Financial Audit's Most Toxic Couple

Summary

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Financial Audit – "Financial Audit's Most Toxic Couple"

Host: Caleb Hammer
Guests: Katie & Kyle
Date: December 23, 2024

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Episode Overview

This episode of Financial Audit with host Caleb Hammer features Katie and Kyle, a young couple from West Texas, who, at age 22, are already deep in financial chaos despite earning relatively strong household income. Caleb dives into their spending patterns, hidden debts, lack of communication, and the ways their immaturity and secrecy around finances—and recurring fights—are threatening their family’s present and future. The conversation is a raw, often jaw-dropping look at what happens when money habits, relationship problems, and avoidance converge.

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Key Discussion Points & Insights

1. Background & Household Situation

[00:40–03:00]

• Katie and Kyle are both 22, living in Big Spring, TX, with a three-year-old and another baby due in July.
• Katie works a college internship for $13/hr (~$400/month), studying accounting/business at a community college.
• Kyle works 70–75 hours per week as a field tech ($35/hr). Yearly take-home is ~$101,000.
• Despite this, they are heavily in debt, have minimal savings, and no retirement.

Caleb Hammer [04:09]: "Dude’s killing it, she’s about to graduate…from the outside, an incredible position. But you’re on the show for a reason..."

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2. Spending Problems & Lack of Communication

[05:17–14:10]

• Both admit to excessive, impulsive spending:
  • Kyle spends on “trucks, four wheelers, boats, jet skis, anything new,” and snacks/gas station meals ($300–400/month).
  • Katie spends smaller amounts, mostly via gift cards and online shopping (Shein, Amazon).
• Money conversations are dead ends, unresolved, or avoided, with no accountability or follow-up.
• Kyle intentionally keeps spending off shared accounts and avoids financial talks, calling them “nagging.”

Kyle [07:31]: “We talk...cut this out, she needs to cut this out. And we never do. There’s no accountability.”

Hammer [10:23]: “How will a budget work in this household when you try something for two weeks and it’s done—the most basic thing?”

• Katie has tried to establish some structure, even giving Kyle ‘allowances’ he always blows.
• They enable each other’s spending and both admit to lying or hiding purchases.

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3. Dangerous Financial Behaviors

[14:08–29:43]

• No retirement savings; both admit to never having started.
• No real financial goals beyond vague ideas of “moving to East Texas” or “getting land.”
• Regularly overspend, make minimum payments, and let credit card debt balloon—with $40+ monthly just in interest.
• Use credit cards as emergency funds.

Kyle [28:10]: “They just keep breaking”—on buying multiple phone chargers a week.

Hammer [28:13]: “What the [expletive] are you doing?”

• Spend recklessly even after drastic life events (recent bereavement, drop in income).
• Both have secret or unmanaged debt and almost no awareness of interest rates, payment schedules, or balances.

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4. Debt Load & Types

[29:43–46:40]

• Multiple credit cards nearly maxed out (Discover, Capital One), both hiding balances from each other.
• Large vehicle debt: a $30,000 RAM 1500 at nearly 20% interest, now underwater.
• Ongoing payment for a four-wheeler at 18% interest; equipment/tools owed to a “tool truck.”
• Medical debt in collections, and missed/late payments on several accounts.
• Mortgage (~$130k) at 4%; monthly payment recently jumped to $1400 due to tax/insurance increases.
• Minimal savings ($863 remaining from a peak of $6000, spent on non-emergency house “improvements”).

Caleb [34:12]:
“If one thing were to go wrong—one thing—because of your little pet projects, your family’s done, you’re evicted, you’re foreclosed on.”

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5. Unhealthy Relationship Dynamics

[30:05–32:07, 59:06–59:42]

• Katie gives Kyle cash allowances, says he’s “a child.”
• Both habitually hide spending; trust has eroded.
• When forced to rate their financial health—simultaneously—they both shout “1” out of 10.

Katie [30:10]: “Because he is a child and does not know how to control himself and does not understand that finances are not growing on trees.”

Hammer [59:42]: “Your money’s separate. You guys are not together.”

• Both speak in terms of “your money”/“my money,” despite claiming to be united.
• When caught in contradictions or lies, they deflect, bicker, and pass blame.

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6. Missed Opportunities & Future Outlook

[46:40–50:03, 83:39–87:21]

• Caleb emphasizes the missed investment potential: With their income, they could be “multi-millionaires” by retirement; instead, they’re on track for long-term struggle.
• Pattern is to finance wants (toys, hobbies)—“addicted” to spending—while essential priorities languish.
• Their overspending, lack of emergency funds, and growing debt mean “one thing” going wrong could upend them.

Hammer [45:13, paraphrased]: “Every year you don’t invest from 22, you’re losing hundreds of thousands in compound interest.”

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7. Daily Life Dysfunction & Subscriptions

[69:49–76:56]

• Massive waste on convenience: Gas station food, DoorDash, eating out “literally every day”—no meal prep.
• Multiple streaming/gaming subscriptions they barely use, gym memberships they never attend, over-insured phones/watches.
• Chaotic pet situation: Three dogs, five cats, and a lizard—also unplanned, unmanaged, and unbudgeted.
• Recurring theme: Avoidance, unawareness, laziness ("Laziness" is offered as the reason the fence is not repaired; Katie "could not think" about truck loan details).

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Notable Quotes & Memorable Moments

• Caleb [06:09]: “Why are you more important than the child? And toys.”
• Kyle [22:30]: “I make the money and I want to spend it how I want.”
• Caleb [13:55]: “That’s what a child does…You’re 22. You have a second kid coming.”
• Katie [30:10]: “He is a child and does not know how to control himself…”
• Katie [59:42]: “I hadn’t thought about it that way” (when told their finances aren't really combined).
• Caleb [73:44]: “Your kids are gonna struggle to survive and you refuse to cook. Stop being children…That’s not a joke.”
• Caleb [87:13]: “You guys live such a good life…You refuse to actually manage like adults and communicate and talk. So I’m done.”

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Timestamps for Key Segments

• Introduction, Meet the Couple: [00:40–03:00]
• First Signs of Dysfunction: [05:17–09:01]
• Admission of Hidden Spending: [10:49–14:10]
• Credit Card/Lending Revelations: [29:43–34:12]
• Truck & Four Wheeler Debt Disclosures: [35:14–46:40]
• Discussion on Missed Investment & Financial Future: [45:13–50:03]
• Household Spending Breakdown: [69:49–73:44]
• Summing Up: Last Warnings & Callouts: [83:39–87:21]

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Host’s Final Assessment & Score

• Spending: 0/10 (“You overspend.”)
• Debt: 0/10 (“We have collections.”)
• Emergency Fund: 0/10 (“Nothing.”)
• Retirement: 0/10 (“We drained it.”)
• Real estate: 6/10 (“Okay, but property taxes and equity could be better.”)
• Overall Hammer Financial Score: 1.5 out of 10

Caleb Hammer [87:13]: “You guys live such a good life and you just refuse to actually manage like adults and communicate and talk. So I’m done.”

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Closing Thoughts

This is a brutally honest episode with repeated shocking confessions, tension between the couple, and consistent interventions/analogies from Caleb, who is equal parts bewildered, frustrated, and empathetic. The couple’s financial immaturity and avoidance are laid painfully bare—leaving the fate of their family’s future uncertain unless they commit to serious change.

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For more actionable tips and breakdowns, visit calebhammer.com or check out Caleb’s classes and YouTube channel for early episode access.

Transcript

[Caleb Hammer]

To watch episodes of Financial Audit a week earlier. Check us out on YouTube. No. Why are you giving him an allowance? What is this relationship?

[Katie]

He is a child and does not know how to control himself.

[Caleb Hammer]

From your paycheck?

[Katie]

Yes.

[Caleb Hammer]

Do you lied to her?

[Katie]

Always. I have to dig and dig for information.

[Caleb Hammer]

We are immaturely trying to avoid the conversation.

[Kyle]

I just do not want to give the nagging. I just didn't want to hear it.

[Caleb Hammer]

I was going in and getting drinks and snacks from the gas station. So you didn't even know. I'm. I'm bringing new information to the table right now. To you, probably. Yes. All of our education is bundled together for 15% off with a 30 day money back guarantee. Go to calebhammer.com bundle or click the link in the description or pinned comment below.

[Katie]

Hi, I am Katie. I am 22 years old.

[Kyle]

Hi, I'm Kyle and I'm 22 years old. And we live in Big Spring, Texas.

[Katie]

And this is Financial Audit.

[Caleb Hammer]

Thanks for coming over to Austin, guys. You know, it's kind of crazy for the audience that they don't know this because we literally just started recording. These people have been in front of me for only a few minutes. They were chatting with the producers for a while, but only in front of me for a few minutes and you guys are already bickering like teenage twins or something. Like, I don't know what's happened. Okay. But thanks for coming over. I'll be honest, that made me a little just like, all right, what is this about to be? What did I just walk into? But let's start with you, Katie. What do you do for a living?

[Katie]

I work as a. Yeah, no, ma. I just. I say ma, but nobody really knows what ma. Marketing is.

[Caleb Hammer]

Okay.

[Katie]

For a financial planner.

[Caleb Hammer]

Wonderful. How much do you make?

[Katie]

Yeah, 13 an hour. I only work three hours, I guess. Man, every other day.

[Caleb Hammer]

That Big Spring Wages couldn't find a job for 13 in Austin. I'm sure you could just. No one will take it. How many hours every few days?

[Katie]

You said three hours every other day. So Monday, Wednesday.

[Caleb Hammer]

Hold on.

[Katie]

Friday.

[Kyle]

It's a.

[Katie]

It's. It's internship.

[Caleb Hammer]

I'm so much more.

[Kyle]

Yeah, she left that out.

[Katie]

Yeah. I am in college.

[Caleb Hammer]

Okay. Yeah. Well, what do you. What's your college situation?

[Katie]

I'm at a community college.

[Caleb Hammer]

What are you doing there? How long have you been there?

[Katie]

I started. I skipped a semester because I had my son right out of high school, and then I've been there since then.

[Caleb Hammer]

You're both a little naughty. Naughty. A Little.

[Katie]

Yes.

[Caleb Hammer]

Through you.

[Kyle]

Yes.

[Caleb Hammer]

Well done. Age of the kid? Three. We only have one kid right now.

[Katie]

I'm pregnant now.

[Kyle]

Doing.

[Katie]

Currently.

[Caleb Hammer]

Wow.

[Kyle]

Fourth.

[Katie]

Yeah. July 4th. Yeah.

[Caleb Hammer]

Like just like. Like newly pregnant. Must be.

[Katie]

Yes, yes.

[Caleb Hammer]

I would not be able to tell.

[Katie]

No, no.

[Caleb Hammer]

I think the three year old was a little whoopsie.

[Katie]

Definitely.

[Caleb Hammer]

Is the zero year old a whoopsie?

[Katie]

No, no. Very intentional.

[Caleb Hammer]

But you're still in school. Don't have a career figured out you guys have debt up to your eyeballs. Why is now the best time to bring in?

[Kyle]

We wanted to keep send his siblings kind of close in age.

[Katie]

My son's name.

[Caleb Hammer]

Yeah, we'll believe it.

[Katie]

I know, I just. Megan.

[Caleb Hammer]

It's okay.

[Katie]

Getting his brain to start saying our son.

[Kyle]

Or Bubba. Or Bubba.

[Caleb Hammer]

Yeah. You guys are from the middle of nowhere, aren't you? Okay, that makes sense. Bubba.

[Katie]

Yeah.

[Caleb Hammer]

They always use something I didn't think was used since the 80s, but sure. Cool. And what do you do for a living?

[Kyle]

I'm a field tech technician. I work on.

[Caleb Hammer]

Yeah, you are in those oil rigs?

[Kyle]

No, I work on dozers, excavators, man lift, sigil lift, stuff like that.

[Caleb Hammer]

Okay. And what do you make?

[Kyle]

35 an hour.

[Caleb Hammer]

Oh, there we go. Now we're talking. Somebody, I was wondering how this house was sustaining itself. How many hours a week you working?

[Kyle]

70 to 75.

[Caleb Hammer]

Yeah, this is a west Texas man. You had it written all over you. I could tell. You're killing your kid, Bubb. I get it. How much hits your account on a monthly basis, would you say?

[Kyle]

Let's say about 2500 every two weeks. So about nine grand.

[Caleb Hammer]

Yeah. Yeah. Okay.

[Kyle]

Yeah, yeah.

[Katie]

42.

[Caleb Hammer]

And remind me.

[Katie]

What?

[Kyle]

Well, my workday app says I've brought home about 101000 so far this year.

[Caleb Hammer]

Delicious. Nat.

[Kyle]

Yes, Ned.

[Katie]

Yeah. That should be net. Yeah. Yeah.

[Caleb Hammer]

Okay. And you. So I'm sorry if I didn't hear. What are you studying in community college?

[Katie]

Accounting business.

[Caleb Hammer]

Okay. What are you going to do?

[Katie]

I'm probably going to. Yeah, I don't think I'm going to go and do all the.

[Caleb Hammer]

How are the opportunities out there?

[Kyle]

A lot of oilfill companies. Law for accounting.

[Katie]

Yeah. I really don't feel.

[Caleb Hammer]

Yeah, I'll give you an accounting certification course careers as well to boost your resume.

[Katie]

Cool.

[Caleb Hammer]

When you're so go through that as well.

[Katie]

Yeah.

[Caleb Hammer]

Love course screws.

[Kyle]

They're great.

[Caleb Hammer]

Yeah. Hopefully that'll get you just in that job when you're ready. And then this internship I'm assuming is helping as well. So 13 bucks an hour only. What was it, six hours a week?

[Katie]

No, nine. Nine hours a week.

[Caleb Hammer]

About.

[Katie]

Yeah.

[Caleb Hammer]

Actually, 468. So 400 bucks a month extra, probably.

[Kyle]

Yeah.

[Caleb Hammer]

It's your account.

[Katie]

Yeah.

[Caleb Hammer]

Okay. I mean, that's fine. Anything helps. Why are we in debt, guys? What is going on here? Because all of a sudden, you know, I feel like we've just had, like, a positive thing so far. I was like, oh, dude's killing it. She's about to graduate. We're about to be making. We're about to be a money household in our early 20s. Yeah, we can take care of these kids. We can set them up for a great future. But obviously, knowing what. I know that. And you're. I mean, you're on the show, so. Yeah, I mean, why. Why are we in a position when you should be from the outside in an incre. Position?

[Kyle]

Well, I guess I like to spend money. I. Trucks, four wheelers. I look for boats, jet skis, anything new.

[Katie]

Constantly begging to be spending money.

[Kyle]

We were doing good on the.

[Caleb Hammer]

What about setting your kids up for success? You're trying to have another kid. You might have another kid after that. Like, what do we.

[Katie]

No college fund. Nothing. I want to.

[Caleb Hammer]

Why are you more important than the child? And toys.

[Katie]

Oh, yeah, and I hate toys. I think toys are a scam. But yet we're filled to the brim with them.

[Kyle]

Yes.

[Caleb Hammer]

Really? Like what?

[Katie]

He's really into Hot Wheels.

[Caleb Hammer]

Okay, listen, I have heartburn medication and caffeine. That's how I make it through this. Okay, so we're going generic Walgreens version. Already open. Who the is slamming these down? These were just purchased. I wonder if I'm being drugged right now. Guys, if this episode ends freaky and naked, this not my fault.

[Katie]

He's the same way. What, when you're.

[Kyle]

Oh, when I get drunk?

[Katie]

Yeah, when he gets drunk, he just.

[Caleb Hammer]

You end up naked.

[Katie]

Yes.

[Kyle]

That's getting hot bad.

[Katie]

We've got picture proof.

[Caleb Hammer]

I don't. Ew. No. Well, why are we even talking about this?

[Katie]

He takes pictures.

[Caleb Hammer]

So toys. Toys are more important than our future. Are we saying the entire blame is on you? That what you're saying?

[Katie]

No.

[Kyle]

I mean, she has issues with. What is it, Sheen and Amazon? I mean, it's not just me.

[Caleb Hammer]

Okay, where's our conversations around any of this? Because you seem to know what she spends on. You seem to know what he spends on. What's our conversations around? Money. What's our conversation about where our bills are going?

[Katie]

Mostly a dead End conversation. We talk me through it because I complain about his constant. I want to buy a new house. I want to buy a new house. Yes.

[Caleb Hammer]

What are we doing? Do you have a house or not? Do you own a house?

[Kyle]

I bought a house in 19.

[Caleb Hammer]

Wonderful. Good job. Do we need a house when we have stacked up credit cards and horrendous car loans?

[Katie]

I don't think so.

[Kyle]

I guess not. I mean, well, why do you think.

[Caleb Hammer]

You need a bigger house right now? No, you don't, dude. People raise families of 10 and like a two bedroom apartment for most of human history. What. What do you have right now?

[Kyle]

We got a three bedroom, two bath square footage 1500, 1556.

[Caleb Hammer]

It's like the most basic ass American suburban house. You're fine. What the you need. You don't need anything unless you're about to just start spawning like a thousand.

[Katie]

Oh, no, no, no. I'm done.

[Kyle]

Yeah, only two. We wanted a four bedroom, two bath house.

[Caleb Hammer]

So again, how does the conversation go then?

[Kyle]

We usually end up talking about finances. Well, I need to cut this out. She needs to cut this out. And we never do. There's no accountability, I guess is the right.

[Katie]

Yeah, I mean, honestly, that's. The conversation happens and then we never do a follow up, if you know what I mean.

[Caleb Hammer]

I'm just so. I'm curious throughout this then. I mean, again, you guys are acknowledging things and this is kind of what happens when someone comes on and they acknowledge their debt, acknowledge where things are. What have you tried to do to work on this? Where have we been?

[Katie]

There was two weeks where he did start to try to cut out his.

[Kyle]

Gas station.

[Katie]

Gas station foods and.

[Caleb Hammer]

Gas station foods.

[Kyle]

Yes, I'm on the road a lot. Anywhere between three to four hundred miles a day.

[Caleb Hammer]

Cool. Pack a sandwich, you fuck.

[Katie]

I was making them.

[Caleb Hammer]

So this was already a thing. This is already a thing. And you guys decided, oh no, I'm still gonna stop and just pick up.

[Kyle]

Snacks and drinks, my lunch for two.

[Katie]

And then he could not bring in the box from the truck to the house. That is all I asked was his lunchbox to be brought inside.

[Caleb Hammer]

I mean your child could probably do that. Like why can't you?

[Kyle]

Working 13 to 16 hours and I forget and just want to go home and go to sleep.

[Caleb Hammer]

Forgets, fine. Why can't you just go out and get it though?

[Katie]

If you do when I ask.

[Kyle]

Well, I ask you to go do it.

[Katie]

I'm not walking out there. It's cold most of the time at night when I'm doing It put a jacket on. I don't care. You can go get your own lunchbox box.

[Kyle]

Yeah, so.

[Katie]

We did change that, but it ended quite fast.

[Kyle]

Yeah, we lasted about two weeks doing the bringing my lunch to work then.

[Caleb Hammer]

How will a budget work in this household? When you try something for two weeks and it's done kind of like the most basic easy thing we could try. How the are we going to budget after this? So, okay, the conversations end up in a dead end. This is what you said and then there's no follow up. Now why do you think there is not a follow up? I just want to see self assess. This is a self assessed period. I want to see where your guys's mindsets at.

[Kyle]

Well, I know I have a spinning habit. So the reason why there's no follow up is because I don't lease. At least I don't try to have a follow up with it.

[Caleb Hammer]

You don't try to have a follow up. So you're trying to avoid it. To be clear, we are immaturely trying to avoid the conversation.

[Kyle]

I just do not want to get.

[Caleb Hammer]

You don't want to get. Okay.

[Katie]

He purposely sends on his credit card so I do not see it on the account.

[Caleb Hammer]

You're not an authorized user. You don't get to see the statements.

[Katie]

No, no, not. And you wouldn't allow her.

[Kyle]

Well, it wasn't that I wouldn't allow her. Just we got all this stuff before we got married and all that stuff.

[Caleb Hammer]

So how long have you guys been married?

[Kyle]

Going on two years now. Been together for seven.

[Katie]

I thought three years going on.

[Caleb Hammer]

Well, it doesn't matter.

[Katie]

Oh, something like that.

[Caleb Hammer]

But okay. But you don't trust her to. Okay, now I'll have to ask you, do you? Well, actually I want to hear your perspective. You say because she. This is your word.

[Kyle]

Yes.

[Caleb Hammer]

So are you saying this is an endless nag when this comes down to the financial conversations. How does this conversation work? How does this look from your perspective?

[Kyle]

Usually her nagging at me I need to do this, I need to do that. And there's nothing she needs to do. It's always me having to do something.

[Caleb Hammer]

Thoughts? I.

[Katie]

Well, so his company gives us gift cards lately like for birthdays, Christmas.

[Caleb Hammer]

What about thoughts on what he just said?

[Katie]

Because I have problems. I. I don't. I've never said I was innocent in this. That's what I was trying to get at is I keep my spending to those 25 gift cards. So I'm still getting things. It's just not coming out of our Pocket.

[Caleb Hammer]

But it is. It's still money that could be going towards basic necessities to cover some things like groceries and gas. And then all our money left over could go towards paying off debt. So it still does. It's still net money.

[Katie]

No, no. Gift cards from his company that we have. We haven't. It's not in our income or anything.

[Caleb Hammer]

Are the gift cards store specific or they just spend wherever they're on regular gift cards?

[Katie]

No, some are specific Amazons.

[Kyle]

Oh, those are the birthday ones. So every time it's my birthday.

[Caleb Hammer]

But then we could still get the. The thing off of Amazon that we need.

[Katie]

That is true.

[Caleb Hammer]

Instead of spending our money. Because this is just giving you an excuse to just go bowl. It's still money that's coming in and we're in debt.

[Katie]

Yes, yes.

[Caleb Hammer]

What about the nagging part?

[Katie]

I feel like I am on him fairly. I don't try to.

[Caleb Hammer]

What should we be. Is that. Is that the productive way to have this though? That's what I'm wondering. Because what. So this is what I am taking away from this conversation. So far. Dude f Cks up a lot. His spending up a lot. You f. Ck up a bit. But then what happens? We come to the budgeting thing. It's not a sit down. We talk about it. It's a sit down and it's.

[Katie]

It's never actually a sit down and talk about it. I have begged him to sit down and try to go through our.

[Caleb Hammer]

Why won't you sit down, dude?

[Kyle]

The nagging. I just didn't want to hear it. So I'll just continue playing my video games or whatever it is.

[Caleb Hammer]

Okay, well that's what a child does though, for what it's worth. I mean, I'm not saying we should go at it from the perspective as nagging at someone, but why aren't you willing to confront it like an adult? You're 22. You have a second kid coming.

[Kyle]

I guess I just don't want to see how much in debt we are.

[Caleb Hammer]

Hey, what's your retirement?

[Kyle]

Zero.

[Caleb Hammer]

Uh huh. And you? Uh huh. You're putting the burden on your kids. They didn't have a choice to come into this world. They're gonna take care of you because they're not gonna see their mom and dad on the streets when they don't have enough money to retire. And who knows what Social Security is going to look like by the time you guys retire. That's where we man up. We step away from the video games. We have the conversation and that's when we have the conversation, we're not just telling the other person. You, you, you, you. Stop, stop, stop. We sit down, we discuss what things need to look like, what our goals are, and then if you guys aren't compatible on that, that makes me nervous because one of the leading causes for divorce in this finances. All right, let's talk about the one thing that keeps every business owner awake at night. Cash flow. I've been there. And when I started the show, keeping up with payroll and scaling the business while juggling expenses was a consistent struggle. Felt like I was playing financial death. Whack a mole. And trust me, that is not fun. But that is why today's sponsor, Relay, has been a total game changer for myself. Relay is the business banking platform that actually gets how small businesses work. With Relay, you can set up to 20 checking accounts so you can separate your money into clear buckets for payroll, taxes, profit, or even that dream project you've been putting off. No more guessing. No more, oh, crap, where'd all my money go? And it's not just the accounts. Relay also lets you issue up to 50 debit cards to your team, set spending limits, and even lock those cards if someone decides they need a round of taquitos on the company dime. And your accountant, they're gonna love you for this one. With secure read only access, your books will stay clean and tax season won't feel like a financial murder mystery. Now here's the kicker. Relay and Prof. First are hosting the $25,000 cash flow glow up giveaway. That's right. One lucky business owner will win $25,000 to kickstart their 2025. It's easy. Sign up for Relay. Deposit $100 into your new account by December 31st and you're in the running. Even if you don't win, you've already set yourself up for a better money management heading into the new year. Plus $100 bonus when you sign up at relay.fi.com Caleb Cash flow using the link below. So here's the deal. Sign up for Relay in less than 10 minutes at the link in the description. Get the clarity you need, manage your cash flow like a pro. And who knows, you might just start 2025 with $25,000 extra in the bank. Are we compatible on finances?

[Kyle]

I mean, for the most part, we both like to spin, so that's.

[Caleb Hammer]

Wow. So we're compatible in the wrong way. What about goals? What about goal? What?

[Katie]

I don't think he has any goals. To be honest, I have been thinking about the goals, where we want to end up. Because he talks about wanting to move back to his hometown east Texas area.

[Caleb Hammer]

What's your goal, guy? Just playing video games?

[Kyle]

No, not just playing video games. Get enough money saved up, pay some stuff off and so we can move.

[Caleb Hammer]

Doesn't matter. You make incredible income. You are not paying stuff off. What are you talking about? You could be paying stuff off. You're not. More money's not gonna do anything. More money just like the gift cards is gonna be an excuse to spend. You agree? But you're the one spending on the gift card, so. Yeah, I don't know what you're nodding about.

[Katie]

Well, I feel the same way. More income just is us blowing through it. That's exactly what I.

[Caleb Hammer]

What's her goals for the family? From your words, what do you think her goals are? Finances, family, all that good stuff.

[Kyle]

I think her goal is to get us on a budget, get bills paid down and to be able to live comfortably. And I.

[Caleb Hammer]

That's a pretty basic minimum goal. What are her goals for the family? Big goals. Where does she want to see you guys?

[Kyle]

And she wants us to move to East Texas for sure.

[Caleb Hammer]

She wants to move to East Texas. Yeah, he does.

[Katie]

But I've never lived there myself. He just wants to go back home. And I was like, yeah, it is really pretty. So I'm totally willing. Yeah.

[Kyle]

Yes.

[Caleb Hammer]

Okay. That's it. This is all we have in our life is a goal to move to East Texas. We have nothing beyond this.

[Kyle]

Get a. Get a 20 or 30 acres. And she wants the homestead. Let her homestead. She wants to start growing plants and stuff like that.

[Katie]

Kind of off grid vibes.

[Kyle]

Yes, off grid vibes. 100.

[Caleb Hammer]

Okay. So our goal is just a want want. We don't have ourself as seeing where our family is, certain ambitions, seeing where our kids go set up for retirement. We don't have our. Our ambition is literally. Yeah, but our goal that you guys are talking about so far is literally just getting a plot of land. Good gold. That's a fine goal, but I'm not hearing any overarching thing for the family. That makes me a little nervous. Like how are we gonna button down, sacrifice, cut back everything? Your spending's insane. How are we going to start messing with that? Get on the same page and tweak things and stick to it on a long term basis without these broad overarching goals. Example, $360 going in and getting drinks and snacks from the gas station this last month. She didn't even know. No what do you mean? You're the one that sees the statements, right? Or is this on the credit cards that you don't see?

[Katie]

I think they're on the credit card.

[Caleb Hammer]

Me. So you didn't even know? I'm. I'm bringing new information to the table right now.

[Katie]

To you, probably, yes.

[Caleb Hammer]

Oh, for sake. Why isn't she allowed to know that?

[Kyle]

It's not that she's not allowed to. She's never asked.

[Caleb Hammer]

You have to rely on her asking. But doesn't she ask to sit down and talk about the money? Do you?

[Katie]

I do.

[Caleb Hammer]

Wouldn't that be asking?

[Kyle]

Yeah, I guess so. I mean, she doesn't ask about the certain cards.

[Caleb Hammer]

Why would she have to ask specifics? If she's sitting down talking about wanting to do a conversation about the finances, wouldn't that be the conversation?

[Kyle]

I mean, yeah, I would, Ben. I just. I don't want her to see all the spinning. I do. A gas station.

[Caleb Hammer]

You see how that's what. She's not your mom. Not her. What are your thoughts on this? This is.

[Katie]

He also has said to me that he prefers gas station food over the sandwiches that I've made, even.

[Caleb Hammer]

What do you make sandwiches?

[Katie]

I try not to. I add scratches to him. I try to make. He. It's just likes gas station food, I guess. Even though it's terrible because it's fatty.

[Caleb Hammer]

And terrible for your health, which means it's delicious. We're both thick boys. I mean, come on. We're fat.

[Kyle]

Yeah.

[Caleb Hammer]

It's probably because you're eating the food. Because I eat the food too. But I can afford it. That's the difference. Because I didn't up my entire life on.

[Kyle]

Technically, I could afford it.

[Caleb Hammer]

No, you can't. No, no. You have debt and no retirement. If you have no retirement, you can't afford sh. You don't have an emergency fund. You can't afford sh. Are you talking about. What are your delusions on money? You don't understand the basics.

[Katie]

He also thinks our saving is plenty good enough. Even though it's.

[Caleb Hammer]

What's your savings?

[Katie]

800.

[Kyle]

$863.

[Caleb Hammer]

Describe how that is plenty good enough.

[Kyle]

Well, it was at six grand. And then we bought a Amazon for the house. House improvements, new sa.

[Caleb Hammer]

What was the savings for?

[Katie]

Honestly, we had no goal for it. We had just started.

[Caleb Hammer]

Why is it not an emergency fund? Have we heard of an emergency fund?

[Kyle]

Yes, told me about it.

[Caleb Hammer]

Wonderful. There we go. Why wasn't it an emergency fund? Why was it an Amazon? We just got a house fund.

[Katie]

We Just don't see the emergencies coming.

[Caleb Hammer]

And I mean that's, that's what makes them an emergency. Little. What do you think an emergency is? If everyone saw an emergency coming, it wouldn't be an emergency. What do you think that word means? What are you talking about? What?

[Katie]

We just kept putting it in because I cared about the savings, especially while we were living in my mom, at my mom's.

[Caleb Hammer]

How can we have a real conversation here and make real goals if you're not. If she didn't even know how much you spent on getting fat, the gas.

[Katie]

Station things, much like. I knew he was spending quite a.

[Kyle]

Bit, but I mean I've also had a couple project cars that I've bought a little bit sold.

[Katie]

Yeah, he's. There was one that I got from my dad and he is non stop looking for it.

[Caleb Hammer]

Looking for what? More?

[Katie]

Yeah, more projects.

[Caleb Hammer]

Why not project get out of debt, make sure our kids are set up for the future. Why is everything about your little needs or desires, little wants, your toys, your little hobbies?

[Kyle]

I mean the way I see it is I make the money and I want to spend it how I want.

[Caleb Hammer]

I can vibe with that to a certain point. If you set yourself up for emergencies, make sure enough is going to needs in retirement. I can give you a massive amount because you guys make good money. I mean you're gonna bring, be bringing in probably like 50, 40 to 50 to start off, we're gonna say 40. Just be a little conservative. So let's say 30 hits your account 32 or so on a yearly basis. And then we know that divide that by 12, we're looking at about 2,660, 66. Plus the 9,000 that hits your account net probably $11,600 on a monthly basis is hitting the account once you get that job. Wonderful. If we're able to do 30% of it, I can get you guys to blow $3,500 a month on anything. It's a ton of money. After you're out of debt and have a fully funded emergency fund or contributing to retirement and basic necessities. Why do you think you're allowed to do this now and over your family? If one thing were to go wrong, one thing were to go wrong because of your little pet projects, your family's done, you're evicted, you're foreclosed on. Why are you allowing that to be the case?

[Kyle]

I mean I have the credit cards to, you know if anything happens like that emergency wise.

[Katie]

That is raw road, Bunny. That is not our money.

[Kyle]

I used it for your tires on your. Your car one time.

[Katie]

And also, when we first moved into the house, we thought about getting engaged. We weren't engaged. And he just blew our mortgage money on an engagement ring.

[Caleb Hammer]

What do you mean your mortgage money?

[Katie]

The money I planned for mortgage. He decided to go.

[Caleb Hammer]

How'd you pay the mortgage?

[Kyle]

My dad.

[Caleb Hammer]

Your dad?

[Kyle]

Yeah.

[Caleb Hammer]

Are you. What are you guys. In your defense, my dad was like.

[Kyle]

Hey, buy the ring. I'll give you the money for the mortgage.

[Caleb Hammer]

Why would you worry about it? But why put yourself in that kind of family predicament? I can make things awkward real quick. I've seen relationships destroyed on this show because people have lent money. I don't know if the episode is out by now, but there was one person who's been lent money by a bunch of friends, and guess what? Now they're all ex friends, every single one of them. Why risk that? And this was your first mortgage payment? No. Even still do you owe your dad throw?

[Kyle]

My dad?

[Caleb Hammer]

Yes. No, he gifted it.

[Kyle]

Yes. Well.

[Katie]

Well, technically, we do still owe him. On our.

[Caleb Hammer]

On his sake Insurance. We offer it.

[Kyle]

But I work for him on the weekends. Yes, I work for him on the weekends.

[Caleb Hammer]

Cool. Take the money home and invest it. Yeah. Huh? What the is this conversation? Listen, again, my concern is how are we able to move on if you weren't allowing her to see the 350 of purchases of gas stations? And then I still don't even know what you think about those purchases.

[Katie]

I hate them. I despise them.

[Caleb Hammer]

I. Yeah, but you didn't know $300. What do you think about that?

[Kyle]

Well, not all of that's food, so there's been a couple of times where my chargers for the. I get those cheap chargers. Gas station chargers and what? The cheap gas station chargers for your phones.

[Katie]

He just.

[Caleb Hammer]

Why don't you have a charger?

[Kyle]

Well, they'll break, and I have to get a new charger.

[Caleb Hammer]

What?

[Kyle]

Yeah.

[Caleb Hammer]

Who gets these then? Obviously they have a market because of people like you just buy one charger that isn't.

[Kyle]

That's like $20 for a charger.

[Caleb Hammer]

You can get a 20. Wait, I get $10. I get like a $10 charger on Amazon and I'm fine forever.

[Kyle]

I need it right then and there. And the gas station. Right.

[Caleb Hammer]

Yeah, but why not just do the $10 once instead of this endless. What are you doing with your phone?

[Kyle]

I guess the convenience is right there.

[Caleb Hammer]

No, what are you doing with your phone that is breaking all these chargers?

[Kyle]

Oh, I drive on leash Roads every day, so it's bumpy, though.

[Caleb Hammer]

Cool. Strap it somewhere. What do you like? Where is it? Why is it not in one of those things on the dash?

[Kyle]

Well, it's not a magnet. Magnetizes, obviously.

[Caleb Hammer]

The magnet's not working. You need the thing that clamps around it.

[Kyle]

I just haven't got one.

[Caleb Hammer]

Oh, good. This is huge for financial audit. For a year now, my team and I have worked with experts to create what I truly believe are the three best educational programs in the financial space. Online, we have our budgeting program, where I teach you how to create, manage, and revolutionize your budget and control your money. And then there's the investing program, where I teach you to define. Define what investing profile applies to you and your life, and then teach what specific investing strategies applies to you in that situation. And now, finally, we have our debt program, where I teach you the best ways to pay off debt, manage debt, and even take advantage of good debt. This has been a revolutionary project that we've been working on for over a year now. And just like over 10,000 people who've already taken our educational programs, you can now take advantage of all. All three of them bundled together at a 15% discount. I've heard from thousands of people now who've taken these classes, and they've literally changed their lives for the better. And finally, you can, too, at a more affordable price. Head to calebhammer.com or click the link in the description below. You will not regret this. How many times are you buying those then?

[Kyle]

Probably two or three of them a week.

[Katie]

Two or three a week?

[Caleb Hammer]

What? Two or three phone charges a week?

[Katie]

I ask you to buy me one phone charger for. I'm telling you, I have a charger in our personal truck for months. And I've been begging for him to just run in and grab me one. And he just recently, before we came on the trip, grabbed me my charger.

[Caleb Hammer]

I have never heard of this. Buying three phone charges a week is one of the most, like, literally ridiculous things I've ever heard on the show. That's stupid.

[Kyle]

They just keep breaking, then it's not working.

[Caleb Hammer]

Purchase one that doesn't break. What the are you doing?

[Katie]

Your chargers are something like. I don't understand how you're breaking these chargers.

[Kyle]

No, there's just. I have no idea.

[Caleb Hammer]

I don't want this to be the anti. Kyle sh. What the is that? That's the dumbest thing I've ever heard in my life. Today at least.

[Kyle]

Yeah, and then vapes are like 2030 me.

[Caleb Hammer]

What you're not trying to live for your kids in the future?

[Katie]

Nope. I asked him to quit before our first baby.

[Caleb Hammer]

And why, why, why, why?

[Kyle]

Addiction. It sucks.

[Caleb Hammer]

No. Have you tried to quit?

[Kyle]

A couple times.

[Caleb Hammer]

What does that look like to you?

[Kyle]

I think the longest I went was two weeks.

[Caleb Hammer]

Okay, I can't put that in the budget at the end. Like I'm not gonna budget out your eventual death so much. Those things, dude, we don't even know the long term consequences. All right, I'm gonna go. Three, two, one, go. And on go. I want you guys to give me your household financial score at the same time so I can see where you guys think you are. Ranges from 0 to 10. 0 being the absolute worst. 10 being the absolute best. 3, 2, 1, 1. Whoa. We're synced with one thing. We don't know what each other are spending on other things because we hide spending and we can't have a conversation about it. But we know what. Huh?

[Katie]

I'm gonna kill him out to this. I had no Idea it was 300 for especially over so many chargers.

[Kyle]

Was that a month or one week?

[Caleb Hammer]

Are you kidding me?

[Katie]

Joking.

[Kyle]

Is that a month? Because you used to give me like 200 for a week.

[Caleb Hammer]

Why would he get an allowance? Yeah, what are you talking about? Wait, what? No, why are you giving him an allowance? What? What is this relationship?

[Kyle]

Well, she used to give me an allowance for gas so he could get drinks.

[Caleb Hammer]

Why would he have an allowance?

[Katie]

Because he is a child and does not know how to control himself and does not understand that finances are not growing on trees.

[Kyle]

250 bucks every two weeks. Every time I got paid, she gave me 250 bucks cash.

[Caleb Hammer]

She gave control themselves from your paycheck?

[Katie]

Yes.

[Caleb Hammer]

What the am I dealing with right now? Infants. If you want your Hammer financial score, it's free. Figure out where you are on the scale. Link is in the description below. And if you want to come to Austin, Texas, be on the show and get a little financial verbal beat down, I'm happy to do it. Go to Caleb hammer dot com. Apply the Discover card. So what's up with this Discover card? Is this one of the hidden special little cards?

[Kyle]

She knows about it.

[Caleb Hammer]

She knows it exists, but she. She doesn't know what spending is on there.

[Katie]

No, I had no idea.

[Kyle]

Yeah, I had it.

[Caleb Hammer]

Oh, she doesn't know what spending's on there?

[Kyle]

No, she don't.

[Caleb Hammer]

Okay, what's the balance on here? What do you think? What do you think? His balance of his credit card that is accruing interest and not being paid off is.

[Katie]

I think he said one was at 14.

[Caleb Hammer]

1. $851 again, holding.

[Katie]

No, you're right. No, you knew about it. You're right. You're right. There was an 18 too. That. You're right.

[Caleb Hammer]

What? Okay, she knew about it. What are the conversations around this? Then she knows about it. Then what?

[Kyle]

I told her I was at 1800 and I'm gonna stop spinning on it.

[Caleb Hammer]

That's not true. 516 to spend. Even though you only put the minimum monthly payment towards it. So you. Incorrect. You lied to her.

[Katie]

Always.

[Caleb Hammer]

Always.

[Katie]

Most of the time it's lies. I have to dig and dig and dig for information if I want things. If I want to know things anyway.

[Caleb Hammer]

Why?

[Kyle]

I don't know. I just. I mean, she has no.

[Caleb Hammer]

Give me an answer. Why? Why does she have to dig.

[Katie]

Have access to that. I have no login for that account. I don't know your login either. Just because I can guess you. Because you're easy and have one password for all things.

[Caleb Hammer]

Big boobs, capital letters.

[Kyle]

No.

[Caleb Hammer]

Oh, I know you. No, I wish it was that easy.

[Kyle]

Yeah, I mean, I'm not really trying to hide it.

[Katie]

Oh, I didn't know he was still spending on it.

[Kyle]

Also, I did not mean this.

[Caleb Hammer]

What do you mean you're not trying to hide. But she says. She tries to ask and know about it and. What do you mean? But. But she's not seeing it.

[Katie]

I don't think I've ever seen those transactions. Also, yeah, I've never looked at any of.

[Caleb Hammer]

Are we not married? Are we not committed? Are we not aligned? No finances. Do you. Would you guys consider yourselves combined?

[Katie]

Oh, yeah, we're.

[Caleb Hammer]

But you don't even know what's being spent on this card. It's almost at the credit limit. It's almost maxed out. Max out credit card. Your life. Max out credit card.

[Katie]

I honestly. I didn't know. I should have known.

[Kyle]

Yeah.

[Caleb Hammer]

Why would you not tell her?

[Kyle]

I didn't want her to worry about it.

[Caleb Hammer]

Yeah, and how's that going? Because it's only getting worse. So now it's a big worry for all three of us. We have a minimum to payment. 59 again. He only made the minimum payment last time. 516 of purchases. $40 of interest is accruing on a monthly basis. 40 being stolen. Well, how do you not know? Do you not look at your own account? I know she doesn't, but why don't you?

[Kyle]

I don't even know what the interest rate is on that one.

[Caleb Hammer]

Oh, for sake. Guys, go through our debt class so you can learn how to assess your debt. Figure out what good debt is, figure out what bad debt is and how to pay it off. How to negotiate all this stuff. Also take our budgeting class. Go through it together. Take the quizzes together. Do everything together so you can be united and actually do it. Do it. You get it for free. It's 15% off for these people when all bundled together, which is great for them, but you guys get it for free, so do it. You're shocked at how much interest is accruing on it. Come on. Come on. Guess. What if he doesn't even make any more purchases and only does the minimum payment as he's been doing. How long do you think it takes to pay off?

[Kyle]

Three years. Pay it off.

[Caleb Hammer]

Okay. Yeah, yeah. Seven years. Happy 31 year old birthday. And that is without one purchase being made ever on this card. Not one.

[Katie]

I'm gonna take all your cards.

[Caleb Hammer]

Should that be how this conversation is?

[Katie]

I don't want it to be.

[Kyle]

No.

[Caleb Hammer]

Then what are you gonna do to man up for the first time in your life?

[Kyle]

I guess stop spinning on my cards and give her full access to all my cards so she can.

[Caleb Hammer]

You need to be babied.

[Kyle]

No, I don't need to be babied, but she needs access to him so she can see accountability, I guess.

[Katie]

Yeah.

[Caleb Hammer]

McDonald's 32 going in and getting some bull for vaping. Who knows? Chick Fil A going and getting some crap. Headhunters. What's that?

[Katie]

That's a vape store.

[Caleb Hammer]

Great. Wonderful. Going and getting some. Going and getting some. Going and getting some bull. Going and getting some bull. Going and getting some. It's all drinks, it's all food, it's all crap. Getting some donuts Going and getting some BS raising canes, water, burgers. Going in against a BS. 27.74% interest rate on this card. Interest charge this year. 350 bucks. Pride from your household. 350 bucks. Imagine where that could go today.

[Katie]

I have no idea. Honestly.

[Kyle]

I'm paying off something.

[Katie]

Yeah.

[Caleb Hammer]

Looking at here. $30,000 for what? Oh, a ram. That has you written all over it. A manly west Texas Ram. 1500. Actually $30,000.

[Kyle]

Actually a Ford guy, but the Ram.

[Caleb Hammer]

Well, great. So it's even worse. So you have $30,000 for something you don't even like.

[Kyle]

Well, I didn't say I didn't like it.

[Caleb Hammer]

Ran 1500 30, 000 hours. Kill me now.

[Katie]

Upside down on it.

[Caleb Hammer]

Oh, I bet you are. I'm not surprised. Guys, 19.8% interest. What are we doing? What life are we living in what world? A 20%. A credit card interest on a car. A 20% interest rate on a truck. What's the deal with predicting the future of business? Inflation's up, then it's down. Rates are cut, then they're raised. It's like trying to follow the plot of a bad soap opera. If someone could just invent a business business crystal ball already, that'd be wonderful. But until that Happens, today's sponsor, NetSuite by Oracle is the next best thing. Over 40,000 businesses have future proof their operations with the number one Cloud ERP. NetSuite combines accounting, financial management, inventory and HR all into one seamless platform. Here's the thing. Running a business is stressful enough without wasting time on a patchwork of tools. With NetSuite's unified system, you get real time insights and forecasting at your fingertips. To put things simply, you can stop guessing and start making smarter, faster decisions. And when you can close the books in days instead of weeks, that's less time stuck in the past and more time crushing your next big goal. Whether you're bringing in millions or hundreds of millions of dollars, NetSuite helps you tackle challenges and grab opportunities before your competitors can blink. When looking at an ERP to step up my business management, I know NetSuite would be the choice for me. Want to stay ahead of the game? Download the free CFOs guide to AI and machine learning at netsuite.com hammer it's packed with insights to help business stay ahead. Again, that's netsuite.com/ thanks to NetSuite for sponsoring today's episode. Now let's get back into it. That, by the way, is worth $22,000. So we're dramatically underwater already. 20% of credit card interest on a truck. Did you know this?

[Katie]

I didn't know the interest rate.

[Caleb Hammer]

Honestly, how did no anything to me when we.

[Kyle]

When I signed the papers to get it.

[Caleb Hammer]

Yeah, you went over all the paperwork. Well, why weren't you listening?

[Katie]

I didn't think about it.

[Caleb Hammer]

How are you not thinking about. We can't do that. You can't not think about it. What do you mean? You don't want to know.

[Katie]

I didn't even want the truck in the first place. He had access to his father's truck from the get go.

[Caleb Hammer]

What the are you doing?

[Kyle]

I got tired of asking to borrow his truck and I didn't.

[Caleb Hammer]

Oh, man. But now you're borrowing the bank's money instead. At 20%, I doubt that interest was on your dad's truck.

[Katie]

Nothing. You borrowed it, didn't have to pay.

[Caleb Hammer]

No, exactly. You just had to ask. Which I'm not saying don't get a car at some point.

[Katie]

No, it's saying we already had a vehicle.

[Caleb Hammer]

What?

[Katie]

Dodge Journey. I. It was our vehicle. Our family vehicle.

[Kyle]

Yes.

[Caleb Hammer]

Whoa. I mean, did you guys need to leave at the same time though? Could you only do one car?

[Kyle]

There was before I was in the the field. I had a service truck I was driving back and forth to work, which was an hour and a half to work every day.

[Caleb Hammer]

Why the this car? Why a 20 interest rate on a Ram?

[Kyle]

I thought I'll be able to refinance it in a year and get it down lower.

[Caleb Hammer]

And you probably can. I doubt the rate's gonna be good. We can probably get you close to like 10%. My life. That's not like. That's good anyway. 20% interest on our tr.

[Katie]

What is the minimum monthly 700 something?

[Caleb Hammer]

No. 595, I think. 595. Yeah. Okay. For. And how is it, how's this car that we're dramatically underwater and have a credit card interest rate and chunky payment on?

[Kyle]

Pretty nice. I mean it gets us that point A to point B and it's gonna.

[Caleb Hammer]

Last for a bit.

[Kyle]

Yeah.

[Caleb Hammer]

Miles. Condition now.

[Kyle]

72, 000 miles on it now.

[Caleb Hammer]

Hey. Condition? Oh, pretty fair. Fair. Fair's usually not good in the car world.

[Kyle]

Well, I've. What was it? A trailer came unhitched on the truck, smashed into the tailgate. But besides that, it's a pretty good truck.

[Caleb Hammer]

The toys, the gas station food, and now a 20 truck is more important than the child that is growing in there that she's gonna take a. And it's gonna come out one day.

[Katie]

That's exactly how it feels too.

[Kyle]

No, it's not.

[Caleb Hammer]

But it is because that's what you're doing. When did you get this truck?

[Kyle]

September of 23. No. 20. 23. Yes, September.

[Caleb Hammer]

So a year ago.

[Kyle]

Yes.

[Caleb Hammer]

What is the, what is the term length on this?

[Kyle]

68. 68 months.

[Katie]

68.

[Caleb Hammer]

Stop it, guys. America, what are we doing? What is our obsession? Willing to get a multi, multi, multi long year, seven year, almost crap at a 20 interest with a minimum payment that we can barely afford. Also that you can have a manly truck for your west Texas oil riding friends. Who cares? How about the kids? How about the kids, huh? Maybe they matter a little.

[Kyle]

My son likes the truck a lot why?

[Caleb Hammer]

Because they don't have wheels. They don't matter as much. Your son likes a truck. It doesn't know what's going on. Can't even. It's barely starting to form core memories in its life. Likes the truck. It likes anything that goes vroom.

[Katie]

Yes, he does.

[Caleb Hammer]

Or choo choo.

[Kyle]

Yes.

[Caleb Hammer]

Roadrunner. Is this a continuation or is this a different.

[Kyle]

That's different.

[Caleb Hammer]

This is a different thing.

[Kyle]

Yes, that's my four wheeler.

[Katie]

Yes.

[Caleb Hammer]

Do you need a four wheeler? You already have a thing with. Guess what? Four wheels.

[Katie]

That does not run.

[Caleb Hammer]

It doesn't run.

[Kyle]

Oh, no, it runs.

[Katie]

I just. At one point.

[Kyle]

Yeah, he blew the front diff up.

[Caleb Hammer]

So does it drive right now?

[Katie]

No.

[Caleb Hammer]

Sounds like it doesn't run. A four wheeler for. Why?

[Katie]

That's our hobby. We go out.

[Caleb Hammer]

What? Just roll around in the sand out there. Just.

[Kyle]

Okay, not sand. We usually go.

[Katie]

There is sand. Sand though.

[Kyle]

There's a little bit sand, but it just going muddy.

[Caleb Hammer]

Pretty much roll around in the mud. Get a mud room. Get a mud room.

[Katie]

Already has four wheelers that we could have been using again.

[Caleb Hammer]

Again with this. What are you. So that's actual child purchases. You're making me shake my fat. Jiggling. What are we doing?

[Kyle]

I just wanted my own four wheeler and I went out and got.

[Caleb Hammer]

I got it just stacks. It stacks. It stacks, dude. 22. And it's not paid off until 2029. What? Yeah, we're just willing to finance everything in our life. What is the interest rate on this?

[Kyle]

Not good.

[Caleb Hammer]

God. That's not a number.

[Kyle]

I don't remember. I think it's 18. I think it's 18.

[Katie]

So just as bad as the.

[Caleb Hammer]

I'm like great mentally getting worn down. Like they're. When I hear 18, that should be the end of the world. And you're making it become like a basic normal number. Like that's what people are just getting.

[Kyle]

Does it say it on there?

[Caleb Hammer]

You already had your kid at that point or the kid was. No, no, no, no. Yeah, I. I know how math works. Okay. We didn't. Wait, when did you get this?

[Kyle]

2022.

[Caleb Hammer]

Okay. So kid was like baby.

[Kyle]

A baby still?

[Caleb Hammer]

Yeah. So you did have your kid that just said 2018. I was confused. Okay.

[Kyle]

No.

[Caleb Hammer]

Oh. How do we approach this in the future? You just get these bull things that by the way, already exists in your family.

[Kyle]

But this four wheeler that I got is 1,000. So it's bigger than all the folders we've had.

[Caleb Hammer]

Oh. Oh, big guy.

[Kyle]

Yes.

[Caleb Hammer]

Oh, special little guy.

[Kyle]

Yes.

[Caleb Hammer]

Oh, what a. What a man. What a handsome gentleman. Handsome gentleman out showing all his friends. He has a bigger four wheeler to make up for his micro dick.

[Katie]

Oh, it's nice and pretty too. He makes camo.

[Kyle]

No camo. I put.

[Caleb Hammer]

Oh, good. Everyone can see you in sand.

[Kyle]

I put two thousand dollar tire.

[Caleb Hammer]

What is a Afghanistan level camo or what? Or everyone's gonna see you.

[Kyle]

No, just real tree camo.

[Caleb Hammer]

Oh, great. That's what west Texas is known for, trees. Guys, we're so smart.

[Kyle]

I actually picked it up in Austin here at the family power sports.

[Caleb Hammer]

Wonderful. Proud of you. You got scammed in Austin.

[Katie]

I also had been saying no.

[Caleb Hammer]

And what did you just say about the tires? So this has something about tires.

[Kyle]

$2,000 tires I put on it.

[Caleb Hammer]

Each.

[Kyle]

No, all together, all four.

[Caleb Hammer]

Okay, so this is. This is crazy. The thing that's crazy is that dad already had him 18% until 2029. I mean, you guys are just going into your late 20s, early 30s with these debts for no reason. For no reason. With a $0 in retirement, you with your income, buddy, you could be a multimillionaire, multi millionaire. If I took your income, plugged it into moomoo, my investing app of choice. That's what I use for my regular brokerage, not like my Roth ira. But I go in there and I just put that money in there and I buy like s and p.520% of your income. Dude, boom. Multi millionaire by retired. Because you're investing for 22. You do not realize what you are giving up. You do not realize that what you are giving up. Time is on your side unlike any other. You are making an incredible income. Multimillionaire by retirement is what you're giving up. Because every year you don't invest from 22, that number literally will probably lower by 100, 200,300. Every year you add, it just becomes hundreds of thousands of dollars. You are not making in compound interest. Do we understand what I'm saying?

[Katie]

I fully understand. I know time is on our time on our side and we should be doing it. And you even started to go into and open a Roth for each of us, but no money has been put into them.

[Caleb Hammer]

Yeah, 223 minimum payment. I mean, these are stacking like crazy. Already $7922 owed. On it again. 18. The last one was a 20%. And you. Do you understand what I am saying?

[Kyle]

I do. I understand that the interest rate on that's pretty high. And I was gonna work on trying to get it Refinanced.

[Caleb Hammer]

What? I don't think you understand because now that's the second thing you've brought up. The interest rate alone is not the issue. You do not need this. You do not need this. And you're not like in lb, Jane. Everyone that you meet just whipping out and seeing who has the biggest dong when it comes to four wheelers. Okay, it is. That is not what we're trying to do. We're trying to set you up for success. If you get this from 18% to 8%. I'm not celebrating that because that's one still a interest rate. Let's be clear. For something we do not need that is a depreciating asset. This having. This is the issue. We're probably selling this.

[Katie]

Yes, it is.

[Kyle]

Yeah, it's a 15.

[Caleb Hammer]

It's having these things. It's having a $30,000 car, not the interest rate. The interest rate is stacking, making it worse. It should be a $10,000 thing. Three years. Money Guy it up. They essentially suggest their financial advisors here on YouTube. 20% down on a car no longer than a three year term, no more than 8% of your gross income. That's the car that you would have been allowed to finance. It's having these that are. Refinancing is not getting you out of this. I. I want to correct that mindset immediately. Unless you're refinancing them to like 1% and you're not. Okay. What's up with the regular Capital One Platinum?

[Kyle]

Oh, that's a credit card, is it? Yes.

[Caleb Hammer]

Interesting. And what is up with it?

[Kyle]

I haven't spent. I haven't spent on that one in a while. That one has been.

[Caleb Hammer]

What's the balance on here? Is this his only.

[Katie]

Yes, it is.

[Caleb Hammer]

And what's the balance?

[Katie]

It's in the thousands. I know, right?

[Caleb Hammer]

$674 with a $62 minimum fee payment. What's this? What? What? Why do we have this? Why is no progress being made other than the minimums? Huh?

[Kyle]

That was my very first credit card.

[Caleb Hammer]

Very good. That means you've had the longest amount of time to pay it off. Why is there a massive balance on here?

[Kyle]

So in 2022, right after I got the folder, my old company I was with got bought out.

[Caleb Hammer]

Okay.

[Kyle]

And we went struggling pretty bad. They lowered pay rates and all that.

[Caleb Hammer]

Remember we said you can't see emergencies coming?

[Kyle]

Yeah. And we use credit cards to help us float until I.

[Caleb Hammer]

Why not cut back on lifestyle? I know you didn't cut back on lifestyle. You didn't get rid of the four wheeler?

[Kyle]

No, I didn't.

[Caleb Hammer]

Exactly. You shouldn't be going in debt till you cut back on everything, until you can't. And that's when we start digging deep on that. And even still you haven't been struggling for a while. So even if we are in a moment of struggle and if someone does not have pet insurance and I recommend that everyone does, trust me, I've the bills I accrue for my dogs that try to kill themselves constantly. Okay, but let's say an emergency happens there. No one's going to let their pet die. So sometimes they put it on a credit card. That is not what I am upset about. I'm upset that when you are doing better, which you are, you are not doing everything in your power to pay down the card. You only make the minimum payment on both the cards I've seen so far. And same with the vehicles.

[Kyle]

I paid $500 towards it two or three months ago.

[Caleb Hammer]

Congratulations. That's not what I have here. And you're making the same kind of income. I don't see that. And that means you were literally at the limit. You were at the limit.

[Kyle]

Actually above the limit.

[Caleb Hammer]

So it's not that it was. It was the first credit card. You were at the limit. This credit card was recently spent on if it was at the limit.

[Kyle]

Yeah, it was the monthly payment and the interest rate on it got me above the. The limit.

[Caleb Hammer]

Oh yeah, yeah. So how long to pay off? Minimum monthly payment only, folks. How long to pay off? The way you're doing it currently? Yeah.

[Kyle]

Seven years.

[Caleb Hammer]

Seven.

[Katie]

That's being nice, I think.

[Caleb Hammer]

Oh, 12 years.

[Katie]

12 years.

[Caleb Hammer]

12. Over a decade. Congratulations. Because of what you did.

[Katie]

Still spending on those.

[Caleb Hammer]

This he did not still spend on. He was. If it was literally at its limit and then over the limit. He was recently spending on it. He didn't this last month.

[Katie]

Oh, good.

[Caleb Hammer]

Payroll. We had 7,000 hours come in. Last thing you said. You said 9,000 comes in. Wait, so what's that? What's wrong?

[Kyle]

The last two months has been really rough. I've been having took a lot of days off with her father.

[Katie]

Yeah.

[Caleb Hammer]

Okay.

[Kyle]

He was diagnosed with.

[Katie]

What's the brain cancer.

[Kyle]

Brain cancer.

[Caleb Hammer]

Well, I'm sorry.

[Kyle]

That's horrible. He passed away last Saturday or two Saturdays ago.

[Caleb Hammer]

That's horrible. I'm sorry.

[Kyle]

Yes.

[Caleb Hammer]

So because of that a little less income came in. Yeah, I wouldn't watch that on anyone. Obviously. That's horrible. Is the income going to start re stabilizing now?

[Katie]

Yes, actually it has gone up already has.

[Caleb Hammer]

Okay, so $7,000 came in. Now again, this is when we cut back because less money is coming in. How much went out? How much was spent?

[Katie]

Probably over that.

[Caleb Hammer]

How much was spent?

[Kyle]

6,000. Okay, six.

[Katie]

I'd say eight.

[Caleb Hammer]

Okay, how about 9,177? Only 7,132 came in. We don't need to double up. A life trauma that is horrible to go through with. Also making our future life even worse. And you guys could have cut back. We saw your spending already on one credit card. It was ridiculous. It was ridiculous. All for snacks and drinks and vaping and chargers. Three a week. What the even is that we're spending 2,000 hours more than we make. No, we cut back in times that are hard. We sacrifice. We don't sustain the level before because if you do, you're stuff in the future. Future's now. And you yourselves.

[Katie]

And we have so no pet insurance for.

[Caleb Hammer]

You have pets.

[Katie]

We have pets. We have three dogs and five cats and a lizard. We walked into our house with only two dogs and one cat. And then our cat, my cat.

[Caleb Hammer]

Irresponsible to get pets when you can't afford to take care of them at the. The full stability that is necessary.

[Kyle]

Well, her cat kept getting pregnant. Yes, pregnant.

[Caleb Hammer]

Tell it to stop.

[Kyle]

Yeah, it doesn't listen like that.

[Katie]

It's our.

[Caleb Hammer]

We've already scheduled spades are free at community services. Oftentimes I don't know what small town does, but you could probably. Yeah, you already came to Austin to pick up a four wheeler, bring the cat's vagina over here and have it cut off. What, bro? What are you talking about, man?

[Katie]

She's actually pregnant. Currently.

[Kyle]

Yeah, she is pregnant currently.

[Caleb Hammer]

Well, at this case, in order for you guys to survive, you guys are gonna have to be eating the cats and eating the dogs pretty soon. Hey, we've had a late payment fee on this card this year. Well done. Neither of you knew this. I'm gathering from the faces that are being shown towards me right now.

[Katie]

Oh, no idea.

[Kyle]

Yes, the auto payment. Auto pay did not come out, so I had to go in there.

[Caleb Hammer]

Why? Because you didn't have enough money in your account that is getting pulled from. Okay, so why do we up that part then?

[Kyle]

Probably gas station.

[Katie]

I. I couldn't tell you.

[Caleb Hammer]

In the checking accounts.

[Kyle]

Yes, I.

[Caleb Hammer]

If meaning there's more to come. I'm gonna.

[Kyle]

Oh, there's a lot more to come. But the gas stations.

[Caleb Hammer]

I just from this conversation so far, what we've Done. Is. We're just going through seeing where it's at. But your language and presentation towards me is not suggesting that there's gonna be any change after this. Anyone else picking up on this? Is this just me? Chat? Is this just me?

[Kyle]

I believe it's just you. I mean, we want to change.

[Caleb Hammer]

Okay, great. I'm glad. Okay. $602 in interest this year so far on that card. $602 pulling away from us. Okay. There's over a month of your income gone. One Just having the credit card. This looks. I see wheels at the top of this thing.

[Kyle]

No, that's the same. That's the same account. Roadrunner. I think the interest rate is on that.

[Caleb Hammer]

Oh, it is. 18.

[Kyle]

Yeah.

[Caleb Hammer]

72 months. So this is the same thing I already saw.

[Kyle]

Yeah, same thing. I just. Oh, the paper think.

[Katie]

Yeah, just one more Wheeler.

[Caleb Hammer]

Good.

[Katie]

You just want me constantly on his phone on Facebook Marketplace for another project. What are you doing a side by side delete Facebook?

[Caleb Hammer]

Delete the Zuck.

[Kyle]

I can't delete Facebook. And I got. I get notifications. You know, you get notification.

[Caleb Hammer]

You're 22. You're two decades under the meeting age of Facebook. What notifications are you getting?

[Kyle]

What family's doing. And. And family.

[Katie]

He does have a family reunion thing that.

[Caleb Hammer]

Congrats. Yeah, but what do you need to see for it? Just know when it is. And go what? And it's just. It's just someone posting some AI thing of a veteran with 10 arms. And they're like, thank goodness. Like, everyone pray for this guy. And it's some AI generated image. And everyone thinks it's real on Facebook because they're 69 billion years old.

[Kyle]

You know, mine's mostly about mechanic stuff and four wheelers.

[Katie]

That's all he looks at.

[Kyle]

Yeah.

[Caleb Hammer]

You can't have that level of temptation, though. You. You don't have the control. Yeah.

[Kyle]

It's kind of hard. I mean. Yeah, but I'm on Facebook Marketplace. I look at pretty much anything from furniture to folders.

[Caleb Hammer]

Why though? You have. You have that shopping addiction, obviously, on different things. So why tempt yourself something new?

[Kyle]

Just want something new.

[Caleb Hammer]

I know. So why tempt yourself like that then going forward? Maybe we're building these different little habits when we're bored instead of looking at all those things.

[Kyle]

I do think I need to delete Facebook. But it's on my Facebook. Tick Tock, Instagram.

[Katie]

He has Zillow that he constantly looks at. He wants us.

[Caleb Hammer]

I do too. It's fun. But you can't control Yourself.

[Kyle]

Yeah. We supposed to go look at a house this weekend in the still west Texas.

[Caleb Hammer]

But that goes against. You guys go to east side anyway. So like what do you. Why. If you think you want to go to the east side, why get into a new mortgage at a higher interest rate on the west side?

[Katie]

That's all I keep saying. I do not want to move. I am. Okay. And I mean if he wants to do the house improvements because there are improve on our house.

[Kyle]

Other day you were talking about how you wanted to move that you wanted a bigger.

[Katie]

I do technically want a bigger house.

[Kyle]

Our mortgage used.

[Caleb Hammer]

Okay, well then you just lied to me.

[Katie]

Well, but I can wait until it's in east Texas. I don't need a bigger house.

[Kyle]

Well, our mortgage used to be $933 a month.

[Katie]

Yeah.

[Kyle]

And then now it's 14.

[Caleb Hammer]

Why? Property taxes.

[Katie]

We have no idea.

[Caleb Hammer]

Are you homesteading?

[Kyle]

I did that two months ago.

[Katie]

Barely back.

[Caleb Hammer]

Did you back home set though?

[Katie]

Yes, yes, yes, yes. We should get money back.

[Kyle]

I should get money back. I'm just waiting for that. But I did do that and I'm just waiting till the end of the year to see if my monthly payment drops. But she was. We both agree that that house we're living in is not worth the fourteen hundred dollars a month.

[Caleb Hammer]

Well, I don't know. That's the cost of the debt and the property taxes. And this is. I mean if it's literally not worth it, then you need to liquidate that asset and get to send to something that's making moves. You know, if it's not worth it and it's going down, I'd rather it be rent.

[Katie]

Okay, what is deserve fence in the back that's broke.

[Caleb Hammer]

Cool.

[Katie]

So our dogs can't be outside anymore.

[Caleb Hammer]

Get a hammer, some wood.

[Katie]

It's a whole metal fence. It went down because the storms pulled it down.

[Kyle]

And I lost my service truck for two months due to transfer case going down on it. So I didn't have a welder to weld on the back the weld.

[Caleb Hammer]

What you do now?

[Kyle]

I do now.

[Caleb Hammer]

Cool. Why haven't you fixed that Mr. Welding guy?

[Kyle]

Laziness. Just.

[Caleb Hammer]

Well, there you go. So I no longer have any. I got sympathy for that. Yeah. So. Okay, great.

[Kyle]

Oh, and the wind. I'm the wind. Is.

[Caleb Hammer]

Oh no, guys, there's wind. What is the deserve card? It looks like a card.

[Katie]

That one's mine. That one's a college.

[Caleb Hammer]

So guess what? You do have debt. Why do you have debt? Why is that not being paid off? In your end, this has been pick on him so far. Why do you have a balance that is not going anywhere more than the minimum payment? I'm about to end this man's whole career.

[Kyle]

When's the last time you paid the monthly payment?

[Caleb Hammer]

Well, the monthly payments being made, but just the minimum monthly, which is 15, is not gonna make any progress. Two years to pay off the way you're doing it. Two years?

[Katie]

Honestly, it's because I spend my. My money on grocery stores.

[Caleb Hammer]

Oh, come on.

[Katie]

Well, how much stuff. It's.

[Caleb Hammer]

There it is. So that's not.

[Katie]

But. And I just don't want to use his money because he has so many credit cards.

[Caleb Hammer]

Why is it his? Mine? His, Yours.

[Katie]

That's just what I was.

[Caleb Hammer]

You told me you were combined.

[Katie]

We are and we only.

[Caleb Hammer]

Then why is it his mind?

[Kyle]

Yeah. One banking account.

[Katie]

Because he wants his money. He wants to spend.

[Caleb Hammer]

Why is it your money? Is it not Your couple together, married.

[Kyle]

It is. I just.

[Caleb Hammer]

Then what is?

[Kyle]

I don't get to spend my money on what I want.

[Caleb Hammer]

My money on what I want. You guys are contradicting your. Do you not realize this? I can't spend my money. This is. You guys are either united in your money or you're not.

[Kyle]

And I mean, don't be wrong. I spend my money on my money. Our money on her a lot. I've gotten her three apple watches. I stop spending your money.

[Caleb Hammer]

I stopped. What are you talking about? That's you spending your money on a gift for her. Yes, I'm talking about whether or not she would take it and pay off this car. But she's saying I don't want to take his money because he wants to spend his money, even if it's not a gift for her. So. What are you talking about? Your guys's money are separate. That's what it is. You can say otherwise, but the way you're talking about it and the way you're actually using it, your money's separate. You guys are not together.

[Katie]

I hadn't thought about it that way.

[Caleb Hammer]

But how have you not. Did you not hear the words you guys just said?

[Kyle]

I mean, what was it like two hours before we got here? We had to go to target and 400 on makeup before you got here.

[Caleb Hammer]

400 of makeup.

[Katie]

In her defense, my dog did all of my makeup.

[Caleb Hammer]

Everything.

[Kyle]

Yeah. Yes.

[Katie]

So we went from two dogs, we had two kennels, that we would lock them up at night. Yeah, for a night.

[Caleb Hammer]

Okay. Okay.

[Katie]

And then when we got that third dog, we had nowhere to put Her.

[Caleb Hammer]

Are you getting more dogs?

[Katie]

She walked home with us. Yeah, I was on a walk in my neighborhood.

[Caleb Hammer]

I couldn't turn it down either.

[Katie]

Leave our house at all. I. I would kick her out. Out of my front door because she was still pretty. Puppy. Puppy and rude. I know.

[Caleb Hammer]

No, that's not even rude. This is me. You're allowing it to go die. No. You give it to a shelter.

[Katie]

No, no, no, no, no, no, no, no.

[Caleb Hammer]

You kicked it out your front door.

[Katie]

So I wouldn't have to pick up her potty accidents. She wasn't potty trained at that time. And I was really tired, overwhelmed with Lucas.

[Caleb Hammer]

You still take it to a shelter, not hope or let it go and see if it dies. No.

[Katie]

She's still in the house.

[Caleb Hammer]

Yes. But you're saying you kicked it out the front door?

[Katie]

Yes.

[Caleb Hammer]

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[Katie]

Well, our Fence was down anyway. She would have gotten out.

[Caleb Hammer]

You take it out with a leash like a adult. You take on the responsibility. You have it. You don't just say good luck.

[Kyle]

The dog did stay.

[Caleb Hammer]

This is disgusting. It did it. Lucky for it still does kind of.

[Kyle]

She gets out a lot.

[Katie]

No she does get out a lot.

[Caleb Hammer]

I don't care. You still did the action of.

[Katie]

Yes.

[Caleb Hammer]

It could have gone away.

[Katie]

Yes.

[Caleb Hammer]

And died. That's gross. That's disgusting. Was $100 in interest this year so far on that card. But we don't pay it off cuz it's here's money. We're not united and we have no united goals other than the little thing we want on East Texas. Other than that no actual ambitions or anything. Vivint Solar Security.

[Katie]

What do we have security House system.

[Caleb Hammer]

Yeah. For a town that five people live in.

[Kyle]

29,000 okay.

[Caleb Hammer]

Yeah. Real danger.

[Kyle]

Bigger than five.

[Katie]

Our neighborhood's not the best neighborhood is not the best.

[Caleb Hammer]

I get. I'm okay with it. Not okay with the finance I've been paying.

[Kyle]

You get it when you get it though. That one.

[Caleb Hammer]

Why this? You have 20% interest. Car debt and you have 30% interest discovery.

[Kyle]

That one. I said on auto pay. Auto pay when we first got it and then I thought it was coming out but I waited six months to look at it and I realized it never came out.

[Caleb Hammer]

Oh for.

[Kyle]

So I was six months behind on it and I just been trying to pay that one off off.

[Caleb Hammer]

What's the interest?

[Kyle]

I think I believe zero. I could not find anything on.

[Caleb Hammer]

Well the auto pay is 35. That's the minimum. I pay 100 but I wouldn't. I would just do the minimum monthly now and then. The current balance is 654. If it's 0% interest go kill something else. Unless we're snowball methane. We'll figure that out in the end. Why do we have a Walmart card in collections?

[Kyle]

Is that me?

[Caleb Hammer]

It does look like you were born in a Walmart. But why do we have a Walmart carding collection?

[Kyle]

Is that minor herbs?

[Caleb Hammer]

I don't know. How would I know? How would I know? Why are you asking me? Guys, Walmart. You can't tell me what your own. You sent this? Oh you're going to make me lose my mind.

[Kyle]

I believe that one's yours. The capital one Walmart card.

[Caleb Hammer]

It's 2099.

[Katie]

The 2000 maybe. Are you sure it's from the card? I'm pretty sure. That's medical.

[Kyle]

Yeah, that's medical. $2,000.

[Caleb Hammer]

Medical. Wait one second, one second, one second, one second.

[Katie]

Because I did. I hadn't.

[Caleb Hammer]

Okay, it's medical 2099.

[Katie]

That's from.

[Caleb Hammer]

You guys. Don't. Didn't have. It makes so much money.

[Kyle]

Yeah, I didn't have insurance. I missed the open enrollment. Well, I did it.

[Caleb Hammer]

But I did have insurance now.

[Kyle]

Yes.

[Caleb Hammer]

Why do we still owe this?

[Kyle]

Starts January 1st.

[Caleb Hammer]

Why do we still owe on this? Why is it in collections? Why didn't we pay? Get on a payment plan at the hospital. They pretty much all offer them zero interest.

[Katie]

I honestly didn't think about payment.

[Caleb Hammer]

Because we're living like children, that's why. So we have no responsibility. We only get toys. And we just blow as much money as we want. Don't care. Take care of our animals. We just. Well done. So let's do the house, guys. We're at a 4% or under 4% in interest. The mortgage of 130,000 hours. When we're talking about moving the. Are you talking about. Unless you're moving somewhere else. Like why right now? It doesn't make sense. And it's not for space. It would just be for wants. Yes, but it's not space necessity.

[Kyle]

No, no. I mean, it's. We've got the room right now.

[Caleb Hammer]

Yes. That's 130,000. Oh, and $60 with a minimum payment of. Yeah, 1400. But we don't know what it did jump. Yeah, I know. Yeah. Because property taxes are essentially half insurance. What did your insurance jump to? Do you know?

[Kyle]

Did the insurance jump up?

[Caleb Hammer]

Get it? I can't see. I can't see.

[Kyle]

I believe it was just the. The.

[Caleb Hammer]

This is crazy. Texas principal to the home this year, 2000. But escrow, taxes, insurance, 6000. Crazy. Anything else that you guys owe money on? Because I think I'm to the checking account out. Well, you said you owed your dad or something, right?

[Katie]

For insurance? Yeah.

[Kyle]

Yeah.

[Caleb Hammer]

What. What do you. What is it even for now? Why is daddy paying for car insurance?

[Kyle]

Well, I pay him, but it's $140 a month I gotta give him if we.

[Caleb Hammer]

Oh, but it's not a debt.

[Kyle]

No, it's not a.

[Katie]

No. We were three months behind.

[Caleb Hammer]

Why were we three months behind?

[Kyle]

I forgot to pay him and he just forget.

[Caleb Hammer]

That's it?

[Kyle]

Yes, I just.

[Caleb Hammer]

It's not that we couldn't.

[Kyle]

I know that I couldn't. I just forgot. And after.

[Caleb Hammer]

So irresponsible, so unorganized.

[Kyle]

This Friday.

[Caleb Hammer]

Oh, what do you own this Friday?

[Kyle]

Huh? I get paid this Friday.

[Caleb Hammer]

What do you owe him this Friday.

[Kyle]

Just the monthly payment. 140 for the.

[Caleb Hammer]

You said he'll be caught up. So you're only just one now.

[Kyle]

Yes.

[Katie]

We have paid him twice since then.

[Kyle]

Yes. And he'll be caught up.

[Caleb Hammer]

So unorganized. You don't know each other's situations. You call it his money. You're mine. This is such a way behind mess you. Of course not. I'm not surprised for a single second.

[Katie]

He also non stop buys tools off of his. The tool truck.

[Caleb Hammer]

That's the tool truck. The tool truck. Do you owe money to the tool truck?

[Kyle]

Yes.

[Katie]

$1,000. Oh, only a thousand minimum. No, he had to pay it down.

[Caleb Hammer]

That is low for the tool truck. People. Stop. You guys need to stop getting on your knees for this Tool Man. That's that shows up.

[Kyle]

Okay.

[Caleb Hammer]

I'm. You guys are obsessed. Everyone. Everyone over there is obsessed. For theing Tool man shows up in a special little truck. Ooh. Special little truck. Time. Time to go into a billion percent interest for a tool.

[Kyle]

No interest. I don't got a credit account with them. It's on the.

[Caleb Hammer]

But you said you owe a thousand.

[Kyle]

Yes. So you have a credit account with the truck and then you got the truck account. The truck account is pretty much I buy the 12th off of you and I got to pay you the monthly payment. And there's no interest rate with it.

[Caleb Hammer]

The are you talking about?

[Kyle]

So let me see.

[Caleb Hammer]

Are you sure?

[Kyle]

Yes. 100%.

[Caleb Hammer]

What's your monthly payments?

[Kyle]

It's 140 bucks a week.

[Katie]

Every two weeks.

[Kyle]

Every check it's 100.

[Caleb Hammer]

Why have another $280 a month payment from Tim the Tool Man.

[Katie]

He says it's for his work. But I.

[Kyle]

His name's Eddie.

[Katie]

I don't know any other debt.

[Caleb Hammer]

Think long and hard because you don't know about each other's debt. So you need to tell me about your own individual ones.

[Kyle]

Oh, that. That should be it.

[Katie]

Ma'.

[Caleb Hammer]

Am.

[Katie]

I don't have any debt.

[Kyle]

Check any.

[Caleb Hammer]

Count 247. Ending balance. Dang. Is this the only checking account?

[Katie]

Yes.

[Caleb Hammer]

And we. We're ending with 247. That's so dangerous. What? If anything happens you're just putting yourself. And even more importantly, because they didn't consent to coming into this world. Your children. Unnecessary risk just for your own addiction. Suspending and your immature. To be able to sit down and have a reasonable conversation about finances without bickering at each other. Without hiding things, whatever it may be. You all bring both things to the table and prevent each Other from coming to the table. Some subscriptions. Anytime Fitness, all this stuff.

[Katie]

Oh, we don't use those. We both have one, but we don't use them. We don't. We don't have the time.

[Caleb Hammer]

You know what fun fact.

[Katie]

Usually cancel mine can be cancel his cannot.

[Kyle]

Why the land? Yeah, I got a year on some plan I saw.

[Caleb Hammer]

Oh, you're easy to sell. Why have these unnecessary subscriptions? Honestly, I encourage people to have a gym membership while getting out of debt and get into the gym and work out so you can prevent man tits like mine. I encourage it. I'm not good at it, but I encourage it. Anytime Fitness, Planet Fitness, all that good stuff. Some minimum payments. Okay, here we come again. Stopping in, getting some. Stopping and getting some BS stopping in, getting some BS selling out. 150 to Mom.

[Katie]

That's. That's my insurance.

[Caleb Hammer]

So you're doing that as well?

[Katie]

Yes, we both have insurance with our parents.

[Caleb Hammer]

Health or car?

[Katie]

Car. Car. If we.

[Kyle]

That 150 will stop. December.

[Katie]

He has what? Three accidents.

[Kyle]

Three accidents. Yeah.

[Katie]

Three accidents. What he's.

[Caleb Hammer]

Actually, there's no one there.

[Katie]

Total two vehicles.

[Caleb Hammer]

Yeah. What are you crushing into armadillos hole.

[Kyle]

At 70 miles an hour and.

[Caleb Hammer]

Are you drunk?

[Kyle]

No, I was really sleepy. I gotta get up at like 4 in the morning every day to get to work. So I didn't sleep very well the night before and I fell asleep and hit a pole. And then the second accident. Lucky to be alive on I20. I20 is hectic as hell. It's a lot of accidents every day on it.

[Caleb Hammer]

Yeah. All 10 people are gone at the same time.

[Kyle]

We're passed. And everybody stopped and I didn't know and I couldn't stop.

[Caleb Hammer]

You didn't know.

[Katie]

He wasn't paying attention.

[Caleb Hammer]

Well that. That's not. You didn't know. It's. You weren't looking. I didn't know.

[Kyle]

I didn't know.

[Caleb Hammer]

Stupid.

[Kyle]

Yeah.

[Caleb Hammer]

By the time I got to the.

[Kyle]

Top of the overpass I saw tail lights and I went to stop and car just slid.

[Caleb Hammer]

Oh, you're a creature.

[Katie]

Yes.

[Caleb Hammer]

Going in and getting some a snack. Going and getting a sandwich. Apple Bill, some kind of subscription. Going in and getting a sandwich. Microsoft subscription. Going to Chick Fil. A. Going to the grill for 78 bucks. Huh.

[Katie]

The Microsoft is our gaming. We only game. Yeah, we only get Call of Duty through the game pass. We haven't bought Call of Duty.

[Caleb Hammer]

Okay, but if it's only for one game, you could get Call of Duty in a couple months of game Pass. Game passes. So you can do a lot of other games.

[Katie]

He plays other games. I I, I do not.

[Caleb Hammer]

We'll see if that fits. But you're going to the grill for $78. Going in and getting the sandwich. Academy sports 160 bucks. Door dashing McDonald's. And I know that McDonald's is about 10 light years from your house. ATM withdraw $123. Who knows where that went? Going in and getting a sandwich. Another apple bill. Some. Some kind of subscription. Another apple bill. Some kind of subscription. Maybe. Who knows. I don't know. And then going in and getting a Sammy. Chick Fil a. Going and getting a sandwich. Going in and getting a sandwich. This is a mess. They can't be that good. My goodness. Going in and getting a sandwich. Going in and getting a sandwich. Chick Fil a again. Going and getting a sandwich. Going and getting a sandwich. Sunny set up. Cafe Golden Chick. Wait. How long is this chicken account? This is crazy. This is crazy. Chick Fil a going in and getting a sandwich. Going in and getting a sandwich. Going in and getting a sandwich. McDonald's donuts. Smoke scene. Microsoft again. Wait. Two in one month?

[Kyle]

Yes.

[Katie]

Yeah. He's got one.

[Caleb Hammer]

You can't share.

[Katie]

No, we cannot.

[Caleb Hammer]

Because you play the same game.

[Kyle]

Yes.

[Caleb Hammer]

So he gets a sandwich for lunch and then every other day you guys go out to eat for dinner.

[Kyle]

Yes.

[Katie]

Yes.

[Kyle]

No one cooks.

[Katie]

Literally.

[Caleb Hammer]

Like actually yeah.

[Kyle]

We just don't.

[Katie]

I. When we first.

[Caleb Hammer]

You know. This is unacceptable. Your kids are gonna struggle to survive and you refus cook. Stop being children. Stop being children. That's not a joke. S. That's crazy. Who gives a crap? Inc. $73. Chick fil A. Another apple bill. Another subscription. Maybe Subscription. Hotel. Settlers. The train car. Chick Fil A. Sunny side up. Cafe Donuts. I'm seeing the same five places over and over again. Cuz we're addicted. Tik Tok shop. $71. What?

[Kyle]

What do you get? What'd you get?

[Katie]

Those were the litter boxes, I believe. No.

[Caleb Hammer]

What?

[Katie]

No, that was Amazon. I don't remember. Honestly.

[Caleb Hammer]

71. You don't know. What? You got steam cleaner on TikTok?

[Katie]

My sink cleaner?

[Kyle]

Yeah.

[Katie]

Was it that long ago? It wasn't that long.

[Kyle]

It was 71. That's the only thing on Tick Tock Shop you bought. That was about 70.

[Caleb Hammer]

We've overdrafted this year.

[Katie]

Yes.

[Kyle]

Yes.

[Katie]

Yeah.

[Caleb Hammer]

For why? So we can get sandwiches. We're overdrafting. So we can get sandwiches. We're overdrafting. Huh? Great insight, guys. Show me your subscriptions. Whoever has them on the phone. Pull it up and show me those subscriptions.

[Katie]

We only pay for Paramount plus and.

[Kyle]

Paramount Plus Apple subscriptions.

[Caleb Hammer]

That Apple that 5.95.

[Kyle]

Whatever a where's my.

[Caleb Hammer]

This is ridiculous guys. Insane. You getting. What are you getting? Two sandwiches a day. Are you going and getting a sandwich and a nicotine thing and a.

[Kyle]

And.

[Caleb Hammer]

And a. And a stupid little drink as well. You must be getting 10 things cuz we're at the. We're at the. You're going in more than every day.

[Kyle]

Well I buy breakfast and lunch for me when I'm out in the field.

[Caleb Hammer]

I'm budgetless.

[Katie]

Oh actually some of those subscriptions were for my pregnancy apps.

[Caleb Hammer]

Two of them were at least $1,400. Getting food miscellaneous bull extra 1300. Thank you. Almost $3,000 that could have gone towards debt retirement survival down payment on a new home went out the door on bull. We spent $2000 more than Cayman yet we spent $3000 minimum on bullshit. Probably closer to 4. I am angry actually. Angry because you have kids. This is just you two young couple around. There is a child on the way. There's a three year old and you're saying it doesn't matter. Your actions don't give a. You're acting like freshly new job. First 16 year old job ever. Got my little card from work spending. You're acting like a joke. You guys are floundering it. You're willing to let it just go away and have you have nothing to show for it. A mortgage, sure, but nothing. Not a single set in retirement. And we got some toys that are broken.

[Kyle]

I had like 2000 and then I pulled out of it.

[Katie]

I didn't know you pulled out of it.

[Kyle]

Yeah, that's a principal.

[Caleb Hammer]

When?

[Kyle]

Oh July it be last year. July area.

[Caleb Hammer]

Why?

[Kyle]

I thought you pay off a credit card.

[Katie]

I thought you weren't allowed half a.

[Caleb Hammer]

Credit card that you just built all the way back up again. This is why we don't do it. This is why we don't. You didn't change your behavior. This the budget that we follow in the classes that you guys take. This is the behavior change. Only then and then are you able to do any kind of consolidation or shortcut cuts. Not before we changed our behavior. 9,400 hits our account on average and get your minimum monthly payments support for.

[Kyle]

This podcast and the following message comes from America's Navy.

[Caleb Hammer]

The Navy offers new graduates hands on training and experience in careers like computer science, aviation and medicine. Plus education and sign on bonuses. Parents help Your grad start their career [e-mail]. all this stuff, not mortgage. And you don't know what your mortgage is going to be. So we're just going to put it at the high end and any extra will literally just go towards paying off debt. Okay.

[Kyle]

Okay, that'll work.

[Caleb Hammer]

Right now, minimum payments as as much as your mortgage. Well done. $1,269.28. Then of course we normal. We know our mortgage is 1418. What about utilities, guys?

[Kyle]

On average, electricity is around 250 and then water and trash is about 80 bucks. Wi Fi is 110 and gas is only like 30.

[Katie]

40. Yeah, I would say 40 on the high end sometimes.

[Caleb Hammer]

Okay, vroom. Drive, Drive. You guys combined gas, gas, me zero.

[Kyle]

I have a service truck now. I don't ever really drive.

[Caleb Hammer]

Can we sell your truck then?

[Kyle]

Well, that's what she drives.

[Katie]

That is what I drive now.

[Caleb Hammer]

You drive his truck?

[Katie]

No.

[Caleb Hammer]

Oh, wait.

[Kyle]

Well, she had a car.

[Katie]

I did have a Dodge Journey and that's what I was using. So the truck was sitting.

[Caleb Hammer]

Where is the Journey?

[Katie]

It's with my brother now.

[Kyle]

Yes, with her. Deadpan.

[Caleb Hammer]

Do you own it?

[Kyle]

No, no, no.

[Katie]

My brother, my or my father got it for me under his name so we could get a better interest rate.

[Caleb Hammer]

Like. Okay. How much in gas money?

[Katie]

I only spend probably 45 every two weeks. I don't drive.

[Caleb Hammer]

So you never.

[Katie]

Okay, I don't.

[Caleb Hammer]

I'm saying 100 bucks. Car insurances. 150 each, right?

[Kyle]

140. 150. So 290.

[Caleb Hammer]

What's the gym that can't be canceled.

[Kyle]

On a monthly basis anytime Fitness.

[Caleb Hammer]

Yeah.

[Kyle]

Each.

[Caleb Hammer]

How much every two weeks? How much? 35 every two weeks?

[Kyle]

Yes.

[Caleb Hammer]

Okay, so 70. Go ahead and use it. Use it while you have to. Where is the gym part? Okay, medical, health care, anything on a monthly basis. I'm sure you're going in for checkups here and there pretty soon.

[Kyle]

Nothing right now.

[Katie]

Soon. Yeah, I will.

[Kyle]

My insurance won't kick in until January 1st.

[Caleb Hammer]

You're still insurance list?

[Kyle]

Yes, until I got screwed over and miss the enrollment date.

[Katie]

Enrollment just came in.

[Kyle]

So. Okay.

[Caleb Hammer]

Medical, health care on a monthly basis. Any medications, Anything?

[Kyle]

No.

[Katie]

No.

[Caleb Hammer]

Okay, I'm gonna. Once you get that insurance and then you're gonna start going things there's gonna be co pays and you know all that stuff. But you budget that in, you figure that out. Hopefully it's offset by the mortgage going down. 150 bucks for the TP fund. This is your makeup. This is anything you need. There's a toilet paper. All that stuff, you budget it out. Some goes towards some on one month, some goes to the other on the next month. You figure it out. Gonna do about 750 bucks for food. Should be fine. Little one's not eating too much, but you can figure that out. You're gonna meal prep. This is what I'm most concerned about. The fact that you don't cook a single meal. Like, you guys are gonna have to meal prep every meal that you guys do a couple times a week. That's how you guys make it through. And you can follow our meal prep plan using Texas grocery stores too, and in the budgeting class and tweak it to your needs. Obviously, the newborn is going to be using titty. So it's like, that's free. Phone bills.

[Kyle]

295.

[Caleb Hammer]

I'm gonna kill myself. Why.

[Kyle]

Her watch and phone.

[Caleb Hammer]

Your watch. What about your watch?

[Katie]

It's financed.

[Kyle]

Yes.

[Caleb Hammer]

Phone 295.

[Kyle]

295Amonth? Yes.

[Caleb Hammer]

Sick. I usually recommend helium, but for rural, I. I'm not as educated as I should be, but I do like helium. For those that live in a more urban environment. T mobile towers. But 290. Pay it off and find a better service. Okay.

[Kyle]

Cheaper, I think cricket around the rural areas.

[Caleb Hammer]

There you go. There you go. Anything else that needs to be in your budget? That I don't have subscriptions. Okay, let's see if I can put in the $40 game. Pass. And that will be the only subscription. $40. Both of you combined. Okay. Only you cancel everything else. Okay, deal.

[Kyle]

Yeah, we can do that.

[Caleb Hammer]

You get $40 total. You figure out where it goes.

[Katie]

Paramount plus, though.

[Caleb Hammer]

Paramount Plus. I've never heard anyone not want to close Paramount Plus.

[Katie]

That's all.

[Caleb Hammer]

That's what I want.

[Kyle]

The TV show.

[Katie]

That's what's on there.

[Kyle]

Oh, you got the new new TV show. Landman. Fire Country.

[Caleb Hammer]

Oh, Landman. I think I've seen clips of that. That's like based in your area.

[Kyle]

Yes, it's pretty good.

[Caleb Hammer]

So that's why you guys are watching.

[Katie]

Man.

[Caleb Hammer]

Don't you know I'm a man? Haven't you thought about how I'm a man? Oh, I'm a real man. I'm an American. That's the whole show. That's the entire clips I've seen. He's like, I'm an American oil. Whoa. America.

[Kyle]

Pretty much.

[Caleb Hammer]

That's what I think.

[Kyle]

Pretty close to that.

[Katie]

I've never watched.

[Caleb Hammer]

Well, you can choose if you want paramount for Mr. Oil Man. If you'd like. He has a good raspy voice. We all like it. But you get $40 for subscriptions for the household. We'll see if there's more in the end. But I'm just trying to add certain things. Pet insurance. We should. How much for pet food on a monthly basis?

[Kyle]

We get. What is it? The dog food's like 50 bucks for the whole month?

[Katie]

No, every two weeks.

[Caleb Hammer]

Even still, all those. All those dogs, 100 bucks a month must not be very good food. Yes, mine's like a hundred dollars. Well, I go crazy though for mine.

[Katie]

But kibble we should be putting on. On.

[Caleb Hammer]

If you can't afford to reasonably take care of pets in a healthy, good way, including pet insurance, you should not have it responsible and it harms them. Pet insurance. I do. I even put that in your guys's fun. It would be expensive with all you guys thought you guys.

[Kyle]

Cat food is.

[Caleb Hammer]

That's right.

[Katie]

Oh yeah.

[Kyle]

Cat food is only 25, 20 bucks a bag. So $40 a month.

[Katie]

And they should be on wet food. I want.

[Caleb Hammer]

Let's see if I can give you guys $200 pet insurance. We'll try to figure that out. Know that's honestly probably a little too cheap, but I'm just gonna put it in there and let's. Because you guys are gonna have to nail down the budget in detail when you guys actually do this yourself. Because that's the important part. But we're just trying to figure out if there's even a path here and what that path can look like. Anything else that needs to be in your budget that I have not taken account for. So let's move that pen insurance up to 300. So I'm going to add an extra hundred. Then I'm also gonna add a bull fund of 500 be subscriptions. Be whatever you need. Even still because you just have such a strong income. And that even upsets me more that you guys are around because you guys are gonna be able to tackle this that like crazy. Even with all the bullshit and everything combined that I've just given you. You have. $5,813 is what you need to survive again. 9,400 hits your account on a monthly basis. Guys. What a joke. What a joke. There's no reason why you should have this debt. I'm gonna be honest. This is stupid. 3586. If I ever said that much money left on a monthly basis, I would be embarrassed. I would legitimately be embarrassed. I am embarrassed for you right now because that's a joke. I'm not trying to be insulting. That's a joke. That is so much more money. I almost feel like I need to do the math again. No, I mean, that seems about right. That's a joke. Well, how much debt besides the mortgage do you have? I mean, if I just get that number, I can figure this out. I have without your mortgage. 46,413. Unless there's more debt that I don't know about. And that includes collections. And with that. And you guys are bad debt free, including those things that you really shouldn't have in a year, just a year, because you guys have a lot of extra money. Just over a year when you get a fully funded emergency fund call. Six months after that. Simply a joke. You guys live such a good life and you just. You refuse to actually manage like adults and communicate and talk. So I'm done. You know what's nice is luckily when we're done with here, I get to walk out there. We're doing a cooking stream, which is super fun. Yeah, you guys got. You guys can probably watch the vod of it, but in our. Well, I'm making my people cook off against each other in our weekly live stream in the Hammer membership, which you guys should definitely sign up for below and join us in the post show. And tens of thousands of hours of extra content. Super fun stuff. That'll be good. But you guys have to start tackling the debt. That's what you have to start dealing with. Spending in budget. 0 out of 10. I mean, you overspent debt. We have collections. 0. 10 emergency fund. There was nothing. 0 out of 10. Retirement nothing. We drained it. 0. Oh, you do have real estate, though. And it's at a good. What do you know what the house is at what it's valued at 160 and the mortgage was 130. So the equity position is not even that crazy. When'd you get it? You got it in 1919.

[Kyle]

Yeah.

[Caleb Hammer]

Did you guys not get a big Covid boom?

[Kyle]

No, no, no. We.

[Caleb Hammer]

No, when you were 19 three years ago.

[Katie]

Yeah.

[Caleb Hammer]

Oh, well, yeah. I mean, you probably had one year of okay. Real estate score. I mean, it's pretty okay. You just haven't tackled that property taxes thing and that's going to ding against the score a little and give you a 6 out of 10 there. Actually a 5 out of 10. I would want that equity position to be a bit. Ah, no, I'll be generous. Six out of ten. Fix the fence, though.

[Kyle]

Yes. That's the next thing the fence and.

[Caleb Hammer]

We do the floors that saved you. Hammer financial score 1.5 out of 10 guys, make sure to join us for the post show. We'll bring in the producers. We're going to talk about anything else that we missed. Any extra drama in life that we can't talk about on the main show. Anything that would get us demonetized. So all the good juicy stuff or all the extra juicy stuff. Join us for the post show. Enjoying Hammer Elite. If you guys want thousands of hours of extra content, including a show where you can call in and talk to us, including a show of extra financial audits and weekly live streams and a bunch of other stuff, we will see you in the post show.

[Katie]

He has an addiction.

[Caleb Hammer]

An actual addiction?

[Katie]

Yeah.

[Caleb Hammer]

How many different ladies are you subscribing to?

[Kyle]

Couldn't even tell you. Maybe a month.

[Caleb Hammer]

Crazy.

[Katie]

I didn't know.

[Caleb Hammer]

You didn't know how much hide from who?

[Katie]

Me.

[Caleb Hammer]

You're hiding the of from her.

[Katie]

I would go through his phone to.

[Caleb Hammer]

Watch the financial audit post show. Click the join button below.