Financial Audit Podcast Episode Summary

Episode: Loser Husband Blows All His Wife’s Money | Financial Audit
Date: July 1, 2024
Host: Caleb Hammer
Guests: Alex (comedian/waiter) & Alexis (digital marketing specialist) – married couple from Killeen, TX

Overview

This episode features a married couple, Alex and Alexis, undergoing a financial audit with host Caleb Hammer. The primary focus is on their struggling household finances driven by imbalanced income, poor communication, and persistent debt, particularly due to Alex’s spending habits and attitudes toward credit card “cash back.” Through frank discussion and some comedic moments, Caleb dissects their finances, challenges their beliefs, and lays out a pathway toward financial health.

Key Discussion Points & Insights

1. Income & Occupation Breakdown

• Alexis: Digital marketing specialist, earning $58,000/year.
• Alex: Waiter and aspiring stand-up comedian, bringing in $12,000–$15,000/year waiting tables and $5,000 from comedy; describes comedy income as “more of a grind” and admits it’s not sustainable yet.
• Household Income: Around $70,000–$80,000.

Memorable Moment:
[01:07]
Alex: "I think last year I did 5,000."
Caleb: "Okay, so more of a hobby, more of a grind, more of a. We're trying. We're trying."
Alex: "We're doing our best."

2. Relationship with Money & Responsibility

• Finances Combined: All major accounts are joint.
• Financial Roles: Alexis handles the bills; Alex rarely checks bank accounts, claiming he avoids temptation to spend (e.g., $50/day on cigars).
• Communication: Major disconnect. Alex is openly disinterested in financial management; Alexis is unsure of his goals and vice versa.

Quote:
[12:14]
Caleb: "So you guys just don't talk about money. No, but this is a big part of a relationship."

3. Credit Card Debt & Cash Back Delusions

• Both have Discover credit cards; balances: Alex ~ $4,600, Alexis ~ $2,200.
• Both often pay slightly above the minimum but then continue spending on the card, negating payoff gains.
• Alex’s misconception: Obsessed with the idea that “cash back” benefits justify his frequent credit card usage, disregarding the high interest charges.

Key Exchange:
[07:26]
Alex: "Yeah, but you get cash back."
Caleb: "With $67.59 of interest. Well, cash back is for people who never pay interest…"

[10:04]
Caleb: "You sound like Theo Vaughn."
Alex: "I get compared to Theo Vaughn all the time…"

• Caleb’s Teaching: Draws diagrams to illustrate how interest on a high balance far outweighs any marginal “cash back” rewards.

4. Spending Habits & Accountability

• Spending Patterns: Frequent unnecessary transactions (cigars, DoorDash, donuts, bowling alley, etc.).
• Lack of Budgeting: Budgeting was attempted in 2020 but abandoned; no meaningful tracking since.
• Mutual Enabling: Despite Alexis’ role as the “responsible” partner, both contribute to bad habits (e.g., Alexis’ $400+ on her card, surprise Etsy buys).

[18:50]
Caleb: "People think it's so, like, cute to be bad with money or something? Like, what is happening?"

5. Taxes and Loans

• Back Taxes: Ongoing issues from failing to submit W-2s; mostly Alex’s past jobs.
• Student Loans: Both have loans—Alexis in deferment (~$11,000), Alex owes ~ $2,500.
• Car Loan: Mercedes with high loan balance ($14,100 at 7% interest).

6. Homeownership and Neighborhood Concerns

• Mortgage: 2.75% on a $161,000 FHA loan, monthly payment $1,523.90; house now valued at ~$240,000.
• Neighborhood Regrets: Bought “sight unseen” in Killeen, TX, now unhappy with crime in the area but recognize low rate as a silver lining.

[34:06]
Caleb: "Fire the realtor. What are you doing? You signed on a home and a mortgage without a final walk through."

7. Vehicle Collection & Sentimentality

• Multiple Vehicles: Three cars (only one, a Mercedes, is valuable), a barely-driven Dodge truck, and a non-drivable classic car project; also a motorcycle worth ~$10,000.
• Justifications: Alex emotionally attached, resists selling, despite pressing debt.
• Caleb’s Take: “Sell the cars”; criticizes emotional attachment as barrier to progress.

[50:04]
Alex: "So whenever I was a little kid, my dad died when I was 7 and he had the same pickup truck. So I bought this pickup truck."
Caleb: "Is it the pickup truck?"
Alex: "It's not the same one..."

[53:13]
Alex: "I bought a motorcycle instead."
Caleb: "Another great use of taxpayer money. How is it—how much is it worth?"
Alex: "About $10,000."
Caleb: "That's awesome. Sell it."

8. Lack of Financial Goals & Retirement Planning

• Goals: Neither has any; Alex embraces “no Plan B” philosophy (“as long as things are paid for, that’s all that matters”).
• Retirement: Alexis has a 401(k) but no idea how much, with Alex cashing out his previous accounts.

[31:12]
Alex: "Yeah, I have not thought about it. She has a retirement. I don't know how much. I don't know."
Caleb: "Why haven't you looked at—"
Alexis: "I don't know how. I don't know."

9. Budgeting Exercise & Reality Check

• Caleb guides them through creating a budget and comparing their grocery spending to the national average. They estimate $500/month; in reality, they spend $750+/month despite no kids or dependents.

[45:48]
Caleb: "For that month you guys, this was a little higher because you told us Walmart was grocery shopping. But...you spend likely $750 a month…you don’t have kids…you spend probably an extra $250, $300 more than the average household in America."

10. Financial Makeover: The Way Out

Caleb’s Prescribed Action Plan:

• Sell motorcycle and a beater car: Use proceeds to wipe out credit card and medical debt, build emergency fund.
• Maintain strict minimum budget: Necessary expenses only.
• Delay indulgence: No more automotive purchases until debt-free with emergency savings.
• Start investing & catch up retirement: 20% of household income post-debt.
• Set shared financial goals and communicate weekly.

[63:26] Caleb: "If you get out of this debt, maybe I'll fund your…starting account as a reward for getting out of this…But you have to actually make sacrifices."

Timestamps for Key Segments

• Income/Occupation: 00:49–02:10
• Financial Roles & Household Dynamics: 05:37–11:48
• Cash Back Beliefs & Credit Card Realities: 06:49–15:00
• Arguments on Spending, Goals, Communication: 11:48–19:49
• Debt Discussion (student loans, car, taxes): 20:53–36:44
• Homeownership & Neighborhood: 33:40–36:44
• Vehicles & Sentimentality: 46:37–54:07
• Budget Exercise: 43:44–45:48
• The Makeover Plan: 61:37–64:00
• Caleb’s Final Assessment & Score: 64:00–65:30

Notable Quotes

• [07:26] Alex: "Yeah, but you get cash back."
• [10:04] Caleb: "You sound like Theo Vaughn."
• [12:02] Caleb: "The fact that he doesn't even know what—like a household...what...Do you have financial goals for your household?"
• [18:50] Caleb: "People think it's so, like, cute to be bad with money or something? Like, what is happening?"
• [45:48] Caleb: "…you spend likely $750 a month, which is going to be up to this new line...you spend probably an extra $250, $300 more than the average household in America."
• [55:16] Caleb: "Don't get that other debt for the new car. Well, the, the goal is—I don't give a...I've been talking about goals all day. Yeah, but this one's a stupid one. I already know."
• [63:26] Caleb: "If you get out of this debt, maybe I'll fund your...starting account as just a reward for getting out of this."
• [64:00] Caleb: "It's a Hammer Financial Score two and a half out of ten."

Tone & Atmosphere

• Caleb is blunt, humorous, and occasionally exasperated—never shies from calling out poor decisions.
• Alex provides comic relief but exhibits naive financial logic and a “dreamer” mentality.
• Alexis is embarrassed by their circumstances, aware of the issues, but struggles to enforce boundaries.
• The dialogue is brisk, candid, and often funny, but serious underlying problems are never downplayed.

Key Takeaways

• The couple’s finances are strained primarily by lack of shared goals, Alex’s impulsive spending, and persistent debt taken lightly.
• Credit card “cash back” is a trap when balances aren’t paid in full—interest vastly outpaces rewards.
• Asset hoarding (cars, motorcycles) is emotionally costly and blocks their financial progress.
• Open, honest conversations and household goals are critical to escaping financial limbo.
• Caleb’s plan: sacrifice now (sell non-essentials, minimize budget, communicate weekly) for the freedom to pursue passions and future security.