Gen-Z Girl Going Into Debt To Bang Boomers | Financial Audit

Summary

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Podcast Summary: Financial Audit

Episode Title: Gen-Z Girl Going Into Debt To Bang Boomers | Financial Audit
Host: Caleb Hammer
Guest: Leah (25, Dallas, TX)
Date: September 25, 2024

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Episode Overview

In this episode, podcast host and financial advisor Caleb Hammer sits down with Leah, a 25-year-old funeral director in Dallas. The main theme centers on Leah’s financial struggles, including her high cost of living, mounting debt, family responsibilities, and her controversial relationship with a much older, currently unemployed boyfriend. Caleb dives deep into Leah’s budget, spending habits, debt, and the financial red flags in her life, providing tough love and recommendations throughout the conversation.

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Key Discussion Points & Insights

1. Leah’s Background & Income

• Job: Lead funeral director at a mid-sized, corporately owned funeral home (see [00:34]).
  • She manages dressing, hair, and makeup for the deceased ([00:41]).
• Income: Earns $21.60/hr after recent raise; minimum 40 hrs/week ([01:14]).
  • Monthly net income around $2,559 ([02:11]).

Notable Quote

• Caleb: “I want you to have the dream life… I want you to be able to retire… We don’t have that life if we’re just getting everything we want at any time.” ([35:15]).

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2. Housing, Rent, & Relationship Changes

• Rent: Living alone post-divorce in a one-bedroom—rent, fees, and utilities average $1,234/month ([02:46], [14:34], [55:50]), ~48% of her net income.
  • Moved in a rush after her marriage ended Dec 2023 ([03:09]).
• Living Situation: Her new boyfriend (42, previously in Indiana) moved in but doesn't contribute financially ([00:03], [07:30], [13:03]). He is unemployed due to both a planned “break” and a sudden, severe medical issue.

Context & Challenges

• Divorce: Marriage ended because of unhappiness and financial security fears ([05:43]).
• Safety Concerns & Rent Choices: Chose apartment partly for safety as a single woman ([04:07]).
• Rent Justification: High rent above Dallas median due to urgency and preferences ([05:05], [05:39]).
• Lease: Ends December 2024; Caleb encourages her to move to cheaper housing ([61:59]).

Notable Quotes

• Caleb: “Are you not seeing red flags... the fact that he’s not willing to do anything?” ([06:48], [10:57])
• Leah: “I let him handle [health insurance]… it wasn’t my responsibility.” ([09:28])

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3. Boyfriend’s Situation & Impact

• Moved in after quitting job, planned to take break ([08:10], [13:38])
• Medical Crisis: Hospitalized with a large chest mass; ongoing Social Security/disability claims ([08:35], [09:11], [09:48]).
• **Leah covers food, phones, and non-essential expenses (including cigarettes/vape) for him ([59:18], [60:01]).
• No Health Insurance: Ended up accruing massive ER and hospital bills ([09:13], [21:17]).
• Caleb’s Concern: Repeatedly flags boyfriend’s lack of contribution, vague adversity claims, and Leah’s enabling—emphasizes risk of “leeches” ([12:19], [12:42]).

Notable Quote

• Caleb: “It’s an interesting thing... Dude quit his job, moved down here, hasn’t contributed in any way, immediately has health concerns... Is that not red flags to you?” ([10:09]).

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4. Family Debt—Co-signing for Mom’s RV

• RV Loan: Leah co-signed a $70,000 RV loan for her 66-year-old mother, a disabled veteran who uses the RV as permanent residence ([23:14], [24:32]).
• Payment: Mom pays $833/mo; risk shifts to Leah if mom dies or becomes broke ([25:03]–[27:37]).
• Justification: Co-signing enabled mom to qualify prior to full disability benefit.
• Caleb’s Take: Highly critical—risk is enormous for Leah’s finances ([25:50], [27:52]).
  • Quote: “I would never ask my kid to co-sign for something. This is so risky for you.” ([30:40])
• Mom’s Finances: Mom gets VA disability, Social Security; brings in more than Leah monthly ([25:11]).

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5. Credit Card & General Debt

• Discover Card: $8,353 balance, $203 minimum payment, 26.24% interest ([17:37]).
  • Recent hospital visitation expenses charged (parking, vending, food) while boyfriend was hospitalized ([18:35]).
  • Some spending is for boyfriend’s Xbox Game Pass, medication, and non-essentials ([20:28], [21:01], [21:17]).
• Wells Fargo Card: $5,964 balance, $149 minimum, 19.4% interest ([31:28]).
  • Pattern: Makes large payments, then spends more—balances keep rising ([32:53]).
  • “I don’t know a better way... my system, because I don’t system.” ([32:53])
• CareCredit: Cleared but paid off late—incurred $30 late fee ([43:09]).
• Medical Collections: $240 sent to collections ([46:24]); Leah feels powerless to negotiate.

Notable Quotes

• Caleb: “You can’t have access to these unlimited money cards. You can’t. You’re just not responsible enough for it.” ([22:13])
• Leah: “I don’t know a better way.” ([33:03])

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6. Budgeting & Spending Habits

• System: Covers rent with debit, puts almost everything else on credit, rationalizes skipping fees yet pays excessive interest ([33:10], [34:01]).
• Spending: Large outflows at fast food, eBay, stickers, online subscriptions (even Patreon support), pets, and miscellaneous unknowns ([36:19], [37:27], [53:01]).
• Groceries & Meals: $900+ at Walmart in one month, plus additional at other grocery stores ([52:41]).
• Lacks awareness: Often can’t recall what large purchases were ([37:00]).
• “Treat Yourself” Mentality: Leah justifies non-essentials with “I just need a little treat. Sweet treats. Great. I deserve a little treat.” ([50:31])
  • Caleb: “No, you don’t deserve a little sweet treat right now. You’re not entitled to anything.” ([50:47])

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7. Financial Self-Assessment & Advice

• Self-Rating: Leah rates her finances a 5/10, “middle of the road” ([15:13], [15:30]); Caleb points out this is inaccurate given she spent almost double her monthly income ([44:51]).
• Total Debt: $14K+ in revolving debt, additional $70K potential RV liability ([23:14], [31:28]).
• Savings: Has ~$2,600 saved, mostly as one month emergency fund ([53:41]).
• Retirement: $18,000 in 401k, meaningfully ahead for her age and income ([54:45]).
• Caleb’s Judgment: “Spending — 0/10. Debt — 0/10. Emergency Fund — 2/10. Retirement — 7/10. Hammer Financial Score: 2 out of 10.” ([71:59])
• Advice:
  • Move to a cheaper apartment after lease ([61:59]).
  • Cut all non-essential spending; strict budget required ([55:00]–[56:09]).
  • Should NOT pull from 401k to pay debt; would only mask behavior ([65:54]).
  • Seek more from ex-husband to pay their joint credit debt—ask more directly and often ([68:23]).
  • Consider getting another job; she may need to work 10–15 hrs more per week ([62:36], [64:03]) unless boyfriend contributes or expenses drop.

Notable Quotes

• Caleb: “If your rent’s ever near 50% of your net, don’t. Math is math is math is math. And you’re making your life worse and harder.” ([64:09])
• Caleb: “You paying [cards] off by never spending on them again, cutting them up, sticking to a strict budget builds the behavior… If you just consolidate them… you’re likely just going to build them up again.” ([67:08])

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8. Recurring Themes & Confrontations

• Red Flags: Caleb repeatedly highlights “red flags” about both Leah’s relationship choices (boyfriend’s age, unemployment, dependency) and her financial behaviors (co-signing, undefined spending, refusal to cut back).

  • Quote: “How many red flags does it take…?” ([13:44])

• Responsibility Patterns: Leah tends to allow others’ issues (boyfriend, mom, ex-husband) to become her burdens, with little boundary.

• Lack of Financial Curiosity: Leah falls into “give up” mode when solutions aren’t immediately obvious (e.g., boyfriend’s health insurance, her collections).

  • Caleb: “There’s so much creativity out there… sometimes all it takes is literally just asking.” ([47:05])

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Timestamps for Key Segments

| Time | Topic/Quote | |----------|-----------------------------------------------------------------------------------------------------| | 00:34 | Leah’s job explained (funeral director, income per hour) | | 02:11 | Confirmation of net monthly income | | 02:46 | Breakdown of rent/utilities as a % of income | | 05:43 | Why marriage ended – “I’ll be happy when” syndrome | | 07:30 | Boyfriend moves in, not paying rent | | 09:48 | Boyfriend’s medical emergency, Social Security application | | 10:57 | “Is that not red flags to you?” – boyfriend’s lack of contribution | | 13:44 | Red flags around starting new relationship immediately post-divorce | | 14:34 | Rent breakdown; expenses above Dallas median | | 17:37 | Discover Card situation – large balance, rising debt | | 18:35 | Hospital parking, expenses for boyfriend’s health crisis | | 21:17 | Buying boyfriend’s post-hospital medications | | 23:14 | RV loan for mother, $70,000+ at 14% interest | | 31:28 | Wells Fargo Card – spending patterns | | 35:15 | Caleb’s vision for Leah’s financial future | | 43:09 | CareCredit paid off but with late fee | | 44:51 | Leah was spending almost double her income per month | | 46:24 | Leah’s own medical debt goes to collections | | 50:31 | Leah’s treat-yourself mentality | | 55:00 | Grocery overspending, inability to account for Walmart purchases | | 61:59 | Lease ending; planning to move to cheaper housing | | 62:36 | Caleb’s recommendation: consider second job to close budget gap | | 65:54 | Should Leah raid her 401k to pay debt? Caleb says no | | 68:23 | Getting ex-husband to pay off divorce-era credit card debt | | 71:59 | Caleb’s final Hammer Financial Score: 2/10 | | 72:08 | Confirmation: Relationship with boyfriend started just after divorce; more red flags |

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Memorable Moments & Quotes

1. On Her Boyfriend’s Unemployment:

   • Caleb: “It’s a little weird that a 40 year old’s not working.” ([08:23])

2. On Hospital Expenses:

   • Leah: “I am eternally frustrated with how much money I had to spend to go up there and see him. Not his fault, but just… parking… four bucks a night…” ([18:47])

3. Caleb’s Candor:

   • Caleb: “You date a large numbered individual so you have large number debts as well.” ([17:26])

4. On Co-signing for Mom:

   • Caleb: “If something happens, $70,000 on your plate at 14.29% interest. That’s an insane number.” ([25:11])

5. On Spending:

   • Caleb: “We’re like, not surviving. You’re putting $1,000 more on this than you paid and we’re getting stickers and McDonald’s and eBay purchases and tacos.” ([37:54])

6. On Leah’s Excuses:

   • Caleb: “There’s so much creativity out there… sometimes all it takes is literally just asking. But it seems like we just don’t do that.” ([47:05])

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Action Items & Recommendations from Caleb

• Move to lower rent when lease is up.
• Cut out all unnecessary spending (takeout, treats, boyfriend’s non-essentials).
• Strictly budget monthly, learn where every dollar goes.
• Don't withdraw 401k to pay consumer debt; fix habits first.
• Seek more repayment from ex-husband on joint debt.
• Encourage boyfriend to get public assistance and/or return to work when able.
• Consider second job or side hustle if expenses can’t be lowered enough.

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Closing

Leah’s story illustrates how poor boundaries, emotional spending, and a lack of financial structure can create a debt spiral, especially for young people facing complex family and relationship circumstances. Caleb provides a mix of tough love, practical advice, and blunt warnings about the need for immediate behavior changes to get back on track.

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Hammer Financial Score: 2/10
Caleb’s Final Warning: “You’re making your life worse and harder. Math is math… You need to change your behavior first; that’s what’s going to actually make a difference here.” ([67:52], [64:09])

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Transcript

[A]

To watch episodes of Financial Audit a week earlier. Check us out on YouTube.

[B]

My now boyfriend lives with me.

[A]

Okay. Why? Why isn't he contributing to rent if he's living there?

[B]

He had burnt himself out. Take a little bit of time.

[A]

Take a break.

[B]

42.

[A]

It is a little weird that a 40 year old's not working.

[B]

I kept hoping that he was going to get his stuff together, but is.

[A]

That not red flags to you? The fact that he's not willing to do anything?

[B]

No. Hi, I'm Leah. I'm 25. I live in Dallas, Texas and this is Financial Audit.

[A]

Thanks for coming down to Austin. What do you do up in Dallas for a living?

[B]

I am a lead funeral director at a modest sized funeral home owned by a larger corporation.

[A]

You're touching the bodies. What does a lead. A little bit of both.

[B]

We have kind of a unique situation where we don't do all of the scientific mortuary part of things, but I do get all of our folks dressed. I do hair and makeup folks dressed.

[A]

The. The no longer existing folks.

[B]

Yes.

[A]

Oh, yes.

[B]

So get folks dressed, do hair and makeup, get them all dolled up, caskets and ready to go.

[A]

Gotta be nice and cute for your funeral.

[B]

Yes.

[A]

Yeah. Okay. How much do you make in this right now?

[B]

I make something like 2160. I don't know. It was 21 and then what?

[A]

Your hourly, Is that what you're saying? Or 2100?

[B]

Oh, 21.6. I think it's 60 something cents was my raise this year.

[A]

You started at 21 and then you got up 60 cents for being a director. Okay, how many hours a week do you work?

[B]

Minimum 40.

[A]

Minimum 40. And is there overtime?

[B]

Technically not supposed to get overtime because corporate doesn't like overtime.

[A]

Oh, it's a big corporate. Okay, so it's not like a small operation. Okay. If I ever have a little death in my young age, can you make sure I look absolutely gorgeous in my casket?

[B]

Absolutely.

[A]

Yeah. We'll stream it on YouTube for everyone. So you got to make me look pretty.

[B]

Sure.

[A]

Thank you. Okay, well, let me see here then. So I had income, payroll. 2,559.

[B]

Does that sound about right for monthly.

[A]

Hitting within the most recent month?

[B]

Yeah.

[A]

Okay, so with that, what did you spend? What Was your number? 2. 2,559 came in. What did you spend?

[B]

No idea.

[A]

Off the top, it always stumps people, which is interesting because we've been asking it for a while. So what do you think you spent?

[B]

Well, I know there was at least about what, 14 on rent and utilities. So 14.

[A]

Your rent's 14.

[B]

My rent?

[A]

It's expensive for you.

[B]

1, 2, 3, 4. Most of the time. 1234 was like the average.

[A]

I want to say, pretty expensive for your income.

[B]

Yeah.

[A]

Wow. Working overtime. Well, why do you live in such an expensive place? That's 48% of your net.

[B]

So I was really rushed on finding somewhere and by who yourself Situation.

[A]

What?

[B]

Because I was living in a house, renting a house with my ex husband, and our lease was up in December 25.

[A]

Wow.

[B]

Yes.

[A]

Okay.

[B]

I needed somewhere to go.

[A]

Was this last year?

[B]

Yeah, very end of last year.

[A]

What was so rushing about it? Was it getting sketch or like, what was happening?

[B]

The lease was up and I couldn't afford to pay for the house alone.

[A]

Well, the lease was gonna be up regardless. You guys just. When did you guys know you were ending things?

[B]

November.

[A]

Wait, that doesn't make sense. You said it ended it in September.

[B]

December.

[A]

Oh, December. So you had a month about. Okay. People find apartments in a month. If you look like. If you look crazy. This is. I'm sure. I'm. I'm sure life was crazy through the divorce and everything, but I've found many rents for myself within a month's time. A few weeks time. You know, I thought you were talking like a week because that would be rushed, but it was like the application process is usually pretty damn quick.

[B]

And it was. But at the same time, it was the first time I. This is the first time I've lived on my own. On my own and making sure that single young woman in Dallas. There's a lot of Dallas that you don't want to live in and be single young woman.

[A]

And do you know the areas?

[B]

For the most part.

[A]

Well, there you go. Then you know to avoid them. So.

[B]

But at the same time, Dallas is expensive. I don't know what the average rent is, but in general, Dallas is expensive. And my biggest.

[A]

How many bedrooms in your place currently? One bed, one bath?

[B]

Yes. Washer, dryer. Hookups was my biggest thing.

[A]

I assume that comes in most in a. Well, depending on where you're living, the hookups. And a. In a place like Dallas, though, where it's this big urban sprawl, because I know more density is less likely.

[B]

No, they want. Or a lot of the places don't have hookups. They want you to use their laundry facilities.

[A]

Oh, in. In apartment facilities. Okay, well, okay. I was thinking more like having to leave and go to like a laundromat, because that's a lot rare today. Well, yeah. The median rent in Dallas for one bed, one bath is 1,258. So you're certainly well above that. Even if the upper echelon of 1,400, you're even above that. So I think, I mean, you're probably. You're probably pretty picky about what you're looking for. So how long were you married?

[B]

November of 21 through December of 23.

[A]

Okay, that's pretty quick. What happened?

[B]

A lot of me saying, okay, I'll be happy when, I'll be happy when, I'll be happy when.

[A]

Okay, what was the when and what?

[B]

First win was, I'll be happy when I graduate mortuary school. I'll be happy when we get engaged. I'll be happy when we get married.

[A]

Why were you not happy?

[B]

Stressed. I couldn't. I was so very stressed.

[A]

What were you stressed about?

[B]

A lot of it was finances. A lot of it is general security. I grew up not like physical safety and security, but a lot of financial. A lot of long term plan because I'm the kind of person that I need some kind of plan. I need some kind of direction. And I kept hoping that he was gonna get his stuff together. And at the time that it was the perfect opportunity for him to get his stuff together. He had everything laid out in front him and he was taking it, but leaving me behind.

[A]

All right. Okay. Was this a big dramatic ending?

[B]

Dramatic as nobody else saw it coming. But it was not like a knockout draw out brawl. It was. He had seen me pulling away.

[A]

And it's just you still, even with a month, I mean, you got an apartment that was more, well, more than the median in Dallas and obviously more than you can afford because it was 49, 48% of your net income. Are you. Is it just you there now?

[B]

Now I'm the only one who's supporting it financially.

[A]

What does that mean? Is there someone else there?

[B]

My now boyfriend lives with me.

[A]

Okay. Why isn't he contributing to rent if he's living there?

[B]

So he moved down from Indiana.

[A]

Okay.

[B]

And when he moved down, it was with the intentions of. He had burnt himself out and just take a little bit time. 42.

[A]

Okay. You know, I don't give. Listen, there's. There's a. There's a natural shock that comes with it, but it's honestly because of Twitter. They've. They've made everything sound so extreme. You're an adult. I don't give a. This is. I must be Twitter brained, like, where I have to have a reaction to everything. About everyone's adult choices, whatever. Okay? You live your life.

[B]

I don't give a f. But he moved down here. He. With the intention of he was gonna take a little bit of break before figuring out, you know, what he was gonna do down here.

[A]

It was a little weird that a 40 year old's not working, but it was.

[B]

We knew that was gonna happen. We knew that was gonna happen.

[A]

Okay, how long has he been here?

[B]

End of April.

[A]

Okay, how long did we agree he would not be working?

[B]

There was not necessarily like an agreement, but there is the factor that. Beginning of July, I ended up having to take him to the emergency room because what we thought was like really bad flu, maybe pneumonia at the worst, turned out to be a mass in his chest. So emergency room was like, okay, cool, we can't do anything for you right now. Go see a doctor. We tried to get in to see a doctor and then at the very end of July, he ended up in ICU for the.

[A]

Or.

[B]

Excuse me. Very soon.

[A]

Did he have health insurance?

[B]

No.

[A]

Why?

[B]

Because his previous job didn't offer health insurance.

[A]

Doesn't matter if he got laid off or something. Did he quit?

[B]

He. He quit to move down here.

[A]

He probably could have got on the health care exchanges like zero bucks a month.

[B]

It's not something I have any knowledge about.

[A]

It wasn't worth googling. How do I get health insurance? I have none. Help me, I die.

[B]

I think I thought of it more.

[A]

As well him like, this is not your responsibility.

[B]

That was kind of my thought process was it's not my responsibility. I let him handle.

[A]

So how's he doing today?

[B]

He's doing better. So he ended up in the hospital for the entirety of July, basically. And currently we're still waiting on results. So right now he's in the process of applying for Social Security.

[A]

Did you meet him online? What?

[B]

Just a website.

[A]

What?

[B]

I'd prefer not to answer.

[A]

Oh, come on. No, fine. You don't have to. But very curious. So like sugar daddy, sugar baby site. Okay. Just because you know the gaps a bit big again, like I. I don't give you live your life. But it's. It's. It's an interesting thing that. So I wouldn't. It wouldn't draw as many red flags if you guys met and you just started dating and it went about there but met online at a website. Dude quit his job, moved down here, hasn't contributed in any way whatsoever. Immediately has health concerns.

[B]

I know it sounds.

[A]

Are you into old dead men because you see them work every day no.

[B]

The joke has been made many a time, I'm sure. No, it was all happenstance.

[A]

But is that not red flags to you? The fact that he's not willing to do anything? What was his job?

[B]

He was working at a restaurant and.

[A]

He was burnt out from a restaurant. It's not like that. Food service is a pain in the. I get it. But it's less that mental strain still. It's more. It's more physical beat down. And there is a lot of mental stain that comes with it, especially in certain positions. So don't get me wrong, a lot.

[B]

Of it was that plus the struggle of everything.

[A]

What was the struggle of everything? Lots of vague things being thrown around.

[B]

He has had a lot of adversity that he's had to deal with.

[A]

Again, lots of very vague things, but.

[B]

So when he moved to Indiana, he moved from Alaska. When he moved from Alaska, he didn't have a car and that was fine for a while. And then Covid hit. His license expired.

[A]

And first of all, who moves to Indiana if they're moving somewhere?

[B]

A friend had a place that he was. That was willing to host him.

[A]

No, I just like this Indiana because I lived an hour from there.

[B]

That's okay. His friends still live in Indiana and we definitely still talk a lot of about Indiana.

[A]

As you should.

[B]

But he was fine, Doing fine without a car. But just what he was making, what he was being offered, hours at work and his expenses.

[A]

But why couldn't he work down here, even part time? This is. Right now, I'm just thinking about you. And when I see someone with red flags surrounding them potentially leeching, it's just like, I'm not. We can't get there conclusively, but it does make me a bit nervous for you. And I don't want you to be in a position that's.

[B]

And if it weren't for the fact that he's. The only thing stopping him from looking for work right now is the medical stuff and the fact that he's currently in the application process for Social Security and disability.

[A]

Because of the medical stuff.

[B]

Because of the medical stuff.

[A]

Is he not. Is he able to move right now?

[B]

Kind of.

[A]

Kind of.

[B]

Okay, so he's very short of breath still. I mean, he's still healing from having three giant tubes coming out of his chest.

[A]

No, sure, sure, that makes sense. I mean, but again, he came down here, it didn't work. I'd get it if something medical like this happened and then he can't work. That's different.

[B]

And it wasn't when he got down here, it wasn't that he couldn't work. We had the agreement that he was going to stay home for a while.

[A]

No, I get that, I get that.

[B]

Yeah.

[A]

It's not like he came down and refused to work, but it's like he came down with the intention of not working. Okay, okay. How long were you guys talking before he moved down?

[B]

December. So I went up to visit him for the first time in red flags.

[A]

Is keep popping up. Dude, I'm sorry, Sorry. That's not to be insulting to you, like legitimately there are concerns.

[B]

Okay, I know. I've, I've heard it all, trust me, I'm sure. Because there was definitely a big to do when I went up to visit him for the first time and there was a lot of pushback from my family in regards to me driving up to Indiana to meet a stranger.

[A]

But he is confirmed single, right?

[B]

Yes.

[A]

Okay, well, we should obviously get into the finances a bit, but this is certainly, obviously dramatically, dramatically affecting it because medical, you take care of food, you take care of everything. You're taking care of rent, but you're even just the, the roof or the head is 48% of your net. So. Wow.

[B]

And going into that rent, the base rent, like when you look up, what's the rent for this apartment is 1,050. It's the utilities, it's the.

[A]

You may have gone to top floor, bottom floor, middle. Well, which one's the most expensive? I forgot either. Top, bottom, bottom. Is it?

[B]

Yeah, because that was the other option that they gave me.

[A]

So it's just like fees and bullshit.

[B]

Because I've got like valet trash that.

[A]

Yeah, yeah, yeah.

[B]

And then like one of my dogs on pet rent, the other dogs not. Doesn't have to do pet rent.

[A]

Okay, well, self assessed. Where do you think your finances are? 0 to 10, 0 being the absolute worst, 10 being the absolute best.

[B]

I definitely don't think they're the worst because I could be, you know, saddled with like student loans and things like that. It could be a lot worse. But I know, especially with the way I feel about my finances, that it's not great.

[A]

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[B]

Debts were there before he got here unfortunately.

[A]

Why did okay, well then the discovery Let me go. Let me say what the dad is and then I want to hear what the behind it.

[B]

Gladly.

[A]

Discover it since your first credit card. It's a lot of people's first credit card. Okay, discover it at $8353.29 with a minimum payment of 203, which is insane for your situation. To be clear. Insane for your situation. Why are you purchasing on it? Well, probably because half your money goes to rent, so you need to spend. I don't know how you're living actually to be clear. Oh, and you give yourself a five. Great. $182 interest is accruing. You made the minimum payment, but it doesn't matter. You win a purchase $510.02. So whatever progress we were Making if any, which we barely were with the interest and everything. Cuz the interest is only $3 less than your payment. Medical City. That was Medical City. Medical City. Medical City. Four Medical Cities dollar four vending machines.

[B]

Parking.

[A]

What are you doing? Oh, oh. It was four days in a row while he was in the hospital.

[B]

That was. That's just on that card. I was there every day.

[A]

Is this while he was in the hospital? Okay.

[B]

I am eternally frustrated with how much money I had to spend to go up there and see him. Not his fault, but just the fact that the medical System is charging $4 a night for families that are there visiting their loved ones.

[A]

Yeah, I get that.

[B]

And just a side note, they also charge their employees. I don't know if it's the same amount, but charge their employees to park to go to work. Oh.

[A]

Are we sure that the hospital. One, is it a public hospital? Two, is the parking lot owned by the city? Because again, it gets really complicated when it comes to city stuff because parking takes up so much space that can be utilized to other things that free parking everywhere would be essentially subsidized by the taxpayers and not utilizing it for profit making motives. Because all the parking that's used in cities could be profit and tax generating things like restaurants and things. So charging money for parking, as much as we all hate it, it being free would essentially be subsidized parking being paid for on behalf of taxpayers of the individuals who are using car storage in public spaces essentially. But at a hospital. I definitely get it. I definitely get it's. Luckily it's only four bucks. Four bucks for a night isn't horrendous. No, but it is annoying. I get it. Especially in a life or death situation. That's where we obviously wouldn't want it. It's a. I would think more that it would be waved. Validated. I'm surprised it's not validated. Okay. That sucks. That sucks. Microsoft Store. 18 bucks.

[B]

That would be for his Xbox. The Xbox.

[A]

Why is it on a credit card that we can't pay off that's only accruing interest?

[B]

Because otherwise it would be going on the debit card, which.

[A]

Or otherwise don't get it. What are you talking about? We don't have to get it if we can't afford to live. You can't afford to live. What do you mean? What Xbox? The subscription is Game pass. Yes, Game pass. He can't afford to live. Buddy refused to work for months while he is down here. Sonic Drive in. Doordash Chubby Or Doordash and whatever that is.

[B]

The restaurant.

[A]

No, I. Yeah, I assume from Doordash. Okay. Another Microsoft Xbox bill. $8 and 16 cents. Oh, we don't even know, but it's going on our card and it's just continuing to go up. CVS Pharmacy, 206 bucks. What happened there?

[B]

That one would be after he got out of the hospital. That would be his medications that he got put on post hospital.

[A]

We need to get him on some kind of health insurance. Like now you can't be turned away for pre existing medical conditions at this point. So he should get on. You need to go to just the exchanges. And he. Since he's not married or anything. And then. Dude, I really think he could be on something where it's like zero bucks a month. It'll affect his tax base.

[B]

They're trying to get him on Medicare to help erase the ridiculous amount of medical bills that occurred from the month in the hospital. They've already.

[A]

He was in for a whole month. Wow. Wow.

[B]

And they've already. One of his ER visits. They've taken care of with their. I don't know what to call it, but they're. I can't think of what it's called.

[A]

Okay, that's okay. But I don't like the Sonic and the Doordash and the Microsoft Store and then the other Xbox. So there's two Xbox things because we're sitting at a 26.24% interest rate. So it's just like what's even the point. At that point, you know, you're not a credit card person. You're you. You're not able to utilize credit cards. Anytime you have access to money, you just spend it. This is clear. You can't manage this. It's only going up if you ever get a credit card. It needs to be a charge card like Fizz card, Moneywear cards, where it forces you to pay it back by the end of the month. Or you could only spend the balance that you put on it by putting money in. Like you cannot have access to these unlimited money cards. You can't. You're just not responsible enough for it. And that's okay. But if we recognize that you can protect yourself. Okay, this is a huge one. The interest rate is lower, but it's still a death. 14.29%. This is medical. No, this wouldn't be.

[B]

This is entirely. This is my name only.

[A]

What is it though?

[B]

This, if I'm not mistaken, is the rv. Is it not rv?

[A]

What the. Do you have an RV for.

[B]

I have an RV in name only. It is my mother's permanent residence.

[A]

Oh.

[B]

She puts all. She takes care of the payment.

[A]

Yeah, but what happens if she doesn't? It's on you.

[B]

The only way she doesn't is if she kicks the bucket.

[A]

Yes. Finances are mine, which I don't root for, but obviously it's something that happens.

[B]

No, and we've discussed that the moment.

[A]

And also, what if she loses all her money somehow?

[B]

Then if something like that were to happen, then I've got a whole lot of other issues under my belt.

[A]

Of. Well, what?

[B]

I'm her. I'm her person. I'm her only person.

[A]

Oh, okay. So your dad's not in the picture?

[B]

Not when it comes to my mom.

[A]

Yeah, sure. And you're the only kid. Her only kid. She shouldn't have to rely on you, though. She hasn't made the sacrifices throughout life necessary to be able to be independent.

[B]

She definitely has. It's. So, like I said, this isn't.

[A]

You mean if things go to. She have to rely on that?

[B]

This is only because she makes her pay.

[A]

She have enough to retire? How old is she?

[B]

She just turned 66.

[A]

Okay, what's her retirement situation?

[B]

She is 100%. Or. No, no, no, no, not 100%. She's a disabled veteran, so she's currently living off of her disability. Social Security, VA Disability. That's her income?

[A]

Yeah. All that added together could be pretty chunky, depending on. Is she 100% disabled?

[B]

Very close. If not a hundred. I know she was fighting for a hundred.

[A]

Why does she live in an rv?

[B]

Choice.

[A]

Okay, sure.

[B]

No, last I checked, when she was doing her rundown of all that she made, she was bringing in more a month than I am.

[A]

Yeah. Yeah. I mean, you stack all those up. Absolutely. Okay, so what makes me nervous is I'm glad she's paying for it, because it's disgusting, but if something happens. $70,000 on your plate at 14.29% interest. That's an insane number. Insane number for your financial situation especially. Can we do anything for her to borrow this money or refinance the loan and get you off? So, like, why have the risk there?

[B]

The biggest. The, like.

[A]

What's her credit score? Do you know? What's her debt situation? Do you know?

[B]

I think this is her biggest debt as far as anything in her name. I think she has a couple of credit cards that aren't, you know, massive, but I think the biggest reason for $833 a month. Mm.

[A]

Oh, my God. That's insanity. That is slit every wrist ever known to man. That's a crazy number. Sorry, I continue but that's crazy.

[B]

I mean it's. That's her rent basically on a depreciating.

[A]

Asset though this is going down in value.

[B]

I mean it's better than an apartment.

[A]

Depending apartments they'll take care of broken.

[B]

Things and her insurance takes care of the broken things on the rv.

[A]

Every little broken thing pretty much.

[B]

So far.

[A]

So far. And guess what? Rent is usually at a 14% interest rate. True.

[B]

But I think the big or kicked.

[A]

Off to your daughter if something happens.

[B]

Debatable.

[A]

Not that depends if you're on the rent.

[B]

But right now the biggest, as far as I'm aware from what she told me the biggest reason for having my name on there was because if anything happened to her it would be non contestable that I am then able to take charge and do whatever I need to do.

[A]

With the RV is something where she got like very disabled, like super like if she died. Why the do you guys care about the RV if she dies? Just let it go.

[B]

Well that's the thing is with this.

[A]

Kind of debt, why would you want it?

[B]

Well no, I would let it go, but that way I have because I have no intentions of if something were to happen to her, I have no intentions of keeping the rv.

[A]

But your version of letting it go, since it's under your name, it's going to be. You're going to be responsible for it. You're letting it go is having to get rid of it used and it's likely under value underwater meaning that you're still going to have to come up with an additional like 10, 20,000.

[B]

I don't think I follow.

[A]

Because you're co signed if something were to happen, she dies and it gets put on you, you're essentially since you're on it, you're forced to pay it or else it gets repoed and then you're owed the rest. Or it just. Or it completely obliterates your credit because you just don't pay anything ever. And then the third option, the get rid of it option, this is likely worth less than the loan because she's putting miles on it, she's putting maintenance on it and it's a depreciating asset. So you're likely going to have to come up with an extra 10 to $20,000 to pay off the loan after you sell it anyway. So this isn't, this isn't benefiting you in any way. It may have benefited her qualifying for the loan. But in terms of what you're talking about, of being able to control the situation, like, I wouldn't want any part of it now, if you're in her will and there's like, trust set up and there'd be a lot of different complications where, like, you not necessarily responsible for it, but could have the ability to take charge of it if you wanted to. You know, there's a lot of different legal complications depending on how everything's set up. But you've put yourself in the worst situation possible. And I really don't get why you would want to. Want to.

[B]

I think the initial factor was because if I'm not mistaken, this was prior to her VA disability claims getting worked out.

[A]

Whoa, whoa. When did she serve the 80s? Now, legitimately, guys, I believe that you, everyone in your life, everyone around us, can actually take control of their financial future and make their lives. Lives better. And we've spent over a year here creating tools to help make those goals a reality. Right now, our budgeting program and investing program are bundled together at a 15 discount, and you get a hundred dollars in cash gifted to you right into your AMUMU account. There's honestly no time like the present to actually take control of your future. Don't wait. Don't let this opportunity pass you. Wow. So she didn't file until four decades later.

[B]

She was working, she was doing fine. And then she got to the. She had.

[A]

You can still have some VA disability and work though, right?

[B]

I have no idea.

[A]

Maybe not the full. I'm not 100%.

[B]

It wasn't something that she was willing to fight for because when she got out, she just. She got out under not so fun circumstances. And because. And she decided she was just gonna, you know, move on, continue trying to live her life, and lived her life for, you know, 40, 50 years.

[A]

I got it.

[B]

That's fine. And then.

[A]

But either way, why did you co sign for this?

[B]

Was it just because she didn't have the income, so she asked you to.

[A]

I would never ask my kid to co sign for something. This is so risky for you. It's just. And why can't she just get an apartment?

[B]

She had an apartment and they were. Her rent was outrageous.

[A]

Well, it's just like you find better rent. It exists.

[B]

And it was always her dream to get an RV and to travel.

[A]

Was it her dream to put it on the shoulders of her kid?

[B]

No.

[A]

Okay, then maybe we don't get to live our dream. If we're doing that, then I don't Think we sacrifice our only kid for the dream. But it's you in front of me, not her. Okay, so you don't pay this?

[B]

No, I don't pay it. It's just on my credit.

[A]

Okay, Wells Fargo, Man, I see another massive balance.

[B]

So this was the first credit card.

[A]

Oh, okay. We have a balance of 5,964.63. The minimum payment of 50, I think 75, maybe 149. Oh, dramatically different than what you thought, especially in your financial situation. Your two minimum. Well, if that 8001 hit, I don't know, you wouldn't be able to survive simply. But Even still, that 203, which is why it's supposedly to be under your name. I can't believe you allowed that, but whatever. 200 or that. She wanted that $203 for your first card, and then 149 for the second card. Stacking that with your situation still is insane. Okay, let's see what happened here. Oh, you made a huge payment. $700. Oh, it didn't matter. You purchased a thousand $759 for sake. What are we doing? What's the point? You made it worse. It's accruing $88.49 in interest on that last balance. And now the balance is a thousand dollars more. Well, but good guys, it's worth it. Thank goodness. You have a Rewards balance of $5 and 17 cents. What are we doing? Why are we purchase purchasing on two cards? Two cards that we've looked at, we've made worse. What is the point?

[B]

My system, because I don't system. I don't know a better way. So what? I don't.

[A]

Better way than what?

[B]

So what I do I. With the exception of rent, because I don't want to get paid the extra fees for putting rent on a credit card.

[A]

Yeah.

[B]

So when rent comes, when it's time for rent, it's whatever paycheck is right before rent, I go in, pay rent, make sure rent's taken care of. Because.

[A]

It'S interesting the way you look at fees because you're putting your other expenses on the cards. Right. That's what I'm walking away from. So you're not getting the upfront fees for them, but you're getting a in the interest fees. You're getting a 19.4% fee on here, which is way more than any kind of rent fee you would have got anyway. So the way you're looking at it, it's still incorrect. You're just. You don't want that Upfront fee. Sorry, go ahead.

[B]

But. So I pay rent, make sure rent's taken care of, make sure that there's money in my debit account for any type of subscriptions or auto pays that are set up on my debit account. And then I take a look at.

[A]

What did you spend on that Buc ee's on the way here?

[B]

25 bucks in gas and.

[A]

Gas. Okay.

[B]

Sorry. Less than $2 on my drink.

[A]

Okay. Can't afford it.

[B]

I had to pee.

[A]

You had to pee?

[B]

Yes, So I had to go in. So go pee right now. Pretty sure the price of large fountain drink from gas station is equal to that of cans of soda that I could have brought from home. As far as costs.

[A]

Oh, you know what? That's interesting. It's interesting. Don't drink soda water bottles of water for like $5, a massive pack and do that. Congratulations. 48%. Go. So rent. You're putting more money on your credit cards and you're doing everything outside of your rent on credit cards. As you were trying to explain. I don't think we're getting fountain drinks. I don't think we're getting cans. I don't think we're getting any of that. I'm sorry. I want you to have what you want, but we don't live in dream world. I would rather you have an emergency fund and ability to retire so you don't rely on your kid like your mom relies on you. I want you to have the dream life. I want you to be able to retire. I want you to have an amazing life. Fully funded emergency fund to take care of expenses if something medical happens again. I want you to have that life. We don't have that life without if we're just getting everything we want at any time. Go on.

[B]

So I pay rent and then I look at what I have left and I see what can I put towards credit cards. And then I try to put as much as humanly possible on credit cards, but then unfortunately that leaves a minimum in my debit account. And then I end up putting all my spending on the same credit cards.

[A]

How much was that?

[B]

Less than $2.

[A]

How many liters are in that? Let me see. Okay, it's definitely not two liters. Probably a liter. You can get two liters at the grocery store at HEB for a dollar and 52 cents. The off brand HB version. There you go. I just saved you half your money every single time. Continue. Was there any more continuing? Maybe.

[B]

I don't think so.

[A]

Okay, well, let's see. What you did here. Because this is an insane amount of spending. Okay? There's a thousand medical cities through here. We now know what they are. They're parking justified. I totally support that. Obviously we both wish there was a way for that to be. I keep forgetting the term, but reimbursed. Or waved. But ebay. We're sending 22.35. McDonald's. EBay. Another 23.75 there. Oh, sorry. No. $33.12. Taco Bueno. Netflix. McDonald's. Taco Bueno. Craftsman. 127. What was that? Does he have access to your card?

[B]

No.

[A]

What are you getting in Craftsman? It's not like the boat. Craftsman.

[B]

No.

[A]

127.74. First of all, that's like one of the most. That's the second most expensive thing on this card. Third most. How do you know what it is? Fourth most. $127. You basically need to budget every single penny in order to barely make it. And you don't know where127 went in one charge. Okay. Amazon. You spent 28 bucks. Puff Paradise. What's that? Please tell me it's cream puffs.

[B]

Not for me.

[A]

For him. So the one that's dying with something right here. Is inhaling probably not the best habit?

[B]

No.

[A]

In his current situation, not. And you purchase it for him. I. Okay. Man. It's hard. It's hard. Gosh. Am. McDonald's. Amazon. Amazon. Amazon. Dumb bats. Dumb bats.

[B]

Stickers. Art stickers.

[A]

Buddy. We're, like, not surviving. You're putting $1,000 more on this than you paid, and we're getting stickers and McDonald's and eBay purchases. And tacos.

[B]

I will say. Will you food hurts my soul a little bit because.

[A]

Hurts your calories too.

[B]

Yes, it does. But that was all while he was in the hospital. Because I was commuting back and forth between work and home with dogs and hospital, and I was doing it.

[A]

I get it. It's a hard situation. I know.

[B]

So that's it. It hurts my heart to have to. Because I.

[A]

So he was in for a month. And we're waiting on diagnosis for. For. For the lump, the ball or whatever.

[B]

So the mass. They took multiple biopsies. All the biopsies came out negative. But it caused a buildup of fluid around his heart, so they had to go in and put in.

[A]

Was it like a cyst?

[B]

No, it was. They. All of the doctors are convinced it's cancer, but there's no biopsy, medical testing, proof.

[A]

Did he know he had this before he Moved down. So it wasn't protruding? No, it was internal. What? Send him to the hospital because.

[B]

So he had this cough that we. Again, at first we thought it was lingering pneumonia or flu or something like that. He had this cough and what finally sent him to the ER where they finally admitted him was he was coughing to the point where he was throwing up. He had 100 something fever.

[A]

Oh, man.

[B]

He was weak. Couldn't.

[A]

Yeah, so that sucks. I'm sorry. That's horrible. And I hope he's doing well and I hope everything comes back in a, you know, negative. And it's gone.

[B]

They removed as much as they could.

[A]

Okay.

[B]

But it's attached to his abdominal aorta which is the big part of the heart that pumps the blood down into the rest.

[A]

Okay. So mostly we're just hoping it's non cancerous. Okay. What does the future hold for your business? Ask nine experts, you'll get 10 different answers. Bull market, bear market. Rising rates, inflation going down or up, it's hard to predict. But here's something that's certain. Over 38,000 businesses have future proof themselves with NetSuite by Oracle, the world's number one cloud ERP. NetSuite combines accounting, financial management, inventory, HR and more into one powerful, easy to use platform. No more juggling systems with one unified suite. You got a single source of truth giving you the visibility and control you need to make fast, informed decisions. My favorite part about netsuite is the real time insights and forecasting that lets you see what's coming, empowering you to make more informed decisions. So say goodbye to wasting time on what NetSuite does better. When you're a business owner, every minute matters. So if you want to take control of your business's Future, download the CFO's Guide to AI and Machine Learning for free at netsuite.com/ that's netsuite.com hammer and thanks to NetSuite for sponsoring today's video. Let's get back into the episode and how long has he been home?

[B]

July. Excuse me? Yeah, July 22nd.

[A]

Okay. It's been a month. Yeah. Totally okay with him not working during that. Totally okay with him not working after that. Again, it's still weird that it came down to not work. I know you guys agreed on it. That's still weird. But obviously the situation has changed regardless, so that doesn't matter. Just want to make sure you're in a good position. But again, the situation's changed regardless, so it's a whole new world.

[B]

And he's aware that when the opportunity comes for him to get a job, that that is expected. Apparently I've brought it up more than I realized. I brought it up, but really? Yeah.

[A]

What's his recovery timeline?

[B]

We don't know.

[A]

Doctor didn't have a timeline.

[B]

No. We didn't even get sent home with any kind of recovery instructions. They just.

[A]

How do you guys pay everything? Yeah. How much is owed right now to him? Not to you, though.

[B]

I have no earthly idea.

[A]

But it's not to you at all.

[B]

No, Nothing would be nothing to me.

[A]

You guys aren't connected.

[B]

No.

[A]

Okay. And you just don't know.

[B]

I've chosen not to add it up.

[A]

You say you'll never join the Navy.

[B]

That living on a submarine would be too hard. You'd never power a whole ship with nuclear energy, never bring a patient back to life or play the national anthem.

[A]

For a sold out crowd.

[B]

Joining the Navy sounds crazy. Saying never actually is. Start your [e-mail] America's Navy, forged by the sea. Because the number is going to hurt my heart.

[A]

Well, large medical bills will go to collections.

[B]

I have a tidbit about that later.

[A]

Oh, fun. Yeah, can't wait. Care credit. Let's talk about that first. This is interesting because you paid it off, but you must have paid it off late because you had a late fee. Oh, did you not even know? This is wild, because I would love to celebrate that you paid it off, put you out a late fee. Now you have a new balance of 30 bucks because you didn't pay it off in time. You made the. You, you did the right thing late.

[B]

So I am just now realizing that that's what that $30 is, is a late fee because how did you not know? I am anal retentive about paying my bills on time. Growing up, my parents worked really, really, really hard. And unfortunately, that wasn't always enough. And that led to a lot of accounts getting past due. And so growing up, I would get home from school and the Internet wouldn't be working. And I'd do all the little, you know, turn it off, turn it back on again, do whatever you can to get the Internet to work. And it would end up in me texting my mom and being like, hey, did you pay the WI Fi bill? And she hadn't at the time had enough to cover it. So I'd go on, pay it so I can get online and do my homework. And that stayed with me. So I'm paranoid about making sure my bills are paid on time.

[A]

Okay, but I mean, again. But you Missed it.

[B]

So I have no idea.

[A]

Sorry.

[B]

No, I know. I want to say also you're over.

[A]

You didn't answer. How much do you think you spent last month total? Yeah, this includes on debt so I.

[B]

Would say total spending reminder.

[A]

2,559 came in probably 26. Okay. Yeah, 4,526. So whatever learning lesson you thought you had from your parents, I don't know if you learned it. You. You're spending almost double. You're putting yourself in that situation. You're self fulfilling prophecy back right into where they were.

[B]

I don't think I had any idea how bad it was.

[A]

You need to go through our budgeting program. Please go through our budgeting program. We give it to you for free. Go through the class, go through the quiz, use the meal plan. Go through that, go through the investing class as well. Learn your investing profiles. Take advantage of the free hundred hours that comes with it. You guys can get them by the way right now they're 15% off when bundled together. Check it out. But please go through that. Yeah, I need you to be able to budget. The fact that you, you, you thought you may have spent a little over but it was actually double almost that terrifies me. Speaking of things we can give you. I can give you if he wants like a course career certification to get back into the job market, I'm happy to give that to him. You know so you know, just feel free to talk about that. But yeah, again we were. We were late on here boy. Your score is 655. We don't know our mom's credit score. Because I really want you to get off of that loan.

[B]

Fairly certain it's about the same from last time we chit chatted. I want to say it's pretty close.

[A]

Yeah, it'd be complicated with something like an rv. I wonder what she'd be able to qualify for. Okay. Is that all your debt? You said there was something medical related.

[B]

I just got in the mail a. I know a lovely little collections notice for medical debt for myself from my old doctor's office. It's a. I wanted to take a picture of how much like 200 and something.

[A]

So it might be internal collections. May not have been sold off it. What is it you have the medical debt has to be some multi of hundreds to be on credit reports. Now I don't remember the exact number off the top of my head. I apologize. We can look it up.

[B]

Makes me feel better though.

[A]

That may be 200. I don't know but so you're 200.

[B]

200. Something like 240 maybe.

[A]

Why did you not pay this?

[B]

Because at the time I couldn't.

[A]

You could get on a payment plan, though. Even something like 20 bucks a month, you may have been able to do. Sure, that would stretch it out longer than we'd hope, but you could have done something. There's. It seems like you both, you and him both kind of have a mindset when it comes to him getting health insurance, getting a job. When it comes to you taking care of a death like this, you see it and you think there's no immediate solution. So you give up. We don't look. And there's so much creativity out there in terms of what we can do. Sometimes all it takes is literally just asking. But it seems like we just don't do that, which is, I need you to get out of whatever. Whatever that mindset is. I need us to move beyond that and be willing to ask questions, ask help, be able to be willing to Google things, but for the rest of our life. Because, I don't know, seven years into adulthood and we receive a bill and we're like, oh, we just can't pay it. And that's it. That's. You're not going to end up somewhere good in the end if that is where our mind is.

[B]

I can't disagree with you on that.

[A]

Please don't.

[B]

And I'm hoping that with the. At least with the collection to notice that maybe there's still a possibility to pay it out.

[A]

Okay, so that's it then.

[B]

That's all your debts, as far as I'm aware.

[A]

Oh, boy. Well, I hope nothing shows up.

[B]

No.

[A]

600 bucks in the checking account. 680 up from the 470 that we started with. You can't afford to live and you're giving someone money on Patreon? In what world? We have a membership. They get everyone who subscribes because you get the Post show and a bunch of other shows and a lot of other things. It's really cool. It's really fun. If you can't afford to live, don't subscribe. Who are you even supporting?

[B]

It's an audio creator.

[A]

Stop. Support your finances. Okay. Raising Canes, Amazon Music, Waffle House, Smoke and Vape. Also for him, or do you participate in lung cancer as well?

[B]

No.

[A]

Okay. Amazon, Kindle. Go to the library. Trust me, I pay a lot of property taxes for it.

[B]

I do. I utilize the library as well.

[A]

Wonderful. Cancel the Kindle Domino's. Definitely can't be doing that. And Amazon Digital. I don't know. I mean your video ask quote that you sent in when you applied us on. I try to stay or I try to stay and be incredibly frugal and drone in general. I'm not big on spending on things for myself. Every once in a while I will get wild hair. I will get a wild hair and decide that, okay, I just need a little treat. Little treat? Sweet treats. Great. I deserve a little treat. Okay, I've been working my ass off. I'm gonna get myself a little something. Listen, I actually, I vibe with that. I get that. I want you to. Again, you get that after you have an emergency fund because you putting off any kind of financial independence, financial security, that lands you in a worse position in the end anyway. So no, you don't deserve a little sweet treat right now. First of all, you're not entitled to anything. Second of all, reward yourself with that. Fitting it in a budget when you have an emergency fund and you don't have 30% interest, death benefit, that, like, why hold that over your head? Why make it harder for you later on? Doesn't make sense. Deserve it. You don't deserve to suffer either, but you're bringing it upon yourself by not sacrificing at all. And also frugal. I very much don't think you know what the word frugal is.

[B]

I think the month that we're looking at is a very difficult one because of how much spending did go towards things that I usually don't spend on.

[A]

Yeah, but the parking was so cheap.

[B]

Not parking, but the, the food. I.

[A]

Okay, you could have packed sandwiches. Listen, I'm giving you a little bit of. I'm giving you a little bit of leniency because the hospital thing, and I do get that, but even still, it was a lot of eating out and you spent double what you made and you put a thousand dollars more on that one credit card and a few hundred bucks more on the other credit card. It's. Yeah, you're making your situation just worse. And hard times, they can lead to wanting to cope, spend and have easier moments. But again, that hard time is literally just making you have more hard times. It's not worth it. It's really not. Especially since those times have passed now you're not. He's not in the hospital anymore. You're not doing that. But now you're paying the repercussions for it, so you don't even get the joy of it anymore.

[B]

You're not wrong. Well, of course not, but it's I think it's, it's, it's short sightedness.

[A]

I mean your spending categories go as followed. I mean transportation was $623,150 went to groceries,191 went out to eat. Unknown spending, typically Amazon and Walmart and Target. That was a thousand. $253. That may have been CVS. One second, let me see. Yes, CVS was 206 of that. But even still there's a thousand hours left over. That's Sam's. Walmart was 900. What the for 900 are you getting from Walmart? That can't just be groceries. If so that's insane. You need a budget and meal Prep and what? 900 at Walmart? What?

[B]

The only thing I can think of is gross.

[A]

Oh, you don't even know.

[B]

Well, I'm trying to think if there was anything.

[A]

900 of groceries plus an additional 150 at grocery stores and 102 at Walmart. Medical, health care. 160. That makes sense. 181 went to savings. It's weird, but okay, 0.8% of your spending went to subscriptions. 292 into miscellaneous.

[B]

So I know there's a dog food.

[A]

Subscription, vaping ebay, Craftsman, online art purchase, Microsoft Store and Xbox.

[B]

Okay.

[A]

Yeah, you had a pet screening for 31 bucks as well. Okay, okay, so what is this? I'm sorry, so 600 bucks in your savings?

[B]

Yes.

[A]

Okay. Albert Corporation.

[B]

That is a. Oh, it's a savings account.

[A]

Auto save.

[B]

Yes.

[A]

So you're at 2,397. That's great. It makes me feel 600.

[B]

I.

[A]

You have about 2,600.

[B]

Because in some ways I feel silly having that savings when I do have debt.

[A]

Yeah, but like I want you to have enough to either cover your highest deductible or to have a one month emergency fund. So we're going to determine what that is and then the rest goes to debt. Is it a Korean interest in there?

[B]

Yes. I don't know how much.

[A]

I, I mean you're getting 35 cents. So really not much. I don't know. It's weird when there's like a traditional hired savings account. Like so far you get 4.6 or you could even put it in Moomoo where you get like over 8% right now of just leaving your money in there.

[B]

The biggest factor for the Albert with me, that was why I went there, was that they do. It's not a set amount of savings. They look at what you have in your account and withdraw based on that. So that way they're not. It's not like, okay, well if you.

[A]

Budget you can manually withdraw. That's not a big issue. Plus it's exciting to throw money towards savings. 18, 000 in retirement.

[B]

I've got something.

[A]

No. At 25, I'm actually quite happy. It's a good start. It's a good foundation. There is a positive here at that. Okay.

[B]

It's waiting for us to get to that point because I was.

[A]

Yeah. The Walmart. I need the 900 hours. You need to know what happens there. I need you to sit down on a monthly basis again, go through the budget program, but sit down on a monthly basis, figure out where every cent was spent. And when you do this, it's going to take a long time. Your first time, it's going to take a long time your second time. But it gets quicker and quicker every time you do it on a monthly basis. But you need to look at where your money is going. The fact that we can't define like the craftsman, we can't define 900 hours going to Walmart and yet we're underwater dramatically by $2,000 a month. Okay, so your rent is how much again after utilities and fees and all that?

[B]

The number in my head is 1, 2, 3, 4.

[A]

After utilities and freeze and everything, 2, 3, 4. Okay.

[B]

Is that including Internet, gas, electric, Internet, not electric, gas.

[A]

How much for electric then?

[B]

Jesus Christ. It's Texas in the summer. So like your place?

[A]

Not very efficient.

[B]

No, my paid my how much? Somewhere between 1 and 200.

[A]

150. Renters, insurance. Do you have it?

[B]

Yes, I paid for it up front.

[A]

A year?

[B]

Yeah.

[A]

Okay. Gas. Vroom, vroom. Drive, Drive. How much on a monthly basis?

[B]

I probably fill up twice a week. So eight times 30.

[A]

Eight times 30.

[B]

Filling up twice a week. About 30 bucks.

[A]

Oh, you fill up twice a week?

[B]

I think so.

[A]

I heard that it's once every two weeks. Sorry, 240. Wow. Okay. Car insurance?

[B]

Yes, I think it's like 190.

[A]

Okay. Your debt minimum payments is 352. It'd be over a thousand dollars though if something happens to your mom, obviously. Hopefully not of course, but you know there is the risk there that is realistic. $100 for TP fund. Anything else you need to survive. This is makeup, this is whatever gym.

[B]

Included in the apartment. Luckily one of the few benefits.

[A]

Do you have medical, ongoing payments, co pays, things like that.

[B]

The only thing on a regular basis that comes to mind is going to be medications and required vitamins that's what a lot of those. Let's call it 50.

[A]

You have pets?

[B]

Yes.

[A]

Pet insurance?

[B]

No, because I did and it did not benefit me a single bit how every time I tried to file a claim on it, they told me no. Doesn't count.

[A]

Who'd you have then?

[B]

Spca.

[A]

Okay. I don't know about them, but my pet health insurance has literally saved me six, $7,000.

[B]

No, I would love to have had it work because I did. I paid for it. She's over a year and it didn't do anything.

[A]

Well, I would look at true consumer. Well, I almost it sounded like I was giving a brand. True consumer reviews. No, that's not a brand but like actual consumer reviews.

[B]

And I because that was the one that my company benefits was like here. This is the one we support.

[A]

Okay. Yeah, no, I would just want to make sure they're, you know, good. And luckily the one I have is okay, I got to do groceries. But with you and your boyfriend it's I want to give you free money right now. I've partnered with different resources that will literally give you hundreds of dollars that the moment you sign up for them. Check out my investing app of choice, Moomoo, where they give you up to 15 free stocks and 8.1% interest on your uninvested cash when you sign up with my link. Do you want a more traditional savings account? Check out where I keep my emergency fund SoFi, where they'll give you 4.5% on your money and up to $300. Would you rather have automated investing? Sign up for Acorns with my link and you'll get $20 right now instead of the usual $5 you'd get from from your friend's referral. You can also sign up for our investing program and get $100 in cash deposited into your Moomoo account. This is the best way to learn what your investing profile looks like and what investing strategies to use based on that. All of this free money is linked in the resources section of the description below. So don't pass up the free money because I'll punch you. What all do you cover related to him?

[B]

I cover food. I don't consider rent because I would be paying the same in rent no matter what food. Phone.

[A]

What's your phone bill?

[B]

I think his is set at. I think it's 25 bucks a month.

[A]

Okay, that's not bad. No, he's using something like helium.

[B]

We both use mint.

[A]

Mint. Okay. Yours is 25 as well.

[B]

I think mine's 30 because I pay for more data.

[A]

Okay, so 55 for phone, groceries for $500. Meal prep. $500 is fine for both of you if you're meal prep and just a few meals a week frozen up, refrigerated. Meal prep, meal prep, meal prep. What else do you cover?

[B]

Like I said. And then probably the other big thing for him is non essentials. So give me a second, because I feel like I'm really quiet. Biggest thing, non essentials. His big habit is he does smoke cigarettes.

[A]

Well, I don't know how to go about that. That's. But I can't put that in the budget. I'm gonna put that in the budget. He smokes cigarettes and vapes. And he just had something in his lung.

[B]

The vape is very, very, very, very little. And it's the T or the CBD 8 or the T. What?

[A]

Okay, okay. Sure, sure, sure. He should probably.

[B]

He's cut back. He's cut back for someone who's had a habit for a very, very long time. He has cut back.

[A]

You wanted it. Okay. Smoke in the house. No, no, I can't put that in the budget. What else do you have to take care of? Anything else?

[B]

Not that I can think of.

[A]

Subscriptions and how much for pet food on a monthly basis?

[B]

I think it's 60.

[A]

Listen, because that's also kind of enabling his addiction and bad behavior. So it's just like, I really can't put that in the budget. And quitting. So much easier said than done. I know. That's. That's one of the hardest addictions to break. It's horrendous. Like, I get it, but it's coming out of your budget. And this is obviously not good for him as well. It's just like, it's hard for me to put that in the budget. $2,931. Okay, so we're under because you have $2,559. There's really no way for you to budget this. A lot of that is because groceries are more expensive. And this is without putting in the cigarettes. And the big reason why we're over is because, you know, your credit cards, they. They just keep going up. Probably because you're under, so they just keep going up. And of course, your rent has 48 of your income. When's your lease up?

[B]

December.

[A]

Okay. You're not living there anymore.

[B]

No, I'm not. I'm getting the heck out of there.

[A]

Well, why? According to you.

[B]

According to me. Well, part of it is what I'm paying versus what I'm receiving is not working.

[A]

Okay. Either way, get in a, in, in a, you know, relatively safe environment, get a $1,100 place, $1,200 place. You can't afford this. It doesn't make any sense. You'll at least be close to breaking even around then in your current situation. How many hours a week do you really work? On average?

[B]

42.

[A]

Okay. The reality is, and this is, it's completely up to you if you want to take care of this dude. Completely up to you. And if you do, the reality is you're gonna have to work another 10, 15 hours somewhere else or else you're just underwater. It's as easy as that. I mean, you can always. Even if we forfeit our credit cards and let them go into collections, credit score and all that stuff, even do that, getting rid of those minimum payments doesn't get you to break even. You're still underwater. So that's not even what's going to do it. You're. The meal plan's a pretty aggressive meal thing. Do you have a car payment?

[B]

No.

[A]

You're lucky there. Your gas is expensive. What do you have? What do you drive?

[B]

Kia Soul.

[A]

Okay. Lots of miles. You fill up twice a week.

[B]

I think again, that's a, that's an estimate.

[A]

I mean, your phone bill's good. Of course you're taking care of his socks. It's. Yeah, it's your rent. Your rent is killing you. And taking care. If you include your rent, your debt, minimum payments and taking care of him. If you include that and get rid of those and have an affordable rent, you know, you have a few hundred bucks extra on a monthly basis to start throwing towards like a Roth ira. You have to work a couple hours. You have to work an extra 10, 15 hours a month. You have to. A week. Sorry, A week. I wish it was a month. A week. You. So you're getting a coffee job, you're getting night stocking of shelves, you're getting anything and everything.

[B]

And I've looked at it. I, I've looked into it. The hardest part is availability.

[A]

Yeah. No, you're going to have to get creative. But really, because the only other alternative is like, literally, I mean, what's the alternative? Like you're just going further into debt because you literally cannot afford this or you're going to break your lease or you're going to get kicked out. Like, honestly, something that might be worth it is having an honest conversation with the leasing office and being like, I just simply cannot afford this. Rent anymore. What can I do to break my lease so you can get out of it early? Because the fact that you have to do this for another four months still is insane. Insane. This rent is too much for you. If your rent's ever near 50% of your net, don't. You're supposed to be living off of 50% needs. You've already maxed out your needs with just your rent. I want you to have a nice place. You just can't afford this place. And math is math is math is math. And you're making your life worse and harder. How much are you contributing to your 401k percentage wise?

[B]

I'm not sure.

[A]

Okay. You might be contributing over your match to get to that balance already. So I would actually probably bring it down to whatever the match is because the match is 100% return on your investment. But honestly, even if you're not even breaking even with your rent, get rid of your minimum payments but your rent, even that like a roof over your head's more important than a match. So. But to first start, drop it down to the match because I think you're contributing higher. We need more money in your pocket right now to just take care of our things. Cuz you need to pay off the $5,964 credit card as soon as you can then $835,800 $353 card you like. You need to pay those off immediately.

[B]

I have a query for you, please. Would. Part of me thinks that it's an insane stupid idea but at the same time it's the only one that I can think of would pulling from the 401k to get rid of the debt being option like I don't know. That's. That's where I'm at.

[A]

So you're going to face an immediate 10% loss.

[B]

Okay.

[A]

That's a penalty early withdraw. And then you've likely taken advantage of a lot of 2023 and then 2024 gains in there. You're gonna get some long term capital gains and even some short term capital gains on those gains. So your tax, your hit could be like 2025% total there. Meaning you're getting kind of like a 2025 interest on that money which is similar to the credit card. So it actually might not make sense mathematically and well. But let's say it did make sense mathematically. Let's say you took a loan against your 401k. I like a low percentage like 5,6% and you paid off your debt with that. That doesn't solve the problem though, because you got in the debt due to behavior issues. You can't control your spending. You don't know how to manage having debt. And you paying them off isn't going to be a mission success. You paying it off gives you the ability to spend more money on them. You paying these off by never spending on them again, cutting them up, sticking to a strict budget builds the behavior that you don't. Credit cards again, if you just consolidate them through some kind of method or whatever at this point, you're likely just going to build them up again. We've seen it time and time again on the show. So you just kind of double hurt yourself because then you've drained your retirement or took out a loan against it. And then you're gonna have to pay off your cards again because you're gonna build them all the way back up. So I wouldn't do it.

[B]

Okay?

[A]

I wouldn't do it. I'd rather, I'd rather let them go to collections and just, you know, hope that they don't sue you in like small claims or anything. But, you know, I don't know. 8,000 bucks is a decent amount of money. There's. There's certainly a mathematical cut off in terms of where they'll come out through legally, but they're entitled to. They're entitled to. For a few hundred bucks, they certainly won't. For a few thousand, they certainly won't. Approaching 10,000. It's a chance. What do you think?

[B]

I'm thinking I need to take my family's advice. And finally, did your family say shake down my ex husband for the rest of the money he owes me on the credit card he owes me.

[A]

What?

[B]

So what again, like I said, when we got divorced, it was pretty.

[A]

Was this in the agreement signed?

[B]

No.

[A]

Okay, then he probably doesn't owe you anything, but go ahead.

[B]

I did not get anything. Neither of us split anything legally money wise. As far as the divorce, I didn't receive anything from him. He didn't receive anything from me. But the agreement we made was that verbal agreement? Yes. And he has stuck to it. It's just not been up front. It's been, hey, can I get money towards the credit card debt?

[A]

Okay, how much?

[B]

Started out with like 8,000 because that was the balance on the credit card at the time that we got divorced. He was going to. That was the agreement was that he was going to pay off the balance because it was.

[A]

Why hasn't he.

[B]

Divino call him. I will.

[A]

No, Call him. I'll talk to him right now.

[B]

I don't think that's a sound idea.

[A]

Why?

[B]

First of all, I would hope to God he's at work because that was an issue. Part of it's. I don't want him to know how bad I am at, like how bad of a situation I'm in because he's just gonna get.

[A]

When's the last time you've brought up him giving you the money?

[B]

Last week. And he sent over $750.

[A]

Where to go?

[B]

Currently, it's sitting in my debit account, but it's gonna go.

[A]

How frequent does that come in?

[B]

Anytime I ask. I.

[A]

How frequently do you ask?

[B]

At least once a month, if not twice.

[A]

Okay.

[B]

And it's somewhere between.

[A]

Ask more, ask for a bigger amount. Sounds like he's giving money if you do it.

[B]

Yeah. It's just not.

[A]

Say what you need and say how much he owes left.

[B]

I haven't.

[A]

Just get it. How much is owed left?

[B]

I think it's 2 or 3,000. I know.

[A]

Barely makes a dense. Because you've just been irresponsible with the card. Okay, well obviously get it and throw it towards the card. But again, what that has proven is that doesn't change your behavior. You need to change your behavior first because that's what's going to actually make a difference here. Spending a budget, you overspent dramatically. 0 out of 10 debt, you have collections. 0 out of 10 emergency fund. Not a great nothing. It's not. Oh, wait, no, no. Actually, if you thought. Actually, okay. So you do have a month's worth in there, which is great. So I wouldn't throw any more to savings. The rest goes towards that now. Okay. But you do have a month's worth. Gonna give you a 2 out of 10 there because it's like 2,500. Okay. Retirement, pretty happy for your age. Pretty well, actually for your income level. That actually makes me even happier. I'm gonna give it a 7 out of 10. Real estate, 0 out of 10. It's going to be a Hammer financial score of 2 out of 10. Make sure to join us in the post show. We're going to bring in the producers, we're going to talk about some extra drama and stuff that we didn't have a chance to talk about in this episode that they know. And then also check out all the resources linked in the description below as they are what I use or would use in specific situations, including the best budgeting and investing program ever created in the Internet, which are now discounted at 15 bundled price off? Something like that. Join us for the Pod show today on the Financial Audit Post Show. You guys agreed together that he would be moving down without a job. You guys agreed to this? How was this proposed?

[B]

In his words, he would be house, stay at home person.

[A]

So he had no intention to get a job done?

[B]

Not initially.

[A]

When was your divorce? November.

[B]

In November.

[A]

And you started talking to this guy in December? And he moved down only a few months later. And there's red flag warnings everywhere. To watch the Financial Audit Post show, click the join button below.