like bringing any of. that home anyway but either way did it. make sense for you to contribute to a. house yes okay your living expenses are. covered but again this is you. contributing was some.

like loaning out the money that you're. already going to pay for rent in a way. in the way that I'm thinking about it. because you don't have any equity in the. home yes it might get pass to you I. think we can consider a high likelihood. that it will be passed to you there's. always things and there's just a risk. profile on that plus even with the money. that you're saving on rent is that going. to save the overall interest that is. being acred on a monthly and annual. basis on the credit cards that were not. paying off that you could have paid off. yes I I just I guess I would like to. move on from this as fast as possible.

just because I don't think this is a big. part of like I can't explain about it. enough in detail for what if I think. it's a big part though okay so it was. like a onetime chunk like sometimes it. takes an outside perspective to. understand what is a big impact overall. in our decision-making process and then. making sure we don't do it again in the. future the thing is it was like a. one-time sort of payment thing where. it's was like I thought we were going to. put down a down payment for the house. right so I gave them this little bit of.

being like I can help out with the down. payment and then contribute to the. monthly mortgage basically but then they. they were like surprised we have enough. cash which is awesome right so there was. no like monthly payment that I needed to. even worry about anymore and so whenever. I was unemployed I honestly wasn't. giving them any money because like I. couldn't and so that was great you pay. rent I do now since I'm employed again. but I it did take me like a whole year. to be able to find like a full-time job. and so that's when all the credit card. debt racked up I guess what you rent um.

it would be around 1,000 a month. sometimes I give a little more if. expenses come up like this month why is. it $1,000 a month though if you gifted. money towards paying on see I'm just a. little confused like I'm okay with. paying rent for living with the fam but. you helped buy the house you helped by. the house not as much as it was of. course not as much as them they I mean. you you gifted a part of a down payment. they bought the entire house but even. still yes there's like utilities and. there's property taxes feel I don't know. is a little interesting and so and that.

stuff I'm the one who has to take care. of that right like they don't know how. to pay utilities or property tax and. stuff because I do have a hand in. helping manage the house like that's why. I'm tied into it we want them to be. self-sufficient though at some point. right I guess but it's like at this. point they're close to retirement age. well then we definitely want them to be. self-sufficient and going into. retirement is when you should be. self-sufficient the most but they are. super self-efficient financially it's. just okay so then it's a matter of I. guess navigating the American system. it's not.

but instead of doing it for them what. about helping in teaching and. handholding along the way it's the it's. the it's the teach the fish versus. giving a fish right you don't have. immigrant parents so I don't think I. don't don't know like it's not just a. language barrier like sure like let's. say tomorrow I could get them to speak. the language fine but even then there's. still like the navigation where no long. term I I it would be easier for me to. just pay the bills for them rather than. I get it and you're right I don't have. that but I think it's important in.

general when we're in any situation. regardless to have a little bit of. Devil's Advocate and to have a little. bit of push back on anything because it. creates potential different opinions. that we may have never thought about and. potential different avenues that we may. have never thought about and creates. good conversations to open-minded people. who might be able to pursue things in a. slightly different way when we're. already on one track so it's not about. okay I know how to navigate a situation. with immigrant parents who cannot speak. the language it's not me saying that at. all but there's also just in general.

wide- ranging philosophies that are um. that apply to every aspect in the world. and that's where I brought up the okay. teach the fish versus giving a fish. situation I guess our ultimate sort of. difference is individualism versus. cultural yeah yeah the cultural. difference so like to. me whenever I'm ready to buy my first. house I can honestly say I can rely on. my parents to help me out with that if I. need help and that's because we have. that two-way sort of like relationship.

even till this day which is great but. when you go and buy your own house and. you don't live with them how are they. going to be able to be self-sufficient. if you're the one who's taking care of. everything right now the same way I. always have I do it from not next to. them yeah I whenever I went off to. college like yeah I wasn't living with. them for 5 years but I still you know. always had to have kind of roots back. home and I think that is just an. inevitable like unchanging thing for. first generation especially girls too. that this is just our responsibility and.

duty to kind of do they expect it not. it's not expecting type of thing but. it's like this is what I do like I my. parents take care of me and I take care. of them how they Tak care of you by. being a combined household and because. of them I don't have to worry about rent. up until now I just started my job in. like July that that was that was a a. very nice thing of course you gifted. some towards of down payment so I think. it was more like we like loaned that. money that's been then received through. you not paying rent in a way mathem it. may have not equated zero in the end but.

right you know and that's what I'm. saying that I get your point and how you. always challenge people and you always. have kind of good I want to challenged. as well yeah but I I almost come into. this almost wary of being like I don't. want to have to argue about with you on. this well this isn't this isn't an. argument it's a conversation it's not a. transactional thing to me either you. know there's so many other factors that. go on just of financial implications I'm. like all right yes this might be hard. harder to understand but I don't think.

we can unpack all of it within this one. conversation nothing can be unpacked. within one conversation but it's opening. different perspectives is often an. important thing to do whether you're. opening my perspective or I'm opening. yours that's that's a good thing and. having an open conversation even when. one you know is not in the other shoe. doesn't mean that a conversation. shouldn't be had just like you know. saying oh you can't speak on you know. parenting you can't speak on being a. first generation immigrant you can't. speak on this means that no one should.

be able to have an opinion on student. loans if they've never had a student. loan no one should have an opinion on. anything that they've never personally. impacted themselves doesn't mean that. there's not wide- ranging philosophies. all across the world that can't help. apply to specific situations and I'm not. opposed to what you're saying but I am. trying to understand the situation. you're in especially as we try to. understand your finances because. everything can be intertwined because. when we first talked about this uh. housing situation we talked about you. gifting some money towards down payment.

now I'm sitting here looking at a bunch. of debt I'm like oh man if you had that. money obviously uh maybe we could have. paid towards this but then but then well. we would have been in much worse again. again that's why that's why I said and. then we had the conversation which was. an important conversation because you. added context around okay but then I. would have had to pay rent so the money. wouldn't have been there in the first. place because it would have gone towards. credit cards yeah so it's not an. argument it's an open honest. conversation understanding you know the. different perspectives and then trying. to open of Minds with different. perspectives as well um like statistics.

around uh first generation uh parents. yeah I think we all know a lot of the. expectations and how it sets up in the. United States in terms of the uh child. of the first gener uh child of the. parents you know I don't know any. statistics around okay on average how. many of them take care of especially if. they're a woman like you said take care. of uh property taxes and all that stuff. with their parents I don't know so I. can't say okay well maybe you're an. outlier here or maybe you're a part of. the norm cuz I don't have that.

information in my fingertips but it is. interesting especially I know the. American economic culture and that is. the culture that you are a part of now. regardless of the culture that you came. from this is the one that you're in and. that's where I try to help people. navigate is through our economic culture. if you ever want to. grow and you're not there now but if you. ever want to grow Beyond just that. household all my fear is if you are. setting someone up in a way where.

everything that they might need to know. is already being taken care of is that. an overall benefit to them in the future. if something changes if all I'm taking. in account is some potential risk of. life changing and life always changes. life always changes that's all I want to. take a brief moment to thank today's. episode sponsor Vora Vora is an. investing platform that introduces a new. take on how to grow and save your money. it's the first ever automated Robo. advisor that gives you reward w s every. time you invest or save for every dollar.

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using my link in the description below. okay so there that was a lot there but I. do. think previously you've had guests also. with similar situations that have ties. with their parents still and you kind of. have presented the same sort of like. counter point I guess sure and I guess. I'm trying to present that sort of I. know you can't see it the statistics or. whatever how common it is but I'm. telling you it is common like if you. goal Stat or are we just taking you know. ear ear and mouth on social media you.

know you've talked about girl math boy. math how that's like a new thing I. haven't but it's been a Tik Tok you know. like that sort of like topic so there's. this new Niche called immigrant girl. math or immigrant daughter math so it is. a prevalent enough Niche for it to have. a name like that so so I'm not going to. have any hard numbers backed up to it. but I'm which is fine yeah but I'm. telling you at face value it is this is. really common and it is how it is all. the time and I do know exactly what you. mean though yeah that because they were.

brought up in such a different system so. their way is really saving heavy so my. parents have never made more than 50k. combined growing up and yet they were. able to save right for a house cash and. so they're used to that sort of. discipline and that just saving hard. mindset but they're not super Savvy with. like you said navigating debt or. navigating interest or credit or you. know leveraging these different. Financial tools and so I am super aware. of how we came to the US to pursue the.

American dream but an inevitable. inevitable part of that was almost being. a consumer like to be to live the. American dream is to be the ultimate. consumer so I do that card admit that. I've fallen a lot as you can see into. the trappings of that but then also as. soon as I've been able to get my. full-time job I thought I was going to. be able to aggressively pay off debt and. obviously it's not as never as easy as. you think exactly and your discipline is. Never As Good As you would assume it. would be either so kind of what I'm.

trying to say yeah so I'm here to be. prepared to get yelled at by you because. I know there are a lot of things that I. could be doing better but also to. explain that there are some things that. you might not understand but it kind of. just make sense for me sure still yeah. well again I'm not opposed to what you. said I'm not opposed to it there's not. anything inherently wrong with the way. you're doing it and but trying to at. least understand or at least help you. understand the risks is all within our.

culture that you are a part of the. economic culture now bringing some. internal household cultures from the. previous uh place you've come from China. that's awesome we can do that in the. household doesn't mean you're not a part. of the economic you know culture of. America so just understanding the risk. around that and making sure we're prepar. prepared for that because we can't just. say because of where we came from that's. how the economic culture is going to be. here now that's not how it works right. well it's not like I'm but it's not like.

I mean so what's the alternative I move. out and start having like an extra rent. expense too so I don't really. know I don't really know what whoa whoa. whoa no I did not suggest that at all. better substitute would be no no no no. no it's not that it's. just do you want to do this forever how. about that do you want to do this. forever do you want to take care of all. their bills without them Having learned. anything forever I'm not I'm taking care. of them by doing what I can like you.

know just helping them work out the. system it's still their money that. they're paying bills but but but you're. the one taking the actions right paying. the property taxes do you want to do. that forever I mean I'm fine with doing. that yes do you want to do it forever it. doesn't matter what I want it's not like. my parents wanted to ra their kid either. it's okay one second they first of all. they take on the responsibility if they. have the kid whether or not they want to. you're not taking on a responsibility by. being. born flat out. but okay so I'm asking if you want to.

and just follow me on this ride for a. second do you want to do this forever I. do want to because I want to make sure. my parents are taken care of go there. you go if you want to then it's totally. fine it's totally fine if that ever. changes I hope that they're not all of a. sudden forcefully left behind because. they were never prepared to learn how to. do that stuff on their own and that's. the only risk that I'm a little nervous. of does that make sense so that's all. again I have no issue with you doing. this I'm just more of I like to teach. people versus do things for people.

instead of giving someone the fish I. like to teach them how to fish I think. it's more productive for everyone's life. so that's really it but totally good. with you doing what you want to do. there's nothing inherently against that. but um having a different opinion is. never a bad thing with the so why' you. go into the debt in the first place. though um honestly and you're going to. hate this when I quit my job um I had 10.

to 15K saved up like as Emer you qu your. job it was a tough work environment it. was basically one of those things where. the boss felt like a Bravo reality TV. show like he was the villain but also. like super you know hectic and a lot. going on so I'm grateful for the. experience and I'm really glad I left. there kind of with that resume and. showing everything I was able to do and. then I did do that year of freelance and. so because of my mental state at the. time I kind of. did want to just maximize like living.

basically oh let me enjoy life because I. suffered for so long at that job and I. know I so I hard one I spent like 10K. going to Europe oh yeah for 5 weeks and. I know that it's not going to make me. look good and people are going to like. have opinions about this but I honestly. do not regret that for a second well it. does show like it does it gave me like a. reason to want to live again to enjoy. life to like see what else was out there. and like I don't know like it it really. did kind of brighten up the whole like.

world for a second and then everything. um when I came back kind of just didn't. catch up as quickly as I wanted it to. yeah and so because of that year I'm not. opposed to that have been being a thing. that you know helps you know you want to. continue on the earth I'm not opposed to. that in general uh what I would want to. think about are potential Alternatives. that just don't put us in a bad spot. that could perpetuate you needing to get. in a situation again that you don't like.

in order to pay off the debts that you. then owe so it's like potential. Alternatives yes that worked maybe. something else would have worked as well. I'm not upset that that worked I'm not. upset that that worked. uh I don't yell at people for what they. did a few years ago cuz we learned from. it i y what you're doing now so if. you're going to Europe right now i' be. like yo you. doing but you also said that you don't. regret it at all now it's because of. what happened in terms of you being like. okay cool I'm excited so you don't.

regret like the feeling behind it do you. regret the financial decision behind it. though because that's kind of important. because if we don't learn from it then. who's to say you won't do that a year. from now if your next job is also very. difficult I think finan I knowing what I. know now I definitely if I only had that. much saved up I wouldn't make the same. Choice again but I am okay with my. decision post decision because I'm like. money can always be made back as long as. I paid that debt off and then just never. ever. do that again money can always be made.

back I am okay with that experience. having that experience what can't be. made up is the time of compound interest. that was lost and I want you to be able. to retire and that is the big part of. where I know like I not like I beat. myself up but I'm like I do know that. it's the biggest regret is I didn't. start. investing right out of college and I. honestly wasn't in a position to be able. to start until now and so that is a big. part me that $10,000 could have gone. towards it so not exactly but how long. have you guys been here by the way um. since 2004 when I was eight very cool.

very cool do you like being here yeah of. course Okay cool so let's go through. your debt balances what would you give. yourself a score 0 to 10 your financial. score the Wendy Financial score maybe. one hopefully. two. okay I would have loved to use that. $10,000 to have that score be about a. four today but alas but we're alive here. we are anyway we're alive anyway again I. think we could have potentially found.

different Alternatives I don't I'm not. upset that you did what was necessary to. you I just wish maybe we spent more time. to consider potential. Alternatives um like I go to therapy and. it is lovely. 1,118 purchases on a card that we can't. pay off yep that doesn't make any sense. why the are we possibly doing that I. think okay so I also have it's not a. defense but I do know why it happens a. lot of Americans I think use credit. cards as safety nets right like they.

just obviously would rather take on that. debt and go without or to know that they. don't have enough to pay for something. so in my mind yes it felt more you said. two different things there so I I want. to I want to make clear what you say. safety net okay sure so we use this. because an emergency pops up and we. don't have an emergency fund because. emergency not having an emergency fund. is an emergency okay that's different. but then you also said to spend money we. don't have you forgot the exact words. you said but it was essentially. consumerism those are two different.

things safety net for something we need. to do medical bill rent utility okay. Mickey D's those are two different. things they're two different things but. I think American like standard of living. we're so used to enjoying whatever um. impulse that we kind of have sometimes. that it's harder to obviously like hold. off on those impulses but also there. were some random expenses like work. expenses that I would just want to put. on a card to make sure I could pay for. it before it's reimbursed and stuff like.

that but yeah like I said it just felt. safer to just put expenses in General on. a card just to make sure they could be. covered and then worry about paying it. back later I mean yes that's just the. definition of credit cards well even. though we know that mathematically. that's not necessarily safer and it's. actually putting you further in a hole. right so I guess now it's just a matter. of separating out the actual dire. crucero expenses and making sure I could. absolutely pay for those and then just. cutting out the rest that's like oh I.

can cover it later type have you ever. had a budget um I have had kind of like. an approximate budget where I'll be like. every time or whenever I started getting. paid I would just try to I don't know if. you can tell I try to aggressively pay. off the um cards with whatever income I. was coming in but then that wasn't fast. enough and so now I'm on more of a. budget recently but not really so this. is where yeah again this wasn't a. fallback because we had a necessity pop. up we have Spotify we have sweet Paris. which which I've started falling in love. with sweet pars by the way I've been.

eating those waffles way too many times. yikes Fast Park reservations we don't. need to be doing that I was out of town. I had to park at the. airport five bucks H iess I guess that. is more price effective than new brain. so I give you that TJ Maxx so there was. actually a lot of clothing shopping but. not necessarily at expensive. places uh the TJ Max was whenever my dad. was going back to China had to get. expensive skin care for family expensive. skin care stay Lauder for family because. it's like a it's like good to bring nice.

gifts back home and stuff so I just. wanted to make sure I got something nice. for my cousin but that was just the one. thing that was crazy but I'm also like. again there is the cultural difference. but then I'm like because you're part of. this economic culture now. congratulations you're here I'm going to. gift myself getting out of debt so that. I can give you Mr cousin many more TJ. Maxx things in the future because I have. money working instead of going further. in the hole making it harder for me to. be there in the future yeah and I think.

knowing how bad it was I wouldn't have. done it again but you know my dad. doesn't go back to China for every 10. years so so it's like you're also a. makeup Queen Ulta glamtic something. deodor in $32 to kidos and Netflix and. lavender ring. $129 lavender ring that's underwear I. know it's I'm that was not I'm not. justifying those dude if the underwear. have holes get yourself some underwear. but if they don't. like um okay what I I don't have any.

justifications for that don't I will say. I'm generally try to because I don't. ever U like I do have some sort of choke. hold from my Asian parents like the. frugality and sort of the saving money. as right so I'll try to like tell myself. oh since I don't Uber Eats ever um since. I you know try to save money by never. ubering and like because I am so good. not a one way I can be a dumb way.

because I'm like oh I get my bang like. it's that girl math I guess it's like. because I get my bang out of my B stop. girl math that's budget math I like yeah. I then go spending on other things girl. math boy math that's like actual math. math I prefer math math this card this. card was actually paid off but there was. interest that was still acred so like. that accured before you paid it off. within the last statement and then still. $43 of. purchases so where did we do we had some. an apple Bill maybe it was an Apple pay. of some kind and Hulu and Clara so.

financing and then paying it off of your. credit card so we're just pushing back. the actual payment right so that for. that mindset and I'm sure I also. shouldn't use clar anymore but for that. I was like oh because I'm acre interest. on existing a credit card debt at least. while I'm trying to pay that off clar I. won't add on anymore but why just why. even do it cuz it's probably not a. necessary purchase going through your. purchases not some of them probably.

every thing except one was like a so. you're clearly fall into American. consumerism right and oh and I will say. another aspect was um I do have like. 1,500 to 3,000 coming in because I've. started doing reselling I used to resell. Brands a lot so I kind of got know the. groove of that um and so I am trying to. make back cash basically okay post. consumerism for. are you postc consumerism cuz this was. just like now right yeah it's it's a.

hard choke hold to get out. of and I will say do you think do you. think you have some cope we we mentioned. some mental health things and that's why. you did European Vacation and great I'm. you're here and alive and I would take. that any and every day over the $10,000. so still that I consider that a win uh. do you think mental health surrounding. maybe hard days at work lead to our. overspending on different things we.

don't need no but I do think it comes. from like a a a sort of routine of. frugality growing up cuz my parents were. so good at saving being like Oh we can. live without we can live without as soon. as I had any access to my own credit I. was like oh now I can just get it and so. yes I am conscious of having to work. that's why don't like any aspect of. shelter ISM cuz the one moment people. escape that shelter they're just like. exposed to reality and then they just. fall full-fledged into different things.

whatever they were sheltered from now. being in a Frugal hle that's not. necessarily being sheltered but maybe. there wasn't a lot of discipline taught. around the why I'm not sure maybe it was. just it was and there wasn't wise and. then we're just like okay go crazy par. no this was not on them at all they. definitely did I'm not saying that and. I'm not trying to be like oh you know. like because they were cheap I this is. completely on me because I know my mom. did exactly what she had to do and she. still made sure I never went without no.

they were they were doing it right no. don't get me wrong but because of that. if there wasn't a lot of teaching as the. why with it which you know isn't their. no and I'm saying this part too she also. was pretty good at telling me like oh. because you know we're able to budget. she would be able to send me on bigger. expense trips for school even though. okay otherwise I wouldn't so I do see. like I virtually saw the benefits of. saving growing up too it's just still. that impulse of wanting yeah gotcha on. Apple wheel $ 4,338. 68 $258 minimum monthly payment is.

pretty intense only minimum monthly. payments would take 17 years to pay off. and You' pay in total of $1,510 by the. way and we're going to like it's always. it's they always miss words in this. apple thing I don't know why but. McDonald's some eBay cider Burger. Factory I think and an apple bill of. some kind and he V yeah bullsh I guess. and then we also have things financed so. maybe a iPad maybe a watch or a phone or.

a computer phone and computer phone and. computer not necessarily opposed to that. if done correctly was 0% but in your. situation where we're clearly not. disciplined with that you're not a. credit card person. objectively we're probably not taking. advantage of things like this it it was. a necessity at the time I didn't have to. cash and I shouldn't have spent any more. on that Apple C definitely not have. emergency funds in emergency but you're. losing $70 a month in interest on this. so far you lost what like $100 this year.

so far on the other one or like a few. hundred bucks and then $500 on the first. one this year so far so we're probably. over $1,000 in interest loss this year. so. far oh this one hurts okay so on now we. have a saire. car so we're just opening them all $. 2,8. 8494 is out on this lovely guy with a. death $390 minimum monthy payment of 97.

kill me now $62 of interest and $23 of. fees you made a big payment but we. purchased. 1,794 again I understand where you've. come from I understand what you've said. about the consumerism and the safety out. of credit cards laying that out all. laying that all out we get it we need to. stop it it's as simple as that we need. to stop it you're just. you're putting yourself in a worse and. worse situation and you could have paid.

off this card in an additional month but. we just we put money on it now fees is. and interest I mean I had to book like. $300 wor of trips like you know Airbnb. accommodations and stuff for work too oh. this is all work yeah no not all but. like when I whenever you do see randomly. it goes up like into the thousands it's. because I randomly had to book something. for travel okay how much is this all. like cuzz a lot of that is in Spanish I. can't speak sorry this Mexican travel. was just a birthday trip that was.

different yeah that was a friend trip so. off I'm sorry no sorry what what what a. what a fib come. on lines and lines and lines of death. bull stupid death lovely then we go to. things I can actually at least. understand a little more and tacos and. tacos and Airbnb and Sephora and Jack In. The Box and. buffal and actually to L Taquito number. one it's kind of funny Smash Burger.

Jersey miks Twinkie tea shop Clara. Clarin we're paying for our financing. already putting on a card that we can't. even pay off an interest of being recw. lost $1,000 in interest as year so far. on this card lovely Valentina birdies. and iing Gerger and then one that very. much excited me Buddha Burger what' you. think of the boo um I liked it but I. tracked it down for a very specific. specific reason so um I saw that you.

were interested in franchising and one. blip that wasn't blipped out mentioned. Buddha yeah I me that's why I was like. Buddha Burger so that's why I tried it. when yeah it was close to my work too so. what' you think what'd you get I got the. mush the one with the melty cheese in it. the mushroom bomb thing it was good I I. think um I need to go back I didn't get. to eat it fresh oh well you got to the. moment beef is off the grills are taking. time. it's not good anymore the California get.

the single or double California is the. play now that I'm not franching them. anymore I don't care go support them. they're good they're delicious. everything is just cooked and clarified. butter and it's the worst Food figure. possible and it's absolutely amazingly. delicious and it gives me the buia every. time I have it the buia yeah it's a. rough time but it's good while it's. going in and then plan fee plan fee plan. fee it's like we're financing things we. have some finance charges through kiwi. Airbnb Airbnb or something I and again. $1,000 of Interest loss this year so far.

essentially $118 stolen from you this. month in interest and again okay maybe. Airbnb is worth deductible but it's say. you spending spending on different trips. of the spending we've looked at there's. been barely any necessities and you're. just spending thousands of dollars yeah. and I think that's why I did come in. here getting ready to get yelled at. because even without all those. Necessities I still haven't been able to. repay as much as I have oh but I do want. to bring up right before I started my. new job I did get scammed like $1,000.

not almost scammed so I almost got. scammed um and I had $1,000 of eBay. credit stuck in there so that's why um. it delayed me a little bit. but student Lans I yeah I can definitely. understand that that. sucks it's not that bad I feel like it. could have been worse it could have been. worse but no one likes to get scammed. yeah it sucks so just for an extra year. we had to borrow. $1,666 well that's the current balance.

we start we started making payments and. we have $121 cuz we are in repayment. time and I asked for those to be held. off for a few months too six more months. why just so I can catch up on other. debts first I guess. uh. yeah but if I'm not mistaken when you do. that little def that extra for cuz I. actually did that once too when I didn't. understand that and it was bad and it. was stupid to me because because yeah. we're getting daily interest AC crew and. you're still having interest AC crewed.

throughout that entire process so it's. still better to keep making payments to. get it. down yeah cuz you're at least you're at. least starting to make progress but now. no progress is being made but we're not. in the point where interest isn't being. acred interest is ACR now and this is. $121. uh going out to eat was. $324 so double of what you could have. been paying towards it so like you could. have made this payment what you what you.

said was I'm GNA defer this payment so I. can go around and eat out that's. essentially what you said mathematically. speaking in your. bills so I'm not so I'm not thrilled at. that and uh now the interest rates. aren't crazy when we start paying these. and we can talk about minimum monthly. payments so they're paid off potentially. the highest one's 5% and the rest are a. little below that it's really not crazy. this scared me and again this kind of.

correlates with the spending you did not. need to be spending should we be. spending the money that we did not need. to be spending if we have. $965 in our checking account oh that's. scary why are you prioritizing those. items BG love it why are we prioritizing. budha bger over having money in our. checking account I mean I guess I just. didn't realize. how disciplined I had to be to start.

making a dent like in my mind I was like. oh I have a full-time job now as long as. I start paying as much as I can like. it'll go away eventually but then. obviously finding your Channel having to. Deep dive and being uncomfortable like. facing the numbers and being like okay. just and that justification of being. like Oh now that I'm fully employed I. can actually enjoy the occasional thing. but it's like no I need to actually be. doubled as disciplined to kind of make. back and repay what I was doing before. whereas um yeah I just was kind of the.

change Starts Now or dude you're heading. down to dark path that you've already. been headed down and it's only going to. get worse and you're not going to be. able to retire because there's we're. going to get the retirement after the. checking account and it's like nothing. nothing and you're going to be headed. into your second decade of work and. nothing so some fee of $5 I don't know. this keeps popping up fee fee $5 $5 it's. a withdrawal Plaza fee yeah all the that. Mexico stuff was just a friend's. birthday trip yeah your friend okay.

normally I'd say your friend because in. my mind that's just me saying you know. what let's prioritize just you getting. out of debt right now but so many people. take that so literally that's just in my. language of being cheeky um so your. friend come on Happy Birthday pay off. your debt and then catch up on. retirement have a fully funed emergency. fund then reward them with a lovely big. birthday gift hey sorry I didn't make it. that one year so here it is or maybe. your other friends come together when my. when so we have a massive income gap in.

there our seven group of core friends. that I have here um very wide ranging. people of different incomes sometimes. like uh some of us who are on the more. blessed scale of that income scale want. to go do something that someone who's on. the lowest end making like 14 bucks an. hour can't do we don't say okay we're. not going to do it or we don't say okay. don't don't don't come and not do it I'm. like I want experience with this you cuz. you're my friend I love you uh I'm. paying for you maybe your friends would.

have come together and helped if you. explained your situation Maybe not maybe. you didn't want to put yourself in that. uh uncomfortable situation of admitting. where you were you know cuz in our. culture and I don't know about that. culture uh that you come from as well. but we're not very open about our. finances here which is bad yeah and I. will say I'm stuck in between two worlds. like here I am very much with American. friends and Americanized people so um. right I didn't want to obviously tell. them I was going debt to take that. birthday trip but obviously had fomo and. was like Mexico's relatively affordable.

I can squeeze this one Reckless decision. in so yeah that was not. um helping for sure what's West. Chase West Chase 100 bucks you spent. West Chase. Houston probably just ATM oh. wait who's an ATM withdraw yeah 100. bucks who knows where that went sending. out some cash app then the rest were. mostly just pain TRS. bills and yeah in our uh life insurance. so is this random and weird huh for.

someone my age with no kids uh who's. insuring you so my mom signed us both up. but now I'm the insured one so she I've. started having to pay it so she's the. beneficiary yeah I said yeah the. beneficiaries but um they're my parents. for now. okay. um and it is whole life insurance and of. course post some sort of literacy of me.

just trying to find out about life. insurance in general you know the common. thing is like du term if you have to if. you have dependence to cover but. generally people don't love whole life. insurance and so I've always felt like. maybe we shouldn't have this but then. maybe it doesn't hurt to keep and then. Know da is very anti I mean just with. the cash in cash out in terms of an. investment. vehicle sometimes you know it doesn't. have the return that I like you to have. um interesting uh I I did a massive.

massive deep dive and actually got on. the phone with lots of uh certified. financial advisers who talk of life. insurance and I I spent hours and hours. uh trying to become more informed on. this one because I knew it' come up with. some point there's actually at a certain. income and wealth threshold there are. certain things actually that can be. taken advantage of in whole life for the. vast vast vast 99% of people that's I. would just go term I don't really. understand anyway uh so I guess you know. parents would get $125,000 if you.

unfortunately pass away it's taking out. insurance plan on your kids and are you. paying for it or are they um they've. been paying for it my whole life but now. I I'll start paying for it yeah. well I it's. like yeah wait I thought I saw Insurance. in here did I not my or not Insurance uh. retirement I have 401k but how much is. in that it's only like 100 from like. okay so that scares the F out of.

me that's that's terrifying so we did. have oh and my my employer does match. now but the benefits don't start for a. few months. so. only in terms of money that actually. went to towards debt was probably like. about 3% where again it was like 20% was. like. Mexico are you sure okay other other. other than other than so sorry debt. besides your car.

payment so the thing is I actually. started with 15K of debt in July and I. paid it off to 10K now okay so I don't. know how accurate that all the. transactions reflect that I guess one. second but um so debt payments we had. about. 1,867 uh rent was like a th000 at. Transportation cost we got about 308. that we were able to find then again. yeah your shopping which is like eBay. and cider and the deodorant and the.

lavender ring that was six6. $656 just an additional $656 that could. have gone towards paying down our debt a. little. more and then subscriptions you know. Adobe I feel like you might use that for. your side business yeah and I'm trying. to get now I have it through work so I'm. trying to cancel it as possible but then. also Spotify Netflix Hulu we don't need. to be having those right now we don't or. we at least we can listen to ads on. Spotify I suck I get it but you have. that and some taquitos and Ulta and Ving.

out money cash apping out money Glam. medical. $182 then. $1,026 went to like Mexico stuff that. could have gone towards. that so we're just not doing this in the. right you're. just the thing that's a little upsetting. to me is with your spending what you're. spending now and potential. justifications is I think we could have. been out of debt very very. close if every month previous was not. something similar to that and the The.

Oddities that happen in one month will. be replaced by an odity in a different. month that's what we. see so rent we have $1,000. right okay you do not have a car payment. car insurance is 10 something per year. and that's paid off for the year 100. something bucks a year no 1,000. something for the year and then it's I I. put the expenses I think yeah about 87.

bucks a month is what it comes out to. that's what we have $102 a. gas maybe per month maybe more but my. work usually reimburses o what do they. so that comes into the pay now does that. come into the $4,000 that I had set. aside is that additional additional oh. so we'll wipe off gas yeah and the. airbnbs usually are reimbursed by work. too outside of the Mex. Meo now how does groceries work at home. how how are we doing this so we have.

Gardens we have like more than enough I. yeah um so technically I shouldn't be. wait you guys don't shop at all well no. we shop minimally but it's like we have. so much prod okay but how does it work. though like do you contribute do they. contribute do we shop separate do we eat. together how is groceries done so my. parents my mom will usually grocery shop. but then also buy stuff for the house so. it's who that you need to I don't have. to but whenever I want to make the. mistake or something I'll but if I if I. give you like 150 bucks I that fine yeah.

I can work with. that uh now $1,000 for rent do you also. pay into utilities and internet and. stuff like that that covers it all and. sometimes if we have like water heater. broken I'll pitch in more and. stuff to uh makeup and toll paper I'm. giving because I know we're going to. have room I'm going to gave you $100 and. I'm actually going to give you uh $30 of. subscriptions oh thank you. what else do you have to take care of on. a monthly basis we talked about.

potential depression and you took a. $10,000 trip to help deal with that have. we thought about with the health. insurance you have seeking mental health. help yeah so I did write in or I wanted. to plan maybe um for gym and mental. health sort of budget gym 30 or what gym. are you looking at I was looking at. class pass and that was a little bit. more expensive like 80 bucks a month I. think okay and uh what would your co-pay. be and therapist I haven't been able to. find that out yet um hopefully not that.

bad I'm going to put 200 okay could be. more could be. less uh anything else that you have to. take care of on a monthly basis that we. have not included in this besides your. debt payments which I will add up now um. can I check my phone real quick oh. sure debt by the way I might have to. take away the subscriptions we'll. see.

850 81 not monthly obligations but I do. know something's wrong with my car. coming up that I kind of want to take it. might be like 750 to fix okay so at that. point whatever's going towards that for. that month might have to go towards that. okay but that can be a little bit Yeah. okay well we'll see let's see how much. wiggle room we have let's see how much. wiggle room we have and we can come back. to that point cuz that's a 4 fair point. I mean in an overall budget we. eventually do want to set potential. money aside for car.

maintenance so yeah you should be able. to cover that easily uh within a budget. if you're aggressively budgeting on a. monthly basis so you bring in $5,500 a. month total are you setting any money. aside at that. 1,500 when you get it I'd set 30% aside. the extra money that's post tax already. that's post you put setting money aside. the extra 1500 no no no the extra 1500. that you bring in from self-employment. stuff that's oh no it's still W2 it's oh.

it is yeah yeah it's at Le 1099 but it's. post tax like I get the um I $199 $10.99. or hold on I'm trying to remember cuz I. work with different agen different home. health aid oh so yeah you could be W2. but you might be contract I would just. figure that out if it is if it is. contract and I'm just going to bake it. in just to be extra conservative I want. you to set 30% aside which would be 4. bucks a month so we're going to for that. one though I'm pretty sure it's post tax.

though cuz I get a p yeah yeah I'm. pretty sure I get a pay up that tells me. why I get the end amount oh sick okay so. 1500 okay. so 5,500 on a monthly basis minus that. by. $2,797 181 which is what you need to. survive on a monthly basis by the way is. $2,722 that's what you have left which. is why this de should not have existed. in the first like not in the first place. but uh I I mean more like it should be. paid off by now so first month I want.

you to take that I want you to put in a. high savings account I use Sofi use. whatever you want that's what I use boom. you have a one- month emergency fund. that's your first month now that $700. that might need to go to a car repair. when that happens use the $700 from this. to pay for that car repair and then. whatever else goes towards that I would. fall the aggressive buzzers that I put. down second month we. are yeah Sapphire will be fully paid off. in the second month after the M monthly. payment that's necessary in this most.

recent month that actually gives you. that brings you now to an additional. 3,000. $3,100 you have left on a monthly basis. so month number. two you almost pay off the Discover card. or month number three you almost pay off. the Discover Card month number four you. take care of the pennies remaining on. that and then you pay you put the. additional let's call it $3,000. towards the Apple card this is month.

number. four and then month number five you kill. the remainder of the Apple card you have. an additional. 2,000. $400 left cool and then it will take an. additional after. that three more months to pay off so. what that brings us let's speak conser. have call it 10 to 10 months to a year. 10 months to a year and you have a one.

month emergency fund and all your debt. is paid off see the thing is if it does. take one year I only started my job in. July yeah so like I you know I wouldn't. have paid it off as quick as I thought. how long were you without a job a year. and I was freelancing but I was earning. anywhere from like 500 to 6,000 a month. it was like so in between yeah for sure. cool well I mean either way where we. we're are where we are now so I think. this takes 9 months to a year 9 months. to a year and then from there with the. all the extra money you have left over. which will be a lot of money by then uh.

a lot of money left over you have like. $3,600 left over on a monthly basis and. without the Necessities towards. debt yeah we would do we' do a $110,000. emergency fund and I think that would. take you about three months to save up. three months so at Max maximum maximum. this should take you a year and three. months to pay off all your debt and have. a six Monon emergency fund and whatever. you want to do from there is up to you. whether you buy your own house and you.

know you have your relationship the way. you want to have your relationship as. long as it's done in a healthy manner I. don't want anyone to be taken advantage. of I'm not saying that's happening but I. want to make sure no one's ever taken. advantage of no one's ever being enabled. for bad behavior as long as that's not. happening do what you want to do um just. mild codependence all I would do though. is make sure you're hitting a minimum. to let's play catchup 25% in retirement. on a monthly basis starting in a maximum. year and 3 months maximum you are doing.

20% 25% on a monthly basis towards. retirement 401K. Ro all that good stuff yeah I'm hoping. to be more ambitious and maybe be faster. than you anticipate but we'll see I. think you could be I think you could be. fully done and have a fully funded. emergency fund in a year should be Max a. year and three months though can I just. ask just wondering what it would look. like to aggressively invest I guess to. try to start catching up on that lost. compound uh you mean once once we have. Emery fund What will what will what's. aggressive to you as like I guess give.

me the route that's as aggressive as I. can go and then the more realistic one. well I think 20% would be okay I'm doing. 25% to catch up okay let's uh let's play. a little math game and this is without. this is this is without your income. being increased ever which is not going. to happen I mean your income is going to. be increased throughout your life it. should just do 8% return stock market. so S&P historically dividends reinvested. is like 10.5 but either.

way so we're. Investing For at that point if you want. to withdraw 59 and a. half 27 call 3028 okay so 32 years. additional 1,375 a month get you to 2. about 2.5 million okay which and that's. 25% you said yep 25% a month let's call. that after inflation feeling like about. it could be about 1.3 million in today's.

money. so could you retire today in 1.3 million. I'm sure I could figure it. out I'm sure you could stretch it for a. bit I mean it'll be I mean that's it it. depend it depends the Avenue you want to. go if you want to leave any money behind. if you don't if you want to just use it. till you're done you know there's a lot. of different Avenues I think you could. now it's better to obviously go into. retirement with a paid for house which. if this is passed on you will have that.

anyway and I mean you can continue you. can take the equity of this house and. turn it into another paid for house uh. by selling that house and you know. moving into a house that you want. whenever that time comes either way um. there could be actually there's really. no reason in the situation the family. situation talked about why you should. ever have a mortgage right you could I. have nothing against mortgages but I. don't think you'll ever need to so that. would actually be more than enough so. 25% is fine you can go aggressive you go. let's talk aggressive yeah just out of.

just curiosity it's fun to see how. numbers play out. M we could go for 2 point we could go. from 2.4 39. to we're we're adding we're doing 30%. towards. Investments that'll get you to about 3. million which helps I'll in for 30% for. sure brings you to 1.5 in today's money. in terms of feel so. yeah in your needs are so low right now. so low right now so may as well just. invest like crazy why not and then if.

you need to lower your investing by 5. 10% because your needs increase by 5 10%. eventually sure that's fine but this is. what I would do you've obviously gone. down a hole and it was actually a fun. conversation lots of interesting topics. to cover that we haven't talked about. and I love just talking about different. things and just you know using real. world examples that have been shown all. throughout the history of human. civilization um for I it's very fun yeah. I didn't I don't I hate being perceived. so I didn't want to come on here just to.

be on camera but I do think it was like. a different perspective that wasn't on. the show before yeah it's cool I really. like it do you have any final thoughts. any final questions I'm just wondering. though for my parents I guess you know. their perspective is super savings like. heavy and they're closer to retirement. age what would you suggest for them I. guess if they. they um they have a paid for house do. they have paid for cars they have a lot. of cash to do stuff with do you know how. much. cash can you cut this off camera you. want to talk about this off camera we.

can talk about it yeah cool do you have. any final thoughts for the episode. though um no okay sorry. um thank you so much for having me and. um I think you gave me the beating I. needed to hopefully I wasn't super. defensive I wasn't even that mean you. weren't I I expected you to be tougher. on me but um I it's situation by. situation I don't fake anything so but I. appreciate you hearing me out and help. me out for Wendy that's actually a. really interesting conversation I love. uh all the variety of topics that we can.

talk about and in general they all come. back to money which is why it's okay to. go off topic a little bit and I do like. that uh even when I'm wrong or they're. wrong you know just opens minds and. opens my mind opens their mind it's. always good when it comes to hammer. Financial score spending their. budget bad we don't go to Mexico even. for a friend's birthday when we're in. bad debt so two out of 10 debts worst. that we've ever had by any means so it's. going to be a four out of 10 but. certainly not good emergency fund. there's nothing there Z out of 10.

retirement nothing there 0 out 10 real. estate she's not on the title she'll get. the house eventually we can change the. score for now it's 0 out 10 that's going. to be a 1 out of 10 for Hammer Financial. score don't forget to check out the. resources links in the description below. they what I use or would use in a. specific situation if you want to be in. an episode of financial audit and you're. able to make it down to Austin Texas. fill out the survey in the description. below.