Financial Audit: "Burning All His Money On… 'Apps'"

Host: Caleb Hammer
Guest: Mikey (29, Kansas City, Tableau Developer)
Release Date: October 8, 2023

Episode Overview

This episode features Mikey, a 29-year-old Tableau developer from Kansas City who earns a respectable salary yet finds himself deeply in debt. Host Caleb Hammer conducts a thorough, candid financial audit, aiming to uncover how Mikey “burned all his money on... ‘apps’” and other impulsive purchases. The conversation spans Mikey’s career path, debt accumulation, mental health struggles, and — most importantly — a step-by-step action plan for regaining financial health over the next year.

Key Discussion Points and Insights

Mikey’s Background and Financial Trajectory

Education & Entry into Tech:
- Holds a finance degree (2019) but transitioned to tech after advice to learn SQL.
- Worked low-wage jobs initially ($30k–$65k/year), now earns $80k as a Tableau developer.
- (01:04) Mikey: “I graduated in 2019... actually studied finance... but found out I didn’t like the financial side as much as I did the data side.”
First Major Financial Issue:
- Laid off immediately after giving two weeks' notice for a new job; lost all cash reserves, triggering reliance on credit cards and family loans.
- (03:33) Mikey: “They just let me go at the end of the day... I had less than a thousand bucks to my name.”
No Emergency Fund:
- Admits to "ignorance," living paycheck-to-paycheck without any buffer.
- (05:54) Mikey: “I just... didn’t think about it that way. I was living paycheck to paycheck... I used to think I don’t need money in the bank.”

Debt Accumulation and Spending Habits

Debt Breakdown:
- $21,000 personal loan (20% interest)
- Multiple credit cards, maxed out and then partially paid/consolidated
- Still spending on cards post-consolidation
- $21,400+ in student loans starting repayment
- Sporadic cash app/ATM use, with unclear tracking of expenditures
Key Spending Issues:
- Frequent purchases on eBay (primarily silver coins/collectibles)
- Watches, disc golf accessories, tattoos, food delivery, and in-app purchases
- Subscriptions: Paramount+, Hulu, LinkedIn Premium, Spotify, and considerable money on dating apps (Bumble, Tinder, Hinge), and occasionally OnlyFans
Impulse & Justification:
- Tends to "justify" non-essential buys by imagining their value or necessity.
- (18:47) Mikey (on coin collection): “Probably $4,000 [worth]... I did always try and justify it, right?”
- (26:11) Mikey: “It’s pay to win...”
Host Critique:
- Hammer is blunt, often incredulous at Mikey’s lack of discipline post-consolidation.
- (09:55) Caleb: “$200 is accruing in [interest] on a month, in a month, why are we purchasing $1,228? Why? Possibly.”

Mental Health and Its Financial Impact

Addressing Underlying Causes:
- Mikey lost 60 lbs and openly discusses his struggle with depression and how “surviving the day” led to poor money management.
- (13:01) Mikey: “Before I tried to get into my finances... I had to fix a couple other things in my life... I was just trying to survive the day.”
Therapy and Medication:
- Allocates budget for ongoing therapy and prescriptions.
- (38:18) Caleb: “All about it. All about it.”
Broader Perspective:
- Emphasizes the need for self-compassion and professional support when struggling mentally and financially.
- (51:19) Mikey: “You wake up every day... you’re in this, like, state of hopelessness... why try? You gotta try different things.”

Notable Quotes and Memorable Moments

On Post-Consolidation Spending:
- (10:24) Caleb: “This is why people do not like the consolidation… now their balance is low on a credit card, so they just go do the same exact thing again and build up the credit card debt, buddy.”
On Collectibles & Rationalization:
- (18:53) Mikey: “Probably $4,000 [worth of coins].”
- (20:15) Caleb: “Really cool. But I say I give a s*** about your future.”
On Dating Apps and Loneliness:
- (26:18) Caleb: “Well, did you win?”
- (26:32) Mikey: “I mean, I’m not dating anyone, but, you know, I’ve met some people. Absolutely... People are weird.”
Blunt Assessment:
- (14:45) Caleb: “Congratulations on losing 60 pounds… That shows you have the ability to buckle down... that gives me a slightly more optimistic outlook on this whole situation.”
On OnlyFans:
- (26:57) Caleb: “You also spend like 50 bucks a month on OnlyFans.”
- (27:17) Caleb: “There’s free stuff... that’s all I’m gonna say.”
On Money Management:
- (35:06) Caleb: “Of the money that you spent, 33% of it actually came in to spend.”
On Getting Help:
- (49:00) Caleb: “It’s sometimes hard, and getting an outside perspective can be helpful…”
Final Mental Health Message:
- (51:19) Mikey: “There’s another aspect to [depression]... I was just trying to survive the day... you gotta try different things... maybe you’ll wake up and be a little less miserable.”

Action Plan: Budget and Debt Payoff

Mikey’s Budget (from 38:50)

Rent: $450 (shared; “everyone move to Kansas City apparently”)
Utilities/Internet: $150
Phone: $100 (with $65 company stipend)
Car Insurance: $55 (car is paid off)
Therapy & Meds: $205
Groceries: $300
Essentials (TP, toothpaste, etc.): $100
Subscriptions: Only Spotify and phone storage, $12/month max
Debt Minimums (including federal loans): $835/month

Total necessity spending (needs): ~$2,367/month

The 15-Month Escape Plan

Step 1: Build $1,000 emergency fund (Month 1)
Step 2: Pay off Quicksilver card (Month 2)
Step 3: Aggressively pay down Discover It card (Months 3–5)
Step 4: Pay off $19K personal loan (Months 6–12): $2,700/month
Step 5: Expand emergency fund to cover 6 months of expenses (~$11,000) (Months 13–15)
Step 6: Once debts (except student loans) and emergency fund complete, allocate 25%+ of earnings to retirement investment

(44:34) Caleb:
“A full year. A full year. Your personal loan is gone, Discover it is gone, Quicksilver is gone. And we have a one month emergency fund. That’s nothing. A year of your life. Who gives a s***? You’re 30. Lovely. There’s decades and decades of your life yet left.”

Financial Philosophy Going Forward

Live Below Means: For 15 months, no “fun” purchases outside what’s covered by the slimmed-down budget.
Track Everything: No more untraceable ATM/cash app spending; either go full cash envelope or debit card-only tracked through a budgeting app.
Invest Early: After 15 months, invest at least 25% of income until retirement savings catch up.
Address Mental Health Concurrently: Continue therapy and medication — this is non-negotiable.
No Shortcuts: Real improvement only comes through sustained discipline, not quick fixes like debt consolidation.

Final Reflections

Mikey’s Commitment: Ready to follow the plan strictly and report back in one year and three months.
Mental Health Reminder: Financial health is inextricably linked to mental health; don’t hesitate to seek help.
Hammer’s Score:
- Spending/Budget: 0/10
- Debt: 1/10
- Emergency Fund: 1/10
- Retirement: 2/10
- Real Estate: 0/10
  Total Hammer Financial Score: 1/10, with optimism for serious improvement next year.

Timestamps for Key Segments

[00:05] Mikey’s Job & Background
[03:30] Job Transition, Emergency Fund Lapse
[08:05] Personal Loan Rationale
[14:45] Weight Loss and Mental Health Journey
[17:27] Spending on Credit Cards (Post-Consolidation)
[18:47] Coin Collecting & eBay Purchases
[21:43] Watch Purchases
[24:06] Cryptocurrency-as-Emergency Fund
[25:09] Heavy App & Dating Subscription Spending
[26:57] OnlyFans Discussion
[35:06] Budget Overdraft — Spending > Income Analysis
[38:50] Building the New Budget
[44:34] 12-Month Financial Freedom Plan
[49:00] Importance of Outside Perspective and Therapy
[51:19] Mental Health Expanded

Tone & Language

Direct, Candid, Humorous: Hammer’s style is irreverent, at times profane, but always anchored in genuine concern for the guest’s well-being.
Supportive: Despite tough love, there’s clear motivation for change and compassion, especially around mental health.

For Listeners

If you’re struggling with financial (or mental) health, Mikey’s story is both a cautionary tale and a rallying cry to take control, ask for help, and commit to lasting change.

Financial Audit: "Burning All His Money On… 'Apps'"

Host: Caleb Hammer
Guest: Mikey (29, Kansas City, Tableau Developer)
Release Date: October 8, 2023

Episode Overview

Key Discussion Points and Insights

Mikey’s Background and Financial Trajectory

Education & Entry into Tech:
- Holds a finance degree (2019) but transitioned to tech after advice to learn SQL.
- Worked low-wage jobs initially ($30k–$65k/year), now earns $80k as a Tableau developer.
- (01:04) Mikey: “I graduated in 2019... actually studied finance... but found out I didn’t like the financial side as much as I did the data side.”
First Major Financial Issue:
- Laid off immediately after giving two weeks' notice for a new job; lost all cash reserves, triggering reliance on credit cards and family loans.
- (03:33) Mikey: “They just let me go at the end of the day... I had less than a thousand bucks to my name.”
No Emergency Fund:
- Admits to "ignorance," living paycheck-to-paycheck without any buffer.
- (05:54) Mikey: “I just... didn’t think about it that way. I was living paycheck to paycheck... I used to think I don’t need money in the bank.”

Debt Accumulation and Spending Habits

Debt Breakdown:
- $21,000 personal loan (20% interest)
- Multiple credit cards, maxed out and then partially paid/consolidated
- Still spending on cards post-consolidation
- $21,400+ in student loans starting repayment
- Sporadic cash app/ATM use, with unclear tracking of expenditures
Key Spending Issues:
- Frequent purchases on eBay (primarily silver coins/collectibles)
- Watches, disc golf accessories, tattoos, food delivery, and in-app purchases
- Subscriptions: Paramount+, Hulu, LinkedIn Premium, Spotify, and considerable money on dating apps (Bumble, Tinder, Hinge), and occasionally OnlyFans
Impulse & Justification:
- Tends to "justify" non-essential buys by imagining their value or necessity.
- (18:47) Mikey (on coin collection): “Probably $4,000 [worth]... I did always try and justify it, right?”
- (26:11) Mikey: “It’s pay to win...”
Host Critique:
- Hammer is blunt, often incredulous at Mikey’s lack of discipline post-consolidation.
- (09:55) Caleb: “$200 is accruing in [interest] on a month, in a month, why are we purchasing $1,228? Why? Possibly.”

Mental Health and Its Financial Impact

Addressing Underlying Causes:
- Mikey lost 60 lbs and openly discusses his struggle with depression and how “surviving the day” led to poor money management.
- (13:01) Mikey: “Before I tried to get into my finances... I had to fix a couple other things in my life... I was just trying to survive the day.”
Therapy and Medication:
- Allocates budget for ongoing therapy and prescriptions.
- (38:18) Caleb: “All about it. All about it.”
Broader Perspective:
- Emphasizes the need for self-compassion and professional support when struggling mentally and financially.
- (51:19) Mikey: “You wake up every day... you’re in this, like, state of hopelessness... why try? You gotta try different things.”

Notable Quotes and Memorable Moments

On Post-Consolidation Spending:
- (10:24) Caleb: “This is why people do not like the consolidation… now their balance is low on a credit card, so they just go do the same exact thing again and build up the credit card debt, buddy.”
On Collectibles & Rationalization:
- (18:53) Mikey: “Probably $4,000 [worth of coins].”
- (20:15) Caleb: “Really cool. But I say I give a s*** about your future.”
On Dating Apps and Loneliness:
- (26:18) Caleb: “Well, did you win?”
- (26:32) Mikey: “I mean, I’m not dating anyone, but, you know, I’ve met some people. Absolutely... People are weird.”
Blunt Assessment:
- (14:45) Caleb: “Congratulations on losing 60 pounds… That shows you have the ability to buckle down... that gives me a slightly more optimistic outlook on this whole situation.”
On OnlyFans:
- (26:57) Caleb: “You also spend like 50 bucks a month on OnlyFans.”
- (27:17) Caleb: “There’s free stuff... that’s all I’m gonna say.”
On Money Management:
- (35:06) Caleb: “Of the money that you spent, 33% of it actually came in to spend.”
On Getting Help:
- (49:00) Caleb: “It’s sometimes hard, and getting an outside perspective can be helpful…”
Final Mental Health Message:
- (51:19) Mikey: “There’s another aspect to [depression]... I was just trying to survive the day... you gotta try different things... maybe you’ll wake up and be a little less miserable.”

Action Plan: Budget and Debt Payoff

Mikey’s Budget (from 38:50)

Rent: $450 (shared; “everyone move to Kansas City apparently”)
Utilities/Internet: $150
Phone: $100 (with $65 company stipend)
Car Insurance: $55 (car is paid off)
Therapy & Meds: $205
Groceries: $300
Essentials (TP, toothpaste, etc.): $100
Subscriptions: Only Spotify and phone storage, $12/month max
Debt Minimums (including federal loans): $835/month

Total necessity spending (needs): ~$2,367/month

The 15-Month Escape Plan

Step 1: Build $1,000 emergency fund (Month 1)
Step 2: Pay off Quicksilver card (Month 2)
Step 3: Aggressively pay down Discover It card (Months 3–5)
Step 4: Pay off $19K personal loan (Months 6–12): $2,700/month
Step 5: Expand emergency fund to cover 6 months of expenses (~$11,000) (Months 13–15)
Step 6: Once debts (except student loans) and emergency fund complete, allocate 25%+ of earnings to retirement investment

(44:34) Caleb:
“A full year. A full year. Your personal loan is gone, Discover it is gone, Quicksilver is gone. And we have a one month emergency fund. That’s nothing. A year of your life. Who gives a s***? You’re 30. Lovely. There’s decades and decades of your life yet left.”

Financial Philosophy Going Forward

Live Below Means: For 15 months, no “fun” purchases outside what’s covered by the slimmed-down budget.
Track Everything: No more untraceable ATM/cash app spending; either go full cash envelope or debit card-only tracked through a budgeting app.
Invest Early: After 15 months, invest at least 25% of income until retirement savings catch up.
Address Mental Health Concurrently: Continue therapy and medication — this is non-negotiable.
No Shortcuts: Real improvement only comes through sustained discipline, not quick fixes like debt consolidation.

Final Reflections

Mikey’s Commitment: Ready to follow the plan strictly and report back in one year and three months.
Mental Health Reminder: Financial health is inextricably linked to mental health; don’t hesitate to seek help.
Hammer’s Score:
- Spending/Budget: 0/10
- Debt: 1/10
- Emergency Fund: 1/10
- Retirement: 2/10
- Real Estate: 0/10
  Total Hammer Financial Score: 1/10, with optimism for serious improvement next year.

Timestamps for Key Segments

[00:05] Mikey’s Job & Background
[03:30] Job Transition, Emergency Fund Lapse
[08:05] Personal Loan Rationale
[14:45] Weight Loss and Mental Health Journey
[17:27] Spending on Credit Cards (Post-Consolidation)
[18:47] Coin Collecting & eBay Purchases
[21:43] Watch Purchases
[24:06] Cryptocurrency-as-Emergency Fund
[25:09] Heavy App & Dating Subscription Spending
[26:57] OnlyFans Discussion
[35:06] Budget Overdraft — Spending > Income Analysis
[38:50] Building the New Budget
[44:34] 12-Month Financial Freedom Plan
[49:00] Importance of Outside Perspective and Therapy
[51:19] Mental Health Expanded

Tone & Language

Direct, Candid, Humorous: Hammer’s style is irreverent, at times profane, but always anchored in genuine concern for the guest’s well-being.
Supportive: Despite tough love, there’s clear motivation for change and compassion, especially around mental health.

For Listeners

If you’re struggling with financial (or mental) health, Mikey’s story is both a cautionary tale and a rallying cry to take control, ask for help, and commit to lasting change.

wavePod

Burning All His Money On… “Apps”

Summary

Financial Audit: "Burning All His Money On… 'Apps'"

Episode Overview

Key Discussion Points and Insights

Mikey’s Background and Financial Trajectory

Debt Accumulation and Spending Habits

Mental Health and Its Financial Impact

Notable Quotes and Memorable Moments

Action Plan: Budget and Debt Payoff

Mikey’s Budget (from 38:50)

The 15-Month Escape Plan

Financial Philosophy Going Forward

Final Reflections

Timestamps for Key Segments

Tone & Language

For Listeners

Summary

Financial Audit: "Burning All His Money On… 'Apps'"

Episode Overview

Key Discussion Points and Insights

Mikey’s Background and Financial Trajectory

Debt Accumulation and Spending Habits

Mental Health and Its Financial Impact

Notable Quotes and Memorable Moments

Action Plan: Budget and Debt Payoff

Mikey’s Budget (from 38:50)

The 15-Month Escape Plan

Financial Philosophy Going Forward

Final Reflections

Timestamps for Key Segments

Tone & Language

For Listeners