Scumbag Husband Destroys Marriage With Secret Debt | Financial Audit

Summary

Financial Audit Podcast – Episode Summary

Podcast: Financial Audit
Host: Caleb Hammer
Episode Title: Scumbag Husband Destroys Marriage With Secret Debt | Financial Audit
Date: December 9, 2024

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Overview

In this episode, Caleb Hammer conducts a Financial Audit with Jenna and Mark, a married couple from San Antonio in their mid-30s. The core of the episode revolves around their impressive household income, their bafflingly large and entangled debts ($610,000+), lack of financial communication, family financial entanglements, and unhealthy spending habits. The conversation shines a light on the dangers of lifestyle inflation, the risks of enabling family, and the psychological toll of long-term financial mismanagement. Caleb provides pointed advice and confronts them about their lack of planning and awareness, culminating in a stark assessment of their situation and a roadmap for improvement.

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Key Discussion Points & Insights

1. Income vs. Outgoing: A Disconnect

• Income:

  • Jenna: Remote HR, brings home about $3,100/month after taxes, insurance, and 401k.
  • Mark: Mechanic, $31.50/hr plus overtime, roughly $1,500/week net, ~ $78,000 net/year.
  • Mark’s veteran disability: $2,300/month.
  • Jenna’s side income (LLC via her dad): $400/week (not taxed yet).
  • Total monthly take-home (after recommended tax withholding): ~$11,900.
  • Caleb: “You guys are making double the median household income in the U.S. net!” (14:32)

• Spending:

  • Actual monthly spending (bills + debt payments): $16,848 – over 22% more than their net income.
  • Mark: “I’m sure we’re over.” (09:22)
  • Jenna: “Our bills alone is over 10.” (09:46)
  • Caleb: “You guys are spending $3,700 more than comes in, every month. This is insanity.” (10:01)

2. Debt Breakdown and Family Entanglements

• Total Debt: Over $610,000

  • Mortgage: $443,773 (2.5% fixed, large but manageable if not for all other debts).
  • Two massive car loans: Bronco ($66K), Truck ($70K).
  • Credit cards: Several thousands in balances (Best Buy, Amex, Disney, Care Credit, IKEA, Lowe’s, etc.).
  • Multiple promotional/deferred interest cards, several already accruing interest and fees.
  • Personal/family loans: Money lent/owed to/for relatives (mom's washing machine, tiny house for sister, couch for sister and mom, loan from Jenna’s mom for emergencies, construction loans, tool financing).
  • Tool debt: Mark has $22,000+ of outstanding tool financing, which was unknown to Jenna during the recording.

• Debt to Family:

  • Numerous debts, both where they pay for family members (mom, sisters) and where relatives have loans to them.

• Caleb’s assessment: “Everything in your lives is financed, down to the washing machine—you have a debt for that, too!” (49:32)

3. Communication Failures

• Mark largely checked out of the household finances, traveling for work, transferring spending money to Jenna, and not paying attention to details—even major debts for tools.

• Jenna manages all bills, but rarely reviews statements for interest or fees.

• Neither tracks spending closely, nor sits down for regular reviews.

  • Jenna: “We just aren’t one of those couples who say, ‘can I make this purchase?’” (11:24)
  • Mark: “I left it with her… when things get bad she’ll tell me.” (16:23)
  • Jenna: “It’s just been easier… lazy on me.” (22:06)

• Moment of discovery:

  • Mark reveals (somewhat sheepishly) that he has $22,000+ in tool debt; Jenna is shocked.
    • Jenna: “Are you being serious?” (69:22)
    • Mark: “Yeah.”
    • Caleb: “You didn’t know this? That’s an insane debt.” (69:24)

4. Lifestyle Inflation & Poor Prioritization

• Both own new, expensive vehicles with massive monthly payments (~$2000 total), largely justified by having to roll in negative equity from prior purchases, needs for horse towing, etc.

• Justification for Bronco: Needed a “reliable vehicle” after old truck died; but rolled $13K in negative equity from an expensive motorcycle and truck instead of seeking more affordable options.

  • Bronco value now: $46K; still owe $66K (20K upside down) (37:12)
  • Truck value now: $53K; owe $70K (17K upside down)

• Caleb: “There’s no reason to put our household in such a risky position. You did not need a new car.” (35:08)

• Regular use of credit for groceries, gas, and even family members’ appliances, generating interest with little awareness.

• Horse costs: $5,000 for the horse, several hundred a month in feed/vet/trailer costs.

  • Mark: “I’ve tried to sell him. He’s got something going on with him.” (60:32)
  • Caleb: “You can’t afford it, so why not just go free as long as someone does transportation?” (60:45)

• Reliance on “emergency” credit cards, minimal emergency savings (now depleted), and unsustainable spending as a lifestyle.

5. Deferred Interest, Late Fees & Tools

• Multiple “0% interest” promotional plans coming due, about to add retroactive 29%+ interest if not fully paid—some ending within months.

• Numerous late fees and accrued interest across cards—often unknown to Jenna as she does not check statements.

• Tools: Mark finances his tools for work through high-interest truck-based lenders (~19%).

  • Caleb: “Minimum payments are $670/month. For tools. You didn’t even mention this?” (69:56)
  • Jenna: “I did not know how much the tools were.” (93:30)

6. Generosity, Family Fossilization, and Enablement

• Couple has deeply mingled family finances—help their sisters/mothers but take on the loans/debt risk in their own names.
• Construction of tiny home (from a storage building) for Jenna’s single-mom sister, financed at 11%+ and paid by the sister, but risk is on them.
• Jenna: “We just want to give everybody the benefit of the doubt. We want to like help as many people as we can.” (55:22)
• Mark: “That is the downfall.” (55:38)
• Caleb: “You guys have allowed so much to go so wrong and destroy you guys.” (55:22)

7. Future Planning (or Lack Thereof)

• Only ~$4,000 in retirement savings between them.
• College/child fund: only ~$2,000, might reach $4,000 by graduation if invested.
• Caleb: “With the paid off house and everything… you’ll need at least $1 million to survive.” (81:14)
• No meaningful plan to resolve water issue: $22,000 well debt for undrinkable water, plan to eventually connect to city utilities for double the cost.

8. Action Steps & Recommendations

• Budgeting:
  • Caleb provides his budgeting/educational courses to Jenna and Mark free of charge and urges them to take them together.
• Spending Plan:
  • Prioritize paying off deferred interest debts before interest hits.
  • Snowball method for smallest balances, after deferred interest paid.
  • Eliminate all non-critical credit cards (they’re “not credit card people”).
  • Strict tracking and mutual involvement; monthly “financial state of the union.”
  • Drastically reduce lifestyle spending (restaurant, subscriptions, tools, horse, etc.)
  • Consider selling the Bronco and/or truck, even if at a loss, to reset cash flow.
• Communication:
  • Couples must both engage with finances—not just when “things get bad.”

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Notable Quotes & Memorable Moments

• On their financial blindness:

  • Caleb: “You guys are spending 22% more than comes in, on a very strong income. How are you not having these conversations in a decade and a half?” (14:04)
  • Jenna: “Robbing Peter to pay Paul… when I run out of robbing Peter to pay Paul, [then I say] ‘hey, things are really hard.’” (17:33)

• On deferred interest traps:

  • Caleb: “You keep saying you have no interest, but look… interest has been accruing for months. Looking at a statement takes five seconds.” (25:04)

• On car loans:

  • Caleb: “Over $1,000/month for a Ford Bronco. Everyone has one. They’re every other car.” (31:34)
  • Jenna: “The motorcycle we were spending over $700 for, to sit in the shop and collect dust.” (32:04)

• On their communication:

  • Mark: “I left it with her… after that, I don’t really…” (16:27)
  • Jenna: “It’s just been easier. Lazy on me.” (22:04)
  • Caleb: “How can you be half invested in these conversations for your household, though?” (21:41)

• On tool debt bombshell:

  • Mark: “Pretty sure it’s like $22,000” [tool debt] (69:11)
  • Jenna: “I did not know about that!” (70:00)
  • Caleb: “That’s an insane debt.” (69:24)
  • Caleb: “Debt just no longer has any impact on you because you’ve just lived that life… debt means nothing.” (70:20)

• On enabling family:

  • Caleb: “You gotta stop. Stop putting the risk in your corner. You have a kid!” (48:05)
  • Jenna: “We just want to give everybody the benefit of the doubt.” (55:22)

• On retirement outlook:

  • Caleb: “Both retirement accounts were at $4,000. How are you going to survive?” (81:04)

• On their outlook and hope:

  • Caleb: “You guys are beyond lucky that you have an incredible household income to deal with [the debt] in four and a half years. For the amount you’ve fucked up, your debt life is not that bad of a sacrifice. But you’re in a five year hole.” (88:45)

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Key Segment Timestamps

• Intro & Income Overview: 00:26–04:50
• Job Change & Lifestyle Drift: 04:50–09:00
• Spending vs. Income Reality: 09:22–10:41
• Debt Total Revealed: 10:31–11:48
• Family Financial Entanglement: 20:01–26:30
• Bronco/Truck Rationalization: 30:44–38:17
• Tool Debt Confession: 68:39–70:20
• Retirement & Child Savings: 80:52–81:28
• Budgeting Roadmap: 84:00–92:16
• Final Assessment & Hammer Score: 92:16–93:30

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Tone & Language

• Caleb’s tone is a mix of incredulity, tough love, frustration, and comedic relief, especially when pointing out absurdities (“You guys have a horse!?", "You didn’t know there was $22,000 in tool debt? That’s insane.”).
• Jenna and Mark alternate between resigned, sheepish, and sometimes defensive, but also show moments of self-awareness—especially as the depth of their household debt and entanglement become clear.

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Summary Statement

This episode serves as a masterclass in the risks of unchecked spending, enabling family at your peril, and letting years of minimal financial communication erode stability—even with a strong income. Caleb’s tough love pushes Jenna and Mark to confront their reality, encouraging transparency, accountability, and a total overhaul of their financial management.

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For more on their journey, follow Caleb's Financial Audit Follow-Up Channel—Jenna and Mark’s progress should be instructive for anyone at risk of letting lifestyle creep and family obligations derail financial security.

Transcript

[A]

To watch episodes of Financial Audit a week earlier. Check us out on YouTube.

[B]

How much you.

[C]

Oh, pretty sure it's like thousand to.

[A]

One and tool debt.

[C]

Yeah. That's all sake.

[B]

Can you hear it?

[C]

Yeah.

[A]

You didn't know this? This is an insane debt.

[C]

I wasn't really thinking about it.

[A]

Thoughts? Comments, Concerns?

[B]

Hi, my name is Jenna. I'm 36.

[C]

I'm Mark. I'm 36. And we're from San Antonio.

[B]

And this is Financial Audit.

[A]

You are real southern, aren't you? Yes, you are. You are full southern.

[B]

That was Kentucky.

[A]

Okay. Well, I love having a couple on. This is super exciting. It's not every day we get it. So let's just start household out. You know you're directly in front of me. So Jenna, what do you do for a living? San Antonio.

[B]

I work remotely. I'm in HR.

[A]

Okay. How much do you make?

[B]

50.

[A]

Cool. And what about you? What do you do?

[C]

I'm a mechanic. Working on stuff?

[A]

Yeah. How much do you make?

[C]

31.50 an hour.

[A]

Okay. Oh, an hour. Okay. Cool.

[C]

So. I know. I don't know yet.

[A]

What do you mean you don't know yet? Why is this Just started.

[C]

Yeah.

[A]

You have paid time off. No, no paid time off. So let's say you were. What are you going to say? 49 weeks a year? 50 weeks a year. If we average this out 40 hours.

[C]

A week, I don't know. Well, they're giving us two weeks off at the end of the year.

[A]

Oh, okay.

[C]

Usually that, that's something.

[A]

But it's not paid.

[C]

No, it's paid. Yeah.

[A]

This time that's paid. Okay. Are we thinking 40 hours?

[B]

He works overtime a lot.

[C]

Yeah.

[B]

So for the most part he's working overtime.

[C]

Yeah. I work 55. About 55.

[A]

How long have you been doing this job?

[C]

Like six months?

[B]

May.

[A]

Okay. We should kind of know what's coming in, right?

[C]

What do you think average as far as like weekly? I mean it's about 50, 1500 bucks a week.

[A]

It's a week. That hits your account.

[B]

Yes.

[C]

Yeah.

[A]

Okay. You get paid weekly?

[C]

Yeah.

[A]

Gotcha. So pretty chill. If we average that out 52 weeks, you know. 78, 000. Okay. Net not bad at all. So about 65.

[B]

And my bring home after taxes and insurance and 401k and all those things is 31 and some change a month.

[A]

Cool. So we are looking at a household. There's good of 9,600. What's this?

[C]

More disability.

[A]

For what?

[C]

It's veteran disability.

[A]

Oh, you served. Okay. What did you Do.

[C]

I was a mechanic there too.

[A]

Okay, cool.

[C]

I worked on tanks or branch the army.

[A]

Very cool. And what comes in monthly for that?

[C]

I think it's like 2300.

[A]

Okay. Now basically I will say this. Every single veteran that has ever been on this show has disability. This is very common.

[C]

Can I ask what some is physical and the rest of it's PTSD.

[A]

Okay, so total we have 11,900 that comes in on a monthly basis.

[B]

And then I work for my dad.

[A]

Which is confusing because again, this is all sounding so good so far. I'm so happy. What are we. We're five minutes in.

[B]

Yeah.

[A]

That's wonderful. Look at that, guys. We're having such a good time. This is so good. We're making so much money. I have no idea how we're in the like. This is a fat stack. We did a fat stack week where we had like the most paperwork in the show history. You belong in that week. So all this income that is coming in, I'm like, how are we in this? So what's this extra income?

[B]

So I work for my dad as well. I do his books and that's paid through an LLC. So that's 1099. So that's $400 a week.

[A]

Okay. You're setting anything aside for taxes from that?

[B]

No.

[A]

Have you ever paid taxes on that?

[B]

I have not prepaid taxes on this.

[A]

No. Have you ever paid taxes on that?

[B]

I. No. So this is new as well.

[A]

Okay.

[B]

Our life drastically changed recently. So he had a very high paying job and lost it in March.

[A]

So we have a high paying job now. What. What did we consider high paying? Very high paying.

[B]

He was like bringing home 160.

[A]

I mean, that's delicious. But I'm gonna be. I know it sucks to take a step back. I really do. You do still make very good.

[B]

Yeah.

[A]

Especially in kind of the cheaper major city of Texas. By the way, out of all the major cities, you know, we're looking in the cheaper part, so. But okay. I mean, if you're trying to sustain your lifestyle and what happened when you're making $30,000 more because you're probably, you're still probably making pretty darn close to a hundred thousand dollars before taxes. So, you know, net, you know, maybe like $20,000 different. Yeah. If we have you guys just not touched your lifestyles? The lifestyle just like we eat.

[C]

No, it's, it's changed. It's just we're taking care of stuff that when we were still in that lifestyle, just kind of stupid.

[B]

A lot of Our.

[A]

What was it?

[B]

Is like this. The promotional stuff. Right. So we're.

[A]

Who falls for this? Who falls for the promotional stuff?

[B]

We have never had to pay for the. The deferred interest stuff. We've all.

[A]

Okay, well, that's a minimum, to be clear. Yeah, that's a very basic minimum.

[B]

Yeah. So. But yeah, we have a lot of those. We have a lot of those. Promotion.

[A]

Yeah. But we also have two car payments added up for basically the same price as your mortgage.

[B]

Yes.

[A]

Which is the most insane thing I've ever seen in the history of today.

[B]

Yeah.

[A]

So I don't think it's just the 0% cards that we're sometimes good with, but we continue to rack up forever. But the promotional things. Who's signing up for this? Or is it both of you? Is there usually one.

[C]

Cause here, some of them it's just medical or something like that.

[A]

Medical.

[B]

As far as the big one is carecredit that we have.

[A]

And that's medical.

[B]

Yes. So he had his first back surgery at 25 and.

[A]

Wow, 25.

[B]

Yeah. And they. The VA wants to do like a invasive surgery like rods and everything. And I'm like, you're 36. We're not doing that. So we looked into QC Kinetic and we did that. It is very expensive.

[C]

But it's not.

[A]

Yeah, but why are you also against the surgery that the doctors are called Mobility. Mobility.

[B]

And his.

[A]

For permanently or.

[C]

No, but like. No, you're not bending over. You're not turning.

[A]

Like for how long?

[C]

That's gonna.

[A]

Oh, that's forever.

[B]

Yeah.

[A]

Would that make it hard for your job?

[B]

Impossible for his job?

[C]

Yeah, that's not happening.

[A]

Okay, so an extra 400 comes in a week. Yes, but you haven't set anything aside for taxes.

[B]

No.

[A]

I mean a tax bill will come.

[B]

Yes. And I have. My last job was a 1099 job.

[A]

We're talking actually $20,800 a year. So even still, I mean, taxman might come and tax man might be like, you owe an extra 6,000.

[B]

And I do put that into.

[A]

Wait, did I, did I was there like substantial savings? I don't remember.

[B]

No, there's no. So what comes. So what happens when you do everything.

[A]

So what happens when this tax bill comes due?

[B]

Yeah, yeah, yeah. Prepared for that.

[A]

Okay. But what I will include your income. I'm going to set the 30% aside. What I will allow is 280 coming in a week because you need to set 30% of that aside. Okay.

[B]

Okay.

[A]

That is a basic minimum. You guys do not touch that money until 30% of it is set aside.

[B]

Okay.

[A]

At a minimum, obviously, for this whole year. When did you start?

[B]

That was in July, probably.

[A]

Okay, so for these last six months, I mean, you're gonna have to write a check.

[B]

Yeah.

[A]

Now maybe one of your jobs, or do you guys file jointly?

[B]

Yes.

[A]

Okay. Maybe one of your jobs. Maybe you're contributing a little too much to your tax file, and then they'll make the burden a little less.

[B]

He does take some out of his Extra.

[A]

Extra?

[B]

Yeah.

[A]

Like, why would you want to do extra?

[B]

But the previous job, he was taking extra out.

[A]

But what about this?

[B]

No, not with this one.

[A]

So like standard deduction. And then you're.

[C]

Yeah, that was. That's it.

[B]

Yeah. And then we do write a lot of stuff off with. With our taxes.

[A]

Hold on. Yeah, but the only thing that's your business is the llc. So what. What are you writing off and so business.

[B]

Our. We run our business as a consulting.

[A]

What's your business?

[B]

So it's what.

[A]

What business are you talking about?

[B]

So I have an llc, and that's where.

[A]

But you. But that's the vast minority of your income.

[B]

That's.

[A]

So you're bull.

[B]

I mean, kind of. Yeah.

[A]

Yeah. So a little taste of the lot. It happens.

[B]

We're. We're putting. So like he does side jobs too, on the side. So like anything that is paid in addition to like our regular W2S is put into the LLC.

[A]

Okay. Well, an extra $14,560 a year after you set aside money for taxes because you just don't want to yourself. Why yourself when you don't have to yourself? So we're bringing in an extra $1,213. Okay, good. Which again, good money. I'm happy. Guys, it's a. Other than that little tax thing we've talked about so far, positive story. Great. The paperwork in front of me is not a positive story. So we know how much comes in now after setting decide money for taxes. How much do you think was spent in the most recent month? What was spent? Money going out.

[C]

Yeah. I don't really know. I'm sure we're over.

[A]

What do you think? You had to guess. Look at you feel your lifestyle.

[C]

How much.

[B]

And this includes debt payments, including bills, everything. Like what goes out?

[C]

I mean, I'd probably say 12,000.

[A]

Okay, so you'd say less than the 13,000 that comes in. What would you say?

[B]

I know our bills alone is over 10.

[A]

Just minimum bills.

[B]

Bills for good.

[A]

Okay. Just like, why would we put ourselves in that position, Guys? Okay. Okay. How much?

[B]

I would say we probably spent 12, so.

[A]

12? 12. 12, 12, 12, 13. $16,848.34. It's not even close guys. This is a substantial, substantial difference. 13,113 comes in. 16,848.34 goes out. It's an extra 22% spending. An extra 22% spending all that by the way. Well, we're looking at $610,000 of debt.

[B]

Yeah.

[A]

So we're spending 22% more than comes in on a great income. Well, we have multi hundreds of thousands of dollars of debt. What is going on guys? I know we had the little job loss thing but with where we are today, we. What is going on? What am I looking at? Why are we self confessed where your brain is? I would love to know where you think you are because obviously you don't know you're spending. It wasn't even close. So what is going on from your all brains?

[C]

Well, I don't know. I mean it could just be miscommunicating too. As far as what we're talking about or as far as money or even getting spent.

[A]

What do you mean miscommunicating? What's the communicating. How does it.

[C]

Well, I don't know. It's not being talked about. You know if it is ordering stuff or anything like that.

[A]

What's not being talked about?

[B]

Like if you order my spending.

[C]

Yeah.

[A]

Oh like if you. If she buys something.

[B]

It's not even stuff. We just. Yeah. Like we are not like one of those like where we like hey, can I purchase this?

[A]

It's not even a hey. Permission for every single purchase. It's more of a understanding where money's going sitting down, looking at the budget. Understanding where the money went and discuss where it went and what we need to address for the future. A month. It's not an individual purchase.

[B]

We Wait.

[A]

How can you not have that you've never had. How long have you guys been married?

[B]

Fifteen years.

[A]

Good. Do we have any kids?

[B]

One.

[A]

Oh, age 11.

[C]

Yeah.

[A]

Okay. How are we setting up for their future right now with this. That not right now. Not do they have any kind of fun. Not that you need to but do.

[B]

They have a very small one?

[A]

What we're talking very small. What. What are we saying?

[C]

May have a couple grand.

[A]

Okay.

[C]

I think we thought more by the time he graduates was long term thoughts is like you know as far as the investment, as far as property, the house and stuff like that.

[A]

The house with the house still has a large Mortgage. And even still, like, as they go through things, as if we continue right now, again, debt is going up. So it's how we're able to sustain things. But we have seen throughout the history of humanity and debt and spending and even on this show, what we do, we overspend. You get to those limits, you hit those limits, and all of a sudden payments start going through. Sometimes that ends up being mortgage. Maybe take that mortgage payment to it, put it on the back of your mortgage, but eventually that option starts to run out. Then you get a foreclosure notice. Then, oh, kid, no more house, no more assets to be able to pass down, if that is the main goal of that. So ourselves in all these other, other categories could be preventing us from. From being able to pass on what we actually want to. And of course, that 2000 is going to grow to like 4000 by the time they go off to college, if it's properly invested. So, okay, they have a quarter of a semester covered. You know, half of a semester.

[B]

Unless she's going to be like a doctor or a lawyer or something to where she has to have a college degree. She doesn't have to go to college. No.

[C]

And we've never really thought about it as far as college. I didn't. I mean, I win.

[A]

Oh, okay. It's just a setup account for them in general.

[C]

Yeah.

[A]

Okay. For her in general.

[B]

Yes. Because like, trade school, like, we are all about, like the trades, right?

[A]

Sure. Whatever you want.

[B]

He.

[A]

Well, what does she want? She's 11. You don't.

[C]

Right.

[B]

She's 11. She still wants to be a singer, like.

[A]

Sure. Okay. Well, even still, this is whatever you want to set up for. Not that you are required to, but, you know, wants to set up for something, right?

[B]

Yeah.

[A]

And really putting that back. And you guys have such a strong income where you could be setting up substantially if you really wanted to, but you can't. If we're spending 22% more.

[B]

Right.

[A]

Then comes in on a very strong income because net, you guys are still looking. I mean, 13,000, 113 times that by 12. Net, we're bringing in 157,000. That's insane. That's incredible. That's delicious. I would have taken that every single year of my life and been living on the top of the world. That's incredible. Do we not realize how incredible that is? That's like incredible.

[C]

I mean, we know it's double the median.

[B]

Yeah.

[A]

Your net is double the median household income in the United States. Your net.

[B]

Yeah.

[A]

Is double the Median gross household.

[B]

And I guess it's just hard for me to fathom like, I mean like, I understand, like we are definitely spending more, way more than we should. It's mind blowing to me how people are surviving on, you know, 30,000, 40,000.

[A]

Thing is, people can survive. Yeah. If they track their. It gets hard, it gets scrappy. They take sacrifices. Absolutely. I don't even saying it's like yay, yay, yay, great living. I'm not even saying that. But people are able to survive, right. Because they actually sacrifice in the budget. So why have you guys not communicated at all? Why have we had these conversations in a decade and a half? Running a small business, I get it. Paying bills can feel like death. Endless paperwork, late fees. I've been there. But. But that all changed when I found the sponsor of today's video, Melio, a tool that takes the pain out of paying vendors. What really sold me, you can even use your credit card to pay vendors who don't accept credit cards for a 2.9% fee. And that means maximizing cash flow, grabbing rewards, and avoiding those nasty late fees. And the setup, it's super easy. You can pay bills, schedule payments, and even send payments internationally, all from your phone or desktop. Melio syncs seamlessly with quick QuickBooks so you're not wasting time on double data entry. Need your vendor paid right now? Melio offers same day ach and instant transfers. And the best part, your vendor doesn't even have to sign up to get paid. If you're tired of payment headaches, check out go.melio.com calebh24 or check out the link in the description below. And start using Melio's powerful tools to boost efficiency, gain more financial control and peace of mind when it comes to your finances. Trust me, it'll change the way you handle your business. Payments start for free now.

[C]

Well, I think it's more. I mean, most of my jobs I've been gone or I'm on the road a lot.

[A]

Okay.

[C]

And then so I just kind of left it with her. And then because I transfer, I transfer money out that, you know, what I spend or whatever, whatever the weekly deal is. And then after that I don't really.

[A]

Do you have no desire to be informed to your financial position of the household?

[C]

I mean, I do. It was just a lot. When things get bad those times. Yeah.

[B]

When things get bad or things.

[A]

How do you even know when things are getting bad or tight without looking and being well then.

[C]

Because then she'll come and tell me like, oh, no.

[A]

So how do you manage it? He puts it in your hand. So what does it look like from your end?

[B]

I pay the bills, and then what's left is, like, our surviving money at this point.

[A]

Surviving, but there's nothing left.

[B]

There's nothing left now. And so in March, whenever he lost his job, that's whenever he actually started seeing the numbers and seeing what was going out and what we needed to bring in in order to just keep everything afloat and not damage our credit and not lose anything. And so whenever I run out of robbing Peter to pay Paul, whenever I.

[A]

Run out of rob, you're very.

[B]

Then I'm like, hey, things are really hard. I need. I need another opinion. I need another set of eyes. What are we going to do?

[A]

You guys need to be in this together, right? And that just means, like, even if you are busy on the road, you got to step in and have a little call, you know, I'm literally just talking once a month, even for a couple hours, you know?

[B]

Yeah.

[A]

Really, Just for a couple months. Obviously, we're gonna put you guys through all our classes, take them together, go through the quizzes together, learn how to budget together, learn how to invest together, learn how to pay off debt together. You guys get them for free. Do them. They're all 15% off for y' all right now, bundled together. But you guys get them for free. Please take advantage of them because we have people that come on the follow up channel, the financial audit follow up channel, all the time. And even if people have made progress or haven't made progress, oh, no one takes them who get them for free because, like, you need to have the drive, and the people that purchase them, they have the drive to take it. But I don't know, so many people aren't taking it. It's becoming really disappointing. But over 10,000 people have purchased and taken them. So please take them. Do this together. You guys are a partnership. Self assessed. We're about to jump into the first, the Best Buy card, but self assessed, I'm going to go. Three, two, one, go. And on go. I want you guys to give me at the exact same time where you think your household financial score is.0 being the absolute worst that exists in the entire world, 10 being the absolute best that exists in the entire world. Three, two, one, three. Okay. Pretty close. Two to three. You were just having to endlessly borrow Paul, Peter, those biblical names.

[B]

Our only saving grace, I feel like, is our house.

[A]

Sure. So you think that's boosting you there? Okay.

[B]

A Little bit. Yeah.

[A]

And it actually might. I would be more inclined to go with your two because of the real estate. But everything else is really taking it down. We will see where it is.

[B]

So question because you think that it's a 2 because of the real estate. Is that because of the type of real estate that we have and you feel like it's not a necessity or.

[A]

I don't know what kind of real estate you have.

[B]

Okay.

[A]

I'm just assuming if you're 0 and 4 of the 5. 4 of the 5 categories. The like, even if you have a great real estate score, it's only. Yeah. Because again, you're saying that you're endlessly borrowing until you can no longer borrow. And we're getting closer than no longer borrow.

[B]

So I don't think so. It's not. Whenever I say robbing Peter to pay Paul, I'm not taking out more loans to pay other.

[A]

I know. But these balances are going up. Like the best buy, for example, 809 to 2870.

[C]

Pushing 1.

[B]

So that is actually his mom's washer machine that we just put on there.

[A]

What? Why would you put your mom's on there? What's happening?

[B]

We have a lot of like, as you like to call it, incest debt.

[A]

Incest. Do I call it that?

[B]

Yes, you have.

[A]

I say a lot of weird things. I have such a way with the English language. I don't even know what I say half the time.

[B]

So we have 10 acres and my sister became a single mom a couple years ago and she was living in Colorado by herself. And we said just move back. So we took out a construction loan to convert us storage building into a tiny home for her. And we put.

[A]

She couldn't crash off bedrooms is in.

[B]

Your guys's house what I have. We have a three bedroom house. And at the time his mom was still living with us.

[A]

But why are we buying a washing machine for the mom?

[B]

So now mom lives back in Texas and she just moved onto our property.

[C]

I think that was more a put on a card. I'm not really sure. I didn't even know that we did that.

[A]

You didn't even know?

[C]

No. Don't give me that. I didn't know it was on the car.

[A]

Well, why didn't he know? Why aren't we talking?

[B]

He does know. I'm sorry.

[A]

Nope. It is Mark. His name is Mark.

[B]

Mark also.

[A]

His name is Mark.

[B]

Mark also has a really bad habit of halfway being invested in these conversations. Because it's a financial conversation.

[A]

It's A heavy. So.

[B]

Because he doesn't have that interest of, like, being involved in this. Whenever we talk about things like this, it's like. Or even if he's just like, in the room while his mom and I are having this conversation, it's like a half. Like it's in one of your.

[A]

Is that even a choice? How. How can you.

[C]

Well, I don't. Yeah, cuz you said the same sometimes, I'm sure. But. But. But I don't remember. I don't. Well, I don't remember that either.

[A]

But do you have the choice to only be half invested in these conversations for your household, though?

[C]

No.

[A]

So why would you say you're half invested? What does this look like from your end?

[B]

It's just been easier.

[C]

Yeah, it's been easier. So, I mean, it's just kind of lazy on me. But like I said, some of that stuff I don't remember.

[A]

You guys are drowning. We really just don't have the, like, ability to be lazy.

[B]

We don't pay for that. She pays for it.

[A]

Yeah, but it's on your credit and she has to pay you credit. So she.

[B]

She goes online directly.

[A]

Okay, what happens if.

[B]

Yeah, yeah. Then she has a life insurance policy that is written to him.

[A]

Okay.

[B]

Yeah. Okay, now if.

[A]

Still risky. Could miss a payment. Dings your score.

[B]

Yeah. Now if my dad, who pays the loan for my sister goes, then is this.

[A]

Is that loan here?

[B]

Yes.

[A]

Well, this is all a big mess. Okay, so this Best Buy, which I guess is Mom. Well, first of all, there's already $809 on there. So was that all mom as well?

[B]

No, no, no, that was exactly. I don't even. Honestly.

[A]

So we're at $2872.54. There is interest occurring $2.55. I'm sure that's the older pages again. You talked about at the beginning how interest on. Oh, yeah. And there it is. Because you talked about at the beginning how. Oh, we're interest free.

[B]

Well, I've already paid the. Okay, I need to look at it.

[A]

Yeah, you need to, like, look at the accounts once a month.

[B]

Yeah. At a minimum, like, this is like a $5 balance.

[A]

The order that these episodes come out are weird, but I literally just filmed an episode yesterday with one half of a relationship, and they also thought that, like, no interest is accruing. He was missing payments and interest is occurring. Yeah, you just literally have to look. It's as simple as. Look, guys, you are the one in charge of the finances, whatever that is. The relationship that you guys. And you're half into the finance. Okay, okay. We can throw these things around. Sure, sure, sure.

[B]

Right.

[A]

Why don't you look at the very least as the one who has been determined by both of you to look at the finances.

[B]

I'm usually pretty good about looking at.

[A]

Okay. But you didn't even know interest is accurate on this card.

[B]

Yeah. How much interest is occurring?

[A]

$2.55 is probably the previous balance, not the new stuff. Your new purchase was probably 0%, but that past stuff is accruing interest.

[B]

Got it.

[A]

I'm assuming. Let's take a look at it again. Now your minimum depayment and these are going to get chunky. We're starting with a minimum one but we're going to add like 1000 billion of them. $32.38. We're going to be here until tomorrow morning Probably. Okay.

[B]

Yeah.

[A]

$21 of interest this year so far. So interest is agreeing on a monthly basis all year so far.

[B]

Okay.

[A]

Yeah. And that interest that is accruing is on $145. Something that we could wipe out like that with your income.

[B]

Yeah, like that. And normally, like normally this has been a year. Yeah, Yeah. I don't know.

[A]

No, no, no. There's no normal. It's been a year.

[B]

Yeah.

[A]

Like normally would happen within this year. We are the second to last month of the year.

[B]

Yeah. No, I need to find out what it is. Is. It doesn't matter. Is it still accruing?

[A]

Yes, every month. 255. And you've accrued this year $21.97. Is that the biggest thing in the world in terms of monetary impact to you? Not even close. But it shows. It demonstrates that you don't know a single thing about your finances. Even though you are the one that has been self crowned and crowned by him to be in charge of the finances. But we didn't even know all year. Interest is grewing on a card when taking a look at a statement takes five seconds. Yeah, that top of a statement takes five seconds.

[B]

Honestly, I don't even look at statements. I just go online and look at the promotional purchase thing. So that's where.

[A]

And look where that led us. Okay. I mean one of the interest free things is going to end in literally. Oh, two of them are going to end in basically a month.

[B]

Yeah.

[A]

Okay. The deferred interest on those so far are approaching $350.

[B]

Yes.

[A]

So we have to pay a total of about 350 as well is what the balance is. About the same amount of interest is accrued as the balance, so it'll double if we don't pay in a month and a half. We are spending 22% more than we make sure. You could open up a new debt. You could transfer this to another debt. There are things like that, and that might be what you do, but if worse came to worse, in what world would you guys be able to pay this with your current lifestyle? No, none, none, none. And how you guys have made it so far, I have no idea. Also, you had fees of $2 this year so far on this card.

[B]

Okay.

[A]

Crazy monetary impact to you. No, but just more demonstration of you don't know what's going on. Also, I forgot to say, guys, if you want your Hammer Financial score, it's fun, it's free. Link in the description below. Check it out. And then come on down here to Austin, Texas. Are you guys having fun so far? Getting a little yell, a little verbal punching, but, you know, we get their. You know, we get the permission for. And then you guys get to come hang out with Lindsay and J. Jake. They'll take care of you. They're lovely people, aren't they?

[C]

They are.

[A]

Oh, yeah, yeah. Yeah. Well, I guess you probably didn't really see Jake yet, but Lindsay, she's great. And then Jake exists as well. So. Yeah, go to calebhammer.com apply come hang out with us. Okay. And then two more deferred, and that's gonna go for one until 2026, one until mid next year. Okay. They're all sitting at about 29 interest when they hit, including the one that is already hitting. Huh?

[B]

I said yeah, yeah.

[A]

Okay.

[B]

Plus because. I was saying plus the deferred because it like.

[A]

Yeah.

[B]

Oh, yeah.

[A]

Oh, yeah. Okay. American Express Gold card. How do you guys share these? Or look at these cards? Because there are many accounts, many cards. How are we doing them together? And what does this look like?

[B]

So, like, what do you mean? Like, what is like, is there like.

[A]

A my card, a your card and.

[B]

Our card, we use them all together.

[A]

So you all have like, access. Okay.

[B]

Yeah.

[A]

Okay. American Gold card on here. Huge balance.

[B]

Yeah, that was getting crazy.

[A]

$3,107.91. And then a minimum of the payment of $99 again. Stacking, stacking quick.

[B]

So that one is the one that before he lost his job, we were using that to pay our bills and then pay the full balance. And we were paying the full balance every sing religiously and then.

[A]

Yeah, but you should have been able to do that for about Six more months. Because you would have had a six month emergency fund. Like adults.

[B]

Yeah.

[A]

So where was our emergency fund?

[B]

We had about a three month emergency fund.

[A]

And.

[B]

And it got emergencied.

[A]

And then you had to start using this card without being able to pay back.

[B]

No, no, no. We. No, that. That card was other cards that. No, we didn't use other cards we had.

[A]

How long were you in between. No job and job?

[B]

April. Well, March was like the middle of March.

[C]

Yeah, I started in May.

[B]

April. May. So two months.

[A]

Okay, so that six month emergency fund covered you and then probably a little bit of unemployment.

[B]

He got no unemployment.

[A]

Okay, how long are you in your previous job?

[C]

Some side work too, though that kind of helped us feed that.

[B]

And then I started my job in April.

[A]

Well, guess what, guys? Interest is accruing on this.

[B]

Did you know that? Yes, I do know that.

[A]

Then why are we allowing this? Why are we existing in this instead of. What you could do is pay it off if we didn't?

[B]

Because I was paying. I was focusing on my care credit to get that paid before the promotional balance hit of care credit. Yes.

[A]

When does that end?

[B]

That. November 22nd.

[A]

Okay. In a week. Less than a week? I think just about.

[B]

It was like 300. No, no, I'm sorry.

[A]

This should be nothing. For you guys it's not an insignificant amount of money, but for you guys it's nothing.

[B]

3, 6, 7, $800.

[A]

Still easy for you guys.

[B]

We have been paying like 900 and something dollars a month for that card to get it to. To Kit Mar. Well, it was his back. And then why are you guys waiting.

[A]

Till the last minute again? You guys have the ability being like.

[B]

Our regular payment, like to the non or the promotional purchase payment. Right?

[A]

Like divided by $900 a month. You guys could have done more if you wanted to.

[B]

We. Whenever he lost his job, then we paid like the minimum card payment on it while he lost his job. And then now we were like catching up.

[A]

Okay.

[B]

And there are. And then like we use it for the vet and for the dentist because then he had a crown and then my. And then our daughter had cavities.

[A]

Okay, okay, okay.

[C]

All right.

[B]

Care credit's a big one.

[A]

Okay. Interest charge this year, Safaria. And that's at 10%.

[B]

Yes.

[A]

Low for credit cards, but not good. Opposite of low. What? The Ford Bronco that has you written all over it? Bronco man. Okay, well.

[C]

Well, I mean.

[A]

Well, you're apparently obsessed with getting an insane debt.

[C]

Well, the truck would have put us in debt too.

[A]

What?

[C]

So I got rid of a truck and a motorcycle and got the Bronco.

[A]

What were those? Because this isn't even close to good compared to most people that come on this show. Come on. This balance is crazy. Look at this, guys. We are at 66. 295.28. And that's considered good after a truck and a motorcycle. What were we looking at before?

[C]

No, it was still. No, it was still bad. But it was just how much money we were putting into the old truck.

[B]

The truck was a 2006. It had like 300, 000 miles on it. And we needed to play just put.

[C]

Like 10 grand in it.

[A]

You just got this car.

[B]

No, no, no. The old truck.

[A]

No, you just got this car.

[B]

Just got that. This was. Okay. This was like our.

[A]

The payment's over a thousand dollars a month. Over $1,000 a month for a Ford Bronco. Everyone has one. They're every other car.

[C]

Everybody's got a Tesla too.

[A]

Yeah. And it goes faster than yours.

[C]

Yeah.

[A]

People will hate me for that in the comment section, by the way.

[C]

Yeah.

[A]

What?

[B]

So to us, this was kind of like a saving grace. And I know that that sounds $2,000 a month.

[A]

Go ahead.

[B]

So the motorcycle we were spending over $700 a month for to sit in the shop and collect dust. Right.

[A]

Get rid of it. This doesn't have to. This wasn't equal. I don't understand. Selling you went from two to one. The motorcycle's inconsequential. Black Friday starting today. Black Friday starting today. All the way.

[B]

6.

[A]

You get our entire educational class bundle for 33% off. You also get 20% off everything else, including merchandise. I've even added four new sections into our budgeting class which is cementing it as the best budgeting program online. There's a reason why we have the lowest refund rate in the entire industry. Literally over 10,000 people have taken our educational services and they have changed their lives. And as an added bonus for this Black Friday couple weeks sale, the first 250 people to purchase the bundle will get access to a private live Q and A where I go over my entire financial strategies. Change your life today. 33% off. 20% off. Depends on what you get. Check it out links in the description below.

[B]

So we got rid of the 2006 truck and the. And the motorcycle to try to. We use the truck to try to eat up some of the negative equity from the motorcycle. And we traded in to get this because the truck was going to cost. We'd already put ten grand into the truck at that point.

[A]

That's easy too, because you could have got a $10,000 used car.

[B]

How? Well, what would we have done with the negative equity?

[A]

Well, how much was negative equity?

[C]

We were negative almost 14.

[B]

Yeah, like 13 and some.

[A]

Yeah, yeah.

[B]

I mean, it was a $30,000 bike.

[A]

Again, I would rather have a 24,000 hour loan than a 66,000. Of course you would be dramatically negative. But what's the value of this right now? Do we know six months later?

[B]

I don't know what the value is. I have not even looked because I know that we're upside down.

[A]

Do we have it by chance, the equity, the value of this car?

[B]

I know we're upside down on it because sticker price we paid over what the sticker price is on it because.

[A]

Really?

[B]

Yes.

[A]

What was the sticker?

[B]

I think the stickers on those are like 64.

[A]

I mean, there's so many different kind of versions you can get. But I was interested in a Bronco. I get it. Okay. Yeah. I mean, they're okay.

[B]

They're. It's a, like they're a very.

[A]

You know what's not ride over. 8% interest rate. That's crazy. What is this? Mature? How long is this?

[B]

How long is this one five year loan?

[A]

Come on, guys.

[B]

You're not even to my truck yet.

[A]

No, I'm not. And I've seen it and I know how bad it is. This whole thing is crazy again. Both of your car payments combined are basically that are mortgage for depreciating assets that require money to put into it, to keep it going, keep it alive. What happens if you get laid off again, man? What happens if more medical things happen and you can't work? What if you're required to get that surgery? Then you can't do the things anymore. And you guys have multi thousands of dollars of car payments. What do we do? What a risky position to put ourselves in. Especially with an 11 year old kid relying on us.

[B]

Mm.

[A]

There is no reason to put our household in such a risky position. You did not need a new car.

[B]

So we were told that we could only roll that much negative equity into a new car, that they would not do it into a used car.

[A]

Yeah, but maybe we could have borrowed a personal loan to take care of the negative equity in the other car. There's options that we can talk about. You're probably only talking to the dealers.

[B]

Well, I didn't think about a personal.

[A]

Were we only talking to the car dealers about this? Yeah, well, they're not Going to have your best interest at Hartford.

[C]

We weren't really thinking about taking a smaller loan to pay off where the.

[B]

Negative is and figures which I think we could have.

[A]

Wait, you guys were considering this? Why didn't we do that instead of.

[B]

We didn't think about that but I don't think that it would have been possible because of my. Our other personal loans because I have the.

[A]

What's your credit score? I mean you a qualified debt to income ratio for a $66,000 car loan.

[C]

So yeah, he's like a 7720 something.

[A]

I think I. I'm sure we could get and it may have been a loan but $12,000. We could have worked the payoff really quick instead of all of a sudden not having a thousand dollar a month payment on over 8% interest. 66,295 dollar depreciating asset. Oh, okay. I just don't understand. This is such a beyond want. I'm not saying you should have kept that car. I'm not saying you should have kept putting money in that truck. Actually I would have said no. That does not equal this. That does not equal required to do this.

[B]

We also felt very rushed in what. Why in our decision because he had lost his job and then was.

[A]

Wait, was this while the job was lost?

[B]

This was. No, this was right after he went back to work. So at his old job he had a work truck. So that's why the old truck just. Just sat there. He didn't need it. And so then whenever he lost his job, lost the work truck then started the new job. He was having to drive the old truck to and from work and it was just. It was not reliable anymore. And so we were like let's play a game.

[A]

Let's play a game. The game is called guess the value of this car. What would you guess? You're pretty close. 46,000. That's crazy. We're already under 20.

[B]

Yep.

[A]

We ourselves with this.

[B]

Yeah. We really, we knew going into this.

[A]

That with a reminder no savings.

[B]

Yeah.

[A]

We're allowing ourselves to have this kind of debt and we don't have any savings for good. What a scary situation to put our household in for no reason. It was honestly a let's be honest, incredibly immature person purchase. That was a childish purchase. You wanted it and that's what you got. They got what you wanted.

[B]

What would you do?

[A]

As American as it gets. What I already said possibly, you know that personal loan to cover the negative that you're in that other one then a $10,000 loan on a $10,000 car that you got permission to take to a dealership to get the confirmation that this is going to last for a couple to a few years, safely, reliably, without you putting a lot of money in.

[B]

Well, I wouldn't have taken it to a dealership. I would have said, hey, babe, I.

[C]

Do all the work.

[A]

It's okay to get a second opinion, though, isn't it?

[C]

Yeah, sometimes.

[A]

I mean, listen, if you're confident enough, that's great. But look where it got us.

[C]

Yeah.

[A]

Okay, let's keep going. Synchrony. Great. That's always great. Oh, this is care credit. You did make a decent payment to it, but the balance is higher than you. The balance is 7242. Wait, why did I think it was lower? Okay, that's huge.

[B]

Yeah.

[A]

That's ridiculous.

[B]

Okay, so I think now it's like six.

[A]

I'm gonna go off the balance here, so. Because that's what we have, your full situation. $7,242 with this minimum payment. Come on, add this to your last one. $236. $236. Guys, what are we doing? Deferred interest until. Oh, you were telling me about the balance that goes to in a month. Two months. That's at 300. Okay. Okay. Have fees, like, crazy fees this year. Losing a lot of money. Some of the chunky ones are ending in 2025, and we have one 2026. Aggressive. We gotta get aggressive. You gotta get aggressive. It's deferred interest. You guys have gotten lucky so far with your spending habits. How much money is going places? We gotta. Yeah, you have to get lucky. Oh, this Disney card is accruing a lot of interest.

[B]

Yes.

[A]

So what is up with this? Why do we have 2,410 to Disney?

[B]

It's just a Chase card. It's like a generic shirt.

[A]

What's going on?

[B]

Groceries, Gas.

[A]

Like, why is it going on? Debt. It's a crewing interest.

[B]

Why.

[A]

Why are we paying interest on groceries? Guys? $41.68 of interest. Any answer? I wasn't really sure what happened, guys.

[C]

We were even using that card, but.

[B]

I don't know the last time someone used it.

[C]

Yeah, because I don't. I don't have any credit cards. Well, like, I don't carry any. I don't really use any.

[A]

So.

[C]

So I don't. So some of it. Well, that's just. However, she's moving something. But I. Yeah, I don't.

[A]

But you're the one that's in Charge of the finances. And so what is going on here?

[B]

Anything related to the house and anything.

[A]

Hold on. If he was in charge of the finances, would this be more mature looking?

[C]

Yeah, I'm not. I mean. Well, I don't know. I mean, it probably could be because.

[B]

He'S done taquitos on credit cards before. Like.

[C]

That'S a long time ago.

[A]

Okay. I don't know. You guys are not credit card people. I just wouldn't have credit cards. You're not utilizing them. Correct. If we have a properly funded emergency fund, wouldn't have needed that care credit. We wouldn't need to have this debt. We wouldn't be freaking out where we are today. We want to be spending 22 higher than our income today. You guys are not credit card people. That they're dangerous for you. They're not a tool. They're making money off of you. I would not have these if I were you guys. Oh, guys, guess What? You own 75 of rewards. You've lost 430 in interest.

[B]

I don't even look at the rewards, honestly.

[A]

And what's the point? Why have a credit card?

[B]

No, I have a credit card for emergency purposes.

[A]

That's not emergencies. Emergency fund. Emergency fund, guys, six months of living expenses, whatever's required to survive six months stacked up, put in a savings account you cannot touch. Doesn't go to fun. Come on. We don't do credit card emergencies. You guys are too far into life for that. You are well into adulthood. You have a child, you guys own property. You guys are doing all these things, have great jobs. We are not in the place of using credit cards for emergencies. That is not your guys's future. Come on. Do we even know about emergency funds?

[B]

I mean, yeah, that should be a three month emergency fund.

[A]

I didn't realize that was the. Oh, that was the original. But we see that three months doesn't always get us by. So that's why I say six. I don't even accept that three anymore. But okay, you heard that. You've heard of three. Why are we doing credit cards for emergencies then? You guys make money, good money.

[C]

Yeah, they just being stupid. Not really paying attention to what. What we're doing.

[B]

That's my sister's.

[A]

But why do I have it?

[B]

Because it's in my name. So are the cabinets that are in her house and she makes the payment.

[A]

To that in there. Wait, into whose house did I miss? Hear that?

[B]

In her tiny house. The tiny house that we put in the front of the.

[A]

Does she still live there? No. Yes.

[B]

She going to live there forever, I'm assuming. I. I don't know.

[C]

Yeah, we haven't talked.

[B]

Whatever. Whatever she chooses, that's what she.

[A]

Is it like right next to you guys?

[B]

No, it's like in the front of the property.

[A]

Okay. How many acres?

[B]

10.

[A]

Okay. It's just dust down in San Antonio. Yeah.

[C]

We got some mesquite trees. Yeah, we got one oak tree.

[A]

We.

[B]

And she lives right next to the one oak tree on the property.

[A]

Good for her. She chop it down to build her cabinets. Okay, so ikea. Yeah, that's all I'm gonna say. Yeah, we're at. Oh, was it just. No. Okay, so 1,668.22. The 48 minimum fee payment. And she is paying that on the site. Is she paying you guys?

[B]

She puts money into the account that.

[A]

It auto drafts and again, what if.

[B]

Yeah.

[A]

Huh. Brand new deck. Congratulations. Oh, it's deferred. Until when?

[B]

The IKEA is not deferred. That must be something else, because that is not.

[A]

It's another account that's not. Is this.

[B]

Is this ikea? Is. It's got interest.

[A]

Oh. Oh, it's a crew in interest.

[B]

Yes.

[A]

Sorry. That's. That's what I was seeing. Okay, then that's okay. We're okay with that. I mean, we're okay with that being our name. Something that's green interest.

[B]

Yeah.

[A]

What does she do? What, What, What. What type of life is she trying to live? I guess it doesn't matter. I don't know.

[B]

She's a single mom. She's a vet tech.

[A]

Okay.

[B]

And does not have any help from dad. Dad was like, okay, Nothing to do with the baby.

[A]

So you guys built the house? Well, it was like, yeah, it was.

[C]

A storage building by 40. And then we did.

[A]

You insulated, you AC heated, you plumbed. That's expensive. And you guys paid for this?

[B]

And we did the work ourselves.

[A]

How much was this, please? Is that in this document pile?

[B]

Yes.

[A]

When was this done?

[B]

Oh, years ago.

[A]

Come on. When did you guys buy this land?

[B]

2021. November 2021. And this is the house that we're going to die in.

[A]

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[B]

Like this is it. Like we are never moving again. This is why.

[A]

Well, I mean that's fine.

[B]

I love where we're at. We have a killer interest rate.

[A]

Okay, well that's fine. That's okay. Sure. What is love sack?

[C]

Where you make love on a sack. No, it's. It's a couch.

[A]

This is a couch. That's a $3159 interest rate on a couch. What's your square footage in a three bed?

[B]

It's 2000. Just over 21.

[A]

Okay, so we needed a three thousand dollar couch for it.

[C]

Well, I think that part was more of the versatility plus the lifetime kind of stuff you get on it.

[B]

And again, as far as there's the incest of money in that one too.

[A]

What?

[B]

So our version. Our part of the couch is just about paid off.

[A]

My sister is it in her place.

[B]

The. This is my other sister. And yes.

[A]

What is happening? Where is she?

[B]

She lives in Houston and she put her couch on the card and his mom also put.

[A]

You guys gotta stop. You guys gotta stop. Listen, she can take out a credit card if she wants to. Stop putting the risk in your corner. You have a kid. I have no problem with helping. Even if you want to gift that amount of money. But stop having someone else's debt on you. This is the third time now. Yeah, and we're only six documents in so half so far.

[B]

Yeah. I think the only other thing that's left is the loan. That's.

[A]

What.

[B]

There's something else mixing of. So there's the IKEA card, there's the. The smart financial. The love sack is split between.

[A]

I want all of them. I want all of them to connect with our financial advisors. The one we use, domain money. Everyone gets a free session. Everyone in the audience gets a free session with the financial advisors. I want you to connect them with them.

[B]

Okay.

[A]

And have them sit down with them because they have to be able to manage their own finances instead of being on your. Okay, this is horrible. This is wild. Okay, when does the interest free period end? 2027 for one. 2026 for one. My gosh. I don't want the payment 109 again. What happens if we don't know? Having that conversation about everything now because everything's all tied up and mingled. Lowe's. This is for building the house.

[B]

That's for our washer.

[A]

Oh, good. Because we finance every purchase in our life. Every purchase. Is there a person that is not financed in your life? This is crazy, guys. What are we doing? Fees. Fees. Like crazy. We're getting fees on a monthly basis. What are we doing? $793.74 with a $53 minimum fee payment. 96 cents. Why? Why does everything have to be financed? What is our philosophy here?

[C]

Oh, I don't know. I guess I've never really thought about it. And then when the time comes where we need it, we don't have any.

[A]

Money because everything's financed. Making your minimum payments a billion dollars a month, meaning you have no money.

[C]

Yeah.

[A]

You're referring your entire life.

[B]

Yeah.

[A]

And guess what? There wasn't that much in retirement, was there?

[B]

No.

[A]

I didn't remember seeing anything significant. So you're not even. You're deferring your retirement as well. How are you guys gonna be able to retire? You're gonna have a paid off a house if you do this correctly and don't stop. Sure. Okay. But there's still property taxes, there are utilities, there are insurance, there is food, there is whatever's going on with any other part of your family. Because we know you guys are deeply mingled there. Then there's the kid as well. So what are you guys going to do when there's no retirement but everything's financed in the world? Not going to be able to pay for anything. It's going to be nothing. You'll have your disability, but that's pretty much it.

[C]

Yeah.

[A]

And we can't. That's not. Let's not call that retirement.

[B]

No.

[A]

What's accruing. Interesting. Literally. No, no. What. What was. What was the fee?

[B]

The fee is probably a late fee or something.

[A]

Late fee? Guys, how are we having late fees? Do you even know there's late fees? You guys aren't paying bills on time.

[C]

I mean, I think it hasn't been that many we've had lately.

[A]

Many that. Where are you guys like that? You don't care about that.

[C]

You don't care. Well, I know some of it we put on like auto draft and then.

[A]

Yeah.

[C]

And then didn't think about who. What we had on or calling. So.

[A]

Okay. What about this one though? This isn't canceled. We seem so unbothered that we.

[B]

I don't know. I just assume that it's a late fee and if it. Because I can't remember when these statements were either.

[A]

So payment security. I. You've had $312 of fees this year so far. That's essentially their version of interest on this card.

[B]

Yeah.

[A]

So just free. Sure. They're going to get you with monthly fees. How do we and everything find where.

[B]

The monthly fees are?

[A]

I'm pretty sure this is what's baked in.

[C]

Yeah. Oh, I know that.

[A]

Yeah, I know you guys. I would pay off this card immediately. You're getting destroyed. Okay, what am I looking at here?

[B]

Okay, so that's one of the smart financials. So that's a loan.

[A]

4. I'm trying one of sake.

[B]

So one is a our water well. And that balance should be that one. That's it. That's the water well.

[A]

Okay. We got a water well at 9%. You guys. Cash flow, nothing in your lives. Minimum demand of $375. This is getting crazy.

[C]

$22,000 cheaper than getting city water brought to where we're at. Because that was over 40 grand.

[B]

Yeah.

[C]

Just to get city water.

[A]

I'm not saying don't do this. I'm just saying you guys, everything you guys make. And I don't think it's. I. I really don't think you guys understand how well you guys do. You guys do insanely well, but you're living like you are not doing well. Well, no, you guys are spending like you guys live incredibly well. But you guys have made yourself in a position where you do not live well even though you live well.

[C]

Yeah.

[A]

Well, yes, that's what I was saying.

[B]

Yeah.

[A]

So what was our plan with this? Just allow the 9% interest to ride out for eternity?

[C]

I Mean, at least until we can pay. I don't know. We don't have. Not really had any breathing room, so we're just doing what we can.

[A]

Fun fact, that 9% interest at 8.9 interest. By the way, the investing app that I use, Moomoo, the partner of this channel. One of my favorite things, literally, you put money in their account, and for the first three months, you get that amount of interest on your money. That's like a thing you get to take advantage of. But instead, you guys are just making money for banks. You guys are bank's best customer. You're giving them everything. I own some stocks and banks. I'm sure throughout my S&P 500 distributions. You guys are making me a lot of money. Thank you. Thank you for upsetting.

[B]

That's the construction, though.

[A]

Oh, this is the construction. So this is the tiny house. When we're saying tiny house, what are we talking, like, I don't know exact square foot.

[B]

So that's like 600 square feet.

[A]

And it's her and a kid. Is there any separations? Full open?

[C]

No. It's got two bedrooms, kitchen. Yeah.

[A]

Whoa. I can't even picture.

[B]

I'll show you pictures later. I'm actually really proud because we did it. Like, I'm proud of how it turned out.

[A]

Sure.

[B]

We did it all ourselves.

[A]

Well, I wish you could have done it with your money, right? Oh, it's worse. It's a little 11% interest, you know? So if this. If we're considering this building a home. You just took out a 11% mortgage.

[B]

Yeah.

[A]

So, all right, what's the payment usually?

[B]

Oh, four something for something.

[A]

And I put 450.

[B]

And we don't pay that. We don't pay for that.

[A]

She pays for this?

[B]

Yes.

[A]

Kenny, start marking these. Okay. Okay. Well, she pays for it or pays you guys.

[B]

It goes into the bank where it drafts from, so it comes out.

[A]

You really have a lot of trust in everyone, and I appreciate their family, but you have. It almost sounds like nothing wrong has ever happened in relationships with you guys. Ever. Okay. And with that reaction, then I don't know how you're putting this amount of trust in people then, because you kind of are. You've allowed so much to go so wrong and destroy you guys.

[B]

Yeah. And I think that that's kind of like our. Where our downfall is, is that we just want to give everybody the benefit of the doubt. We want to, like, help as many people as we can and. No. And that, I guess that is kind of where like, the.

[C]

That Is the downfall.

[B]

But I. I think that's where the connection is of us, I guess, knowing that we're in a better. Like, we make better money than most people because we're able to do things like this for other people, but it's putting us in a bad situation if something happens to them.

[A]

This is very scary, guys. This is very scary. Tractor, supply. You guys have everything? You guys have everything? Oh, tractor, supply. Sure, why not? What we do our fence. Great. $487. You got dogs or something? Are you just trying to keep. You guys have a horse?

[B]

Yes.

[A]

You ever do anything with it?

[B]

Yeah, he's a pleasure horse. He, like. I don't like easy. I don't, like, like, perform or anything. Like, I don't like easy.

[C]

That's awesome.

[A]

Let's start.

[C]

We're close to Mexico. We're not in Mexico.

[B]

Oh, my God. That's what they call them. You call it a pleasure horse. Like, it's not. You're not, like, running.

[A]

Can you stop saying that? Can you stop saying that phrase? Stop saying stop. You're making Lindsay die. You're killing her. Okay, your minimum payment is $29 on this. Glad you guys are at least pleasant people. It makes it easier to go through this for what it's worth, but this is. I just don't. You have a horse? How much was the horse?

[B]

We paid 5,000 for him.

[C]

How much does a horse keep for that? Oh.

[A]

So we got to put that in the budget. We got to put that in the budget.

[B]

Horse.

[A]

Part of me thinks it would be fun to, like, own land.

[B]

Like, it is a ton of work.

[A]

I'm sure, but a part of.

[B]

Well, like, a ton of work.

[A]

Right. But let's be honest. I mean.

[B]

Okay, if I ever.

[A]

If I ever own.

[B]

You want to come?

[A]

No, no.

[B]

If I ever just test it out. You are more than welcome. We will.

[A]

What I'm saying here is, if I ever own land, the hard work would not be done by me, but, like. Like being. I love cows and love horses, but, like, I also feel like I'd be over it in a weekend.

[B]

Oh, yeah, that's my issue. Yeah. I mean, we have a fence that we've got to finish in the front. So, I mean, if you want to come for the weekend.

[A]

Oh, they want me to clarify that I'd be paying people to do the work, obviously. I don't know what they were thinking. I don't think that's how anyone else. Where. I hope not.

[C]

I don't know.

[A]

The. The comment section always take Everything bad anyway, but whatever. Oh yeah. All right. Okay, let's just, let's just go on.

[B]

Okay, now you're in tortoise.

[A]

Oh, this is you. This is you. This is. No, this is your car. It has to be.

[B]

That's my truck.

[A]

Why do you need a truck?

[B]

I have a horse.

[A]

What do you do with a horse?

[B]

You have to take him to the vet. You have to take him to go get his feet done. You got to take him to go get his dental.

[A]

They don't do that there.

[B]

I mean you can have somebody come out to the house.

[A]

Okay, but to be clear, you have a seventy thousand dollar loan so that you can take the horse to the vet.

[B]

And I mean, I mean you need a truck for.

[C]

I mean we've used it for trailer. Of course. We don't have those trailers now. Except for the horse trailer.

[B]

We have the horse trailer.

[A]

Guys, this is no reason to have this kind of dud for you even still get like you've get you, you, you've. You were trying to find any excuse to have this truck. You could have had a cheaper truck sitting on standby for that specific thing. And then you could have had just a sedan all for yourself and it would have been fine. Or a midsize SUV and you would have been okay. You do not need a $70,000 truck to carry a horse a couple times a year. Right. How often times are you taking the horse?

[B]

Places, like every three to six weeks.

[A]

Uh huh. Okay. Probably could have had a bull little truck. Not little, but a bull. What kind of little truck? A bull truck. I mean, you didn't need a $70,000 loan.

[B]

I mean, or get rid of the.

[A]

Horse because obviously you can't afford it. Sake. I'm trying not to say that, but.

[B]

I have tried to sell him the horse. Yeah.

[A]

That sounds. He's a pet, right?

[B]

Yes. It's like imagine level of a pet. It's not the same.

[C]

You don't look like.

[B]

It's not like a dog.

[A]

Why not? I would. If I had a cow, I would. I love cows.

[C]

Well, if you get like a little mini Highlander or something.

[A]

Well. Or no, no, I just like cows.

[B]

Do you know how gross cows are?

[A]

Yeah, but I like them. Do you know how gross dogs and cats are? Exactly, that's what I'm saying.

[B]

But no, like you don't look at a horse.

[A]

Why you try to sell it?

[C]

Cuz getting too damn expensive and I.

[B]

And I wanted to.

[A]

Why has no one bought.

[B]

Because he has a.

[A]

The cell. Get rid of it.

[B]

Yeah, he's got like a. Something going on with it.

[A]

Okay. You can't afford it, so why not just go free as long as someone does transportation. Well, do a little bit of money because you make sure they put you. Because you got. I'm gonna treat it like a normal pet. Make sure they do have an adoption fee so that, you know, they have money to take care of it.

[B]

Right.

[A]

That's pretty much it. So they have a little bit of, you know, you know, they're not just gonna. Around.

[B]

Yeah.

[A]

But even still, this is crazy, guys. Obviously you can't afford this and you need to get rid of this truck or something. Or something. I don't even know. What's the. Do we know the value of this truck?

[B]

You would know that one better than me.

[A]

No, but yeah, let's pull the value, Jake.

[C]

We'll be probably in the 40s.

[A]

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[B]

Yeah, I've had the truck for a while.

[A]

53,000. How long have you had it?

[B]

Two and a half years.

[A]

$53,916.54. What's the minimum? It has to be a crazy.

[B]

It's over a thousand dollars.

[A]

Two, two, two. We.

[B]

It's like 1063 dollars.

[A]

Yeah, it's a thousand 58. But we have two over $1,000 car payments. That's crazy. I don't understand the life you guys are living. Oh, it's worth 29,000. Congratulations. Nice. That's horrifically disgusting. That's private value. It's not even trading. That's disgusting. Do you not realize how disgusting that is?

[C]

That's pretty bad.

[A]

It's a truck. I mean trucks will you the most. Because everyone will go get a hundred thousand dollar truck that'll be worth 20 the next day. If there's a vehicle people are willing to overspend on. It's trucks. For a workaholic job, Ulta. The only living thing that sees you on a daily basis is a oak tree. Why are we spending 360 on an Ulta card that we can't afford? Probably.

[B]

I use it and usually I paid off like the same month or before. Like right after the statement comes.

[A]

This is normally paid off.

[B]

Yes.

[A]

And actually that is so one card. One card that is actually used relatively responsibly. Not true though because you spent 360. That should have gone towards that.

[B]

Yeah, So I bought.

[A]

At least you pay it off.

[B]

I buy like all of my stuff all at one time. Like probably every.

[A]

How.

[B]

Every eight to nine months. I use that card and I put all my stuff in one time. And then I have rosacea really bad. So I have to be like very careful. Like I can't just go to the.

[A]

Grunt if it's a couple times a year. That's different.

[B]

Yeah, go to the drugstore and like.

[A]

Okay, I'm getting it. But if it was a monthly fee that would. It's a monthly charge. That's where I would be freaking out. Okay. Valero car. I happen to have this on the show.

[B]

You've never had a gas card?

[A]

Gas card? Not a Valero card. Oh, $740 is owed on this. Is this normally paid off? No, no, no. Oh, 18.56 of inches. Good, good. Yeah. Let's pay interest on our gas. Come on guys. Like, I don't even know what to say anymore. Like you've just accepted this very clearly like you've. This is just life, you know, it's just like life. It's not that you guys don't care, but it's like almost no concern anymore because you've just accepted it.

[B]

It's been like it for like this for so long that it's just like, how long, Norm?

[A]

Why do this?

[B]

Because we got like got ourselves into the hole and then can't get out of it. I guess. Home got ourselves the hole. That's our mortgage.

[A]

You're right. The rate is great at 2.5. I mean, that's. That's wonderful. What I don't like is it's still like a half a million almost, which. Okay, whatever, whatever. I mean it's the2687 payment on top of your $2,000 car payments on top of whatever else is about to be added up. Guys, Geo $443,773.57. Okay. The minimum monthly payment of again $2687.38. But we love the interest rate. Oh, I accidentally put. We'll take a look at that in a second. That was a 401k. Oh, is that all the debt? Have we reached debt? That's it. Well done. Why is there still so much paper?

[B]

Okay, those are all the bank statements.

[A]

Goody. Why do we have so many different banks?

[B]

So we have like a checking account that we use for our bills where just bill money stays in there. And then we have a spending account and then we have an account that was with his or still is with his mom where like our mortgage and stuff went into it and our insurance. Because his mom lived with us for seven years.

[A]

You guys are complicating everything.

[B]

So his mom lived with us for seven years. So the mortgage was already and just coming out of that account. So rather than being. I was just being lazy and I just didn't move it over so much.

[A]

Lazy in this the story lots of.

[B]

Laziness is less so one of the accounts is just. It's a family checking that has his mom on it has the mortgage and the car insurance coming out of it.

[C]

One had tools like work stuff and then now I just use it for my day to day.

[A]

A note was written by Lindsay that you new tools are your fetish. Like that is the literal note.

[C]

It's not. It's not a fetish. But according to Lindsay by as buy as I go what's necessary.

[A]

Some of it's not necessary for work.

[C]

Oh yeah. I guess me.

[A]

Like oh I mean.

[C]

Like certain socket sets or. Or the wrenches that I'm using the scanner that I bought, which. That one was quite a bit too.

[A]

But I mean, how much hammer pegging is going on?

[C]

How much what?

[B]

It's called turning wrenches.

[A]

They don't know what that means. I'm gonna allow that to slide.

[B]

Am I missing it?

[A]

Yeah.

[B]

Oh, okay.

[A]

That's okay. Okay. How much you spend on tools? You know, for the fun.

[C]

It's not fun, but.

[A]

Oh, come on. For your own personal ones, not required for work.

[C]

I don't have any as personal use. This is all like, work stuff that I use.

[A]

How many new tools do you need? Constantly.

[C]

I mean, things change all the time.

[A]

Okay, so how much?

[C]

Well, I mean, I think.

[A]

Why isn't your work covering this? Oh, you're. Wait, what?

[B]

They don't.

[A]

That. What? The truck shows up, the special little truck, and they offer you, like, 50% interest.

[C]

It's. I think it's like 18.9.

[A]

Yeah. It's crazy.

[C]

Yeah.

[A]

How much do you owe? Wait, do you owe.

[C]

Yeah.

[A]

Wait, so that is a debt. How much you owe?

[C]

Pretty sure it's like 22,000 to 1.

[A]

And death and tool debt.

[C]

Yeah. That's all.

[A]

Sake.

[C]

That was all Everything that's recent.

[B]

Are you being serious?

[C]

Yeah.

[A]

You didn't know this? That's an insane debt.

[B]

I thought it was like.

[C]

Well, the other one's almost paid off. It's like 2300 on a different truck.

[A]

There's more.

[C]

Yeah.

[A]

When I asked if that's all the debt, why'd you not tell me?

[C]

I wasn't really thinking about it.

[A]

I need you to think about it.

[C]

I don't know. Sometimes I think about it different just because, I mean, that's stuff that I, you know, I use every day at work. I'm using it.

[A]

Oh, for sake. Your minimum payments are 670amonth.

[C]

Yeah.

[A]

Thoughts? Comments? Concerns?

[B]

Yeah, I didn't know about that.

[A]

But see, also seems.

[B]

Wait, is that why, like, we got like all the snap on stuff.

[A]

Nonchalant about it, though. It's like, again, this doesn't even matter. It's just an other.

[B]

Like, what am I gonna say to him?

[A]

It's not about that.

[B]

Whenever I'm.

[A]

Well, yeah. And I'm not. I'm not. I don't. It's not like I want you to, like, go crazy or anything, but it's just your reaction is this. It almost seems like because we've stacked so much. Is it another little pebble in the bucket? Doesn't even Matter. Like, why not throw it all in? Let's just get more debt. Feels like that's where we are. Or debt just no longer has any impact on you because you guys have just lived that, that, that. That. I need to take debt away from you guys because it means nothing. You don't understand the repercussions behind it. The fees and interest that you're paying.

[C]

Yeah.

[A]

So it's all at 18%. Your minimum payments, 670. Great. Are there any other debts he's not telling me about? Have we made it?

[C]

Yeah, I don't. I don't think there's anything else.

[A]

Okay. Got lucky. They didn't even, like, feed me that information. I don't think I. I looked down at just Lindsay's funny note all the way down. That's crazy.

[B]

Yeah, I. I mean, like, I knew that there was a bill of. I mean, obviously I knew there was a bill that was coming out every month because I look at the bank. I'm the one that looks at the bank. But I didn't realize it was like that, man.

[A]

Yeah. You guys have overdrafted this year, by the way. Overdrafting while making net over150,000 hours a year. That's insane. That is insane.

[C]

When was that?

[A]

Oh. Huh?

[C]

When was it?

[A]

I don't know when it was some point this year. It doesn't show.

[C]

It's okay.

[A]

But I do know that this past month we were getting McDonald's. McDonald's. And Prime Video. And Prime Video. So we're renting things after pay. We're after paying. So there is more.

[B]

Yeah. Those are our clothes.

[A]

You guys make money. Everything does not have to be a minimum payment. I'm surprised you're not financing the McDonald's and movie rental. Tick tock. $60 on tick tock.

[C]

Yeah, I don't know what the that.

[B]

Is, but it's like leggings or something.

[A]

What are we. Why are we buying on Tick Tock Shop? It's all just, like, extra that we don't need. Don't go into the Tic Tac shop part. Don't swipe left.

[C]

I don't trust it because I think it's all Chinese.

[A]

You know what? How did I know you were gonna say that? It's like. Yeah, I mean, what do you think.

[B]

The stuff from Amazon comes from, too?

[C]

Well, that's why I pick certain things. Well, I don't order a lot off of Amazon either.

[B]

Where do you think your hat came from?

[C]

You know, I don't know now. Curious, though.

[B]

Probably made in China. Oh, from a gas station.

[A]

You're bald.

[B]

He's very bald.

[C]

I'm not bald. I shaved it bald.

[A]

Okay. Starbucks News. No, no, no News.

[B]

I was like, whoa.

[A]

Sorry.

[C]

I was like, you do. It sucks. I don't know nothing about that.

[A]

News Express. Something new.

[B]

That's probably a gas station. That's a gas station.

[A]

You stop inside and got something. It's $5. I know you weren't getting $5 of gas. What are you stopping in and getting?

[C]

What's a News Express?

[B]

It's one of the gas stations.

[A]

I'm sure someone's stopping in and getting something for $5.29. Guys.

[B]

Oh, no. That was the airport. That was the airport.

[A]

Okay.

[B]

Yeah, I. Whenever I moved his mom lift, right?

[A]

I know for a fact you guys.

[B]

Live in the middle of nowhere. I know what account you're looking at. And this account is me going to move his mom. And all of that was reimbursed to us.

[A]

Everything. McDonald's, Starbucks. Starbucks, Starbucks. Door dash, Liquor store.

[B]

Yep.

[A]

Why are we getting liquor store? For a move. Door dash. All this. Door dash.

[B]

Cuz I need beer. After I done moved everything across state lines.

[A]

And you were reimbursed. Okay.

[B]

But yes, I was. She reimbursed me for all that.

[A]

What, 50 movie rentals, TikTok shop and other. TikTok shop. $96.

[B]

That stuff.

[A]

No, this is the same account. Okay. She's getting more TikTok Shop. That communist stuff.

[C]

Yeah.

[A]

Amazon Chili's Pack and Stack. And Amazon was on Amazon. Okay. And another checking account subscription. Country Corner.

[B]

That's Gas station.

[A]

Yeah, Country Corner. Spelled with the K. Because I bet there's a lot of triple K's out there. David. Reason over.

[B]

That's the tool guy.

[A]

The tool guy. Oh, it is. Matt.

[C]

Yeah, that's the one that's almost. Well, I say almost. That's like the 2200, I think. Oh. Or 23.

[A]

Zone out 20 bucks. And there's more. Matco. Still so much Pictures. Paper. Selling out 250. Paypaling out 10. Selling out 82. Where's this all going? Selling out another 250.

[B]

The 250 is. Whenever he lost his job, my mom gave us a $4,500 loan.

[A]

Oh, guys.

[B]

Okay, some emergency fund.

[A]

Not having an emergency fund is an emergency for sake.

[B]

So the. I pay my mom 500amonth and she'll be paid off in March.

[A]

March, PayPal, Apple bill. Well, how much is left? Again, that is a debt. You didn't tell me how much is left to Mom?

[B]

That's math.

[A]

Come on, math. Quick, math.

[C]

Yeah, I don't. I don't know.

[A]

Okay, so zoom, zoom, math.

[B]

$4,500. She pays it off, or I pay it off in March. Pay 500amonth, so.

[A]

Oh, there's an extra checking account that I don't even have. His allowance. You give him an allowance checking account, so we.

[C]

Yes, well, I have it, but I pulled it out. Just so you know, I can keep track of whatever.

[A]

Oh, you guys, sit down. Listen. If everything was in one account, you guys might just have to put everything in one account over credit card spending. Well, track it all at the end of the damn month.

[B]

His account, he uses for, like, his dip. And he smokes cigarettes and things.

[A]

Don't be getting cancer.

[B]

You're doing every tobacco variant and the. And buys his beer. And that's on his account. Some. Some of it.

[A]

I can't put that in the budget, man. I can't put, like, you dying an early death before your kid even graduates college or whatever they do. I can't put that in the budget. How much are we spending on a monthly basis on all these?

[C]

Well, that's the. What I'm spending is not just that. It's also the food that I use while I'm working.

[A]

But how much are we spending on all that?

[B]

On tobacco, Just tobacco products. Nicotine or nicotine products. Well, a can of dip now is $9. One can.

[A]

How long does it take to go through a can?

[C]

I like, a day or two. Just depends.

[B]

I didn't know how much it was.

[C]

Until, like, I'll probably say like 200.

[B]

200Amonth?

[C]

Yeah.

[B]

On. Okay.

[A]

Okay. Because I. I don't know what to do with it. 65 in this account. It's just transferring a couple things. Okay. Oh. Oh, my gosh. More. 12 in this account. Price. Chevrolet, Outlaw, Bar and Grill. Oh, there's still so much spending. Go in the gas station. Got some Amazon Travel center. Travel center.

[B]

That's gas station.

[A]

Okay. Tractor supply. Good. The credit card's not enough.

[B]

That's dog food.

[A]

Oh, lots of water delivery.

[B]

Yes. So our well water is the thing.

[A]

That we're in debt for.

[B]

It's not drinking water. Like, you cannot drink it. It tastes like ocean water.

[A]

Salty.

[B]

Yes. It's su. It's like super minerally. And whenever we first moved out there, we had multiple companies come out and test the water, and they're like, there's nothing like a water softener is not going to do anything. Reverse osmosis. Won't do anything. So.

[C]

Yeah, so pretty much. Well, I mean we're stuck paying a well that you can't. I mean can't really do a whole lot with. Like you can't drink it. And then we'll have to try to.

[B]

Get city water eventually one day. But that'll be like.

[A]

So you still have to do that.

[C]

We're doing.

[A]

But you were like. But when we talked about that well that you said so we didn't have to do city water. Well, city water. But now you said you have to.

[C]

Yeah, but we weren't known.

[B]

Well, we didn't know the water there was so crappy.

[A]

Backyard $118.

[B]

Oh God.

[A]

What is that?

[C]

I'm trying to think.

[A]

What's backyard $118.

[C]

That's that restaurant.

[A]

There's still so much more. Amazon. McDonald's, Amazon RMD Amazon. Amazon nails by Britney Again. The only thing that sees you alive is the tree price. Chevrolet. Amazon. Huh.

[B]

I see them wear gloves.

[A]

Subway. ATM withdraw $400. Would that go.

[B]

What is it?

[A]

ATM withdraw $400.

[B]

We had some damage to one of the windows on the house so we paid a guy to come fix it and then the AC was leaking.

[A]

Is this house going to survive? My goodness. Amazon ancestry.com so you lost all your personal data. Amazon more ancestry.com Great. Amazon nails by Britney. She came in twice. She's doing those nails endlessly. She's obsessed with them. Britney's always needing to be in there and grinding on nails. More pressure. What is this thing? It's like $9 price Chevrolet constantly. Guys, we don't live in a place with snow. And I know it's a little dusty, but it's not that dusty dusty. Okay. Come on. I've been down to San Antonio a billion times. Three times. Like it wasn't that dusty. It wasn't that different than Austin.

[B]

No, it's very dusty where we're at.

[A]

Okay.

[B]

Yeah.

[A]

And the very rural.

[B]

Yes.

[A]

Thousand seven hundred, 000. Oh, this is the bad part. You know what? We went through a lot of debt and it's all bad. And you guys are mingling a lot with the family and it's all bad. This is the scariest part.

[B]

So that's a brand new job. Total.

[A]

Both retirement accounts were at 4,000. Rounded up. 4,000 to our name in retirement.

[B]

Yeah.

[A]

How are you guys going to survive? How are you going to do anything? You guys, with the paid off house and everything. And if you guys live minimal, off the grid, whatever, you guys probably need at least a Million bucks to survive.

[C]

Yeah.

[A]

Without draining your portfolio, you could go less, but you'll drain it by the time you. Before you croak. Well, you know, at the time you croak, essentially.

[C]

Yeah. I don't really have an idea what we're gonna do.

[A]

I'm gonna put reliability from the family. So we have the. That Smart two is taken care of by, you know, sister. What else was taken care of?

[B]

Part of the love sack.

[A]

The best buy was taken care of.

[B]

And the. But, yeah, part of the best buy sack.

[A]

How much of the love sack of the minimum? 48's minimum she pays.

[B]

So. Okay, but the numbers that you wrote down, though, those are like the statement minimum balances. And that's not what we pay. We pay over. Like, we pay the promotional to pay it off.

[A]

I don't care. I'm doing your budgets, so. And that's not even 100 true on everything. So that's not true.

[B]

But I pay 138amonth.

[A]

I don't care. I want to know the you your minimum.

[B]

My minimum is $138 on Love Sack. Yes.

[A]

The minimum on the card is 109. That can't be true.

[B]

Because if we pay 109, what is.

[A]

Your minimum monthly payment required?

[B]

I pay 100.

[A]

No, your minimum required.

[B]

I think that is what's required for it to pay off in time.

[A]

How are you not understanding this? Your minimum required on a monthly basis so you don't get a late fee or a missed payment.

[B]

Oh, I don't know.

[A]

What do you think, a minimum?

[B]

I don't know, because I don't. Because if I pay, I'm writing that.

[A]

One off because it's mostly taken care of by them. Yeah, that's not good. That we don't know that, guys. That's actually kind of crazy. Like, I don't even think I've ever encountered that of not knowing what a minimum payment is.

[B]

Well, because I pay way over.

[A]

That's not the question, though. Okay. Your income is 13, 133. Let me add up all these debt payments and take me a second here. You guys went to trade school?

[B]

He did.

[C]

I did, yeah.

[A]

Very cool. What did you do anything?

[B]

No.

[A]

That's okay. Not much I can do to help you guys. Maybe we'll give someone an audience. A course career certification. Yeah. If you guys want to comment about course careers, Black Friday sale right now, a lot of things are 50% off. Do like a comment like Black Friday course career sales or something, and I'll gift one of you a course. Careers, certification, since they don't need it. Or you can give it to your sister. We can do both.

[B]

How do you not have a bottle of water so that you don't.

[A]

It's right next to me.

[B]

Parched.

[A]

It's right next to me. But I feel pretty okay. I usually chug right before coming in.

[B]

Because your mouth gets so dry. Talking so much.

[A]

Yeah. Okay. Oh, my gosh. Minimum the payments, $3,838, not including your mortgage. And $0.92 your minimum debt payments. That's insanity. That's crazy. That's crazy. And then your mortgage.

[B]

27.

[A]

Yeah, 28. 20.

[B]

No, I think it's 20.

[A]

26, 87. Utilities.

[B]

Electric bills. Usually about 4. I would say 400 is what I usually.

[A]

Internet.

[B]

120.

[A]

Gas. Laser gas.

[B]

Like gasoline to drive or like house? No, no.

[A]

Okay.

[B]

Vroom, vroom.

[A]

Drive, drive, gasoline. Both of you together.

[B]

250 for me.

[C]

Yeah, I'm probably in. Yeah, three something.

[A]

250 and like 350.

[C]

Yeah.

[A]

Okay, so we're gonna do 600 there. Car insurances.

[B]

470.

[A]

It just renewed phone bills.

[B]

Say 300.

[A]

Usually I would do helium, but you guys are very rude.

[B]

Yeah, we. It's not even an option. I looked at the option whenever I've heard you say it before. I looked into it and it was not an option.

[A]

TP fund anything else to survive. Gonna do 200. Okay. Groceries or meal prepping a couple times a week. That's it. Packing. Packing. Sandwiches. Thermoses.

[B]

Sandwiches.

[A]

Yeah, we could do. We should be able to do 800. Follow our meal plan.

[B]

You have a meal plan?

[A]

Yeah, it's in the budgeting program. Tweak it to your needs. Medical, healthcare, ongoing monthly basis.

[B]

So now that I have an hsa, we've been using that to pay for our medical and medications.

[A]

Is it ever gonna run out? You pre contribute to it. Do you overspend?

[B]

I have not yet. My company matches so well even still.

[A]

But okay. Pet foods.

[B]

Are we including the horse?

[A]

Are we getting rid of the horse?

[B]

I mean, probably not.

[A]

Then yes.

[B]

Say 200amonth.

[A]

Oh, okay. What about horse maintenance?

[B]

On top of that to trying to like, average? It would probably be just say 100 bucks a month.

[A]

It's not that bad. I thought I was going to.

[B]

Okay, no.

[A]

No subscriptions. We're canceling them all.

[B]

Oh, what all subscriptions?

[A]

Do we have every subscription? Every subscription?

[B]

Well, we don't have TV.

[A]

Good. Use YouTube. It's free.

[B]

But then there's ads.

[A]

Yep. Just like there is on tv. And you pay for TV so.

[B]

Well, I pay for, like, Netflix. We don't have, like, cable tv.

[A]

Well, you got the ad free version. Yeah, you're canceling subscriptions. You're listening to ads when you can't afford to live. Okay, So, I mean, you guys can do this. And we already knew this.

[B]

Is that off of, like, what you were saying, like the minimum payment?

[A]

Yes, but now we learn where we can put the rest of the money. Because you have to make your minimum payments on everything anyway, right? So this is what's required to survive at a minimum.

[B]

Okay.

[A]

And now we figure out what to do with the remaining money, and then.

[B]

You, I guess, prioritize off of the promotional stuff and then, like, snowball it.

[A]

Yeah, okay, but this requires you guys actually not overspending. Right now you're overspending, so it doesn't even matter. You're going out theater every second of your life and stopping a gas station. Getting 3,397 is what you guys have left over. Come on. I'll even put that 397 towards subscriptions. Fun forever. There you go. Okay, okay, okay. So now you have $3,000 left over on a monthly basis. Budget it out with that. I mean, guys, this isn't the craziest thing in the world. I mean, you guys pulled on this yourself. Yes. Prioritize the deferred interest once first, so they're paid off by the before things hit. But again, okay, this really isn't crazy. And then I would snowball the lowest balance.

[B]

Do you do the lowest balance or do you do the. The highest interest rate?

[A]

I would do lowest balance for you guys to stay motivated.

[B]

Okay.

[A]

You'll see more progress. No more tools. No more tools.

[C]

At least, I think I'm pretty much set on it anyway.

[A]

That's what everyone says.

[C]

I guess that is what everybody says. Yeah.

[A]

Okay.

[B]

So, hey, he did get a really cool snap on sign in a beach towel.

[A]

Vehicles, bad debt, not including your mortgage, bad debt. We have $170,000 to pay off. That's an insane number. That's actually kind of crazy. 170. That's kind of insane. That's our annual 56 months to pay off. 56 months? Yeah. That's bad debt. That's not even the mortgage. 56 months to pay off. All right, so you guys can do this. It's going to be a grind, but four and a half years, Just over four and a half years. Let's call it five years after your fully funded emergency Fund as well. You guys can get out of debt, you guys have around forever. And because of that, now you're in a five year hole. But by the time you guys are entering your 40s, you'll be debt free. And that's fine. That was pretty similar to my parents, for what it's worth. And they're in a pretty good position now. You know, they were, they certainly through 20s, 30s, kind of, you know, messed up, but going into the 40s and everything, you know, turn things around and that's okay because they sacrifice. In the later half of the 30s, you guys up bad. That bad, 100, whatever, $30,000 of bad debt is crazy. That's not something we see here. You guys are beyond lucky that you have an incredible household income to deal with it in four and a half years. For the amount you guys up, your debt lives is not that bad of a sacrifice. It sucks. But I'm also giving you guys 397 hours of fun. I usually can't give people fun money, but that helps you guys stay motivated throughout. Save it for a month and then all of a sudden go ahead. And that gives you $700 to blow in, you know, the next month. If you set it aside, set it aside for a few months, go on a little vacation, whatever you guys choose to do, that gives you Christmas, that gives you going out to eat, that gives you that fun money. Okay?

[B]

Okay.

[A]

But four and a half years is not the end of the world, right? Go through the budget team program, Build out your budget. Here's our rough idea of where we think life would be.

[B]

Okay.

[A]

And as income goes up, as income does go up, that helps propel this. Yes, but you gotta attack those deferred interest ones first. Pay them off.

[B]

Yeah, so that's one of my questions is I want to like how would you suggest prioritizing? Because I do have some deferreds that are like at the same time. They're like roughly at the same time.

[A]

Well, with this $3,000, with where you are, your deferred interest balances weren't the craziest high ones.

[B]

No, I mean care credit, yeah, but.

[A]

Care credit, a lot of that was like 20, 26 as well. So with 3,000 hours a month and the balances I saw on the care credit is deferred interest. One should be killed before the deferred interest hits. Okay, so prioritize the dates.

[B]

Okay.

[A]

And then after that, just as small.

[B]

As balances, because I do care credit. We were paying like $1,000 a month to care credit. The last for a while. And so yeah, now it's dropped down to where our promotional purchase is like three something. So we have that extra wiggle room there to be able to put into the different promotional purchases.

[A]

Okay. So the only other thing is your truck. I mean your truck's honestly kind of can't really finesse that. The Bronco might be able to borrow the difference. Get a cheaper car as well. That gives you a. That'll give you maybe like a thirty thousand dollar debt instead of a 66,000. That might be worth it temporarily. That honestly probably saves you about a year on here. And I'd rather go from four and a half to three and a half. Call it three after. You know, income goes up throughout the years.

[B]

Okay.

[A]

So that might be an option to consider as well. I would personally do it. I'd personally do that. So. All right, we'll connect you with the tools. We're going to talk in the post show. We're going to bring everyone into the post show in the YouTube membership. There's also a show where you guys can call in and talk to us live, by the way about your finances or whatever drama or anything in your life. You can do that. You can talk to us and then it'll be fun. So make sure you guys join our YouTube membership link in the description below. Let's get your household Hammer Financial score. You said two. You said three. Spend any budget you ever spent. Zero out of ten debt. $130,000 of debt. Come on. It's your annual income. I can't give you better than a 1 out of 10 emergency fund. There was no savings 0. 10 retirements barely a start. 1 out of 10 real estate, it's the only thing you have going for you. It is a big balance. Minimum payment's okay within your living situation. You're having to invest a lot into this water situation. You haven't figured that out? It's a bit weird and great interest rate, but it's okay. 7 out of 10 Hammer Financial Score for today. Then we'll have a follow up on the Financial Auto follow up channel whenever you guys are ready. Before today it rounds up to a 2 out of 10. Make sure you guys bundle all of our educational programs together for 15% off. That is what over 10,000 people have done and they've changed their lives. Now come join us in the financial audit post show. You didn't know how much.

[B]

I did not know how much the tools were.

[A]

Did you not communicate this to her?

[C]

No, we talk. We talked about it? One of them. I tried.

[B]

Talked about the other stuff.

[A]

Do you guys actually talk about anything? Money.

[C]

Sometimes.

[A]

What do you talk about? How does this go?

[B]

When Caleb brought up. I know. Financial. In your family, we all kind of gave each other a look. What's the tea there? And how are you so sure that you're not going to get burned again?

[A]

To watch the financial Audit post show, click the join button below.