Karen Wife Faces Financial Infidelity | Financial Audit
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- To watch episodes of Financial Audit a week earlier, check us out on YouTube. - We have nothing to say that we wanna move into a different country with a completely different life. - Just 'cause I feel like it at the moment, I guess. - That's like a child, right? Is it not? - That's what it is. - I guess you've been on the same financial page. - The one loan that he took out without letting me know. - Why? Why'd you take it out without her knowing? She's your wife. - I thought it was money that he got from his side job. - Oh no, oh . - Hello, my name is Valerie. I'm 48 years old.

Hey, hello. My name is John, 46 years. I live in Cypress, Houston, Texas. And this is Financial Audit. Welcome over to Awesome, guys. Thanks for coming. So, Couples Audit. I haven't had one in a while. I'm very excited to get into this. Also, very excited about... Listen to this thump.

This is some dense paper. This is a lot. So this is going to be interesting to go through. Let's establish a baseline. What do we do for a living? I am an apartment manager and I also do the accounting in my company for 15 properties. Okay, very cool. And what do you make? You're about around $60,000.

- Okay, very good. - And bonuses, that's why it's around 60,000. - Cool, and we might do some translation and stuff here. So, however you guys wanna go about that, you just like lead me down that road, but what do you do for a living? - Technician in AC. - Technician for air conditioning? - Technician in AC for more than 20 years. - And how much do you make? - Around 40,000. - 40,000, probably. - Okay, cool. - Yeah. - So we are a 100,000-hour household.

And I don't know if you need to know, but on the side, he does his AC work because in the daytime, he's a maintenance technician for apartments. Is that a different salary? There's no set salary on his side jobs because sometimes he'll make nothing.

And then sometimes he'll make a couple of thousand. It's not included in that. And there's no consistency in terms of averages. Nope. Okay. Okay. Well, we can consider that towards the end when we do the budget. So what's going on? What's going on? We're living on a hundred thousand dollars a year.

Houston, Texas area. What's going on? I have a lot of debt, a lot of credit cards, student loan, mine. That's a chunky student loan. Yes, I have three degrees. I have a master's, a bachelor's, and associates. In what? The associates is in computer and electrical engineering. The bachelor's is in engineering.

Business Technology and Accounting and the Master's in Business Management and Accounting. Okay. And is this what you wanted to do? Yeah, and that's the part that I enjoy doing in my job more than the apartment manager part, the accounting part for the rest of the properties.

That's why they gave me that chunk. - Accounting's a great career path. I mean, I give certifications to course careers for accounting to guests all the time that come on here. - The only reason I don't focus on it is because I've noticed that when I try to do it, the starting wage is, I can make more doing other stuff. - Well, sure. I mean, yeah. - So that's why.

In our mid-40s, mid to upper 40s, heading into our 50s soon, why are we in so much debt? I mean, you're making above the median household income in the Houston, Texas area. What are we doing? Why is this so thick? Why is this so thick? The credit cards and the things that we have to buy. That you have to buy? That we decided on buying, I guess would be a better answer. Over the course of when?

since the last maybe eight years since

Since we got together. Oh, we got together years ago? About, yeah. Okay. Are there any kids? Together, no, but he has two that live in Chile. My country. And then I have two, but only one, my 13-year-old lives with me and my daughter that's 29. She just... Okay, so one kid in the house. One kid in the house. Only one, nah. The other one is coming tomorrow. She's moving from California to Houston tomorrow. The 29th? Mm-hmm. With two children.

Okay, why is she moving in? Financial issues in California and getting away from a bad situation. Bad situation, definitely get the financial issues. Is that going to help? Because I don't think you guys are in a good financial position. No, she has saved money and she can get a job. Like she's not depending on me coming here at all.

- At all. - Is she moving in? - No, she's gonna be moving into an apartment. - Oh, so it's a temporary, she's like stopping by. - Stopping by until, yeah, until the moving truck gets to her place, which will be a few days. - Okay. So in general, let's see what hit the account.

We had total payroll in, for you, I think, 6,038. Then you had Zellen, I think, with the part-time jobs and everything, 5,581. So that's across the board, the payrolls and the Zells. Are all the Zells through work or are there anything else? I want to make sure we're establishing what is normal. The Zells are his side jobs. Okay, so that is actual income. Yes. Are you setting money aside for taxes? No, we do not.

Why? Usually by the end of the year, after all the deductions, we don't normally owe. The only reason we owed this last year is because of the medical, because we did something we weren't supposed to. We...

We applied for the Texas medical stuff. And I gave him a hundred thousand dollars a year. Yeah. Yeah. I gave him a smaller income because we were making a smaller income in the beginning. I just never went to go change it. And then I kept using the service. And then when I filed, obviously they saw our end income and then that's why we owe. But normally we do not owe. Okay. That's the only reason. Like if I,

knew that we it's still safe to at least put a little bit aside well that's why i want a savings account but that's why you don't have a savings account do we have retirement do we have anything by no no nothing nothing that's why i'm i'm like frustrated what's our what's our plan for retirement you guys aren't terribly far off i know and that's why we want to start saving but our plan is to move to chile because it's way more like uh you want to move to chile yeah okay how much do you guys need in an

In your nest egg to move the chili.

Give me a yearly income that you guys want to live on in Chile. Probably for living in Chile, you need $1,500 for months. It's really good. Like a median $1,500, but I'd be happier with more as a monthly income over there. But to like move over there, we would need to save like $25,000 or $30,000 so that we can get a property. Oh, but you need more than that. You need supplemental income. Yeah. Are you working there? Yeah.

According to what he says, that I can get a job very easily because I'm bilingual. I mean, probably, but she's not going to make as much. I mean, if the median of what you need to survive is $1,500, the median pay is going to be associated with the median cost of living. We're also counting on Social Security, I guess. So, yeah, those eyes. Okay. Yeah, that's what we're counting on. We're counting on a lot of accounting and also $174,000 in debt. Yeah.

That's why we need help. Oh, okay. Okay. So, I mean, that seems to be everyone's immediate statement when they get called out or anything. And that's why I need help. Like, I can't. Yeah. Well, I mean, I know that our problem is that we over shop and we like top technology and all that stuff. That's why our credit cards. You've got to stop doing all that bad for you. Well, that's why I need help. Okay. Like, come on. Okay. Okay.

$11,500 came in. A little less comes in on average. That's what came in through the side jobs because it was an okay month for side jobs, looks like. How much do you think went out? What was spent? Across everything, on all debts, on everything. What was spent? What do we think? What do you think was spent? Where I have all the statements. Probably the whole amount because I ended up having nothing in my account. Number, how much? The same.

The same that came in? Yeah. Exactly the same. So we think 11,000 came in, 11,000 out? Yeah. Okay, 13,000. We spent 13,000? Spent 13,000. Okay, that makes sense. We don't budget. No, I don't budget.

Are you guys even on the same financial page? No, well, what I do is... We both want to go to Chile, so we have that goal together. But do we have... Do we even know what's happening in the house financially? He does not. It's been together almost a decade. No, I know. He doesn't do anything of the finances. He doesn't look at it. Why? He just gives me the money and I make sure that all the bills are paid and everything is paid, the rent's paid. Yeah, but that's not enough. That's the basic minimum requirements for life. We're not getting anywhere.

Okay, that's what I do. So is you being the person taking care of bills, is that what's helping us? Is that what's, what do you mean? Is that what's helping us? No, it's not. I mean, right now it's, it's because I, after I pay the bills and everything, if there's a little bit left, we go out to eat or we go and buy something. So that's, that's what I know our faults are. Why aren't you involved in the finances? And we can translate it, but why are you not? Well,

Why? Why? The reason is a lot of money. Why don't you help me with like, put together and pay the things? Oh, the reason is for my money? Okay, sorry. My money, whatever money in Mayacon, Vivian is, I mean... Yes, but why do you let that happen? That's his question. I don't know. He doesn't know why he allows it to happen. He's just trying to explain to you that every time... Why are you okay with it?

Why don't you want him to be involved in the finances? Oh, I don't allow him. Well, not that I don't allow him, but every time he gets his check, there's the Bank of America account. That's the one that we are combined, and that's where his direct deposit goes. And every time, when he gets his direct deposit from work, if I do not remove that money right away,

It disappears within two days. And when I ask him, what did you spend it on? He doesn't know. How do you not know? He doesn't remember or he doesn't know. Oh, but that's a lie. You can't not remember two days. Yeah, I mean, I could obviously see what's on the account. So where does it go? It sometimes goes to...

Either he sends it to his kids or he gets gasoline or he buys parts for his side jobs and then things like that. Chile. Chile is the plan. How the f*** do we get to Chile? How do we do any of this if we're not on the same page financially understanding where our goals are and what's required to hit to our goals by a certain time period? Okay. Yeah. That's... So there's no plan. There is no plan. If you know that, why haven't you done anything about it?

This is my first step in doing something about it. That's not an answer. Again, just like the I need help thing. That's not an answer. Why have you not done anything about it was the question. Not what are you doing right here this one second. Well, I told you that we enjoy doing like going out and going places. And like the last month alone, we went on two trips. Well, I went on two trips. He went with one of them. So your reason why is because you want to experience pleasure now instead of deferred gratification in the future.

That could be a real, yeah, I guess so. That was kind of your answer, was it not? Yeah, because we want to enjoy the, at the moment, yeah. Okay. And then we also have the philosophy that we don't want to wait to like travel till we're old, old, like when we can't even walk. Right now we can enjoy and walk and do things. So this is when we want to do the travel. But I do try to budget. I don't know. I mean, when it comes to traveling.

like cheaper than most people would go and travel. Why are you allowed to travel right now? You have $174,000 in debt and we're only a decade away from being able to take out of our tax advantage that counts for retirement penalty free. We have nothing saved and we want to move into a different country and live a completely different life. Why are we allowed to travel? Yeah. Just because I feel like it at the moment, I guess. Not a great answer, but that's what it is. No, that's an answer. That's like a child answer. Okay. Right? Is it not? That's what it is.

That's what it is. Yeah. We want to be happy at the moment. What's different? Why is that going to change in the future? The conversation is great. But why? Why is it different in the future? Because we really want to move to Chile and we really want to have enough money to buy a property. That's it. Do we want that more than doing what we're doing now? Because that's all that matters in the end. Yeah. Well, I'm thinking if we can, I think we can handle it for a year or two of

or longer, I don't know. - It's $174,000 debt. - Okay, well, that's the big chunk is the school. So, I mean,

Which is money you owe. I know, but... Did that negate it? Did that negate that you owe it because it's a chunk of money for school? No, but they always have programs to help not pay right away. And what programs are you taking advantage of? The debt to income thing. I forgot what they call it. The income-based repayment? Yeah, that. You're at $100,000. I know that. Have you reported the correct income? No, because you... No, I tell them what I make and everything. You guys file together? Yes. Okay.

Gosh, but people like you're not the one who needs help, though. You're just spending wrong. That doesn't make sense. I don't want to get political. No, but the thing is, I tried to what I need help with is paying down these

credit cards because yes, yeah, that's what I what were your choices to get into it though? You still got into it actively. Okay, looking at these documents. I'm not mistaken. There's a document I'm missing. Is there not the the one loan that he took out without letting me know? Yeah, that one. It's a opera. It's something Yeah, it's a loan that he took out because when? Oh,

Two years ago? One and a half years. Why? Why did you take it out without her knowing? She's your wife. He tried to help because that month. Oh, no. Yeah. Yeah. That month we were very like we were struggling and I was trying to figure out ways to, you know, pay. And he came and brought money. And I thought it was money that he got from his side job. Oh, no. Oh, fuck.

And then... In this moment, it's not a regular job. Yeah, he didn't have, like, a regular job at the time, so... Now, it's regular job. It's every... So, I got annoyed because he doesn't even know the interest on it. I heard you guys wanted to get dirty. Okay.

Dirty money is back, and this time you're gonna be a lady in the streets and a freak in the sheets. And you know who you usually meet in those sheets? I'm personally into BBWs, budgeting, bonds.

Wealth. And this sexy merch is only available through the end of this month, and then it's going away. So to give you a little extra sweet treat, we're bringing back the classic dirty money as well. BDSM. Sluts for index funds. Finance Daddy. If this isn't for you, you can eat my assets, because I am myself an assets man.

Go to calebhammer.com slash dirty to check it out before these designs go away at the end of this month. And as an extra special sweet treat, every order over $100 gets your favorite asset signed and framed, the Hammer Dump Truck. And the only way to... Are you paying on it? Yeah, he is. He is. It's an auto... It's an auto money discount in my account. Yeah.

Because my check goes to a different account, to the Chase account. Do you know what's owed on it? Yeah, he gets a text every month. I think what's left is $600. Yeah, now it's $600. $650, but he only pays $54 a month. How much was borrowed? $2,000. $2,000. So a year and a half ago, we were struggling to make bills. So we borrowed $2,000. But now you guys make $100,000 a year. Why the fuck is it not paid off?

Because after paying even just the minimums on those things, I mean, I usually pay a little tiny more. There's nothing left. Should we prove that? Is that going to be the case mathematically in the end? Yeah, because after that, because the thing that I spend a lot of money on too is groceries because I cook at home, but I don't cook basic stuff, I guess. Because usually every day that I go to the grocery store, it's like $100, $98 just for to make dinner. And...

We'll see at the end. I mean, what do you spend a month on groceries? A lot. How much?

I've never checked it out, but I know. No, I mean, I told you I'm not. I just I have a list of what I need to pay, like the the the cards and I'm asking groceries. Oh, no, I have never. More than a thousand dollars on groceries for three people. Probably. OK, you're doing it wrong then. If we're trying to get out of debt, we meal prep, we meal prep, we sacrifice. We're not having luxurious meals every night. We meal prep, we meal prep, we meal prep. Yeah, that's.

that I need to work on. Yeah, you guys could do this $700. Easy. A month. Easy. For the three of you. Take our budgeting program, go through it together. I'm sorry, we only have an English option. I do apologize for that. No, no, no. I would be the one looking at it anyways. Well, no, no, no. He needs to learn too. If we cannot do this... Guys...

We're not going to get there if we don't get there together. You guys are married. We're almost spending the income down the middle. If he has the money and you don't take it from him, he sends it wherever and he doesn't know and he takes out loans. If we're not doing this together, if we don't have the same objective, if we don't know what they are and what's required to get there, and we're not budging together, this is just going to be a mess. We're not going to get there. Take the budgeting program. There's a meal prep thing in there. You can tweak it to your needs, but take it.

I highly recommend it for anyone. Okay. So you get that for free for being here. And you also get our investing program for free for being here. Okay. You guys get a free $100 from Moo Moo as well with that to invest, which is really cool. So let's dive into these documents because this is going to be a journey. Okay. A journey. An absolute journey. Where do you guys think you are on your financial scale? Zero to 10. Where do we think we are?

And zero being the worst finances ever, 10 being the best finances ever as a household. Where do we think we are?

I think we're at the worst. Zero? Yeah. What do you think? The same. Okay. If you want your Hammer Financial score, it's free. Link in the description below. If you have an interesting financial situation, interesting topics, anything at all, or an opinion you want challenged, and you want to sit right where they're sitting, and you're brave like these two awesome people, feel free to come on the show, calebhammer.com, slash apply. All right.

Amazon business prime card. Is this your business? Yeah, it's our the business is Sol Clima. Yes. Huh? This is the name. It's the name of it. It just means sun climate, but in Spanish. But yeah, we are the American Express card. That is a business card. I don't use it. The American Express. We don't use it. We do use it. Not too much for me. Nothing. We're

One of our other problems is we mix. You guys are not united in this. No, no, no. Our other problem is that we use the business and the personal interchangeable. I know we're not supposed to. Are you an LLC? Yes. Okay, so it's more just a pass-through. That's going to make it so much harder in the end, though. To account and then know what we actually have to pay in taxes. Okay. Yeah, because no. It's used. $162 is all that was put towards it.

$313 was purchased, even though there's $66.35 of interest accruing. Why are we possibly purchasing on a card that is accruing interest that we can't possibly pay out? How is that benefiting us in any way whatsoever? Why are we doing this? Why? I don't have an answer because I don't even remember the last thing I purchased on it. But why swipe this card?

Because at the moment, I don't have anything in my account. And then I go for the card that does have something. But guys, it was fireworks and two Amazons purchases. Oh, the fireworks. If you don't have money in your account, we're not getting things to blow up. It's not a necessity for life. That was me. That was 100% me. I did it for my son. For me, it's just too much money for nothing. It is what it is. Yeah, I was just...

try to make my son happy that was me yeah he didn't have anything to do with it so why on this card uh because it was the one that had uh some credit on it that's all so your goal's a lie you don't care about your goal you'd rather blow things up i do i don't touch it but yeah no i don't like it's not a lie i just it's not a goal then it's a pipe dream

No, we do want to go. Yeah, want. We will go. It's a dream. It's a pipe dream. And instead you're blowing up pipe bombs. We will go. We will go. When you help us...

That's not how this works. That's not how this works. I'm not paying off your debt. I'm not flying you there. No, I know. I'm going through the situation and I'll give a preliminary budget and I'll connect you with tools and I'll do the wake up call and I'll give my thoughts and my what I would do personally. That's how I answer this. I don't fix your situation. Your situation is through your actions. I am not a magic pill. Mm hmm.

I'm not. I know. I know. This changes nothing if you don't change anything. And right now, what you do, what your life is, is going and blowing it up, blowing up your finances instead of actually doing what is required to get to your goals. You're saying that this is more important than your goals through your actions. Okay. This year so far, $439.95 in interest. On one card. One card. And we have many to go through. Home Depot.

Yep. The Home Depot, the last thing we bought was the generator in May after the hurricane. $518? That's a valid purchase. I do get that.

I hate that it's on a credit card. I do understand in an emergency situation when we don't have an emergency fund, I do get that. But then we do everything in our power to pay it off as quick as we can. Yes, and that card has no interest when we purchase through Home Depot. For how long? It's going to be 18 months. Not the entire balance, just that purchase, right? That purchase and then there was... Or is that the... Wait one second. Yeah, because one ends... Okay. Okay.

Okay, so this one, this $625 balance. Oh, that was the transaction date. Okay, let me see when the promotion ends. Oh, 2025. Okay, you got one. Well, okay, here comes $518 that's owed by February 12th of next year. And then June 12th is $626. Okay. And honestly, at this rate, you guys will be paying interest.

It's a deferred interest. Oh, and then there is interest being, there's interest charge. There's interest charge because you have a revolving balance. That's it's a 161. So it's not completely interest free. It's the big purchases that you get from Home Depot. I know. But you're going to be paying interest anyway because you're not paying us off before then. That's not what your actions indicate. You're adding more to your debts. And you spent $1,500 more than we brought in on a good month. A good income month. Okay.

So what's the plan with this then? What was the plan? I assume the plan was to pay it off early, but... Yeah, I mean, what I try to do is I see the total owed and I don't go by their minimum payment. I try to always do a little bit more so that I make sure that it gets paid before the date. Did you do the math or are you just doing a little bit more? I haven't done it yet because I knew I had time, but I will. Yeah, I normally do the math. $29 minimum fee payment.

Yeah, I definitely don't. $1,307 a zone. Yeah. There is interest on the smaller balance and then there's two deferred ones ending in just a few months. I usually make a payment with Home Depot at minimum $100, if not $150. With what's happening, I have to ask you. Yeah. Do you want just one person, one person, your wife. Mm-hmm.

to be managing the household finances without your input based on what we're talking about so far. And I'm not villainizing you, but in general, I want to know your stance and what you think about that because she's controlling your entire financial future right now because you're not inputting yourself. It's not like she's aggressively doing it or stealing it. You're just not participating. Yeah, and now the big problem, I see the problem is a lot.

No, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no,

Why? No. I'm trying to be a more gentleman person with my wife. Yeah. He doesn't want to fight with me. I don't need to fight. I get that. There are differences between doing nothing and being complicit and fighting. There are conversations that can be had.

And if everything turns into a fight, then we need to go to counseling. No, we don't. We don't fight. No, never fight. Well, there we go. But we can have conversations. If you don't stick up for your financial security as a couple here, when you see that things are being mismanaged, you're just as complicit. It's just as much your fault if you do not stick up.

Yeah, probably. It's my fault. Que debes de hablar conmigo. Yeah, probably it's my fault. I need to speak more exactly this situation. Okay. Now it's no money, no safe money, no money in my account. It's terrible. Oh, yeah. And when we'll get to those accounts.

- Quicksilver card, $1,503.22 with a $56 minimum payment. My we're purchasing again. - How much is due on there? - $1,503. - I think that's his 'cause we have three capital one cards. - Are you guys authorized users on your different accounts? - Yeah, my is...

I am, yeah, on both. But we don't use, we're authorized users, but he uses his and then I have my two. I know, but we're just. Yeah. You guys are essentially together. Yeah. $41 of interest, $68 of purchases. Okay, I doubt this was gas, $5.19. That's usually like going in the store and getting some crap. Water?

- Water? - Get a water from the store, guys. Get bottles of water or a big old jug, get a nice thing. - Yeah, probably this is water. - And use this. - We do use it. - Then have water refills at home that we can put in the trunk. This is just too expensive. Guys, we're adding it to our debt here. And Bucky's, who knows? You never know. You're getting barbecue, you're getting beaver nuggets, or you're getting gas. I don't know. - The other problem, the big problem in house,

The kid in house. Sorry. The kid and use the water, the water, half the water, probably in the room.

I see probably a short. Yeah, he thinks my son was bottle water and that his room is like a graveyard of bottled water. Do not allow them to have bottled water. You're the parents. It's half. Sometimes it's half. All of them. And you're the parents. Tell them they can't have bottled water anymore. It's like, hey, what? They're not. They don't own you. I'm speaking the same problem for a long time. Complaining about the same problem. Ban him from bottled waters. Why? Why not? Why has nothing been done? Well,

I don't know. I guess because in my mind it's like a whole case is only what three something or whatever. And you have no money. So, okay. Yeah. Every penny counts. I get it. Yeah. But that's not what was my thinking while it was happening. Okay. That's a 30% interest. Oh my. Okay. Other cook's over. Yeah. There's three total. Right. So these are mine.

Okay, so the other two are yours? Yeah. This one's at $2,559. This is debt, guys. This is insane. Minimum monthly payments are stacking. $78 minimum monthly payment. More purchases? I'm going to lose my mind more purchases. This is insane, and it's more than you even paid towards it. $152 of purchases in $0.91, $50 of interest in $0.02.

What did we get? Oh, what is this? What is it? Bestrology Myanmar. Oh, that's when we went on our little mini trip to Florida this last month. And that's what we had for breakfast. How can we justify trips? How can we justify trips in any way whatsoever? You have no money. You're not surviving. You can't even pay your bills.

Well, okay. The way we justified it is because the hotel was free and we drove over there. So all we paid was food the whole weekend. Okay, so money you didn't have. Yes. Yes, but we paid food. That's a good way to justify spending money you don't have. Any more trips coming up?

No, not soon, no. No, not soon? Does that mean there's... Well, we have a pending one to Cancun, but it's something that's being... Yeah, it's... When? When?

We don't have it scheduled. We don't have it scheduled. Has anything been purchased for it? The $390 has been reserved for it. How? Reserved how? Spent? No, it's like one of those...

timeshare thingies that you did. Okay, that. So we got a free trip, plane paid, hotel paid. Free trip, hotel paid. What do you mean? You're in a timeshare. Your hotel wasn't paid. No, no, no. You're paying for your timeshare. No, no, no, no. We didn't get, like, for listening to the timeshare, that was the reward. It's not... You haven't signed a timeshare. Not...

You have a timeshare? Kind of. What is kind of? How do we kind of have a timeshare? Yeah, we have a timeshare. So it's a monthly thing. But that wasn't part of it. That was a total separate thing. Do you know your maintenance fees and timeshare? It's not that kind. It's something that's just a six-year thing. And it's like $178 a month. Oh. Oh, you'll see it. It's one of the cards.

killing it's a card it's a it's put on a card yes oh okay so we've just made every choice possible haven't we mm-hmm and walmart is walmart usually groceries or what it's yeah usually always groceries okay that was also spent on there like no no no no no it's a tv um yeah but the groceries on there it was it was yeah okay best buy

Because there is interest charge. What the fuck? Back interest. I had to open. Because no way $432 of interest just hit. So we didn't pay off the card by the time we needed to. Which means now I have no faith that the Home Depot card will be paid off. I don't. Okay. What? What? No, no. That's the interest rates. Hundreds of percents. There shouldn't be any. Okay. Well, I have to look at it. I will let you look at it right now.

No, I mean, I have to see the details of the things because I interest charge. Yes, because there was no interest for 18 months. We did nothing. I always paid every month. Oh, you didn't pay it off.

which means your back interest that was accumulating while it did it, which wouldn't have hit you if you paid it off by the time it was owed, by the time that ended, has now come back with a whopping $429.27. You didn't even know this. You're an accountant. Just a reminder. Sometimes we've got to account our own finances at least once a month. It went from $1,886 to $2,244 without spending a penny.

Yeah, we did spend like $700 we shouldn't have. Not in this statement. So great. More on top of that. That's wonderful. Or maybe it was before that because we did it a while ago. Buddy, I don't care about that. I do. I do. All that matters to me is you had back interest accruing. And this is the first time this has happened on the show, I think. We've had people with these kind of debts, but we haven't seen it when it hits.

You had that back interest accruing that you would not have to pay if you were mature enough to pay it off on time. If you were able to look at our documents at all. If we were able to do any kind of personal accounting, but you didn't. Now you're facing the consequences, which is why I don't believe for a single second that Home Depot card will be paid off before it starts to accrue interest. Luckily, it doesn't look like back interest accrues on that one. Not 100% sure, but that's what it looks like. Okay. We have no reaction to this.

Well, I didn't know it was there, so I don't have a reaction to it. So I have to. Okay, you're not credit card people. Never open up a credit card again. Close all your credit cards. It doesn't matter. It's not like you're taking advantage of the American credit system to buy a house in Chile anyway. So you guys don't need credit. You don't need credit, do you? Do you need credit? For times when we don't have money. Okay, no. That's why I get you to an emergency fund through a plan.

We no longer take advantage. We don't take advantage. We don't take out credit for emergencies anymore. I mean, your emergency was buying fireworks, by the way. That wasn't an emergency. It was just something I wanted to do for my son. So it's even worse. Okay. Yes. And I get that, but also there's free fireworks shows everywhere. No, he wanted to blow them up himself. Okay. That's great. So you blew up your finances to satisfy that goal.

It's going to be really great when he's going to be forced to take care of you guys because you don't have any cents saved up ever for retirement and you're still paying on debt in retirement. And all the fun money that you guys spent to spoil with fireworks and stuff like that is going to come back to bite him because he's going to want to live his own life. And mom and dad are going to come back and be like, uh-oh, we fucked up. Please help us because I don't want to die under a bridge.

And they're going to feel obviously morally responsible too because you're their parents and no one's ever going to let their parents die under a bridge. I don't think that's going to happen, but okay. Why? I just don't think that's going to happen. That's a good reason. I mean, I wouldn't let him take care of me. I mean, I don't think it's going to happen. No, no, no. It's not about let. Like he will be obligated to morally in his core.

It's not about you asking. No one lets their parents, unless their parents is a piece of shit, obviously. No one lets their parents suffer in retirement. I think we will fix this before we get to that point. How? By slowly realizing what I need to do to fix it. That's not an action. What? That's what? What? That's no, no, no. How about you? So you don't even know yet what you need to do? No, I do know. I'm not going to be overspending. I'm not going to be spending on things I don't need. Oh, my gosh. Okay.

What other answer is there? That is the answer. That's what I need to do. Literally any plan that isn't just like, I mean, I don't know. That's a good basic starting point, but that just doesn't give me hope. I'm sorry. I'm sorry. I'm sorry. Okay. Kia Forte. La Forte. La Forte. Okie dokes. We have these minimum monthly payment guys. Guys, these minimum monthly payments are insane. I didn't write down the best buy one. It was $50,000.

Okay. Minimum monthly payment. The forte is total load, total balance. Oh, whoa. Kill me. Okay. $19,738. 99 cents. We'll just keep going up. We'll just keep going up. $461 zone and 48 cents. Yay, yay. Joy, joy. 19% interest rate? 19% interest rate? That's what they gave him.

So you don't do it. Oh, I know that's so much easier said than done. But like, how much shopping around did we do? Why do we have to get a car that's expensive? What were we doing in general with him when he got the car? So you just got it without even talking to the wife. You got a whole car tens of thousands of dollars without a conversation with the life. I mean, I knew he wanted a car, but he went and got that one. How do you not have a conversation?

I called on my wife. So he called you. He said that he found a car and all that. Yeah, but I just wasn't there. But he talked to you about it. He said he'd be physically there to get information in 2024. Yeah, I mean, I vaguely remember the conversation, but I honestly didn't think he was going to sign and bring the car. That's all. But he did. Okay. He felt he can do those payments.

on a monthly basis without any issues that's what starts people they see the monthly payment and you likely extended the term to as large as you could almost in order to afford it and you see this one minimum monthly payment you're like i can squeeze that in then you see the next one i can squeeze that in the next one i can squeeze that in right now we're we're halfway through this pile and we have one two three four five six minimum monthly payments so far plus plus

Plus, we already know about a timeshare minimum monthly payment as well. Plus, we already know about your secret loan minimum monthly payment as well, which I have not put on here. So they just keep stacking. They just keep stacking. They seem like I can afford this one. I can afford this one. They stack and stack and stack until you can't afford a single thing in life. Kia Forte. Yep. You owe $19,738. What do you think it's worth?

What do you think you could sell it for today? $22,000, probably. $11,000. Okay. So he owes more on it than what it's worth. Yeah. Okay. By a substantial amount. Probably not. Oh, f***. The math doesn't even work to trade it and get a personal and get a $10,000 car. Pay the difference. That's just going to have to be a... We're paying it off until we pay it off. That interest rate is insane.

I haven't seen a bad car interest rate loan in a second. You guys are just bringing it all. You've really brought me all the highlights.

I brought them all because I didn't want to hide anything so that it can all be there. Well, I do appreciate that. But I just like it's interesting because people come in and they have this one really bad thing. And that's like what the episode focuses on. And then someone else is one really bad thing. You guys like collected the infinity stones of all the bad things that the rest of the guests do. And then you sit right here. At least you guys aren't blowing all money on like some of them. Right.

No, no, no, no, no cheating and having kids. We don't even go buy alcohol. We don't do any of that. OK, so you guys didn't do that. We do have the mystery alone. No, we like to just go out and eat and travel if we can. That's that's our vice. Mine, too. I can shake my titties and I'm a man. You're not supposed to do that.

Care credit is that was for dentist, but it's the medical card. So no interest for 18 months, but that's... Well, we know how you guys do with no interest. That one, I always, I've had balances on that one before, but it's all medical stuff. Okay. Is this how I'm going?

No, no. I haven't used that card in a while, but then I had to do a dental thing like a few weeks ago. And is that this? That's it. Yeah, there's the dental. It's $550, yeah. Okay. Well, you had fees. $30 this year so far. Promotional balance. This is deferred. This is deferred interest. Deferred interest is already starting to accrue. Yeah, yeah, yeah. I know on that card. So you must pay this off by the end of the year. Not a problem. You have five months to pay this off. Okay, $500, five months. Where's my calculator? It's buried under a pile of debt.

$100 a month. Who would have thought 500 divided by 5 is 100? Okay. How much is it? Grande. Yeah. That's my second card. Quicksilver number three. $2,926. Mm-hmm.

$2,926.34. An $80 minimum monthly payment. No purchases. Thank you. After everything, we made it. We're not purchasing. Okay. Wonderful. Still accruing $46 of interest, but no purchasing. The balance is high. The minimum monthly payment is continuing to stack on our never-ending path towards minimum monthly payment supremacy. Oh, that's empty.

Okay, this is another car. Capital One Pathfinder. That's my car. We have a Pathfinder. That's mine. Okay, this one's yours. Here we have a... Okay, your principal balance is a fourth of what his is. Have you had this for a while? No, I just bought an older car. Thank you. See, we can do it. We can do it. You should have got an older car. It's too late.

$5,758 is owed. $384 minimum monthly payment. You guys are so lucky. Your household income is $100,000 a year, if not more, because of the extra side business. 17% interest rate, though. 17%. Did we shop it around? Did we apply for different ones? Did we go to our credit union? Did we get anything? It's just I know the higher interest is because my credit isn't that good. What is your credit?

700 and something no not anymore it's 620 something 640 i think you gotta get closer to like 12 if we shopped around a bit maybe maybe not that's what i ended up with well yeah okay and yeah and it was the the kind of the car that i wanted and it's oh yeah what's it worth

I don't know. Probably not that much. It's a 2003 Pathfinder. What do you think it's worth? Maybe $3,000, $4,000? Pretty good. $3,000. Okay. So you are underwater on it somehow. You know, all that. At a 17% interest rate. Underwater at a 17% interest rate. I try to make at least $400. The payment there that you see, that's what I make every month. A little tiny bit over. I don't know if it makes a difference. I'm curious about that.

I'm curious about that. What's the curious? Noah says we have cookies and asking if you want cookies. Okay. I'm confused, but I want cookies. He also says if you want a gold star.

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Wait, what did you do? What did you do? What did you tell me? He's trying to be a butt to you. I tell you, I try to make an extra $20. I don't know if it really makes a big difference. Oh, he wants a gold star. You can fight him in the post show. He's going to come out here and you can just... Well, now he wants to cut it, so never mind. I was trying to tease the post show. Okay.

Yeah, I don't know if it makes a grand difference, but I try to make a little extra $20 principal payment every month. Yeah, I mean, okay, so you've brought that up. You brought that up for a couple cards. Okay, so what is our strategy there? I'm genuinely curious. I would love to know what you think we're doing when we put just an extra couple dollars towards all our debts.

Across the board. It lowers the amount of time or the amount of interest you pay because it lowers the amount of time that it's stretched out. You're attacking the principal balance. So less is a community interest. Yeah. So typically in the debt payoff journey, we usually talk about avalanche or snowball. Have you heard of those? Not when it comes to finance, but what does that mean? Okay. So snowball. So you've watched the show, haven't you? Yeah. Yeah. I just...

I probably just didn't focus on that term. But I mean, I can get the general idea of snowball and avalanche. Snowball, you're paying off your smallest balance at a time. Whatever's the smallest, that's the one you're paying. Then your minimum monthly payments is going towards everything else. The reason you're doing that is because, one, you get a quick reward in your brain that you're making progress because you paid yourself your $500,000.

your $500 debt. And also the minimum monthly payment that would have gone towards that is now rolled into your leftover money that starts going to the next debt. And all of a sudden we have more and more and more and more leftover money that's going into the next debt. That's the snowball method. Avalanche method, which technically pays off debt quicker with less money over time being put towards it, is paying off your highest interest rate.

To the lowest interest rate. No matter what the balance is on the card. While doing your minimum monthly payment on everything else. And the reason we're doing that is because obviously if something's accruing 40% interest. Or something accruing 2% interest. You're paying off the one that's accruing a bunch of interest first. That one gets you there quicker. Psychologically people have more success. At least in this environment. With the snowball method. Because you see those wins a little quicker. Which allows you to. Which encourages you to keep going. But if you're really disciplined. Which.

Than avalanches. The best? Financially. Mathematically speaking. But we don't even talk about money, so I don't even want that to be considered in your guys' picture. Okay.

So it's typically not an advised debt payoff strategy to put an extra $5 towards all our debt across the board because we're just really not making momentum anywhere. You're not paying off a high interest rate card quicker. Usually I would do like an extra 50 or more like on the credit cards. I don't know if it's just an example. We're not, we're not really, we're not making progress on a small debt to get rid of extra minimum monthly payments to put towards something else. We're also not making progress, substantial progress towards the debt that has higher interest. So,

So we're not making any substantial progress when we do it that way. So you're saying it's better to take all those little extras and just do it towards one for now. Yes, absolutely. And we'll talk about that at the end. Okay. But we have more credit cards. That one I can, I mean, it's... Is this a timeshare? Oh, no, no, no. This is a credit card from Chase Bank that's connected to the Marriott. Because we love to travel with money we don't have.

And that's why this has a balance of $4,882.72. - That one, since we moved from Houston, from Oregon to Houston, we used that car three years ago.

So we used that card to do our moving expenses. And since then, I have had a really hard time trying to lower the interest. - It's not even lowering the interest. - I mean, not the interest, the balance. But the thing is before I used to have things automatically withdrawn from there to pay stuff. So the balance wouldn't go down and then I took it out. - You know what makes it really hard to lower the balance?

is to keep making purchases you know what makes it hard doing the auto payments for certain things missing payments how about that oh and how about missing payments that makes it hard to not pay it off hundred thousand dollars a year plus that's not a usual thing but i did it oh bring it back a classic you really are collecting all the infinity stones it's not a usual month i haven't heard that in a long time that's that's actually kind of funny that's a throwback uh

I usually don't forget, but I forgot that month. So yeah. It's a special unusual month, guys. Well, I mean, it's the month that I'm looking at. So that's really all I care about. And there's another one. Yes. Is this everything you hoped it would be or do you hate me right now? No, it's okay. It's opening my eyes to things I didn't see before. So it's fine. I mean, I'll deal with it. That's the point. Yeah. I know it's hard to get called out, guys. So I do appreciate you being here. I really do.

And I know this is a hard first step. And I know I'm quippy and a little... I see the number in my life. It's terrible now. More terrible. Life isn't terrible. Life isn't terrible. He says he sees the numbers now. Now he feels... No, I know. But...

But this is the first time you're knowing it. Meaning now we can get together, create a plan, and actually figure it out. And you know what? If we didn't know it, you might not know that life is terrible. It might feel good in the moment. But we would end up in a worse position. So this is the first step to make sure that you guys actually live a good life in the future. We have to get there. We have to get there.

So we gotta get through the debts because we missed the payment. Usually it's $166, I think. Of course, late fees are added because we're not paying on our bills. Tell me because that's the total fee this year so far. But $811 in interest in this year so far for this card. $107.78 in interest this past month. $351 is owed right now because we're late. We paid it. Good. You backpaid. Good. Don't miss it again.

Infinity stones collected so far this episode. Not a typical month. A secret payday loan from the husband. Two underwater cars at 15% interest. A mother time share. I'm saying in the words of the late great Noah. Late payments. Motorcycle. My. His motorcycle. Can you get rid of it? He's planning to use that instead of his car to get to work. So you're going to sell the car?

No. Sell one. No, we can't. We can't sell one because I mean, he can't use his motorcycle when it's raining outside or and he can't use the motorcycle when he needs to do jobs, his side jobs. And what other one? And when can he not use the other car that he has to use a motorcycle for? No, he would use it just to go to. Oh, congratulations. Then we are selling the motorcycle.

Yeah, I see. Have we looked at this number yet, guys? Remember when you just said you feel terrible? Yeah. If we can wipe out one of the debts, like this isn't even in consideration. Are you going to sell it? It's his motorcycle, but I mean, I think it's such a small loan. That's why I asked him. Isn't it like it only owed $1,000? You're right. It is a smaller loan, so this actually doesn't make progress. I just saw it and I was like, let's just get rid of it because we don't need three transportation things. Yeah, it's only a little.

$1,200. $89 minimum to payment. But again, it's the stack. This will just be one of the quickest ones we've got. What's it worth? What's it worth? Do we know what it's worth? If you could pay it, because if you could sell it and you got like $5,000 for it. He only paid $3,000 for it. Like that's from the dealer new. It's not an, it's like those little, it's not even a motorcycle. Yeah, it's not a big thing.

So if it knew cost $3,000, I wouldn't think it costs that much more to sell it. What's the interest rate on this thing? Oh, 23%. What are we doing? Where am I? Okay. Wow. That is all I could print out for the student loans. Oh my gosh. There is more. Yeah, because you went to a lot of schools. There's more than the $52,000? There's like $150,000 more. That is the... Did you guys even know that?

I put it in the original list. Yeah. That's insane. Yeah. Total, it should be like a hundred. Yeah. Why did you need the infinite amount of schooling with all this money that needed to be borrowed? You didn't need your master's degree to do what you're doing now. I didn't know that at the moment. They kept convincing me that I did. I got to, I, DeVry. DeVry University. Oh, your school, the one that wanted you to keep giving them money. Yeah.

Isn't that a private institution? Yeah. So, no s*** they were selling you. But s*** are the government loan, like the... So they're all federal? Except for those. These are the ones that are not. These are... Well, I mean, it's the... Some of them are at 18.5% interest rate. Student loans at 18.5% interest rate? I've never seen that in my life! I've never seen that in my life!

You collected a stone I didn't even know existed. That's what they offered me at one of the loans. You took it? When did you take this? Years ago, many years ago. I don't remember. It was many years ago.

But I had to do the private, I mean, because they had classes at nighttime and I had to do a full-time job. I saw the unsubsidized and subsidized federal. No, all of them are under the consolidation and their signature collect loans. Yeah. We have $52,000 in private student loans. The lowest interest rates of 5.3. I'm not going to throw up over that, but there's so much at 18.5% interest rate. The other one is a hundred and something thousand. Yeah.

In federal? Yeah. Why haven't you tried to do any kind of like working for the government for any public student loan forgiveness or anything? Because that's the only way out of this. They need accountant somewhere. They have to. A non-profit. A non-profit. Okay, well, I have to find one that will pay me enough, I guess. I mean, at this point, I mean...

But at the moment, I'm only paying on those and the minimum payment per month is $205. The other ones are not in payment right now. $205. Why?

I have it deferred at the moment. Well, like you can see, I can't pay all of that. I agree. I agree. But just always pushing the deferment because you know what's happening in all these loans? Yeah, the interest is collected. Your interest is getting f***ed. And this one's sitting at 18.5 with a lower rate and then a lower minimum of the payment. Then you would need to be paying at least $600 to be making any kind of progress on that $650 a month. That's why I...

And we're just allowing it to die. So this is why we're fleeing the country.

Well, I mean, they do have that. Well, someone told me or I saw in there that after 25 years, you can be forgiven if you're all good. Listen, potentially. So this is the thing about this is the thing. Everything student loan right now, this is such a hot topic after the Biden proposal a couple of years ago. Right now, like the SAVE program, for example, in federal courts, it's getting thrown around. It's getting slashed. It's getting upheld. It's getting destroyed. And it's all that's going to go to the federal courts.

probably to the Supreme Court at some point. And the Supreme Court hates any kind of student loan forgiveness, it seems like. And the student loan forgiveness in terms of... It's not even that much. For me. For me. It's not even... Hold on. You borrowed the money. This is the taxpayer taking care of it for you. So don't pretend like it's nothing. No, I know. It's the money he's earning. It's the money he's earning. It's the money he's earning.

Like, so it's not like it's nothing. I'm not saying I'm anti-forgiveness or anything, but pretending like it's nothing, that's gross. No, no, no. It's just saying that even if they do approve it and everything, which I would appreciate, it's still over $150,000, so. And I thought maybe this would be a bankruptcy conversation, but these are student loans, so it doesn't even matter. No, yeah. Yeah, and then when it comes to the 25-year thing, so what I was talking about with that is...

It really depends on the Department of Education. A lot of the forgiveness stuff is really dependent on the actions they're doing and what they're... The loans that they're forgiving. Just, you know, who's in charge there? And I don't know what administration is going to be in charge at that time. What if they're just beyond anti-forgiving any kind of student loans? Even, like, I don't know, man. It's... There's just a big risk. Right time, right place, sure. But that's just...

Well, I mean, I figure, yeah, if it doesn't work out, I'll still apply for those, you know, the income based one. So which means you're just allowing it to accrue interest forever and also income based. You guys make a hundred thousand dollars at some point. Like maybe the next Department of Education is not going to find your income acceptable for income based repayment. How does this continue? Oh, is that a mortgage? Yes. My condo in Portland, Oregon, I rented out.

I have a con that's the loan for the condo and my payments with the mortgage and the HOA together that I have to make is approximately $900. And I get rent from the person in there for $1,200. Do you pay a rental property management company? No. Okay. Are you setting 6% aside for any future repairs and vacancies? No. Well, do you collect from them?

1,200 and I approximately... Well, you should be setting 72 aside at a minimum on a monthly basis. But it sounds like you're at least keeping up. I'm sure there's months that you don't though. Things break. No, I mean, probably I'm pretty sure but my tenant doesn't call me. He just fixes it because that's what he does.

Now, at some point, obviously, they might move out. Rental market might take a turn. But what concerns me more, because I also own a condo for rental unit. It's the one thing. It's the one I wish I didn't get. It's okay now because luckily the rental market picked up in that area. But condo associations, unless you're on the board, you pretty much don't have a say. Are you on the board? No. Yeah, they can raise that crazy. And they could also be like, oh, guys, we need a new roof for this building. Looks like everyone owes a couple thousand bucks.

Every year they raise it like 20 bucks at least. Yeah, wait until they need to fix a pool or something. It's right now at like $310. And when I first bought it, it was like $180. Exactly. Condos for rentals. I know now. What is it worth? Have you checked? Last time I checked, which was maybe like two years ago, it was $165,000. Sell it tomorrow. No.

I can't sell it for another couple more years because I got a loan from the county in Oregon and I have to have it for a certain amount of years. So two more years. That's insane. That's so funny.

crazy you're well this they gave me 20 000 for down payment so i get it but do you know how much progress we could make we could change your life with this extra 100 000 or 80 000 after fees and everything 75 000 let's just say to be conservative 75 000 in cash in your hand getting rid of this rental property that cash flows at like three percent that you could change your life

You can change your life and you literally cannot. What happens if you do? Do you have to pay it back? Yeah, the $20,000. I think a couple more years. I think it's okay. Like I have two more years. I'm trying to think if it's worth the... I'm trying to figure out some math. So you have like $100,000 in interest rate accruing things that aren't this condo essentially. Let's just say an average is out at about 12% interest rate. Okay. How much do you have to pay back? $20,000?

Yeah, if I sell it now. We would want to do some critical math. But if this debt all sits here without making any progress at an average of like 12%, it's going to accrue $24,000 in interest over the next two years. So technically, it actually might make more sense to sell it. That is not a guarantee. Let me be very clear. We need to get some minutiae math on that. But just gut take, you actually might make more selling it now and paying off the debt than allowing the debt to continue and sell it in two years.

We would need to figure out what the actual, based on all your debts, what's the real interest that's going to happen. It might be higher, it might be lower. Actually, very much could be higher because of those student loans and those credit cards are like 30%. There's a good chance where if you sold it today instead of two years ago and paid back two years from now and paid back the $20,000 that you'd actually make more money by putting a lot of it towards the debt. But then again, you'd only be putting like $50,000 towards the debt.

In that case, it would still be accruing some interest. Half of it would still be accruing interest. So the math in the end still might be closer to break even. I don't know. If you're willing to sit down and actually do the math, math, math, you might be able to determine that you'll make some money. And also, will they know? Will they know? Oh, yeah.

Yeah, because there's something in the loan for the bank. They have to let them know, the county. Why would they want you to keep it for them? I guess it's discouraging flippers. But what it's doing is it's preventing inventory. That just overall hurts the housing market.

For the average buyer. Like it's an, it's an interesting program. I get the assistance part, but the, that rule is probably to discourage a lot of things to get that condo at first. Cause I even had to take like a two, a two day class to lower my interest rate. Cause they wanted to give me a higher than the three point, whatever they gave me. Oh, I get that. Okay. Yeah. Okay. That's the time. How the fuck does this keep going? How are we still going through debt in an hour and 10 minutes? That's the timeshare one.

What are we at? 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 with the student loans and now 16. I didn't even write down your other student loans yet. Okay, how much do you owe in the federal student loans? I believe it's like 100. You know what? I did that credit karma thing that you said. It's on there, but it's like 100. Okay, 100. What's owed on the secret special loan? Oh, it's only like 600 and...

50 maybe. What's the minimum, Mati? $54. Okay. You need more paper. Oh, Wyndham. Oh, Wyndham. We love Wyndham.

We love Wyndham. I didn't even tell him about it, that they lied to us again. It's a timeshare. What do you expect? Yeah, but I actually didn't realize, because I went by what they told me, obviously, which was a lie. They said we were going to be charged $120 a month, which was fine, whatever. I assumed before, like fees and maintenance and all that. They don't have fees and maintenance. It's just $120.

Because this is what their plan is. They want us to use it for six years at this special thing without maintenance fees or anything. - And on their credit card. - Yeah, and then after the six years that we're gonna love it so much that we're gonna do all the regular timeshare stuff. And we're like, "Okay, I don't think so, but fine. We'll try it for six years." So later on, a month later after I noticed that they were charging 178 instead of the 120 they promised,

And then I wasn't making enough. Have you considered trying to sell it? I don't know if I can. Because I don't know. It's not like a regular timeshare where you have to call and schedule. It's a different kind of timeshare. I know. You can stay at any Wyndham across the country, right? Yeah, yeah. I'm allowed...

Oh, I didn't like I don't. Oh, yeah. I have to investigate because I probably not. I would investigate immediately because you've been so many times by them. Interest rate is $61.65. $178 purchases. That's your monthly thing. And then 240. It's like it's crazy. You're forced to make a purchase on here almost. It's like insane that you're even allowing.

this 2,490. There used to be exit companies, but there are also sketchy things surrounding them. I was, what I was going to try and do. I don't know if it's a good idea, but I was going to try and call him to see if I can get that one 78 removed from my regular account. So this one won't keep on collecting interest and then try to pay this off. I mean, yeah, that's a start. I would try to think about selling as your one else over as well. Um,

But I'm going to look into the contract and see if that's possible. Because as far as I know, I thought we were stuck with it for six years. You know, I don't have your contract. Do you know what your timeshare is called? It has the Wyndham name on it. But no, I don't like specific name. No, I don't have it with me. No. I mean, you can also just ask them if they're able to sell it to someone else. Sure, they don't care as long as they get their money. You might be locked in for six years, but it's kind of it's also just kind of weird.

Obviously, you've missed your decision period. Timeshare cancellation letter. You can write a cancellation letter to the timeshare company if there's things in the contract that allows you to do that. It needs to include all necessary details in the agreement number.

They might offer a deed back program where you can return the timeshare. I highly doubt it. Obviously, selling it, that's classic. I do have written in... I don't know if it makes a difference. I was going to call my lawyers to ask them. But the person that sold us the thing handwritten what we were supposed to be charged and it does not match what the contract has at all. There's actually... There are attorneys that you can talk to that are experiencing this. There's that. Timeshare exit companies, I don't know. There's been bad reputations with them kind of

Interesting. This one. Just stop paying, this says. Some owners just stop paying. And it can lead to foreclosure. And it will damage your credit score. That's kind of like a last, last, last, last, last, last, last resort. Time shares are incredibly difficult. This is really, out of all things to get into, it's one of the last things I would get into. The interest that's accrued this year so far, $338. Okay, $100.

$59 in a Chase checking account. Is this both you guys? No, this is mine. Okay. First of all, that's basically no money. That's scary. Especially if we're making $100,000. No money because I pay everything out of it. No, no, no, no, no, no, no, no. Don't f*** with me. No, no, no, no, no, no, no, no, no, no, no, no, no, no, no. I see on this first page alone...

Two necessary transactions. Three. The rest is just going out to eat and shoving it all down your throat. Jack in the Box, Subway, Food Town, Bath and Body Works, Sonic Drive-Thru, Dropbox. Let's not pay for Dropbox when we can't pay bills. DoorDash, Thai Restaurant, La Mikuji Kochi Kachina. I can't do words that require knowing languages. I'm sorry. Paramount. I failed Spanish. Spanish too in high school. It's true. True story.

I told you that's one of our vices that we eat out a lot. Okay, yeah. We don't get vices when we can't pay bills. Half-baked goodness. Terry Aki something. Amazon. I think we're running out of ink on this paper. Amazon. Amazon. Amazon. Google storage affirming. We're affirming? So there's even more. Amazon. Going inside getting some BS. Jack in the box. Adobe. We're not paying Adobe subscriptions when we can't pay our minimum monthly payments. Terra Nueva.

Amazon, Microsoft Ultimate. I don't think we're using Google. Use Google Spreadsheets. It's free. eBay, eBay. Why are we doing eBay? Come on, guys. Discovery Plus, there's nothing on there.

there anyway. I'm also watching like the new Star Trek show, but I haven't even heard if it's good or bad. Affirm. Great. More Affirms. Netflix is definitely not anything on there. Affirm. Amazon. Jack in the Box. Best Buy. Best Buy. We already have a Best Buy card, but there's Best Buy. Wait, that's a Best Buy payment. I think that was a Best Buy card. Amazon. Car wash? Why are we car washing? We can't afford to pay.

to pay our car hardly, but we're getting it washed. It's Texas. It's not snowing down here. We don't have salt and stuff hitting the bottom of our car. We're not doing that. Motel 6, no more traveling. Merlin's delivery, surf style, Hulu. Guys, we have every...

Streaming service possible. Stop. Going inside, getting some BS from a gas station. Amazon. Amazon. Wave Sushi. Mm-mm-mm. Texas Roadhouse. Getting them rolls. Ross Stores. Going in, getting some BS. Amazon. Amazon. Amazon. Amazon. Amazon. Sonic Drive-Thru. Amazon. McDonald's. That's insane. That is insane. We complain, wah, wah, wah, wah. Can't pay my bills. Wah, wah, wah, wah. Guess what? F*** you. You're buying all this bulls***.

No more excuses! Uh-uh! I don't care if it's a vice! Uh-uh! Those are the two vices, yeah. What I told you, Amazon and going out. $400 in his checking account. Oh, we're back at it! You better--! See you at Bajie Buffet! Game time! Tickets $182. Where do we go? What game did we see? Let's play the game of life where we pay off debt. Chile and Peru, but he got the deposit for that money and then he went and bought the tickets.

Amazon, Spotify. I promise we can listen to ads, guys. We can listen to ads. We don't have money. RealMetis.com. Remetis.com. That's what he uses to send the money to Chili.

What money? Right now, if you guys use my Moomoo link in the description below, you can literally get 8% on your money that's sitting in there for three months. It's absolutely incredible. Plus, you'll get 15 free stocks just for signing up with my link. This is literally free money, so make sure you're taking advantage of it now. There is no reason not to. Sign up now. Link in the description below. Remedy? That's his...

Child support is $400 a month. Oh, you have to. Yeah. And then whatever extra... Oh, we're going to Waffle House starting 3 a.m. fights. Lynn's Buffet, Apple Bills. There's more money to the child support and you have to do that. I get that. Home Depot, Panera Bread,

Food, town, Apple Bill, Ross Stores, Apple Bill, Amazon, Wendy's, going inside, gas station, getting some BS, Spicy Chin Asian, we're getting more car washes, great, I'm glad the car's clean if only our finances were as well. Paying for parking there, paying for parking there.

Sending more money back to Chili. Legends concessions. We're getting concessions at the concert. We already can't afford. Dolex. Dolex. Amazon. Sending more money back. Adidas. Domino's. Apple Bill. Going to get us a BS. Apple Bill. Wendy's. Going to get us a BS. Oh my gosh. Stop. Amazon. Mambo Seafood. Sending some money to Chili. Getting some Baskin Robbins. Mambo Seafood is really good. Great. Uncle Had. Okay.

I'm glad. You know what's really, really, really, really, really, really, really good? Being able to fulfill your dreams and moving back to where you want to. I know. I need this stuff. Going inside, getting some bullshit. Amazon. Amazon. Fruit jungles. Amazon. Oh, my. What are we doing with this Zelle? Zelling out $350, Zelling out $100, Zelling out $50, Zelling out $50, Zelling out $200, Zelling out $100, Zelling out $30. Where the f*** is that going?

- Zelling out 150, or zelling out 15, zelling out 700, zelling out 30, zelling out 50. - Okay, the zelling out for him is usually business-based because he'll do a job, he'll get someone to help him, and then he'll pay the helper, and then he gets the cash, and then doesn't put it in the account. He'll like spend it. - All cash goes in the account now. But you're also including him in the financial conversations. - Yes. - You guys are doing this together.

Okay.

then miscellaneous bs things that do not contribute to your life at all there's miscellaneous swiping going to the concert getting whatever 1411 dollars or 10.8 percent of your spending other large purchases 2647.78 cents or 20.3 percent of your spending yeah this is our life guys this is what we've chosen wow

You bored? Not that. It's just that I was told we should have been done by three, but that's... I have a meeting. Well, you have a lot of things. Oh, what's your meeting? Three. I just need to text him and tell him I might be a little bit more likely. That's fine.

especially because we're going to film a post show after this as well which you guys can join link in the description below it's an extra 20 minutes of usually we dive more into the tea side of things because you know this is the finance part then we get the drama in the post show um we'll be done by four no it says and let me just call them and tell them that oh because we have a member stream before you can also hang out for that make sure you guys are hanging out for the member streams what is your rent or mortgage

The rent that we rent a house. It's at $1,300. $1,300. $200? $1,300. Utilities? Gas, electric, internet. Internet is about $90. Water is about... $45? $50. Like $50, $55. Electric ranges between $150 to close to like $390 or $290. I'll say $225 for that. Okay.

Ventus insurance, do we have it? Yes, but it's included in my car insurance thingy. We'll talk about that. So $370 for utilities. Good. Gas for both. For me, it's more cheap. $30 a month? $30 a week. Mine is like $60 a week. I work further and mine's a six-cylinder. Okay, $360. Car insurances? $370.

225 for both our cars plus the renter's insurance. That's not bad. Phone bill. Yeah. Oh, we pay $16. Good. Because, yeah, different reasons. 16 total? 16 total for my phone, his phone, and my son's phone. Okay. But that's because I have a...

My bill says $398, but I have... I give people... Okay. Yeah, and then... $700 for groceries. Follow the meal plan. Tweet it to your thing. $200 for the TP fund. $200 for the TP fund. $200.

That is anything else you need to survive. Because this is like a top-down version of your budget. You need to build it out for its true nuances. It's anything else you need to survive. It's makeup. We're just doing some basic things that aren't fully wants. Some could say makeup's a want, but I put it in there. It is your toilet paper. It's your towels. It's when you need an extra clothes for this month. That's your TP fund, $200. Anything medical, co-pays that are ongoing prescriptions. Yeah, I'm paying for months.

Probably one hundred. Okay. Anything on top of that? No. Jim? No. $20. $21. Look at me. No, Jim. Look at me. Okay, let me get your minimum monthly debt payments. Yeah, I need to remove the car watch. My car watch. Yeah, no more car watches. No, no, for me. Our minimum monthly payment is $2,516.51. What comes in for rent?

Oh, $1,200. And out of that, $300 is profit, I guess, from the rent of the property. I'll include that in your monthly income. About $10,000 comes in a month. Well, that was a good month, though. So I'm going to say about $9,000. Oh, because that did include the rent. So $9,000 after the rent. I'm going to say it's like an average. Anything else I need to put in your budget? Or was that it?

- Probably I need to remove the Spotify premium. - Yeah, no subscriptions. No subscriptions. - No, I'm gonna eliminate. - Not yet, we might have room, but I doubt it. - For now, I don't need it. - Guys, you have room. You, I told you at the beginning, I was like, when we add up everything, is it gonna be true that after you pay your minimums, you don't have anything? That was false, you just spend it all. You just around. I'm gonna double check my math just to be safe.

But as far as I can tell, you have room. It's this irresponsibility, acting like a child, putting our fun and instant pleasure over our future. Yep, I was right. You need $5,807.51 to exist on a monthly basis. $9,000 comes in, and you had a better month than that last time.

So in your better month, you have an extra, I mean, you have an extra $3,192.49. Sometimes you have an extra $4,192. I'll allow $192 to go to fund. Spotify, whatever. So $3,000 is left over on a monthly basis. For a month and a half, saving up a one-month emergency fund should be the easiest thing to do.

and a high yield savings account just that extra three thousand just set it aside and it allows you guys to survive for a month if anything goes you know up and down oh you know the one thing that you forgot we owe the irs one thousand five hundred dollars oh my okay and it needs to be paid by october with the you know little green no i have good news you're paying it next month because you have an extra three thousand dollars after i gave you two hundred dollars for fun what how do you give me that face you have an extra three thousand dollars if you don't around okay

Okay, no, I believe you. I believe you. It's not about believing me. Now I just don't think you're going to actually. No, I just, I don't. Was the last hour and a half a waste of time? No, it wasn't. I'm just, I just, I guess I just don't see the 3000 extra, but I guess we. There it is. No, I see it on there, but I mean, I just didn't think we spent that much on the Amazon and the going out and all that, but I guess we do. There's your pie chart shows where all your spending is going. You do.

You know what? I have fireworks in my car. I'm gonna launch them. At your son if he asks for fireworks again. And you give it to them. Oh, it's only every July. I don't ever buy it. And December! Damn right! Because New Year's. I don't buy it in December. Only in July. Thank you. I was gonna bring that up.

Guys, this is honestly kind of simple. Yes, in general, like this, like legitimately, you have $100,000. Okay. $100,000 in bad debt that's not... Well, that includes the...

But you don't have to pay off that house early. So $50,000 a condo, $3,000 a month. I mean, you can just go smallest to largest. In a year and a quarter, all your bad debt's gone, except for that secondary mortgage isn't necessarily bad debt. I just don't think you need it right now. Literally, you can pay off all cars. You can pay off all things, except for the student loans. That's where things get difficult. So what I would do is grind for the next five years to at least get five years. No, that's a joke.

With a private student loan, it's another year and a quarter. Three years. Three years conservatively or two and a half years. You're out of all bad debt because your income is so strong. Your spending is just so stupid right now. That's why you feel like you can't make progress. So one, you're likely to live a healthier life. So that's good. Two, out of bad debt and have a one month emergency fund in two and a half years. Call it three years. You have a fully funded emergency fund. So...

At that point, you might not be out of your time share yet, but try to be. At that point, maybe pay off your... No, sell the condo. Get out of it. And honestly, probably throw the rest of the student loans or towards retirement. Or towards retirement. We can talk about it then, but minimum though. Three years, you are out of all bad debt. And you have a fully funded emergency fund. And you know what? It can be quicker than three years because sometimes you make more money. I'm doing the months where you don't make as much money. You make more money.

Boom. Call it two and a half years you're out of all bad debt. Guys, you have the most... There are so many people I talk to here where it's eight years to get out of it in their current situation. There was someone I filmed with yesterday. What was it, Noah? What did it take her? 90 years to get out of debt with her current budget? Something like that.

90 years to get out of budget. Sorry, sitting over there because we're getting ready for the post show. 90 years to get out. You guys, while giving you money to spend on fun in your conservative months, get out of all bad debt and have a fully funded emergency fund in three years. I'll be embarrassed, embarrassed and ashamed and disgusted if you guys don't get out by then because you'll be given up the golden opportunity of a lifetime.

So don't f*** this around. Don't f*** this up. You have no idea the blessing your income is and how your living expenses are relatively low. Your largest living expenses. It's your debt minimum through payments by double. That's your highest by double.

And it's going to snowball as you get into it. So you start feeling the momentum and you start getting excited about paying off the debt. Pay off your smallest debt at a time. You're going to knock out like three individual debts in the next couple months. The IRS next month, one month emergency fund, then this $500 debt, the $650 debt, $1,307 debt. You're just going to kill it all. The fact that this debt exists is a joke.

And you have the opportunity to no longer live like a joke. Okay. It's budget. It sacrifices no bull. And in the budget, are we like saving money or after we're out of debt? Well, remember, I gave you a one month emergency fund. You're getting that first after the IRS payment. Okay. And then you're not saving money till we're fully out of the bad debt, which is about two and a half, two and a half years. And you're getting a fully funded emergency fund, which is saving more money.

That's everything you need to live on your minimums for six months. And then at that point, you can either, I want you to sell the condo and we're either throwing that at retirement to try to catch up or we're throwing it at the student loans because who knows what the situation around that's going to be. We can talk about that then. You know, I plan to be here in three years. So we'll have a conversation. Okay.

this is down the road but yes we do want to certainly start catching up on retirement that's for sure and then you know we're going to do some asset transfer things it might start getting confusing when we're trying to get to chile but three years guys this is a blessing of a lifetime right now for your hammer financial score spending in a budget i mean you overspent on your budget so it's a zero out of ten debt you have irs debt zero out of ten honestly with all this debt it would be a one out of ten at the top but it's zero out of ten emergency fund

Nothing in saving zero out of 10 retirement. Nothing? Anything? No. That's crazy. That's crazy. 40. That's crazy. Okay. Well, whatever. Zero out of 10. Real estate. It is going to benefit your score. So you're probably going to get rounded up. It's a condo. Condo is not the kind of rental property I'd get because of the condo association fees. It's a rental property. I would rather have primary residence first.

Okay. It's going to be a three out of 10 for real estate. I only round up unless I hate people. So hammer financial score 0.5 out of 10, make sure to join the membership below to get access to the post show and our member streams on Tuesdays and all the other extra shows behind the scenes that we do. Feel free to check out all the resources linked in the description below is there what a user would use in specific situations, including the best budgeting program and best investing program in the history of the internet.

Today on the Financial Audit Post Show. Mr. Hammer, you're going on a date tonight. Can we talk about that? Yeah. What's going on? Hey, guys. What's cool? Does she call soda pop? Probably like a true American. How'd you guys meet? Not good this time. Hinge. How about them? How did they meet? Oh. Well, yours is Hinge. Ours is Plenty of Fish. Really? Yeah. To watch the Financial Audit Post Show, click the Join button below.