Sorry Fellas, You Can't Fix Her | Financial Audit

28:57Yeah. So I don't care when she got it. This is huge for financial audit. For a year now, my team and I have worked with experts to create what I truly believe are the three best educational programs in the financial space online. We have our budgeting program where I teach you how to create, manage, and revolutionize your budget and control your money. And then there's the investing program where I teach you to define what investing profile applies to you and your life and then teach what specific investing strategies applies to you in that situation. And now finally, we have our debt program where I teach you the best ways to pay off debt, manage debt, and even take advantage of good debt.

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30:13She said she's good. Shh, shh. That's not. Listen, I'm not opposed to giving money to people in need, especially family, especially friends or whatever. I'm not opposed to that. But understand the financial situation. You could be enabling them. She could be blowing money on things you don't even know. She could be doing bad behavior that you don't even know. I'm not talking about drugs or anything. That's not what I'm talking about. I'm talking about just financial management. And then you're enabling those by just providing more money. You don't help people by being just nice and allowing them to just their life.

30:45Sometimes a hard truth is required. Yeah. I mean, I am too nice sometimes. I think that doesn't actually help someone in the end. Well, you're yeah. My sorry. You're allowing her to continue doing what she's doing. And we all know people like that in life. I asked her like a month ago like if she could like cause also she had a really bad credit score I'm like this will help your credit score we also need it she's an authorized user? yes oh so if you close it it will also hurt her okay you said it was in your name well it's mine she's an authorized card holder yes exactly I didn't know the difference so yeah you can't use credit cards you should not have access to it no you're right I asked her to open up her own card and do a card balance because her credit score has improved a lot.

31:34She can use the f***ing fizz card, I guess, to care towards young people, but it only allows you to spend the kind of money that's in your checking account. It's like a debit card, but it builds credit. For f***s sake, I don't know. That's probably too old for that. I just don't do things like that. Don't do things like that unless you understand their financial situation, or else you could be just enabling them. There is nothing wrong with giving. But if they are continuing their financial mismanagement and financial misbehavior, you're literally just helping them do that forever. Yeah. And she's never able to fucking stand on her.

32:12Look at her. How old is she? Late 50s. There you go. Late 50s, early 60s. Doesn't know the age of her parent. Okay. So at that point, if she's not able to stand on her own financially, not just a hard time, it sounds like for more than a year now she has been able been able enabled all throughout life or something because the fact that she can't stand on her own two feet for a long period of time moments of hardship completely different completely different yeah but it sounds like this has been going on for a second yeah because i was like i was watching it at first you know like trying to keep an eye on it and most of it most of the charges are large like flight charges like from mom yeah so they're like it'll be like 700 700 going so she goes on like like these work trip situations okay is it reimbursed they send her reimbursements and then she'll send some of the reimbursement she never pays off the full amount then but you've allowed her to be okay the thing is um i need a call you need to close this thing uh she can do that if she uses a reimbursement and pays it off.

33:18But if she's not, then she's just like pocketing the difference. She can't. She's not going to be able to pay off that card. That's$7 ,000. I'm not talking about paying it off. I'm saying if she spends work money on it and she gets reimbursed, the reimbursement needs to go to it. And if it doesn't, she's obviously just pocketing the difference and you need to close it. That's what I'm talking about. Yeah, that's what I think she's doing. She's like pocketing. You think she's doing this and you're allowing this? Well, I don't know. I can't really talk to her about money situations. Why? I don't know.

33:43makes her sad or upset like i don't want to hurt my mom's feeling that's manipulative as i love her it's like the spoiled little brat who gets everything their entire life and then the moment they're questioned they're like no it's like so not like that like we have both made major sacrifices for each other no that's good yeah that's good but come on if you can't have a conversation with someone about money that you are fully supporting or else they start feeling sad that's uh sure you don't agree uh it's yeah i mean i think it's an unfair situation it's a better way i'd put it rather than saying that it's what if i called her don't call my mom you're not gonna let me call her no it's my mother okay i love her yes yeah if we love her don't we do the right thing by doing what what telling her having a conversation about the money you are enabling her okay no you're not because you can't give me a single question into or a single answer into what is actually her financial situation her i i know what my stepdad does i know his like general income and she makes your stepdad she makes like her bonuses fluctuate or her income fluctuates but you don't know her financial situation you're just talking about her job what do you mean like her debt her income her spending where things go Where does the reimbursement go?

35:07Like the debt that she has is pretty much just that one credit card. The one that we share. And it's a dual family household income. Yeah. But she needs your credit. She did because she used to have like she used to do all the payday loans like over and over and over and over again. And this is someone we want to be an authorized user on our own credit. Someone who takes out payday loans. Well, I wasn't going to expect her to pay for like the flight stuff. Exactly. And this is when we have a conversation like adults. right and so after korea i was like hey like i'm gonna turn this card off when was korea can i use it for it was like two years ago okay yeah i don't give a that was two years ago we've had two years yeah it's like enough with korea yeah korea was two years ago what about things in 2024 well sure yeah exactly hulu on this card peacock more precock peacock mr car wash Absolute necessity to survive in Austin, Texas.

36:04Amazon. Amazon. More Hulu. Woo-hoo. Amazon. Amazon. Fast food restaurant. That's what it's actually called? Okay, great. Or is that the category? That's the category. But it was you used Apple Pay. Prime Video Channels. Picnic Palace. Amazon. Apple. Spotify. DoorDash. Jimmy John's. More Peacock Premium. What are you doing? What is your life? Why are you obsessed with this Peacock thing? You're endlessly umpy Are you renting You must be renting No not at all You went to a record store Amazon Amazon Amazon Are you sure the kids Aren't getting things You got a record player No no no no no From Peacock Renting movies Or getting something Oh no This is three Peacock Purchases so far I don't know what that is Okay then you figure it out You might have three Different subscriptions TikTok shop $28 what are you getting Ha ha ha Our return is 20 % Of where it should be Okay Yeah what did you get Uh it was a toy For the kids And they loved it What the f*** are you Toy getting them On TikTok shop I thought that all they sold on there is are you getting your kids your algorithm is really messed up then yeah it is what are you getting it was a toy yeah just what it was like a little water jelly toy situation they loved it played with it for hours it was a great purchase that was it they just got it a couple days ago and he just left oh for micro Christmas Yep, yep, mini Christmas.

37:30Oh my, here comes again. You ready? There's the Apple Pay store. The Peacock! Are you f***ing me? And then DoorDash and Jimmy John's. Why are we DoorDash and Jimmy John's so much? Domino's, Amazon, Amazon, Apple Bell, and more Amazon. All right. $824 on Amazon right there. That was mini Christmas. Stop with your mini Christmas. This is a huge Christmas. You're spending so much money. You need the money you're spending more than I ever got for Christmas. This is huge Christmas. This is like... I'm two kids. What are you talking about? I was a three-kid household that I grew up in, so shut the f*** up.

38:01Let me see your Amazon account. No. 629 hours of interest. This year so far,$5 ,000. $5 ,000. For what? $5 ,000 of interest on one card. Year to date? Yes. Literally, that's at 27.49 % interest. I could put that in my Moomoo account and my uninvested cash gets, I think it's like 9 % return on my money for the first six months or something like that. Something crazy in my Moomoo account. I don't know. But you're just, it's my investing account. But you're allowing$5 ,000 of interest to be accrued negatively and then a massive ass balance of$26 ,955 at 27.47 % interest. Oh, that's okay. Can you unlock that again?

38:46Yep. There you go. Oi, oi, oi. All right. Arriving Sunday. Cat food. Good. I'm glad you're feeding them. you need a little stand for your ipad i get it you don't need a apple pencil and different tips well come on we got a spring it wasn't even for me oh we're raising ipad kids that's great there's your 10th generation ipad he's so artistic you're gonna make him autistic with all this i don't know if that's how it works i don't think so all i know is ipad kids they don't really honestly they really do not do as well in school we're starting to see the actual consequences they're on honor roll thriving no it's fine it's fine i'm not i'm not saying they are but but can we afford to get an ipad right now honestly if you ask my older kid he'll say that you know screen time gives you brain rot and he'll agree with you but right he's more mature than you okay men's pullover hoodie that must be for micro christmas and then double drones We droned it up.

39:45Drone battle? Yes. Yeah, yeah. They each had to have one. Of course. Yeah. A roasting pan. You did not have a pan. I didn't have a pan. And wonder, creature, cat, water. That was a new water bowl. Okay. I know you have bowls and I know you have water. If we're literally just trying to survive, I don't think those are just the luxuries we're getting. Well, it has a, you need to have a water filter in Texas and I don't have a water filter on my sink. So that has a water filter. 98.5 % of faucet water in the United States drinkable safely. I'm specifically talking about Texas. It is disgusting here.

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42:15M-E-E-T, fabric.com slash Caleb. But it's bad for you. What? Like it's like loaded with minerals, the water. What minerals? It has like a bunch of like calcium and lime in it. It's awful. So bad.

42:31Needed beat headphones when we can't afford to survive. Same with Legos. Oh my. I don't need a thing for every single little thing. You got a stupid Oculus. Okay. I don't. The kids. I get that. All is you can't for you have$28 ,000 on this credit card. Do you not get that? I know it's all for the kids. I don't need to know it's for the kids. Every single purchase. I know it's for the kids. That's why it's mini Christmas. I get it. Can you afford it? Is the question? No. National Geographic. that's great um uh for oh okay a cordless leaf blower wireless charging you did not need a wireless charger stand for the kids i'm sure they could charge their phone a choo-choo train set and we really needed that for micro christmas and then we got little what is this a gay batman I don't know what you're looking at.

43:24I think it's gay Batman. Rocks? He likes rocks. I'm not refuncted, but I like rocks. He likes rocks. Loves rocks. But we're scared of drinking minerals. You can't do this. You're f***ing their future. Do they have a college fund? Yeah. What? Well, they're getting the GI Bill. Both? Yes. And it'll cover everything? Everything. 100%. Four years. And they get paid. because their dad is giving his GI Bill to one kid. I'm giving my GI Bill to one. Ah, there it is. They are set up for life. Well, they're set up for college. Yeah. All the way up to a master's degree. That helps a lot. Cafe with lots of phone cases and screen protectors.

44:08This is just so much bull****. So much bull****. The camping light. Now lots of camping gear. We must have went on a camping trip. We couldn't afford. We did go on a camping trip. That we couldn't afford. It was super fun. That we couldn't afford. Memories. That we couldn't afford. It was worth it. it like mathematically was not but sure

44:29an 84 month car loan god you really are patriotic this is the most american thing i've ever seen why an 84 month car loan i want to lower payments you know that's not how it works you are paying more in interest over time because you are allowing that balance to sit longer oh going to refinance it when rates go down okay if rates go down when rates go down they will go down for sure they're what yeah i'm sorry you chaired the federal reserve well i mean i'm just you know assuming they're definitely going to go assuming not really i mean they're they're kind of at like an all-time high when i went and bought the car they've been cut a couple times this year but you don't know what's happening a new administration's coming in what if it's you know things are different we'll cross our fingers you but we don't know i don't know i mean if i can't refinance then whatever if i can awesome whatever i have an 84 month loan i'm gonna have this this car for seven years the loan itself for seven years that's a whatever seven years of my life doesn't matter i'm gonna be 40 and i finally paid off my car and that's a long time car is gonna last me a long time you're an american you are not gonna be happy with the car for seven years uh well that's probably true i was i mean i had my last car for like five years and that was a long time for me but it was like there you go you're answering but listen it was like starting to like have issues and i was gone for so long and it was parked i'm like you're breaking down when you're you are gonna find this being breaking down in seven years i don't know but yeah seven years but this car like i only got to drive it for like what two you owe 39 000 it's worth 31 000 because i just bought it this year yeah of course the value isn't that great but i didn't have it's never going to be but i didn't have any rollover on my last trade-in so congratulations you met a basic requirement i'm like yeah what high fives over making a massive payment on the car but then you spent it all way back and then you want to high five over not rolling over a previous balance a lot of people do that though a lot of people do a lot of dumb i don't give a shit okay okay i still think a lot of people's vape should you Do I deserve like massive rewards for not?

46:47Yeah. No. Okay. Yeah. Wouldn't be how I raised my kids. Hey, guys, you didn't murder someone at school today. Good job. You didn't get in a fight today. Good job. I think that is definitely high five worthy. 84 months. What is it? 2024 Kia Sportage. $49 ,735.81. My goodness. With a minimum monthly. Oh. This is spread out. This is considered a lower monthly payment. Because we spread it out so long. And it is$630. $3.70. Nope. $638.70. That's an insane, disgusting, despicable car payment. For seven years. Something we're underwater by$8 ,000. Are you kidding me? And you do not even think of this as bad.

47:45I feel like$600 is a normal car payment. Normal. Why do you give a shit about normal? Why are you comparing yourself to normal? The average American can't afford a$1 ,000 emergency. Why do you care about normal? People aren't set for retirement in the United States. You want to be compared to them? People have credit card debt in the United States. You want to be compared to them? No. Exactly. The median age to buy their first home is now something in their 50s. You beat that. But you want to be compared to them? It's like, why? Why is normal how we're basing it? As long as we're not a complete piece of shit, financially speaking, then we're okay?

48:19What do you mean you can afford it? You don't have retirement. You are 20 % to where you should be at your age. I mean, I'm not retiring right now, so I'm not worried about it right now. No, this is fucking time. Time is everything. Some people, Mr. Dave Papa Dave out there, Dave Ramsey, do you know Dave Ramsey? I don't know anything about Dave Ramsey. You've never heard of Dave Ramsey? I've heard of him. The best, the most powerful wealth building tool is your income. That's what he says. No, the most powerful wealth building tool is time. Time in the market, allowing it to compound. You are taking that away.

48:53You don't just all of a sudden magically retire. You're already behind. You've already given up your best decade in your life for investing for compound growth. You are almost halfway through the second best decade of your life for compound growth. You are only going to have two to two and a half decades, maybe three if you work for a very long time. decade of compound growth when you could have had four or five. Well, I mean, I have the TSP that's going to be continue to grow for until I'm 59 and a half. Yes. And I know I'm going to interrupt you. OK, it's going to continue to grow 20 percent behind where it should be.

49:27Again, it should be you should be on track for retirement and it grows at the same pace from there. You're 20 percent behind, meaning if it still grows at an incredible normal pace, you're always still 20 % behind. Okay. What was your second point? In 12 years, 12 years, I will get automatic retirement anyways. Of how much? Whatever I, what's it at today? If you did it, if I were to retire, I, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no,

50:10you can't retire it i'm no no i'm saying uh well you said in a couple decades 12 years 12 years if someone's doing that today they completed that extra 12 years yes in your situation what are they getting uh probably like four to five maybe six grand a month it really just four to six that is such a huge range i mean not respect the dollar two thousand dollars is a but also like you know if you know you're gonna be retiring you know between 40 and 45 you can absolutely still work and get you know have a get make a diploma while you're still earn your diploma work towards you know college while you're covering you and your kid yeah i have we have different college funds like i get tuition assistance they get the gi bill oh assistance no it pays for the entire class yeah per semester up to a certain amount or no matter what i think you can take up to like five classes but anything like it could be a private out of state like community college like what are we talking well they have a ton of like colleges you can go to online it really depends there's some universities that okay listen no it is not insignificant being able to let's say the 4 000 even 4 000 hours a year for the rest of your life is not bad that is not going to be enough to survive necessarily and it's certainly not enough to support the lifestyle you want to do i can survive for 4 000 hours a month i would have to sacrifice my lifestyle immensely and you could do that as well i just know you could not do 4 000 hours a month not right now and you are not setting yourself up to double that either what do you mean double it so i have 8 000 hours a month with your other retirement combined with your four another retirement oh my god that that's not till 60 i get that i'm saying you're not on track to take it from 4 000 hours a month to 8 ,000 hours a month combining both.

52:02Oh, okay. Uh-huh. Sure. So no, you can't afford micro Christmas, which was how that started. If you are behind on retirement, you cannot afford it. If you have a 28 ,000, 30 % credit card, you cannot afford it. No, it wasn't micro Christmas. You're saying you can afford this monthly payment. No, you can't because of all those things. Okay. That's the simple reality.

52:29but what am i gonna do nothing uh cash car 10 000 hour car even if you have to take out a 10 000 so what am i gonna do with this car that's at 8 000 underwater oh what are you gonna do right now okay well that's really doing anything right now uh no we can attack it we can go crazy you can attack it like make extra payments yes okay no well i mean i could for sure no no no no, no, no, no. I'm not saying no. That's just initial reaction. Then it's like, okay, well, let's hear. Cause I mean, if it comes, like if it makes sense, like I got so much more that I really have to pay for that. Adding a little bit more meaning that you actually cannot afford this car.

53:05So, okay. I can afford it with my income. You're spending more than you make. I'm spending more than I make though, because of my credit card situation. So if, because of a credit card situation where we are, where we are today, then no, you cannot afford the car payment. How is this that complicated? it makes sense to me. I don't know how. Okay. Is that a blonde thing? Probably. Okay, so blue cash preferred. Is this mommy's? No, that's mine. That one is almost paid off. It is almost paid off. And it's interest-free. We're attacking an interest-free card first. It's interest-free? Well, no interest is accruing, and it has a balance.

53:44So my guess, yeah. Only through February, so we're almost there anyway. It'd be three months from now. Okay. Was any particular reason you were attacking this one first? I wasn't. I was just like ticking away a little bit a month. Yeah, but you're doing much more than the minimum on this. You put$200 source of one. It's a$40 minimum through payment. That's what I always do. I'm like, okay, I put like big payment, real payment, real payment. Okay, so there was actual no intention or strategy or idea or thought. Okay. No. 511 hours and 50 cents is the balance on here with a$40 minimum through payment.

54:17No purchases, no interest. Good. Thank you. Cool.

54:23February and then it's 27 28 % interest just about oh what is this Navy Federal credit this is a huge this must be mom Navy Federal is that like six seven grand it's 7 ,472 yes I only made one charge on it I think and then I paid it right away close close close what close close oh close the card I thought you said like clothing no close it or understand her financial situation better and then gift her cash if she ever needs okay all right i'll do that does that make sense yep she work yeah she does yeah i'm very concerned that you're not able to have a conversation with her she'll just get sad yeah we don't talk about like i don't know how the you're gonna do this we grew up very very poor so great it's like tough to like talk about finances.

55:16I also grew up not in a financially good household. Guess what? We have conversations because we're adults and we know how to communicate with each other and we don't get offended at everything and act like we're children. Okay. Is that a balance of$7 ,472.95? Lindsay's checking on your child. Bathroom break. He just wants to be nosy. $141.36 is owed on this. I will not swear for five minutes. Two minutes. Two minutes of no swearing for child purposes. $141.36. Is the payment? That's your minimum. Yep. Okay. Yeah. So I have a recurring payment. You effing dumb dumb. This is so stupid. Why? you made a$352 payment good it's double your minimum but did you purchase$507 with interest accruing of$66 what has happened oh this is your mom that's right what was that$300 charge no$352 went to the card oh what was that $507 was charged to what American you don't even know what it was you don't look you don't I don't look at it because I don't spend it but it is your credit and I make sure that it's paid every month at your minimum no at least so i have a recurring payment i cannot 22 years to pay off but that's with no purchases there's always but i never she went to fairfield and had some in and suites yeah she had a hotel one of those work trips one of those work trips that's never reimbursed back into the account correct are you sure i cannot call her because i think she needs a little conversation no we're not we're not calling her okay no why no why i don't want you to uh-huh why Because she.

57:12I'm not going to push you to. I want to know why. Nobody knows I'm here right now. This is a big secret. Okay. Well, they will, won't they? They will eventually. Yeah. In like three weeks. And if you call her and you're like yelling at her through the phone. I won't yell. I'll be informative. Who the hell is this? What's going on? Don't tell me how to live my life. I only yell at people that I have permission to. I will just give her the flat. What's going on? Just get a little information. Okay. Fine. Can you call her and ask her? I won't participate. Oh, I will. In the post show? I'll do the post show.

57:44Yeah, yeah, yeah. In the post show. You'll call her. I'll call her. All right, guys. We'll do it in the post show because it's behind a paywall. People feel more comfortable with personal things there. Feel free to join our join link in the description below. Join Hammer Elite, by the way, for like 10 ,000 hours of extra content, exclusive audits, live streams, and even a call-in show. It's pretty fun. Total interest is your charge so far of$708 on here. That's insane. That's disgusting. and it's vomit. Not as bad as the other one. The other one was disgusting. No, but come on again. Let's not play the compare game.

58:16That does not mean that it's not bad. You're obsessed with the compare game. It's comparing. It's spending money you don't have. Okay. Wells Fargo. Uh-huh. Reflect Visa Platinum card. Uh-huh. Everything. Okay. I pay that one every month. Pay it off every month because it just gets. Yeah. Looks like you did. Yeah. Gambit Social House. Gambit Social House. And then a gym kits. That's$159 and then$30. It's still so much money that you are then forced to pay off of this instead of putting extra money towards the other debt. So what are we doing? Those two first things were bullshit. Well, yeah, no, those were dumb.

58:53For sure. That's money that could have gotten pain off your other debt. Yeah, but you know. So what are we doing? Socializing, obviously. Socialize for free. Go to a dog park. I don't like dogs. Put your kids on a leash. It's your dog. Woof, woof. here no no no that's so silly and we're like we're home there's so much you can do that doesn't require having to go spend money i i really don't know i mean we go hiking sometimes there you go wonderful that's not that's a solo thing there's no socializing there social so just random people trying to get out in the date world um yeah i'm just dating no that was just that was really just hanging out with friends i swear okay then if it's friend stuff then hang out pre-game you know i don't know that's true if you've ever contributed to a 401k you probably don't realize this 25 % of 401ks are just sitting out there lost or forgotten that's retirement money that could be working for you but instead it's stuck collecting dust because rolling them over into an ira can feel like overwhelming death sometimes seriously who wants to deal with all the paperwork endless calls and lost checks in the mail?

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1:01:18So I don't give a shit. That is what was here. The kid is gone i can say that's at 29.49 interest but again no interest is accruing so that's okay penny max so this is the house this is the mortgage yep this is 267 796 dollars and 45 cents uh 4.9 interest rate good thousand two hundred seven dollar minimum payment not bad at all Not bad at all. Okay. What is the value of the house today? Like just kind of, you know, just rough. Probably about the same exact. When did you buy this? I bought it last December. I think it's probably a little down. It might be a little bit. It's probably a little down.

1:02:02Yeah. But are you saying you purchased a 0 % down? Yes. Gosh, I like the idea as a benefit. but again it's not actually helps you get into the house yeah but when you're in a market right now where it's a bit weird it's a bit slower and it's a bit down in austin you now have a negative equity position in your house oh absolutely but i i like i was really stressed when i was trying but you could have rented for cheaper i like there was nothing available at the time i swear that's not true well i mean that was like in a good location in a safe area and that wasn't a duplex i hate duplexes there's like literally one neighborhood in austin where people get hurt well i don't know what you're talking about the the where i mean yeah so where i was looking now it was there was a lot of like sketchy areas so yeah and this house had a lot of incentives georgetown is all old it was like really nice incentives new construction came with a bunch of stuff like home warranty situation i don't even think people in that town are able to walk down the stairs outside their house.

1:03:12It's a bunch of old, white, retired like, just like 1950s like Yeah, but still, I like it. I know, but you would have been safe. And I did like, also, like, I got like the, no, the skin color doesn't have anything to do with the safety. I know a couple people are gonna say that. I'm just saying it's just a very, very, very only white, old people town. Yeah, predominantly, but it's fine. I don't care. But this is like you were afraid of safety from a bunch of old people? Or do they all have machetes swinging that? I don't know what you're talking about. Some of the other areas where I ended up being.

1:03:51But anyways. Okay, cool. Now you get an equity on a house. All right. Any more debt? I don't think so. We get the blue cash, the platinum, the Navy Federal, house, car. I think that's pretty much it, honestly. I'm going to write down your minimum monthly for the car. 633. 633. 638, sorry. Okay. $406. No, Active Duty Checking is only a... So E? What is E? E has$236. Active Duty Checking has$162. Savings has$6. What is E? It's just the E-Checking account. That's just the name of it. I don't know. Yeah, but what do you use it for? You told me about all these different accounts. So the E account, that's where my mortgage and a lot of the things I have enrolled in bill pay, they come out of that account.

1:04:51And then they... My producer's telling me to ask you about property taxes. What's going on? Oh, you know, I totally forgot to bring the property taxes. I have that coming. What do you mean? That should be... Are you not building that up into your monthly payment? So here's what happened with the... Yeah, in the escrow account. So I think the way that like the mortgage people set it up, I don't really know how it works, honestly. Set it for an annual payment? So they had it going, but it was like based off of last year's property taxes. And the house didn't exist last year. So now they assessed my property and they assessed it for like, you know, what is valued at?

1:05:26And now my property taxes are going to be like$5 ,000 out of pocket. Is it not spread out through the month though? Into your escrow account, taxes and insurance. I checked my escrow account and it's like it's less than a thousand dollars. OK, so you got a backfill. By when? February is the first payment. So it like and it goes. So not first payment, but it's like your first chance to pay. If you pay in February, this is the money. That's just how much it costs. How much do you owe? For the escrow? How much will you have to have? It's like over five thousand dollars. You need an additional or after the one?

1:06:03No, that's just the total cost. Okay, so$4 ,000 is what you need. Not including the expert. You need$4 ,000. Well, because your insurance payment will be paid through that as well. I'm going to say$4 ,500. Jeez. The price is such a failure there like that. Yeah. So Minecraft payments and Minecraft payments and Microsoft payments. I don't know how to turn that Minecraft payment off. I've tried so many times. Challenge it. Tell it to stop charging from there. Talk to the bank. Go into the account and stop. Ask your kids where it is. They don't use it. Okay. Check your Apple subscriptions. What do you know?

1:06:38It's not on there. I even went to like the Minecraft Microsoft. Like I have really because this has been charging. Call the bank. Okay. Because it's been literally. Call the bank. Call the bank. Call the bank. Ask him to block that. Okay. I will do that. But then a Microsoft payment 21 bucks. I don't know what that is. Honestly. go through our budgeting class so you know how to look through your accounts okay and build a budget go through our debt class so you know how to look at your debt what makes sense to pay off how to utilize good debt because i know you like debt including mortgages and then and then eventually take our investing class you get it all for free for being on the show you guys all get a bundle together for 15 off like over 10 000 people have changed their lives taking it but you get it for free so go through that and eventually put your kids through it as well oh that's probably a good idea Yeah, eventually.

1:07:29Get the money smart. Eventually. But in this account that you have, again, only$200 in here. We got more Amazon and Military Custom? Custom something. 66 bucks. You went into a gas station, got some bullshit, something corpse. Oh, that's the gas station. You have rocket money premium. And you don't budget. I'm not anti that. but you specifically told me you do not budget why do you have that i look at it like once every two weeks what's the point of looking you said you don't budget what are you talking about that sounds like budgeting potentially i was trying to budget i told you i'm trying oh you are just you do not know what i'm so fucking that was that was a step in the right direction i just didn't stick to it okay yeah and then what was yeah what was that military custom thing uh i don't that's Honestly, probably like new uniforms or something.

1:08:30The military uniform? Yeah. You have to pay for that yourself? Oh, absolutely. You get, so you get clothing allowance once a year, but you still got to go buy it. Maybe the Pentagon should pass their audit. And we'd know if there's money, so you don't have to do that. Synergy. Oh, that's a movie theater. stopping at the store near the base and stopping at the store near the base getting some bullshit going in getting a little shop stuff little num num or whatever you're doing I don't know what are you doing energy drinks okay go to a Costco they exist I do do that but it's so far away do do that more okay even the grocery store is still more effective price price effective to buy in bulk stopped at the store Jimmy John stopped at the store stop to the store get your energy drinks energy drinks and oculus payment come on i wanted a new game i get all these things i want you to be able to do these things it is not a magic world where you're entitled to do all these things what do you disagree no i don't i don't disagree i then what you like you try to justify it by saying where it went i get it i like to do those things to i want to do those things for them yeah you are not entitled to nor are they and that is hard to think about for a 10 and 12 year old so i get it but you are behind in retirement you have horrible debt you don't know how to have a conversation with your mom and you are taking care of two kids by yourself so i don't give a if you wanted to buy a game yeah you are financially I have a really, really, really hard times like saying no.

1:10:11And talk to a damn therapist. You get them for free, right? Yeah, it's like a long way to get in there. And I'm like, oh. Panda Express, great. And this account that has no money. You said you didn't do anything other than just pay for your mortgage and stuff. And every account we went through had a purchase of some kind. So again, just like when we first started this conversation, you're giving me incorrect information as we learn to find as we learn and find out generally you know that's we're not talking generally I am talking about your actual life yeah well that's I'll say like generally like this is what I use this account for sometimes I switch it up I'm like oh well this one's a little too low canka whatever you build the budget have everything in one account this makes no sense the way you're doing it the way you're doing it makes no sense.

1:11:02It is overcomplicating. It's giving you a false sense of security. Stop. Don't say anything. You need to budget. If you build the budget, you know where your money's going. You know where your money went. You know where you need to course correct. Okay. If you're budgeting, you only need one checking account. There is no need for this. You are simply trying to either shortcut it or find an extra sense of security that does not exists. This is not helping you. This is not benefiting you. Learn to budget instead, whether that's cash in envelopes, whether that's on a spreadsheet, whether that is using an app.

1:11:39I don't care. Budget. Yep. I will. For sure. Reminder with this, you have two kids, single mom. Great. You do not have even close to an adequate emergency fund and you have a mortgage. You are putting your entire family in a dangerous position, yet you are allowing yourself to have a micro dick Christmas. This is not how we parent. This is not how we adult. This is not how we act mature. This is not how we live life if we are trying to have any sense of security for our family. If it was just you, sure, you could live. I would criticize it, but you could live the risk if you wanted to. You are dependent.

1:12:19They are dependent on you. This is not acceptable. the amazon purchases the oculus game the different things not calling the bank even for minecraft that kind of stuff is no longer acceptable if we do not have an emergency fund it is dangerous your house goes into foreclosure you can't put food on the table you don't pay utilities it gets cut off this is what happens when emergencies happen and you cannot take care of it yeah i've never had emergency fund my entire life and i've never known anybody that has had one uh-huh because welcome to america and guess what everyone's financially oh lovely so again do not compare yourself to the average that is what you do it is obnoxious that means nothing okay it'd be funny to like gift the older one like a certification from course careers and accounting and then they'll just fix your finances that would be funny okay yeah the savings is nothing so i will sit you down with a financial advisor free session with the people over at Domain Money.

1:13:18They are who I use. It's one of the resources we have. Actually, everyone in the audience gets a free session, so it is actually something really beneficial. We negotiated that part for you guys. Trust me. But take advantage of it. Take advantage of everything we are gifting you here. You have an immense, immense level of financial immaturity for someone in their 30s. And it is scary. It is terrifying. It's putting you in a dangerous position that you don't even realize the full consequences yet. You don't feel the full consequences of not having a retirement fund until you retire. And that is one of the dangerous parts about retirement funds.

1:13:52Is because, and I was like this too before I just got informed on all this stuff. It's like, I didn't have retirement. I can catch up on retirement. That's what it is. No, it is time that you need early. And you don't realize you're not ready for retirement until it's time to retire. And then you're not there yet. You don't get to see the consequences along the way. And that's why you need to become informed on this stuff. And you need to start preparing yourself. because you're really putting them in a dangerous position. And that's the worst thing of all. So what hits our account on a monthly basis is$6 ,420.

1:14:24All right. Your minimum monthly debt payments. And unfortunately, this includes mom's card. I'm glad you're going to call her and at least figure that on the post show because you need to confront that hard reality. I want, well, if you allow me to, I'll participate. But either way, I'll at least let you deal with it. But minimum monthly payments. Actually, let's not include mortgage. Let's make that separate. Minimum fee payment,$1 ,768.58. She'll be anonymous, of course. Yeah. And your mortgage itself is$1 ,207.25. What's your water, your gas, your electric, internet, all that? Let's see. Water and trash are the same bill.

1:15:07So that's right around like$98 to$100 a month. $200. Okay. electricity usually varies between 80 and 120 i'll do 100 uh internet is 100 cell phone is 100 cell phones 100 yes it's not the worst i might look at doing helium for 15 bucks a month it's the same towers as t-mobile it's kind of like the the you know the mints and all those things where they use the same towers they just pay for access yeah i just um when i got back to america last year i got this and it's like on payment plan so as soon as i get this paid off. I hate that. Vroom, vroom, drive, drive, gas. How much? Monthly basis. Come on.

1:15:49Probably like$200 a month, honestly. Yeah, we had$251. I'm going to say$250. Okay. Car insurance?

1:15:58$120,$30,$40,$10, something like that. Are you kidding me? How do you not know anything? That's what I'm saying. Give me, in between what? It's probably around$120,$130. 130 let's be safe okay tp fund anything else for you and your kids needing to exist this could be things for school sports activities whatever makeup nails 200 toilet paper all that stuff groceries uh groceries i would probably say about like 450 a month um kid stuff would just be his sport yeah there's certain situations we know off camera so but because of that i can say confidently that you can do groceries for 500 okay 500 medical everything's usually military so you should be good there right but yeah is there anything extra no no no no no we had a gym i had a hundred dollars i don't know i have a gym what it was something on a gym that's gymnastics that's the sport oh okay you put you put that in the tp fund subscriptions none do you have any pets i have a cat yeah you do i saw the cat food Yes.

1:17:09Okay, you have a cat. How much for cat food on a monthly basis? Probably like$30 or$40. She only goes like one bag a month. I'm going to say$40. Do you have pet insurance? No. Can I get pet insurance? How old's the cat? About a year. Okay,$40 pet insurance. Get it. How are you going to afford a surgery if something bad happens? You're not, and it's irresponsible for you to have it. You won't have the money. You don't have money. You have$1 ,200 in an emergency fund. Shut the... You don't know the cost of things. You have no respect for the dollar. Okay. My gosh. get it don't be irresponsible get pet insurance all right okay if you have a pet and you can't afford to take care of it you don't get to have the pet okay anything else that needs to be in your budget that i do not have here oh not that i can think of honestly that's pretty much we should have space here let me see i have a feeling we just overspend on things like mini christmas dumb stuff uh you know flights also occasionally no gotta do no longer for the kids Nope.

1:18:06They're not my flights. They're for the kids so they can see parents. Oh, okay. How often do you need to do that? Because we should budget that, though. About four times a year. Oh, okay. That's fine. You take from TV Fund, you figure out what you need to do, you budget that. On a monthly basis, though.

1:18:24So$6 ,420 to survive. Wonderful. Very good. And we need$4 ,535.83 to survive on a monthly basis. There's no reason to be in debt. One. and two we could probably get out of it so to give you some encouragement along the way i'm going to give you 200 in the fun fund you have fun with the kids do as much as you want whether that be gifts going out to eat 200 but there you go so this gives us an extra 1 ,684 dollars and 17 cents on a monthly basis to uh to put start putting towards debt so the way we're going to do this you need to have a conversation with your mom but obviously blue cash is paid off month number one we have a thousand dollars left and we put that towards the we put that towards the navy federal which was the mom card and then you pay that off and you'll have six thousand hours left on that six thousand five hundred left on that card after that you pay that off in four months so we're five months in that card's paid off blue cash is paid off navy federal is paid off this is when we start attacking the platinum card as much as we can we also have some more money left on a monthly basis.

1:19:31We're our entire BS fund that we put towards the fund fund of$200. Now that is made back by no longer having the minimum payments on those two credit cards. So we're actually back to that$1 ,884 that you can start putting towards debt. So the car will be about$26 ,000 at that time. Divide that by$1 ,884. That should be paid off in about 14 months. and that one's a bit longer, but you have a strong income. What's your face? What emotion am I picking up? I'm so confused. Oh. Yeah. That's okay, though. Well, we'll go through this, and then I'll try to make it more simple, I guess. But at that time, we're 19 months in, or we're one and a half years-ish.

1:20:16Okay. Okay? That sounds... And then you start attacking the car, because it's ridiculous, and it's beyond stupid, and it's probably about$32 ,000. No, it's probably about$35 ,000. It might be$36 ,000 because honestly, it's all just going to be going towards interest at the beginning. But at that time, now, because we just paid off that massive credit card, we have an extra almost$1 ,000 we get to have extra. So we're going to have about$2 ,700 on a monthly basis to put towards this car. And that takes off a year. It takes a year. So two and a half years and we're bad debt free. You also have to do the property taxes before then.

1:20:53so you're going to prioritize that before the uh navy federal you're going to do it after the blue cash and that'll take about three months let's call it conservatively so it's going to take two years and three quarters and you're going to get a fully funded emergency fund let's call it three years and one quarter three years one quarter and you are at base level and you're 35 so it shows how behind you are but that's okay because you have a strong income actually pretty limited expenses relatively. You just have to actually prioritize it and funnel it to the correct sources. And of course, as your pay goes up, if you pick up another job, if anything happens like that, you are, and you're locked in on your mortgage, your mortgage payment is going to go up a little once you start putting the proper amount aside for property taxes on a monthly basis.

1:21:38But either way, as the income goes up, that will hopefully get sped up to more like a three-year process total if they're fully funded emergency fund. But after that, you start contributing about 25 % to your retirement and we should be able to play some catch up there. Usually we do about 20 % to retirement, but you're going to do 25 % because you're going to be starting quite delayed at about 35 % and only 20 % of what you need to actually be retired at that time. Okay. So. Sure. Yeah. Okay. That sounds like a good plan. Cool. So again, the way we're doing this is we're doing blue cash, property tax, Navy Federal with mom no longer spending on it, likely closing it before then the platinum card, then the car, then the fully funded emergency fund, and then 20 % to 25 % to retirement every year or every month if that makes it easier to you.

1:22:25Good? So that's the plan. And then you come on the financial audit follow-up channel throughout. And at that point, we're tracking your progress. We're answering any questions. We're keeping you motivated. You take advantage of the resources we provide you. And yet be smart. You overspend. So spending in a budget, zero out of 10. debt you don't have collections property tax we're not going to count that but that credit card is horrible not when your mom to rack that up is bad and then that car is absolutely ridiculous i'm not going to give you better than a two out of ten emergency fund you've started you're about one out of ten there because you're a tenth of the way there retirement again we are behind at about 20 of needed so two out of ten real estate you are there but you have a negative equity position you put yourself in a slightly risky position but at least you're in a position where You can gain equity once the market corrects at some point, which it traditionally does.

1:23:15It's going to be a four out of 10 there. So we will call your mom in the post show and we need to confront some major realities there and that's going to be huge. So make sure to join us there. But your hammer financial score is a two out of 10 and make sure to get all our education for 15 % off. I'll see you guys in the post show. Your mom is putting business expenses on your credit card and then the reimbursement is going to cash in her pocket. That blew my mind when I heard that. You're going to call her. Why do you need to use the new federal credit card? It's nice to have it because it is a nice card to have.

1:23:52You know, now it's at like seven grand and, you know, I'm making the minimum payments. You won't be able to spend on it anymore at all. To watch the Financial Audit post show, click the join button below. 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.

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