23-Year-Old Is Going To Drown In Debt FOREVER

0:28Americans told Washington what they want. The holidays mean more travel, more shopping, more time online, and more personal info in more places that could expose you more to identity theft. But LifeLock monitors millions of data points per second. If your identity is stolen, our U.S.-based restoration specialists will fix it, guaranteed, or your money back. Don't face drained accounts, fraudulent loans, or financial losses alone. Get more holiday fun and less holiday worry with LifeLock. Save up to 40 % your first year. Visit LifeLock.com slash podcast. Terms apply. This is Lyle, I'm 23 from Berlin, New Jersey, and this is Financial Audit.

1:04Okay, thanks for coming down from New Jersey. Now, yes, I just want to say something right out of the gate. Let them know. My voice sounds like death. I don't know why. I don't feel sick. I feel nothing. But I sound like an interview with Miley Cyrus for some reason. I don't know why. Yeah. I'm just full vocal fry today. Thanks for coming down. What do you do for a living in New Jersey? Got a couple things. So my main thing that I do is real estate So more recently Over the past year or so I've gotten into real estate And I've been actually doing real estate more so What's the job in real estate?

1:39A salesperson So anybody who wants to buy a house Anybody who wants to sell a house I'm a realtor I forget that sometimes needs to be clarified When did you get your license? Like two years ago For the first year, just sat on it Got my license, paid a bunch of dues And was like, I have it, great Then I was like, hey, there's like a$400,$500 annual due. When that came back around, I was like, oh, I use this thing or I give it up. There's no like just spending$500 a month because I have it. That's when I started coming to the office, feeling around, seeing how to actually do real estate. First year, a couple of transactions, nothing crazy.

2:16Kind of got my bearings and all that. And this year, doing better off. What have you made this year so far? This year. Five months. So in these five months, I made around, not nothing crazy, because I'm still newer, okay? Four months. But I made around$15 ,000 this first year. And I'm in contract to make another$15 ,000 within the next two months. And then hopefully, I mean, we'll see what the second year, or the second half of the year has for me. So, yeah, we're in the beginning of the fifth month. So that's$30 ,000 in six months. Yeah. In contract. Those contracts could fall, though. Contracts could fall through.

2:53Yeah. I've personally never had one fall through, but I'm newer, so it could happen. So$15 ,000 over four months. Yeah. And then what else do you do? You said you do a lot of things. I do a lot of things. I do DoorDash too. Okay. Yeah. DoorDash, I'm typically bringing in. I mean, it fluctuates a lot. So that's what sucks with that because it's all discipline. It's all, do I want to DoorDash? And then yes or no, kind of, instead of having like a routine that I should follow. What do you bring in normally? Typically between$600 to$1 ,000 a month. Yeah. Well, I see here. I mean, there are expenses.

3:28Here's your DoorDash statement. This was in last month, all of last month. You brought in$918, but there were, I mean, there's lots of gas. Lots of gas. I pay around$250 to$3 a month on gas. It's painful. So you worked away with like$700. Yeah. Okay. And then maintenance on cars. Maintenance on cars. Calculating. Nope. Or taxes. Well, yeah. I mean, you're setting money aside for taxes, right? For real estate and this. I'm like, directly at the camera? No, not yet. Why? Because I have debts. And I'm like... That doesn't matter. You got to pay the IRS or they're going to come after you. They're like...

4:06I'll say this too. For the past two years, I was able to write off 90 % of my income because I drive so much. And the other 10 %? Other 10%, it's probably like a couple hundred bucks where I'm like, okay, cool. I made that last month. Here you go. So you paid it. So I pay my taxes off every year. but it's never come out to anything crazy. I know this year because... Well, yeah, you're not making anything. Exactly. So I know this year I'm going to make a lot. So that's where I need to put money aside. Make a lot. I mean, we're$15 ,000 in the first four months. If everything goes through, we're$30 ,000 within the first six months, meaning$6 ,000 plus an additional thousand hours a month that gets you to$72 ,000.

4:39Yeah. I mean, that's great. I'm happy. We're not making a lot. I don't know what your definition of investment is. Making enough to be taxed is what I'll say. Yes, that is true. That is true. But you're not setting money aside. So we have enough to be taxed, we've established. If everything goes well, the market fluctuates. Who even knows? And you can have hot parts of the year in terms of buying and selling as well. Of course. So we can't guarantee that income. No. We can probably guarantee the DoorDash. The DoorDash is the only one I can almost guarantee. Well, and that was$1 ,000 before expenses.

5:12So really, it's$700. So I mean, who even knows? Either way, all we can do is go off history and then we can base it on that. Yeah. We're not going to go off of like, oh, I hope I make this by the end of the year. I know. Unless they're business projections, but we're not. But we're not. Yeah. I do a third thing. Oh, okay. Go on. I'm a sperm donor. Oh, okay. Cool. How much do you make doing that? A good month. I'd say 900. If I go less, let's say, I would say typically 600.

6:13Like for me, I found out I had a Paramount Plus subscription. Like, why is anyone subscribing to Paramount Plus? And yeah, I canceled it thanks to them. So it safely and securely tracks reoccurring payments so that you can cancel subscriptions just with the tap of a button. People have found they can save so much money by getting rid of these unused subscriptions. Thanks to Rocket Money. Another feature I love is the ability to lower my bills. By simply uploading a photo and tapping a button, Rocket Money negotiates my bills for me from internet service bills to cable and phone bills. Rocket Money allows me to set budgets and automatically monitor my spending categories.

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7:38That's rocketmoney.com forward slash Caleb to get started for free. Get your money right with Rocket Money. So if you want to kind of break it in half, let's go$7,$750. All right. So you're a jizz boy for$750. $750. That's what I sell it for, yeah. Okay. So you have a bunch of kids running around? So I only signed up to say, like, hey, when they turn 18, they can reach out to me if they want. And I had to sign something saying that. Until then, I have no idea. because it hasn't been 18 years since you've been doing this. It hasn't been 18 years. I assume I'm 23 years old. How long have you been doing it?

8:11All right, this is the crazy part. They can only have 25 kids from me, right? I've been doing it for three years, and I've been going a couple times a month. You can only have 25 kids from you? Yeah, because they don't want to mess up the gene pool, I assume. But they'll take more than 25 samples. But they'll take three years. I've probably donated at least 200 to 250 times, and each donation can have about five kids. so that's probably a thousand samples worth of kids interesting why are we doing that just to make money? like I said extra 800 sometimes they have bonuses where I made thousands a month before like I made 3 ,000 one month and all I go in there is I just drive over the deed and then leave so it's easy money it's 120 per donation and I go twice a week you just go to a room pull up the app the magazine, the photos, whatever.

9:01Yeah, whatever. Interesting. Very interesting. All right. Yeah. So, I mean, you're bringing home after expenses more for being a jizz boy than DoorDash. Yeah. But I can't go more than twice to three times a week. That's the crappy part about that. So I need something more to kind of back-end it. Like something that comes in every day, every other day or so. You know. This episode is brought Brought to you by NBA on Prime. This Tuesday at 8.30 Eastern, it's the Emirates NBA Cup Championship game on Prime. This year's quest for the Cup has been building to this, the championship game. Live from Las Vegas.

9:40Not a Prime member? Sign up for a 30-day free trial to get started today. The Emirates NBA Cup Championship game. This Tuesday at 8.30 Eastern. Only on Prime. Restrictions apply. See Amazon.com slash Amazon Prime for details. You're soloing it when you're there. Yeah. I actually can't stand you I just So real estate is the hope Real estate's the hope It's the dream Yeah I've transitioned recently Like I said My first year I did like two transactions This year alone I did six And I have another Like three to four Now why are you In so much debt Okay I went to school Before this For what A couple things But mainly nursing Okay Towards the end Once COVID happened Everything transitioned To online I'm like oh wow This sucks I can't focus at all.

10:27I'm getting distracted, but whatever. And I also moved to Jersey during this time from Philadelphia. It basically put a monkey wrench to things. During that period though, I wasn't working. I'm just a student. So, I'm probably getting money here and there from side things like that or DoorDash typically, but I basically realized that my income versus my expenditure was not like equal. I was slowly going into debt. For how long? Probably for like a year, maybe two, maybe 18 months quite the debt to build up in just a couple even a year maybe two so what happened between that I also my mom ends up I was living with her rent free things go south on her end as far as she's like look you gotta find a place this is not nothing between us but between basically she ends up getting divorced so she's like hey I have to downsize you gotta find your own place we only have two rooms and I have two other siblings I'm moving with my aunt I pay her$500 a month during that time Yeah.

11:25Okay. Which is basically nothing. Nothing. As far as rent goes. Exactly. So I'm a student paying her 500 a month. Great. I can kind of deal with that. I then take on a car note. This one was stupid. This one was a bad idea. During this time, I get the bright idea that I'm driving so much that I could get an old Tesla. Okay. So I get a Tesla. The car note for the Tesla. and mind you, I don't pay gas. So I'm saving about 275, 300 a month. And I'm like, okay, I like that. But I know your face is otherwise. The car note was 550 a month and I'm making less than what you saw there. So I'm paying 500 a month in rent, 550 a month on Tesla.

12:09And then my insurance was another 330 a month. So almost$1 ,000 between car note and insurance, I'm getting like, I'm drowning at this point. So anytime I go out for food, be that groceries or not, or like anything, I'm paying on a credit card most of the time. at that point um more recently as you saw uh tesla's dropped in value i don't know if you've seen sorry i have yeah so they dropped in value um what's kind of giving me the hope that this can kind of turn around during that time january 16th to be exact i got into an accident um wasn't my fault this year this year okay a couple months ago yeah i get into an accident wasn't my fault insurance company basically says look we're gonna pay you out the car's done i'm like thank you I get a much cheaper car which I now have in a car note of$8 ,000 but I get a much cheaper car with a much cheaper car note my car insurance is now like$130 a month I cut it to a third of it and I'm still paying now I'm paying$600 a month in rent because I moved out but I'm paying much cheaper on car note things, I'm making a little bit more money and like I said with real estate there's a lot of things in the works obviously nothing's guaranteed I guess that answered the question a little bit We'll just have to dig into this a little more.

13:21I want to know what you give yourself a score of 0 out of 10 right now. Write this today. Probably like a 2. Okay. Yeah. All right. Well, from what I've seen, that's optimistic. But we will see. So, okay. Yeah, we went through the Dasher Direct. That's your DoorDash thing. Let's start with your checking and savings. $53 ending in your checking. Do you have automatic withdrawals on different things? I do not, thankfully. Okay, so everything's manual. I have to be good. Start of a$1640, so barely anything. And then there's another checking account that you have$129 and they're started with 13 cents.

13:54And the savings, 51 cents. Yeah. Okay. So no savings. No savings. Is there savings anywhere? Do we have anything? Do you have an emergency fund? Do you have anything? No, I don't. Okay, why? I mean, you'll see that the debts were just so big that I'm like, look, if I have to. And I get the point of saving the thousand dollars to the side just in case something happens. But I'm like, look. As Dave, yeah. As Dave, yes. I'm like, look, I could just pull that out of credit card and need be. what's the difference between me paying that down$1 ,000 or pulling that$1 ,000 out when an emergency happens from the credit card.

14:23Interest? Interest. So I'd rather pay the credit card off first with that$1 ,000 and then if I really need it, go back and pull it back out. That was my idea of use that$1 ,000 emergency fund to just pay down a debt a little bit more. We'll see. I mean, what we've often found with a few people on this show who only save up$1 ,000 and a big emergency happens, they end up getting into a worse situation that's harder for them to pull out of than if they had a few thousand dollars set aside. But either way, I mean, this is, okay. In here, okay. So in here, you're spending$319 at Target and parking and Wawa.

15:00And guess what? You had a withdrawal of$37.31. We rejected because you didn't have the money in there. Yeah. So we're clearly overspending. Yeah. Like, why are we at a point where you're going and spending$37.31 on something when you don't have the money? Why are we there? That was actually That's my only reoccurring charge And it's a gym membership So you have reoccurring So why are we leaving no balances In the checking account essentially like that Um This makes no sense the way you're managing money Do you budget Now yes What's now Within the past like 2-3 months What changed Um I don't eat out at all anymore No what changed Why did you start doing a budget?

15:46Oh, why'd I start? Honestly, as you see there, the debit card was bouncing back. The credit card started bouncing back first. And that's where I was like, okay. I was like, this needs to... And once the Tesla bill was off of me, I felt like just a tiny bit of weight relieved off my shoulders. And it was like a message saying like, dude, you pay this off now or it's done. What do you want to do? I'm glad you changed it because that'd be ridiculous. Okay. Okay, so we also go, these cannot be gas, because you're getting gas on your Dasher thing, but the Wawa for$7, that has to be stopping and getting like a snack.

16:22Or are you only getting$7 of gas? It could be$7 of gas because you had nothing. Was that last month or no? Yeah. That was probably$7 of gas, yeah. Yeah, because you had no money in your account. Nothing left over, and I was like, okay, I get$7. That's it, yeah. Okay. Auto use,$212. That's my car note. Oh. $212, yeah. H &R Block Retail. That was taxes, yeah. Oh,$4.92 in taxes, so that's the tax payment you paid. Paying for parking, Dollar General$2.65. Barbera's Inc. It's my haircut. Oh, okay. Yeah, Barbera's house full. $52. I mean, right? It's not a$52 haircut, I know. I was going to say, why don't you just go to, you could go to Great Clips with that.

17:08It's nothing special. Something exciting. Neither does mine. I mean, but still And then parking Dave Inc. Isn't that a borrowing thing? So I thankfully Didn't do it I signed up for it And I was like I'm not gonna do this Okay, good Well, don't do it Because that'd be stupid And that was just so recent So don't even get tempted I got tempted $85 IRS Lens Crafters $493 Those glasses right there I'm assuming Yeah Which I got refunded for So there's your reoccurring Yes And 532 Apple Bustwood with the boys Is here to let you know That every college football Saturday FanDuel's dropping profit boosts that can turn wins into bigger wins.

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18:07Bill and Chick-fil-A. Don't go out to eat anymore. We're all right. and parking. You spent a lot on parking. Can I say for Chick-fil-A? Cash-shipping out$15, parking a dollar, parking, and bright MLS. What's a bright MLS? That's real estate, dudes. And the Chick-fil-A, that was for a friend. I owed him money and he's like, yo, you could buy me Chick-fil-A or you can give me the money. Well, stop owing your friends money. Parking again, cash-shipping out$20, so clearly, if you're owing someone something for that, and parking again. now Zelline to I think your girlfriend $164 and Zelline$625 those stats for rent and utilities

18:52and your rent for watching this video is clicking the subscribe button we're trying to get to 500 ,000 subscribers thank you to everyone who has subscribed so far you're all amazing, I love you, thank you do it, subscribe, please, for my life for my sake, you won't let me out here until you subscribe And then you have like nothing in savings Yeah nothing Which scares me but whatever FICO score this has been dropping down Why are you laughing so much is this a joke Are we here for jokes and giggles It's not a joke it's definitely just like It's the anxiety of it definitely Just wanted to make sure Started close to near 700 which okay great I mean you know Early 20s at that point Last year a year ago We're very close to 700 that's fantastic But we've dropped down below 600 and into the 591.

19:38Yeah. So the situation's only been getting worse. Yeah. We talked about a couple years of things going bad, but it's only been getting worse since here. I want to make sure I'm covering up anything sensitive. But look, the chart's only going down. We probably put it on screen anyway. But, I mean, this is what makes no sense to me. This card is better than the others, but we'll start racking up the debt. We're getting into the debt now. But a Macy's card, a stupid, stupid store card of all things, and it's a Macy's card, had a previous balance,$3 ,616. Okay, that's not good. What's good? $2 ,633 of payments.

20:17That's fantastic. But we're putting$33 on it. Why are we putting any money on a card that we're trying to pay off? That's barely any money compared to your payment. So compared to usual, okay, good. But$65 of interest, if we're losing$65 of interest and$0.16, why are we still spending money on there, leaving it with a$1 ,000 balance at the time of this statement? Yeah. So that one, I think, had a reoccurring bill, and they wouldn't let me lock it. And the reoccurring bills were here and there. I ended up just reporting. Why don't you cancel? I reported it as stolen. I was like, look, the card got lost.

20:44It wasn't. Why don't you just cancel the recurrence and move them? Because I didn't know how to do that. I'm like, look, these are websites that are from years ago. I'm just going to report the card and if I really need those reoccurring charges, I'll put them on my debit. With a$76.16 minimum monthly payment with$65 of stupid interest. Yeah. No, I looked at it. Once I saw your videos and I was like, how much interest am I accruing? It was high. Yeah. This is ridiculous. It was a monthly bill. And it's on a stupid Macy's card. It was HBO Max. Super easy to cancel and change. And Sephora, I don't know what that is.

21:20That was some real estate thing. Yeah, I was like, all right, I don't know. Total interest charge in 2023 so far,$316. $316, and again, your income is very fluctuating. Yeah. I mean, that's almost a half a month of jizz boy activities. So, I mean, already there. And that's just one card. Yeah. Now we go to the Discover. Again, this makes no sense, and we're being objectively stupid here, in my opinion. Discover, previous balance,$6 ,814,$302 of payments. That's double the minimum monthly payment. but$72 is stupid purchases. Again, I need to get into the logic or we're not going to overcome anything.

21:56Why are we purchasing on a card we're trying to pay off? If you've recognized in the past, okay, my situation's bad. I need to start doing good. I started doing good a couple of months ago. We've got back on some things. Why are we still purchasing on cards where you're losing$119.62 on a monthly basis in interest? Why are we spending? That one I couldn't tell you. Is that this past month? It's the most recent statement that I have no idea what it was spent on. The card is locked now? You've got a freaking budget, dude. Because if you don't even know where your money is stupid going, then that's just dumb.

22:27Yeah. You have to budget. $140 minimum monthly payment. Now, typically, I'm not angry at the person. I'm angry at the debt. But the one thing that does make me angry is when they've said, okay, I've started watching your stuff. Okay, I'm starting to get out of crap. But they're still spending money on a credit card. That makes me angry. That's the one thing that will make me angry at you. That is dumb. that urges being in denial but it doesn't sound like you're in denial but still $119.62 in interest that upsets me because the debt's bad doesn't upset doesn't make me angry at you specifically but audible purchases and the edge fitness that's probably what happened the other gym was like hey let me get that and that's where I locked the car that's where I locked it because that was an old gym I used to go to and they basically kept charging me and it was like, you come in here and you negotiate with us on what you want to do or, so I was like, I'm just going to lock the card.

23:24In 20 % interest. Yeah. Killing yourself, dude, with this. You're killing yourself with this. Low web, platinum rewards. I don't even know what that is. Police and a fire. That was my last name right there. Oh. Yeah, platinum rewards is the card, yes. Platinum, yeah, with a crazy thing. Oh, okay. That makes sense. Yeah. Current balance, $5 ,000 stupid $192.42 of stupid debt. Yeah. Disgusting. Now, where we've gotten over$10 ,000 in bad credit card debt at this point. We're like at, what, $12 ,000 almost? Yeah. And what's even more stupid, and this will make me angry, because this just comes down to just basic responsibility.

24:07Late fees all throughout the statement. We're not making our freaking payments on this. Yeah. As recent as March. March was just a thing that one I used you know I'm upset because even with this voice my voice got that high so that's when you know that's stupid and pisses me off yeah why are we missing stupid payments so this one this is terribly on me obviously when I signed up for it it was a balance transfer card because I had 0 % interest for 18 months something like that when I did that I didn't really think more past that I was like, cool. I have zero interest. Great. I didn't really ask, hey, when's my due date?

24:47Or hey, when do I have to pay this? Or what's a monthly? I really just opened the app here and there and would just be like, okay, cool. I owe a minimum balance. Great. I never actually checked the due date on it. So what have we discovered? You are? Irresponsible. You are? Not stupid. You are? Stupid. I thought you said you watched my content. What are you? I'm in debt. I'm bad with credit cards. Not a credit card person. You are not a credit card person. Not a credit card person Objectively Yeah What you just described Going into that situation You're not even close To a credit card person Yeah So will you cut these up Will you cut them up And end them I brought them here today You brought them here To cut them up Have a funeral for them Yeah Oh good And we'll do that Once we get through The credit cards But We have some Realty thing you're doing On here Wawa and Chipotle And Chipotle Taxi fried chicken Sushi That was bad dude Wawa That's over the past Like six months I know This isn't the past six months that I'm looking at past couple months yeah past couple months of FedEx and more realtor stuff in the spirit shop and Wawa yeah and again going back missed payments missed payments late fees missed payments missed payments and late fees and stupid and terrible it's just so bad now you said you have a car loan I don't have the car statement so what is your car my car is a 2015 uh Hyundai Sonata okay what's the balance what's going on I'm Arch Manning Viore athlete and college quarterback whether I'm running training traveling or just unwinding at home, I love doing it in my core shorts from Viore.

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26:508 ,500. What's the interest rate? Is this table nailed down? Because I feel like you're going to flip it, dude. Mind you, I had to get this car recently. I was in a car accident. You saw my credit score of the 591. Yeah, because you've just been getting further and further into maxed up debt almost. What? What? What is it? 16%. Oh, okay. okay what's the interest rate in minimum monthly payment what's the minimum monthly payment on that platinum card uh one I think it's 140 if I'm not mistaken and you're losing interest in something I couldn't see because it wasn't an actual statement it was just either way what's your minimum monthly payment on that card it was like 2 something 212 what's the term 60 oh I know let's cross fingers here right let's can I get a round of applause What else?

27:38What other debt do you have?