Ignorant Woman Making Me More Stupider

Summary

Podcast Summary: Financial Audit with Caleb Hammer

Episode Title: Ignorant Woman Making Me More Stupider
Guest: Eve, 22, Colorado Springs / Omaha, Nebraska
Date: March 15, 2024

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Overview

This episode features Eve, a 22-year-old tech support worker at a bank, whose finances and life have spiraled due to a convergence of personal trauma, divorce, questionable family financial wisdom, and a pattern of coping through spending. Host Caleb Hammer walks through Eve’s complex financial situation, challenging her justifications for poor money management, illuminating the roots of her financial woes, and pushing her toward actionable steps—as well as a wake-up call about the consequences of her current trajectory.

The conversation is candid, raw, and occasionally confrontational, mixing practical advice with tough love. Caleb repeatedly steers Eve away from destructive financial myths, particularly her belief that things "could be worse" and that debt is manageable as long as it keeps immediate crises at bay.

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Key Discussion Points & Insights

1. Eve’s Life Context and Mental Health ([00:10–03:00])

• Eve is recovering from a traumatic marriage, abuse, and a suicide attempt.
• Divorce and medical/mental health leave significantly impacted her finances and mental stability.
• Admits to substance abuse (alcohol, nicotine) and a pattern of impulsive spending, especially under emotional distress.
• Eve acknowledges:

  "I was kind of spiraling mentally. I was like, well, my life’s f*cking over, so who cares?" ([02:05], Eve)

2. Income, Spending, and Lifestyle Choices ([00:22–02:40]; [06:34–07:42])

• Eve makes roughly $46k base pay, $60k with benefits (though that includes insurance and bonuses).
• Split from husband led to loss of dual income; lifestyle/spending hasn't been cut to adapt.

• Caleb: “You have every debt that’s ever been…you spend almost double what you bring in.” ([01:17], Caleb)

• Divorce and being "on the road" led to fragmented spending and reliance on credit for emergencies, housing, and even legal fights.

3. The Mountain of Debt ([03:07–07:00]; [08:00–38:00])

• Caleb counts 24 individual debts across credit cards, personal/consolidation loans, medical bills, and family loans.
• Eve (and her ex) normalized use of credit cards for emergencies and day-to-day spending, spurred by college recruiters, family advice, and even her own bank’s culture.

• Eve: “I was told that you should try to keep pulling out credit cards until you get to like $15,000.” ([08:34], Eve)

• Family, ex, and mortgage brokers reinforce a dangerous "it could be worse" mentality.
• Many debts carry high interest (10–30%), some are on temporary zero-interest offers, but many payments are stacking up.

4. Justifications, Coping, and Bad Advice ([08:34–19:01])

• Eve defends credit as a “safety net” and leans on special offers as “justification” for new spending.
• Justifies spending on “wants” (e.g., Olympics trip, merchandise) even during financial distress.

• Caleb: “You’re going to destroy your life.” ([19:01], Caleb)

• She’s tempted to buy a condo despite obvious financial red flags, based on family recommendations and a mortgage broker minimizing her debt.

• Caleb: "If you're even considering putting a credit card payment on another credit card, buying real estate is not in the picture." ([15:26], Caleb)

5. Bank and Industry Culture ([17:04–17:41])

• Her job at a credit card company encourages customer spending, deepening her own unhealthy perceptions of credit.

• Eve: “If they want it, figure out how to get it for them…How can you help the customer spend?” ([17:24], Eve)

• She's internalized these business strategies, admitting: “I absorbed a lot of that, too…”

6. Family and Social Influences ([11:32–20:05]; [33:49–34:05])

• Eve’s family, friends, and even colleagues perpetuate unsound financial behavior (“just keep pulling credit,” “as long as you pay rent, don’t worry about the other bills”).

• Caleb: “Your family is an enabling, dumb…they’re stupid [financially].” ([25:59], Caleb)

• Defensiveness persists—she compares herself to worse-off friends and family to feel better.

7. Rationalizations, Moral Hazard, and Psychological Distance ([37:33–38:23])

• Eve distances herself morally from debt ("they're just a faceless company"), fueling her willingness to default if necessary.

• “I work for a bank and I see what they do to people. So I was like, why should I care about them?” ([37:43], Eve)

8. Attempts to Fix It—But Self-Sabotage Continues ([40:00 onward])

• Eve is trying to fight several legal battles (divorce, apartment fees, roommate assault) with limited financial and legal resources.
• Second job and side gigs barely make a dent; spending on “wants” (Olympics, going out, hotels) continues despite urgent debt obligations.
• She auto-pays debts without really knowing her minimum payments or overall budget; real savings are depleted.

9. Breaking Down the Math ([62:12–67:14])

• Caleb and Eve determine her “minimum to survive” expenses are ~$3,048/month, nearly equal to her net income.
• Minimum debt payments alone: $979.97/month.
• She’s “breaking even”—but only by treading water with no buffer, emergency fund, or debt payoff plan.

• Caleb: “You need to work as much overtime as possible. If that second job isn't giving you enough hours, get a different second job." ([63:36], Caleb)

10. The Way Forward ([67:14–end])

• Eve’s justifications and information sources are exposed as toxic.

• Caleb presses her to stop listening to anyone who isn’t financially literate and to commit to the budgeting program he provides.

• Only with more work hours, strict expense-cutting, forgoing big wants, and education can she dig out of her situation.

• Caleb: “If you keep kicking the can down the road and you don’t sacrifice now, it’s going to be long, it’s going to be painful, it’s going to be stressful, it’s going to be bad for your mental health. You’re never going to have enough money to retire. And it’s just going to be bad.” ([64:05], Caleb)

• Final Hammer Financial Score: 1.5/10

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Notable Quotes & Memorable Moments

• On credit cards as a “solution”
  Eve: "Well, there's a lot of times that the credit came in handy." ([09:32])

• On family influence:
  Caleb: "Your family is an enabling, dumb...they're stupid financially, financially they're stupid." ([25:59])

• On justification for buying a condo:
  Caleb: “Buying a piece of real estate is not in the picture. I’m sorry. Trust me. I want you to have it...but you can’t afford to survive.” ([14:41])

• On the illusion of being ‘not that bad’:
  Caleb: “Bad is bad is bad. It doesn’t matter if something’s worse. Bad is bad.” ([16:09])

• On hiding from reality:
  Caleb: “It’s a lot of putting your whole head in the ground hiding from it.” ([59:05])

• On the necessity of personal responsibility:
  Caleb: “Educate yourself. Inform yourself from reliable sources. The ‘I've always been told’, that's done. Just to be clear, that's done with your life. No more urban myths.” ([51:21])

• On mental health and financial improvement:
  Caleb: “You are so young. You have so much life to live. Imagine you giving up at 22. What is 40 year old you going to think?” ([06:42])

• On the dangerous temptation to ‘just walk away’:
  Caleb: “If I just stop paying the credit cards, I won’t have to worry about it.” ([36:27], Eve)
  Caleb: “They could litigate back. Legally speaking, they could. These are small balances, so I doubt they would, but they could.” ([36:38])

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Essential Timestamps & Segments

• [00:22–02:40] Eve's background, income, job, divorce
• [03:07–06:34] Debt tally, family dynamics, substance abuse admissions
• [08:34–10:12] Origin of credit card use, influence of college recruiters
• [11:32–19:01] Justifying drug use, bad family/institutional advice, failed attempts to reign in spending
• [24:64–28:46] Details of debt mechanics, payment strategies, absurd interest
• [33:49–34:05] Family loan dynamics and paying relatives
• [37:33–38:23] Moral hazard, working at a bank, obligations to creditors
• [40:45–41:49] Medical bills, legal strategies post-divorce
• [46:01–47:11] Eve’s budgeting habits (or lack thereof), emotional avoidance
• [62:07–66:44] Budget breakdown, minimum survival math, need for more income
• [64:05–end] Strategy to escape: overtime, new jobs, cutting expenses, financial education

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Conclusion

This episode is a cautionary tale about the cumulative impacts of trauma, misinformation, and normalization of debt—bolstered by both family and employer. Caleb’s tone is urgent but ultimately supportive, emphasizing that while Eve’s situation is dire, the math is simple: drastic measures are needed immediately. His insistence on personal responsibility, education, and sustained, painful sacrifice is set against the plethora of excuses and distractions Eve presents. The central message: stop running, face facts, and take extreme action now—or the financial and life consequences will be severe and lasting.

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For listeners in similar circumstances:

• Stop comparing your situation to those “worse off” as justification.
• Credit cards and borrowing are not valid substitutes for emergency funds.
• Family and even professional advice may be dangerously wrong; verify from expert, objective financial educators.
• Budget honestly, cut wants, and prioritize stability over immediate comfort.
• Mental health and finances are deeply intertwined—get help in both.
• Sacrifice now for a future you’d actually want to live in.

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Transcript

[A]

You should try to keep pulling out credit cards until you get to like 15,000. What the.

[B]

Told you so.

[A]

It was a family recommendation.

[B]

Oh. Oh, you're gonna destroy your life.

[A]

Hi, my name is Eve. I'm 22. I'm out of Colorado Springs and Omaha, Nebraska. And this is financial audit.

[B]

What do you do for a living in two very different places.

[A]

So I work from home doing tech support for a bank.

[B]

Oh, very cool. What are we making in this position?

[A]

They just gave us a raise. So my base pay just went up and I get a 10 shift differential. So it's about 46, 000. Just base pay and then with benefits up to like 60k.

[B]

What do you mean with benefits? Bonuses or you mean bonuses and then.

[A]

Also my insurance, like, they consider that part of my compensation.

[B]

Yeah, no, absolutely. I want to make sure I understand what money's coming home. Because you essentially need a raise. Like with your spending habits, you need a raise. It's really not an option. So we went from a raise up to, well, what do you think is going to be hitting your account on average on a monthly basis?

[A]

So that's kind of. It's kind of weird. So I, I get paid weekly, but the way that the last few months have been, I kind of have like, no gauge of what's coming in because.

[B]

I mean, that's pretty clear just within your overall. I mean, you have every debt that's ever been, like, but regardless of the debt, you spend almost double what you bring in.

[A]

And it wasn't as bad when there was two incomes.

[B]

Okay, so marriage.

[A]

Yes. And now active divorce process.

[B]

Active divorce process. Currently in that. Okay, how long have you been in the States? So, okay, so obviously, when did you guys split up?

[A]

August of last year.

[B]

Okay, so August of last year, you know, it's been a little bit. Why haven't you cut down lifestyle? Because that's kind of as much as it sucks. And I'm not like, oh, you, you got divorced, let's punish you. No, but there's also just basic math.

[A]

Well, I was also on a medical leave and then I was in Colorado trying to get some things squared away. I was trying to do treatments, trying to figure out my life, and then also kind of spiraling mentally. I was like, well, my life's f. Cking over, so who cares?

[B]

Because of divorce?

[A]

Yeah.

[B]

Okay, so you started to give up on everything.

[A]

Yeah.

[B]

Like, when have you decided that we're not giving up, though? Because it doesn't seem like you're there right now.

[A]

So just recently going Back to work. Like, realizing that it's not over, because for context, we started the divorce after a suicide attempt, so.

[B]

Oh, gosh. Of yourself. Oh, yeah. Of. Okay. Wow. Now I understand this was a potentially abusive situation.

[A]

Yeah.

[B]

Okay.

[A]

So that's why I ended up, like, going back and forth between, like, Omaha and Colorado. So there was a lot of, like, spending on the road and, like, being all over the place and just, like, mentally trying to, like, cope. Like, oh, you know, like, I tried to be responsible and it didn't work out, so.

[B]

Oh, you're spending. It's not the ridiculous part. The ridiculous part is we have 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24 individual debts.

[A]

But you have to remember it's like, two people, because I was taking out.

[B]

Well, which ones are under. You were taken out for both of you?

[A]

Yeah.

[B]

His name was on nothing in the marriage.

[A]

There was two cards that he got because I didn't trust him having control over some of the accounts.

[B]

Jeez, how long was this relationship? Like, you didn't trust him to oversee a financial document at that point? At that point, I'm like, it, like, I'm out, you know, And I tried.

[A]

I tried multiple times to divorce him. And, like, for context, like, we.

[B]

Did you file charges, Call the police back?

[A]

After he talked me out of it.

[B]

The first time, If I called him regarding all this and talked to him, what would he say? Because I do believe you, because you're the person sitting here. I'm not going to just be like. Like, just say I don't believe anyone or anything like that. At the same time. There's always two sides of a story. Abuse is in no way ever excusable. But in his mind, you know, I feel like. I don't know. What would he say?

[A]

Well, I can't sit here and act like a saint either, because, like, there was also issues of, like, my own substance abuse and issues with impulsivity, because, like, that's a key characteristic of, like, boy, borderline.

[B]

And what's your substance abuse?

[A]

Alcoholism, and then both of us nicotine.

[B]

Where are you with any of that today?

[A]

There are still some lapses with the alcoholism, but that was a big part of my treatment last year, and so I did an extended stay. The involuntary.

[B]

Okay, so, okay.

[A]

The hospital was a lot better than the first hospital.

[B]

When was your last relapse?

[A]

Probably about three months ago, kind of. My issue is, like, throughout my life, like, blackout drinking every single time. So just constantly, constantly, just.

[B]

Were you able to get on the wagon pretty quickly? Again.

[A]

It just depends on when the lapses were happening because, like, especially like in the winter, like a lot of like seasonal depression issues and then like being isolated from family because we were so far from Colorado, because we're both from Colorado.

[B]

What was the medical leave for?

[A]

Because of a lot of stress. Transition. We were first moving to South Dakota. I got a new position. I got overwhelmed and I was going to quit my job, but my manager said, hey, don't do that. Here's a program through the company. So that's when I was introduced to like, oh, I can step away if I need to. And then the second one was because I got assaulted by my roommate in South Dakota.

[B]

Did you press charges there?

[A]

Talked out of it. They're like, they're going to. The big thing was, is like if you press charges because they were both in armed security, like that's their background. So if I made a report, they would lose their gun rights.

[B]

Good.

[A]

It's, it's kind of a tricky situation because it's like I, you know, I don't want them to lose their gun rights.

[B]

Why?

[A]

Well, a lot of our spending was on firearms.

[B]

Again, I want to ask before we go into the financial situation, what are you trying to get out of this? Because, I mean, there's negative people online at all times for any creator. Some people say, oh, I'm taking advantage of someone in a with mental health issues in this kind of conversation and I want to make sure that I am not. I want to know what you want to get out of this conversation. How can I be beneficial to you?

[A]

Well, you're kind of like my last ditch ever before I just say it and blow it.

[B]

No, no. Blow what up? What are you going to blow up?

[A]

Give up yourself. Quit my job and say it.

[B]

Don't ever give up. First of all, if you give up your job, we already talked about that. You already told me, I mean, you lose the benefits that you need to survive mental health. I will call out the bad. I will call the bad. I will give my recommendation, I will build the budget, give my thoughts on your income situation and give you a broad, large picture and then connect you with resources after the show. That's what happens every time. I can do that. But me being your last ditch effort, I mean, you have to walk away from this and put in the choices. I can't make choices for you that it's not worth giving up. Plus, I mean, you're 22 you are so young. You have so much life to live. Imagine you giving up at 22. What is 40 year old? You going to think you've ruined your 40 year old self at that point?

[A]

So how do I untangle this mess? Because at this point it's like that seems like the only option.

[B]

Let's go into your finances. But first hit the like button. Hit the like button. Oh, it really helps support this video. I'm assuming you'd give yourself a score of zero out of 10 finances. Right. And like, what would you say? Sorry, I don't want to speak for you.

[A]

I mean, maybe a one.

[B]

Okay, well, just. All right.

[A]

Compared to like other people I know, like I could be homeless in a car. Could be worse. Could be a lot worse.

[B]

Yeah, there's lots of disqualifiers in my score, but if you want your Hammer Financial score, link in the description below. It's free, it's fun. We got PayPal, PayPal, PayPal Credit, and MasterCard. Okay, we're owing $330. Now the crazy thing that yes, the car is a big balance. There's a couple of big balances, but most of these are pretty small. There's just so many individuals and the minimum payments is absolutely. Obliterate your life. Obliterate your life.

[A]

Well, I was told that like you should try to keep pulling out credit cards until you get to like 15,000.

[B]

What?

[A]

Just trying to figure out like some Internet forms, like when I was in college and then like a college.

[B]

Tick tock. What have you done?

[A]

Well, to be fair, it's the recruiters that sit on campus because like that's how I got my first credit card.

[B]

Wait, whoa, whoa. The people with like the little credit booths?

[A]

Yeah.

[B]

Oh, them, them, those stupid pieces of sh.

[A]

They're like, oh, like you only make $11 an hour here, pay rent and groceries on this card.

[B]

Kill me right now.

[A]

And I was like, okay, if you're willing to give me money, I'll take it.

[B]

Have we at least learned our lesson? That that is bad. What? What do you mean? How is that not an instant? Yes. Have you seen the stack that is in front of me? Yes, you have. You sent them my way. How is that not an instant? Yeah, opening all these credit is bad.

[A]

Well, there's a lot of times that the credit came in handy.

[B]

It's because you didn't have a fully funded emergency fund. That was, that was your choice of the finances of you choosing to rely on credit cards instead of ever cutting down building a fully funded emergency fund. And that would have replaced that situation. That's why you times that I did.

[A]

Have an emergency fund and then the.

[B]

Timing was your max emergency fund, 6,000 between. Well, that's certainly not enough because emergency fund it is. Six months of what you need to survive or 10,000 hours, which everyone's higher.

[A]

But I like 21 and like, well.

[B]

You work to get there. You work to get there. No, no, it's not magically going to appear in your account, that's for sure. I just don't like the mentality of relying on a credit card.

[A]

Well, it was just like, it's just all about like timing. Like, I feel like credit can save you from like changing your due date and like, okay, use it to get away from, hey, I'm going to be homeless if I don't make this.

[B]

Of course. Absolutely. And they're, they're okay. Yep. There's, I mean, there's nuance to everything. And that is a valid point. When you're going through that process of building up your emergency fund and something happens and you have to pay for it. Yeah, you go into debt. But what do you do then when you go into that debt? That's when you cut back on everything to pay it off as quick as possible and then continue that journey towards a fully funded emergency fund. But you didn't do that. You just continued the spiral of debt instead. So, yes, that's going to happen. That is going to happen. Like a car breaks down randomly. We have a lovely dog under this table right now that I've become best friends with. Hopefully I just knock on all the wood possible, you know. Do you have pet insurance?

[A]

No, but there was times that like, we got in a little stitch with our other dog.

[B]

Okay, well, if you, you know, if something medical happened, you would probably pay for it and that might max out a credit card because no one's gonna let their pup get hurt. I wouldn't. I have to. I love them. Just they are my world. In that case, okay, that might go on debt, but then you sacrifice everything in the world to pay off that debt immediately. Sacrifice wants, not needs. I'm not saying go live in a.

[A]

Box, but when you're in a two person household and there's a conflict about what's the best way to do it, that's where a lot of the issues like stem with the finances. And that's why I kind of took over with like, I'm going to be the one that manages it. I'm going to make the final decision. And he had Two credit cards in his name, one for his own personal emergencies and one for his rifle.

[B]

Yeah, I. I don't think that fully justifies what you said specifically, but it.

[A]

Was just like, his mentality about, like, it's not an absolute emergency until, like, somebody's banging on the door. Okay, so, you know, if nobody's.

[B]

But is that your mentality?

[A]

At one point it was, because it was.

[B]

But is it now? I don't care about was.

[A]

I care about to the point. That's like, I'm. I'm realizing that, like, it's starting to catch up to me.

[B]

Like, understatement of the year. Okay.

[A]

Yeah.

[B]

Purchases, $148.52, then $5 and 16 cents of interest.

[A]

Oh, come on.

[B]

Freddy's and spaghetti works. Some PayPal purchase.

[A]

To be fair, the PayPal merch, maybe when I got back into watching the.

[B]

Show, why I specifically say on every merch thing, man, I would love you to buy my merch, but it's been.

[A]

A time drop, so I was like, oh, well, it's only a little.

[B]

Oh, I was afraid with that. I was afraid with that. Because we have to have so many ideas that the limited. It does. I was afraid with that. I was afraid with that. That was one of my questions that I dealt with in that situation. And that's. That's this. That's the dirty money merch, which isn't available anymore.

[A]

And the irony is, that's the same sticker I bought.

[B]

It's a great sticker.

[A]

It's a fantastic sticker.

[B]

No, that. And not a good way. Let me be very clear. If you cannot afford it from my merch, do not buy it. Do not. I'm not happy with that limited time. It's the strategy that you just have to entail for merch to be someone successful. But if you can, it's only four people can afford it. There are people in my audience who can afford it.

[A]

And see, I try to justify it in my mind. It's like, I'm only buying the stickers. I wanted to buy the cup. What I've talked to myself, like, because.

[B]

You'Re not spending something more expensive.

[A]

Yeah, but it's like, oh, it's a good item.

[B]

That's obviously potential. No, that's probably gas. Then what is Weston? Westminster. Westminster.

[A]

It's a restaurant within a hotel.

[B]

Okay, so this is the point. If we built up all the debt, okay. That's the situation we're in. Okay, what do we do now? We sacrifice our wants. But you're not sacrificing your wants to pay it off.

[A]

A lot of the times it's just me justifying it with, like, the reason I was in Westminster is because I was looking at property.

[B]

Property?

[A]

A condo. Yeah.

[B]

How are you purchasing a condo? How in any way are you purchasing a condo right now?

[A]

Well, the broker that I spoke to is like, yeah, we can make it happen.

[B]

Oh, please don't tell me you're gonna do, like, fs FHA or something or.

[A]

Well, that's what he was. That's what he was like, oh, yeah. Like, we can get you down payment assistance. We can. Oh, we can. Like, you know, we just got to adjust your numbers and then it doesn't matter.

[B]

Like, you're currently spending, like, 33% more than you bring home. What's your current rent?

[A]

It used to be 650, but then they changed property management, and it's going up to 830.

[B]

8. 30 is still kind of a blessing.

[A]

Oh, no, it was intentional. It was intentional for that location.

[B]

I know. And then you lock yourself into a mortgage where rates are hovering around 8%. Well, my biggest plus extra with, like, con mortgage insurance. And then whatever assistance program you're taking on, this will not help you in any way. This is gonna hurt you. You can't afford to survive.

[A]

I just figure if I can just squeeze things and move things around, then it'll be fine.

[B]

Move. Think. What? What are you moving around?

[A]

Put it on a credit card. Move. Move. The due date.

[B]

Put one on a credit card.

[A]

I have to make a payment. Like you put a payment of a.

[B]

Credit card on another credit card.

[A]

Well, some of these.

[B]

Listen, if you even said that statement, if you even considered that statement. Buying a piece of real estate is not in the picture. I'm sorry. Trust me. I want you to have it. I want you to. You're gonna do it.

[A]

Well, it's gonna happen.

[B]

What's the point of. What is the point of being here? If there's anything I'm, like, good at, it's been real estate.

[A]

Well, to be put into a place like, how do I. Because that was the number one thing the broker said is like, there are some concerns with the balances. So he gave me three cards that I need to tackle.

[B]

Are some concerns. There are some concerns.

[A]

He's saying, like, it wasn't that bad. He's like, I've seen worse. And I was like, if you've seen worse, I can then that.

[B]

I hate that. I hate the. It could be worse. I've seen worse. Yes, I Have seen someone piss themselves in front of me, drunk out of their mind on every drug possible, Living homeless on the street, downtown Austin. That's pretty bad. That doesn't mean that I can just go and do a bunch of bad, but because that's worse, it's okay. That's not. That's not how it works. If bad is bad is bad is bad. Doesn't matter if something's worse. Bad is bad.

[A]

Well, like, the justification that, like, me and my ex had in our heads is like, oh, we're doing better than our parents, so it's good enough.

[B]

But that's. Do you know that's. Again, I don't care about the used to. What? What?

[A]

It's just the credit. Like, it's in, like, you said, emergency fund.

[B]

Yeah, but it's like, credit benefiting you. It's taking advantage of you. It owns you.

[A]

And it owns me at work, too, because I work for a credit card company.

[B]

So what is this credit obsession?

[A]

Well, it's like a lot of the promotion of, like, even at work, there's like, oh, there's little things you can do to get around certain things. And like, if, like our. Our company, you know, policy for customers is like, if they want it, figure out how to get it for them.

[B]

Oh, it's disgusting.

[A]

Or like, how can you help the customer spend?

[B]

Oh.

[A]

So I absorbed a lot of that, too. And then it's like, but you know that's wrong.

[B]

You know that's wrong. You don't know that's wrong.

[A]

For the longest time, I was like, oh, yeah, that's not that bad.

[B]

I don't care about the longest time. I want. Now. I want where your mind is now. I don't give a. About the longest time now.

[A]

Now I realize I've. I've. Like, I'm in a spot.

[B]

So why would you go take out a mortgage?

[A]

I just want to go home. I want to go back to Colorado.

[B]

You can go back to Colorado and you can rent.

[A]

You should see the market, buddy.

[B]

You're talking about buying a piece of property. Right now, the rental market is 10 times better across the United States than any buyer's market.

[A]

But it's like, it'd be better to just, like, pay. Like, in a way, it's like you're paying yourself rent.

[B]

If you can't afford it, it is not good according to somebody.

[A]

I can't afford it, though. Like, that's where I'm somebody.

[B]

Somebody. Yeah, but they're a dumb. They're a dumb. If they put. If they say that they're legitimately dumb. They're. No, no. What they're trying to get is their little precious commission. I'm not getting paid by telling you this. I'm not getting paid by telling you this. I have no dog in this fight. It's dumb. I've bought a condo. I own 1, 2, 3, 4, 5, 6, 7. Seven or eight properties. I know a thing or two about that.

[A]

I guess it's cuz like they helped my cousin by. So I was like, oh, my cousin's place is pretty nice. I'm like, oh, oh. So it's a family recommendation.

[B]

Great. What can I say? What can I say? What can I say to convince you? Okay. Oh, this is impossible. Your mind's set. It's done. It's. It's done. You're doing it. You're gonna destroy your life. So let's go through.

[A]

I'm trying to figure out how to pivot from this. How do I get out of this spot?

[B]

Not by going into an 8% mortgage that you can't afford, I'll tell you that. Let's start. Let's go Best Buy.

[A]

And the other thing is a lot of these are special financing. So it's not like, not all of them are really generating interest. So that's. That was the other justification. Like, oh, it's not real.

[B]

$2,366.27. The middle monthly payment of $36. These are going to stack quickly. 11.94 of interest is accruing 30 interest.

[A]

Yeah, majority of them are pretty bad interest rates.

[B]

Okay. Will you at least let me. Because you're, you're in it. Support for tech, you said, right?

[A]

Yeah.

[B]

Will you at least let me gift you a certification through course Careers to like negotiate that for higher income in the future?

[A]

Honestly, do the best to try to get a better position because I recently moved into that position from the operations side of the company because that's when I started with the bank. I was supporting people buying motorcycles and ATVs and jet skis and at 24 to 35% interest. And the people that called in always sounded happy.

[B]

Ignorance is bliss. $408.46. And this is in an interest free period with a 40 minimum monthly payment. When does that interest free period end?

[A]

October. That one was kind of an emergency with the car. Like I opened it, my key had broken. And then like I had gotten locked out of it. So it's like the mechanism needed to be fixed.

[B]

Oh, gosh. Because my mechanism.

[A]

Yeah. Well, the Car with car.

[B]

Like an individual debt. Like, not even on a credit card. It's like we just, like we opened a new debt.

[A]

Well, that's what I was kind of like my mom was like, oh, just open a credit card. And just like when it's. Whenever.

[B]

Listen to your mom again for anything financial related.

[A]

Well, I'm realizing that now that their, Their mindset is a little bit broken because, like, even I was. They're like, you know, as long as you'll go over 30, it's fine to keep a balance.

[B]

Or I want to punch them.

[A]

Well, to be fair, neither of them had parents, so it's like they're just winging it.

[B]

And nobody has financial education in this country. It's personal responsibility, figuring out on your own.

[A]

And.

[B]

And when you make a mistake, like I did, like you have is getting help, seeking out the resources necessary and cleaning up your life. If they, at that point have not. They have failed to try to learn.

[A]

Well, that's where I'm kind of sitting at now. Especially, like, now that I'm not tied up with my ex. Like, how do I fix my life?

[B]

Not by getting a.

[A]

And some. To be fair, some of this isn't just mine that I'm. I'm trying to argue in court.

[B]

Well, are you going to tell. Oh, you're trying to argue in court. So it's active. But all this is under you. Everything that I have here, I don't have any of his.

[A]

You don't have any of his?

[B]

Legally speaking.

[A]

Yeah, because the other thing that happened is after I got assaulted, we separated finances because, like, at that point I was like, I. I can't be here. So.

[B]

From the roommate. From the roommate.

[A]

From the roommate, yes. And then so we find we started separating everything, checking, savings, and we had our own checkings and savings. And what we were trying to do in Nebraska was like, kind of reset our relationship. So separate finances, separate everything. Stay legally married, but just date again. And then so we would go back and forth, seeing each other, going on dates, spinning on credit.

[B]

I'm very sorry for everything you've been through. To be very clear. I really am. That's hard. And you are brave for coming on. Let's see your actions after this that are the most important, though.

[A]

And that's kind of where I'm sitting is like, I don't want to throw my future away, but it's like I've lived in chaos, like the past few years. Like, I don't. I don't know any different, but it's like you're trying to tell me credit is bad, but it's like literally saved me in some up situations.

[B]

I mean, in the way you've gone about it. Yes. But again, there's many more smart ways to go about it. And that's what I was starting to touch on. It's like your credit wouldn't be what it is if you saved yourself, as you say, on the credit, but then we sacrifice everything to pay it off. You. You didn't. With your spending, you're not. So you're still not doing it in a way that makes Sense. Balance of $1,117 in PayPal credit.

[A]

All special financing, though.

[B]

Yep. For intel, there's a couple.

[A]

So the way that PayPal credit works is like.

[B]

Yeah.

[A]

Different one has different due dates.

[B]

Yep.

[A]

So I know.

[B]

Yeah. Some's coming up in like two months, three months.

[A]

And that's why I picked up a second job to try to.

[B]

I. All right. Yeah. And you gotta pay it in interest or else the deferred interest comes and gets you. So you need to attack this 30% death insanity. There's like three purchases.

[A]

It's Microsoft subscription. For school. For school.

[B]

Great. Wells Fargo. Everyone's favorite wagon.

[A]

Yeah. I really want to get away from them because their banking is terrible.

[B]

This is the one wagon I want you to fall off of.

[A]

Which is.

[B]

That was a pretty good one.

[A]

Kind of. I mean, that wagon I'm chained to, cuz that one. The other thing about the Wells Fargo is I use it for overdraft protection. So it's tied to my main checking account.

[B]

$576.89 interest, 6.84 purchases, 391.80. The previous balance is 46. You could have ended this thing.

[A]

It was car parts. My car is kind of old.

[B]

25 minimum payment, overdraft protection. There it is. $156.

[A]

Yeah.

[B]

Chandler Bar. Yeah, that's a. That's a.

[A]

That's a car part that I did. Twice I did is. It's next to the laundromat. So I bought a drink and then got the cash pulled out instead of going to the atm.

[B]

If you're not willing to cut back. Okay, okay.

[A]

Capital one savior, though that with that one at least wasn't binge drinking.

[B]

Oh, I didn't even connect that.

[A]

Yeah.

[B]

$2,344 on this one. Minimum payment is 65. $45 of interest charged. Oh my gosh, here it is again. $649.39 of purchases. And interest is Charge we can't pay it off but we're going and purchasing some ticketing thing, a nightclub in your situation that's not a good environment to be in. And then McGraw Hill higher cousin invited.

[A]

Me out and just like if this.

[B]

Cousin know your situation.

[A]

Different cousins and they all cousin know your situation. Yeah but they're like oh it could be worse. It could be worse.

[B]

Like your family is an enabling dumb. They're stupid financially, financially, financially they're stupid.

[A]

Yeah, the, the debt cycle is bad for everybody and that's. I was like oh my debt compared to them. I, I can swing it, I can swing it. So it's like that's how I kind of cope but then it turns into cope spending.

[B]

It's a 32.2524 interest. A Walmart card.

[A]

Only groceries though. Only groceries. Promise I can show you on the app. Good, they're connected.

[B]

Thank you. Because that's the hard part with Walmart I just don't know. 28 down minimum payment $437.52. $12.69 of interest. This interest is stacking up across everything. $440.33 of purchases. Okay, so the Walmart's though, okay. Walmarts are groceries. But you also stop in there and get like $7 of things. Usually that's bullsh like a drink or snacks.

[A]

Well sometimes it is. It's like energy drinks and stuff. But it's like I'm buying it from Walmart instead of gas station or I buy it in bulk, try to cut down the cost.

[B]

If it fits in the budget. If it fits in the budget, that's when we can do that. Other than that we do necessities. But you are stepping at the gas station getting 9.19 of stuff.

[A]

Do you get an energy drink?

[B]

Subway, is that an energy drink? There's another four dollar energy drink from Walmart that's all.

[A]

Anything on the liquor store? Yeah.

[B]

Okay. Wait, wouldn't you tell me your last.

[A]

Relapse was the blackout was my last relapse. Like the last time that I blackout drank.

[B]

Isn't drinking at all considered relapse and an alcoholic situation?

[A]

Not the way it was like explained to me by like the hospital is like if you can learn to take like one or two drinks and stop yourself, you're good.

[B]

The hospital said that for someone who's.

[A]

An alcoholic that so it was a religious hospital and like they had to like they had people like how to like because my thing is like it's not, I'm at an age it's like most of the socialization that happens is drinking, going out the bar.

[B]

I know dog parks.

[A]

I know people that drink at the dog park.

[B]

Oh, well, they sound like that's a sad life. Chick Fil a. Certainly not an energy drink.

[A]

Yeah.

[B]

Any food return? Ach. Card payment. 100 bucks.

[A]

That was just a bad timing when I scheduled the payment, so. But I ended up paying it right after synchrony.

[B]

Oh, this is a large thick balance. $1,000. We're sitting at a minimum monthly payment of $51. Death. Okay. Interest charged. Almost 30 bucks. 800. Oh, it was 800 payment. Thank goodness. Oh, but then 300 of purchases still, so me can't get too excited.

[A]

Well, my coworkers pay the statements. That's how you cancel the interest. So I've been trying to like, it feels like playing a game.

[B]

Like, say it again.

[A]

If you just pay within the statement, like the big chunk, if you make another charge, it doesn't count because you paid the interest for that cycle.

[B]

Yeah, but why pay any interest?

[A]

Well, no, to avoid the interest, buddy.

[B]

$30 of interest happened.

[A]

Yeah.

[B]

Security service. Federal union. So this is your car?

[A]

Was my car.

[B]

What is that? This?

[A]

Nope, that's a different one. That was his car.

[B]

Okay, okay. So what is this? What's the situation?

[A]

So it was a 2016 Volkswagen Tigon. I thought my car was going out and it was. I was in Colorado and my friend sells cars and he's like, hey, I can get you a deal on a car if you want to come in. Well, he was a friend because he was just a salesman. And I knew it was like my biggest problem was the finance guy. But I did talk, talk it down, like the down payment. And they decided that I didn't need to trade in my car, so I was able to keep the other car, which worked out because I ended up totaling that car.

[B]

They're not gonna take a loss. Don't think you won in this situation, especially at a 10.4% interest rate of insanity. Okay, the balance of a car you.

[A]

Don'T have anymore, it's totaled. There's only $300 left on the through an alcoholic situation? No, actually.

[B]

Okay.

[A]

Unmarked dip in Kansas.

[B]

Okay, good.

[A]

So it wasn't my fault.

[B]

$15836 is still owed on this. What about insurance?

[A]

Well, there's only 300 left on it, cuz I just made a payment on it and that's what's left with the gap.

[B]

How. How'd you get the money to pay.

[A]

This off, it got totaled. It wasn't my fault.

[B]

So it was from the insurance.

[A]

The insurance paid in.

[B]

Okay. And it's at 300 now.

[A]

Yeah, that's what I owe because I didn't pay for Gap insurance. Cuz I was like, I don't need it.

[B]

Okay, good, good, good, good. Well, I'm glad insurance was there.

[A]

Good.

[B]

Because that's okay.

[A]

In the car that I drive now, it's thing kind of borrowed. So apartments. So that was part of the situation with the roommate is we ended up breaking the lease and then the complex said that they were going to charge for fees that according to my contract didn't make sense because they said if you live there for two years, they would cover certain things. But they're like, no, technically you didn't live here two years. Even though like in the contract from the dates I did. And so I'm fighting them in court on that one.

[B]

How many people are you fighting in court right now?

[A]

About three.

[B]

With who? Who's representing you?

[A]

So my company pays for legal services and I paid $3 per paycheck. So like my divorce, I've only paid like 200.

[B]

What's the other one?

[A]

Suing the roommate for damages.

[B]

For assault.

[A]

For the. It was a physical assault.

[B]

Oh, sorry. For physical assault?

[A]

Yeah, I mean, getting bit in the face.

[B]

Bit.

[A]

Yeah.

[B]

He's a combat.

[A]

No, he's psychotic. He was not well and should not have been. Insecurity.

[B]

Oh, he was insecure to kill me. What is this one?

[A]

Yeah, so they were like used to like fighting with people all day. So it's like they had some violent tendencies.

[B]

But he pipes them well.

[A]

That and like this guy sounds like a mess. He was worse than me. Like he has 50k of medical debt and was like. Well, that's what I'm saying is like I directly lived with somebody is like, oh, at least I'm not that guy.

[B]

Okay, we have $5756 of different loans with all these other places.

[A]

One loan was for Nebraska and one loan was to for ent. Yeah, they were for what? For the consolidate part of the credit.

[B]

Okay, so that's what this is, a consolidation.

[A]

There's two. The smaller loan is for moving.

[B]

Well, there's a $5 one. Oh, that's savings.

[A]

That's savings.

[B]

Cancel that one. Okay, 1,420.

[A]

Because I used to automate my savings where like I try to treat it like a bill. Like, oh, this money is going to disappear.

[B]

Yeah.

[A]

And I would put in an account that I couldn't See, because I don't check this, this bank account as often. But then when I get in a pinch, I'm like, I do know that money's there.

[B]

It's a 12.5% interest. Me with a 67 minute monthly payment, if I'm not mistaken. Fighting them in small claims court. The apartment.

[A]

Yeah. Because part of my services, they cover tenant law.

[B]

And it's a really cool employment perk.

[A]

Yeah. MetLife Legal, love it. But you just got to find an attorney that will accept it because some attorneys do not like the insurance.

[B]

Yeah.

[A]

But for up to 20 hours of work for free, when lawyers charge like $300 plus. So there's no way in hell I could have afforded to like, fight with them.

[B]

Okay, and then we have another one here. $4,334,335.70 with an interest rate of 11.5 with minimum monthly payment of $162.28. This is never ending. Go to your mom. For what?

[A]

I mean, some of the mindset was like, as long as you pay rent, like, you don't really have to worry about the other bills.

[B]

Huh?

[A]

Like, as long as you have some.

[B]

That's why you borrowed from your mom.

[A]

Well, I borrowed from my mom because she was willing to help because she didn't want me to be at that apartment anymore. So she's like, I will give you some money to break your lease.

[B]

Have you started painter?

[A]

I've been paying her since day one.

[B]

What is it? The minimum monthly?

[A]

Usually 200. And then when I went on my medical leave, she'd put a pause on it. And then I just started paying again now that I'm back at work.

[B]

It's the most expensive one so far.

[A]

Yeah. Because it causes issues. It causes issues.

[B]

Yes. And that's why Barn from Family is Wild. This is the one that just got taken care of, right?

[A]

Yes, that's. That's the loan and that's what I was trying to send to them, but I don't.

[B]

So what's your car situation right now?

[A]

So my dad. So I ended up giving my dad my Jeep because I got the Volkswagen and to also, like, get rid of stuff that could be claimed, you know, if things fell apart. So he took over that. He took over the insurance.

[B]

And what are you driving right now?

[A]

The Jeep.

[B]

Oh, okay. And do you. So you don't have to pay anything for it?

[A]

I will have to eventually start paying for the insurance.

[B]

But that's it. There's no minimum monthly payment or anything?

[A]

Nope. It's A hand me down.

[B]

When will you have to pay for the insurance?

[A]

Probably not until next month.

[B]

Next month? Okay. Yeah, we'll calculate that in the budget then. Student loans. You're. You better. You. You better be on some, like, plan, right?

[A]

They don't start until August, but they should only be like, 150, because my degree, like, was pretty cheap.

[B]

Well, you have $8,000 of student loans.

[A]

Was for the whole degree.

[B]

What was your degree?

[A]

So it was neuroscience and then kind of like a minor in business management. Nonprofit. And that I got in 2021. That one I'm kind of proud of because it's like another could have been worse. I could have been 30k in debt.

[B]

Shut up with the could have been worse. I never want to hear that out of your mouth again. It's too much of an excuse and justification. I'm not even saying this is bad. Not even saying this is bad, but stop the. It could be worse, please. That is gonna hold you back forever. It's gonna justify and allow things to be seen like they're okay. Doesn't mean it is. Please.

[A]

It's okay. Because like you said, you've literally seen people homeless on the show, right?

[B]

Oh, my gosh. That does not mean your situation's good, though. It could have been worse. As the ultimate just excuse to just allow it to be like, okay. Everything's actually okay.

[A]

In my mind, it kind of is because I'm not homeless. I paid my rent. I have no bills. I have 100 payment.

[B]

You could be homeless.

[A]

Could be.

[B]

Could.

[A]

I could just.

[B]

And I think you're headed down the path financially.

[A]

If I just stop paying the credit cards, I won't have to worry about it.

[B]

Well, you know how you like to litigate some people, they could litigate back.

[A]

They oftentimes don't, don't they?

[B]

They could litigate back. Legally speaking. They could. They could come after. You typically don't, but they could. These are small bounces, so I doubt they would, but they could. People have requested that I do a live Q and A for a while now, and I'm excited to announce that I finally am on Wednesday, March 20, at 8pm Eastern. 5pm West Coast. We have an exclusive live Q and A for anyone taking or has already taken our budgeting program. It has changed thousands of people's lives, and we're constantly receiving testimonials from those saving money and fixing their financial future, showing that we made the best budgeting program in the history of the Internet and at the best price. Sign up using the link in the description below and join me for the Q and A where I answer your questions live. Technically, legally, you signed a contract.

[A]

Not too worried about.

[B]

Remember the contract that you signed with the apartment and you're holding them credible to that contract. They could do that, too. They probably won't, but they could.

[A]

I guess it's a little bit easier for me to justify because it's like they're just a faceless company, and if they're going to give me money, it's whatever.

[B]

What does that mean? You don't feel moral responsibility when you borrow money from someone?

[A]

Well, I work for a bank and I see what they do to people. So I was like, why should I care about them?

[B]

Well, it's still a contract that you signed, regardless. Not saying they're angels by any mean, but you signed the contract.

[A]

And I have 100 payment history. You can check my credit report. I've never missed a payment.

[B]

Good, good, good, good. But as these minimum monthly payments stack up, you. When you say it could have been worse, I could have been homeless, has to stack up. And you're talking about getting into a mortgage that you definitely cannot afford in any way whatsoever. It's like that ends up to a foreclosure situation, which could end up in homelessness. So I don't want that. It could be worse. You're heading down the path of it could be worse because you tell yourself it could be worse.

[A]

Well, I've seen even, like, families save themselves from, like, foreclosure. So I'm like, it's not over until it's over.

[B]

Goodness, you're too comfortable. You are too comfortable. $1,600 is due for my on plan health.

[A]

So when I.

[B]

The insurance paid for most of it.

[A]

Did like the divorce, it changed my plan a little bit. So, like, my company gives me untaxed money to spend on health stuff.

[B]

Yeah.

[A]

So therapy, medication. But it went from 750 down to 500. And I didn't realize that.

[B]

Are you on a monthly payment plan for this?

[A]

I scheduled something with the. The doctor's office directly, not through the company, because I'm going to try to use my gym membership because they pay for that. And I just got to send the statements. It's a big benefit package. Like, that's one of the few reasons I haven't. I can't find another company even close.

[B]

Sure. Okay. Dentistry. You owe $15.

[A]

And that's part of that. That.

[B]

Why not just pay $15?

[A]

I'm going to. Like, I've already spoke to them. And they're like, yeah, don't worry about it if you're gonna talk to the insurance. So I was like, if they're not worried about it, I'm not worried about it.

[B]

Fair enough. And they're like, this screams you, though. You're just like.

[A]

It's a smaller fire compared to the other fire. So it's like, I don't put metal energy in it.

[B]

Okay. Drywall. Oh.

[A]

For the damage.

[B]

Okay.

[A]

But there's a possibility that the. The apartment will cover it because of domestic violence laws. Yeah, but they could still.

[B]

We don't know.

[A]

Yeah, they're still on the fence about it, but I didn't get a police report to them, so that's like. They have a record, man.

[B]

Is a hole in the wall going to be proof, though? Because, like, anything could be a hole in the wall, you know?

[A]

Well, they. They worked with me through the situation.

[B]

Okay. Okay, good. So there's things on paper. There's a record. Yeah, good, good, good, good. I'm glad to hear that. Well, I'm not glad to hear that, but I'm glad that there's. There. There's stuff on your side. $275.

[A]

And that's when it goes back to like, he could have murdered me. Could have been worse.

[B]

Okay. All right. Okay. $416 is due. My gosh, this is just endless, isn't it? This is another medical thing. So what's your. Is it st. You going to try to the same thing with this?

[A]

It depends. Which one is that one?

[B]

Because there's three creative.

[A]

That one. I'm on a payment plan. I just paused your monthly. It's about 40.

[B]

You paused it?

[A]

Yeah, because it was my therapy. Oh, that's what that is, is a therapy bill. Because the other thing, too, is I was on a plan.

[B]

Stop therapy.

[A]

Well, because I was on, like, with a student, so they only charged $10 a session. But then they left, and then I had to go to a professional, and after insurance, it was still like 190.

[B]

Okay, okay. Okay. Okay.

[A]

And I kind of needed therapy through everything.

[B]

Don't just tell me what that is.

[A]

That's the dentist stuff. That's. That's the.

[B]

We already looked at that.

[A]

Yeah, you've already looked at it. That's all. That's.

[B]

Okay. So that's all the debts.

[A]

That's all the debts. Besides the hospital bill.

[B]

An extra hospital bill.

[A]

The. The insurance cover the majority of it, but there's like 1600. But my lawyer. There's a payment plan that's going to be set up after the divorce finalizes because technically medical debt is a marital division. Marital liability.

[B]

What's the payment plan?

[A]

It's going to be probably like 56, 47.

[B]

Okay.

[A]

Is like the minimum.

[B]

Okay. Oh my gosh. Wells Fargo. 60 bucks. That's terrifying. What are you transferring to Fidelity? You can't afford to like pay your bills.

[A]

Oh yeah, kill me. But the way that they justify to me is like you're paying yourself. So it's like it's only. And it's a small percentage going out.

[B]

To eat there with that V, I think. What's the security online? $298.

[A]

Which one is it?

[B]

Security, SRV, FCU. Overdraft protection. $10 overdraft. $156 more payday 401k loans. Overdraft, overdraft.

[A]

The overdrafting did not happen before I went on my leave. Because the other thing is I lost.

[B]

Now and that's all I care about.

[A]

True. But I was being paid weekly so like a lot of my bills were structured for that.

[B]

So restructure.

[A]

That's what I'm trying.

[B]

It takes a couple hours to sit down and go through. No, you would have. If you were trying, you would have done it. Zing out. $40 ven went out $35.

[A]

The $40 is my phone bill transfer my sister.

[B]

That's pretty good. 40 bucks. My.

[A]

My brother in law used to work for the company.

[B]

Okay. Okay. So yeah, I mean I always. I'm actually getting a phone from them so I can like test it. But I always plug my boys over at Helium where it can be like 20amonth which is pretty sick as well.

[A]

That's what I looked into when we weren't sure if he was going to keep his employee benefit because they let him go. And that's another reminder that companies don't give a about you.

[B]

I'm a company. I care about my people. What are you talking about?

[A]

As a small business. But what happens when you get big?

[B]

I would like to think I still care about people. Sometimes you have to make hard choices, business choices for the sake of the business, which impacts every other. If the business goes down, then everyone loses their job. I don't think anyone enjoys firing people. I think that was an over. Like, I think that was a.

[A]

A little bit of a generalization. I can see that this is just showing my payment history for the loans because like the statements are kind of funny because one bank will do it. All your bank accounts on one statement. The other one is A bunch of separate. Same with this, same with that. Yeah. So that's just payment history. So checking account never missed.

[B]

That's great. That's great. I mean, I wouldn't. I'm not yelling at you for something that you didn't. $60. 46 in your checking account scares me, but $710 in Wells Fargo savings.

[A]

So the way that my never be overdrafting. Well, the way that my bank is structured is I have three accounts with Wells Fargo. I have one that's automated payments in my direct deposits, and then I have another one that I try to keep a little bit of cash stashed. And then I have one that rolls over. So like every time I spend from that bank account, it rolls the change over so that I can have a round number so that I can like quickly is like, oh, I can swipe the card because I know I have this much so I can swipe the card. Keeps that number around. So like I was trying to set up systems and do automated payments and like move things around automatically.

[B]

Yeah, you're moving things. Okay. You transferred in, transferred out. It's getting weird and confusing. A producer just told me you emptied this savings account.

[A]

When I went on my medical leave, I. Draining a lot of my savings.

[B]

And then this one's also zero. Not too.

[A]

Yeah, all my savings pretty much gone.

[B]

Great. Awesome. Why are you. So you have a little bit in a 401k even though you have leverage against it anyway, so you're in these target day retirement funds. I like target date retirement funds. Don't have much in there, but actually for 22, I'm actually kind of. It's so weird. Your financial situation is so weird. You have $7 in there. Targeted retirement funds are great.

[A]

And the. There's another account in there that we try to set up. Do it for my ex husband too. Like that IRA that's empty that used to have money in it because it was for him.

[B]

But what's your 401k loan?

[A]

There's three of them, so there's different amounts.

[B]

Okay. I think I have ran down here. Okay. Thousand dollars, $600, $671.

[A]

I realize another bad habit is like, I don't know, off the top of my head, where I'm sitting half the time.

[B]

Where what?

[A]

Half the time I don't know where I'm sitting. I'm just sitting, like financially, because I like, I just let everything.

[B]

So you've never budgeted. Okay, go through our budgeting program. Go, please. That's what everyone. Every Guest gets it for free. Go through it. It has changed thousands of people's lives. Please, please, like actually take the education, the class, go through all the questionnaires and take the quizzes, please. It will literally change your life. We're going to create a budget, but like what's actually required to do budgeting is like spending hours going through it the first time and then on a monthly basis going through it and eventually get shorter and shorter every time. That's what you got to do. We're going to, we're going to put something together, a loose budget that gives you like a vision of what you need to do, how long things might take. But go through the program. Yeah.

[A]

Because everything feels like it's on fire.

[B]

So again, you do spend double what you make. 40. Almost double. 40. 34% of your spending is going net into debt. $1,791. I'm glad it's at least a large percentage. When you have a lot of debt. We need to start putting it towards the debt. A lot of that is just minim monthly payments anyway. That just stack, sack, sack, stack, stack.

[A]

That's what I'm feeling. The death by a thousand paper cuts.

[B]

Absolutely. You think that's good and you should take out more and that you're taking advantage of credit, but credit taking advantage of you. Nothing's good in any way whatsoever. So why have you said that credit is good and that you want to take out more debt? That doesn't make any sense. Why would you add more cuts to the cuts that are killing you?

[A]

I guess it's like the information that I'm getting is very. Like you said, there's people who have dogs in the game that want me to spend.

[B]

Cool. So you're done with that then? Because I've corrected that. Correct.

[A]

Yeah. Like I.

[B]

Okay, so you're not going to get a condo right now.

[A]

Right now? Not right now, but that's the goal.

[B]

That's sure. Absolutely. I want you to. I want you to get whatever you want in terms of your first property. Absolutely. We gotta get there. Let's not rush there and hurt ourselves because then you become house poor and then you get.

[A]

And even. I know I keep saying like, but it's like people don't.

[B]

Do not say it. Do not, do not.

[A]

Don't have a house. It might be house poor.

[B]

No, being house poor is absolutely worse than renting. Are you kidding me? It's not even close. 0.8%. Okay. The housing total, 766.84 phone total.8%. We know that was 40. And transportation, total 12.6 or 630.64.

[A]

And I don't spend a lot because I work from home.

[B]

Necessary food, groceries, 4.2% or 210.24. Food. Going out to eat. It's not crazy. 3.4, 170.71. But when we're spending double, we just can't, unfortunately, afford miscellaneous or medical. Sorry, medical is 0.7. Miscellaneously. Stopping, getting drinks. We know he did that a few times. It's 0.8. Close to 1%. And other large purchases was 28.3%, or $1,419. Let's take a look at those.

[A]

And to be fair, like, some of the big purchases I made is because I'm going to Europe this summer.

[B]

What? Why? What the. What?

[A]

I'm gonna go see the Olympics.

[B]

What the.

[A]

Yeah.

[B]

So you can't afford to live. Why are you seeing the Olympics again? I want you to. But that is a. Want.

[A]

You can't afford to live.

[B]

I don't give a. If you're seeing someone carrying a thing that's on fire down a path, it's.

[A]

Kind of too late, because I already made the purchases.

[B]

Oh, kill me. Trying to refund them as much as possible.

[A]

It's kind of a little. A little past those.

[B]

What have you done? How much did it cost? Because then you're gonna go there and you're gonna spend more money getting on food and.

[A]

Well, it's 2000 for just the plane that was from the States to Europe and back. And then my friend, she's gonna cover the cost of the hotel.

[B]

Oh, I want to just ruin.

[A]

And she's like, oh, I just got a card just for Europe. And I'm like, I got a card just for Europe.

[B]

Southwest Airlines. Yeah, that was a large thing. And there's legal fees, then a hotel, then venomous. Okay, okay, okay. Can we turn on the AC in here? I'm sweating. This is insane. This is insane.

[A]

Keeps going.

[B]

That's it. There's more.

[A]

Well, that's a lot of the issues is, like, there's. I have to. More. Well, after the. Europe is like. So that's kind of happening, but it's also like, I'm getting ready to move into this new complex, and I'm trying to figure out.

[B]

Complex? I thought you were buying a condo.

[A]

So I can't leave my company. So this is where I'm stuck is I want to quit my job so I can go back home, but I can't go Back home. Cuz the company, they don't have an.

[B]

Office there or anything. They said you work from home.

[A]

It's. You're required to live in certain cities.

[B]

So I got there a city closer.

[A]

To home that would be back where my ex lives. So no, because we left that city to go to Nebraska for college because we were gonna go back to school. So much corn and a lot of cows. Fun fact. There are more cows than people.

[B]

That is fun. What are the minimum payments total in your 401k loans?

[A]

Off the top of my head, I don't know. I'd have to look at my come on my list.

[B]

Do you have it?

[A]

I do.

[B]

Oh, I'm just.

[A]

And see I was always told. Well Jean is just like as long.

[B]

As you have a. You're always told a lot of things and I don't give a. No offense what you've always been told. I don't. Everything you've always been told has been wrong. You know that. Stop listening to people who don't know what they're talking about. I don't give a. People have said educate yourself. Inform yourself from reliable sources. Don't the. I've always been told. That's done. Just to be clear, that's done with your life. No more urban myths.

[A]

Well, how do I, how do I even know that you're. Because like that's a big thing too. Is like content from books tube and library. And I've looked at books and it's like they're dated information about the economy. That was like 10 years ago.

[B]

Well, I'm not trying to get. You don't need an economics degree, but simple truths about debt are pretty similar.

[A]

Depends on who you ask. That's the thing is like there's always a different opinion. Like some.

[B]

Sure, there's always a different opinion, but there are objective realities that like there's.

[A]

YouTubers like stuff in like oh, you can just do this with your credit. Or like travel.

[B]

Yes. But he never says hold a balance. He never says once hold a balance.

[A]

I'm saying there's lots of different YouTubers.

[B]

Who says hold a balance?

[A]

Nobody holds the balance. But like that you can use a card for this for traveling or no, of course hack and do it like oh 5%.

[B]

And you always can if you're a credit card person. You're not a credit card person. I'm all about that too. Yeah. You leave out the equation where you hold balances. None of them say hold balances. So I, I disagree with what you're saying. Sure People have different opinions. But what YouTuber is saying hold balances.

[A]

Not necessarily. There are. What is it people who have said and granted is probably miss pushed out by banks. Like saying that keep a little balance to show a payment history. Showing that you're making a payment.

[B]

Yes. But even if you did that, you don't have a little balance. I want to. I wouldn't come after you and like obliterate you for holding a little balance. I'd be like, that's stupid. Fix it. But this is not a little balance.

[A]

So again, when it was incomes, it was easy to pay off a lot.

[B]

Of these, but it's not and it hasn't been for a while. And you haven't, you haven't adapted. Yeah, cut back. You're still spending.

[A]

And that's kind of my goal. It's like, how do I live off of the one income? Because together, like, our finances were like, we were making about 70k together. And then our apartment was pretty cheap with the roommate.

[B]

You are right, though. It is hard to sort through what to get in from. Information is. I've seen actually just a lot of people. This is just a vent of my own. A lot of people are like, why would people ever buy the budget program when all this information is for free online? It's so hard to tell what's a reliable source, what's good. Everyone has different opinions. So what we did is we like brought experts in the field together and we like created like one concrete place that everyone can go through. And it helps people like you. It helps people like her. If you're that person who's annoying and says that kind of crap because it's impossible. You go and try to search things and you're going to get a lot of information. You're correct. None of the information that says what you're doing though. So I like, I don't buy that.

[A]

Well, just Frankensteining a bunch of information is like, oh, it's not that bad. Or it's, you know, the misinformation from.

[B]

Family who obviously never listen to family about financial advice. It doesn't make sense.

[A]

But who. Like, that's main. People like in your corner.

[B]

I know. No, no, you're right. No longer do that. Just don't. They've led you down the wrong path financially. Just don't listen to them anymore. You email me.

[A]

Okay.

[B]

You email me. Can't promise an instant response, but we respond.

[A]

I'm gonna put your budgeting to the test.

[B]

Yeah, yeah, yeah, yeah. And you have the discord with all the other guests so they can help too. Everyone's like holding each other accountable. What are the minimum payments on the 401k total?

[A]

My bad.

[B]

It's okay.

[A]

A little bit of a squirrel moment.

[B]

We went down rabbit hole so they're.

[A]

All relatively small and they come out of my paycheck so I don't even see the payments.

[B]

They come out of your paychecks then I'm not counting them because we're I'm. We're going to do your net and then we're budgeting off of that so.

[A]

And they're all under $20.

[B]

As a viewer of my show, I'm sure by now you have a good understanding of not only how important it is to take care of your finances, but also how important it is to take care of your financial future. The sponsor of today's video is Mumu, which also happens to be my Go to investment app. They're currently offering lots of amazing ways to more effectively take care of your financial future through smart investing. First off, you can receive up to 15 FREE stocks by simply making a qualified deposit. Or if you already have a portfolio with a different brokerage, you can transfer to Moomoo and receive up to $5,000 in cash rewards. And these cash rewards, as well as the rest of your uninvested cash, will earn you an impressive 8.1% APY for the first three months while you get a feel for the Moomoo app and figure out your next investing opportunity. And if you need help figuring out that next investment, don't worry. Moomoo has tons of powerful tools to help you there too, such as stock screeners and industry chains which give you insights into all of the different investment opportunities one industry has to offer. And don't worry if you're feeling overwhelmed. You have access to a community of over 20 million users globally. Plus you can stay updated with their 24.7news updates. Don't wait until it's too late to get these incredible sign up offers. Click the link in my Description description box below to switch to Moomoo today and unlock all the tools you need to secure your financial future. How much do you spend on gas a month?

[A]

Probably like when I'm just in the.

[B]

City, just120 but normally just on average.

[A]

It's because sometimes I drive to Colorado and that throws off my budget on.

[B]

Average on a monthly basis. How much average it out?

[A]

Probably 150.

[B]

Okay, what's the new car insurance going to be?

[A]

It should be 128 and then that's bare minimum insurance. Okay.

[B]

Okay. Tell people. Find this. Anything else you need to survive in life. $100. Going to the grocery store, buying food to eat. 300.

[A]

Medication.

[B]

No, no, no, no, no.

[A]

Okay.

[B]

Not yet. That's in medical. So medical. Give me your medical expenses on a monthly basis. This includes therapy because you should be going to therapy. To be clear. Well, we already determined that.

[A]

I'm trying to find a cheaper therapist, but with the current cost after insurance, My therapist is 190. I go once a week and then medication's 80.

[B]

What about some online stuff? Where?

[A]

Well, that's. This is telehealth and stuff like that too, Like. Yeah, it's a specialist. She's a specialist for my condition.

[B]

Okay, so how much. What are we going to budget for that plus medications? I just need a number. You're going to do this More concrete anyway, but I need your number.

[A]

I'm on the waitlist to go back with a student, so that should put it back down to 80amonth. And then if I need the specialist, 190.

[B]

And then medications.

[A]

$80.

[B]

Jeez.

[A]

Yeah.

[B]

And all these numbers changes when you lose your job by quitting your job, which.

[A]

And that's where I'm at. I was like, I want to quit my job, but it's like I'm.

[B]

Subscriptions are done. No more. What's your rent?

[A]

Currently it's going to be base.830. Water, gas, electric, about 70 for water and trash. And then electric is between 80 up to 120, depending on the winter.

[B]

Call it 100 Internet, paid for by.

[A]

The company, but it's 40 that comes out of my account.

[B]

Okay.

[A]

But they reimburse me.

[B]

Okay.

[A]

Because I work from home.

[B]

All right, here. Debt, minimum payments. Let's get that.

[A]

Yeah. Watching you type isn't. Isn't the most comfy feeling right now.

[B]

You should have done this multiple times before coming down here and you'd be in a completely different spot. Let that be a lesson to everyone else who's watching, because you can't go back. Okay. $979.97. That's insane.

[A]

I didn't think it was that bad.

[B]

I don't know how you didn't, but. Okie dokie.

[A]

Because it's all automated. I don't even look at it.

[B]

It's a lot of putting your whole head in the ground hiding from it. So let's get your minimum monthly expenses, anything else that you need to survive that I have not incorporated into this.

[A]

No, I. I use my main job.

[B]

Wait Did I see Jim? But that's also from.

[A]

It can be reimbursed. I just have to send statements, and it's only 35.

[B]

Okay.

[A]

And that's.

[B]

Send the statements.

[A]

Okay.

[B]

Okay. So minimum in order to survive is 2967.97.

[A]

Oh, and food for patches.

[B]

How much?

[A]

It's about 40. I get the big bag.

[B]

I'm also throwing in pet insurance, so let's call it 60. 60 for dog. Do it. It has saved me thousands. It will save you.

[A]

I feel like I've looked into before, and it's not that cheap. So who do you partner with?

[B]

Well, I don't have a partner for this one, but I use. I mean, maybe it is more expensive.

[A]

I. I looked at Pet Best because my company owns Pets Best.

[B]

Okay. I do Lemonade. Mine might be 40.

[A]

40. And that's for.

[B]

So let's call it 80 total for dog. Hi, buddy. I'm gonna give him. I'm gonna give her a pet.

[A]

Well, hopefully they don't quote too high because my other dog is older and.

[B]

Might be more difficult. But let's at least get the younger one on so they can be on something. Okay. So plus 80 for that brings us to now 3047. 97 cents. She's farted on me a couple times, but she is very cute down there.

[A]

At least your feet are warm.

[B]

I know. I enjoyed giving her pets before. We filmed in many pets after.

[A]

I'm working on getting the paperwork for her to be, like, proper kind of.

[B]

Support animal, but she seems like she's so freaking chill.

[A]

You should meet my other dog, who's my actual support animal.

[B]

He's more chill. Wow.

[A]

Way chiller.

[B]

Wow, that's wild. I didn't know that's a thing.

[A]

Yeah, but he's old. He's my. He's my little man. Do you want to take a picture?

[B]

Sure. Yeah.

[A]

But he's. He's kind of expensive because he's old.

[B]

How old?

[A]

He's gonna be 12 this year.

[B]

Oh, yeah. Kind of dog.

[A]

He is a pitbull mix staffshire terrier, that is. Oh, he's just a baby.

[B]

What's.

[A]

Just your handsome boy, but my ex took him, so. Oh, we're fighting in court for the dog.

[B]

Yeah, I would, too. I would do anything for mine. Okay.

[A]

South Dakota next week for court, essentially.

[B]

Getting about 3,000 bucks. So you're, like, breaking even.

[A]

That's.

[B]

You said it's going up.

[A]

It's going up because we just got it.

[B]

So what do you think? It's going to go up to net like $3200. 3300. 3100.

[A]

So it's 3% off of my new base and then the 10 differential. So it's like I'm making like 2550 an hour for how many hours I work 40s, and then sometimes I'll do overtime and then I have a second job.

[B]

How much do you think is going to be net? I've tried to ask that a couple times. What do you think is going to be net? Because you have a lot. About 3,000 to take advantage of. About three. So it's about the same.

[A]

Yeah, it's about that. Because a lot comes out for insurance. A lot comes out for the 401k.

[B]

Bad news. You need 3000 to survive. So unfortunately, we've dealt with this on a few episodes now. It's like, mathematically there's nothing I can do here. Like, if your income is what you need to survive and that's you living in a minimum and you're not living a minimum right now. You are going out. It's not a crazy amount, but you can't afford it. And then you like a penny, you can't afford it. I'm getting heartburn and sweating from this mess. This is a big one.

[A]

Yeah. I had to bring a small tree to get all these statements.

[B]

I would certainly be working as much overtime as possible. Anything that's available. Now, again, this is going to be a mental health thing and you need to talk to your mental health professional about this. But what I'm saying from a financial point and then changes based on mental health. Stay there as long as you can in this job and then we move back when things are financially secure. I don't want you to walk away from this. You sign the contracts, let's be an adult, let's pay for it. And I know you could do it. Pick up as much overtime as you can. Now what sucks?

[A]

I did recently start a second job.

[B]

Really?

[A]

Yes.

[B]

How much?

[A]

So we bring it in 14 an hour, but it's not a lot of hours.

[B]

How many hours?

[A]

It's about six a week doing weekends. And then once in a while I'll do like doordash and stuff in, like, the city now that I live in a bigger city. Yeah, but it's not a whole lot.

[B]

Well, let's go off of that. Yeah, it's gonna be an extra about. Well, yeah, net maybe 300.

[A]

Yeah.

[B]

For tax, 275. That can help start moving the needle. But again, for. Let's minus the car from the total debt. But I'm just about. What does this give you? Let's say you put the extra 275 towards it on a monthly basis. Takes 54 months, four and a half years. That's. I don't want you to wait that long to move home. So it's clear as we just. You need to work as much overtime as possible. If that second job is not giving you enough hours, we're getting a different second job, the UberEats. It's going to be dependent on the area or doordash if it's worth that.

[A]

Job because it has benefits that I don't have to pay for the gym anymore because I get a free membership. So.

[B]

Okay, well, I'm sorry, but saving 13amonth is not going to be the make or break. Whereas if you go make hundreds of dollars more a month somewhere else, it's going to be much more worth it, I guess. What's bigger? Hundreds of thousands of dollars at the gym, obviously.

[A]

Yeah, but I'm just saying it's like just trying to find a job that doesn't interfere with my job is a big thing.

[B]

Yes, absolutely. Of course this is going to take work. I'm not saying this is the easiest thing in the world, but if you, if you only do what you're doing now, it's going to take five and a half years. And I don't think that's an option for you with mental health. I do not think so. So what you have to do, have to do as just a responsible adult. I'm sorry that you're in this situation, but you are hopefully some things with the court, you know, that helps. But you know, regardless of all that, what you have is exactly. But what you have to do regardless is you're going to need to bring in about an extra 500amonth minimum. That will at least bring this closer to like three years. You know, if we can get even like an extra thousand dollars a month, which might be your. You might be looking at. I'm working like 70 hours a week. This sucks. I have no life. That's okay. I would rather you have no life for two years and have an amazing rest of your life because you have so much life to live. But if you keep kicking the can down the road and you don't sacrifice now, it's gonna be long, it's gonna be painful, it's gonna be stressful, it's gonna be bad for your mental health. You're never gonna have enough money to Retire. And it's gonna just be bad. And that's not what I want you to do. So right now, sacrifice is the name of the game for you. And by that I mean not only cutting back on your expenses, but work as many hours as you can at any amount of jobs. DoorDash and UberEats, you're going to. I know people here who have made a ton of money and I know people here who make no money. You got to figure out if it's mathematically worth it. After all expenses and maintenance and gas and all that. If it's not, we're trying to do something else. At a coffee shop, for example, here at Tesla, I can't speak about your town, but they're like, they're like begging, begging at the cybertruck plant. Begging, begging like 23 bucks an hour. Like they'll accept anyone off the street. They're like, please, please. We need people like, there are opportunities. Not luxurious, not great, but guess what? They will get you out of this situation. And if you can get out of this in a couple years, you have so many decades left, so many decades left of an amazing life. But that is your choice going forward. On the mental health side, you need to talk to a mental health professional about that. I can't do anything but the finances out of that. From our end, it's your choice. Hammer Financial score. Let's. Let's do it real quick. I. I'm guessing it's a zero, but I mean, let's think, let's think. Spending. For actually spending in a budget, you shouldn't be overspending your budget, but what your percentages were in terms of your food. I'll actually give you a more generous two out of ten. Unfortunately, that's generous. But debt, you're not missing any payments, you're not in collections. You are taking on the 401k. One out of ten emergency fund. There's nothing there. We drained at 00:10 retirement there is there, but you borrowed against half of it.

[A]

So it's going to vest and then it's going to be double because it's.

[B]

Like, well, even still, we are barring against it. So I am going to have to lower for that. For your age, I'm going to give it a 3 out of 10. Real estate, not there. And don't get there yet. Trust me, you're going to yourself if you do 0 out of 10. I mean, just look, you're breaking even right now with a low rent, so a mortgage does not make sense. Hammer Financial Score 1.5 out of 10. Make sure to check out all the resources linked in the description below. They are what I use or would use in specific situations, including the best budgeting program in the history of the Internet. Thanks to all of our Patreon producers for making this episode possible. If you want to participate in an episode of Financial Audit and you're able to make it to Austin, Texas, please fill out an application in the survey linked in the description below. You can also send a link to your friends or family who you think might be good to be on the show. If you have any questions, you can email castingalebhammer.com.