The Dumbest Couple I’ve Ever Met | Financial Audit

40:18I don't. Besides a few regions, mathematically, it is cheaper to rent right now. But cheaper to rent? Yes. Probably is. Yes. But you'd never own anything at the end. No. What do you mean at the end? Are you guys dying next year? I mean, look, we're paying into interest. Paying a monthly rent is paying to nothing. Everybody's going to, they're going to pocket whoever owns that. It's cheaper right now. on a monthly basis per square footage across most of the places right now in the country to rent than to buy because of where interest rates are and where property values have not fallen to the point where it offsets the interest rate hikes.

40:54It has not adapted because people are holding out of their properties. Inventories across the nation are not at the standard monthly allowances of how many homes are on the market. like how much is the what's your minimum monthly payment on this property 1500 a month you i know for a fact in your guys's area you could have gotten a two-bedroom for like 1200 a mortgage house no a rental for two years guys if you can in any way it just really comes back to if you can't afford it which you've admitted to not being able to afford it because you couldn't afford the minimum fee payments if you can't afford it you cannot afford it so it doesn't matter if it makes more sense financially having a mortgage eventually over the course of a long period of term which by the way none of your payments are going to pay off the principal right now anyway it's all going to interest so it's not like you're making any progress anyway get a mortgage later down the road we're planning to refinance it hopefully soon sooner than later what interest rate is it at well we have we're just planning to look into What interest rate are you at?

42:02The interest rate on the property is like 12%. Guys, mortgage rates are like at 8%. What are your credit scores? Well, it's owner-to-owner financing. Oh, that's right. That's right. And they swindled your lives.

42:22I'll be honest. I did not think this conversation was going to go this way headed into this. I'm almost impressed.

42:35um wow

42:40I'm happy with the house though oh fantastic great thrilled I couldn't be more happy for you it's cute oh great that's awesome why'd we do owner financing um at the moment when I when I purchased a property I was jumping from different jobs and then I I didn't have the job history in order to get a mortgage for the property. Or a building mortgage, that would be. How are we doing this refinancing? How are we getting this mortgage? You just give a down payment of$3 ,000. I know how that works. How are you guys doing it? Like, what are you planning to do? What job history? You haven't been in a place for two years, but you can prove two years of job history.

43:26But what about you? Are you guys going to be on it together? Are we doing dual? Okay, obviously our debt to income ratio is not fantastic. Have you guys gotten pre-qualified? No, we're almost at two years. What's your credit score? My credit score right now is at 630. What's your credit score? Last I checked, it was 695. Yeah, if you can qualify, you should get a better rate, maybe like 10%, 11%. Why are we trying to refinance? For the better rate? For a lower monthly payment and less years. What's the term for this guy? It's at 30 years right now. So you want to do like a 15-year mortgage? 15, 20.

44:06Why? It's a lot less years. Like if you make the math, 30 years, we're going to be paying a lot of money. Yeah, but also if you're just at a normal interest rate in general. Like, I mean, I'm assuming that, let's just say you even get at 8%. I assume if rates ever go to like 4 or 5, you're going to refinance to 4 or 5. Even if still, if you're doing that over the course of 30 years, put the money in the market and makes twice it on average so like where's the math working and we're just not math math ain't math okay so we took out the personal loan no late fees on this one

44:45it's a 21 percent 22 percent interest discover it who has to discover it who's not whose name is under it because i i have That's what I'm asking you guys. That would be Michael. This is mine. So we did not pay this one off? No. No, we haven't. At$10 ,656. That was to build the house. To finish the interior of the house. On a credit card? We don't got the money. To finish the interior. Okay, I'm a bit bad. She just said, what did you just say? what'd you just say cause we didn't have the money what does that mean can someone tell me what that means the frame house wasn't completely finished oh no no can you tell me what she just said means to say it again to charge the credit card no no no say your statement again that we didn't have the money what does that mean that means we couldn't afford it so what the f*** guys Well that's why we have the credit So we can buy the things we can't afford Who wanted to come on the show?

46:03She did Okay so do you know much about the show? I don't Okay Thank you because If you did watch the show and you said that I would have gotten the baseball bat from the other room Or the taser and I would have Stunned you And then beat you Whoa yeah we don't use credit cards for things we can't afford i mean this is overall bad finances 101 i mean you're using someone else's money and then you're paying it back with interest and minimum payments are stacking up but you will get a house out of it a livable house a livable house that you guys both admitted if you sold you're getting a loss on that's it we would sell it we're not gonna sell it we're gonna get a loss on it that's what you said yeah well you build a house for$38 ,000 but doesn't mean you're going to get$38 ,000 from it.

46:53Once fully finished. It's essentially a used thing if it's what I'm thinking. It's not like an actual house. Not from the full amount because that's besides the$38 ,000 a house cost. We still needed to put$10 ,000 into it. You couldn't afford it, guys. When you went and got the property, you can no longer afford your minimum monthly payments and then we went and got a credit card to finish up the home. You guys have just walked into an absolute just you have not you've just your finances guys okay sorry I'm just a bit taken back that's an interesting $10 ,656.11

47:36how'd she convince you to come on the show it was an argument really I didn't want to come in the show oh well thank you for being here I'll be easier on you because of that thank you he doesn't know the show much did he watch the onboarding video at least why do we send people that no I watched it why didn't you watch it girl did you not want him to know what he was signing up for no yeah he's seen snippets he's not absolutely oblivious she plays your show I play it in the kitchen and I'll have it and he's there you should have seen you're saying door dash a lot don't worry you're not gonna see that here no but what he's gonna see is McDonald's McDonald's McDonald's from my Riley credit card don't go easy on him he knows what he's doing but you're not afraid of death the way that I think no why?

48:39cause if you don't owe it you're never gonna have anything you gotta go into it why if you hesitate you're not gonna have anything see i agree with him to that like to that extent like that didn't just make sense yes you have to be if i was scared to buy a three acre property i would have never had it but okay you're talking about taking advantage of leverage is kind of what you're talking about like getting a mortgage on a property is kind of what you're talking about to get up to get ahead is that what you're saying no like you mean you have to go into a credit card debt to get ahead yeah no one's ever said to own it you don't think that you've watched the show you do not think that to a certain extent i kind of do no yes how how does that make sense you're losing value on it you never get anything if you don't go into debt at least a little bit like that's no we agree in that but so you both agree to be done no what are we so why can you not buy things I understand not being able to buy a house in cash I absolutely understand you don't go into credit card debt for a house though I mean you guys did somehow but most people well you're not supposed to we purchase the material to finish it I get that but you're talking about that you have to go into credit card debt to get ahead is that what I am being told right now to own it yes

50:04is this what you think the average home buyer does is the average person has debt has debt but you think they go into credit card debt for the house to finish a house what's the difference between that and a building mortgage so if you're talking about so you can do some kind of loans right you can do some kind of loans where there's a house that is valued at two hundred thousand dollars but it's really out of date so if it was completely up to date based on comps around it it could be worth 500 000 what did i say where it was worth 200 200 in its current condition could be worth 500 uh but if you put 100 000 hours of work into it meaning you spent 300 000 hours it would be worth that 500 000 hours so you get a mortgage of that three or you could get a essentially a mortgage of that 300 000 some of it would be a renovation loan but it would be all put up into the mortgage after it's done meaning that you owed that 300 000 hours on now what it's worth and appraised at a 500 000 house okay you put this on a credit card that is different what's the difference those are usually assessed at just normal mortgage rates say eight percent right now this card in credit cards are usually buddy some of this is a zero percent that's going to end in a couple months some of it It's at 30%.

51:32And in a couple months, it's going to be at 30%. 30 % versus 8%. There is a gap there. People do not have to go into 30 % debt to get ahead. In fact, it is not going to get you ahead. Why? Because most of any investment, real estate, it's going to go up 4 % a year on average. Say you collect rent. Say you even get the best cash flowing property. Maybe 12 % cash on cash return. Include the increase in mortgage. Let's say you're getting the best 16 % a year. still that's half the interest rate that's on here so you're not getting ahead you're getting the bank ahead you're not helping yourself there is good leverage there is good leverage and what is good leverage things that you can easily afford in your minimum monthly payments things that have 20 down payment on like a mortgage things that have low rates that you can you're beating that interest rate in other investment opportunities you're not beating this in other investment opportunities 30 name me an investment that on average gets you higher than 30 percent none okay so no your logic is completely flawed guys no one to my knowledge to my knowledge maybe i'm just dumb call me out but no one to my knowledge has ever said you need to go into credit card debt to get ahead i've never heard that once in my life not once well and i've read a lot of the finance books once the house is finished the the value of the house goes up along with it you haven't even talked about you said you said you said you would sell it for lower no that's when when you have to sell it after you paid it off but you can get a loan out of it oh that's even worse because then you're over leveraging yourself then you're getting a loan that's higher than what you could sell it for you get a property in a house mortgage after because the house is already there you go you go refinance but if you sell the house you're still you would still lose on the house no the house stays there but if you sold it you would still lose on it yes okay that's also not an investment because you just lost money guys what are we doing what are we talking about i understand what you're talking about in getting a collective mortgage on the loan on the property in the house itself but if we're putting money at 30 which you're already losing 30 on this in a couple months so there's that plus you're also losing value it's only worth what you're able to sell it for it and if you're selling the house at a loss like then let's add another 10 on this this may as well be 40 interest like you're making other people money right now in reminder just a reminder we couldn't afford this in the first place because we had to consolidate our debts in order to get a minimum payment in a better place that we could afford but in reality we also made it worse for ourselves long term because we put it in an interest rate you guys are so newly married and you've gotten yourself into a situation that's beyond more dangerous than you could ever know where did we learn that you need to get credit card debt to get ahead i need to know this because you both agree on this i just thought that's the path forward where did you learn that from though just i just saw the path i saw that's how to i could to acquire things i saw that i could pull it off like that if i couldn't get a mortgage to build a house i decided to use my credit cards to build the house where did you hear from i didn't just things just things i've seen or like experiences like what so like if um i mean no one in specific just living great example um so basically um i kind of came to that conclusion because if you need something expensive it's very hard to just have that money laying around to go and buy it something you need like a house or something okay you got it sure yeah use 30 credit card we're talking about an 8 mortgage so the problem is because it's on a credit card not because it's the actual house yeah i don't i don't there's not many even dave ramsey is the most anti-debt persons like get a 15-year mortgage you know like he's even talking about it he talks about paying it off early which makes absolutely no sense but that's okay i took it as just debt in general i i didn't think it mattered like where what other expensive things just anything even if you even scale it down even if you scale it down okay piece of jewelry a new macbook computer or a new computer that's okay that was on the best buy yeah that's okay um that's okay because we didn't pay it off you didn't pay it I did.

56:22The Best Buy. You haven't gotten to the Best Buy. That's one of the three cards that she paid off. Did you pay it off or did you use the personal loan? No, I paid it off with my money. What money? We haven't talked about this. Some other savings. It's just income. There was more savings. Our finances are obviously mixed up. Well, this is such a mess. Okay. So we have a little bit of interest on this and there's going to be a lot of interest on this. In fact, let me give you just an estimate because you're only putting the minimum payment towards it. So it's not like you're doing really anything extra.

56:58Let's say in a couple of months, actually, it'll be about$10 ,000 on this. In that yearly basis, you'll be paying$3 ,000 in interest a year on this card. You're losing$3 ,000. Okay. Who has the city simplicity? That one should be also mine. I paid that one off. that's credit card number two that I paid off of the three. So you paid off the 5 ,909 with a personal loan or a savings? Personal. Then you didn't pay it off. You transferred it to another debt. And what's interesting about this, you took another 0 % interest one. No, no, no. At least the other ones had. No. The other cards that you could have transferred had interest.

57:45No, not with the personal loan. No, it was with the wedding gifts. how much wedding gifts did you get it's quite a bit and how much six thousand six thousand maybe this was six thousand and you said you paid off something else with the wedding gift so math isn't mathing once more no no but i was still working i mean i'm working i put a little bit of money on you're telling me this is paid off right now right this is a zero zero chop up your cards you guys cannot do it you see that's what i told him but he gave it to his dad you said you yeah pull this you told noah two hours ago that this is not paid off i don't know if the mic could hear him two hours ago on the phone i might be confusing with oh that's what i told you no it's this one sorry wrong card oh the one with a much smaller bounce rewind are you saying so this one still has a bounce yes that's why i didn't say anything because i didn't know it was paid off when do you guys think that this uh ends when you guys think the intro rate ends on this that one maybe by august i i think that one's mine yeah when do you think it ends by August you think I say by August okay when do you think it ends I don't know anything about it yeah it ended three weeks ago two to three weeks ago oh that's the one you mentioned in the beginning guys this is

59:06$59 minimum payment how are we gonna survive guys you know this is we're headed straight to bankruptcy at this point like you guys can't even like answer questions you don't even know what we've paid off you think going into credit card debt is the only way to get ahead uh what's the interest rate on that one what do we think it's at guys what do we think 27 i don't know anything about it 29.99

59:35yes i paid that one the home depot the smaller one yes with the wedding gifts yes do we have any of the money from the wedding gifts anymore no you said you're saving zero zero so i'm glad i at least went to paint off that we can let's celebrate that out of this insanity that's what i'm saying okay don't get too excited capital one savior one paid off okay so the small balances yes okay um from but there were purchases here anyway there was three hundred dollars of amazon there and two hundred sixteen dollars of amazon there what did we get uh there were things for the wedding from amazon but your mom said guys no no no these things i was responsible for like the lights table covers there were some things we we he he did cover but but it's paid off i just want to do an example i'm just trying to think i'm just trying to think because do you guys have anything in investing stock market or anything i have my work one but it's just no i bought some shiba

1:00:46i'm just trying to think because of the money that you guys if you were going to this marriage debt free and you're able to take those wedding gifts and put it in like i don't know i'm trying to think like my favorite investing platform is muumu it's what i personally use if you did that and you were able to just put it in there and start the marriage off with that, it would be, it would just be growing, guys. It would just be growing. But instead, it had to go to pay. It's okay. And then you got some low stuff and dollar general stuff as well. The interest rate of this one was over 30%, guys.

1:01:28That's me. What is it? It's 30 loans. So you went to school? I did. would you graduate i'm currently still you're in school currently what are you studying social work okay the income's actually doing better in that field these days than it has historically you might need a master's though right i'm on my master's oh okay you're in your master's yeah what has this been a conversation of he doesn't want you to do that no we just had a conversation on whether i wanted to actually get a career in it or not do you want to get a career in it or not it's been a huge question um but you're doing your masters and you don't even know how are you paying for your masters are you taking out debt this is the current debt are you taking out more besides this that should be it if anything maybe it's another five but other just another five okay guys that's it just add it to the pile yeah so we don't we probably don't know what the interest rate is yet but it's probably actually probably not great right now the minimum payment you'll probably get on like a public student are you gonna do public i don't know i don't know but there's no minimum payment right now so it doesn't matter on one of the discover cards by the way that we went through water burger amazon amazon amazon 129 there 21 on another amazon 64 on another amazon and water burger yes can i see the amazon account that's being purchased can you see the purchase history i can bring it up if you really want um do you have your phone on you yeah i have it on me okay yeah yeah yeah that's not gonna be fun so you said you paid off the bike as well the personal loan bike with the personal loan with a personal what was the minimum payment on the bike what was due on it it was 227 a month what was what was the total balance it was due$7 ,000.

1:03:28$7 ,000? Yes, that's what it was due. What was the interest rate? The interest rate on it was at 7%. It's not great, but what am I going to say? I know, yeah. What? We traded it. For 22%. Okay. But it helped us monthly save money. Waterslide? You guys have a kid? No. No. Who's going down a waterslide, guys? a water slide he I'm trying to make a side hustle with it gas kicked out what what renting the water slide it actually goes hard where we live how much was the water slide $1 ,600 a month I'm sorry$1 ,600 a month you scared me because I was about to say I didn't know that I was in the house mentality right now have we learned guys it's gonna work sure it's gonna work if he knows how to absolutely if he knows how to f***ing market it if he's able to take time away and take it to different places and do all this

1:04:37okay it got delivered towards the beginning of this month how many have you rented I haven't rented it at all oh interesting who would have thought okay well it's cause he's not advertising it correctly oh yeah here we go here we go come on that's so dumb guys and then some cooktop what are we cooktopping it's to replace my mom's cooktop she don't make money no that's just for the house for whose house my mom's house did she not make money I ordered it they actually pay for it I just ordered it to my Amazon you have a point TV dresser matching bed stands all mount PC fans Who has a PC? I do Okay What do you play?

1:05:25Recently Last month I played Hill Divers 2 Nice It was very fun Some dresses And stuff Dresses? I No A dress Those dresses were for the Wedding My mom's Wedding dress What was she used for her? Not hers So you still have the bike Alright Yeah I still have it Have you ever checked what it's worth? The used market value is like at$9 ,000,$10 ,000. You could change your whole family if you're willing to like literally be a man for a second. Okay. If I were to sell it, I would just buy another one. I might as well just keep it. It's already paid off. Why would you buy another one right now? It's not paid off.

1:06:07You transfer the debt. Okay. But if I were to sell it a couple years or months, I will buy another one. A couple years, sure. We might be out of debt. We might have a fully funded emergency fund. We might have caught up in retirement. If we can do that, yeah. I don't miss out on a weekend ride. I don't give a shit about your weekend drive. You have so much debt, you shouldn't be doing weekends and drives. You should be working. You should be working. You should be working. My money requires me to be there from Monday to Friday. Yeah, you're getting another job. You're getting another job. Guys, you can't afford your bills.

1:06:33We're getting another job. Let me gift you a certification through course careers. Get just a sales job at home, a tech sales job. Do anything. Do anything. How do you even suggest that you have weekends with the financial state we're in? Guys, do we not even care? Do you want kids? Are we having kids? We want kids. We want kids. Not like this. I do admit we have to fix some financials before we decide to make some kids. Do you have any other motorcycles, things like that? Is this an only child of a bike? I have a dirt bike and a four-wheeler. A dirt bike and a four-wheeler. Yes. How much are they worth?

1:07:11Together, you can bring out like$3 ,000. They are used. Yeah. I had it for years. Okay. Anything else? Any other vehicles? I have three vehicles for like, they're under my name, three vehicles. Are they there at the house? One of them is. Where are the other two? One of them is in my parents' garage. Why? The other one my dad uses. I don't try to use it as much. Okay, the one that's in your - Take care of it. The one that's in your parents' garage, how much is that worth? That one's$12 ,000. How much is that ever used? I used it to come here Rarely used Just for travels And maybe That's his baby What about the other one?

1:07:58The other vehicle The one that's at our house? Yeah Is that your daily driver? That was my daily driver I call that a work truck Okay That's fine Well how much is that worth? That was like$4 ,000 Oh my I haven't even gotten a checking account This is a long episode It's okay It's okay It's okay guys If you're a daily driver sell the bulls**t what do we get? wow you can pay off the personal loan you can pay off the personal loan and you can pay off half the Wells Fargo card just by getting rid of your bulls**t your fun things your little toys your little Hot Wheels guys that f**k changes your life and you're literally not willing to?

1:08:35what's the point? if I were to decide how are you guys gonna like even be okay? in a few years when you can afford it or just be a f**k adult I have it already I have a title on there guys what is not coming through here? No, I understand. I just don't see the logic of buying it again later on. Guys, guys, guys. Okay, let me explain. Let me have a little explanation. Those cars are not going up 12 % or they're not going up 22 % a year in value. You have debt that is going, that is taking 22 % from you a year. Okay? Take that debt. Take your your little toys pay off the debt boom that's gone and all of a sudden you just saved yourself 22 on that money then you're like okay but i'm gonna go get another one yeah go get another one when you can afford it when can you afford it when all your bad debt is gone and when you have a fully funded emergency guys you don't have a fully funded emergency fund what happens if an emergency happens no one has no one's even able to answer that question i tell her not to spend the savings on it's not about spending savings come on you can pay off the biggest debt right now that's come on about the whole emergency thing the emergency fund his solution is to use credit cards that's what credit cards are for that's not what credit cards are for that's what i told him because you're in an emergency yeah you know so you need a large amount we're gonna get it via an emergency fund we don't we don't have one no because you have all the toys in the world that you're not willing to get rid of because you're not willing to sacrifice you're never going to get anything good you're never gonna actually get financial stability without any sacrifice.

1:10:14Good.

1:10:17Guys, it's literally just growing up. You're basically the same age as me, dude. Be an adult. You're 10 years into it. This is sad, infuriating, disappointing.

1:10:34I'm going to be candid. It's scary for the marriage. She might want to get out of debt. She might want to do all these things. The fact that you're not willing to make a simple sacrifice is very telling and selfish. Rally. Credit union. $31 available. Wingstop. Wingstop. Jack in the box. McDonald's. Raising gains. Asian Bistro. Nike. Going inside and getting some bulls**t. What is the Sunrise Canteen Military? $3. Probably going inside and getting some bulls**t. Getting some drive-thru. $5. $6. Golden Chick. McDonald's, Dutch Bros, Church's Chicken LTO Meatmark Dutch Bros Wingstop, Wingstop, another drive-thru $5.

1:11:21Drive-thru $17 Guys, what are we doing? We have 22 % debt, we literally couldn't afford our minimum monthly payments, and we're going to Wingstop every second of our life What is actually happening? What is actually happening? That is unacceptable beyond belief I portion a part of my paycheck to that card for food. You can't afford it. It's just a portion of it. Yes! It's a portion you cannot afford! It's a portion you cannot afford! And we just leave the rest for the bills. Oh my!

1:12:00I don't... I don't... You're the one that wanted to come on. I do not know what to do. I don't know what to do. if if we're at the point if we're at the if we're at the point where you literally think going out to eat is even somewhat okay in this financial situation I don't even know what we can talk about at this point after the marriage I've cut down cutting down doesn't matter buddy being an adult make a sacrifice for your marriage good I don't know what to do Is this the current balance in the savings? No, you said$0, so obviously that's gone Right? Um Yeah, that's gone We use it to pay it off a credit card Right $247 in the checking account But we think we can go out to eat when we have$247 Oh good, we're getting burgers Well, wing rings This is cutting back the spot $52.

1:13:07Cash having out$5. Starbucks. Starbucks. We think we're getting Starbucks when we can't afford to live. Have minimum payments when we can't afford. McDonald's. Amazon. Amazon. Amazon. Amazon. Amazon. Cash having out$400. Where the f*** did that go? Good question. Where did those$400 go to? Noah said he got me a gift that he's going to give me in the post show for all those who subscribe to that. maybe that he says it'll make me feel better i hope so because i'm gonna this feels like someone gave me a gift like on my table oh mcdonald's restaurant goodbundle.com goodbundle.com that's video games isn't it no it's an installment thing for bills no the good bundles it's for the light bill it's like a small description to get a um a cheaper plan rate for the electricity for the house and it's just ten dollars isn't it twice ten dollars twice oh um the other house is my parents house why are you paying for the dude you can't afford life how are you when do you want to have kids this does not happen unless you're bringing them into a really bad situation well i see i see a path forward where because i don't see it like i said once we refinance the house and property that is not that stabilize ourselves how how is that the answer i will bring down the monthly payment you think that is the thing that is killing you after all of this i didn't even put that in your debt yet and you think that is it you think that's what's holding you guys back well you bring down the monthly payment that leaves more money for the card itself buddy not with your spending you spend more money than you guys make i've cut down since we got married but i'm not spending as much as i am this is cut down then I don't want to f*** you what was happening before.

1:14:58Because this is after you guys got married. And don't worry, there's more. McDonald's, cash app and out$10. Amazon, music, Amazon. Cash app and out$12. This is cutting down. This is a f***ing joke. Spent$453 going out to eat. That's cutting down? Good job, guys. 453. How much is your phone bill? It's like 3 % of your spending. 4 %? 5? 185. Guys, we own on our phones, don't we? Yeah. When you're done with that, switch to helium. It's 20 bucks a month. You get the same f***ing towers you guys get. Come on. We got to save money. Y 'all got to use my favorite high yield savings account where you can get up to 4.6 % on your money plus FDIC insurance up to$2 million.

1:15:44You can also get up to$300 for signing up today. It's the personal high yield savings account that I use for my money. So don't let your money be losing money while it's just sitting there. Click the link in the description below and get those bonuses. Do you guys even know where your individual debts went? Sorry, where the personal loan went? Yeah. Tell me. $13 ,000 for the house. That we still owed. Huh? That we still owed to the house. We owed$13 ,000. Yeah, the rest. The balance. So$13 ,000 went to the house. $3 ,000 went to the motorcycle. The rest went to my Wells Fargo credit card. I had $5 ,000 in my savings and I bundled it with the$3 ,000 to pay off the motorcycle.

1:16:26To get rid of that payment. Besides the motorcycle, they were all, if I'm not mistaken, at zero percentages. We've now exchanged them for 22 percentages. Which, believe it or not, is a bigger number. The monthly payment was kind of killing us. I get the monthly payments. It's because you got things you couldn't afford. So that's when we would have made sacrifices. And we would have worked more. And we would have tried to pay them off so I was the biggest. You guys went the easy route, which isn't even easy because you made yourself really, in the end, a worse financial spot. how much what's the what's what's owed on the property is it under both your names yes no it's just under mine oh the property yeah yeah no no how much what's owed to the seller to the owner seller financing more than likely uh 100 115 000 115 yeah because then and what's the payment payment the payment doesn't go into the principal um what's the minimum fee payment like uh 1500 a month what and it was at 12 right yes okay is there any loans out other than the credit cards is there like a separate loan i don't see out for the building no okay thank you oh thank you if you sold the building what could you even get for it uh as of right now yeah we can get $44 ,000 for it.

1:17:44You have to add what we finished from the inside from the Discover card. So it's $36 ,000 plus the$10 ,000. And 13 % went to 0 % financing from your contractor, right? $13 ,000, right? Yes. For personal loan? Correct. Well, because you switched that from the personal loan, in the end if you paid over the same period of time that you were going to pay over the three years, the contractor, you literally just charge yourself an extra$3 ,000. And you can see that example here and how that interest works. Now, I know you saved$1 ,500 by paying them off early, right? Wasn't that the reason why? That's how much we saved, yes.

1:18:26Yeah, but you didn't save anything because you cost yourself. If you paid off in the same period of time,$3 ,000. So you saved$1 ,500, but you also added an additional$3 ,000. Did we think about this? We thought we had. The thought process behind this was to combine the... Consolidate. Consolidate some parts. I want to give you some kudos. You were right. Wealthy people use debt to get wealthy. A lot of wealthy people do. You guys are not doing it like wealthy people. You guys are using debt in the worst ways possible. you're exchanging everything for interest rates that are beyond unaffordable for you and are you and things that aren't even going up in value other than the property itself but the house on it is goes down the way you got it guys you are not debt people you do not know how to use debt before you ever go into debt again you need to close your accounts before you ever go into debt again you need to read as many books as possible and how to actually utilize debt on how to do you need to become learned real quick because whatever life experience you use to go into this has gotten you into one of the worst financial positions i've ever seen this is crazy and i don't even know what to say because you're not willing to make sacrifices by cutting down food more than you already have you're not willing to make sacrifices by paying off the debt you don't even know what your financial situation was you your your solution of the finances we're exchanging everything into a 22 percent interest from zero percent so like i don't even know what to do here do i budget the i mean the producer is gonna agree when i don't make someone a budget so i'll make you a budget but like i don't think that's even the issue you're just not willing to sacrifice guys we're just we're literally not willing to do you could pay off the bad debt today by getting rid of some poise some star wars gi joes essentially of the adulthood.

1:20:25Be a f***ing man. So the total income again is$4 ,500 a month. So the mortgage is$1 ,500. Utilities, what does that cost on a monthly basis? That's not a lot. About$100. No,$200 with water and electricity and Wi-Fi. Do you have any kind of insurance on this house? No. Why? That's risky. I know you don't need to I haven't gone to get insurance for it You guys are beyond Tornado Alley But it doesn't mean like hail won't happen I was thinking of getting the insurance After we refinanced the house and property Because we have to In order to get it Phone bill, what was that again? That's fucking insane Do we have any car payments now?

1:21:17Thank your student loans aren't accruing interest or having minimum monthly payments right now because of your situation of being in school debt minimum monthly payments outside of the mortgage where to put that in its own category $1 ,010 a month

1:21:40gas, driving how much do we spend on a monthly basis? $50 a week for both? oh no, that's just me okay what about you i spend like 120 a week i guess for both vehicles uh when i do use the other one actually let's say 180 180 over a month a month 180 a month hold on that is drastically different than 120 a week what is it give me a real number it's 180 a month okay okay and then 80 for you so 260 car insurances total across the board if we want to find another thing that we could have cut by the way before going and consolidating debt so and for our vehicles by the way you spent 330 on gas last month so that's what i'm changing it to how much 3.30.

1:22:36Together? Together. Oh. Okay, so car insurance is across the board. This is 180 for the three vehicles. 180 for you? For the three vehicles. That's her vehicle included. You added me? Yes, I added her car. Oh, okay. Yeah, I have car insurance. 180. Do 180 plus 50 for her car. Plus 50? Yes. Okay, so 230. 30. Oh, groceries guys. You can do$500 a month meal prepping, follow the meal plan in the budgeting program that we're going to give you guys. Take the budgeting program, take the investing program as well that we just came out with. You guys need to take it. You're not there yet, but you can at least learn the value of money when it grows by taking that.

1:23:22So go through the classes together, actually learn. You'll understand the value of the money that's actually growing when you take that and you'll learn just how bad this debt is. Okay. TP fun. Anything else you need to survive in life? $150. Medical healthcare. Anything? Gym. She has gym. How much? Like 12. Medical healthcare? Minimum monthly payments? Anything? I don't have any. Does medications count? Yeah. How much? $113 a month. Ask what? It's expensive. It's not even medication. It's for my gut. No. Okay. You got them nasty poops? No. I got them nasty poops. I don't have any. That's the problem.

1:24:11Oh. Can we trade? No. My stomach hurts. Mine does too. Okay. It just gets nasty at the end of it. 125.

1:24:29anything else you guys need to survive in life that's not in this budget that i have not mentioned no any pets no pets well yeah i do have a cat yes and he does feed him he just came to the house he was from the he was just okay how much 50 bucks a month not less maybe like 20 a month oh we got dogs too they're not ours they're not ours do you pay money? no they're the neighbor dogs keep on bothering the cat believe it or not they come for the food believe it or not but if you actually follow my budget which nothing in this conversation indicates you will because we are not aligned to be very clear we're not even close to aligned you actually are under what you bring in on a monthly basis gives you an extra$225 $255 a month I told you you did i did but this let's not even do the mortgage even though it's at a bad rate like a really bad rate let's not even throw that in because usually we don't throw in mortgages i just want to give you an example of how things are going to look without making the sacrifice that you guys need to make let's not include the student loans either so that's just an extra thing i'd love to walk out with a plan guys but this is like i don't know this really the worst you've seen are you just being exaggerated um in terms of messiest and just confusion and like understanding yes it is absolutely 166 months is what it takes to pay off all the debt besides the mortgage and the student loans 166 months how many years is that oh it's only 14 years that's it 114 years in your current situation without you selling your sell your but you know what the mortgage is terrible it's a 12 % student loans are not going to be at a great percent most likely in your situation I'm guessing so let's throw those things on there let's pay off those as well guys that takes 749 months 749 months how many years is that oh we're paying off debt for the next 62 years of our life so that's what's currently happening that's what our financial situation so i'm done like i'm gonna be honest i have to stick around for the post show that's okay there's a gift but like i don't know you know the answer i've said the answer a million times go get more jobs to make more money sell your shit rid of the bad debt immediately be a adult actually sacrifice follow the budget you actually do have real estate you got a little dumb with it so the score is not going to be good i'm getting a three out of ten retirement you're contributing for your 401k and you said you have something little but i bet it's nothing never mind okay just just you it doesn't start till till june one out of ten great emergency fund there's nothing zero out of ten debt it's ridiculous beyond belief it's stupid but you don't have any collections or irs debt so one out of ten Spending your budget, your spending was stupid.

1:27:29Wasn't the worst I've ever seen, but it is absolutely dumb for your situation. 3 out of 10. Hammer financial score.

1:27:371.5 out of 10. Make sure to check out all the resources linked in the description below. They're what I use. They're what I would use in specific situations, including the best investing class you can get anywhere online. Now stick around for the post show. Today on the financial audit post show. I did get you this gift and I really put a lot of thought into this. Claire, can you go ahead and present Caleb? I was going to get it framed. Let's put it at the entrance. But everyone has to say good morning to Dave and good night to Dave. I like that, like Ted Lasso. To watch the Financial Audit post show, click the join button below.