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

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.

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]).

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])

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]).

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]).

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])

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])

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])

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])

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 |

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])

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.

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.

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])