Worst I’ve Ever Seen | Financial Audit
I'm Elise [music] I'm based out of. Houston Texas I'm 24 and this is. financial audit what do you do in. Houston [music] for a living I'm a. cashier at HB. oh this explains okay so I wasc. yeah all those HB purchases those are my. takitos yeah your Taquito dude you're. going crazy and I wouldn't you got me so. if we're cashiering at HPB what are we. making an hour 1740 we making 1740 how. many hours a week uh about 25 to 30 okay.
so 25 and 30 if the thing my I'm. studying for the elsad to go to law. school so that takes up a lot of time as. well okay so that takes up time I'm okay. with you working a little less hours if. we're studying for that to get into a. law school to do the career we want to. do but if we're doing that why are you. going crazy with your spending. that's a question I don't really have an. answer to oh you got to have an answer. to that if HB pays you why are you. giving them money when you can't afford. to Simply live.
I guess it's convenient since I'm. already there. and I'm like well I'm going to be here. anyway so it doesn't kill to buy a. bottle of water or whatever bottle of. water well not are you not allowed to. have like an actual water bottle yeah we. are I have one but I go through it. quickly so you refill it. I've been to many HBS I know there's an. employee section I've walked by water. fountains personally on the way to the. bathroom MH is that less convenient than.
going grabbing a water bottle checking. it out bringing out the cards swiping. um not really. it's not uh how do I say it it's not. less convenient no I understand your. point then why are we not doing it don't. really oh come on why are you making the. active choice to do it. I know I'm digging into you right off. the bat mhm but that's only cuz you just. said you work there I was I was going to. ask about all those purchases but the. moment I heard you working HB and we're.
like we're going and spending multiple. multiple endless just swipe swipe swipe. swipe swipe every second of our life mhm. it's like what the are we doing they're. supposed to be giving you money so you. can save up so you can survive yes but. then you give them money right back. yeah you're right I understand what. you're saying but you won't tell me why. though I mean I need your why. I mean I can't really come up with a why. other than I'm just plan poor.
yeah okay is it laziness yeah okay so. laziness would be the why mhm have we. never set. you're going so every month M we're. going through we're missing payments on. debts MH we're not having enough money. in our checking account to survive MH. how is laziness an option in that. situation. if I'm being honest I still live with my. dad I graduated college in Maine and I.
moved in back home but you I live with. my dad so I haven't really. how do I say it um had to be responsible. if that makes sense don't you have to be. though you're missing payments on your. credit cards I do I do have to be. responsible I was going to say where. where's the you don't have to be. responsible so sure okay if we're not. being responsible and we're just like. okay we're just spending money because. we don't have to pay rent like that's a. thing but right now missing payments.
right on a contract that you signed for. multiple cards and you're not having. enough in checking account correct so. since May right is that what you said I. graduated in May yes okay so since May. why have we not sat down once and been. like okay here's what's going out on a. monthly basis I've recently done that. like I said over the last month when I. found your channel and I'm like oh my. God like I'm spending money poorly and. since then I sat down and like I budget.
and like I have my iPad so I went. through and seen everything that I have. all the debt I have what I'm spending. stuff like that so we had [snorts]. $1,348. come in. yeah that sounds about right if you. weren't living with your dad that's not. livable at all no now you're trying to. go to law school mhm any specific or. does it matter not yes is it specific I. want to go to a good law school but yeah. yeah that's debatable on what's good so.
and also how much does that matter in. the world of law it matters a lot it's. not like um going to undergrad and you. know getting a degree from anywhere it. doesn't matter getting a degree from. anywhere in undergrad is fine for the. admissions process but where you go to. law school gives you access opportunity. Prestige stuff like that okay so we if. we go to a good law school probably. going to like a private law school I'm. assume not necessarily like okay so a. good public one.
UT is one here in Austin that's one um. another one is the University of. Michigan that's a public one and that's. out of state very far yes Yes Virginia. that's another one on our state so this. all of a sudden becomes very expensive. if we're. getting overdraft in multiple checking. accounts and we not even able to pay our. credit cards how in the possible are we. paying for law school. basically loans that's what my parents. want me to do and if I do it well enough. on the lside I'll get scholar.
your parents why do why do we care what. they want you to do I mean your life is. your life that's true but living with my. dad like a part of his agreement is I. have to go to law school or basically I. have to move out and he wants me to stay. in Houston but I don't really want to. stay in Houston unless I have to but. that's his big thing he went to college. and he got several degrees and he's like. your future is much bter than mine. that's what I told him and like recently. told I don't give AIT about him this is. your life I told my mom I want to work. for a couple of years so I can pay off. all these debts and then go to law. school when I'm ready and she was like.
that's not smart you need to go as soon. as you can I'm like are they wealthy no. we're very much Suburban in middle class. okay so they sound like yeah the people. we should be listening to no they're not. exactly so why do you care I mean I get. why you care but why are you listening. because I don't want to live on my own. cuz I can't afford it well you said if. you worked for a couple years to pay off. the debt I can get you to the point. where what' you what you graduate with. an undergrad political science I mean we. could get you a job in a sector that has.
high demand still is it the dream job. probably not but only for a couple years. you could have an apartment on your own. in the Houston area or wherever MH and. we could start paying off these debts. and we could have enough money in our. checking account I'm sorry but if we're. I want you to go to law school that's. fantastic and even even if you borrow a. little I mean depending on how we're. doing some things there can be good. return on Investments as a Nuance. conversation but with the money habits. that we are about to go into with where. you're at right now now and how you're.
operating you just taking on an endless. stream of student loans to go to law. school means you are just dying in debt. and that's something else my dad like I. said went to school got all three of. these degrees he's still $100,000 in. student loan debt 20 years later again. him he's clearly he doesn't but he's. saying that's okay for me to do and I'm. like it's he's addict to school he's an. addict to school he's just one of the. classic. I Love College college is a great path.
and there's smart ways to go about it. there's stupid ways to go about it but. there's some people that only assume. that going to college getting the degree. is what equal success and having that. degree having that piece of paper is. what they clamor to for the rest of. their life I don't give a sh the success. you make on your own showing what you. build in your life not just a piece of. paper that comes from your past is. actually what determines your success so. I don't give a about his opinion I. don't give a sh about what he says this. is your your life your life not his life.
we're not doing something to make. someone else proud we're doing something. for you and again if you want to go to. law school that's awesome let's. absolutely do it but with what we're. about to go through here now you just. continuing down the path of just taking. out any debt possible. is going to lead to a situation where. I'm a little nervous. yeah I agree what's your score 0o to 10. oh fin score it's a straight up zero the.
only caveat is I have a small small. small small contribution to a 401k how. much literally like $300 I just started. this year small indeed okay well why why. are we even contributing doesn't make. sense there's a match okay so we owe on. a Capital One card MH let's get into. this cast this is about to just [snorts]. be crazy okay so we owe $540 51.
with a minimum monthly payment of $25. and interest crude of $134. half the bat I I do have to ask out of. curiosity just a just a little curiosity. why that possible are we spending money. on a card that we're not able to pay off. that is AC crewing interest it's a. question that I've asked a thousand. people and yet somehow it still comes. here and ends up on this desk. well when I was in college I took that.
card out my logic was well I'm getting. my student loan refunds and I'm getting. all my scholarship and grant money I can. just pay it off but no that did not. happen and here it is 6 months later. that did not answer the question this is. something you just did why are you. spending $27.97. and a card that you cannot pay off that. is AC crewing interest oh wow I didn't. even know it was that much. okay so okay you have not sat down once. and looked at your money in any way. whatsoever have you just spending not.
really no I kind of avoid the statements. I get that I mean when we know we're in. a bad place it can be anxiety inducing. to get over that hump to actually take. the look so let me take that look for. you okay Taquito Wing Stop Starbucks. taquitos Chipotle Taco Bell taquitos. Chick-fil-A Taquito Taquito Taquito. Taquito Taquito Chick-fil-A Starbucks. Taquito Chick-fil-A. potential Taquito to B bies cuz you. never know bies can be expensive taquito. or it can just be we're getting gas I'm.
not 100% sure then Taquito and some. taquitos. I'm sorry. but also not cuz this was you doing it. right but. this. this right there guys that right there. that right there mhm you already have a. car oh that's gas oh the bi one the I. see the bies one okay I didn't highlight. it though but the highlighted stuff. right here.
is bull it's around it's things. we don't need to be spending on there's. 1 2 3 4 four out of the 20 25 people. always ask me what high yield savings. account do I use for my own money some. of you know by now it's Sofi I love them. it's great for my check-in account needs. it's great for my high yield savings. account needs and right now I'm getting. 4.5% interest on my monies I love that. rate on my money Mones so if you want to.
get a great rate like that on your. monies just check out the link in the. description below I have a paid. affiliate link there you can get bonuses. all the way up to $250 and I took. advantage of that and you should too. four out of the 25 are purchases I could. consider okay whether it be groceries or. gas and that's what the other ones would. be mhm everything else Wasing around. we're doing that on a card that we can't. pay off and that is having interest of. crew on it yeah you're right I mean I. can't I'm not going to sit here and bull. your face or the audien is either you're. right right I'm spending money that I.
don't have. why is it all going to like few spending. though like stupid eating out and stuff. like that why is that where your money. is going right now H every day of your. life um. I don't really have an answer. it's easy just to swipe or tap my card. and keep it moving and like I said most. of those are just poor planning. so I think that comes to the laziness. aspect and then maybe just lack of.
discipline as well around that. 3.49%. is the interest rate on this that you're. choosing to have because you're just. whatever you pay on it you're. immediately just blowing up again $81 of. Interest has been stolen from the EU. this year so far and $25 of fees likely. a Mis payment um not this statement. balance or not this statement did you. miss a payment but. probably historically and why do I think. because here synchrony immediately I.
mean come on why are we why are we not. making how are you missing a payment how. are we going and spending $225 on just. just Chick-fil-A to keto's death why are. we doing that but we're just not simply. making a minimum monthly payment on a. card. you have chosen to kidos you have chosen. Chick-fil-A. over actually dealing with the bills.
that you have signed up to pay mhm do. you not care I do care this is not. demonstrated I do care. before like I said before I really comb. through my finances I was like well well. I'll be honest I guess I didn't care but. now over the last few months I'm like. where is all this money like going. and um so if you didn't care before I'm. curious like what has made you. graduating college and realizing oh sh. can't survive on my own and my parents. aren't going to help me forever so it's.
the fear surrounding that yeah and. another fear is I want to set myself up. now in my mid 20s so I can be in a safer. place the rest of my life so yeah that. makes sense now okay you started wanting. to change after graduation this was your. most recent statement though mhm. so this just happened we were just like. nah but also during the summer like I. was trying to transfer stores so that. was taking a bit of time and my store. was like an hour away from my house so I.
was spending every last dime on like gas. like every day I was like filling up I. can sympathize with that if we didn't. just look at the statement through the. same exact time of you just around and. spending money on 250 bucks which you. had a minimum monthly payment of $40 MH. you could have paid that I could have I. chose to ignore it there it is. we have a new minimum monthly payment. due because of the the pass due and.
everything of $117. so normal minimum monthly payment of 40. which is what I'm going to put down we. have a we owe $1,280. on it and 56. now $23 VCH is AC crewed on it death and. $40 $40 of fees $40 of fees because you. just didn't pay it and if you only make. the minimum payments if you're not by. the way you're not even doing that but. if you only do it's going to take seven. years to pay off and it's going to. charge an additional $1,250.
$1,250 stolen from you but it's even. worse than that because you're not doing. it total interest this year so far. 200. $84.50. $300 in just interest like I said I. avoid the statement so I did not well. we're not avoiding anymore we're a big. girl and we're going to like take care. of our life M cuz your life matters your. life actually matters but in order to. actually take control of your life we.
have to address some of the issues which. is why you're here so and then total. fees 180 bucks and if it's $40 per. assessed fee I mean come on $189. you've missed like almost every payment. this year so far yeah you're just like. it's just like we've given up we've just. given up on our life on finances. yes and no um during I really didn't. work very much over the last from like. January to March my grandfather passed.
away and um that was hard and I was. trying to finish college at the same. time and that was hard that is very. difficult so I didn't work from yeah. like I said from January to mid-march. did you try to contact these um no I. don't know if they would have but. sometimes some credit credit uh some. banks can have some sympathy if you like. say if you explain what's going on mhm. would you at Le try no.
so you just let everything just fall. yeah you could say that credit scores in. the 500s High 500s now it's up it's 640. now but okay so we have a Discover It. Card with $697. 84 owned on it mhm $93 of payments good. so you made payment and that was more. than the minimum monthly so that's also. confusing because you should have just. paid the last one this is just. unorganized in just messing around $17.
of Interest acrew. no purchases on this which thank. goodness. and it's a 27.24 per interest you've. lost $137 of interest on this card so. far in fees likely from a Mis payment of. $30 this year so far. tdcu. mhm Credit Union mhm we owe $2,558.
kill me now I mean on your income that's. just R we can't do that then if we're. going into law school with all this this. is it just doesn't make sense all of. these credit cards I took out while I. was in college because I thought oh I'm. going to pay them off when I get my um. refunds but nope I treated them as debit. cards and spent all of that money so. that's and the refunds anyway is still. money you owe some of it. about the rest from like pel grants yeah. I got I got pel grants and there like Co. grants and I had a few scholarships so. truthfully I could have paid for it but.
nope I took out loans yes oh go there. $25 of L fees. another account with L fees this just. demonstrates that I'm sorry we just. again we just don't give a sh you said. you started given a the graduation but. this just happened yeah you have not. demonstrated that you care at all $29 of. Interest stolen from you $30 essentially. and $25 fees truthfully if I'm being. honest while I was like I said I was in. college when I took most of these out I.
didn't really care about the fees and. stuff I cared about impressing my. classmates and boys that was in college. when you took this out this just. happened in terms of you not paying mhm. like I am not going to bully you for. something you did in college taking out. the cards I am going to bully you for. what you're doing right now as a wakeup. call Cuz if anyone needs a wakeup call. that I've talken to recently I'm sorry. it's you that's cuz I care about you and. do not let me for a single second care.
about your situation more than you do. cuz your future matters it does a lot. 13.99% interest on this I mean it's. still disgusting but compared to normal. credit card rates it's not the worst but. your balances of course aggressively. $125 of fees so that means you've missed. five payments this year so far on here. based on their fees that we just saw. five payments five. so for more than half the months of this. year so far Caleb I just told you I. didn't work five of these months this. year so yes but this you are working the.
month that we just looked at mhm I'm. sorry let's not try to justify $264. of Interest charg this year. oh God so we've had well over $1,000 of. Interest dragged from your life in. existence I'm not ready for that one I. know oh Lord yes this one is going to. get on my this one Insanity I got this. car last May when the car market was. high I walked into the dealership all by. myself because my C the one that I had.
broke down basically so I was like I can. use sell this and use the down payment I. could basically just let the um the car. salesman [clears throat] just run my. credit and I was like whichever one I. get approved for just do it but I got. approved for several but I was just I. get approv for just do it yeah and now. here I am with that high interest rate. I didn't capture the minimum monthly. payment for the TCU. it's like 51 [clears throat] oh you're. oh oh my gosh on the TCU you're over the.
credit card limit of $58 I didn't even. see that. $87. so you walked why didn't you like uh try. to go with someone. I was trying to hide it from my parents. oh. [groaning]. it sounds like he your dad's addicted to. debt anyway so I don't care yeah this is. true.
he injects that into his vain student. loans all day I know it's been passed on. to me but I'm got to take responsibility. absolutely late charge that car note is. high as I can't afford it you're right. you can't afford it you shouldn't have. gotten it why have you not sold it. here's the thing I'm going to be. underwater with the loan I've looked up. the value with the car I'm going to be. underwater like $8 $9,000 mhm there's. methods to do it we'll take a look with. no savings so I know there's methods to.
do it I the interest rate I could not. find out the statement what's the. interest rate of this oh please 17.7. [sighs]. $ 23,812fanslike. and hit these goals M you work we work.
40 hours a week and then we study an. additional 40 hours a week it's is not. an option you have no other life but. just grinding because you've you've. around for so long that now you have to. pay for that and that sucks I'm sorry. but that is the reality of the situation. it is and now I'm realizing I have to. take accountability for my actions and. work to fix them and I yeah. what's the term on this do you know how. many months uh it was 72 the yeah 6.
years my life. it's till September 2028. it's a 2020 2020 Toyota Cora any damage. anything anything not really no let's. check the value it's about 15 16,000. well you tried to hide it from your. parents but now this is in his driveway. every day what does he think. the same as you he was like why didn't. you tell me I was like what. so I was bit confused.
I'm saying it I'm seeing it go about. 177,000. depending on where you look yeah yeah on. private sale I didn't even think about. that I looked at the one for a. dealership. that's it's KBB value and KBB these last. few years have actually undervalued. things I don't know if they are anymore. but. it also depends on of course the actual. version of the car but so what we would. do in this situation usually.
is okay so you'd be underwater $5,000. just about what we do instead of you. having to pay $23,000. on the 17% cuz this would be such a big. change for you $10,000 is a lot we could. save you $110,000 by you borrowing. $15,000. personal loan five of that 15 goes to. fully paying this off the sales price. and the five okay the $10,000 this would.
be like a personal loan M you'd be able. to qualify at your credit score the. interest rate is going to be death but. you're already at death you uh get a. $110,000 car. that's the finessing that would have to. be done when underwater and compared to. a lot of other people that bought it in. a High car market you're actually not. underwater drastically. okay this is this is bad and you can't. afford this at all it's as simple as. that not on this and at least I think. you could be making more money I think.
you could utilize your degree honestly. I'm a bit complacent comfortable doing. this job for like 5 years so I'm sorry. but we this can't we're not comfortable. anymore it just can't be a thing that. only you can change that I can't do that. for you I can help create a budget and. all this stuff but only you can change. your comfort level and what you want to. do to actually attack this I realize I'm. not comfortable anymore after just going. through my stuff and it's like I've been. looking for jobs that are salary paying.
jobs and whatnot I just honestly don't. know where to look like I've been. Googling like stuff but I don't know. where to look honestly the title of this. video might be this is the worst. financial situation I've ever seen. because this might be the worst. financial situation I've ever seen it's. it's very there's a few up there that. are tied MH it's it's and I'm sorry I'm. sorry that you're doing with this I. really am but please allow this to be. the wakeup call and I need you to I need. you to give a so this AT&T what even is. this what is all this that's owed it's a.
phone an iPad and Apple watch. you're not even wearing it I left in my. car but yeah you're right pass du $56. have you what when's the last time you. made a payment on this thing couple. weeks ago I'm caught up now you're. caught up now so this is done mhm no no. no no no it's not done but this is like. the past dues are all done on this yes. what is owed on a normal monthly basis.
with this about 230. 230 that was behind like what's owed in. total nothing is owed on the phone cuz I. tra got trade in value about 286 is owed. on the watch and like 900 is owed on the. iPad no you don't need an iPad I was in. school when I got it I don't it's not as. good as a laptop anyway. it's like 1,150 is yeah could say that. what what's the interest rate is there. an interest rate wasn't one no 0% but.
you're yourself with the late payments. anyway. do you know anything on this new phone. no how I got a trade in mhm I got a. trade in value and it fully covered yes. okay yeah you killed yourself on this. one this is not something you needed to. do we did not need a watch I love my. Apple watch I I budgeted it yeah I. didn't eat it. I would I might just honestly try to. sell healthy Apple watch I tried to.
return it they didn't well return might. yeah it's probably not an option I think. we try to sell it how Facebook. Marketplace something like that okay cuz. it Doesn't if you can you said you owe. like 250 what's the Apple watch what is. it uh I'm not sure SE series 8 s I'm not. I'm really not I just said I wanted an. Apple Watch and the cheapest one and. they got it. okay well if we can say anything we want.
and it just happens then I'm going to. say please please save us all from the. chaos of this financial situation and. hit subscribe it'll make me feel better. hopefully it'll make you feel better but. it'll make me feel better we're trying. to get to like a million subscribers I. can't believe I'm even saying that maybe. 750,000 I I don't know if we there at. the time of this but thank you to. everyone who has subscribed so far I'm. sorry you're going through this [sighs]. oh but you always got to call out the. Subscribe button. so [sighs].
we have a Freedom Card mhm yes so much. Freedom owing $1,233. so much freedom and 10 cents with a. minimum monthy payment of $45 these. minimum monthy payments are just ruining. your existence $33 of Interest loss on a. monthly basis. no purchases good $29 of fees this year. so far so we've Miss payments and 20 $1. of Interest charged this year so far.
thousands of dollars in the drain this. year of Interest charged so far and. you've barely even made that much. then we have student loans MH of which. if you set up the minimum the the. payment are you on are you on. traditional income what are you I'm on a. grace period right now because I. graduated long I graduated so it's until. November but then after that I got. another grace period already till next. May and then after that what's the other. grad period for you just get another one.
if you request it after you graduate. okay so minimum monthly payments are not. going to start like everyone else. correct and honestly I mean we've talked. about income based repayment here I mean. and then you go if you go to law school. well but income base like I would almost. do it for your situation simply because. you cannot afford it correct but income. base is a little difficult because a lot. of interest are Cruis during it and it. really seems like they're forgiven per. Administration and I don't want you to.
be they are that yeah there it just. depends on you know I know this it just. depends on who's in office at the time. and who's running the Department of. Education and yeah exactly and I don't. want you to be in a situation when yours. come up for forgiveness that is to. someone that's like no we're not doing. that and they're very select who they. approve for forgiveness so there's just. not a really good history of it it's. gotten a lot better recently but there's. really not a good history of it right. interest rates they're not terrible four. 5% yeah they're not crazy.
we ended with $5 in a tdcu checking. account we ended with $5 we can't. survive with $5 if we're ending with $5. why are we possibly tooing why are we. possibly tooing. why are we possibly tequito and toitoine. in Quick Quack. probably tequito honestly based on all. this stuff. Car Wash yeah it's a wash why are we. wash it if we have $5 in a checking. account we're not washing our car I. don't give a if your car has this.
car that you can't even afford you can't. even afford this car why are we washing. a car that you can't afford washing the. car you washing the car we can't afford. it it's right it can't be dirty yes it. can be who gives a what it looks like. you're in it you can't even see it who. are you trying to oppress that you're. pulling up to on a stop next you know at. a stop light who are you trying to. impress who gives this if they look at. your car they will not remember a five. minutes later unless you have like a. crazy painting on it or some weird you.
know. yeah they won't remember so who cares. who cares who are you doing this for. yourself once you're in your car you. don't see it anyway. you're not wrong I'm not wrong. probably Taquito ATM with draw of $280. was that $280 going we have no idea. Chick-fil-A more ATM would draw $280. where's it going no one knows taquitos. cruising.
insufficient funds insufficient funds. [snorts]. so you got overdraft. did you at least try to call them get a. reverse it was reverse on that one yeah. it's kind of easy with a credit union. yeah. total overdraft years fees this year so. far $352. I'm I'm struggling here I'm struggling.
to pressure is like. but I shouldn't be struggling more than. you though. $398 in another chicken account I'm glad. it's at least there I want it to be at. least a thousand because you never know. what's going to hit with automatic. payments but even still I'm happy it's. at least there what I'm obviously not. happy with is TA kidos and taking to. roads we're not taking tot roads when we. can't even afford to live you're. affirming things things you're affirming. things I did ketos and Paramount.
Paramount that was automatic payment I. didn't even know it was there until it. came out and I canel we're getting F I. love F but why are we getting F when you. can't even survive and taquitos and. Dairy Queen and Taquito and Taquito and. Taquito and Chick-fil-A and Chicken. Express. checking account negative $11.69.
negative. okay I'll explain so I have a few. checking accounts so I can move money. around um want money none really okay so. why um so I could like try to pay bills. and if I overdraft some banks are more. forgiving than others but you're. overdrafting everywhere anyway and. you're not making the bills pain there. there's no logic there's no logic. we had to get another Car Wash we had to. get another car wash we had to get.
another car wash apparently Spotify we. can listen to ads while we can't afford. to live and an apple Bill oh double. Spotify good. why double Spotify. you know it lines up It lines up they. just they paid you instead of like 28. days it was like 27 days okay total. overdraft fees this year so far $112. $112. we're not even making the payments or we. have the negative money in our checking. account okay sorry I know I'm digging.
into you like crazy but this is this is. a lot for me to take in this is hard. this is rough it is. transportation cuz your car cuz of gas. cuz of car insurance it's 33% of your SP. I don't pay car insurance my dad does. you're right it's your loan that's. pretty much what takes it up and then a. little bit in tolls and a little bit in. gas transportation 33.5% of your. spending phone and internet probably. just those extra yeah it's the iPad and. uh $227 11.4% of your spending.
bull food and honestly is going to be. higher because I think they cont. contributed a lot of the necessary food. as your little HB uh purchases uhuh. they're not so I think your bu food your. taquitos and all that stuff add it all. together it's going to be about 25% of. your spending 25% of your spending is. stupid because only 18% of your spending. oh sorry no let's call it about 30% cuz. there's miscellaneous unknown shopping. 12.4% let's see where that went unknown.
shopping Target we don't know or some. other large purchases we don't know so. we can safely say 30 to 35% of your. spending went to bull bull bull when. only 18.2% went to debt payments meaning. we could have more than doubled doubled. what was actually going to debt. this is an active choice we are making. we are actively choosing to around. instead of actually get our life in. order I would not for a single second go.
to law school yet I'm not ready to not. just like financially but also I'm not. ready to do all that work yet when I. could do work had a job and pay off I. was going to say cuz no matter what. you're going to be working your I'm. sorry but that's the prescription that's. about to come it's it's not an option. I don't I I want you to live the best. life ever I want you to live such a good. life going down this path that you're. going right now is seriously dying in. poverty I'm G die on the HB floor yes.
yeah God forbid anything like happens. where you just can't work what are you. even doing then disability is not going. to cover. anything. it's hard but yes I would delay law. school for a couple years I again I want. you to go I want you to save up I want. you to pay off debt go in with an. emergency fund even if we're borrowing. some for school that can have a good. return on investment if you do it in a. smart way again I would prefer something. in State something Public University of. Texas I wouldn't go private even.
University of Michigan I know they're. good school I'm from the state of. Michigan are you yeah I'm from cazo so. the west side but. but even still MH the amount the return. on investment you're going to get on. that versus going to University of Texas. is going to be essentially nothing. nothing it's going to be nothing come on. let's be realistic it depends on where I. live it depends on what I want to do. after. yeah but you're not going to live in an. arbor there's nothing there but if I did.
get a degree in an arbor I could go work. in a state like California whereas if I. got a degree here in Texas it's not as. transferable if that makes sense I I. think you're overthinking that really. aggressively the only yeah I agree if. you go to like University of Samoa like. uh. better call saled or whatever his thing. was yes that's not going to hold the. same weight as University Texas. University of Michigan and obviously. something like. more weight than University of Michigan.
University of Texas University of Texas. University of Michigan I can't speak on. their first of all the school ranking. things they're all anyway because a lot. of it depends on affirmative action and. stuff no no not just that but a lot of. their rankings isn't even based on the. success of graduates it's like based on. how many foreign exchange students are. going there and a lot of stuff like that. it's it doesn't really make sense but. even on their school rankings can speak. for the law school but the schools are. pretty darn close overall when it comes. compares to every University so you are. overthinking not saying go to some. school in the middle of nowhere that is.
no one's ever heard of but if we're. picking between our future and return on. investment I am picking the University. of Texas any day and every day and you. probably will after I say this the. tuition at University of Texas is about. 35 tuition tuition at Michigan even. though it's a public school for out of. for instate students it's like 70 for. out of state students it's only like 75. so it's double what it would be here and. it's that you're not going to have the. return on investment you're not the only. thing you might miss on is some alumni.
networks but University of Texas anyway. they have the largest um endowment of. any college in the country public I. think they have. what it might be& M but it's the. University of Texas it is the University. of Texas. it doesn't matter no it kind of does to. what I'm about to say if you're chasing. the Alumni network type thing reason why. someone has such a big endowment is. because the network is huge there's a.
lot of rich mother who are giving money. you're going to be surrounded by a good. Alumni network all over the country and. this is going to sound stupid as well. but I also want to go to a bigger school. because in undergrad I really didn't get. the college experience so I kind of want. to get that in law school that makes. sense it kind of does to a certain point. like I went to a really small school but. I think for the people and this is. unfortunately a lot of Americans for a. lot of Americans the best moment in. their life is their four year in college. and that's incredibly sad and depressing.
because it means the best years of their. life is behind them forever instead of. them actually going out in living an. amazing life they just fall into the. normal everyday traps of life and then. they just look back to their walkable. years on a college campus when they. actually had friends instead of living. life you can get a better life if you. choose to and actually go and meet. objectives that you want to do that. aren't tied to just going to college mhm. yes it's it's fun it's fun I had fun.
most people most people I know but most. people Co kind of ruined it sure but. again we can have fun anyway but I. promise it's really just sad and. depressing if someone's best life and. everything they cling on to in their. life is a college identity because of. something they experienced a few years. ago few decades ago whatever that's sad. and depressing you're more than that. life should be more than that come on. we're not just going and spending first. of all University of Texas this is a. massive school anyway so it is this just. like go there versus something out of.
state inexpensive. I'm sure there's going to be a lot of. people that disagree with a lot of what. I said that was more opinion based stuff. anyway because you can't factually say. that it's depressing that you know. someone just clings out of college and. that's their entire life but that's just. my opinion and it is depressing. what are we going to do about you though. what are we going to do I need a higher. paying job you need a higher paying job.
or you need to work double the hours. that will only let you work up to 35 so. let me go get a second job yeah rent you. pay nothing no you pay anything for. utilities and so you're living there. completely for free you don't contribute. anything no okay perfect good cuz really. don't have the room. but like I said if I don't go with my. dad's plan and he's probably going to. kick me out is he really that much of an.
uh he is really a stickler with that. education yeah yeah he's an addict he. needs to stop I swear there is more to. this life than a piece of paper on a. wall my goodness people are sad granted. this is a man that has a Doctorate in. Education so well so he really is an. addict yeah. $1,028. is your minimum monthly payments minimum. monthly payments just on your debt but. you bring in $1,348. yeah so there's really nothing gas did.
$90 I'm not putting tolls in your budget. CU you we're not taking toll roads. how do you how do you how do you how do. groceries and everything work to the. house do you eat what's there are you. able to put stuff on the list and they. buy it MH okay so I can put zero mhm. okay and you're no longer going to eat. out ever yeah as it's not an option in. your situation I'd love to go to a. little bit of wiggle room but I can't.
your Apple bills Spotify peacock again. I'd love to get a little Li a little. wiggle room you simply don't have wiggle. room you're canceling all subscriptions. it doesn't make sense I'm sorry that I. have to be so strict on it it just. really doesn't make sense. affirms how many how many are the. affirms done or do they continue I still. owe like $300 on them. so that adds an extra $42.
a month you onto your debt so. oh man okay so 300 for firm there's good. ways to do it there's bad ways to do it. you did it the bad way. okay any other minimum monthly expenses. you need to survive do you like okay. because I know we're just in the society. we live in just I want you to feel. comfortable I want you to feel happy and. stuff like that make up all that stuff. what you need survive can I give you 50. bucks a month and is that okay yeah.
[snorts]. okay anything else no okay so debt. minimum monthly payments. oh what's your phone bill do you pay for. it yeah how much is that 220. or underwater that pushes 220 yeah okay. so your phone is financed yeah no not. the phone because like I said the phone. is paid for but it's the service like.
the actual like service you know what I. mean it's not just 220 through who. through AT&T it's the Service Plus the. Apple watch plus the iPad oh so that Min. P that minim monthly pay payment you. gave me was included self-service yeah. it's all together what's Okay okay then. yeah that won't be in the budget okay. okay okay okay hey TNT what are you. doing guys. what's that praying on people. okay.
anything else medical. this that this oh yeah I need 30 for. prescriptions but my dad sometimes pays. for those. can we rely on him to do it or should we. put it in the budget no he'll pay for. those okay okay. I sound kind of privileged oh my. compared to others well listen. I don't have kids and they're smelly and.
stinky anyway but if I did and if they. were in a terrible Deb situation that's. is how they found themselves in but. they're coming to a position where. they're like waking up to it and they're. willing to do the sacrifice I would be. happy to support not enable but support. them there is nothing wrong with him. wanting to support you if you are. actually doing what's right now if. you're continue around like in the most. recent statements we just saw and he's. supporting then yes that's enablement. that's not going to help you in your. future like even I went through him with. my dead total and it came out to about. what you're saying he was like well at.
least you're breaking even and I'm like. Dad that's not smart he was like change. the conversation I don't want to talk. about this immediately. because he's I'm sure no I'm sure okay I. know I've I've joked on him I've I've. goofed on him and I on him a bit like. I'm sure he's a very smart person in a. lot of different ways when it when it. comes to money and debt he's a dumb. we're not listening to him anyways. yeah $1,210 what you need to survive me. you have $100 left on a monthly basis.
essentially $100 $138. mhm. I could I can't do $100 can I cuz I want. you to have a one month emergency fun. then I want you to start paying off the. debt and at it's going to take like 25. years so it it just doesn't make sense. I want to take a brief moment to thank. today's video sponsor Aura are you sick. and tired just like me and everyone else. honestly of receiving endless spam calls. every day I mean look at this let me.
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ARA for sponsoring this episode I have. to get another job. that I mean that's the only option what. I would do is I'd either get another job. or get a second job whatever it is um. I'd minimum be trying to bring in at. about 3,000 bucks a month which I know. you can find in Houston I know for a. fact you can find in Houston I don't. know where but you're probably right cuz. I know you can walk into Jimmy John. uh of which I've cut back on but you.
walk in there they're like oh please. work for us we will like do anything and. everything in the world there's places. that are work there's training blah blah. blah yeah there's stuff you have to do. but I you also have a degree you have. resume experience you can walk into a. service based industry and we can get. you a job and you can work two of them. at the same time and equal about $3,000. a month everything is easier said than. done you actually have to put in the. work you have to construct a resume. that's decent you have to Comm unicate. with them you have to get through an. interview well and you have to show up.
and work and perform so there's a lot of. things that go into it but I know if you. do the work necessary 3,000 bucks a. month you could bring in meaning I could. have an extra 3,000 or $1,700 left on a. monthly basis to start putting towards. things. what I would do once you have that in. place I would do the car thing cuz an. extra $10,000 goes a long way in your. debt payoff MH I would sell the car. private sale borrow the $115,000 in a.
personal loan $5,000 pays off the car. loan permanently $110,000 boom you get a. $10,000 car whether that be in a used. lot or in a private sale you're taking. it to a mechanic and you are getting the. seal of approval that it will be safe. for you to drive and it will have. longevity for at least a few years it'll. get you through law school. so. I can't cuz I don't know how much you're. going to make I don't know what you're. going to do but I would obviously take. care of the affirms first I think.
I mean for most cases just on based on. Behavior things the snowball method. makes more sense which has been around. since the history of time since Deb has. ever existed MH and it's been around. forever for a reason because it works. you can actually start seeing progress. on things so I would pay these off. smallest to largest. I don't know how long it's going to take. I don't know but what I would try to do. because the carlone's the the big daddy. with that being gone bringing your. biggest debt to the 10 the $115,000 you.
owe on the personal loan if you go bring. in $3,000 a month $4,000 a month maybe. go get a customer service job something. like that there those are always in. demand as well. I don't know if you'd be get it sales I. I'm not sure but what you could do3. $4,000 either two service based jobs. work one actual you know like career. position mhm even though you'll only be. there for a couple years do it for a. couple years and I think you might be.
able to knock this out and I I literally. talked about my mom about this yesterday. on the phone and she was like I think. it's just best for you to go all the way. through and I was like Mom go to law. school so I can have my car payment and. my credit card payments and take out. more debt she was like well you're going. to have debt anyways in life and I'm. like this isn't smart okay they just. don't understand debt and finances. that's fine we've been over that show. them this video that's okay um I don't. know if they'll fully wake up to it but. there is just the reality of the. situation where I want you to be. successful let's get you to the place.
where you're going into law school. successful I mean you're 24 you're young. you're young so if I you're going to law. school at 26 I mean that's that's. incredible you're starting your law. career in your 30s you can have a very. successful life so what I would do how. if it takes two three years I would get. a one-month emergency fund I would do. the car trade like we talked about and. then I would um pay these off smallest. to largest pay them off work your we're. probably not having a single ounce of. paid for fund throughout that I'm sorry.
but it's cuz your future matters more. than your uh current fund right now and. then we're probably saving up an. additional F Monon emergency fund. so that it's a total six. and then you can go into law school if. you want at that point or you can try to. save a bit more to try to pay towards it. it's going to be hard to pay for it. fully cuz it is expensive what did you. say the yearly tuition at UT was a 30. ,000 35,000 just to wish and a loone not. living expenses law school law school de.
I mean you could find no scholarships. and with maybe working a little you. can't work in law school the they won't. allow you yeah they like Law School. Board won't that's um but working before. if you want to take maybe an extra year. I think you could honestly cut it to. like where you're only borrowing for. half of it half of it I think you could. do that that'll be that'll be hard but I. think what's most important and have. yourself a little bit of an emergency. fund maybe even just 3 months and pay.
off these bad debts and then we go into. law school I would not do it before then. I don't want to I just like I need to. stop caring what my parents think on. this one yes love your parents love your. parents I want you to your life matters. than their expectations or desires for. your life your actual existence matters. than their grand concept so. um important conversations will have to. happen because you also need to continue.
living there for this to work you do MH. unfortunately. but I've tried [clears throat] but they. act like they don't want to hear what I. have to say and it's show them this. video show them this video and I'm happy. to correspond in a couple emails or. something like that as well okay um but. show them this video cuz I'm going to. support you as much as I can CU this is. very dire and this is very scary and. your future really does matter and I. want you to succeed I I don't know if. I'll still be doing YouTube at the time. or anything but I when you're like 30. mhm oh that's quite some time that's.
quite some time but you're done with law. school you're in the early parts of your. law career mhm I think and then you. attack those student loans anything. above 5% 4% as quick as you can oh we. didn't talk about my current ones but. like I said I won't have any payments on. them you more than the third 27,000. no I'm saying those yeah oh well right. now I mean they're just in deferment so. I'm not even thinking about them right. now you you'll put them in your snowball. eventually you might minimum you pay. until they're paid off in a traditional. 10-year plan anyway because the interest.
rates are quite low mhm um because once. you're in once you pay off anything. above four or 5% after your law degree. whatever you take out. I would uh minimum monthly payment the. rest if they lower interest and then I'm. going to probably start contributing. about 30% on a monthly basis to. retirement but luckily if your needs are. less than 50% 50% or less and you're. contributing 30% to your retirement once. you get well into your law career and. you start making some uh you know decent.
money even if it's just 20% that goes to. fun that's a lot of fun that can be. lived more fun than you've ever lived I. think your future is bright I think your. future is actually really bright and I. think you're going to make your parents. proud I think you're going to make me. proud I think you're going to make. everyone in the audience proud it's just. going to require about two to three. years of intense sacrifice now then. sacrifice through law school not. continuing the habits you did through. undergrad and then dude you're set up. for success. hard work now but it is worth it for.
30 years no it's going to be longer than. that you're not going to live you're not. going to oh just based on modern day. medicine I think you're going to live. well beyond 60 yeah like let's let's aim. for 90 why not let's go to 100 let's. just go Grandpa like I told you he just. died he died at 104 so you know look at. that we got the jeans ready to support. us so that's incredible so you have. decades and decades and decades and. Decades of a grand life to live. sacrifice for a half a decade totally.
worth it I agree and I'm willing to work. good what makes me nervous again we just. saw these were the the most recent. statements the behavior has not changed. there the care has not changed hopefully. this conversation is a fire under your. that's why I go so hard to light a fire. under because this is the conversation I. wish someone had with me a decade if not. more ago I have the exact conversation I. wish someone would have with me so. that's why I dig in and go hard. I'm a little nervous because of that. those are the recent things so we need.
an immediate Behavior change and we need. to change the psychology around this and. how we're presenting life but hopefully. this conversation has helped in regard. to that it has but like I told you I've. been avoiding the statements so looking. over them it shows how terrible my. habits are this to be real this is one. of the scariest uh F Financial. situations I've ever seen ever yes oh. wow you're overdrafting you're not. making your payments it's terrifying and. you don't make enough to survive but on.
the other side of it 5 years 6 years. from now you're living an incredible. life. so take one of the worst finances I've. ever seen if not the worst and turn it. into the best finances I've ever seen. you have that ability you have that. ability change your psychology around. this change your behaviors and do it. kick out I want to do it I will do it. any final questions any final thoughts. final thoughts I have a lot of work to. do and I need to start now.
I really wish her the best of luck it's. going to be a hard and long road but I. think Hammer Financial score [music] she. guessed it I think we all know it's a. zero out of 10 [snorts]. it can't be better than that so but best. of luck keep us updated and let us help. you along the way uh constant. communication as always check out all. the resources Linked In the description. below they are what I use or would use. in specific situations 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.
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