Worst I’ve Ever Seen

Summary

Podcast Summary: Financial Audit – "Worst I’ve Ever Seen"

Host: Caleb Hammer
Guest: Elise (24, Houston, TX)
Released: October 12, 2023

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Episode Overview

In one of the most eye-opening episodes of Financial Audit, host Caleb Hammer sits down with Elise, a 24-year-old cashier in Houston, Texas. Together, they dissect Elise's deeply troubled financial state—marked by missed payments, suffocating debt, and compulsive overspending—while exploring the roots of her money habits and mapping out a potential road to recovery. The conversation is frank, at times tough, but ultimately focused on transformation and hope.

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Key Discussion Points & Insights

Elise's Background and Current Situation

• Employment and Income

  • Elise works 25–30 hours per week as a cashier at H.E.B., earning $17.40/hour ([00:06], [00:24]).
  • She is preparing for the LSAT, aspiring to law school, which limits her ability to take on more hours ([00:31]).
  • Living rent-free with her father after college graduation in May ([02:55]).

• Financial Overview

  • Most of her $1,348 monthly income is consumed by debt repayments and everyday expenses ([04:09], [22:22]).
  • Elise’s checking account routinely drops to $5 by month’s end ([30:31]).
  • Over $10,000 in debt (credit cards, car loan, electronics, student loans; detailed below).

Problem Spending & Money Mindset

• Habits

  • Frequent small purchases at work—"taquitos," snacks, and fast food—out of convenience and poor planning ([00:13], [10:12], [12:16]).
  • Avoids tracking spending or reviewing statements due to anxiety and a sense of hopelessness ([10:00], [13:50], [56:39]).

• Root Causes

  • Elise attributes her habits to “laziness,” a lack of discipline, and not having faced real financial consequences due to her living situation ([02:26], [02:55], [12:16]).
  • Family pressure strongly influences her decisions, especially her father’s insistence on attending law school ([05:30], [41:54]).

The Debt Breakdown

• Credit Cards
  • Multiple cards maxed or over the limit, all with high interest rates (up to 30.49% APR), recurrent missed payments, and mounting fees ([08:45]–[19:55]).
• Car Loan
  • 2020 Toyota Corolla purchased at peak market, high interest rate (17.23%), with Elise already underwater by $5,000–$9,000 ([20:52]–[23:08]).
• Electronics/Service
  • AT&T bill: Phone (paid off via trade-in), iPad (~$900 left), and Apple Watch (~$286), totaling ~$1,150 in remaining device debt ([26:01]–[27:12]).
  • Monthly phone/service bill totals around $230 ([26:30], [44:16]).
• Affirm “Buy Now, Pay Later” Loans
  • $300 owed, $42/month average payments ([43:28]).
• Student Loans
  • Federal loans currently in deferment, accumulating interest ([29:16]–[30:08]).

Missed Payments & Overdrafts

• Severe Delinquency
  • Multiple months with payments missed on several accounts ([15:56]–[19:55]).
  • Total overdraft fees exceed $350 in one account, with repeated negative balances ([32:20], [34:18]).
• Aggressive Interest and Penalties
  • Over $1,000 lost to interest and fees in a single year ([15:49], [19:55], [33:04]).

Attempts at Change

• Began budgeting after discovering Caleb’s channel a month prior ([03:48]).
• Knows she must act, “I have a lot of work to do and I need to start now” ([57:27]).
• Realizes she must cut out nearly all discretionary spending, subscriptions, and even car washes to stay afloat ([30:52], [43:23]).

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Tough Love: Caleb’s Approach

• Direct Wake-up Calls

  • “I’m sorry, but this might be the worst financial situation I’ve ever seen.” ([25:37])
  • “Do not let me for a single second care about your situation more than you do. Because your future matters.” ([19:29])
  • “You’ve given up on your life. On finances.” ([16:17])

• Accountability and Solutions

  • Emphasizes personal responsibility, the need to assert her own goals vs. parental expectations, and practical steps: finding higher-paying work or a second job (at least $3,000/mo.), selling the car and covering the loan via a personal loan, and using the "debt snowball" method to pay down balances ([24:48]–[25:24], [47:58]–[51:02]).

• Law School Strategy

  • Advises waiting at least two years, building an emergency fund and paying off bad debt before taking on additional student loans ([36:44]–[41:27]).

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Notable Quotes & Memorable Moments

• On Overspending at Work
  Caleb: “If H E B pays you, why are you giving them money when you can’t afford to simply live?” ([00:51])
• On Family Pressure
  Caleb: “I don’t give a *** about his opinion. This is your life, not his life... Do something for you.” ([07:20])
• On Denial
  Elise: “Truthfully, if I’m being honest… I cared about impressing my classmates and boys.” ([18:56])
• On Avoidance
  Elise: “I kind of avoid the statements.” ([10:00])
• On Hitting Financial Bottom
  Caleb: “You’re overdrafting. You’re not making your payments. It’s terrifying and you don’t make enough to survive.” ([56:55])
• On Change and Hope
  Caleb: “Take one of the worst finances I’ve ever seen, if not the worst, and turn it into the best finances I’ve ever seen. You have that ability.” ([57:04])

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Timestamps for Key Segments

• 00:13–02:21: Elise explains compulsive spending at work, Caleb demands self-reflection.
• 04:09–05:52: Monthly income overview, aspirations for law school, family pressure.
• 08:45–15:49: Detailed review of credit card debts, interest, and missed payments.
• 20:52–23:08: Story of purchasing an unaffordable car, discussion of options for getting out of the loan.
• 26:01–27:12: AT&T device debts, questionable need for Apple Watch/iPad.
• 30:31–34:18: Documented overdrafts, multiple checking accounts to ‘juggle’ payments.
• 34:39–36:44: Spending breakdown—up to 35% “bullshit” (Caleb), less than 20% on debt service.
• 41:27–43:23: Calculating a survival budget; conclusion that all subscriptions/extras must be cut.
• 47:58–51:02: The fix: doubling income, selling car, using debt snowball, delay law school.
• 56:39–57:32: The closing pep talk: “This is one of the scariest financial situations I’ve ever seen… But on the other side... you’re living an incredible life.”

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Actionable Takeaways

• Immediate Steps for Elise:
  • Seek another (or second) job to increase monthly income.
  • Sell expensive car even if underwater; replace with a cheaper vehicle via personal loan.
  • Strict zero-based budgeting; halt all non-essential spending.
  • Use the debt snowball method for payoff (smallest balance first for momentum).
  • Delay law school until debt is cleared and emergency fund is built.
  • Have honest conversations with parents about true financial needs and goals.

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Final Thoughts

This episode pulls no punches, spotlighting just how quickly “normal” spending and student finances can spiral into a crisis. Caleb’s tough love, paired with an actionable recovery plan, offers a blueprint not just for Elise, but anyone struggling under debt and denial. Elise’s candor and willingness to work for a turnaround provide a spark of hope amid the financial wreckage.

Financial Score: 0/10
“Best of luck. Keep us updated and let us help you along the way.” ([57:32])

Transcript

[A]

I'm Elise. I'm based out of Houston, Texas. I'm 24. And this is financial audit.

[B]

What do you do in Houston for a living?

[A]

I'm a cashier at H.E.B.

[B]

Oh, this explains. Okay, so I was. Y'. All. Yeah.

[A]

All those H E B purchases. Those are my taquitos.

[B]

Yeah, your taquitos. Dude, you're going crazy. And I wouldn't.

[A]

You got me.

[B]

So if we're cashiering at H.E.B. what are we making an hour?

[A]

1740.

[B]

If we're making 1740. How many hours a week?

[A]

About 25 to 30.

[B]

Okay, so 25 and 30.

[A]

But here's the thing. My. I'm studying for the LSAT to go to law school, so that takes up a lot of time as well.

[B]

Okay, so that takes up time. I'm okay with you working a little less hours if we're studying for that, to get into a law school to do the career we want to do. But if we're doing that, why are you going crazy with your spending?

[A]

That's a question I don't really have an answer to.

[B]

Oh, you gotta have an answer to that. If H E B pays you, why are you giving them money when you can't afford to simply live?

[A]

I guess it's convenient since I'm already there and I'm like, well, I'm gonna be here anyway. So it doesn't kill to buy a bottle of water or whatever.

[B]

Bottle of water?

[A]

Well, not allowed.

[B]

Are you not allowed to have an actual water bottle?

[A]

Yeah, we are. I have one, but I go through it quickly.

[B]

So you refill it. I've been to many hebs. I know there's an employee section. I've walked by water fountains personally on the way to the bathroom. Is that less convenient than going. Grabbing a water bottle, checking it out, bringing out the cards, swiping?

[A]

Not really. It's not. How do I say it? It's not less convenient. No, I understand your point.

[B]

Then why are we not doing it? Don't.

[A]

Really.

[B]

Oh, come on. Why are you making the active choice to do it? I know I'm digging into you right off the bat.

[A]

Mm.

[B]

But that's only because you just said you work there. I was. I was going to ask about all those purchases, but the moment I heard you work at HEB and we're like, we're going and spending multiple, multiple, endless. Just swipe, swipe, swipe, swipe, swipe. Every second of our life. It's like, what the are we doing? They're supposed to be giving you money to save up so you can survive. Yes. But then you give them money right back.

[A]

Yeah, you're right. I understand what you're saying.

[B]

But you won't tell me why, though. I mean, I need your why.

[A]

I mean, I can't really come up with a why other than I'm just planned poorly.

[B]

Yeah.

[A]

Okay.

[B]

Is it laziness?

[A]

Yeah.

[B]

Okay. So laziness would be the why have we never set. You're going. So every month we're going through, we're missing payments on debts. We're not having enough money in our checking account to survive. How is laziness an option in that situation?

[A]

If I'm being honest, I still live with my dad. I graduated college in May, and I moved in back home, but I live with my dad, so I haven't really. How do I say? It had to be responsible, if that makes sense.

[B]

Don't you have to be, though? You're missing payments on your credit cards.

[A]

I do. I do have to be responsible.

[B]

I was gonna say, where's the. You don't have to be responsible. So, sure, okay. If we're not being responsible and we're just like, okay, we're just spending money because we don't have to pay rent. Like that's a thing. But right now you're missing payments, Right. On a contract that you signed for multiple cards, and you're not having enough in checking account.

[A]

Correct.

[B]

So since May, right? Is that what you said?

[A]

I graduated in May?

[B]

Yes. Okay. So since May, why have we not sat down once? And then like, okay, here's what's going out on a monthly basis.

[A]

I've recently done that, like I said, over the last month when I found your channel, and I'm like, oh, my God, like, I'm spending money poorly.

[B]

And since then, I sat down and.

[A]

Like, I budget and, like, I have my iPad, so I went through and seen everything that I have, all the debt I have, what I'm spending, stuff like that.

[B]

So we had $1,348 come in.

[A]

Yeah, that sounds about right.

[B]

If you weren't living with your dad, that's not livable at all.

[A]

No.

[B]

Now you're trying to go to law school. Any specific or does it matter?

[A]

Not. Yes. Is it specific? I want to go to a good law school, but, yeah, that's debatable on what's good, so.

[B]

And also, how much does that matter in the world of law?

[A]

It matters a lot. It's not like going to undergrad and, you know, getting a degree from anywhere. It doesn't matter. Getting a degree from anywhere in undergrad is fine for the admissions process, but where you go to law school gives you access, opportunity, prestige, stuff like that.

[B]

Okay, so if we go to a good law school, probably going to, like, a private law school, I'm assuming.

[A]

Not necessarily like.

[B]

So a good public one, like UT is one.

[A]

UT is one here in Austin. That's one. Another one is the University of Michigan. That's a public one.

[B]

And that's out of state very far.

[A]

Yes, yes, Virginia. That's another one out of state.

[B]

So this all of a sudden becomes very expensive if we're getting overdrafted. Multiple checking accounts that are not even able to pay our credit cards. How in the possible are we paying for law school?

[A]

Basically loans. That's what my parents want me to do. And if I do it well enough on the L side, I'll get scholarship.

[B]

You're probably parents. Why do we care what they want you to do? I mean, your life is your life.

[A]

That's true. But living with my dad, like, a part of his agreement is I have to go to law school or basically I have to move out, and he wants me to stay in Houston, but I don't really want to stay in Houston unless I have to. But that's his big thing. He went to college and he got several degrees, and he's like, your future is much better for him. That's what I told him.

[B]

And, like, recently, again, I don't give a about him. This is your life.

[A]

I told my mom I want to work for a couple of years so I can pay off all these debts and then go to law school when I'm ready. And she was like, that's not smart. You need to go as soon as you can. I'm like, are they wealthy? No, we're very much suburban and middle class.

[B]

Okay, so they sound like, yeah, the people we should be listening to.

[A]

No, they're not.

[B]

Exactly. So why do you care? I mean, I get why you care, but why are you listening?

[A]

Because I don't want to live on my own because I can't afford it.

[B]

Well, you said if you worked for a couple years to pay off the debt, I could get you to the point. Where would you. Would you graduate with an undergrad?

[A]

Political science.

[B]

I mean, we could get you a job in a sector that has high demand. Still, is it the dream job? Probably not, but only for a couple of years. You could have an apartment on your own in the Houston area or wherever, and we could start paying off These debts and we could have enough money in our checking account. I'm sorry, but I want you to go to law school. That's fantastic. And even, even if you borrow a little, I mean, depending on how we're doing some things, there can be good return on investments. That's a nuanced conversation, but with the money habits that we are about to go into, with where you're at right now, I'm going to be in your operating. You just taking on an endless stream of student loans to go to law school means you are just dying in debt.

[A]

And that's something else. My dad, like I said, went to school, got all three of these degrees. He's still $100,000 in student loan debt 20 years later.

[B]

Again, he's clearly, he doesn't.

[A]

But he's saying, that's okay for me to do. And I'm like, he's an addict of school.

[B]

He's an addict of school. He's just one of the class. I love college. College is a great path and there's smart ways to go about it. There's stupid ways to go about it. But there's some people that only assume that going to college, getting the degree is what equals success. And having that degree, having that piece of paper is what they clamor to for the rest of their life. I don't give a. The success you make on your own, showing what you build in your life, not just a piece of paper that comes from your past, is actually what determines your success. So I don't give a about his opinion. I don't give a about what he says. This is your life, your life, not his life. We're not doing something to make someone else proud. We're doing something for you. And again, if you want to go to law school, that's awesome, let's absolutely do it. But with what we're about to go through here, now, you just continuing down the path of just taking out any debt possible is going to lead to a situation where I'm a little nervous.

[A]

Yeah, I agree.

[B]

What's your score? 0 to 10. Oh, it's financial score.

[A]

It's a straight up zero. The only caveat is I have a small, small, small, small contribution to a 401k.

[B]

How much?

[A]

Literally like 300. I just started this year.

[B]

Small indeed. Okay, well, why are we even contributing? It doesn't make sense.

[A]

There's a match.

[B]

Okay, so we owe on a capital one card. Get into this cast. This is about to just be crazy. Okay, so we owe $540.51, with a minimum monthly payment of $25 and interest accrued of $13.04 off the bat. I do have to ask, out of curiosity, just a little curiosity, by the possible, are we spending money on a card that we're not able to pay off, that is accruing that I've asked a thousand people, and yet somehow it still comes here and ends up on this desk?

[A]

Well, when I was in college, I took that card out. My logic was, well, I'm getting my student loan refunds and I'm getting all my scholarship and grant money. I can just pay it off. But no, that did not happen. And here it is six months later.

[B]

That did not answer the question. This is something you just did. Why are you spending $227.97 on a card that you cannot pay off that is accruing interest?

[A]

Oh, wow. I didn't even know it was that much.

[B]

Okay, so, okay, you have not sat down once and looked at your money in any way whatsoever, have you?

[A]

No.

[B]

No. You're spending.

[A]

Not really. No. I kind of avoid the statements.

[B]

I get that. I mean, when we know we're in a bad place, it can be anxiety inducing to get over that hump to actually take the look. So let me take that look for you.

[A]

Okay?

[B]

Taquitos, Wingstop, Starbucks, Taquitos, Chipotle, Taco Bell. Taquitos, Chick fil a. Taquitos, Taquitos, Taquitos, Taquitos, Taquitos, Chick fil a, Starbucks, Taquitos, Chick fil a potential taquitos at Bucky's. Because you never know. Buc ee's can be expensive. Taquitos. Or it can just be we're getting gas. I'm not 100% sure. Then taquitos and some taquitos. I'm sorry, but also not because this was you doing it right. But this. This right there, guys. That right there. That right there. You already have a car.

[A]

Oh, that's gas. Oh, the Bucky's one. I see.

[B]

Bucky's one. Okay. I didn't highlight it, though. But the highlighted stuff right here is bull. It's around. It's things we don't need to be spending on. There's 1, 2, 3, 4. Four out of the 20, 25. People always ask me, what High Yield Savings Account do I use for my own money. Some of you know by now, it's Sofi. I love them. It's great for my checking account needs. It's great for my High Yield Savings Account needs. And right Now I'm getting 4.5% interest on my moneys. I love that rate on my monies. So if you want to get a great rate like that on your monies, just check out the link in the description below. I have a paid affiliate link there. You can get bonuses all the way up to $250. And I took advantage of that. And you should do 4 out of the 25 are purchases I could consider. Okay. Whether it be groceries or gas. And that's what the other ones would be. Everything else was around. We're doing that on a car that we can't pay off. And that is having interest accrued on it.

[A]

Yeah, you're right. I mean I can't. I'm not gonna sit here and bullshit their face or the audience is either. You're right. I'm spending money that I don't have.

[B]

Why is it all going to like few spending though? Like stupid eating out and stuff like that? Why is that where your money's going right now, every day of your life?

[A]

I don't really have an answer. It's easy just to swipe or tap my card and keep it moving. And like I said, most of those are just poor planning.

[B]

So I think that comes to the laziness aspect and then maybe just lack of discipline as well. Around that 30.49% is the interest rate on this that you're choosing to have. Because you're just. Whatever you pay on it, you're immediately just blowing up again. $81 of interest has been stolen from the EU this year so far. And $25 of fees, likely a missed payment. Not this statement. Balance or not this statement. Did you miss a payment? But probably historically. And why do I think that because here synchrony immediately. I mean, come on, why are we, why are we not making. How are you missing a payment? How are we going and spending $225 on just, just Chick Fil A Taquitos death? Why are we doing that? But we're just not simply making a minimum monthly payment on a card. You have chosen taquitos. You have chosen Chick Fil A over actually dealing with the bills that you have signed up to pay. Do you not care?

[A]

I do care.

[B]

This is not demonstrated.

[A]

I do care. Before, like I said before, I really combed through my finances. I was like, well it. Well, I'll be honest, I guess I didn't care. But now over the last few months, I'm like, where is all this money like going?

[B]

And so if you didn't care before. I'm curious, like, what has made you.

[A]

Graduating college and realizing, oh, can't survive on my own and my parents aren't going to help me forever.

[B]

So it's the fear surrounding that.

[A]

Yeah. And another fear is I want to set myself up now in my mid-20s so I can be in a safer place the rest of my life.

[B]

So, yeah, that makes sense now. Okay. You started wanting to change after graduation. This was your most recent statement, though. So this just happened. We were just like, nah.

[A]

But also during the summer, like, I was trying to transfer stores, so that was taking a bit of time. And my store was, like, an hour away from my house, so I was spending every last dime on, like, gas. Like, every day. I was, like, filling up.

[B]

I can sympathize with that. If we didn't just look at the statement through the same exact time of you just around and spending money on 250 bucks, which you had a minimum monthly payment of $40.

[A]

Mm.

[B]

You could have paid that.

[A]

I could have. I chose to ignore it.

[B]

There it is. We have a new minimum monthly payment due because of the past due and everything of $117. So normal min. Monthly payment of 40, which is what I'm going to put down. We have a. We owe $1,280 on it and 56 cents now. $23 of interest is accrued on at death. And $40. $40 of fees. $40 of fees. Because you just didn't pay it. And if you only make the minimum payments, if you're not, by the way, you're not even doing that. But if you only do, it's going to take seven years to pay off, and it's going to charge you an additional,250. Thousand two hundred and fifty dollars stolen from you. But it's even worse than that because you're not doing it. Total interest this year so far, $284.50, $300 in just interest.

[A]

Like I said, I avoid the statement, so I did.

[B]

We're not avoiding anymore. We're a big girl, and we're going to, like, take care of our life.

[A]

Mm.

[B]

Because your life matters. Your life actually matters. But in order to actually take control of your life, we have to address some of the issues, which is why you're here. So. And the total fees. 180 bucks. And if it's $40 per assessed fee. I mean, come on, $189. You've missed, like, almost every payment this year so far.

[A]

Yeah.

[B]

You're just like, it's just like we've given up. We've just given up on our life. On finances.

[A]

Yes and no. During. I really didn't work very much over the last. From like January to March.

[B]

Why?

[A]

My grandfather passed away and that was hard. And I was trying to finish college at the same time, and that was hard.

[B]

That is very difficult.

[A]

So I didn't work from. Yeah, like I said, from January to mid March.

[B]

Did you try to contact these. Now, I don't know if they would have, but sometimes some credit. Credit. Some banks can have some sympathy if you like, say, if you explain what's going on and you at least try.

[A]

No.

[B]

So you just let everything just fall.

[A]

Yeah, you could say that.

[B]

Credit scores in the 500s. High 500s now it's.

[A]

It's 640 now.

[B]

Okay, so we have a Discover it card with $697.84 owed on it. $93 of payments. Good. So you made payment and that was more than the minimum monthly. So that's also confusing because you should have just paid the last one. This is just unorganized and just messing around. $17 of interest accrued. No purchases on this, which, thank goodness. And it's a 27.24% interest. You've lost $137 of interest on this card so far in fees, likely from a missed payment of $30 this year so far. TDECU Credit Union. We owe $2,558.25. Kill me now. I mean, on your income. That's as. We can't do that then if we're going into law school with all this. This is. It just doesn't make sense.

[A]

All of these credit cards I took out while I was in college because I thought, oh, I'm going to pay them off when I get my refunds. But nope, I treated them as debit cards and spent all of that money. So that's.

[B]

And the refunds anyway is still money.

[A]

You owe some of it.

[B]

Well, I got some of the rest from like Pell Grants.

[A]

Yeah, I got. I got Pell Grants in there. Like Covet Grants. And I had a few scholarships, so truthfully, I could have paid for it, but nope, I took out loans.

[B]

Yes, we'll get there. 25 of late fees. Another account with late fees. This just demonstrates that. I'm sorry, we just, again, we just don't give a. You said you started giving a. The graduation, but this just happened.

[A]

Yeah.

[B]

You have not demonstrated that you care at all. 29 of interest stolen from you $30 essentially. And $25 of fees.

[A]

Truthfully, if I'm being honest, while I was, like I said, I was in college, when I took most of these out, I didn't really care about the fees and stuff. I cared about impressing my classmates and boys.

[B]

I was in college. And you took this out. This just happened in terms of you not paying. Like, I am not gonna bully you for something you did in college taking out the cards. I am going to bully you for what you're doing right now as a wake up call. Because if anyone needs a wake up call that I've talked to recently, I'm sorry, it's you. That's because I care about you. And do not let me for a single second care about your situation more than you do. Because your future matters.

[A]

It does. A lot.

[B]

13.99% interest on this. I mean it's still disgusting, but compared to normal credit card rates, it's not the worst. But your balance is of course aggressively $125 of fees. So that means you've miss five payments this year so far on here based on their fees that we just saw five payments. Five. So for more than half the months of this year so far.

[A]

Caleb, I just told you I didn't work five of these months this year. So.

[B]

Yes, but this you are working the month that we just looked at. I'm sorry, let's not try to justify $264 of interest charged this year. So we've had well over $1,000 of interest dragged from your life in existence.

[A]

I'm not ready. When I heard no.

[B]

Yes. This one get on my about this one sanity.

[A]

I got this car last May when the car market was high. I walked into the dealership all by myself because my car, the one that I had, broke down basically. So I was like, I can use to sell this and use the down payment. I basically just let the. The car salesman just run my credit. And I was like, whichever one I get approved for, just do it. But I got approved for several.

[B]

But I was just want to get approved for just do it.

[A]

Yeah. And now here I am with that high interest rate.

[B]

I didn't capture the minimum monthly payment for the TCU.

[A]

I think it's like 51.

[B]

Oh, you're. Oh, oh my gosh. On the TCU, you're over the credit card limit of $58. I didn't even see that $87. So you walked. Why didn't you like try to go with someone?

[A]

I was trying to hide it from my Parents.

[B]

Oh, it sounds like he. Your dad's addicted to debt anyway, so I don't care.

[A]

Yeah, this is true.

[B]

He injects that it was vein student loans all day and now it's been.

[A]

Passed down to me. But I've got to take responsibility.

[B]

Absolutely. Late charge.

[A]

That car not as high as. Can't afford it.

[B]

You're right, you can't afford it. You shouldn't have gotten it. Why have you not sold it?

[A]

Here's the thing. I'm gonna be underwater with the loan. I've looked up the value with the car. I'm gonna be underwater like 8, $9,000.

[B]

There's methods to do it.

[A]

No safe.

[B]

We'll take a look.

[A]

With no savings.

[B]

So I know there's methods to do it. I. The interest rate I could not find on the statement. What's the interest rate of this? Oh, please.

[A]

17.17 23.

[B]

$812 zone on it. Late fees because they're just not even making the payments. Even though you have no rent. And I'm sorry, I know you're studying a lot, but when we're trying to. When we're trying to pay off debt, if we're actively trying and we're trying to make it in life and hit these goals, you work. We work 40 hours a week and then we study an additional 40 hours a week. It's just not an option. You have no other life but just grinding because you've. You've around for so long that now you have to pay for that. And that sucks. I'm sorry. But that is the reality of the situation.

[A]

It is. And now I'm realizing I have to take accountability for my actions and work to fix them. And I. Yeah.

[B]

What's the term on this? Do you know how many months it was?

[A]

72 then. Yeah. Six years. Yeah. It's till September 2028.

[B]

It's a 2020. 2020 Toyota Corolla. Any damage? Anything? Anything?

[A]

Not really, no.

[B]

Let's check the value.

[A]

It's about 15, 16,000.

[B]

Well, you tried to hide it from your parents, but now this is in his driveway every day. What does he think?

[A]

The same as you. He was like, why didn't you tell me? I was like, what? So I was a bit confused.

[B]

I'm seeing it go about 17,000 depending.

[A]

On where you look. Yeah, yeah.

[B]

On private sale.

[A]

I didn't even think about that. I looked at the one for a dealership.

[B]

That's its KBB value and kbb. These last few years have actually undervalued things, I don't know if they are anymore. But it also depends on, of course, the actual version of the car. But so what we would do in this situation usually is, okay, so you'd be underwater $5,000, which is about what we do instead of you having to pay $23,000 on the 17% because this would be such a big change for you. 10,000 hours is a lot. We could save you $10,000 by you borrowing $15,000 personal loan. 5 of that 15 goes to fully paying this off the sales price. And the five, the $10,000. This will be like a personal loan. You'd be able to qualify at your credit score. The interest rate is going to be death, but you're already at death. You get a $10,000 car. That's the finessing that would have to be done when underwater. And compared to a lot of other people that bought it in a high car market, you're actually not underwater drastically. Okay, this is, this is bad. And you can't afford this at all. It's as simple as that. Not on this income. Elise, I think you could be making more money. I think you could utilize your degree.

[A]

Honestly, I'm a bit complacent comfortable doing this job for like five years.

[B]

So I'm sorry, but it's easy to do. We're not comfortable anymore. It just can't be a thing that only you can change that. I can't do that for you. I can help create a budget and all this stuff, but only you can change your comfort level and what you want to do to actually attack this.

[A]

And I realize I'm not comfortable anymore after just going through my stuff and it's like I've been looking for jobs that are salary paying jobs and whatnot. I just honestly don't know where to look. Like I've been googling like stuff, but I don't know where to look.

[B]

Honestly. The title of this video might be this is the worst financial situation I've ever seen. Because this might be the worst financial situation I've ever seen. It's very. There's a few up there that are tied. It's, it's. And I'm sorry, I'm sorry that you're dealing with this, I really am. But please allow this to be the wake up call. And I need you to. I need you to give a. So this at and t. What even is this? What is all this that's owed?

[A]

It's a phone, an iPad and Apple watch.

[B]

You're not even wearing it.

[A]

I left in my car, but. Yeah, you're right.

[B]

Past due. $506. Have you.

[A]

What?

[B]

When's the last time you made a payment on this thing?

[A]

A couple weeks ago. I'm caught up now.

[B]

You're caught up now? So this is done?

[A]

No, no, no, no.

[B]

It's not done. But this is like the past dues are all done on this.

[A]

Yes.

[B]

What is owed on a normal monthly basis with this?

[A]

About 2:30.

[B]

2:30.

[A]

That was behind.

[B]

Like, what's Odin total?

[A]

Nothing is owed on the phone because I got trade in value. About 286 is owed on the watch. And like 900 is iPad.

[B]

No, you don't need an iPad.

[A]

I was in school when I got it.

[B]

I don't. It's not as good as a laptop anyway. It's like 1150ish.

[A]

Yeah, could say that.

[B]

What's the interest rate? Is there an interest rate?

[A]

1.

[B]

No, 0%. But you're yourself with the late payments anyway. Do you own anything on this new phone?

[A]

No.

[B]

How?

[A]

I got a trade in. I got a trade in value.

[B]

And it fully covered?

[A]

Yes.

[B]

Okay. Yeah. You killed yourself on this one. This is not something you needed to do. We did not need a watch. I love my Apple Watch.

[A]

I didn't.

[B]

I budgeted it.

[A]

Yeah, I didn't. You didn't.

[B]

I would. I might just honestly try to sell the Apple Watch.

[A]

I tried to return it. They didn't.

[B]

Well, return my. Yeah, it's probably not an option. I think we try to sell it.

[A]

How?

[B]

Facebook Marketplace, Something like that.

[A]

Okay.

[B]

Because it doesn't matter if you can. You said you owe like 250. What's the apple Watch? What is it?

[A]

Oh, I'm not sure.

[B]

Se series 8 7.

[A]

I'm not sure. I'm really not. I just said I wanted an Apple Watch and the cheapest one, and they got it.

[B]

Okay, well, if we can say anything we want and it just happens, and I'm gonna say, please, please save us all from the chaos of this financial situation and hit subscribe. It'll make me feel better. Hopefully it'll make you feel better, but it'll make me feel better. We're trying to get to like a million subscribers. I can't believe I'm even saying that. Maybe 750,000. I. I don't know if we're there at the time of this, but thank you to everyone who has subscribed so far. And I'm sorry you're going through this. Oh, but you always got to call out the subscribe button. So we have a freedom card.

[A]

Mm, yes.

[B]

So much freedom owing $1,233. So much freedom and 10 cents with a minimum payment of 45,000. These minimum payments are just ruining your existence. $33 of interest loss on a monthly basis. No purchase is good. $29 of fees this year so far. So we've missed payments. And $201 of interest charged this year so far. Thousands of dollars in the drain this year of interest charged so far and you've barely even made that much. Then we have student loans of which if you set up the minimum, the, the payment. Are you on. Are you on traditional income? What are you.

[A]

I'm on a grace period right now because I graduated. I graduated. So it's until November. But then after that I got another grace period already till next May. And then after that, what's the other grace period for? You just get another one if you request it after you graduate.

[B]

Okay. So minimum payments are not going to start like everyone else.

[A]

Correct.

[B]

And honestly, I mean, we've talked about income based repayment here. I mean, and then you go. If you go to law school, I'm.

[A]

Gonna defer them again.

[B]

But income base, like I would almost do it for your situation simply because you cannot afford it.

[A]

Correct.

[B]

But income based is a little difficult because a lot of interest accrues during it and it really seems like they're forgiven per administration. And I don't want you to be.

[A]

They are that. Yeah. There. It just depends on, you know, I know this. It just depends on who's in office at the time and who's running the Department of Education and. Yeah, exactly.

[B]

And I don't want you to be in a situation when yours come up for forgiveness. That is to someone that's like, no, we're not doing that.

[A]

And they're very select who they approve for forgiveness.

[B]

So there's just not a really good history of it. It's gotten a lot better recently, but there's really not a good history of it.

[A]

Right.

[B]

Interest rates, they're not terrible. 4 or 5%. Yeah.

[A]

They're not crazy.

[B]

We ended with $5 in a TDECU checking account. We ended with $5. We can't survive with $5. If we're ending with $5. Why are we possibly taquitoing? Why are we possibly ta. Ketoing? Why are we possibly taquitoing and taquitoing and quick quack. Probably taquito eating honestly based on all this stuff.

[A]

Car wash.

[B]

Car wash. Yeah. It's a wash. Why are we washing if we have $5 in a checking account? We're not washing our car. I don't give a shit if your car has this car that you can't even afford. You can't even afford this car. Why are we washing the car that you can't afford. Washing the car. You washing the car. We can't afford it.

[A]

It's right. It can't be dirty.

[B]

Yes, it can be. Who gives a what it looks like you're in it. You can't even see see it. Who are you trying to impress that you're pulling up to on a neck, you know, at a stop light? Who are you trying to impress? Who gives this. If they look at your car, they will not remember it five minutes later. Unless you have like a crazy painting on there or some weird, you know. Yeah, they won't remember. So who cares? Who cares? Who are you doing this for? Yourself. Once you're in your car, you don't see it anyway.

[A]

You're not wrong.

[B]

I'm not wrong. Probably taquitos. ATM withdrawal of $280. Was that $280 going? We have no idea. Chick fil A. More ATM withdraw. 280. Where's it going? No one knows. Taquitos cruising. Insufficient funds. Insufficient funds. So you got overdraft. Did you at least try to call them get it?

[A]

I did and I did.

[B]

It was reversed on that one.

[A]

Yeah, it's kind of easy with a credit union. Yeah. Oh.

[B]

Total overdraft years. Fees here. So far, $352. Oh, I'm struggling here. I'm struggling.

[A]

Me too.

[B]

For sure. It's like I shouldn't be struggling more than you, though. 398 hours and another chicken account. I'm glad it's at least there. I want it to be at least a thousand because you never know. It's gonna hit with automatic payments. But even still, I'm happy it's at least there. What I'm obviously not happy with is taquitos and taking toll roads. We're not taking toll roads when we can't even afford to live. You're affirming things. You're affirming things.

[A]

I did ketos.

[B]

And Paramount. Paramount.

[A]

That was automatic payment. I didn't even know it was there until it came out and I canceled.

[B]

We're getting pho. I love pho. But why are we getting pho when you can't even survive? And taquitos and Dairy Queen. And taquitos. And taquitos. And taquitos and chick fil A and chicken. Express checking account. Negative. 11.69. Negative.

[A]

Okay, I'll explain. So I have a few checking accounts so I can move money around. None, really.

[B]

Okay, so why?

[A]

So I could, like, try to pay bills and if I overdraft. Some banks are more forgiving than others.

[B]

But you're overdrafting everywhere anyway. You're not making the bills paid. There's no logic. There's no logic. We had to get another car wash. We had to get another car wash. We had to get another car wash. Apparently Spotify. We can listen to ads while we can't afford to live. And an apple bill. Oh, double Spotify. Good. Why double Spotify? You know, it lines up. It lines up. They just. They paid you. Instead of like 28 days, it was like 27 days.

[A]

Okay.

[B]

Total overdraft fees this year so far. $112, $102. We're not even making the payments. Or we have a negative money in our checking account. Okay, sorry. I know I'm digging into you like crazy, but this is. This is a lot for me to take in. This is hard. This is rough.

[A]

It is.

[B]

Transportation. Because your car. Because gas, because of car insurance. It's 33 of yourself.

[A]

I don't pay car insurance. My dad does.

[B]

You're right. It's your loan. That's pretty much what takes it up. And then a little bit in tolls and a little bit of gas transportation. 33.5 of your spending. Phone and Internet. Just those extra. Yeah, it's the iPad. And $227. 11.4% of your spending. Bull food. And honestly, this is going to be higher because I think they contributed a lot of the necessary food as your little H E B purchases. They're not. So I think your bull food, your taquitos and all that stuff, add it all together, it's going to be about 25% of your spending. 25% of your spending is stupid. Because only 18% of your spending is. Oh, sorry. No, let's call it about 30%. Because there's miscellaneous bull. Unknown shopping. 12.4%. Let's see where that went. Unknown shopping Target. We don't know. Or some other large purchases. We don't know. So we can safely say 30 to 35% of your spending went to bull. Bull. Bull. When only 18.2% went to debt payments. Meaning we could have more than doubled. Doubled what? Was actually going to debt. This is an active choice we are making. We are actively choosing to Surround instead of actually get our life in order. I would not for a single second go to law school yet.

[A]

I'm not ready to. Not just financially, but also I'm not ready to do all that work yet when I could do work at a job and pay off.

[B]

Yeah, I was gonna say because no matter what, you're going to be working your. I'm sorry, but that's the prescription that's about to come. It's. It's not an option. I don't. I want you to live the best life ever. I want you to live such a good life. Going down this path that you're going right now is seriously dying in.

[A]

I'm going to die on the heb floor.

[B]

Yes. Yeah. God forbid anything like happens where you just can't work. What are you even doing then? Disability is not going to cover.

[A]

Anything.

[B]

This is hard. But, yes, I would delay law school for a couple years again. I want you to go. I want you to save up. I want you to pay off debt. Go in with an emergency fund, even if we're borrowing some for school. That can have a good return on investment if you do it in a smart way. Again, I would prefer something in state, something public. University of Texas. I wouldn't go private. Even University of Michigan. I know they're a good school. I'm from the state of Michigan.

[A]

Are you?

[B]

Yeah, I'm from Kalamazoo, so the west side. But. But even still, the amount, the return on investment you're going to get on that versus going to University of Texas is going to be essentially nothing. Nothing. It's going to be nothing. Come on, let's be realistic.

[A]

It depends on where you live. It depends on what I want to do after.

[B]

But you're not going to live in Ann Arbor. There's nothing there.

[A]

Okay, but if I didn't get a degree in Ann Arbor, I could go work in a state like California. Whereas if I got a degree here in Texas, it's not as transferable. If that makes.

[B]

I think you're overthinking that really aggressively. The only. Yeah, I agree. If you go to, like, University of Samoa, like Better Call Saul did, or whatever his thing was. Yes. That's not going to hold the same weight as University of Texas, University of Michigan, and obviously something like Harvard is going to hold more weight than University of Michigan, University of Texas, University of Texas, University of Michigan. I can't speak on their. First of all, the school ranking things. They're all. Anyway, because a lot of it depends.

[A]

On affirmative action and stuff.

[B]

No, not just that, but a lot of their rankings isn't even based on the success of graduates. It's like based on how many foreign exchange students are going there. And a lot of stuff like that. It's. It doesn't really make sense. But even on their school rankings. Can't speak for the law school, but the schools are pretty darn close overall when it comes to compares to every university. So you are overthinking. I'm not saying go to some school in the middle of nowhere that no one's ever heard of, but if we're picking between our future and return on investment, I am picking the University of Texas any day and every day.

[A]

And you probably will after I say this. The tuition at University of Texas is about 35. Tuition. Tuition at Michigan, even though it's a public school, for out of, for in state students, it's like 70. For out of state students it's only like 75. So it's double what it would be here.

[B]

And it's that you're not going to have the return on investment. You're not the only thing you might miss on some alumni networks. But University of Texas, anyway, they have the largest endowment of any college in the country. Public, I think they have.

[A]

It might be A and M, but.

[B]

No, it's the University of Texas. It is the University of Texas.

[A]

It doesn't matter.

[B]

No, it kind of does to what I'm about to say. If you're chasing the alumni network type thing, reason why someone has such a big endowment is because the network is huge. There's a lot of rich mother who are given money. You're gonna be surrounded by a good alumni network all over the country.

[A]

And this is gonna sound stupid as well, but I also want to go to a bigger school because in undergrad I really didn't get the college experience. So I kind of want to get that in law school. That makes sense.

[B]

It kind of does to a certain point.

[A]

Like, I went to a really small.

[B]

School, but I think for the people, and this is unfortunately a lot of Americans. For a lot of Americans, the best moment in their life is their four year in college. And that's incredibly sad. Sad and depressing because it means the best years of their life is behind them forever. Instead of them actually going out and living an amazing life, they just fall into the normal everyday traps of life and then they just look back to their walkable years on a college campus when they actually had friends instead of living life. You can get a better life if you choose to and actually go and meet objectives that you want to do that aren't tied to just going to college. Yes, it's fun. It's fun. I had fun. Most people. Most people I know, but most people.

[A]

Covid kind of ruin it.

[B]

But again, we can have fun anyway. But I promise it's really just sad and depressing. If someone's best life and everything they cling on to in their life is a college identity because of something they experienced a few years ago, a few decades ago, whatever. That's sad and depressing. You're more than that. Life should be more than that. Come on, we're not just going and spending. First of all, University of Texas is a massive school anyway. So it is like go there versus something out of state, inexpensive. I'm sure there's gonna be a lot of people that disagree with a lot of what I said. That was more opinion based stuff anyway. Because you can't factually say that it's depressing. But you know, someone just clings out of college and that's their entire life. But that's just my opinion and it is depressing. What are we gonna do about you though? What are we gonna do?

[A]

I need a higher paying job.

[B]

You need a higher paying job or you need to work double the hours.

[A]

They will only let you work up to 35.

[B]

So then we go get a second job.

[A]

Yeah.

[B]

Rent. You pay nothing?

[A]

No.

[B]

You pay anything for utilities. And so you're living there completely for free? You don't contribute to anything?

[A]

No.

[B]

Okay, perfect. Good. Because really don't have the room.

[A]

But like I said, if I don't go with my dad's plan, he's probably gonna kick me out.

[B]

Is he really that much of an.

[A]

He is really a stickler with that education. Yeah, yeah.

[B]

He's an addict. He needs to stop. I swear there is more to this life than a grand piece of paper on a wall. My goodness. People are sad.

[A]

Granted, this is a man that has a doctorate in education, so.

[B]

Well then. So he really is an addict.

[A]

Yeah.

[B]

$1028 is your minimum monthly payments. Minimum monthly payments just on your debt. But you bring in a thousand 348 hours.

[A]

Yeah.

[B]

So there's really nothing. Gas did 90. I'm not putting tolls in your budget because you. We're not taking toll roads. How do you. How do you. How do you. How do groceries and everything? Work the house? Do you eat what's there? Are you able to put stuff on the list and they buy it? Okay. So I can put Zero dollars. Okay. And you're no longer gonna eat out ever. Yeah, that's just not an option in your situation. I'd love to get a little bit of wiggle room, but I can't. Your Apple Bills Spotify Peacock again. I'd love to get a little. A little wiggle room. You simply don't have wiggle room. You're canceling all subscriptions. It doesn't make sense. I'm sorry that I have to be so strict on it. It just really doesn't make sense. Affirms. How many. How many are the affirms done or do they continue to.

[A]

Oh, like $300 on them.

[B]

So that adds an extra $42 a month you onto your debt. So. Oh, man. Okay, so 300 for a firm. It's good ways to do it. There's bad ways to do it. You did it the bad way. Okay. Any other minimum monthly expenses you need to survive? Do you like? Okay. Because I know we're just in the society we live in. Just I want you to feel comfortable. I want you to feel happy and stuff like that. Make up all that stuff. What you need to survive. Can I give you 50 bucks a month? And is that okay?

[A]

Yeah.

[B]

Okay. Anything else? No. Okay. So debt, minimum monthly payments. Oh, what's your phone bill? Do you pay for it?

[A]

Yeah.

[B]

How much is that? 220 or underwater. That pushes 220.

[A]

Yeah.

[B]

Okay, so your phone is financed?

[A]

Yeah. No, not the phone because like I said, the phone is paid for, but it's the service. Like the actual, like service. You know what I mean?

[B]

It's not just 220.

[A]

Through who through at T. It's the service plus the Apple Watch, plus the iPad.

[B]

Oh, so that minimum. That minimum payment you gave me was included self service?

[A]

Yeah, it's all together.

[B]

What's. Okay. Okay, then. Yeah, that won't be in the budget. Okay. Okay. Okay.

[A]

Okay.

[B]

What are you doing? Guys, stop praying on people. Okay. Anything else? Medical? This, that, this?

[A]

Oh, Yeah. I need 30 for prescriptions, but my dad sometimes pays for those.

[B]

Can we rely on him to do or should we put it in the budget?

[A]

No, he'll pay for those.

[B]

Okay.

[A]

I sound kind of privileged. Oh, my.

[B]

Well, listen, I don't have kids and they're smelling stinky anyway. But if I did and if they were in a terrible debt situation, this is how they found themselves in. But they're coming to a position where they're like, waking up to it and they're willing to do the sacrifice. I would be happy to support, not enable, but support them. There is nothing wrong with him wanting to support you if you are actually doing what's right now. If you continue around like in the most recent statements we just saw and he's supporting, then yes, that's enablement and that's not going to help you in your future.

[A]

Like even I went through him with my debt total and it came out to about what you're saying. He was like, well at least you're breaking even. And I'm like, dad, that's not smart. And he was like, change the conversation. I don't want to talk about this immediately because he's.

[B]

I'm sure. No, I'm sure. Okay. I know I've, I've joked on him, I've, I've goofed on him and I'm a bit like, I'm sure he's a very smart person in a lot of different ways.

[A]

Just finances aren't.

[B]

When it comes to money and debt, he's a dumb. Listening to him Anyways, yeah, 1, 210 is what you need to survive. Meaning you have a hundred dollars left on a monthly basis. Essentially 100, 138 hours.

[A]

I could, I can't do a hundred dollars, can I?

[B]

Because I'd want you to have a one month emergency fund. Then I want you to start paying off the debt and it's going to take like 25 years. So it's, it just doesn't make sense. I want to take a brief moment to thank today's video sponsor, Aura. Are you sick and tired just like me and everyone else, honestly of receiving endless spam calls every day? I mean, look at this. Let me open my phone. Look at this. This right here is all spam. It's crap. Except for one friend. There's one friend phone call, the rest is spam. Data brokers are making a fortune selling your information to robocallers, spammers and others who want to learn more more about you, like where you live. But with Aura, they can identify data brokers exposing your info and submit opt out requests on your behalf. Brokers are legally required to remove your info if you ask them to, but they make it super hard to do. Let Aura handle that for you. Aura also does a lot more to protect you and your family from online threats you can't see. It's really easy to set up so you don't have to download several different apps to get things like parental controls, antivirus, vpn, password management, identity theft insurance and more. You can get everything at one Affordable price. Let Aura do the hard work of keeping you safe online so you can focus on other things with peace of mind. Go to aura.com hammer or check out the link at the top of the description below. Thanks again to Aura for sponsoring this episode.

[A]

I have to get another job.

[B]

I mean that's the only option. What I would do is I'd either get another job or get a second job, whatever it is. I'd minimum be trying to bring in about 3,000 bucks a month, which I know you can find in Houston. I know for a fact you can find in Houston.

[A]

I don't know where. But you're probably right because I know.

[B]

You can walk into Jimmy John's of which I've cut back on. But you walk in there, they're like, oh please work for us. We will like do anything and everything in the world. There's places that'll work, there's training, blah blah blah. Yeah, there's stuff you have to do. But you also have a degree, you have resume experience. You can walk into a service based industry and we can get you a job and you can work two of them at the same time and equal about $3,000 a month. Everything is easier said than done. You actually have to put in the work. You have to construct a resume that's decent. You have to communicate with them, you have to get through an interview well and you have to show up and work and perform. So there's a lot of things that go into it. But I know if you do the work necessary, 3,000 bucks a month you could bring in. Meaning I could have an extra 3,000 or 1,700 dol dollars left on a monthly basis to start putting towards things. What I would do once you have that in place, I would do the car thing because extra $10,000 goes a long way in your debt payoff. I would sell the car private sale, borrow the $15,000 in a personal loan. $5,000 pays off the car loan permanently. $10,000, boom. You get a $10,000 car, whether that be in a used lot or in a private sale. You're taking it to a mechanic and you are getting the seal of approval that it to drive. And it will have longevity for at least a few years. It'll get you through law school. So I can't because I don't know how much you're going to make. I don't know what you're going to do. But I would obviously take care of the affirms first. I think. I mean for most Cases just based on behavior things. The snowball method makes more sense which has been around since the history of time, since debt has ever existed. And it's been around forever for a reason. Because it works, you can actually start seeing progress on things. So I would pay these off smallest to largest. I don't know how long it's going to take, I don't know. But what I would try to do because the car loans, the big daddy with that being gone, bringing your biggest debt to the 15,000 hours you owe on the personal loan. If you go bring in $3,000 a month, $4,000 a month, maybe go get a customer service job, something like that. Those are always in demand as well. I don't know if you'd be good at sales, I'm not sure. But what you could do three, 4,000 hours either. Two service based jobs work one actual, you know, like career position. Even though you'll only be there for a couple years. Two for a couple years. And I think you might be able to knock this out and that.

[A]

I, I literally talked about my mom about this yesterday on the phone and she was like I think it's just best for you to go all the way through. And I was like mom, go to law school so I can have my car payment and my credit card payments and take out more debt. I, she was like well you're going to have debt anyways in life. And I'm like this is smart, okay.

[B]

They just don't understand debt and finances. That's fine, we've been over that. Show them this video. That's okay. I don't know if they'll fully wake up to it. But there is just the reality of the situation where I want you to be successful. Let's get you to the place where you're going into law school successful. I mean you're 24, you're young, you're young. So if you're going to law school at 26, I mean that's. That's incredible. You starting your law career in your 30s, you can have a very successful life. So, so what I would do how if it takes two, three years, I would get a one month emergency fund. I would do the car trade like we talked about and then I would pay these off. Smallest to largest pay them off, work your for probably not having a single ounce of paid for fund throughout that. I'm sorry, but that's because your future matters more than your current fund right now. And then we're probably saving up an additional five month emergency fund. So that it's a total of six. And then you can go into law school if you want at that point. Or you can try to save a bit more to try to pay towards it. It's going to be hard to pay for it fully because it is expensive. What did you say the yearly tuition at UT was?

[A]

30,000, 35,000. Just tuition alone, not living expenses.

[B]

Law school. Law school. I mean, you could find no scholarships and maybe working a little.

[A]

You can't work in law school. They won't allow you the like law school board one, that's fine.

[B]

But working before, if you want to take maybe an extra year, I think you can honestly cut it to like where you're only borrowing for half of it. Half of it. I think you could do that. That'll be. That'll be hard. But I think what's most important, have yourself a little bit of an emergency fund, maybe even just three months and pay off these bad debts and then we go into law school. I would not do it before then.

[A]

I don't want to. I just like. I need to stop caring what my parents think on this one.

[B]

Yes. Love your parents. Love your parents. I want you to. Your life matters than their expectations or desires for your life. Your actual existence matters than their grand concept. So important conversations will have to happen because you also need to continue living there for this to work. You do, unfortunately.

[A]

But again, tried, but they act like they don't want to hear what I have to say and.

[B]

Show them this video. Show them this video. And I'm happy to correspond in a couple emails or something like that as well, but show them this video because I'm going to support you as much as I can because this is very dire and this is very scary and your future really does matter and I want you to succeed. I. I don't know if I'll still be doing YouTube at the time or anything, but I. When you're like 30.

[A]

Oh, that's quite some time.

[B]

That's quite some time. But you're done with law school. You're in the early parts of your law career, I think. And then you attack those student loans. Anything above 5%, 4%, as quick as you can.

[A]

Oh, we didn't talk about my current ones, but like I said, I won't have any payments on them.

[B]

You more than the third 27,000.

[A]

No, I'm saying those. Yeah.

[B]

Oh, well, right now, I mean, they're just in deferment, so I'm not even thinking about them right now. You'll put them in your stone ball. Eventually you might minimize the payment until they're paid off In a traditional ten year plan anyway because the interest are the, are quite low. Because once you're in, once you pay off anything above 4 or 5% after your law degree, whatever you take out, I would minimum payment, the rest if they're lower interest. And then I'm going to probably start contributing about 30% on a monthly basis through retirement. But luckily if your needs are less than 50%, 50% or less and you're contributing 30% to your retirement, once you get well into your law career and you start making some, you know, decent money, even if it's just 20%, that goes to fun. That's a lot of fun that can be lived. More fun than you've ever lived. I think your future is bright. I think your future is actually really bright. And I think you're gonna make your parents proud. I think you're gonna make me proud. I think you're gonna make everyone in the audience proud. It's just gonna require about two to three years of intense sacrifice now. Then sacrifice through law school, not continuing the habits you did through undergrad. And then, dude, you're set up for success. Hard work now, but it is worth it for 30 years. No, it's gonna be longer than that. You're not gonna live. You're not gonna. Oh, just based on modern day medicine, I think you're gonna live well beyond 60. Yeah, like let's, let's aim for 90. Why not? Let's go to 100. Let's just go, grandpa.

[A]

Like I told you, he just died. He died at 104. So you know, look at that.

[B]

We got the jeans ready to support Florida. So that's incredible. So you have decades and decades and decades and decades of a grand life to live. Sacrifice for a half a decade, totally worth it.

[A]

I agree and I'm willing to work.

[B]

Good. Well, it makes me nervous. Again, we just saw these were the most recent statements. The behavior has not changed there. The care has not changed. Hopefully this conversation is a fire under your. That's why I go so hard to light a fire under. Because this is the conversation I wish someone had with me a decade, if not more ago. I have the exact conversation I wish someone would have with me. So that's why I dig in and go hard. I'm a little nervous because of that. Those are the recent things. So we need an immediate behavior change and we need to change the psychology around this and how we're presenting life. But hopefully this conversation has helped in regard to that.

[A]

It has. But like I told you, I've been avoiding the statements, looking over them. It shows how terrible my habits are.

[B]

Just be real. This is one of the scariest financial situations I've ever seen.

[A]

Ever.

[B]

Yes.

[A]

Oh, wow.

[B]

You're overdrafting. You're not making your payments. It's terrifying and you don't make enough to survive. But on the other side of it, five years, six years from now, you're living an incredible life. So take one of the worst finances I've ever seen, if not the worst, and turn it into the best finances I've ever seen. You have that ability. You have that ability. Change your psychology around this. Change your behaviors and do it. Kick ass.

[A]

I want to do it. I will do it.

[B]

Any final questions? Any final thoughts?

[A]

Final thoughts? I have a lot of work to do and I need to start now.

[B]

I really wish her the best of luck. It's going to be a hard and long road, but I think Hammer Financial Score. She guessed it. I think we all know it. It's a zero out of 10. It can't be better than that. So. But best of luck. Keep us updated and let us help you along the way. Constant communication as always. Check out all the resources linked in the description below. They are what I use or would use in specific situations. If you want to be in an episode of Financial Audit and you're able to make it down to Austin, Texas, fill out the survey in the description below.