Tax Evading Freak Disgusts Me | Financial Audit

Summary

Financial Audit Podcast Summary

Episode Title: Tax Evading Freak Disgusts Me | Financial Audit
Host: Caleb Hammer
Guest: Adam (32, Virginia Beach, VA – Remote Software Developer)
Date: October 30, 2024

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Overview

In this eye-opening episode, Caleb Hammer sits down with Adam, a high-earning software developer from Virginia Beach, whose financial life is quickly spiraling out of control. Despite a six-figure income and relatively modest fixed expenses, Adam is drowning in credit card debt, struggling with compulsive overspending, and facing wage garnishment over unpaid vehicle property taxes. Caleb probes into the roots of Adam's financial meltdown, explores his mental health challenges, and delivers tough-love advice on building discipline and rescuing his future.

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Key Discussion Points & Insights

1. Adam’s Introduction & Financial Background

• Adam is 32, lives in Virginia Beach, and works remotely as a software developer ($175k/year, recently raised from $107k and previously $91k).
• Despite his strong income, Adam’s wages are being garnished for about $1,250 in back taxes—specifically for property taxes on his Honda CR-V.
• Adam admits to not paying taxes and being unaware of impending garnishment until it happened.

  "Well, the threat of garnishment didn't really come up. It was more like, now you're being garnished." – Adam (02:20)

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2. Spending Habits, Overspending & Roommate Dynamics

• Adam is consistently spending $1,500 more per month than he brings in. He admits to “having a warm heart” and often pays for dinners with friends and picks up the tab for his roommate, despite the latter’s offers to contribute.
• Adam’s guilt over others’ finances prompts him to avoid charging his medical resident roommate even minimal rent. He pays for meals, expensive outings, and justifies it by his own past as a “downtrodden” kid.
• Adam describes himself as aromantic and asexual (arrow ace), deflecting the possibility of a codependent relationship.
• Attempts to meal prep and budget have repeatedly failed due to "laziness" and a loss of confidence following a depressive episode.

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3. Mental Health & the Onset of Debt

• Adam relates a pivotal period of depression and a medical leave 1.5 years ago, which triggered a collapse in financial discipline.
• He went from $16k in savings and good payment history to “trying to buy his way out of depression”—spending thousands on digital art tablets, hobbies, and therapies.

"I was just like, kind of throwing everything at the wall to see what would stick as far as things to get me out of the depression." – Adam (11:13)

• Current expenditures include expensive psychiatric treatments (Spravato nasal spray), memberships, apps (notably Pokémon Sleep), and impulsive tech purchases.

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4. Credit Card Catastrophe & Debt Breakdown

• Adam has tens of thousands in credit card debt across six figures in available credit (notably Navy Federal, Capital One Quicksilver, Amazon Chase).
• Adam continues to spend on cards accruing 24–28% interest. Numerous subscriptions and in-app purchases (Pokémon Sleep, art tutorials, Patreon, etc.) contribute to recurring fees.
• Caleb is incredulous at Adam’s simultaneous attempts to pay down cards while incurring new charges:

"Why are we purchasing on a card that is accruing interest that you are not paying off? I will never understand that." – Caleb (13:36)

• Adam admits to treating his credit cards as “black boxes”, rarely reviewing statements in detail, and defaulting due to a lack of discipline and attention.

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5. Pokémon Sleep & Digital Dopamine

• Adam spends significant amounts on Pokémon Sleep, justifying $500+ months as a way to gamify sleep hygiene.

"If I don't go to bed at 10:30, Pikachu's not gonna be very happy with me now, is he?" – Adam (29:22)

• While Adam claims the app improved his sleep routine, Caleb points out the irrationality of high digital spending amidst crushing credit card debt.

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6. Medical Spending, Quick Fixes, and Financial Avoidance

• Beyond debt, Adam’s monthly spending includes medical copays, frequent fast food/dining expenses, impulsive Amazon buys, and expensive but seldom-used items (e.g., digital piano).
• He’s repeatedly missed payments, incurring hundreds in fees and banking overdrafts.
• Adam’s efforts to address depression are ongoing, but he acknowledges possibly relying too heavily on medical interventions over behavioral change.

"I think maybe I'm relying too much on that kind of stuff." – Adam on medication and treatments (40:32)

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7. Root Causes & Childhood Influence

• Adam grew up with a single mother working three jobs, a father who evaded child support, and a steady sense of financial insecurity.
• Childhood experiences of others paying for him now fuel his compulsion to reciprocate, whether or not he can actually afford it.

“I had, like, a complex because friends would want me to go out with them…their parents would pay for me. And now that I’m older, the idea of someone paying for me…feels like they’re downtrodden, so now I pay for them.” – Adam (49:17)

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8. Denial, Pie-in-the-Sky Solutions, and Path Forward

• Adam floats solutions like “getting a second job” or “selling his house,” but avoids addressing root behaviors.
• Caleb insists on discipline before dramatic financial moves, arguing that otherwise Adam would repeat the same destructive patterns.

“If you just sell your home and you use that money to get out of debt…you’ll get right back in the situation because you never address what actually got you there in the first place.” – Caleb (73:52)

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Memorable Moments & Quotes

• On Guilt and Enabling:
  "Are you easily guilt-tripped and manipulated?" – Caleb (09:19)
  "Yeah, they didn’t [manipulate me], but in general, are you though? Historically not the greatest." – Adam (09:28)

• On Overspending Despite Income:
  "Why are you spending so much more than you bring in? You don't make an insignificant income." – Caleb (05:02)

• On Medical “Investments”:
  “I've tried a lot of things… I thought that these things would be investments in a better me.” – Adam (45:43)
  "You're trying to buy your way out of depression. That's... I don't think that's how it works, buddy." – Caleb (45:52)

• On Card Mismanagement:
  "18 years without you purchasing on this is how long this takes you to pay off. With your purchasing, you'll be in your 60s." – Caleb (38:32)
  "I thought maybe like a few years." – Adam (39:00)

• On Giving Up:
  “These are statements and finances of someone who's just given up… That's a harder conversation than doing a wake-up call. Someone realizes their situation is worse than they thought before they came in. But when someone has given up, what can you do with that?” – Caleb (51:12)

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Timestamps for Key Segments

• Introduction & Garnishment Situation – 00:23–03:32
• Overspending/Roommate Discussion – 05:02–10:20
• Self-Assessment & Depression Backstory – 10:36–12:34
• Credit Card Analysis & Spending Rationale – 13:13–21:13
• Pokémon Sleep Habit – 27:57–32:36
• Therapy, Medical Spending & Avoidance – 40:04–46:09
• Childhood Influence & Money Guilt – 48:02–50:29
• Budgeting/Spending Audit – 62:06–65:09
• Caleb’s Debt Payoff Plan & Advice – 66:00–74:20

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Financial Diagnosis & Caleb’s Tough-Love Plan

• Budget Redesign: Selling the car to eliminate a $533 monthly payment and unlock $7,000 in vehicle equity.
• Minimum payments on remaining debts, Avalanche or Snowball method for debts in the $5,000 range.
• Meal prepping, cutting discretionary/fun spending to $300/mo
• Canceling unnecessary subscriptions, all in-app/game buys, and evaluating if upcoming travel can be canceled or postponed.
• No support for others (niece’s college, gifts, roommate subsidy) until debts are under control
• Strict budgeting, focus on discipline, building toward a six-month emergency fund, and delaying car and additional big purchases

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Final Assessment

• Spending & Debt: 0/10 (significant overspending, missed payments, wage garnishment)
• Emergency Fund: 0/10 ($5 in savings)
• Retirement: 0/10 (no contributions)
• Real Estate: 7/10 (solid equity in home, low fixed rate)
• Overall Hammer Financial Score: 1.5/10

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Takeaways

Despite earning more than double the median US household income, Adam is on the verge of financial disaster due to psychological hurdles, misplaced generosity, and self-admitted laziness. Caleb’s assessment: redemption is possible—if Adam builds discipline, cuts delusional self-justifications, and leverages his income toward debt freedom rather than digital “Dopamine hits.”

“You can do this in quicker than three years… but three years is still nothing.” – Caleb (74:16)

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For listeners: Adam’s journey is a cautionary tale: high income is no match for unchecked spending and emotional money issues. Discipline—not dollars—determines long-term financial health.

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Noted but Skipped: Ads, sponsorship reads, and non-content sections are omitted from this summary.

Transcript

[A]

To watch episodes of Financial Audit a week earlier. Check us out on YouTube. Pokemon. We know this is the bad card. So why. Why so much money being spent on here?

[B]

Dude, I don't know why the minimum's that high.

[A]

Because they're not paying on it. What do you mean? That's what happens. I have it stacks. No, you're not. It says. It says no.

[B]

Hello, my name is Adam. I'm 32. I live in Virginia Beach, Virginia, and this is Financial Audit.

[A]

I'm. Thanks for coming down to Austin.

[B]

What do you do there for a living in Austin? Oh, in Virginia Beach. Sorry, what are you working while you're here?

[A]

Yeah. What do you do?

[B]

I could be. I work remotely in Virginia Beach. I work for a company that basically does tech solutions, and I'm pretty much just a software developer.

[A]

Software developer. What are you making?

[B]

I'm making 175 a year right now, but my wages are currently being garnished being garage.

[A]

From who? The government.

[B]

Is there anyone else?

[A]

Okay, I'm assuming for taxes.

[B]

Yeah.

[A]

What are we not paying? And what. What is up with what? Why is everyone on the show obsessed with like, hey, there's taxes to pay? Let me not. Well, well, wait, is it taxes? Because it could be student loans too.

[B]

No, it's taxes. It's taxes on my Honda crv. What?

[A]

You're being garnished for taxes on your Honda?

[B]

Yeah, I kind of.

[A]

I've actually never even heard of that, honestly.

[B]

Well, property taxes.

[A]

That one I've heard of.

[B]

Yeah, property taxes on the Honda. So. Yeah.

[A]

Okay.

[B]

Yeah. Yeah, it's interesting.

[A]

How much was owed and why didn't you pay it?

[B]

So I think it's about two years. I think it's totals about 1250.

[A]

And why 1250? $1,250. $1,200?

[B]

Yeah.

[A]

You make 100 something.

[B]

Yeah, I kind of.

[A]

Why did you pay.

[B]

You make so much money for God.

[A]

Okay, but when all of a sudden, like, the threat of garnishment came up, why would that not be like, okay, maybe I should just pay it then?

[B]

Well, the. The threat of garnishment didn't really come up. It was more like, now you're being garnished.

[A]

Okay, then just pay it instead of being garnished. You make money.

[B]

Yeah, but like.

[A]

But you make money.

[B]

I don't know how much they're going to garnish, so I'm just like, probably the full amount.

[A]

Maybe some penalties, you know, if I'm.

[B]

Already going to maybe, like, put it in, you know, like small payments. I just know that this is a drop in the bucket compared to what we're going to get to.

[A]

Really.

[B]

So.

[A]

Sake. Okay.

[B]

Yeah.

[A]

Has the garnishment hit yet?

[B]

No.

[A]

So you just got notified?

[B]

Yeah, I got an email to my work email.

[A]

And it doesn't say how much or details or anything?

[B]

No, not that I saw.

[A]

I had payroll. 5784. Does that sound about right? Feels a bit low.

[B]

Low. I. I feel like it's probably closer to if. If we're doing just like every, like two paychecks a month, maybe I'd say probably closer to 49 or 59, maybe. I think.

[A]

Okay, closer to 5,900, something like that. So we're only a couple hundred off. It still feels a bit low. How about you contributing to 401k? How much gets taxed in Virginia?

[B]

401K. Nothing.

[A]

Health insurance.

[B]

Health insurance? Yes, I do do health.

[A]

You have, like, the top plan.

[B]

It just seems a bit. I want the top plan for next year, but I do not have the top plan. I think I. There's only two plans, and I have the one that isn't the top one.

[A]

Okay, so 5,900 bucks a month and we don't know what's going to be garnished. I'm just so confused. Why wouldn't it just pay? Well, actually. Never mind. It makes sense. How many do you think you spent? How much do you think you spent.

[B]

In the same amount of time in the last month?

[A]

Yeah. In the month that we have your statements from again. 5784 is payroll. I'll say 5900. Sure, why not? What do you think was spent from my checking account? Everywhere. Spent everywhere. From anything. Take that mic pole a little closer.

[B]

Okay. Yeah. Maybe you just. Oh, wait, I put it in the wrong place again.

[A]

It's fine. Just if you're going to lean back, take the bike and do this.

[B]

Okay. Okay. Okay.

[A]

So how much was spent?

[B]

I am thinking for the last month, probably maybe a little bit more.

[A]

Yeah, go ahead, give me a number. Maybe like 67,360.

[B]

That's.

[A]

So, no, you're not paying your taxes. Like, why are you sending so much more than you bring in? Again, you don't make an insignificant income. Is this a single household income?

[B]

Yeah, I have a roommate.

[A]

Oh, okay. But. Okay. But it's not like no significant other.

[B]

No. And I don't.

[A]

But a roommate.

[B]

Okay.

[A]

Even with the roommate and a relatively strong income. Sound like Virginia. I don't know about Virginia beach specifically, but I know Virginia can be a.

[B]

Bit expensive, so my mortgage is not high enough.

[A]

Mortgage. That's right. Because.

[B]

Yeah.

[A]

What's your mortgage payment?

[B]

It's literally only like 1200.

[A]

Okay. Well, I mean, yeah, it easily fits in your situation. And then you have a roommate. How much is your roommate giving you a house?

[B]

So she has asked to pay me in the past, but I. I don't know. I don't feel comfortable accepting my.

[A]

Why is she, like, no limbs or something and you just feel terrible if you did it?

[B]

I. I just feel like she worries about money a lot more than I do.

[A]

But even if she chipped in, like a few hundred bucks, it's at least contributing to you providing shelter.

[B]

She has like a. She has like, medical like. Or like medical school loans.

[A]

Oh, and so, like, she's gonna make money. She is if she's not dumb.

[B]

But she's not yet.

[A]

Well, okay, well, honestly, that's your choice. If you want to. That. That. That is fine. It's your place. Do whatever. What. But. 500 dollars more than spent.

[B]

Yeah. And as long as you've been. She's like, pestered me about it, so.

[A]

Well, then let her pay. Dude. What do you. Yeah, it's not. You guys aren't weird, are you?

[B]

No, no, no, no.

[A]

Not getting, like, weird rent.

[B]

No, no, no, no, no, no. She's just been my friend since I was like, 12, so I'm. I'm.

[A]

I. Oh, she's been in your friend since. How long have you guys lived together? How long she lived with you? I mean.

[B]

Yeah, yeah, on and off, two or three years. Like, she stayed with me for over a year when she was studying for her step exams for medical.

[A]

How much does she want to pay you?

[B]

Different numbers have come up.

[A]

Median.

[B]

So she's mentioned 500. And then I've been like. I don't know if I could see myself charging her over 100.

[A]

Over 100.

[B]

I just feel like she's in medical.

[A]

School right now, but. Yeah, so she's probably not earning anything.

[B]

She's not in medical school. She's actually first year residential, so.

[A]

So she's making money. It's not substantial, but she's making money.

[B]

But she, like, wants to pay off her credit card.

[A]

I don't give a. What you guys do. I don't see. I don't care. Yeah, this is pointless. But, like, if she's offering and your finances are like. Yes. It's not you demanding. She's offering. It's different.

[B]

I just have, like, a really hard time.

[A]

You guys don't have any weird relationship.

[B]

No, no, no, no, no. I am, I'm actually. You're not deeply in love, actually. Arrow Ace. So it's not.

[A]

You're gonna have to explain that for me.

[B]

Aromantic, asexual. I am not interested in by any stretch imagination. I just.

[A]

Except for her. Right?

[B]

Especially her. No.

[A]

Jokes. Jokes.

[B]

Yeah. I just have like a really hard time when I know that people are worrying about finances, accepting any money from them. So like I had a dinner with her medical resident friends who are like my friends now too. But basically at the end of the dinner they tried to like split checks and stuff. And it seemed like it was going to be like, you know, stressful.

[A]

Medical debt. I mean.

[B]

Yeah. So I just. I ended up just like paying for everybody. And that's something.

[A]

Are you easily guilt tripped and manipulated and they don't. But my issue. Yeah. Yeah, they didn't.

[B]

But in general, are you though historically not the greatest.

[A]

The thing is I'm good with the warm heart. Totally good. Totally good. You spent a thousand five hundred more than you brought in and your wages are getting garnished because you didn't pay your taxes. So I don't think we're having a warm heart.

[B]

Yeah.

[A]

In that kind of context you can have a free warm heart, but not where it's costing you money.

[B]

It just like paying for people's dinners in the future. No, it was. It was 400 for my roommate. I also always pay for meals when we go out. And sometimes we have like pretty, pretty expensive tastes. Especially if we're like in D.C. or New York or you know, you just.

[A]

You don't get those options anymore. Okay. Yeah, I just, I want to see, I want to learn more about that. Can you give me a self assess? Where do you think you are today financially? A score 0 to 10. 0 being the absolute worst, 10 being the absolute best. Where do you think you are today?

[B]

So I did do the online thing Yesterday. It said 2 but. Or no, it said 1. Sorry, but I feel like probably closer to a 3 because I think I have options maybe. And I do make like a decent amount of money in the grand scheme of things.

[A]

I. Okay, like what?

[B]

Like options.

[A]

You're asap, but I think you're a conceptual to the sense of money as well.

[B]

I used to be really good. I really was. A few years ago I went on a medical leave of absence from my work due to like really bad depression. Okay. And at the time I had probably about $16,000 in my savings. I was paying Everything off perfectly on time. I wasn't budgeting. I wasn't, like, contributing to, like, a 401k or anything, but I was doing much better. But following that medical leave of absence, I kind of, like. I was just like, kind of throwing everything at the wall to see what stick as far as, like, things to get me out of the depression.

[A]

Okay, well, all right.

[B]

I spent. I spent a lot of money on.

[A]

Is that where the debt is?

[B]

That's where a lot of the debt came from.

[A]

Okay, if you guys want your Hammer Financial score, it's free. Link in the description below. And if you want to come on the show here in Austin, Texas, you know, like, Weird Al over here, you can, you know, Caleb hammer.com apply. It's exciting times. All right, let's get into it. Yeah, let's get into the money. Let's figure out. How would you say you've been in debt 32 years old. How long have we been in this situation?

[B]

Probably the past one and a half years.

[A]

This is a lot of debt for one and a half years, especially for someone that makes so much money.

[B]

I accrued a lot. I will say.

[A]

Oh, will you?

[B]

Well, I will, if. If it's okay. Oh, please. So I did get a raise.

[A]

Oh, congratulations.

[B]

To 107.

[A]

And where were you?

[B]

I was at, like, 91.

[A]

That's still incredible. Median household income in the United States. A household income in the United states is what, 65? Something like that? Come on. Come on. It's just you.

[B]

I know, I know, I know.

[A]

Just you.

[B]

Yeah.

[A]

$5,518.88 on the Capital One Quicksilver card with 100 great $181 minimum payments.

[B]

Yeah.

[A]

Not insignificant. So this is. This will always get me, man. I really don't get it. You probably want to pay off this card, right?

[B]

Yeah.

[A]

Okay. If you want to pay it off, why are we purchasing on a card that is accruing interest that you are not paying off? I will never understand that, especially for someone that has strong income and can spend their money with a pretty low mortgage for their income.

[B]

I feel like the Capital One cards, they're both quicksilver, by the way. I feel like I haven't spent that much.

[A]

Why would you spend a cent? A cent?

[B]

Yeah.

[A]

$126.54 of interest was accruing. You spent $58. Your balance went from $5,526 only down $8. $8. Even though you put $184 to it and had other credits of almost $10, yet only $8 actually went towards that net because you're spending. So I don't care. If it's a lot of money, why put money towards it at all? In terms of spending, I'm somewhat of a budgeting master myself. So when friends and family are going abroad and need help with travel budgets, I'm the guy for the job. And you know what's a crazy charge I see every single time? Insane data roaming fees, or what I call taquitos. Abroad, people I know have ended up paying an arm and a leg just to get online. And I'm sure you've had to do the same. But with the sponsor of today's video, Saily, staying connected is budget friendly and easy. Saily is an ESIM service that gives you affordable data plans in over 160 countries. Instead of connecting to unsecured public networks, scrambling for a local SIM card, or even worse, getting scammed by those shady airport vendors, you just install it once and stay connected the entire trip. With options for affordable data plans that help you avoid those insane roaming charges, Saily makes sure there are no surprises. If you hit 80% plan usage, they'll even send you a reminder. Unlike some others that charge you first and tell you later setting up as easy as can be. Download the app, pick the data plan, and you're good to go. And if you need any help, Saily chat Support is available 24. 7 no matter where you are. And here's the best, best part. You can get an exclusive 15 discount on Saily Esim data plans. Download the Saily app and use code Caleb Hammer at checkout. You can even scan the QR code on screen right now and get started today. So whether you're budgeting for that big international trip or just want to make sure you're never offline, Saly's got me and you covered. Scan the QR code on screen and don't miss out on the 15 discount with code Caleb Hammer today. Now let's jump back in today's episode.

[B]

I think I. I think I've had like some subscriptions maybe on it.

[A]

Okay, cancel the damn subscriptions.

[B]

I think. I think I have gotten rid of some.

[A]

Tokyo, Japan Wait, was this.

[B]

What was that?

[A]

Oh, you know what? That may have been a $550 purchase. Well, exchange rate is this. Is this what?

[B]

What year is this?

[A]

August 2024. Is that financed, though? Is that a purchase that's financed 500? Then we have Fan box. Tokyo, Japan.

[B]

Oh, okay. If it's just like smaller Payments for the Fanbox stuff. That was like art tutorials. I think there's also Patreon, which is like Japanese.

[A]

Yeah, there's a Patreon you're not subscribing to our post show, which is the amount of money with much more value.

[B]

I thought about it.

[A]

No, please don't. You can't. Your situation st. But I'll punch you in the face.

[B]

Well, I didn't because of that.

[A]

Yes, but even still. 1,450. Oh, is that yen? Yeah, cuz it has the US dollar mark, that's why.

[B]

Okay, well, still, it's a 3.

[A]

$3.80 purchase, then a $10.2 cent purchase, then a $20 pharmacy thing, then a $5 Patreon. So I, I just.

[B]

The $20 pharmacy thing is from my treatment.

[A]

Wonderful. Spend it on a debit card, health savings account.

[B]

I don't. I guess I have to talk to them about it because they're the ones who.

[A]

Yeah. Update your card. You can update your card on anything and everything.

[B]

Okay. Yeah, I could do that. I can definitely do that. And the. The Patreon and Fanbox stuff is really. I don't even like, use them anymore. They've just like kind of been sitting there from when I thought I would be doing art stuff or more Japanese stuff, and I didn't.

[A]

So what. What were you gonna do?

[B]

I just. Well, so like I said I. After or. Yeah, during the medical leave of absence even I was really trying to like throw stuff at the wall, see what would get me out of my depression. Okay. I spent like $3,000 on a Wacom drawing tablet having no digital art experience, like, at all.

[A]

Can I ask, what's your social life like?

[B]

My social life? It's. It's pretty. Okay.

[A]

Yeah.

[B]

I co. I co. Run a Japanese language meetup group in Virginia Beach.

[A]

Gosh, you look like you'd be in the Japanese.

[B]

Well, is it the shirt? Is it the hair? Is it the. I don't know, general unkept.

[A]

It's just written all over you. I'd go get sushi with you.

[B]

Oh, okay.

[A]

Okay. Okay.

[B]

I don't eat fish, but.

[A]

Oh.

[B]

Yeah, I do do that. And then I have. I have friends.

[A]

Okay.

[B]

I just want to make sure I don't really ask them to do stuff very often.

[A]

Why?

[B]

Because I feel like a lot of them are like in couples and third wheel drawing it.

[A]

Well, you wouldn't. Okay.

[B]

I just feel. I feel like. I don't know. I feel like I'm being presumptuous if I try to insert myself into anything.

[A]

But I mean. I mean that just have. I don't know. People need to be more forward. I don't know.

[B]

They.

[A]

They should say. You should say.

[B]

And I have my roommate also just.

[A]

Asking, like, hey, do you guys want to go do this? That's not inserting yourself into something you're inviting people to do.

[B]

Yeah, but then, like, I feel bad if they don't want to, but they say yes. And, like, why would they say yes.

[A]

If they don't want to? Unless they're. What, are your friends? Aren't your friends just out of sympathy? Are they? Or are they your friends?

[B]

I mean, they're my friends.

[A]

Oh, there you go.

[B]

Yeah.

[A]

So it's fine.

[B]

I just feel like I say yes a lot of time when I don't want to do stuff.

[A]

Well, and we know that's a major flaw of you.

[B]

Yeah. Yeah.

[A]

Okay. Okay. Well, I just wanted to make sure, you know, you talk about depression, you know, just. I just want to make sure. Just kind of where you are at in life. 29 of fees this year. So you've probably had a late payment this year so far on this card, and then $555 of interest this year so far on one card.

[B]

We're going through many cards the whole year hearing that. That's a big.

[A]

You haven't looked. You not look at your statements. Are you not a statement?

[B]

Look, I. I look at the. I look at the individual statements, but I've never.

[A]

So you look at the statements. Okay, congratulations. Then why are there four purchases on this damn card? If you look at the statements.

[B]

Is it the subscription one?

[A]

No, no, no. Even while there was the $5 subscription. But even still, if you're looking at your. Sorry, 6,006 purchases. Oh, five purchases. Even if you're. But if you're looking at your card, why would there be purchases then? Because you'd be informed on your interest. You'd be informed on your minimum payment. You'd be informed on how much is actually going towards it now.

[B]

Yeah.

[A]

So why is there purchases on here? Because a lot of people that come on the show and they don't even look at the cards.

[B]

So what. What I feel like happens is, like, my cards kind of turn into black boxes, okay?

[A]

Cut them up, burn them, feed them to the sharks.

[B]

But what if I need them?

[A]

Why would you need them? You make good money. Your required living expenses are quite low.

[B]

Spending $7,000.

[A]

Apparently you're stupid with money. That's different. But you don't. I don't think you would need them.

[B]

Yeah, I don't know if I can get down to 5,900.

[A]

Huh.

[B]

Like, I don't, I just don't know because if I'm spending like 7,000, like that sounds like, what do you spend.

[A]

A thousand dollars on going out to eat? I think we have room to cut. That is literally only one category. Miscellaneous bullshit. Could be video games. It could be the Japanese crap. Another,122 of purchases. Unknown. Shopping that's typically Amazon or Walmart. Don't really know. $548. There's things to cut. Other large purchases. $696. Come on.

[B]

Yeah, yeah. Like the, the food stuff is like.

[A]

This is, this is thousands of dollars. This stuff. Almost 3,000. $3,000. Things we could easily do.

[B]

I've tried to do like meal prepping. I, I have and I, and I've done it like one weekend and then it lasted for like a week.

[A]

So you're lazy.

[B]

Yes, that's true. But I also feel like I should make enough money to be able to do these.

[A]

Sure. And we actually might be able to budget it in the end. We'll see.

[B]

But yeah, but I don't budget. I, I, it's more like. Well, I'm not surprised, but I didn't budget before the medical leave and I was like completely fine. I was like.

[A]

Were you though? Would you know if you weren't budgeting?

[B]

No, I was.

[A]

How do you know?

[B]

Because I had like everything in my head. Like I didn't, I didn't budget.

[A]

So what changed? What's different then?

[B]

I think, I think the depression kind of. Okay, well, reduced a lot of confidence and like it's made it so like I'm less confident and just like what I'm remembering I've purchased and, and so I probably should be writing it down.

[A]

Go through our budgeting program, go through our new debt class, going over the best ways to pay off your debt. And the best way is to utilize debt as the other debt classes, they don't talk about that. We want to cover both parts. It's discounted right now. 30 off, 35 off. Make sure you guys check that out. Link in the description below, but go through those, you get them for free. So go through them, build your budget, follow the meal prepping, use the debt strategies. And we're going to go over that in general in this in a high level way. Okay. 28.24% interest on this.

[B]

Yeah, I think both of them are around 28 installment loan.

[A]

$20,000 for what? You're right. You probably could go do that because of the money you make.

[B]

Oh.

[A]

Doesn't matter though, because you have twenty thousand dollar loan on just. What? On what? What is this for? What?

[B]

It's my Honda crv.

[A]

This is your car?

[B]

Yeah. And I feel like it's probably worth more than that because it actually is.

[A]

It's worth $7,000 more.

[B]

I don't really drive it a ton.

[A]

We might utilize that equity position at the end of this. Like, you're gonna be inconvenient. But. But right now, what's the interest rate.

[B]

On this for the. That one? It's, I think around four points.

[A]

Not. Not too bad. 533. Minimum payment of 42 cents.

[B]

Mm.

[A]

Okay. Yeah.

[B]

Yeah.

[A]

You have an equity position in the car.

[B]

Does that. Would I, like, take out another loan?

[A]

No.

[B]

Oh.

[A]

We'll talk about it at the end. We'll figure out what we want to do.

[B]

Yeah.

[A]

What is this? A Navy Federal? So we have a credit card with Navy Federal?

[B]

Yeah. They gave me a very high. At least by my estimate, credit limit.

[A]

Your balance is horrendous.

[B]

Yeah.

[A]

Yeah. You're almost maxed out. It's a 20. This card's insane. 23. $720 and $0.59. The minimum demand is almost as much as your car payments.

[B]

Yeah.

[A]

$449.62. This is insane.

[B]

Yeah, it's got lower interest.

[A]

Why are you purchasing a thousand $669 on there? Why? This is the bad card. We know this is the bad card. So why. Why so much money being spent on here? Dude, why?

[B]

So I.

[A]

Why the.

[B]

I use it, or I have used it for all of my medical stuff.

[A]

Oh, a Navy Federal credit card. We're not even negotiating with the hospitals for a payment plan, even a personal loan at like 10 or 12%. Why not?

[B]

It's. It's not really hospitals. It's like. Like psych offices and.

[A]

Is that the spra V A T O Bravado.

[B]

Yeah. Yeah.

[A]

Okay.

[B]

Which I think I should be able to stop.

[A]

What's your health insurance like? Have you not hit your deductible this year yet?

[B]

My deductible?

[A]

That's what it's not.

[B]

Yeah, it's very.

[A]

Oh, you. You don't. Come on. Shut up. That's not even true. You got some stupid little. And pizza and hot pot and honey.

[B]

I said historically.

[A]

Oh, you're historic historically. I'm getting by the statement.

[B]

Yeah.

[A]

Honest pastures. R A. This is a historically high credit card. $23,000 that is. That is insane to be going and getting honest pastures on there. Good. You're good. I don't care. What?

[B]

Yeah, they're the only beacon place in the area.

[A]

Just go eat some nuts off the ground. I don't care. You're stopping in a grocery, gas station, getting some. Some vegan drinks, Amazon coffee, Peace, Love little donuts, Creme Bakery, Pokemon 47 hours. Pokemon. Pokemon Go.

[B]

No, you're gonna be.

[A]

Oh, good. Yeah, let's ruin our life. Make a credit card go all the.

[B]

Way to a I.

[A]

Top of the limit, 25,000.

[B]

It might be better if it was Pokemon Go.

[A]

What?

[B]

It's Pokemon Sleep.

[A]

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[B]

And.

[A]

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[B]

It's such. It's a great. It's gotten me to sleep consistently. I sleep.

[A]

What is it? Explain. Just basically.

[B]

Basically it's a Sleep like partner app. So when you're sleeping, you have it on. It tracks your sleep. And depending on how you slept in the morning, you get to catch Pokemon and they join your team, feed your Snorlax, and it's just like. Yeah, I know. It's a great concept.

[A]

Is it?

[B]

Yeah, Yeah. I mean, it really did help me sleep.

[A]

Well, because it's forcing you to lay in bed.

[B]

Yeah, because it's like if I don't go to bed at 10:30, Pikachu is not gonna be very happy with me now, is he? Oh, boy.

[A]

Yeah, this concerns me.

[B]

And you can buy Biscuits to catch more Pokemon.

[A]

Oh, for sake. Pokemon Sleep is pay to win Pokemon Sleep.

[B]

And I'm winning. So there's that.

[A]

You don't actually give a. If you could choose upset, right?

[B]

Of course not. That would be weird. It's.

[A]

This is. Listen, if we're talking about depression, we're talking about social lives. I just want to make sure, like, this can't be an important part of your life. Right.

[B]

The sleep aspect is definitely.

[A]

But the reason behind it making Pikachu upset.

[B]

I've been playing it for. Since it came out, and it's just like. I don't know. I like, want my. I see big numbers. You see big numbers? I see really big numbers.

[A]

What are the big numbers?

[B]

My sleep scores. The amount my berries give to Snorlax. Like, my drowsy. I don't know.

[A]

Those words were. I don't know. Now we've gone beyond.

[B]

You should try it.

[A]

I'm not trying that.

[B]

Well, how's your sleep?

[A]

I think it's okay.

[B]

Maybe less good after this. I hope not.

[A]

Why?

[B]

Because that's like curses, buckets. So.

[A]

Huh?

[B]

It's a good game. So good app. That's all I'm saying.

[A]

Listen, if it's up in your sleep, I'm good with it. I just want to make sure, like, you actually do not. You're not treating them like sentient beings. No that matter.

[B]

No, no. They are cute, but, you know.

[A]

And also, why are you spending $47 on it? This is how you sleep.

[B]

There was an event.

[A]

A sleep event.

[B]

Yeah.

[A]

Happens every night.

[B]

Not for me, it doesn't.

[A]

I'm sorry to hear that.

[B]

Well, it's gotten better. I've started taking stuff for it. But, you know, Suicune came out and it costs a lot of business.

[A]

You spent $500 this month on this?

[B]

I'm being told this month? No, over time, more than that. But this month, no.

[A]

Or in a. In a month. You've spent 500 before previously.

[B]

Oh, in a month. Yeah. That's true.

[A]

That's cool.

[B]

That was mostly when it came out, buddy.

[A]

You are spending a thousand five hundred dollars more than you make. You have horrendous debt, even though you make substantial income.

[B]

I know this is bad. It also. It is like, when I see all of the debt, I'm like, the big numbers? Yeah, all the big numbers. But like the bad big numbers, not the good ones. Like, I have.

[A]

Both.

[B]

Well, in Pokemon sleep, you know, um, it's like what is probably tell. What's 47? What's 47? Dollars relative to $23,000 on a credit.

[A]

Being added to that, you know. Well, no, you were at like 21, 22,000. Now you're at 23,000.

[B]

It's like the way I'm thinking about it and, and this is definitely not a great way to think about it, but I'm definitely thinking about it this way is relative to the amount of interest I'm already paying $47 on.

[A]

So have you given up?

[B]

No, I just feel like I, I am, I have some pie in the sky maybe kind of things that I think will happen. Like I could get a second job.

[A]

That's pie in the sky. But also that doesn't fix anything. That doesn't fix anything. It's your behavior. You get more money. You just spend double.

[B]

Well, no, I, part of me is like hoping like, oh, if I get stuff down, I'll go kind of back to the responsibleer. Like it's more the big numbers that are causing me to be irresponsible. If I had the small numbers back.

[A]

What the are you talking about, man?

[B]

I know, it makes sense in my head. Like the big numbers stress me out and it makes it so talking about.

[A]

This like you're a five year old in therapy.

[B]

Yeah. If I got the second job and it had like a similar income, like.

[A]

You think you could do that?

[B]

Well, yeah.

[A]

Also doesn't matter. You'll just spend double what you bring in.

[B]

More. Well, so for my current job, I probably work like realistically like 5 to 10 hours a week because. And it's not like I'm like not doing anything on purpose. It's just like I can get the stuff done in that amount of time. I have all my.

[A]

They need to give you more to do then clients.

[B]

No, why would I let that happen?

[A]

Because they are spending a lot of money on you and I would want to make sure I'm getting my money's worth.

[B]

They, they are requesting a certain amount of work get done.

[A]

No, absolutely, I, I totally agree with that. They should do more work.

[B]

Yeah. But they don't know, so. And I'm not going to let them know. Like, why would I do that? Like other developers are working the same hours.

[A]

I don't really care. I don't get. Just if I was the owner of the business, like, they're probably paying a lot of people a lot of money when you could probably cut that in half.

[B]

They're getting paid a lot of money by these contracts. Through these contracts. I mean.

[A]

Well, no, but.

[B]

Okay.

[A]

I, I don't really Care coffee. No, you already did that there.

[B]

I never drink coffee.

[A]

Okay. Yeah, but you went to a place with coffee in the name. Oh, McDonald's. Real good.

[B]

Yeah.

[A]

Vegan.

[B]

I'm not vegan. I'm vegetarian. I get the breakfast. Sandwiches only.

[A]

Yeah. Historically don't have any meat on them.

[B]

The egg and cheese biscuit.

[A]

Oh, egg. That's. Veggies can have eggs. Okay.

[B]

Yeah, it's vegetarian.

[A]

Okay.

[B]

Yeah.

[A]

And then web tune. We're web tuning spent $1,669 on this card.

[B]

I think Spravato is up there. And my.

[A]

What did you just say? What?

[B]

Spravato. The. The treatment. So once a week I get a treatment done, but I think I'm going to be.

[A]

What's a treatment?

[B]

Well, I basically.

[A]

It sounds very weird the way you're saying, oh, you're doing that.

[B]

No, it. Well, kind of. It's es, I guess. I don't quite know the difference, but it's a nasal spray. You go there, they observe you for two hours while you're basically like, is.

[A]

That why you're wheezy? Okay, maybe.

[B]

But I've talked to.

[A]

Is it helping you?

[B]

Not at all. And I've done like 25 sessions and I've talked to. Yeah, yeah, I've talked to my prescriber and I think he's okay with me not doing it anymore.

[A]

So definitely a pro. If you got to 25 and that.

[B]

Would be like 600amonth.

[A]

Okay.

[B]

Probably because of Uber.

[A]

Does it feel good? What does it feel like?

[B]

It feels. It depends. Sometimes I feel like very little. Sometimes I have like really creepy, like.

[A]

I don't know, stories playing this conversation in my toes. I don't want.

[B]

Sometimes it's nice.

[A]

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[B]

Colors.

[A]

Okay. Okay. Amazon Chase.

[B]

Yeah, I don't think I spend that much on that anymore either.

[A]

It doesn't matter if it's that much. You're still spending on it. Yeah, so it doesn't matter.

[B]

But it's like.

[A]

Oh, shut your.

[B]

Isn't progress.

[A]

Listen.

[B]

Progress, huh? Isn't progress.

[A]

It's $20 of progress. Even though you put $174 towards it. Only $20 of progress because you're purchasing and there's interest you're purchasing on a car that there is interest that you're not able to fully pay off. I don't know what the you're talking about.

[B]

It's like I gotta get there, you know, I can't. Like, it's like quitting cold turkey is not easy, buddy.

[A]

Even if the spending was translated to your debit card. That's different. You're spending on a card that is accruing interest. I'd still be upset at that. Don't get. Yeah, no, it's true.

[B]

Yeah, but it's like. But if it's small amounts, what's it doing to the interest? Really?

[A]

Here, I'll tell you this. I'll tell you this, you little. 18 years without you purchasing on this is how long this takes you to pay off. Without you purchasing with your purchasing, you'll be in your 60s.

[B]

Okay, that's. That's a long time.

[A]

Uh huh.

[B]

I thought maybe like a few years.

[A]

Okay, well. Programmer doesn't know how to look at a number.

[B]

Well, I don't like looking at them. Okay, but I mean, I could do the math, you know.

[A]

Don't have to. It's right there for you.

[B]

I wanted to.

[A]

No need. Oh, it's on the wave.

[B]

It says 18 years.

[A]

18 years only the minimum payments. Doesn't even matter though, because you spend money on it.

[B]

I did not know that it had.

[A]

Well, you did Amazon purchases. It's at 24.49% interest found $1,000. $1,090 of interest on this card this year so far. $1,012 of fees this year. Who knows what the for probably miss payments. Why, why would we. You make too much money. You're so undisciplined. No, you're just. You're Too lazy or you just don't care? I don't know yet. I'm trying to figure that out.

[B]

It's At a given. Any given moment. It could be any of those is what it kind of feels like to me. I'm trying to really get out of the not caring part.

[A]

Okay, what is your trying then? Tell me, this trying. What's.

[B]

Well, I've gone through the Spravato treatments.

[A]

Okay.

[B]

I'm seeing a new prescriber. We're trying lithium. I may be a candidate for electroconvulsive therapy.

[A]

Oh, gosh.

[B]

Which, yeah, fairly invasive, but I don't know.

[A]

This is just out of my wheelhouse.

[B]

Like, it's. It's just. I think. I think maybe I'm relying too much on that kind of stuff.

[A]

I was gonna say, did you do therapy without medication first?

[B]

I did. I had a therapist for about four years, and. And she was just too nice to me.

[A]

Okay, so you get a different one.

[B]

Yeah, but then I felt bad about, like, breaking up with her.

[A]

Oh, my.

[B]

Yeah.

[A]

Dude, no offense, but you're kind of a paycheck to her.

[B]

I. Yeah, I know, but it didn't feel that way, like, to me, because she was, like, very nice.

[A]

No, they are very nice. It's not like they don't have any empathy. Like, empathy goes away because it's a business. That's not how it works. But, like, it's a. It is a business. She would understand if you saw a different therapy.

[B]

And you know, she did, like crazy. She did understand. But I do need to find a new.

[A]

You're not a credit card person. You need to use a charge card.

[B]

Like I used to be.

[A]

You're not.

[B]

I really did something like the FIST card. Yeah, I know.

[A]

I mean, you. Dude, next card right here. Missed payments. Miss payments. Up.

[B]

The absolute quicksilver.

[A]

Because it's the other quicksilver. Yeah, what I know about it.

[B]

No, I said, is it the other quicksilver?

[A]

I don't know if I said. But on the Amazon card, it's a balance of $5,623.

[B]

Yeah, I know.

[A]

They're like, 90 cents with minimum payment of $173. Okay. Quicksilver. This. This one's absolutely. It's not the highest balance like the other one, but you're just around. Yeah, we're at $5,747.10 with a minimum payment of $403. Because. Interest accruing, transactions and fees and. No, not a single cent applied to it. Not a Single cent.

[B]

I don't know why the minimum's that high.

[A]

Because they're not paying on it. What do you mean? That's what happens. I have it stacks. No, you're not. It says. It says.

[B]

No, wait, I. I could. I could get on my app right now. It says no payment due. Maybe. Maybe I paid it after that.

[A]

Hold the. Well, I don't know. Either way, it's just Patreon. Patreon and past due.

[B]

Yeah, they. They're dying. They're gone. They're 100%. I don't want them. Good to happen. Gone. I promise.

[A]

Okay.

[B]

Yeah.

[A]

And then are you gonna actually make it not pass due? That's a step to take. Listen, total. No, it's so. It's. Your fees charge this year was just that. But total interest this year was a thousand two hundred thirteen dollars. We have not had a single card yet that has not had fees or over 500 of interest accruing in a year. This is. Man. Yeah, you were in a perfectly good spot, and then a year and a half ago, this started.

[B]

No, no, like, so much in a.

[A]

Year and a half.

[B]

Like two years ago.

[A]

This is so much in two years, man. What is it just all fast food and Japanese?

[B]

Yeah, a lot of it is food.

[A]

Probably $1,000 spent going out to eat this last month. Yeah. I'm not surprised.

[B]

Yeah, I just. I. I mean, I feel like every guest says this, but food's really good, and it's, like, really hard to.

[A]

It is. It gives you all the dopamine. It's like. Yeah, that's your brain. Absolutely. But, you know, die under a bridge. That's your choice.

[B]

Yeah, y. Yeah. I mean, last night I was gonna get pizza, but then I thought of you, so I didn't. But now I'm gonna get pizza today. So. Yeah, maybe I won't. Maybe I won't do that. I won't do that. Maybe I. I will say, like. So I. I really tried to, like. To, like, figure out that, like, I thought, okay, if I figure out the depression. So I was spending like 275, like.

[A]

Every medication known to man and treatments.

[B]

Yeah, I know.

[A]

I don't know what you're doing, but.

[B]

At the time, like, I was spending like 275 a week on a prescriber. I. I think that we're calling them.

[A]

A prescriber and not a doctor. Psychiatrist is telling me all I need.

[B]

Yeah, because it's a nurse practitioner.

[A]

Okay.

[B]

No, it's not like the seller off the.

[A]

Well, when you Call them a prescriber. That's what it.

[B]

No, no, no. Nothing elicit as far as I know. I, I, I like tried to take a university class for like Japanese thinking, like, oh, maybe Japanese.

[A]

Anything outside of Japanese. Okay, sorry.

[B]

I bought a piano, like a Yamaha something or other.

[A]

It had to be the Japanese brand.

[B]

Great. I looked, I googled good piano.

[A]

Steinway.

[B]

Well, okay. Well that's, that's a lot.

[A]

Oh, it is, but I can't afford.

[B]

Well, I don't think you can afford. Yeah, either, but, but I like the Yamaha.

[A]

Sure, sure.

[B]

I just don't use it very much.

[A]

Yeah. Shocked. Okay, good. Continue. What were you saying?

[B]

Oh, basically like I've tried a lot of things. It's not like, like I thought that these things would be investments in a better me.

[A]

You're trying to buy your way out of depression. That's. I don't think that's how it works, buddy.

[B]

I've tried. People can get instant. A lot of things.

[A]

People can get instant copes. Either that's the eating out or it's going for a shopping spree. You can get the insta copes. But yeah, it's not a long term success thing.

[B]

Well, well, it's like I thought that those individual purchases would be like.

[A]

You think you're going to add up.

[B]

Like a time life, like the individual purchase. Like I will, I will get so enthralled by the piano that like I'll have found the way forward.

[A]

Okay. Well, I don't think it works for anyone like that. So I don't know.

[B]

I know that now. I do know that now. But I'm still, I'm like dealing with the consequences of me being wrong. Yeah. And then I'm, you know, add a little bit.

[A]

Kidding me. Past due amount, $142 on the synchrony card. Every card.

[B]

Synchrony, every card. That's my.

[A]

Oh, this is it.9898.

[B]

That's, that's my H Vac unit. I had to buy an entirely new H Vac unit because my.

[A]

What was the condition of your house? Did you not get it inspected? Did you not get H Vac inspectors out there?

[B]

I got the house like inspecting four years ago.

[A]

Did you get H Vac people out there though?

[B]

Yeah, I had, I had everything done. But it, it was like three years in.

[A]

Huh.

[B]

And I had to, so I had to.

[A]

Well, if it was three years in and it broke, well, what broke? Like, because an H Vac inspection should have been able.

[B]

The H Vac people said that it Would I would be better getting a new H Vac?

[A]

Well, no. If they wanted to make their money.

[B]

Yeah, but they were pretty convincing.

[A]

No, it's because you have the.

[B]

You're.

[A]

You're easy to manipulate. You're easy to control, you're easy to convince. Yeah, except for if I try to manipulate you to get out of dad.

[B]

No, no, you're manipulating me. I'm feeling manipulated. I promise.

[A]

I hope so.

[B]

I just. I. I feel like I have, like, a really bad relationship with money since childhood.

[A]

Oh, come on. That's what everyone.

[B]

I know.

[A]

I know. Here we go. What is it Mommy and daddy didn't teach you?

[B]

Well, that's true. That is true. Everyone says, well, Mommy and daddy weren't together.

[A]

Okay.

[B]

But welcome to America, baby. Mommy was working three jobs and barely home. I, like, basically was, like, fending for myself a lot of the time.

[A]

Or was that.

[B]

This was in Virginia. It was in.

[A]

They live separate.

[B]

Yeah. My father. My father didn't want to pay child support.

[A]

Okay.

[B]

So he left the country for a.

[A]

Way to get out of it.

[B]

Yeah. Yeah. And when he came back, he came back after my mom when I was, like, 19. My mom dropped the child support stuff, and then he came back to the country and, like, just bought apartments, cash. And so it was like, really, you know, it's not okay. Yeah. But. But when I was growing up, single mom working. Yeah. Three jobs, barely ever saw her. It was me and my sister. I had, like, a complex because, like, friends would want me to go out with them. Of course I would say no, but then they'd be like, no, no, you should come out with us. Will pay for you.

[A]

There you go.

[B]

Their parents would pay for you. And now that I'm older, the idea of that someone paying for me and like, other people having to pay for stuff when they are, you know, downtrodden, it, like, where they down, it feels like they are. I downtrodden.

[A]

Listen, you weren't begging. It is different than other people. Other people offering is not a bad thing.

[B]

I'm supposed to be doing well, and I'm not well, like, there's.

[A]

Via your choices.

[B]

Yeah, I know. There's a cognitive dissonance there that is, like, really making it hard.

[A]

Well, sure, if you were taking for money now, but when you were a kid, when, you know, your mom didn't have much to give and other friends wanted to go out and, you know, they were able to cover. That's different than right now. If people were paying for you. That's completely different.

[B]

Yeah, but now I pay for them.

[A]

Yeah.

[B]

Because I know what it feels like.

[A]

Yeah. But they probably could afford it. You can't.

[B]

They probably could have, technically. And not always, though. Like, I know something before. Okay. Oh, okay. Yeah, they could. I see.

[A]

Listen, you had 35 of fees because it was a missed payment, but you've had 105 of fees this year so far.

[B]

Yeah.

[A]

So you've probably missed payment three, four times. So. Great.

[B]

Probably.

[A]

Okay. 746 hours of interest accruing on this car this year. Wonderful, wonderful, wonderful. No payment applied, of course. So you owe a total of 319, even though the minimum payment is 142.36. Total balance 9,898, which is absolutely insane. And 36 cents. Fees charge, interest charge. Totally. It's just you. This is. These are statements and finances of someone who's just given up. There is no effort in here. There is no trying. There is not even a single inkling of discipline.

[B]

Yeah.

[A]

This is someone who's just given up. And at a certain point, when someone gives up, that's a harder conversation. It's a harder conversation than doing a wake up call. Someone realizes their situation is worse than they thought before they came in. But when someone has given up, what can you do with that? That's difficult. That's something I can't convince you to not give up. We can talk about goals, we can talk about aspirations, and that might help.

[B]

I don't want to, like, say the cliche, but, like, the reason I came here.

[A]

I'm not a magic pill, my boy.

[B]

I know, I know, I know, but. And I'm trying not to treat it that way, I promise. But I was just. I was legitimately excited to talk about finances.

[A]

No, sir.

[B]

And that's the thing that happens a lot for me. So I wanted, like. I really feel like this is something that's important to me.

[A]

Well, you want to know something exciting? The interest you've lost this year so far, probably in these cards as close to, I'm gonna say $4,000. Put that. Well, I mean, this is basic stuff, but, you know, that could have made 400 on average this year. You know, if this was just an average year, the S P500 a lot better. But if I open up my brokerage mumu. Okay, cool. Buy some S and P 500, that could have. You could have made that money.

[B]

Yeah, yeah. And I. And I.

[A]

But instead, it's all just lost interest.

[B]

Yeah, yeah, I know.

[A]

Okay.

[B]

I. I want to get into, you know, avenues of being able to create, like, you know, savings and stuff like that.

[A]

Yeah.

[B]

But I mean, I guess it's probably not possible right now.

[A]

I. I don't know. It probably just doesn't make sense right now because your interest rates are nearing the 30% mark.

[B]

Yeah.

[A]

So it's just like, what savings are you gonna do that's gonna.

[B]

And I do. I do have some, like, kind of costly things coming up that I don't think you're gonna be happy about either. I have some trips that I committed to.

[A]

What's committed and what trips? What are you talking about?

[B]

Okay, so I have. I have a few trips. So. Philly. Philly, December 1st, I have a. I have an exam that I'm taking.

[A]

Okay, well, that's different. That's okay.

[B]

That being said, I'm staying longer than I am.

[A]

Exam for what, though?

[B]

Japanese. I'm sorry. I'm sorry.

[A]

We already won.

[B]

Okay, wait, but we won 80 years ago. I have a. Well, true. I have another. Well, we're losing now.

[A]

Or not. Japan's been stagnant since the 80s. Their economy literally hasn't grown since the 80s.

[B]

Economically.

[A]

What. What. What are they winning at?

[B]

They've. They poisoned an entire generation.

[A]

We're winning a birth rate. We're winning at economics. They're winning at, you know, how long you stay alive. But guess what? Their entire country is that.

[B]

Video games are really good.

[A]

Yeah, I think we do pretty okay, too. Well, yeah, I know you Nintendo before you go to bed so that you can wake up with Pikachu's in your throat.

[B]

Well, some of it's like European more than American, you know, but that are. That are good. Western, but, but.

[A]

So what else does Japan win at? Go ahead, tell me. They have one car manufacturer or two, right?

[B]

No. Honda, Toyota.

[A]

Yeah, there you go.

[B]

Masters are good.

[A]

Okay, come on. And then they're not even close to touching us on electric cars. Right?

[B]

They're like cultural Exports are definitely like anime and video games and animation in general. They are probably the best.

[A]

Okay, so it's the little entertainment things, because you've brought up video games and you've brought up.

[B]

That's. That's cult. That's exports.

[A]

No, no, no. Sure, sure, sure, sure, sure, sure. But when you're talking about things they're better at, I was expecting a bit. A bit more substance than Nintendo.

[B]

What do you want?

[A]

Huh?

[B]

What do you want from them?

[A]

I don't know.

[B]

Why am I having to defend Japan right now?

[A]

Because you said they're bigger or better. I don't remember.

[B]

They're pretty okay. They're fine.

[A]

I like Japan. Japan's great, dude. I love sushi. Throw it in my mouth. I'm all about it, but.

[B]

Okay, I. I have another exam in November, but that's not a Japanese one. That's a tech exam. Okay.

[A]

You have to travel for it though.

[B]

No, no, no. I'm just saying, like, it's not like. I'm just like sticking to Japanese studying and stuff like that. And then what do you get from this?

[A]

Japanese fulfillment? Okay.

[B]

Yeah.

[A]

Couldn't have taken it online.

[B]

The exam? Yeah.

[A]

What's it. What's the exam for?

[B]

It's. It's a certification examination. It's. And they only. They only have it in certain areas of the country, like once a year.

[A]

Okay.

[B]

And where.

[A]

What are these other trips?

[B]

So I have. I have another trip to Chicago. I've already paid for it. I'm staying with a friend at the end of December. And then I've already paid for it. End of. End of January, I have a trip to Tulum in Mexico.

[A]

Can you cancel that one? Is it paid for?

[B]

I paid for the ticket, but I haven't paid for the ticket and everything. I don't know.

[A]

Check, see if you can get out of it. Also, it might be early enough that you can get out of it anyway. Are you creating videos as a full time creator? It's a grind between scripting, editing, and, oh, all those endless little tweaks. And sometimes it feels like taquitos would be honestly a better career choice. But that's where Today's sponsor, InVideo AI comes in. With over 10 million users across 15050 countries, InVideo AI is the world's most used AI video creator. I remember hearing about other generative AI tools what feels like ages ago, and when I recently looked, most of them aren't even available to the public yet. But InVideo AI v3 is going to be available for access soon all across the world. It's the only tool that'll truly put you in the director's seat. So here's how it works. To start, you enter in a detailed prompt. For example, make a one minute video shot of a diver exploring the deep trenches of Mariana. Show the Statue of Liberty sunk into the depths of the ocean with just the torch in frame. Have the diver encounter a giant, scary, blue glowing sea monster at a voiceover using my voice to the beginning of the video. The Mariana Trench remains mostly unexplored by man. InVideo's AI will generate a rough draft based on Your input. And it's unlike any video creation tool I've ever used before. Remember, you're the director here and can prompt whatever changes you need, just like I did. So if you haven't checked out InVideo AI v2 already, go check it out right now for free, with paid plans starting from just $20 a month. And if you use my code, Caleb Hammer 50, you'll get two times the number of video creation minutes in the first month. Scan the QR code on screen or check out the link in the description below to try out the future of video creation today. Cancel it. We can. We're gonna get you on a lot of trips, just not yet. When you're out of tens of thousands of dollars of bad debt.

[B]

And then in March, I was going to go to Italy in the beginning of March. I haven't paid for the ticket. My living would be free. It would just be the ticket.

[A]

Well, tickets to Europe aren't necessarily historically cheap.

[B]

Yeah, that's true. Probably I wouldn't know because I haven't looked.

[A]

And even though Pikachu's yellow, he's the Japanese kind of yellow, not the Italian tan.

[B]

Yeah.

[A]

So you're not gonna get anything while you're there. Anyway.

[B]

Pasta.

[A]

Wait, I think that was actually a lot more racist than I intended, now that I just said it out loud. I think that actually was not intended.

[B]

To be like that. Don't cut that.

[A]

I don't care. My audience isn't a bunch of pearl clutchers.

[B]

Yeah, yeah.

[A]

But I did not intend it in the way that it came out.

[B]

Guided by. By my Japanese friend in Italy. Sorry, My Italy. My Italian friend. Now you're. You're getting me confused. My Italian friend.

[A]

If you want a country that really has nothing going for it, go to Italy. Okay.

[B]

They got the boats.

[A]

Yes. Nowhere else has boats. Okay, so student loans.

[B]

Yes.

[A]

Mohela 33,194. For what again?

[B]

Oh, for my degree.

[A]

Okay. Which is actually serving a pretty good return on investment.

[B]

Yeah.

[A]

Your past due. This will garnish your wages. Are you sure it's not for this? You're past due.

[B]

No.

[A]

It'll take a long time.

[B]

I think I was. I think I was like a little.

[A]

How are you? Past due. I paid it by double.

[B]

It's paid now. I did pay it. It shouldn't. It's not past due anymore.

[A]

Okay.

[B]

Yeah.

[A]

Well, why was it past due?

[B]

I mean, you're not gonna like it. It's just. I forgot. That's. That's literally it. Yeah.

[A]

Why is it not on autopay. I'm confused. I need America, Japan and Italy is all invented auto pays.

[B]

It's a. I'm afraid that it's gonna, like, hit my account.

[A]

You make money and your expenses are low relatively. I mean, you've gotten yourself into thick expenses through your minimum payments, but.

[B]

Yeah. Yeah. And. And I feel like if I. I hate it, but I feel like if I start putting stuff on, like autopay and like, I have to, like, track everything. It's like, why it just use a budgeting app?

[A]

I don't know.

[B]

But I didn't. I didn't used to have to. So it just like, feels like I'm.

[A]

In an adult world. Oh, my gosh.

[B]

I was in the adult world. I had. I had money in savings. I was paying everything before it was due.

[A]

Buddy.

[B]

I don't give a. Yeah, I don't care. I know. I know. I'm not doing it now, and that's what matters, but it just. It sucks. I don't know.

[A]

Mortgage is good. $160,000 with 3.75 interest rate.

[B]

Yeah. And I think that might be worth around 22230 right now.

[A]

That's great. $1,159.29. So wonderful.

[B]

Yeah.

[A]

Amazon purchases. Let's see. Water hardness kit.

[B]

Yeah. I want to see how hard my water was.

[A]

Oh, hardness.

[B]

Not.

[A]

Not a harness.

[B]

I was reading a harness.

[A]

Okay.

[B]

Also, the Austin water is so hard. What is. What is going on with that?

[A]

I don't know. I have a water softener safety razor.

[B]

Yeah. I wanted to try it out and I've. I like it.

[A]

We haven't used it.

[B]

No, I used it, but.

[A]

Moisturizing shave cream.

[B]

Yeah.

[A]

Okay. Earwax removal kit.

[B]

Yeah.

[A]

Fun fact.

[B]

I was having.

[A]

The less you do, the less you try to get rid of it, the less it produces.

[B]

Oh, well, I was having issues with, like, ear infections, and I was like, oh, maybe this will.

[A]

Well, maybe see a doctor first. You love to go see every medical.

[B]

Specialist in the world.

[A]

Some bolt, some more razors. Getting that all clean. And here's the moving tape markers. Shower head. Okay. Shower head for all your hard water.

[B]

Yeah, I. I got that because my roommate was coming.

[A]

Wait a second. I'm so confused. Oh, how's the checking? Ended in $89. That's so. That's so ridiculous and so scary. So scary. Why would you do that to yourself?

[B]

I don't know. I've gone. I've gone below that. Like, I've gone below zero.

[A]

Great. Yeah. Overdrafting Wonderful.

[B]

Yeah.

[A]

Dude, these purchases are ridiculous. I said it would have been better if you put it on your debit card. Well, it doesn't even matter because you did it on both anyway.

[B]

Yeah, when it's.

[A]

I got some. Spent some more money on Japanese Nintendo. Spotify. You can listen to ads. You don't have money. You want to pay for other people. I don't give a. Yeah. Judy.

[B]

Sichuan. Yeah, they're good.

[A]

The Whale Team. Mellow Mushroom. Amazon. Amazon. Amazon Coffee place. Amazon. Amazon. Something Japanese. Amazon. Here we are. Salon. Come on. I'm not gonna go.

[B]

I'm not going there anymore.

[A]

No, you shouldn't have never gone to a place called Hair. We are salon.

[B]

It was very expensive.

[A]

Burger King and probably very Burger King.

[B]

Uber.

[A]

Uber. Discord. We're paying for Discord. Nitro. Do we have to. Burger King. Hardee's, Burger king Coffee Place. $97 book about sleep. Come on.

[B]

That's the. Come on. That's the largest package you can buy.

[A]

Support packages. Delete it. Use it on the sleep app. If Hire your roommate to punch you in the. In the morning if you're not sleeping enough. How about that? That's some negative reinforcement. That is Donuts. Some word I definitely can't. Can't pronounce. And you went there twice. Netflix, Taco Bell, Hulu First Watch. Slice of something. Crunchyroll. That makes sense. Uber. More Pokemon. $10. Crunchyroll.

[B]

I don't pay for my Crunchyroll.

[A]

Well, you sure do. You should probably cancel it and I maybe look at your statements here and there. Uber eats or not Uber. It's Uber. Uber. ATM withdraw and more. No more Nintendo. You're not even using this app. This app is using you. Good death.

[B]

Yeah, Yeah, I think.

[A]

Any bounds in our savings? $5 overdraft fees. 58 bucks this year so far. Great.

[B]

Yeah.

[A]

Great.

[B]

Yeah, great. I. I think. I think I would have to stop playing it to stop playing it.

[A]

Listen, get into bed at the same time because the only thing is you're just afraid that Pikachu is not gonna, you know, stroke your in the morning because you didn't get enough sleep. Yeah, but it's not actually improving your sleep health, Right? You're just going to bed at a proper time, right?

[B]

Oh, no, it is.

[A]

Well, how does your brain know that you wanted to. If I think about going to sleep more, I sleep worse. How does this. How's that working?

[B]

I. I mean, I go to bed at the same time, which over time has corrected my wake up times as well. I mean, it doesn't happen immediately, but.

[A]

You need the app to do that. Set a timer.

[B]

Well, I'm already. I already have it, technically.

[A]

Huh?

[B]

I already. No, I already have the ability to sleep at the. Correct.

[A]

That's what I'm saying.

[B]

I've gotten that from the app. So, no, I don't technically need the app.

[A]

Delete it. You do not need to be paying for Pikachu's job.

[B]

I'll delete it today. I will.

[A]

Okay. Income, 5900. Mortgage, 1159. What about your utilities? Altogether, added up.

[B]

Utilities altogether, added up. I would take the mic. Oh, sorry. Move it to.

[A]

You don't move to the mic, because you always move away. Take the mic, move it to you.

[B]

Sorry about that. Utilities all added up, including, like, Internet, maybe like, 400. Car insurance, like, 100.

[A]

Gas. Vroom, vroom. Drive. Drive.

[B]

I barely drive, so maybe, like, $10 a month.

[A]

Are you sure you go and do things. I have social interactions because I need you to.

[B]

Well, so I go to the library, and the library is quite close to me. And that's where.

[A]

That's where you guys hang.

[B]

Yeah. And karaoke I can walk to. It's, like, so close to.

[A]

You live in a walkable area.

[B]

Not at all. But I can walk to the karaoke place.

[A]

That's good.

[B]

Yeah. That is one thing I've thought about is getting rid of the car. And the only thing is, like, I have dogs. If there's like, oh, you can get an Uber. Yeah. Pet Uber, maybe.

[A]

Okay. Actually, so your minimum payments. This is insane, by the way. Are 202,139. But I'm actually subtracting the car because we are getting rid of the car.

[B]

We are getting really.

[A]

We're getting rid of the car right now.

[B]

Okay. I came in thinking that might be the case, and I'm okay with that.

[A]

Good. $1,603.85. Okay, now, good news. You have an extra 7,000 hours from selling the car. It's called $6,000, you know? Yeah.

[B]

So don't sell it to Carmex because they. They had a lower.

[A]

Absolutely not. Try to listen on Facebook. Get it clean, take good pictures. Facebook, Marketplace, Craigslist. Do that first. Phone bill.

[B]

Phone bill. That's like a hundred and.

[A]

What the.

[B]

How So I have. I. I don't. I have two phones.

[A]

To catch every Pokeman.

[B]

No, I. I thought so. If I got the family plan at Verizon and just use the phones I already had, it would give me more.

[A]

Sell the phone, switch to helium for 15 bucks a month. It's the same service as T Dam mobile. Yeah, listen, I don't care. Do you owe on the phones? Any of the phones? No, I've never cancel them. I'm putting 15 bucks a month as your service.

[B]

Okay.

[A]

Because just be reasonable.

[B]

As long as Helium has, like, data.

[A]

Basically it should be fine as far as I know. TP fund, 100 bucks. Anything else you need to survive? Necessary food. 300. Your meal prepping. Follow a meal. Meal prep. Meal prep and tweak it to your needs. Medical co pays. How much on a monthly basis? Because I know there's things here, so.

[B]

I'm gonna stop this bravado.

[A]

Just give me what you think it'll cost medically. On a monthly basis.

[B]

On a monthly basis. Let's say 100.

[A]

Okay. You have pets. How much for pet food?

[B]

So I go to Costco, so it's not that bad. It's like. I think it's like $35 a bag. And I probably go through like one and a half, so let's say like 50.

[A]

Okay. Pet insurance.

[B]

I don't get pet insurance.

[A]

How many dogs do you have?

[B]

I have two huskies.

[A]

Okay. I'm going to quote that at like 50 bucks.

[B]

Okay.

[A]

I'm going to call that. It's 70 bucks, actually.

[B]

Okay.

[A]

Just saved me literally tens of thousands of dollars because my. Because dogs love to eat things they're not supposed to, especially certain breeds. Okay. Anything else I need to put in your budget that I have not.

[B]

There is stuff I would like to be able to do.

[A]

Go ahead.

[B]

I'd like to be able to contribute to a college fund for my niece.

[A]

Nope, not yet.

[B]

Not yet. Okay.

[A]

Someday. Sure.

[B]

Someday. Okay.

[A]

To you getting out of debt. First, I'm gonna fully fund an emergency fund.

[B]

I don't know. I mean, this wouldn't be a monthly thing, but like Christmas. Like, I want to be able to buy my niece.

[A]

Take it from your TP fund.

[B]

For my TP fund. Okay.

[A]

That month? Yeah. Okay, good. $3,908. Listen, I'm going to give you 200. No, I'm going to give you $300 because you're making the sacrifices on your car. $300 a month for fun in your budget.

[B]

Okay.

[A]

There you go. $300. So you have $1,700 left over. Okay.

[B]

For paying off bull to be.

[A]

Be paying off all this debt. We're getting rid of the car. Okay. So we're immediately going to go for the. No, Sorry, sorry, sorry. E. I guess we snowball. Gosh. A Lot of them are so similar.

[B]

I think. I think Avalanche and Snowball are like gonna be the same thing. For my.

[A]

It's pretty close, but yeah, not really because you'd be focusing on the Navy Fed for so long.

[B]

But I thought the Navy Fed was lower interest than the.

[A]

Oh, sorry. I didn't even think about that. Okay, so for the two, for the three cards that are about the same in that 5500 range and going to focus on them first, that's going to take 10 months to pay off. Wonderful. And we have quite a bit of money left over all of a sudden on a monthly basis. Now we're at 2,200 left over on a monthly basis. Even with your fun.

[B]

After the three.

[A]

Yep, after the three. Synchrony is next. Takes about four and a half months and then move the extra from that one. Now we have about $2,600 left on a monthly basis. Then we pay off Navy Federal in nine months. So where are we? Two years?

[B]

Two years.

[A]

Two years. Two years and a quarter. Pretty darn close. Student loans, middle monthly payment till that's paid off. And same with the house. Your car is gone at that point. What you can do, I'd want to save up a $10,000 emergency fund. Then if you want to buy a car, go get another $10,000, buy a car and then save up your fully funded emergency fund after that.

[B]

So the 7,000, would that go towards the emergency fund?

[A]

Oh, sorry, 7,000. Just speed up. Sped up this by. Yeah, like what, five months? Four to five months. Okay, so take four to five months. So it's probably just about two years. Approaching two years. Then save up 10,000 hours. And then if you want a car, do another 10,000 hours. Get a 10,000 hour car. And then your original 10,000, that's your emergency fund. Take that, build it to a full six month emergency fund, which after your debt, I'm gonna say is about 17, $18,000.

[B]

Okay.

[A]

So I think we can do that plus all this and definitely in about under three. About three years. And that's nothing compared to what a lot of people have to go through on this. What's your retirement now? You said you have retirement. No. You're not contributing.

[B]

No, I'm not contributing.

[A]

Okay, then we need to really start catching up.

[B]

I've thought about also, I don't know how I feel about it or how you'll feel about it, but like I said, So I owe 160 on my mortgage.

[A]

Yes.

[B]

But from what I've been seeing in my area. It's like 220, 230 is sales. I do technically have options for places I could live for free.

[A]

If you want to, you can.

[B]

Yeah.

[A]

The reason why I like the debt payoff journey a bit more even though it takes longer. Your car accelerates you there. And you're fixing your discipline to get out of debt. If you just sell your home and you use that money to get out of debt.

[B]

Too quick, too painless.

[A]

Yeah. And you can get. You'll get right back in the situation because you never address what actually got you there in the first place.

[B]

That makes sense.

[A]

You can sell your. If you get the discipline under control and you prefer to sell your house, you totally can. That's up to you.

[B]

Yeah.

[A]

I don't think you necessarily have to, but you totally can. And actually. And you're. You're going to make more money. You're going to get more promotions. You can get a second job if you. If you want.

[B]

You can get.

[A]

You can do this in quicker than three years.

[B]

Yeah.

[A]

You can probably do it closer to two if you really go wild.

[B]

Yeah.

[A]

But three years is still nothing. Yeah, still nothing.

[B]

Second job would be nice if I could.

[A]

You have any thoughts, any questions here?

[B]

No. The numbers seem to add up.

[A]

Spending a budget, 0 out of 10. I mean you overspent debt. I mean, you're getting garnished for not paying. We don't know how much.

[B]

Huh?

[A]

We don't know. You said 12.

[B]

Yeah.

[A]

Just incorporate. Make that first. You pay that off in a month. You have an extra 1700 after fun every month. So pay off that. The past taxes. Okay.

[B]

Yeah. Yeah.

[A]

And add one more month to it. But zero out of ten because of that stupid garnish thing and not paying on your student loans or a lot of the credit cards. 0 out of 10. Emergency fund. There's nothing. There's $5. 0 retirement. 0 ton. Oh, real estate that will boost us. Good equity position, good interest rate. Okay.

[B]

I feel like the mortgage payment is low.

[A]

Yep. Mortgage payment makes sense for your situation. I'm gonna do a 7 out of 10 there. So 7. That's gonna be a Hammer financial score. 1.5 out of 10. Make sure to check out our new debt class. So you guys know how to. The best ways to get out of debt, but also the best ways to utilize that. We give you all the strategies that are from experts around there and make sure to stick around for the post show. It's going to be a lot of extra juicy stuff today on the financial audit post show. You lost all your money in NFTs?

[B]

Close to it, at least.

[A]

How much did you lose? A crypto in NFTs?

[B]

Yeah. So I think I invested somewhere between thousand into crypto into what it was into f that ethereum theory. And then I got bought into the NFT hype.

[A]

How much money did you lose in NFTs?

[B]

Probably all of it. Honestly, I don't know.

[A]

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