Podcast Summary: Financial Audit with Caleb Hammer

Episode: I Had To Call This Failure's Mom | Financial Audit
Date: June 12, 2024
Guest: Miles (25, IT consultant from Lake Mary, FL)

Episode Overview

This episode of Financial Audit centers on Miles, a 25-year-old IT consultant navigating financial challenges after a tumultuous year including family conflict, job transitions, a new baby, and poor money management habits. Host Caleb Hammer dissects Miles' finances and spending patterns with his trademark blunt honesty, helping him (and listeners) reflect on irresponsible behaviors and offering a roadmap to financial stability.

Key Discussion Points & Insights

1. Miles’ Background and Income

• Profession: IT consultant (contract position since January).
• Earnings: ~$62,000/year (after taxes), $28/hour, admits this is below market for his role and experience.
• Job History: Recently fired from Mitsubishi Power due to workplace conflict involving ethical concerns about data privacy.

Notable Quotes:

• "I’m kind of, I’ll be honest, I’m a little lowballed... I probably should be getting more like the $35 an hour." — Miles, [01:08]
• "The average is about $38 an hour for IT consultants… You’re on the lower scale." — Caleb, [01:54]

2. Family and Living Situation

• Miles was living with his parents, paying $500/month rent in Orlando for a house he shared with his fiancée, their baby, and sister.
• After conflict over boundaries, his parents evicted them, leading to unexpected moving costs.

Memorable Moment:

• "They just came into the house while we were watching UFC and just straight up took my TV..." — Miles, [04:19]
• "Eviction paper versus, like, a conversation, especially when their grandchild is involved, that’s a bit weird, I’ll be honest." — Caleb, [08:19]

3. Poor Financial Habits and Debt Overview

• Debt Types:
  • Credit cards (including a $5,145 Amazon/Chase card)
  • Buy Now Pay Later loans (Affirm) at high interest (30–36% APR) for purchases like a new TV and Universal Studios tickets.
  • Student loans ($5,496) and a defaulted private tuition debt ($2,373) to Florida Career College.
• Emergency Fund: A few thousand saved (primarily motivated by job instability), but still missing basic payments.
• Spending: $300–500/month on marijuana; frequent eating out; sporadic, nonessential purchases (UFC, Universal tickets).
• Reasoning for Not Paying Bills: Miles prefers to keep cash on hand "in case something happens", resulting in repeated late fees and accruing interest.

Notable Exchange:

• Caleb: "Why aren’t you paying your damn bills if you have the money? You have a kid!" [15:11]

• Miles: "Because, man… I want to have some kind of like, money on the side if something happens." [15:13]

• Caleb: "You're literally willing to spend $500 a month smoking, destroying your lungs. That's obnoxious. It's the dumbest thing I've ever heard in my life. ... As a parent and as a partner, that is... borderline disgusting." [32:16]

4. Buy Now, Pay Later & High-Interest Financing

• Multiple Affirm loans at 30–36% interest for "wants" (TV, theme park tickets, certifications).
• Fails to understand the real cost of financing consumer items.
• Caleb breaks down why using high-interest loans while keeping idle cash is financially backward.

Notable Quote:

• "Imagine getting the TV at 30%. That’s insanity. That’s a $400 TV you’re paying $600 for." — Caleb, [24:50]
• "If you're doing a $500 thing as an investment to create a better income, how does 36% interest on that make sense?" - Caleb, [24:05]

5. Budgeting and Spending Analysis

• No formal budget; tries “a fake one” in his head.
• Sizable portion of spending goes to vices and takeout, triggering overdrafts and missed minimum payments despite having cash reserves.
• Caleb stresses—repeatedly—how Miles’ habit of “saving” is moot if he’s losing more to fees and interest.

Memorable Moments:

• “The overdraft I already knew was going to come.” — Miles [53:45]
• “You were having this fun going into gas stations and getting some bull, and you knew you were going to overdraft. That means you are not sacrificing. You're not willing to take any hit, any hit, of your own fun for the sake of your own finances.” — Caleb [53:53]

6. Irresponsible Attitude and Parental Role

• Caleb presses Miles on his lackadaisical and “cheeky” attitude, warning that his priorities must shift now that he’s a father.
• Repeated missed payments and refusal to budget or make sacrifices are called out as "childish".

Notable Quotes:

• "You're not being a responsible adult. You're not being a man." — Caleb, [30:45]
• "You should be paying your minimum payment. ... You’re acting...like what a 10-year-old would have if they could have access to debt and checking accounts and jobs." — Caleb, [53:16]

7. Calling Miles’ Mom About Tuition Debt (Signature Segment)

• Caleb and Miles place a live call (with a Spanish-speaking producer) to Miles’ mom to confirm she’d promised to pay his tuition bill.
• She confirms she had promised but hasn’t paid due to finances; tension and humor as both evade accountability.

Segment:

• Starting at [43:14]
• "Can you confirm that you promised to pay for your son's certification at college?" — Producer Mika to Miles' mom
• “She said that she’s not gonna pay it, then.” — Mika, [44:35]
• “So she lied. ... She did promise to pay for it and she's like, well, how am I supposed to pay for it with my mortgage?” — Caleb, [45:32]

8. Budget Roadmap & Solutions Proposed by Caleb

• Stepwise plan for Miles to get out of debt by:
  • Strictly budgeting (using Hammer’s programs/resources)
  • Paying off high-interest cards and loans before anything else
  • Building a clear separation between emergency and tax savings
  • Curbing all nonessential spending (especially marijuana and fast food)
  • Exploring higher-paying IT roles after gaining new certifications
• Warns him not to spend on nonessentials (e.g., cruises, more theme parks) until debts are under control and bills are reliably paid.

Notable Quotes:

• "This actually isn't even that hard, man... You just need to be so much more intentional and smart with your money." — Caleb, [59:56]
• "If you really go hard, you could have it dealt with in two to three years." — Caleb, [71:17]

Notable Quotes & Exchange Highlights

• "So, you know, we're just extending the price of your purchases by 36%." — Caleb, [27:39]
• "You need to pay your minimum payment as step one, not just save and ignore it." — Caleb, repeatedly throughout episode.
• "Just be an adult, finally. Don’t do it – it’s dumb." — Caleb, re: planning a cruise, [73:23]

Timestamps for Key Segments

• [01:04] — Discussion of IT consultant pay
• [03:41] — Family conflict and eviction details
• [05:00-06:39] — Ad break (skipped)
• [14:27-16:47] — Miles’ irrational approach to bill payment, late fees
• [17:53] — Miles’ use of Affirm financing, focus on TV purchase
• [24:05 & 24:50] — The real cost of high-interest loans
• [32:16-33:44] — Caleb’s harshest critique on vice spending
• [43:14-46:16] — Calling Miles’ mom about tuition debt
• [59:56-65:52] — Budget and spending analysis
• [68:13-72:20] — Three- to five-year debt payoff plan, behavior change discussion

Tone & Language

True to Caleb Hammer’s style, the episode is filled with frank, sometimes abrasive but insightful analysis. Miles brings moments of humor and self-deprecation, often trying to deflect with jokes, but is repeatedly confronted by Caleb to face responsibility, especially as a new parent.

Conclusion & Recommendations

This episode illustrates the consequences of financial avoidance, the impact of family on adulthood transitions, and how quickly poor decisions compound—especially when Buy Now, Pay Later fixes become a lifestyle. Hammer’s plan for Miles is actionable but depends wholly on his willingness to change mindset, cut vices, and above all, start paying his damn bills.

Hammer Financial Score: 1 out of 10

"Retirement: no. Zero out of ten. Best years of your life for compound growth." — Caleb, [74:24]

For Listeners:
If you’re feeling seen by this episode, check out the resources in the Financial Audit show notes for help with budgeting, investing, and debt payoff. And remember, "Just be an adult, finally."