Why Would You Do THIS While In Debt?! | Financial Audit

my name is Mitch I'm based out of West. Michigan I'm 28 and this is financial. audit. Michigan West Michigan actually that's. where I'm from I'm from Kalamazoo where. are you from from Holland. I'm very familiar with Kalamazoo yeah. okay very cool so you go to Grand Rapids. I go to. um I go to Grand Rapids on occasion okay. the families from there I used to go. there but now these people don't find. that interesting okay either way. um welcome down here thanks for coming. to Austin what do you do for a living 28. years old Michigan I am a mechanical. engineer I work in a a large furniture.

manufacturer in the area Okay uh I work. on the factory floor and do a lot of. really boring stuff lots of emails but. it's pretty much the long and the short. of what I do how long have you been. doing that about a year now oh would you. do before that I graduated from college. today you graduated a bit late Masters a. little late not Masters where'd you go. to school uh Alabama University of. interesting out of state okay yep. curious uh so what do you bring in a. year right now about 89 000. all right. 89 000 books a year now what do you.

contribute to a 401k. so I do a three percent company match so. I yeah I do that three percent I don't. know exactly what that equates to but it. should be in there somewhere yeah. so I just wanted to say so after that. three percent then and then of course. after deduction or after taxes are set. aside you're bringing in a net of two. thousand two hundred twenty eight. dollars bi-weekly it looks like yep that. is correct. so we're gonna get you 2228.

well actually 29 rounded up. times up by two. actually since it's bi-weekly and some. months or. a little um. every because it's a bi-weekly or. semi-monthly it is bi-weekly so every. once in a while you get those lovely. triple check months oh yeah this is one. of them June oh yeah yeah so net on. average you're gonna hit if we do a true. average four thousand eight hundred.

twenty eight dollars 50 cents a month. yeah that sounds about right yeah so. true average with the with the good. months and then you know just the two. checks months you never get under that. but sometimes you get the good ones. either way that's cool so you've been in. there for a year do you enjoy the job I. do it's it's it is what it is it's not. my favorite but it's a good company so. okay uh now tell us about your overall. financial situation what are you in I. know we have some debts here to go. through and we're going to go through. those debts first but uh yeah give us a.

round give us this a brief situation. then give yourself a score zero out of. ten all right well first time my score. I'd say is uh my honest answer I'm. thinking like a two okay. um I have about 30 000 in student debt. and it's Federal through Nelnet. I have about 17. 000 in debts on top of that. split into two light stream loans. so white stream is the uh the servicer. uh one of them's for about I think ten. thousand the other one's for.

like six thousand or so like rounded up. it equals out about seventeen thousand. I have a credit card but I'm pretty good. about paying that off every month so I. don't have like any rolling interest on. there. um that's basically the long and the. short of it I have a 401k and uh Roth. IRA through Vanguard in an HSA so all. three of those combined I'm at about. like twenty six thousand well that's. pretty good yeah it's not too bad. where's the where's that most heavily.

distributed mostly in the 401K because. of the company match and what what well. I will get to them cool let's get. anything else you wanted to add there. um. No it should be about it so obviously. you have a negative net worth but I am. happy that you have some snowballs going. in the right direction in terms of the. Investments. now. what is this. so that is um that's one of my loans I. they don't have like a really good. statement that I could just print out.

easily yeah so I just print out the. entire amortization schedule however you. pronounce that and it shows us every. payment that I have to make to pay it. off okay so right now you're at 11 300. or 11 100. well you haven't made a payment so 11. 388 yep. and this is oh just a private loan. uh what was the purpose of these ones. what is this so one of them is a car. loan is this the car loan um yeah that's. the car loan right there what's your car.

um it's a 96 Toyota it's imported. Toyota what Celsius was that like a. fancy car it's a fantasy car it's kind. of like when I get a 90s car okay yeah. how many miles and stuff like that. that's your daily driver yeah it's a. daily driver it's got like um probably. about 60 000 miles so it's relatively. low mileage. um it's one of those cars that goes. forever but at the same time you know. I'm paying this loan on it. so it is yeah what's the interest rate. on this one because that's what I cannot. see with no statement I want to take a. quick moment to thank today's video.

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nutritious meals delivered direct to. your doorstep right 280 minimum monthly. payment and also what is the term length. the term length is. um I know it's till 2024 I think it was. like 72 months. the interest rate. not to 2024. that's a lie. 2026. oh maybe even longer 2027 yeah much. longer than I thought before yeah so the. loan interest rate is 5.34 percent.

as far as car rates go not the worst. wish it was a little lower especially. yeah in terms of do we aggressively pay. off or not it's hard that's in that gray. area like this. I'll go into my logic there in a bit I'm. trying to sell it this summer why. because uh it's expensive I think I can. get a beater car for for cheaper and. it's the wiser decision now that I've. been watching your channel for a little. what's it worth.

it's probably worth about 13 to 16 000. so I could probably pay off the loan. mostly but I'd want to point five. percent just okay yeah I'd want to flesh. out my savings a little more before I. just pay it all off. yeah well you would pay it off by. selling it like if you got it for 13 14. as you said yeah you would profit a. couple thousand bucks yeah hopefully if. I do it right and after taxes I don't. know but yeah. okay. how many miles are on it again. like sixty thousand okay.

now we have student loans you said. that's about 30. yeah a little more than. 30. I think like 31 something. 31 guessing that minimum monthly payment. starting in August is going to be about. 375 a month or something like that oh so. we have. three percent there four percent or five. percent there four percent there. four percent. four percent.

four percent some of these are rounded. numbers four percent five percent over. five percent on that one yikes four. point five. three percent that's a good one. four point five. three percent. yeah they're kind of all over the place. yeah so we have some on the higher end. some in the lower end in terms of what. federal student loans usually go to at. thirty one thousand dollars sex up did.

you have help going through college did. you pay for some things because for out. of state that's not crazy actually. um well Alabama's got a hybrid program. which is a lot cheaper and that's why I. went with that one oh so it was like. online and on campus I ended up. transferring from Michigan State so. you'll see something oh how long are you. gonna stay like a year and a half oh. okay so that helps that you got. something in state and okay. you mentioned you had this other loan. did I not have a statement for that loan. because I don't think I saw it. you should have um two light stream ones. there's the one that we already went.

over for what's the other one what's the. bounce the other one and what's a four. that one was a debt consolidation loan. so there's credit cards and a separate. car loan and that car's out of the. picture now so I Consolidated all that. into one loan the interest rate on that. is eight point nineteen percent. I know I gotta find the balance here. and the minimum monthly payment the. minimum well he finds all that you. should subscribe because we're trying to. get to 750 000 subscribers yeah congrats.

on half a Mill by the way thank you I. appreciate it. wouldn't be done without these amazing. people and you and everything right. so I'm at 5600 on that one oh God. in the uh the minimum monthly payment is. 339. that's a gross one okay yeah. oh yeah it's a nasty one but that's okay. now when. building up that debt the credit card.

that you Consolidated when was that and. when when did you consolidate it was all. through college I paid for a lot of. stuff with credit cards I used to have. like four of them total now I just I'm. down to one which is good I'm trying to. wean off of that kind of Lifestyle yeah. so. yeah it was through college I just paid. for I think one or two of my college. payments with a credit card which is. really dumb. and then I I got this Honda and I had to. get a loan for that then I got wrecked. and another guy didn't have insurance I. don't have Collision coverage so I just.

had to get rid of it took a big loss in. that one and then uh I just rolled that. loan that I think it was like 4 000. remaining on that loan rolled into the. debt consolidation loan I think this. happened in January where I rolled it on. the one I wish I got to you before. College because I would have just told. you to get the Fizz card for college. students but yeah because that's so much. better and then you wouldn't have gone. into all this crap probably and then now. we have the consolidation loan. yeah it's poo. it's poo okay so I'm a little nervous. that you still have just a traditional.

credit card here now. in this statement you've managed it but. are we going to be managing a long term. for good if we had to consolidate some. past debt I'm thinking so because my. income is a lot higher than it was yeah. but usually a lifestyle inflates that. for the average American yeah I'm trying. my best to be conscious of that you know. and not let that happen is it at all. the one thing where I'd say it maybe not. happening would be my rent payments.

where I'm paying like 1600 a month so. that's pretty High 1600 bucks a month. in Holland Michigan I know it's crazy a. nice place. is it a nice place it is a nice place. you're over 30 percent you're close to. like 34 there so you're spending too. much on your rent yep five a few. percentage of this point but either way. even though 30 is like the max you. should we don't want it at 30 anyway. yeah your income because that's crazy if. you think of 50 of your income going to.

your needs and then all of a sudden 30. of your income is going to only one. thing that you can fit in that category. yeah it's like well yeah I'm over 50 now. and my needs. yeah and when student payments resume. then that's going to push me over to. like 60 65 percent. right okay so we have this credit card. and you've managed it now if we have an. eight percent credit card debt. why the F possibly are you going and.

getting. like Red Wing Shoes. well the story on that one is my job. reimburses a hundred dollars of a pair. of work boots okay so I got reimbursed a. hundred dollars though you spent 323. dollars I know once you get 100 dollar. pair of shoes you have an 8.19 interest. debt sitting over there what's the logic. I splurge that's on me you have already. said that your needs are well above 50.

and when these student loans kick in. your needs are going to be even higher. so why are they doing Depot or what is. it what is that depop. and uh renting a movie and Taco Bell and. Williamson Dickie and elevon and which. was you had a service fee through them. and getting some Tim Hortons and I love. me some Timmy's but guess what Tropical. Smoothie we don't need to be doing it. frat illy's. Spotify. there's music you can find or just not.

pay for it and do an ad every once in a. while or listen to music on YouTube and. five guys don't need to be doing like. probably one of the more expensive. burgers that you can get right yeah Snap. Fitness uh let's have Fitness is that. that's a is that a gym or is that a food. it's a gym okay I forgot yeah and Amazon. would probably that's CR based on the. crap here probably don't need to be. doing that linear restaurant. Kindle I mean. ah it's hard I should go to the library.

I needed yes there you go so you. you have a library Kindle is out of the. picture Southwest. Airlines is that what that is yeah I had. to buy points to get to the um the. threshold to be able to get the tickets. to come here to Austin so it's not not. the greatest way to do that. and that's yeah 285 dollars you then. point Rapids rewards and miss. and Specialty Rhett. yeah I think that was an add-on for a.

hotel yeah what. okay so where's your mentality do you. want to get out of that bad debt you. said your uh see I okay well not that. I'm considered necessarily nice on this. show but I would be nicer if someone was. just coming out and they weren't part of. the audience but you're part of the. audience. you should know that you shouldn't be. doing that yeah you're right and you're. going to doing this so why are you doing. it we need to get to the mentality. behind it so we can actually address it. right. gotta get on that Sigma grind set I'm. not I'm not there yet well no no what is.

the mentality behind you and just. spending this money though. well in my mind I I know it it's part of. like I can handle you know paying off. the the credit card when I when I do. spend it but obviously that's not the. right way to think about it you can you. can so you're better than some people in. that context but they're just really bad. debt that we want to pay off yeah of. which of your income it should have been. paid off by now I find it inexcusable. that it's not yeah. I agree.

so there's. you know not thrilled about that now you. have 300 bucks in your checking account. yep so not incredible but they're worse. there's some money in the markets now. we're venturing out for the bucks who. knows where that goes a lot of this. stuff is like paying off cards going to. different bills or paying to cards and. paying off bills and stuff like that uh. Meyer going to Meyer a lot you go to. Meyer a lot and I miss Meyer but you go. there a lot you've had me not 30 bucks. and House Grand Rapids and McDonald's.

and take it out 60 bucks for ATM who. knows where that went Wendy's and. butcher's Union. and Away Grand Plaza Hotel Jimmy John's. Kohl's taking out 60 bucks from the ATM. who knows what that went and then moving. out fifty dollars 68 cents and Jimmy. Johnson Office Max and Bagel Beanery uh. and hey Barber Little Caesars venmo Big. B coffee I miss Big B coffee that was a. throwback reading there Bigby Coffee is. delicious Jimmy John's so again we're.

going and we're spending Bulls. we do not need to be doing that now now. is the point your 20s are almost done. dude and you've only started making. money in the much later half of your 20s. you've basically missed the best decade. of compound growth for investing money. right well I mean kind of if you do have. money invested so but we could have more. if all our minimum monthly payments were. going to stupid like 8.19 debt.

yeah that should be taken care of this. last year you should not have been out. once that should be gone. it doesn't make sense you're right it. doesn't make sense. [Music]. okay. it's all about that mindset I wasn't. there yet so where's your mindset I mean. coming out of this it's going to be a. lot better well why'd you have to wait. for me you're watching the videos why'd. you have to wait to sit in front of me. maybe this was the plan all along come. out of this with that that new uh just. that new mindset get that kick in the.

pants I needed. yeah how long is that kick in the pants. actually Gonna Last then if you couldn't. do it before this well well a month. you're gonna travel home and this is. going to be exciting. but it is. but what happens when that excitement. wears off. go back to glocking down some Jimmy. John's. I mean I know what you're saying it it's. very within the realm of possibility. that it would happen but I need to I. need to be better well I know okay but.

I don't think that gets the root cause. of the problem just saying yes I need to. be better yes I need to be a better edit. what are we accomplishing with that like. okay you acknowledge it and that's good. but. yeah okay. I know what you're saying. it's good to acknowledge I wish you were. able to go more into your mindset of why. you're doing that so we can combat that. instead of just saying yeah I need to do. better I need to do better we can all. say we need to do better but if we can't. figure out why it is the situation is. that we need to do better then it's like. are we really going to accomplish. anything I don't know that makes me a.

little nervous but. I am happy to see we have some money in. Marcus kind of uh like we need to wrap. this whole picture together but we have. in a code red fund. which I don't know what that means it's. my emergency fund oh that makes sense 2. 000 bucks I'm happy with that 2 000. bucks. I would like that to be higher I need to. save more as well. 1932 dollars. oh true. so yeah this is just transferring money.

in and you do have that. 4.15 interest. um I personally by the way I just. figured this out just so you know. because everyone always asks what high. yield savings account I use. so fine so if I use that because they're. at 4.3 plus like up to 250 bonuses when. switching to them so like I wanted that. bonus and I want that for 4.3 interest. rate. so if I write that down I'll put it in. my link so you can I'll put it in my. description so you can sign up for it. but uh because that's a sexy rate I.

decided like yeah okay fine I'll put you. guys in my link because that's hot and. people deserve that rate but it's a very. sexy rate it is it really is plus those. extra bonuses like why not. 750 bucks in the money restaurant I mean. you already spent a lot of money on. actual restaurants it's my bill pay. account. um okay so it's kind of like since they. got rid of the six withdrawals minimum. for high apy savings account at the. federal level I can use it as like a. high yield bill pay account so it's kind.

of working out for me this is where you. pay. off your lights this is where you do. your minimum monthly payments for the. light stream yep me and my rent. Durant Oklahoma some random other bills. yeah bills bills bills just making sure. there's nothing. Bull and yeah. well glad we're avoiding spending. he still spent monies but you. know either way. Is this different than anything else. we've seen that looks like the second. page of um of my paid my pay stub.

uh okay it didn't print out very what's. the savings is this a different savings. so that should be my emergency nope. that's my bill pay that's my emergency. fund. [Music]. these are the Marcus oh they're just. these these numbers are wrong they um. they don't let you name it and it must. have changed it since then I'm always. kind of playing with it and trying to. find the optimum amount to deposit in. each savings account. so what are your so investment accounts. is primarily in your 401k and then you.

have a Roth and then you have an HSA. what are your funds vested in. um I have some in uh v i g a x the. Vanguard Growth Fund. um I used to do the S P 500 but I'm. trying to I guess I'm I would say I'm. experimenting with different funds which. maybe is not good maybe it's working out. so far. um I have a few random oh we just. entered a bull market so I bought. everything you've experimented with. since October has worked out pretty much. pretty much I have some in like Amazon. and uh Intel so some tech stocks here.

and there not a small percentage of it. small percentage of your portfolio yep. okay um in my 401k. I have like a I have some like a stable. income some of the S P 500 some in like. small cap and large cap some in like. International stock market just kind of. a across the board type investment yeah. portfolio. then HSA is straight up just uh S P 500. okay. okay very good. is there anything else no that's it. there's nothing else that I have okay.

yep monthly payments are gonna stack up. it's gonna make me nervous. me too like going out to eat and like. that almost 700 bucks is what you did in. the statements that we had. yeah that's a lot you didn't even go out. like a ton but they were pretty. expensive you added up a lot of stuff. dude and if we're. think about that think about what you. just said what okay I'm getting a little. upset at that what's your rent. 600.

and minimum of your payments what. they're going to be. [Music]. 994. very very soon a couple months. [Music]. so add that just to your rent so far. 2594. now do your stupid 700 of going.

out to eat. boom we have like. that's 3294 dollars we're really. starting to just minimize what we have. left over we've barely built out a. budget already. only 14 bucks on subscriptions. brick Sports web 74 bucks and another 74. bucks you just go out to Meyer a lot you. do spend a lot on gas you drive a lot. because you go to gas a lot. yeah you get things from there that.

aren't just gas as well and borrowing a. pickup truck for my uh my parents and. it's not very good on gas it's got a. massive tank too so it doesn't help. anything. okay. okay so utilities on average gas. internet electricity what are they uh. probably about a hundred bucks on top of. my rent. internet two combined with gas and. electric the internet is roped into my. rent payment okay I got like some. Community internet thing going that's an.

electric it's only 100 is your place. small it's really small. so can you pay that much yeah it's a one. bed one bath. [Music]. no offense to Holland but I don't get it. no offense to Holland it's pretty. it's pretty extreme yeah it's not a good. area yeah exactly I just that's I don't. get the price uh okay. um and then yeah we had your minimum. monthly payments car insurance. car insurance is um. so I have a program through work and.

that's roped into my um my ADP pay stub. yeah so that's so you don't have to pay. anything right so that take home you. already calculated already is accounted. for car insurance very good that's. actually pretty cool because Michigan is. the second highest car insurance rates. in the country yeah it is kind of cool. yeah it works out yeah it's ridiculous. up there uh now health insurance that's. also taken yep before very good. then with those we might start having a. bit more quicker room because usually. car insurance especially in the.

expensive car insurance State like. Michigan you know we might be losing a. couple hundred bucks and that starts. taking things away so very very very. good happy with that. groceries I'm giving you 300 bucks. minimum. and toilet paper toothpaste all that. both. anything you need. else. 100 gas you clearly spend a lot not much.

probably about 90 bucks every week and a. half yeah. for a week and a half. I guess I would total out to be. a couple hundred a month. maybe 300. from what I saw I'm feeling more. comfortable with guessing 300. that'll. make sense. in the Toyotas premium gas only which. kind of sucks.

your subscriptions cancel them you're. not doing 15 bucks to them a month. anymore it doesn't make sense if we do. this stuff. anything else about current that you can. think of in your life. not that I can think of. yeah I'm pretty low on subscriptions. yeah but we're not we're none of your. money's going to anymore. 3397 is what you need to survive so in. that markets account. of your savings we want to get to that.

number as soon as possible and then. start killing. some of this debt. of course with this. you have a strong income that's the. exciting part. I think you have trouble budgeting. I would agree would you because you're. with Chase yeah and Chase is fine would. you consider switching to something. called monzo Manzo yeah what would be. the it's a checking account but it helps. you track your spending in certain.

categories and I want you to be able to. visualize it better I think you're. having issues with that yeah that sounds. like it could be very helpful okay Hanzo. Manzo write that down also in the. description. I specifically sought them out because I. liked what that was I always just try to. gather resources and then I partner with. companies just only when they're things. that are good that can help people. and I think that's a really exciting one. cool yeah. so do them uh and also what we talked.

about earlier because once you start. visualizing you should be able to. bring home. or after all your minimum monthly. expenses for your budget that we've laid. out which you will follow to it he. should have an extra one thousand four. hundred thirty one dollars. okay and with that. emergency fund or debt. well the first month. you're putting all that in your. emergency fund starting.

end of June by the end of June. all that money. numbers fund should be at about 3 400. which is perfect it covers you what you. need to survive for a month if things go. crazy okay now. after that. 1431 on a monthly basis five thousand. six hundred that's the debt we wanna. kill 1431 so we're starting month number. two that's going to take an additional. four months so with at the end of five. months you will have your emergency fund.

cover a month and you will have a full. in your stupid debt consolidation eight. point one nine percent debt will be gone. killed no more death of which that is. yeah yeah that sounds good to me cool so. that's gone in just four months of you. canceling your subscriptions not having. Wendy's and Jimmy John's every three. seconds of your life and just not Bulls. track your spending through that monster. thing do whatever you have to do budget. how you want to budget I just like it. because it's kind of like an envelope.

system and a lot of people benefit. envelope systems but you need to get. yourself together that's what I'm. struggling with is you're just spending. so much money but if you do you have a. thousand four hundred thirty one dollars. lots of people on this show would beg. for an additional 1 431 left after I. give them a pretty strict budget yeah. they would beg for that because that. would start they would be able to start. actually making progress on there. it really puts in perspective of how. much bullcrap money you are spending. absolutely because you feel like you.

don't have much extra I mean you've. barely built up an emergency fund over. this last year right when in fact you. could have a fully maxed out emergency. fund and have that debt consolidation. gone last year if you actually buckle. down and cared about the real in life um. now. the car. you talked about selling it maybe you. can. do you like the car do you care about. the car I like the car a lot but I I. like the idea of not having the debt. maybe more. now if psychologically you do it's in.

that weird zone so this is how I think. about cars okay I have ten thousand. dollars in cash. I need a car. I'm gonna go I can get a ten thousand. dollar car that's fantastic boom there's. no debt you don't have to worry about. anything good for psychological reasons. you know congratulations that's. fantastic or. I could let take out leverage on it if. more or less. and I put two thousand dollars down that. gives me an extra eight thousand dollars. and I invest that extra eight thousand. dollars and I'm in an interest 33 I'll.

ask for cars because of depreciation. that's why usually it's four percent of. us for me but I do three percent on this. for cars and you invest the rest so. eight thousand bucks in the market boom. if it's the S P 500 and it's averaging. uh with dividends reinvested over over. 10 percent. each and every day yeah so that's great. but. what often happens there's two things. that often happen when people take out. debt even if you get a really low. interest rate is they'll just go spend. the eighty thousand dollars so it's like. well point now you're paying interest on. something that I mean you want to beat.

it in the market that's the whole point. or two like okay I'm coming with ten. thousand have the ten thousand or a car. but if I take up debt maybe I can only. put down three thousand get a fifteen. thousand dollar car and said well let's. not get a more expensive car than we. were gonna get originally just because. we're gonna take out that that's what I. don't like in your situation you're a. 5.5 interest rate I don't know this. sounds like a car that might not. depreciate as much because it's you know. one of those. one of those special Cars special cars. yeah. um and I'm not a car guy so I don't even. know what that car is that you said uh.

Brandon and the editor Threw It on. screen when you mentioned it but. it'll be the first time I ever known. what that car is 5.5 I'm just torn I. feel like if it was six percent I'd be. like all right let's kill it and it's. basically there so maybe we do. it would be worth looking into. refinancing. with where rates are today I think that. would be difficult to find a rate you'd. be happy with okay yeah. yeah it's like right at that that Medium.

point where I don't know how to feel. about it yeah but what I definitely. would do after the deck consolidation is. done regardless of what you do on your. car the student loans. anything above five percent which the. car is again so it's just like I'm so um. yeah no okay if you want to keep the car. after the deck consolidation is done. then we just start paying off the car. aggressively or. you sell it and then what what do you do.

in that situation because you don't have. any money left over so are we saving up. money to get another car yeah I'd be. saving up money. um there's a one or two beater cars in. the family I might be able to get for. less than a thousand from that are going. to be reliable for a couple years to. come and save uh question mark I don't. know no I we don't get a car that we're. gonna have to put thousands of dollars. into no you're right so I guess I don't. know at this point. I would have to figure out you like the. car and you want to do the car I do. would you rather keep it if we can get.

you to keep it I'd rather keep it okay. then let's just pay it off dude okay so. that gets rid of an extra 333 339 a. minimum monthly payment so now you have. because the consolidation loan is gone. 1770 a month extra you're still gonna go. crazy we're going crazy because you want. to keep the car you are choosing to keep. the luxury of which the car is at that. point the loan will probably be like. eleven thousand dollars let's just call. it.

divide that by one thousand seven. hundred seventy dollars that's gonna. take uh about six months because I think. I think the loan's gonna be a little. less than that then where it is at the. end of the debt consolidation payment so. six months. we were at what five months on the last. one five months total for one month of. emergency when the pain off a car was. four months so five months so yeah now. you're sitting at 11 months so 11 months. from now your car is paid off your debt. consolidation is paid off you have a one. month emergency fund oh yeah that's if. you want to keep the car what you do.

from there I don't know but that gives. you an extra 280 bucks a month from. there everything the extra 2 000 that. you now have on a monthly basis goes to. a tax student loans that are above five. percent interest above five percent. interest yep okay then anything that is. below that four or five percent. especially below that four percent maybe. of above four percent you go on attack. and then anything below four percent. you do minimum monthly payments so. they're paid off only if the extra money. that you put towards it typically.

we'll be going towards investing if it's. not going to go towards investing just. pay it off as soon as they towards. investing are you talking retirement. investing okay throwing towards your. Roth thrown towards Max Energy 401k. anything beyond that into a brokerage. something like that okay if instead. you're just gonna go spend it on both. just pay off the student loans. the interest rate is low the only point. of us not paying it off early at that. point anything four percent or less is. because we're going to beat it in the. market. don't do it don't do it if you're gonna.

spend them. I'll try my best. so. that's where we're at with where that. student loans were I think it's about a. a. year and a half at that point. so one year six months until the higher. interest rate student loans are gone the. car is gone if you want to keep it and. the debt consolidation is done then what. I need to do for where your minimum. monthly payments are needed to survive.

you'll have minimum monthly payments on. your student loan still but not as much. gonna say what you need to survive is. two thousand five hundred fifty so we. are going to get you to. uh emergency fund of fifteen thousand. dollars wow so you already have. three thousand four hundred dollars in. there so you need to save up eleven. thousand six hundred dollars you have an. additional two thousand dollars now at. that point. will take about six months so two years. this is a full two year process okay but. during that two-year process you are not.

glogging down any Wendy's nuggies. anymore I love them they're good they're. my favorite nuggets you can't have them. anymore they're done stop with the bulls. you're not traveling anymore. I mean I'm happy you traveled here and. hopefully hopefully that all works out. in a way with a few hundred bucks you. put towards is an investment for you. getting your father yeah but there's no. more traveling after that two years dude. you don't spend money on and. fun it only goes to what we laid out. nothing more try to find Less in rent if. you can I don't know what the area is.

like but try your best even if that. means living in a place for a year yeah. I don't care unless it's dangerous that. we don't do it I move in with my brother. or something okay yeah roommate roommate. situation let's go yeah so. again that's. just not spending money on fun unless. someone else is paying for it or you go. to do free fun stuff Holland on the lake. go to the beach swim around Splash. around woo. yeah winter it's cold and miserable out. there anyway stay inside.

no I like that idea staying inside is. good stay inside. do crossword puzzles. because you're not paying for. subscription services. play old old video games that you. already have something I don't care. YouTube YouTube's free. it is it's true I want you to. so that's where I'm at again. one of the big concerns that I brought. up towards the beginning. is that you max out credit cards. and then you had to consolidate them.

yeah and at only ended like a year ago. true so I'm a little nervous yes I'm. still coming off that that mindset. you're coming off that mindset. and you're still even though you've been. watching this Channel and you knew you. needed to make changes and you signed up. to make changes you were still spending. like 700 bucks on just crap food and. then also traveling as well and then. some other stuff at like hotels and. these bonus things and whatever all that. extra bull in the boots like almost 400.

hour boots yeah that was a big mistake. yeah so. I'm a little nervous because you knew. what the mindset was supposed to be and. yeah you were like nah anyway right. I don't have any words you're right give. me something dude well. yeah it's just like I said I'm I'm fresh. out of college and I'm not used to it's. been a year. yeah I mean. in the grand scheme of things it's.

somewhat fresh but it. I need to do better about. I've laid out the budget for myself I. just haven't followed it. so why haven't you been following it so. why that's it is a good question you. need to give me an answer or else I have. no faith in this I don't know I guess. I'm impulsive with the old credit card. you're impulsive impulsivity has been. one of the major issues I'd say so so. it's like you get a little Rumble in. your tumble and you're like let's just. go get some food it's Jimmy John's time. yeah okay okay so impulsivity yeah have.

you considered working with a mental. health expert on some impulsive. behaviors that you have I've considered. it yeah that might be some something. that might be something worth. considering yeah everyone should be in. therapy regardless of any issues osoever. is this good for mental health and we. need to take care of mental health just. like we need to take care of physical. health so that might be something worth. considering and I would happily put them. in the budget you already have health. insurance through work take advantage of. it yeah that's a good idea so if that is. something that is good for you in the.

long run in terms of taking care in. terms of locking down your situation and. living a better life and absolutely. let's put that in the budget even if. that stretches the situation to three. years I would rather you be more like a. 90 chance of you getting out of the. situation in three years with mental. health then like a 50 chance of the. situation. uh in two years because you don't have. the support system right when you put it. that way. yeah I think I have to look into that. for for sure yeah.

because also. even if the fire is not under your butt. for six months six months is nothing. compared to the two years it would take. six months is nothing compared to the. three years it would take with support. yeah so someone keeping you on guidance. you being very open and descriptive. about why you're there and some of the. issues you're dealing with and where. you're trying to get to in life is very. important. and sort of like most people should do. on here and luckily you have more extra. income to work with than anyone else. after my pretty strict budget.

right. yeah I mean it makes perfect sense when. you lay it all out like that. I've never. taken this type of Deep dive into. everything. clearly that's important uh we got into. the nitty-gritty it's important then to. take a step back look at the grand. scheme and where the grand scheme is. if you finish this in three years. because you took advantage of mental. health help then you're 31. 31 you're. maxing out your Roth IRA every year. until you're like let's just say 60 for.

example and you're putting as much as. you can towards the 401K trying to Max. it out. and then on the money that you're. pulling from if you're if you both max. out your 401K and your Roth IRA then the. money that comes in after that. or the money that's left over that I'm. happy if like 60 of it is needs and 40. of it is on fun live life right. maybe you minimize those percentages a. little bit because you want to start. saving up some to get a personal.

Residence at some place. but yeah I mean either way if you're. maxing out your 401K and Roth IRA. go spend the rest on need some fun I'm. totally happy with that but when you do. that big picture again I wanted to lean. back. you're retiring a millionaire you're. retiring likely a multi-millionaire. you're living a great rest of your life. and what's necessary to do that now a. temporary sacrifice of a few years of. not having some Jimmy John's yeah and. have you seen the dude who founded Jimmy. John's. I don't know if I have Jimmy John. leotone he or leotard whatever he other.

than lean on naked with fish look it up. it's weird the dude's like 600 pounds so. Jimmy John's isn't that good for you you. don't need to be having that every day. interesting okay yeah I didn't even got. that surgery where he got his stomach. reduced to 10 and he's like 500 pounds. so oh my gosh. yeah we don't need to be eating that. every day I only say that because I. worked there and he's kind of a. creature yeah I've heard some some. things I guess I yeah. all you have to do is cut that back for.

a few years and. yeah easy multi-millionaire by. retirement if you start going crazy and. having a good time I mean that sounds. good to me. what will you actually do knowing. yourself what will you actually do I. think one thing that's word for me is. just leaving the credit card at home. when I leave my house I've tried that a. couple times and always works you don't. think you'll be impulsive with your. debit card no because I I do my um my. direct deposit in a way where the money. kind of works out where all my. day-to-day spending is on my credit card. then it paid off with the the debit.

account. so I don't really spend anything on my. debit card I'm pretty good about that at. the very least. so it might work it might be something. grasping at straws here do what works. for you yeah yeah. so go on. um I definitely need to. put this budget probably in like a. visible place in my house where I can. see it every day. so it doesn't fall out of sight out of. mind type idea that'd be a good good.

place to start. but I think with those two combined as. well as you know with the mental health. idea and the you know the impulsivity. with with spending I think it could. really get somewhere all right cool do. this go back to Michigan and put some. Vernors in your grocery budget for me. okay yeah you got it. that's some good stuff all right for. Mitchell in his hammer Financial score. overall you know his spending he was. spending way too much when it should be.

going to high interest debt so I cannot. give it higher than a two out of ten. it's better than some people we've seen. so I'm gonna give it that two at least. that again not the worst we've ever seen. but it's still not good three out of ten. retirement I'm actually pleasantly. pleased where it is is it perfect not. even close but four out of ten emergency. fund starting to make progress not where. it needs to be in total 2 out of ten. real estate not in that conversation. zero ten for now but he was spot on that. Aggregates down to two out of ten and.

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