I Had To Call This Failure's Mom | Financial Audit

Summary

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)

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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.

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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]

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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]

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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]

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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]

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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]

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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]

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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]

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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]

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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]

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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

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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.

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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.

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Hammer Financial Score: 1 out of 10

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

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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."

Transcript

[A]

To watch episodes of Financial Audit a week earlier. Check us out on YouTube. That is so stupid. Irresponsible, borderline disgusting. As a parent and as a partner.

[B]

That is a little called out right there.

[A]

What the think this show is.

[B]

Hey, this is miles. I am 25, based out of Lake Mary, Florida and this is Financial Audit.

[A]

Welcome over to Austin, Texas. What do you do for a living in Florida?

[B]

I'm an IT consultant right now.

[A]

Okay, cool. Could be a good industry to be in. What are you making?

[B]

I'd say typically like last year I had made about like, like 65. And then this year I may. I'm probably Trekking for like 62 after. Okay.

[A]

Is it based on after taxes paid? Oh, okay. So this is a contractor job?

[B]

Yeah, it's. It's a, it's a contracted job.

[A]

That makes sense as a consultant. So. So with that it's hourly based then.

[B]

Yeah.

[A]

What's your hourly pay?

[B]

I get 28 an hour. Amount I'm typically working about.

[A]

How does that stack up for most IT consultants? 28 an hour?

[B]

Honestly not that great. I'm kind of. I'll be honest, I'm a little lowballed. I probably should be getting more in like the 35 an hour.

[A]

Well, maybe. How long have you been in the position.

[B]

With them? Consulting for them? Since January. Oh, that was my job before.

[A]

Oh, you lost your job? What happened?

[B]

Well, what was the job? Well, I had worked at, at Mitsubishi and basically I had some issues with the vice president director. She's kind of an issue. And they ended up, you know, giving me the boot.

[A]

Okay. Yeah, that's very specific. Were you in it there?

[B]

Yeah, yeah, I did, I did it there for about two years and then.

[A]

Yeah, the average is about 38 bucks. Bucks an hour for IT consultants. In Texas, In Florida. But it's pretty, it has, I'm assuming it's pretty similar. Anyway, so with that, you know, 25 versus 38, you know, on that upper range it's like 46 to 61. And then the lower range it's 26, which is.

[B]

I'll make it 28. So that's a little.

[A]

Oh yeah, yeah, yeah, 20. I was reading your age. Yeah. Okay, cool. So obviously have a lot of debt. We have a lot of things. What is going on?

[B]

So basically what it all kind of happened is I never really took my finances too seriously. Cuz like my parents, they like had a pool. Well, they still have a pool resurfacing business.

[A]

Okay.

[B]

And essentially for most of the time I was renting there for about $500 a month. In Orlando? No, no, I was renting at my, my parents house.

[A]

Okay.

[B]

They were letting me stay there for 500amonth and it was in central Orlando, which is actually extremely good for what the market is over there.

[A]

Sure. They're your parents. Okay.

[B]

And then essentially they would kind of just always come in whenever they felt like it. They would just, you know, never really let us know when they were coming over to the house, even though I was paying the money. And we kind of got into an argument where their house, I mean.

[A]

Okay, so. Okay, but to be fair, I mean.

[B]

Even though I'm giving them. I mean, if I'm giving them 500.

[A]

And no, of course I would love respective boundaries and stuff like that, but it's just like, okay, fine. It just seems. Okay, go ahead.

[B]

And then. So that had happened and I basically told them, hey, you know, I'd really appreciate you guys give us a call. You don't have to, you know, we don't, we don't need permission for you guys to come over. Come over whenever you want. It's your house.

[A]

Girlfriend or roommate?

[B]

Yeah, is me. My fiance, she was. And our baby, which. Our baby right now. Yeah, yeah, yeah. A little nine month old.

[A]

Oh, two little girls. Oh, so this is also recent, the story.

[B]

Yeah, yeah, this is. Yeah, this is pretty recent. And yeah, so essentially it gave them that conversation. They told us, you know, we'll come ever, come over whenever the F we want. You have a problem, you need to be out by. By X date. And then they kind of just kept coming by and harassing us all the time.

[A]

Okay, what's harassing?

[B]

Harassing is like, like straight up, like, they came over and they gifted my sister TV that she was living with us too at the time.

[A]

Okay.

[B]

And they gifted her a tv. And then they just came, came into the house while we were watching UFC and just, just straight up took my TV and like walked out.

[A]

Your tv?

[B]

Well, I mean, the TV in the house that we were watching, the one that they gifted. Yeah, the one that they gifted to my sister. But then they took it from me while I was watching it.

[A]

Okay, just to be clear, I asked, so what's going on? And right now I'm hearing about a TV that gifted and taken away. It's all the missed payments we're about to go through is because the TV got taken away. What are you on about? Guys, it is finally time. I've been building this thing out for six months and now I finally get to share it with you all. It's investing time, baby. I worked with professionals across the board and mixed in my own philosophy to create what I honestly believe is the very best investing program that can be found anywhere online right now. You can join for $97 until the end of this month where it'll then go up to $147. But the best part is that you get $100 of free stocks when you join. And they're handpicked by me, which essentially makes the program free for you to join. On top of that, the first 250 people who sign up will join me for an exclusive live stream where for the very first time ever, I, I break down my million dollar real estate investing portfolio and strategy. So sign up now so I can teach you what investment accounts you need and where to open them. How to plan for retirement, understanding your risk profile and what that changes in your investing, and a deep dive into five different portfolio strategies popularized by the likes of Warren Buffett, Yale University and other investment experts and institutions. I'll also give you a full list of index funds and ETFs you can buy to fulfill the needs of your portfolio. And this is applicable to anyone in the United States, no matter if you're employed by a company or self employed. I'll also give you everything you need to know about Tax advantage accounts, children's accounts, health accounts, and much more. This is literally the best investment you can make for your life right now. So make sure to sign up with the link in the description below or click the link in the pinned comment below to secure your free purchase. After the stocks that are gifted and before the first 250 are sold out and, and before the price increases, you can also go to calebhammer.com investing okay.

[B]

Because I'm, I'm getting to it. I'm getting to it. See, here's the thing, man. Listen, it's, it's hard. It's hard because see then after that happened, then we ended up having forcing to move. Then I had to basically just.

[A]

Whoa, whoa, that. Okay, hold on. Easy. Okay, well you were taking, you were going very slow in that story for a long time. Then all of a sudden we went from a TV was gifted that was taken away and I was forced to move the. Forced you to move? What forc me to move a jump?

[B]

It's because when they took all their. I basically found out, found anything in the house that was, you know, so they, they like, like they took the tv, they took a, like a trash can just like piece of our. Yeah, it's theirs.

[A]

Okay, so they needed it for something, maybe.

[B]

No, no.

[A]

Maybe they weren't properly communicating.

[B]

Trust me. They were being petty. They were being petty.

[A]

Petty about what? For why?

[B]

Because of the fact that I said that I want them to call before they come over and not just come over.

[A]

What is your relationship with them?

[B]

They're my. They're my parents.

[A]

Y. What's your relationship with them like?

[B]

It's not great. It's not.

[A]

Doesn't sound like it.

[B]

It's a little toxic.

[A]

Okay, let's not pretend. You were probably a perfect angel, though, were you?

[B]

No. No. I definitely might have reacted in ways that have not been the greatest and so.

[A]

Temper tantrums. Oh.

[B]

You know.

[A]

You know.

[B]

But basically it led to an eviction paper.

[A]

Eviction. Interesting.

[B]

Well, yeah, I don't think it was a real eviction. They just kind of, like, put eviction papers on, like, all the doors, all the windows.

[A]

They did?

[B]

Yeah. My parents.

[A]

Kid.

[B]

Yeah.

[A]

That's weird. Instead of just having a conversation over.

[B]

While I have a baby.

[A]

Oh, forgot about the baby thing. Yeah.

[B]

And then so at that point, so.

[A]

Like, okay, I. I. First of all, I mean, we're here in your side. We're here on your side. So it's just like. Sure. You know, maybe there's. Maybe they didn't want to enable some kind of behavior. They were seen. You know, maybe there's all this different stuff. Maybe you were being spoiled. Maybe they're just pieces of. We don't know. We're only hearing your side. But even still, it's. It's. It's the. The eviction paper versus, like, a conversation, especially when their grandchild is involved. That's. That's a bit weird. I'll be honest. Regardless, like, there would have to be some major context missing for that not to be weird. Okay, so you got the eviction papers.

[B]

And then at that point, I said that, you know, to be out by November. And so I kind of just had to. I was like, okay, I'm gonna find a job. Place near my job.

[A]

Sure.

[B]

Got a place. And then within that same month, a co worker had basically got in my face, cussed me out.

[A]

And why, though? Come on. It didn't just. Well, because no one just shows.

[B]

Well, because he was trying to.

[A]

He.

[B]

He was trying to break a law. And then I was just like, well, it's like a security privacy law.

[A]

Okay.

[B]

And in that. It's like a security privacy law. It's like this basic IT thing that you follow with. With how you move data between Countries and different companies, you know, and so I said, hey, this different company that's trying to access our data in. For our company in this country, you know, they're a foreign country in a foreign comp with a foreign company trying to access our data. We shouldn't do that.

[A]

And you said it just like that, huh?

[B]

I did, I did. And then he told me to mind my business. And then I told this old man, I said, well, if you didn't, you know, if.

[A]

Where is this going? This is one of the biggest opening stories. What are we, 10 minutes in? Where's this going?

[B]

It's getting there.

[A]

It kind of just. Listen, if you're gonna tell the long story, at least tell it into the mic.

[B]

It's. It's a dominant look. It's a domino effect. Because, you know, I was like, okay, let me move to Mitsubi. Let me move closer to my job. And then got an argument with a co worker. I tried my best to do things the right way.

[A]

I told my boss, perfect Saints. Okay?

[B]

I was. I was like, you could. Like in the. In the whole video, like. He yelled at me. I kept my composure. I went straight to my boss. And then.

[A]

Were you fired?

[B]

Yes.

[A]

That was the car company.

[B]

Yeah, well, it was a power company.

[A]

Oh, sorry.

[B]

I thought it was like Mitsubishi power. They do power.

[A]

Oh, I was thinking of the car. Okay, okay, cool. Sure. But you're in a better job now, so just. Why. Where are we today? That's like, what is going on? That's what I asked.

[B]

Well, I guess I was just.

[A]

So.

[B]

Okay, so after all that, you know, spent a bunch of money. Spent a bunch of money on, like, you know, moving, getting an apartment, putting in down payments, buying a motorcycle, and then. What's it called?

[A]

Okay, I don't think that's necessary to live, is it?

[B]

I needed a way to get to places.

[A]

You didn't have a way to get to places?

[B]

Well, I did have a Jeep, but I had to sell that Jeep because the insurance was really expensive and the gas was like a hundred dollars a week.

[A]

How much was the motorcycle?

[B]

It was like. It was like $4,000.

[A]

How much was the Jeep?

[B]

No, my parents bought it for me, but it was like. It was like 18.

[A]

Who got the money when you sold it?

[B]

I got. I got the money.

[A]

How much did you get?

[B]

I got like 13:5. It was a leak in trend. It had like.

[A]

Where'd it go? Where'd that 135 go?

[B]

Then I bought a motorcycle and I moved.

[A]

This is. Okay, well, let's give Context to this because this is. I. I'm gonna cut off your story. I'm gonna cut off your story because lots of have context like numbers behind this because what the. Well, first I always want to hear someone's own interpretation of their own situation. Give yourself a score. 0 to 10. 0 being the absolute worst finances possible. 10 being the absolute best finances possible.

[B]

I say like, like six easily.

[A]

Easily.

[B]

Yeah.

[A]

And you if you want your hammer financial score and you're reasonable about your expectations and not expecting something stupid like 6 if you have all these missed payments, it's free. It's in the description below. Why a sex. Well, that's.

[B]

So I have a good amount of money saved up and my, my. My rent is paid on time and I have food.

[A]

Okay. So basic requirements to the rent and food part. What's the money saved up for?

[B]

Part of it is for taxes and then part of it is just cuz I was so scared of when I did lose my job because I didn't have any savings at the time that I just.

[A]

How much is emergency versus taxes?

[B]

I'd say like, I'd say like third of it is going towards taxes and then the other other 2/3 I'm probably pocketing from what my. From what my finance app thing that I use tells me.

[A]

Pocketing for savings.

[B]

Yeah, well, not pocketing but like I keep it in.

[A]

Okay. And why haven't. I'm curious why we have like. I'm looking at this if there is like a couple thousand dollars in savings or so. Which. Okay, cool. Why, why do we have a late fee on the first card? I'm looking at what do we have a late fee on the first card? If we have actual money sitting inside, you're blessed compared to a lot of people that have been on and there's a late fee. Doesn't make any sense. Doesn't make any sense. Well, 37. 37 fee with $26 of interest. This card, the balance went up shocker because of that. So what do we have? Bank of America. Everyone loves them. $1,129.50 again for your income situation. Fiance, right? Not married.

[B]

Yeah, fiance.

[A]

How does she contribute to the house? Does she.

[B]

Well, I mean, she keeps the house clean.

[A]

Okay, so it's like what? Huh?

[B]

I get my din. Dins and stuff.

[A]

So. Okay, so she does not bring an income is what I was asking. Yeah, yeah, trying to ask. Okay. $73 minimum payment. I'm pretty sure it's normally 45, but late fee for payment due $37. And that's not your only one this year so far. We're not even halfway through the year and there's been two. It's been two. Why do you have a little bit of money sitting on the side more than most people on the show, but you have leave fees. Not everyone on this show has leave fees. Why aren't you paying your damn bills if you have the money? You have a kid?

[B]

Because, man.

[A]

Well, what?

[B]

Well, see, the thing is, the thing is though, I want to have some kind of like, money. No side. If something happens.

[A]

Yes. Why are you not paying your basic bills 6 out of 10?

[B]

Because I want to make sure that I still have some money.

[A]

But you're not paying your required bills. Like, that comes first. Like, you make the bill payment and then you have the leftover money. You're just. You're skipping step one. Pay your bills.

[B]

But I'm gonna get to it.

[A]

You're not. You have. You've had two this year. That could be a little smirk. What the is that?

[B]

Sorry, nerd. I guess, you know, well, because I'm just like, at least I have the money. And then once I. I will, you know, at some point pay it. I just need to figure out how am I gonna pay it.

[A]

What do you mean you have the money?

[B]

Yeah, but then, like, what am I gonna have if something happens to me, you know?

[A]

But this is literally making a 45 payment. If you have a few thousand hours set aside, you could have made a 45 payment.

[B]

But I need to make sure.

[A]

How are you not receptive to that? How is that not like making it. How do you have to be so humans, including all of us, including me. Defensive. Defensive. Defensive. But how. That is like the most basic thing I think anyone could ever say. You have a few thousand dollars, you can make a 45 payment. How are you. How is that. How does that not make sense to you?

[B]

Because it's just like, then I'm going to have it.

[A]

What? $45? Yeah, that's what's going to make or break when you lose a job. $45. You surviving is. $45 can make a.

[B]

You can make a week groceries out of $45.

[A]

I get it. Oh, okay. Are you like, really hard headed, just naturally your fiance? Do you guys ever talk about that? Your parents?

[B]

Well, my parents for sure. Yeah.

[A]

Yeah. Because you're. You're very. You're being quite hard headed with this part of the conversation. Well, like how I. I don't know how you just haven't been receptive of that. That scares me.

[B]

It's just like, it gets hard for me. It's hard for me to see the benefit money.

[A]

You're a parent now. You're a parent now.

[B]

And I guess from my perspective, you.

[A]

Want to see a benefit, I'll show you a benefit. You wouldn't have these fees there. You're losing money. That's a benefit, not dealing with the consequences. That's insane. What is this? What even is this? What is this?

[B]

That's my affirm.

[A]

Affirm.

[B]

I use. I like affirm, though.

[A]

Great. Yeah. They love you. Are these all 0%?

[B]

No.

[A]

Then why do you like it?

[B]

Because.

[A]

How do you like it?

[B]

Okay, see, and then you were talking about how much I was spending time talking about some TV and home story, but now you go. There you go. Now you get the context.

[A]

Well, you had to go get a tv. You can't live without a tv.

[B]

How am I gonna watch ufc?

[A]

Phone. You have one of those?

[B]

I do, but I like to have the boys over.

[A]

Okay.

[B]

When we watch it, what, are we all just gonna cuddle up with each other and watch it on my phone?

[A]

Sure. Be a little gay.

[B]

They probably like that, too.

[A]

Yeah. And go to their place. Your place is the one with the screaming child. I'd rather go to someone else's place.

[B]

Hey, hey. My kid, my kids.

[A]

Chill. She's cool.

[B]

Peoples don't bother nobody.

[A]

Okay, but still, come on. That's not a good. Oh, you're little smiles. You have a great smile. I hate it because it comes out in the wrong time.

[B]

You know, my fiance says I have a eating grin. You ever heard that saying, you have a eating grin?

[A]

It's a great thing to hear from the fiance. Sure.

[B]

All right, back to the tv. Back to the.

[A]

Well, you don't like getting called out for your little. Your little. Your energy, your. Your way of taking on life? I think it might be an important part of your story.

[B]

It's a pretty chill way about living life.

[A]

Yeah. But that might not always be the best thing. Well, I know people. Everyone comes into this conversation and they literally, they have an idea in their head where the conversation is going to go. But I always see different things than they expect me to see. That's how it always goes. And then people are taken off guard. It's like, I don't know, you have an energy about a way you're presenting the world. It's like, I don't know.

[B]

It's just so many things that happened throughout this past year that kind of just led me to Being like, you know, throw it, throw it on the credit card. Or. Or I can't pay this bill because I need to make sure that I pay for this.

[A]

Do you have a kid now, though?

[B]

And that's exactly why I have money in my savings.

[A]

No, which I get that. I get that part. That doesn't mean we don't pay our bills and start having, you know, people coming after the bills was just like, how.

[B]

How do I. It's just like I have the money.

[A]

Maybe. Okay, maybe we need to get through it, have a full financial picture so I can like, literally show you. I might have to show you. So Walmart. Is that the tv?

[B]

Yeah.

[A]

Okay, how much is left on that?

[B]

That one? I'd say, like.

[A]

Oh, actually 3, 400. Yeah. The total affirm balance is 1,371. 19 ncs. Pearson. What is that?

[B]

That one. That one I'm pretty proud of. Because this is a good thing. It's an investment in myself getting. Since I do IT consulting, I wanted to get myself a certification that I've been actively studying for.

[A]

That's great. No, I'm good about it. But you. You financed it, though. I don't know what these interests are.

[B]

Is that the test is like. It's like four or five hundred dollars, and I just don't have four or $500 to spend.

[A]

I could have gifted you an IT certification through course careers. They're my boys. I love them. They're great. And I'll still gift you one, but I guess you've already purchased this as well, so I'll take another. Yeah, you can take another. I mean, it's.

[B]

How's the IT consulting business?

[A]

Well, I mean, it's always good for just, you know, boosting resumes and income, so that's good. But okay, the financing. I'm. I'm not the. I'm not against the education or things like that. I'm against the way you went about it because again, it's not like you didn't have money either. I mean, you're really a finance everything and make those minimum payments stack up kind of guy. So let me calculate these minimum payments.

[B]

Feel a little called out right there. Because now I think about it, it's.

[A]

Kind of what the think this show is then. Universal.

[B]

My fiance kept complaining about how she had nothing to do and maybe she.

[A]

Should get a job. Sorry, that was. No, okay.

[B]

Well, you know, it was something for her to go do with the baby, you know, so they could go. She could go, baby.

[A]

What is a baby gonna do at Universal look at other than creatures, little thingies. It won't remember it. It's under three.

[B]

There's pictures.

[A]

Pictures are nice. Pictures are nice. And you can't even smell them in the pictures.

[B]

So I'll be honest. Maybe I didn't have to get all three. You know, like, I didn't have to get myself one because I'll be honest, I never. I never go. I'm always working.

[A]

Well, I actually think just, you know, from the over view of your situation that I kind of have. I honestly think you could do a decent amount of this stuff if you literally just paid for it. It's. Again, you're paying interest on these. What are the interest rates?

[B]

I'd say, like, honestly, all of them are like in the 25 to 30 range.

[A]

See, that's. That's stupid. That's stupid. That's stupid. Why doesn't she work, by the way? Is it to take care of the kid?

[B]

Yeah.

[A]

Oh, then that's great. That's great. And if the house can afford it, it makes sense. So. Okay. That's. Okay. Cool. So, yeah. Sorry about that.

[B]

I hope it. I hope we can call it. I guess we'll figure that out.

[A]

If you need to have a money talk and you don't have a kid that you'll bring here and make my place sticky and stinky, which you didn't. Thank you. It's back in Orlando.

[B]

Kept it back there.

[A]

Feel free to apply caleb hammer.com/apply. Okay, so minimum the pain is like 127 bucks. Something like that was a little hard to tell. Well, here's more firm.

[B]

Oh, yeah, that just kind of goes into like the percentages.

[A]

Oh, are these the same ones?

[B]

Yeah, those. Yeah, those are just showing the. The like how much.

[A]

But you don't know your interest rates, man. Whatever this one was, I don't. I don't know which one this one was, but it's a 36%. 36%. When you again have a little bit of savings, what are you just. You're not winning anything in a high yield. You're the savings account that you're in. Is it like 4.4%? I think, buddy, this is at 36%, which is a bigger number.

[B]

It is a bigger number.

[A]

So how does it make sense? And again, you're right. Let's have some money set aside. But if you're doing a $500 thing as an investment to create a better income, how does 36% interest on that make sense?

[B]

Because a network Engineer can make 85,000 something, but $85,000, you know?

[A]

I know. No, no, I. I just said that part was good. How does it being on 36% make sense when the cash is there?

[B]

I guess in the moment, the way I see it is this. Like, I rather have the cash on me, you knowing. There we go again.

[A]

Okay, well, yeah, we got that. I get that. Hopefully we can show you in the end that what you're doing either makes sense or doesn't make sense. The other thing, one of the other things you financed, again, I don't know which one this is, but. But it's one of the three farms. This one's at 30%. Imagine getting their TV at 30%. That's insanity.

[B]

It's not even that good.

[A]

Yeah. How much was it?

[B]

I think it was. The sucky part is how much was it? It's like a $400 TV that I'm paying 600 bucks for.

[A]

I could have just bought it. Oh, well, even so, you could have just bought it. Guys, I'm super excited to share what feels like a total life hack that is all about putting money back into your pocket. Meet the Upside app. It's not about collecting points or some weird reward system. This is about earning real cash for buying your everyday essentials like gas and groceries. You guys know I love being able to finesse and save a little extra money wherever I can. So I make sure I use the Upside app when I go to fill up my gas tank or go and grab a bite to eat. And once I get my cash back, I am able to send the money directly to my bank account. In fact, some of the top earners on Upside are racking up to $300 extra each month. That's not just pocket change. That's some serious real cash that could help you get rid of some death debt or knock a chunk off your monthly rent. And the best part, you earn this money just by purchasing the things you are already going to. You could literally cover your Spotify or Netflix subscription just by continuing to do what you do every day. So if you're not using Upside down, you're basically saying no to free money. And we don't like that, do we? So what do you need to do? Simply download the free Upside app and use my promo code, hammer to get an extra 25 cents back per gallon on your first tank. Just use the app as you normally shop at over 100,000 locations nationwide and bam. The cash back rolls in. Check out the link in the description below or scan the QR Code on screen and use the code hammer to. To start saving. Then the. The. This other one's at 36% again, I don't know if this. The universal. You're just. You are the buying. We just did a story on our new show, your Week in Money, about the prevalence of buy now, pay later. It's not a firm, but one of the other ones just got, like, record profits and their stock is soaring and they're about to go, or they're about to do an IPO and their stock's going to soar. It's because of people like you. You're just buying out pay later in everything. And they're getting a literal 36 return on every single one of their investments with you. That's crazy. You're just. You're making that money. You're their perfect product. It's incredible. You're literally. You exist right now to give a firm 36%. That is not a life to live. Yeah, it is so bad. Especially since we're talking about the interest that's accruing on that could be going towards a college fund for your kid. Could be going to. Paying for potential daycare, eventually saving up to do, like, after school care. If both, you know, parents want to work at some point.

[B]

And I do want to do that. I just don't know how I go about making that happen.

[A]

I'll tell you not how to. Not by losing 36% on all of your purchases. Like, you're. You're extending the price of your purchases by 36%. If you want to think about it that way. Okay.

[B]

Oh, God.

[A]

Amazon. Chase car. Bad one.

[B]

Yes. Yeah, that one. That one, I think, is, like, one of my worst ones.

[A]

And like, how do we get in this place in the first place? So the Balance is at 5,145. How did you get there? Because that's a lot of money.

[B]

It was originally just using it for groceries. Like, I go to Whole Foods and then I get my groceries and then I pay it all right back. Okay. As soon as I did that. And then something had happened in which my fiance had to go take care of her grandparent. So she was there with her for like, a couple of months.

[A]

Okay.

[B]

And so I had to pay for my groceries and then groceries for my fiance for her to. And then I. Then I. On the weekends, I. I drive out and like I told you in that Jeep is crazy gas, dude.

[A]

So you couldn't budget this in. Have you ever done a budget?

[B]

Like, not really. Like, I do a fake one in my head, but.

[A]

Oh, that doesn't work. Okay. Go through our budgeting class. Every guest gets them for free. Go through our new investing class as well because you literally, you get, you get a hundred dollars. A free hundred dollars for going through it, thanks to Moomoo. So we're gonna give that to you. Do you need to learn how to budget? Man? I can't believe you've never budgeted.

[B]

I just, I get scared even with the investing stuff, man. Like one time I like, you know, I got some advice to, to invest in Alibaba. So I had invested like three grand into that and then not going to.

[A]

Get that advice from ours.

[B]

And then at that point.

[A]

Who advised you that?

[B]

It was like a buddy of mine. He does day trading.

[A]

Yeah, listen to the buddy, especially the day trading buddy. They always, they always.

[B]

Yeah, I ended up with like, it went from like $3,000 to just having 300 bucks. So, yeah, I haven't really touched investing since then.

[A]

Do you not have a retirement account?

[B]

No, I don't.

[A]

This is your best decade of compound growth. That money in there just continues to grow. Hopefully, you know, if invested correctly, doubling every seven or so years. Seven to 10 years. That's the time, the time you're losing. And that is so that you can be set up for success so that your 9 month old who will eventually be like 35 when you're trying to retire or whatever, they don't have to forcefully take away from their life and goals to take care of their parents who were never responsible enough to take care of themselves. It's time now. You, you went from the young adult get the life to nine months ago. You're forced to now actually make sacrifices for, on behalf of other people. And that's really not an option at that point. The kid didn't choose to be brought into this world.

[B]

It. And, and you're right. I just, it's just different, you know, I don't, I don't know where or how to start. So I kind of just ignore it. And then I'm just like, you know, I'm just gonna, you know, if I could pay the bills, make sure we have a roof over.

[A]

You're not paying the bills. You're not paying the bills. You had a miss payment. You had a miss payment. Let's see. Oh God. A miss payment on here too.

[B]

Yeah.

[A]

So paying the bills. You're not paying the bills. You're not being a responsible adult. You're not being a man.

[B]

Well, I paid it.

[A]

A week later, you're paying them late and then you're paying extra fees on top of them. How long was your fiance there with the grandparents?

[B]

I see. About like six months.

[A]

So 5,000 hours worth of groceries in six months.

[B]

Well then that's not including gas.

[A]

$5,000 worth of groceries and gas in six months.

[B]

And the cat? Well, there's this thing.

[A]

Cat?

[B]

No, no, the cash. Cuz you could get cash advances.

[A]

What are you using the cash advances for? Never. Cash advance.

[B]

Well, I didn't realize how horrid the cash advance interest was.

[A]

Why? How?

[B]

Because I kind of was just like oh, I could just pull the money out.

[A]

You didn't think. Okay.

[B]

And so I was just, you know, buying.

[A]

No way. That's a new one. That's a. You get a special little reward for that stupidity. You got your cash advancing at like 30% interest rate to buy. I.

[B]

Not anymore.

[A]

Not anymore. But you did.

[B]

I did.

[A]

For quite some insane. How much do you spend on.

[B]

I'd say it could range anywhere from like 2 or 4. 2 to. I say like, it could range from like 200 to like $300.

[A]

So to be now.

[B]

Yes.

[A]

So to be clear, your big fear that you've been telling me since the beginning that you might not have enough money for you and your family if you get laid off, but 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. You'd rather spend $5,000 giving yourself lung cancer instead of making your payments on time. That's the most immature 15 year old dumb thing I've ever heard in my life. That is so stupid, irresponsible and childish. Borderline disgusting. As a parent and as a partner, that is. That is your entire reasoning for never getting things in cash and financing them at 36% is because you needed money to survive on the side, but you're willing to spend $500 on your own lung destroying smoke. Gross. I have nothing, I have nothing against whatever vice someone wants to do. We all have our own vices. But that was your reasoning for missing payments. That was your reasoning for getting 36% interest because you were too afraid of not having enough money on the side. And now we know. $500 a month literally goes to child.

[B]

I'd say more. 300.

[A]

You said three to five. Either way, five is. $5 is too much. If you, if you can't make a minimum card payment of 40 bucks, that's an eighth.

[B]

But no, you're. You're right.

[A]

Okay, I thought you're trying to piss me off.

[B]

No. A little bit.

[A]

Why? Why? That's stupid. Tell me, tell me right now. Why are you here? Why are you here? Give me like an actual reason why you're here.

[B]

Because I want to. I want to plan. Because you keep telling me to, like, do all this to pay my bills, but I'm just like, all right, how do I pay. How do I pay them?

[A]

Have you ever seen this show?

[B]

Yes, I seen.

[A]

I think being a part of the audience, right?

[B]

Yes, I've seen the show. Plenty. Cool.

[A]

So, you know, we go through the documents first to get a full understanding of your situation. You sitting there being a smart and help anything. And then we get a budget at the end. Then we send you on your way. We do a checkup in multiple months. We answer any questions. You email in. We put you through our. Our budgeting program, our investing program. We help as much as we can and you get the help. You get the help that we try. And you're being a smart sitting there when I brought up probably one of the most egregious, stupid things you do with your money. Stupid? What the Dumb, dumb, irresponsible, not a parent, not a partnership type of thing. Do you sit there, oh, it's an eighth like a child. That pisses me off. That's dumb. That's dumb. So shut the up. I'm gonna go through this. That's stupid. You can't even shut shot for a second. I know I'm being a dick. People are probably not gonna like it, but they don't know what it's like to send in this. Have a smart. That. That's stupid off.

[B]

Have you ever had to deal with people like you have to deal with in it?

[A]

You asking if I ever have to deal with people? Have you ever seen this show, buddy? I have people like you on, so yeah, I deal with people.

[B]

And you might do some good with some.

[A]

It makes me very anxious, gives me panic attacks.

[B]

See. Well, then you probably went with a sativa. Should have went for the indica or indica leading.

[A]

Shut for. Shut the up for a second. I'm going to go through this card. Shut the up for the second. For a second. She'll just shut the upper. Your minimum payment normally. What's your. I don't even see a on here. Oh, the credit limit. The credit limit is 5,000. 5,145. And then so you're above the credit limit. $40 of fees. $116 of interest. $118. Sorry. Oh, and purchases. 15 bucks of purchases. Minimum fee. Payment is probably 150, but you purchase stupid. Yeah, purchases.

[B]

I didn't even realize I pot anyway.

[A]

Probably subscriptions. Amazon prime, something. Oh, okay, you ordered something. Noah, you better have something good in the post show, cuz I'm about to break this table in half. Ninja. Oh, we're playing fruit ninja With a sword. Good. I need to slash something with a sword right now. So thank goodness. Can he be the fruit? No, we murder him. We murder the guest. First time. Sorry. Okay. Oh, and this isn't even your first time having a late fee this year so far on here. Of course not. Of course not. You've had maybe three. Maybe three. Maybe this is. What a silly, obnoxious, getting stupid card. Oh, you're obviously not a credit card person. Just like anyone on the show. You should use the fizz card. It's the only thing that makes sense for you. You're forced to pay it off and it still builds credit.

[B]

That's does the minimum monthly on that one lasts. I think I just paid it before I got here. Is 375.

[A]

Yeah, that's because you had missed payments. Those are extra. Added on top of that it's probably like 150 normally.

[B]

I didn't know that.

[A]

Yeah, you see the consequences of not being responsible. You see em yet you have to pay a bigger fee, bigger minimum payment. Oh, what is this? Florida career college? Is that where you went?

[B]

Yeah. I mean, hey, it got me five years.

[A]

No, I'm okay with that. I don't care. I don't know that. I don't know the college. What I don't like is 2373, they're giving a third attempt notice trying to get. You still owe them. Did you get the degree?

[B]

Well, they never gave it to me.

[A]

Because you haven't paid.

[B]

Well, because see when they called, they originally said when you finish the cert or whatever, they're going to go ahead and give it to you, the diploma or whatever if you graduation.

[A]

If you pay.

[B]

No, no, no, no. They said you get it at the graduation, right? And then after you start, you start going about your payments and stuff, right? But I ended up not going to the graduation because I was just like I don't want to do it. I don't care about any of that. I just want my, my thing. And then they're like okay, well you just got to start doing your payments. But I'm like well how am I going to go get a job If I can't show them that I completed the damn course, Just put it on your view.

[A]

Do you think people actually are, like, physically come in and bring in your certification, put it on your resume.

[B]

At the time, I thought they would check because I was about to get a job with Dell and I wanted to prove it to them that, like, I did something. And then they're like, oh, well, we're not going to give it to you unless you start paying. And I'm like, I'm not going to start paying until you start giving it to me. And then like, well, we're going your credit. And I said away.

[A]

Yeah, that's what a responsible adult partner and parent would say.

[B]

I was like 20 or 21. I wasn't even a parent at the time. So at the time felt like a very reasonable response.

[A]

Reasonable.

[B]

I mean, reasonable, yeah, just give me the product.

[A]

But it's probably in their terms and conditions. You smoke so much on a monthly basis, I doubt you're able to comprehend what was going on.

[B]

But there are my other friends that literally took the course with me, got their, their diploma because they went to the graduation, but just because I didn't go that I have to now pay.

[A]

I get that. And maybe that's just how works. Literally, you probably just had to make a minimum with the payment, just like one, and they would have sent it or something. But you weren't willing to do that. You weren't willing to just, just throw off because they were one in the whole, oh my gosh, it's not a man type of situation, buddy. It's just do it. You paid for their services. They provided the services. Well, you said you'd pay for the services and then you didn't. And they're not delivering the final thing. I'm not surprised. I wouldn't give it to you either if you didn't pay me for the thing you were supposed to pay me for.

[B]

And to be clear and at the time and see, the thing is like, now I know that here's another excuse.

[A]

And all of a sudden because, yeah, you know, someone told me that they.

[B]

Were going to pay for it, so that's why I did it.

[A]

Who?

[B]

My parents were like, oh, and other people go to school and we'll pay for it. Why didn't I went to school? Honestly, they just kind of like, they said, you work now, you make money, you pay for it. So I was just like. So I kind of just got stuck with the bill when the whole time I was just sitting there expecting, okay, it's just gonna be taken care of.

[A]

Okay. And it sucks it didn't. Whatever. We're just gonna take your full word on that because, you know, no one else is here to. What if we called them right now? Would they agree?

[B]

Yeah, yeah, but, I mean, it'd be in Spanish, so I don't know how. How good that would be.

[A]

I have someone here who can speak Spanish.

[B]

Oh, you can. You know, if you want to, we can. We can call. If she answers, because she can tell you that, you know, she said she.

[A]

Promised you would do it.

[B]

Yeah, she said she was going to promise to do it. And she was like. She's like, go ahead. Put my card on it. We'll go ahead and get the.

[A]

Get the card on it.

[B]

They said that they were going to put their card on it, and then, like, you know, nothing kind of came up after. Until as of recently, that I started getting said like, hey, you got to pay for this. And I was just. I didn't even know that it wasn't getting paid for.

[A]

We have a hero here, a hero that works here. He goes by the name of Puerto Rican dump truck because he's a Puerto Rican with a massive. That's for the vlog people. Back out in the vlog days. We're gonna bring him in, and we can call her up.

[B]

Yeah, yeah, yeah. I'm pretty confident. She said. You know, she told me that she was going to pay for it and take care of it, but I used.

[A]

To have what seemed like a massive before I got fat. I'm just buying time while Noah goes.

[B]

You look a lot smaller in person.

[A]

That's what everyone says. That's what everyone says. And then. And then I'm like, I look like on camera to people, but let me tell you. Let me tell you, I was fit, and my was just as big. Delicious, lumptious. Oh, hello, Mike. Oh, if it's not the sword. Oh, so you speak Spanish. Yes. Hola. Sorry. Do you not want me to get him? No, no, no. I wanted to. Absolutely. So we need to call his mom, who only speaks Spanish, and confirmed no one told me to bring the sword. What is this for? Just intimidation. Post show. That's foreshadowing. Oh, okay, cool. We're gonna use the. But we need to confirm with. You need to like, hey, I'm from this show. Can you confirm that you promised to pay for your son's certification at college? College certificate certification me on the spot, but I can try.

[B]

Yeah, I'm with it. I don't have my phone on me.

[A]

Oh, he. No, no, it's okay. I can translate though. Like that might be easier. Hello, everyone. Say hi to Mika. He's been in the post show. He's been in the vlogs. He also edits your week in money, which is taking away time for. But it's okay. Yeah, I'm taking. Sorry, but.

[B]

Florida, career, college. Okay.

[A]

I know a car. Can you speak that she was gonna pay. Ask her why she hasn't. She said that she's not gonna pay it then anyways.

[B]

Okay.

[A]

Why?

[B]

I don't know. I don't know.

[A]

Okay.

[B]

The Lomanda.

[A]

Can I ask a question? Yeah. Ask her why she agreed to pay for it, but she's not paying for it.

[B]

Okay, okay. Okay. Well, he said because I have a mortgage, so I haven't had time to get to it.

[A]

So she lied. Well.

[B]

Mexican mom, man, you trying to get me killed?

[A]

Okay, no, we don't have to do that. But it sounds like I. I would. One more question. Why did you take the tv?

[B]

Ok.

[A]

She'S saying it's hers. Oh, it was hers. Okay. She's like, oh, it's mine. Thank you, Madre.

[B]

Okay.

[A]

Thanks, Mick. Okay, see you later.

[B]

See?

[A]

All right, well, since you might get murdered by.

[B]

Yeah, I didn't want to push too hard.

[A]

Madre. Take the katana that we will be using in the post show to slice their fruits. You can protect yourself that way. Interesting. I couldn't understand any of it, but Mika told me that. Oh, it's really interesting. One reason why I wanted. He said not to ask her, but one reason I was like, I kind of wanted to ask her. So, like, it's what I would ask you, like, oh, so you're a liar. Like, that's interesting. She did promise to pay for it. And she's like, well, how am I supposed to pay for it with my mortgage? I don't know. I would feel bad if my kid went and signed up for all this money and I promised I would pay for it and then now it's on the kids because. Because I let down my promise.

[B]

I hate doing it. I don't even like it.

[A]

Well, good thing you're getting certifications in it.

[B]

It pays my bills.

[A]

Okay, but that, I mean, that's. That. That's a different conversation. But I actually empathize a little more now. I mean, you've been a little bit of.

[B]

A little cheeky.

[A]

Okay, yeah, but the tv. Yeah, it's Thursday. Take it. I don't know. They can take it. I don't give but, yeah, no, if someone promises to do something, I don't like anyone who breaks the promises regardless, so. Yeah, it sucks. Sucks when you realize you had to pay for it, though, to get it. It's still the responsible thing as an adult where it's like, it happens. The world is hard, you know, Bad things happen all the time.

[B]

Yeah.

[A]

You should have paid it just. Just so you could. If you knew that's what you had to do in order for you to get the thing you needed to get the job, it was worth it.

[B]

Yeah, I was just like, you know, I was just kind of hoping. Hoping Papa Biden, would you like, you know, those. Those charges.

[A]

Well, they don't look like student loans, though.

[B]

Yeah, it's like a private one.

[A]

Yeah, exactly. So it wouldn't have been forgiven. So Papa B wouldn't have done anything.

[B]

Wait, private?

[A]

They were for federal student loans.

[B]

Well, I had.

[A]

So this is owed to the college. This isn't even a debt in terms of student loan debt. This is. Biden wouldn't have done any.

[B]

I have one of those two, though.

[A]

Oh, okay. Well, let's keep going then. What is this? Would You Finance for 939.99?

[B]

Oh, that was my. That was my phone.

[A]

Okay, well, it's a zero percent, so that makes sense. And then we'll incorporate that into your phone bill. Typically, instead of writing that down, it's a separate debt. Okay, here's the mohila. Yeah. So this. This. This would have been forgiven, but it, you know, also wouldn't have been because it got struck down by the Supreme Court, so doesn't matter. Regardless. Okay, so student loans. So you own your motorcycle, right? Out.

[B]

Yeah, I owe my money.

[A]

And that's your only vehicle?

[B]

I have a 2005 PT Cruiser I got for my fiance.

[A]

Okay, so we can carry the kid around. I was gonna say, how do you do that on a motorcycle? $5,496.92 on the student loans. Thanks for letting us call your mom, by the way.

[B]

Yeah, of course. I mean, I'm not a lie. I was a little scared.

[A]

I was like, so you have this zero safety katana, so minimal payments are you making?

[B]

Not right now, I'm not.

[A]

Are you on a payment plan that says you don't have to, or are you just not paying?

[B]

I'm just not paying at this moment. I just found out recently. I got the email like, like within this month that says, hey, you should be paying it. And then all this time I've been sitting here thinking that it's been getting paid for.

[A]

Paid for how?

[B]

Because, like, like I. Like I said, like I had sat here thinking, my mom has been paying for my student loans.

[A]

I never looked at loans, not even the certificate.

[B]

And so that's why I was just.

[A]

Like, oh, what led you to believe that she was paying for it? Because she said a long time ago that she would.

[B]

Yeah. And I just never got.

[A]

You gave it to her saying, here, okay, here it is. Here's what you agreed. You gave it to her.

[B]

Yeah, Like, I set up the app on her phone and everything. And she said, yeah, I do believe you.

[A]

I do believe you. After that conversation, I. I do. Okay. Well, luckily, there is a little bit of a grace period. Interest is accruing, might be fees, but it's not negatively affecting your credit right now until this fall. And they're not going to garnish your wages until this fall. But if you don't start making your payments on there, they will start garnishing your wages this fall.

[B]

Even if I'm a contract worker.

[A]

Oh, yeah. Well, why would that matter?

[B]

I don't know. I was just like, how would they know I got my money?

[A]

Well, you got to report it unless you want the IRS to come get you. I record all of it. Well, there you go. There. You're good.

[B]

Yes.

[A]

And they would want you. Okay, come on. This is.

[B]

I do. I am.

[A]

Do you happen to you?

[B]

I do.

[A]

Oh, why are you on here again?

[B]

Because I don't. I don't know what to do with all this stuff and I don't know how you know how to. And then, you know, I think about the. The. Because I have seen the show, man. And I do think about. I'm like. I'm like, holy crap, man. I don't want my daughter to not be able to do cool stuff because I keep living paycheck to paycheck. Or me being stressed out says you.

[A]

Keep adding minimum payments to your life through terrible financing. Okay, well, we're almost through your statements. $363 in checking account is a terrifying thing. Disney plus for the kid. Kind of Amazon. Amazon go in the store getting some bull. Sweet treat of some kind. Going to store getting some. Oh, it was a NASCAR event. That one Great. Some in app purchase on your phone. Going to gas station getting some bullshit. A vending machine, a clothing company. $63 a y r gator vending. Going to a gas station getting some bullshit.

[B]

You're probably gonna want to know this, but the Ayr place is the dispensary. The Ayr is the dispensary.

[A]

Hulu not putting that in your budget, buddy. You. It's just going to store against the Hulu. Spotify. You can listen to ads when you're trying to get out of debt. It won't kill you. Amazon, Wendy's.

[B]

Man, I've had McDonald's since I was like 15 though.

[A]

Oh no. What like you get like a reward for that? Who gives a. It's not a. It's not an old sentimental car.

[B]

It's just hard to let it go.

[A]

No, you're not letting it go. You just listen to some ads after every few songs. Like an ad. Like a 30 second ad after like four songs. That's such a minor sacrifice. Going in a gas station, getting some. There's the dispensary again. Canva. Overdraft. We had a overdraft. You have a kid. You're missing two payments on credit cards. We have an overdraft. We're getting things at 36% interest and we haven't paid our student loans and we still owe money back money to a college. This is a mess. This is a mess. You're acting. Your finances are the finances of what a 10 year old would have if they could have access to debt and checking accounts and jobs.

[B]

See, the overdraft I already knew was going to come.

[A]

Then why the did you allow it?

[B]

Because instead of moving money over, I'm. Because I make sure that I save at least 13 to $1500.

[A]

No, no, no. You can go yourself real quick because you know why, buddy, we saw Wendy's like five times in there, the dispensary, all that. You were having this fun going into gas stations and getting some bull. You were having all this bull spending 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. Like it just. What hope is there in that case?

[B]

Well, I was kind of hoping you might be able to help me budget it in.

[A]

Oh no, no, no. You just said you've seen the show. Just stop. Stop being a little chicken. Just take it seriously for a second. You little.

[B]

I, I am. I am taking it seriously. It's just like have you ever seen.

[A]

Me budget in Wendy's when someone's getting out of debt and not making their bills?

[B]

Okay, no, not the Wendy's, but okay.

[A]

Overdraft, some fee and then another fee. Her business account. $310.

[B]

I don't feel too bad about that one.

[A]

Vending machine. Vending machine. Vending machine. Amazon doordash, more Disney Mobile. 80 bucks. Something high end florist in some flowers.

[B]

It was my fiance's birthday.

[A]

From a business expense.

[B]

Well, wait, can you not do that?

[A]

How's your business formed? Is it an llc? Yeah, what are you. So the LLC is more used as a pass through in general, but this starts messing it up. It starts getting messy at the end of the year when you are trying to do your taxes or a quarter by quarter basis, you're trying to figure out what you're able to deduct, what you're able to write off. What was business, what was expenses, all that. This is not a business expense. So it just starts getting confusing and harder. And then he went to a natural attraction, some Esperan lagoon and Chili's. Huh?

[B]

It was my boy's birthday.

[A]

Oh, another business expense. Good.

[B]

And then Chili's, they give you. They give you two beers off the rip every time. And you gotta love it.

[A]

And we know you love your substances and that's also a business expense. Right? Great.

[B]

Let's talk a business.

[A]

Brooklyn water, the bagel place. And then you doordashed again. So.

[B]

Okay.

[A]

You're so stupid, buddy. All the spending, so stupid. Then you have $5,000.

[B]

It's like, it's like close to six now, though. I'm confused.

[A]

You said about a third of it's meant for taxes, but by the end of the year, because I've already paid.

[B]

Because I've already paid two quarterly so far.

[A]

Oh, okay.

[B]

And then after each of my quarterlies are like 750. And then at, then after I go ahead and just. I pay from what my, my finance people told me is that I'm gonna end up paying after my quarterlies about $9,000. And so I have it estimated that if I keep saving, but if we.

[A]

Only got to like 10,000, $5,000 halfway through the year, that means you'll be like $10,000 by the second half of the year. Meaning that 9,000 hours would only give you a remaining $1,000 for your emergency fund. That doesn't make any sense.

[B]

No, I should, I should have more because I'm. I'm saving about $1,700 every month.

[A]

No, with. No with where you.

[B]

Cuz I'm. Cuz I'm making sure that I'm taking.

[A]

No, but with. First, first of all, no. Yeah. Okay, so you're. Yeah. But then after quarterly though, some of it goes away. And then after that we're halfway through the year, buddy. We're almost halfway through the year. You got $6,000. So that gets you on track of having $6,000 per half a year, giving you 12,000 hours by the end of the year after the quarterlies. And if you have to pay an additional $9,000, it gives you $3,000 for an emergency fund. Does that not make sense? That's how your math is lining up. I can only go off the numbers that are given in front of me. Plus you're actually saving up for this quarter's the taxes anyway. So it's going to be taken off. I think you save about a quarter after the tax is paid, only to go towards the $9,000. About 3,000 now. 2,500 to 3,000 hours a quarter on the high end of extra. Yeah. So I don't think you have the money left. You said a third of it is for taxes. That can't be true. Mathematically that can't. That, that can't be true.

[B]

Cuz see at. I did originally into the mic seven. I did originally have like 7,000 something dollars but like you know, I've already gone through two quarterly.

[A]

Exactly. So I'm saying after quarterlies. I'm looking at the trend after quarterlies and where you are. So you, you're not taking that in account.

[B]

I have actually the. With the amount of money that I'm saving, I'm estimated to have about 14k. Because if I'm saving $1700 a month.

[A]

Okay, let's say you have 14k. That means by the end of the year your emergency fund would be 5,000.

[B]

And that would be great. That's kind of like what I'd love to have.

[A]

Okay, but you said a third of this was for taxes and that doesn't line up. And I'm being generous with you saying you get to 14 because on track right now you could be on track potentially maybe. I don't know. Because you still have the quarterlies for this last quarter to be taken out and you're not there. No, for the quarter we're in now.

[B]

Yeah, I did, I paid it one month ago. We.

[A]

It would pay in June.

[B]

You've paid Q. Yeah. Q2 already.

[A]

Okay. So yeah, 13, 14 could be, could be possible, but it's certainly not a third.

[B]

That's kind of why I've been ignoring it the whole time because I was.

[A]

Just like what is this high yield savings account if there's a 2.50 cent fee?

[B]

There is. No, no, no, no. That Wasn't a, that wasn't a fee. That was when I was paying the, the treasury that, like when you pay taxes, it like charge me two something dollars for that, but I don't, I don't think they charge any fees for having the money in there.

[A]

Okay. I hope not, because that would just essentially avoid the purpose of having that interest in there. Yeah.

[B]

And the gulagoon I did. I just didn't want to take it from my.

[A]

It's so weird that you are not making payments. You have put your, your, you, you're, you're just. This is one of the weirder financial situations I've seen. It's really weird. Let's get you a budget because I.

[B]

Don'T think you need to be.

[A]

I don't know, you need to be so much more intentional and smart with your money. Okay. Income. What comes in after taxes on a monthly basis normally. Okay, so what, we had payroll, $5,000, but you set 30 aside for taxes is what you should.

[B]

Yeah. Like, I'd say, like I get. Each paycheck comes out to be about, like, I typically try and get them to come out to 2600.

[A]

Okay, so 5000 hours. 5000 hours. 70% of it. So let's say like 35. 3500 is your actual usable income on a monthly basis just based on the numbers we have in us, front of us.

[B]

Because like, not because like I.

[A]

If you're setting the right amount aside for taxes to be safe, it might be a little overdone, but I think I.

[B]

Because I think I'm putting away like, like 18 to 20%.

[A]

Okay, well, the income you had come in before taxes was just under 5,000. So I'm saying you set 30% aside of that, leaving you 70%, which is 3,500.

[B]

Okay, that just looks like a lot less than I feel like I have.

[A]

Maybe you're not putting enough aside. Maybe you don't know. I don't know. Maybe you can set 25 aside. But.

[B]

Yeah.

[A]

Well, you've also never budgeted.

[B]

That is, that is true. I, I am what they call mentally. Okay, what's your and financially on that.

[A]

Part and what's your rent?

[B]

My rent is 1470 for a two.

[A]

Bedroom, one bath, utilities.

[B]

I don't pay utilities because baked in, my fiance's cousin sleeps on our couch. So he pays you Internet.

[A]

So him.

[B]

For the Internet. Internet. I do pay. I pay about 70 bucks.

[A]

Oh, kind of expensive.

[B]

Yeah. This is like, you know, I do I t. And stuff and so got to make sure I Have a good connection.

[A]

Google fiber gigabit is like 35 bucks.

[B]

I don't have fiber in my place so I've kind of just like screwed.

[A]

With what I have renters insurance.

[B]

Renters insurance. I don't have that charged into my.

[A]

What's your total phone bill?

[B]

It is a hundred and twenty five dollars.

[A]

When you pay that phone off, switch to helium. It makes so much more sense. Same towers. 20 bucks a month. There's no reason not to Gas. Vroom vroom. Drive, drive. For, for your wife's car and your car.

[B]

I'd say like, I'd say like 60 bucks. I only really need like seven or eight dollars for my, for my motorcycle and then her. It's a PT Cruiser, man. So it's like car insurances. Car insurances for both the motorcycle and the car. I'm spending like 230 for both of them.

[A]

Okay. It's not thrilling. TP fund. Anything else you need is 5 because of baby. It's gonna be. I'm gonna go more 175 actually because the wife, she doesn't make 200. Okay. Yes. Food necessities. She mostly drinking these days?

[B]

No, no, she's on. She's on formula but she's, she's on the track to get off bit soon so she's drinking a lot less.

[A]

Okay. Groceries. I wonder. I think we could do 600 again. When you go through the program and you really build your own budget, you're. You're really going to get it more official. But I think we could do 600 there anything medical?

[B]

Like I have health care. Well no, right now we're, we're on government insurance. So like they're paying for it I think.

[A]

And there's nothing that you have to.

[B]

No, not you know that's going to.

[A]

Go against your taxes as well.

[B]

I did refer realsies. Why did they offer it for free then?

[A]

Well it, it kind of offsets it.

[B]

Huh.

[A]

You're talking about the affordable health care exchanges?

[B]

I. I think so. I was paying for. For. For private insurance before but it was just too expensive to.

[A]

Well you are right now it's a subsidized to the government. Unless. Are you saying you're on Medicare? Medicaid?

[B]

Yeah, I think so. Cuz it says like you know, zero monthly payment. I just have.

[A]

Well that. Okay.

[B]

Okay.

[A]

Who's your healthcare provider?

[B]

I don't know. My fiance knows that kind of stuff.

[A]

Okay, well that's not helpful. Jim.

[B]

Yeah, I go to LA Fitness.

[A]

How much?

[B]

$55 and then Jiu Jitsu Gym for $125.

[A]

Do you have to do that one?

[B]

Yeah, dude. I love it. I love, I love to do that stuff.

[A]

Okay. Let's see if it fits in the budget. Cuz I love isn't necessarily something that needs to be in a budget. I'm going to allow Disney plus for the kid. What is that like 20 bucks?

[B]

I, I got the, I got the, the triple bundle thing. So like I'm paying basically like 20, 25 for three services.

[A]

Yeah, that's what I thought I saw. Okay. 25. Do I allow that? I'd allow the Disney plus for the kid. Isn't the ad version like eight bucks? We're going to do that kid won't even know it's watching commercials.

[B]

You really want to stop my kids bluey time though.

[A]

$8, let's say. Okay. Anything else you need to survive? What about co pays for medical stuff?

[B]

So far I haven't seen any co pays.

[A]

Would you even know?

[B]

Honestly? No. I said I usually send my fiance.

[A]

You. You guys need to get aligned on money. She should be here. Honestly. You guys need to talk. You need to figure out what your goals are, what you're trying to do. Your rent's way too much for. Well, it's on the edge of too much for sure. Just over. But like you need to know what is coming out when she's out and like what's being spent on medical and all this stuff. What your situation is. Good news is you do have left over after you set aside for taxes 2943. But of course take that from the 3500ish every month. It will be up and down a little bit, but you should have an extra $557 left on average based on what we have.

[B]

Sounds about right. Because that sounds about how much I'm trying to put away.

[A]

I do want a one month emergency fund. I want your emergency fund and tax account separated though to do two different savings accounts or at least two different buckets if they can do buckets in that. I think you're in the affirm. Yeah. Okay. Because it's, it's really Messy. Set the 30% aside for taxes. Maybe 25%. Probably 30% of what you're doing with health insurance. We don't 100% know. But be aware of a potential bigger bill at the end of the year that you're not aware of. Could also be a reason why he's having you set aside an additional nine on top of quarterlies. So you can probably take from that Tax account with where you are, $2,000 of it, I think 2,000 into savings. Put that in another savings and keep the rest for taxes.

[B]

Okay.

[A]

What you need to survive is $3,000 though, and I want you to have at least one month emergency fund. So what we're doing for two months, the first two months of this process, okay. Is we're throwing that into the savings and you have just over a one month emergency fund. Okay. From there, student loan payments, by the way, I didn't calculate that. They're probably going to be something like 75 bucks. So we got to add that in as well. So you actually need 3,000 to survive just about. Because of that, we're gonna do some rounding on that part. Gonna do. It's about 490 left on a monthly basis now.

[B]

Oh no.

[A]

Because you need to start making those student loan payments because they are going to start negatively impacting you once that grace period ends. And that's coming up very soon. You all got to use my favorite high yield savings account where you can get up to 4.6% on your money plus FDIC insurance up to $2 million. You can also get up to 300 for signing up today. It's the personal high yield savings account that I use for my money. So don't let your money be low losing money while it's just sitting there. Click in the link in the description below and get those bonuses. Oh, this is, this actually isn't even that hard, man. Your 10 is even in that crazy. You're just insane with it. You're just so stupid with it. Of course I'm not putting your budget.

[B]

It's just like how, like where? I guess like I'm not seeing what you're.

[A]

You have an extra 490. You have a one month emergency fund after two months. So okay, lovely. You're literally able to pay off bank of America in two months. So by the end of month number four, bank of America cards paid off the affirms bad interest rates. Those are paid off an additional three months. So we just completed month number seven going into month number eight. Month number eight, let's pay off the college in two months. At that point with the extra money we have left over from paying off the other cards. So we have left over money on a monthly basis. Now just completed month number nine headed into month number ten. Month number ten, this is where we tackle the Amazon card. That's probably gonna be about 4700 by then because you're only doing minimum payments. But you're also not purchasing on them. If anything I'd actually close the accounts. But you probably have an extra just about.

[B]

Oh, you're gonna eat this. Is that gonna negatively impact my credit if I.

[A]

One second, we can talk about that in a second. That'll take about seven months to pay off. We just did nine, so that's 16 months. Yeah, almost a year and a half. It's not bad. Student loans had minimum payment till they're paid off and the minimum payment's only 75. So with that, that's actually pretty okay. And at that point you have an extra like almost 700, basically 600, 700, maybe 750 left on a monthly basis. $2,000 in an emergency fund. Let's get you to. Because you brought down your debt payments. You know, I'll say this and people have already realized it because they've been watching it. This is live to you and me, not to everyone else that are able to think through things a bit more. But I did a dumb and didn't put your debt minimum payments in there. So it's actually going to take twice as long. Minimum payments were not put in the budget and that was my fault. I just missed that somehow. So it's about three years. Three years in your debt free other than the student loans. But three years also really isn't that bad. Just take the numbers I gave you and essentially just times them by two and that should work, should work, but it's still not that bad. And then at that point then you really have an extra like $500 off on a monthly basis. And we're going to do a 18,000 hour merchant fund as a six month emergency fund for you minus the $3,000 you already have in there. Divide that by the 500 you have left over on a monthly basis. Takes another two and a half years, five years to have a fully funded emergency fund and pay off all your debt. I'd rather you go quicker than that. And you can go quicker than that by also increasing your wage because through, you know, the certification you're doing now, getting the one you already have on your resume, uh, maybe the one I gift you as well. Shopping around, job shopping. You, you haven't been there very long.

[B]

Yeah.

[A]

So you need let's you know, show that we've been at a job a little longer and obviously use the one you had previous for your resume as well. But now that we know you're on the lower scale at least again, Texas, you know, Florida could be a little different. Maybe it's A little lower there, but let's, let's pretend that you're still just on. Maybe it's a little higher there or maybe the average wage is a little lower there, but you're still on the lower end of the scale. Probably.

[B]

Yeah.

[A]

You know, increase an extra few bucks an hour, you know, buy a better job getting some raises. With that, you accelerate this process dramatically. I really think this could be a total of a three to four year process instead of a five. But you do have to budget. You really do have to budget. And at some point it'd be great if she could bring in money. It's not necessarily required, but it'd be great if she could. Even if it's just a couple, you know, just like a part time job on the side every once in a while. It's. You guys are 25. The kid can't form concrete memories until they're about 3 anyway, so you may as well grind it out now. Get. If you both grind it out, if you work even more hours, if you get a part time job, the more money you make, the better you can budget and cut down and stop the smoking as well. It's. The more you do that, buddy, in two to three years, if you really go hard, you could have it, you could have it dealt with. You also have to just at least make your minimum payments. And you're not doing that. And that's what scares me. Your behavior is what. It scares me.

[B]

So. And I get that we just did this budget, but. But I would. I kind of did have a plan to go on a cruise this August with my fiance because like, you know, we're engaged. We don't really get to do much.

[A]

First of all, you guys just went to Universal. That is something. It's more than a lot of people get to do. More than I got to do until I was like into like late. High school is like, you know, a kid with my family. Well, you guys aren't even married. It's not even in a honeymoon.

[B]

See, but it'd be nice to just like, you know, just go, go on a cruise.

[A]

Oh, well, go, sure. Go to the courthouse and get married. But you guys can't afford that right now. Again, this is a sacrifice for your future. It's a sacrifice for your kids future. It's. I wouldn't do it. You haven't bought it, right?

[B]

No, I haven't bought it yet.

[A]

Okay. That would have been the main concern. Gosh, normally I'd yell at that, but my throat hurts and it's as I've. I've just.

[B]

Oh, so whatever.

[A]

I'm already kind of defeated from your lack of payments and just your behavior in general. So it's just like. I just don't know if any extra going into you would even help, to be honest. You should know that that's bad. I hope you know that that's bad. I hope you don't do it. I hope you're an adult for the first time in your life. You act like a man, you act like a partner, you act like a dad. You act. Just be an adult. Finally. Don't do it. It's dumb. So. No. So your question is denied.

[B]

Okay. I can accept that you won't go on it.

[A]

Yeah, yeah, yeah. Thank you. Okay, well, there's a win to end this. Think. Think. Spending on budget. Spending was. Spending was bad. Wasn't the worst we've seen. Let me look at the pie chart.

[B]

See our categories, and I could cut back on the.

[A]

Yeah to zero. Going out to E300. It wasn't good. Miscellaneous 539. That's definitely not good.

[B]

God damn.

[A]

Yeah, so maybe don't do that. Debt was so insignificant, it was only 1.5%. Weird thing. We actually had to stop you from smoking before coming on. You were like, oh, please, Mr. Producer, Mr. Noah, let me split up before we come on. And it was like, is he allowed to smoke before? I was like, no, no, just calm down, dude. You don't need to smoke in every second of your life. Legitimately, though, I know there's actually been more conversations because it was always among the conversations that, no, it's not addictive, and stuff like that. And then now it's becoming more a part of the conversation. There's, like, people who have, like, found themselves, like, it's become like a major part of their life. And they're like, wait a second. So if you need help, reach out. Help. If you need resources, we're happy. I'm happy to connect you with them. We're happy to connect you with them. Spending their budget. It's going to be a 3 out of 10. Because those percentages just wish more went to your debt, obviously, but the percentages themselves weren't the most outrageous thing in the world. Debt. One of them's in collections. That immediately brings your score down to a 0 out of 10. That college thing is it. Well, it's internal collections. Internal collections. Maybe you're missing the payments. The debts are honestly not the end of the world. What's the end of the world is you're not paying them. So the debt you have itself, the score of the debt I would say is a 3 out of 10. But because you're not putting the money towards it and paying your that's going to bring your spending in a budget to zero out of 10. Because you're not budgeting correctly, you should be paying your minimum payment. So they just kind of swapped. Emergency fund you have started. It's confusing with work. Let's go into taxes. Let's go to emergency fund you started. It's a low. You're hoping to get somewhere by the end of the year. I'm going to give it a 2 out of 10. Retirement no. 0 out of 10. That's stupid. Best years of your life for Comp of growth real estate. 0 out of 10. That is going to be a Hammer financial score 1 out of 10 make sure to check out the resources linked in the description below. They are what I use or would use in specific situations, including our brand new Best of the Class Best of the World Best in the history of the Internet investing program that you get for free by taking it because Moomoo gives you a hundred dollars worth of free stocks that I personally chosen because they're the ones I invest in. So make sure to check them out and stick around for the Post Show. Today on the Financial Audit Post show.

[B]

The way I was seeing it is like I already got some land and out out in like another country. Create a.

[A]

You said something that sounded almost good for a second and then you went complete insane again in another country. What other country?

[B]

Honduras.

[A]

Okay. How are things going in Honduras these days?

[B]

Not so great actually. They have a narco president and he just got arrested recently. A lot of violence. Probably one of the most dangerous places for women. But you could do what you want with your land, which you can't do here.

[A]

Yeah. Until you're a woman on that land. Right. To watch the Financial Audit Post show, click the join button below.