She's Going To Die In Poverty | Financial Audit

my name is Danny I'm 26 and I'm based in Tulsa Oklahoma and this is financial audit what do you do in Tulsa for living I'm a dog groomer oh my dog literally needs that right now you have absolutely no idea there's so many stickers stuck in this long fur it's the season oh my goodness okay very cool what are you bringing in um not very much right now I moved from Washington to Tulsa Washington State DC yeah Washington State um and I was making around almost 3 000 a month I was in a higher volume salon now I'm doing my own self-employment between two different salons um so I'm bringing in post-tax like maybe 1700 right now a month yeah that's hard okay jeez now you dirt you're w-2'd so I know I'm 10.99 so that's after putting a little bit aside yeah which of this income I mean it's not gonna honestly you have to be much in terms of taxes yeah but yeah wow well right off the gate what's your rent um we split it so my rent is 600. what do you split it with with my partner Jaden oh okay cool so 600 well I'm glad Tulsa is apparently insanely cheap it's not too bad we're not in the best neighborhood but you know is it safe are you safe yeah there okay and I mean that's what matters as long as you're safe then I'm good with living in a cheap place that's 35 of your take home so that's definitely more than we want we want 30 to be the extreme Max in like a proper financial ecosystem of life and you were beyond that yeah but we obviously need to gather the whole picture of your financial situation see where your life is at and then see what we can do so like what brought you here what is your financial situation look like today what's up well what brought me here was my partner um he was living here so I moved here um to be with him and then my financial situation is terrible it's been terrible for years now okay um I would give myself like a zero really okay why is it a zero uh my spending habits are not good um I've had debts that I had during um I'm bipolar so sure I had episodes that I didn't know were episodes and so it's all kind of now that I'm medicated and doing all of the legwork there um it's just biting me in the air now hmm so yeah I actually had someone on just a couple weeks ago I don't know if you saw that episode someone who also struggled with bipolar disorder and that's drive them into a lot of you know struggling Financial situations that they're now trying to call them claw themselves out of how long have you uh been receiving help and everything um not very long I was diagnosed in February of this year this year yeah it's only a few months ago kids went to psychiatrists went to therapy how has it been since then it's been amazing oh good so much better I'm so sorry that it's taken so long yeah it sucks yeah that is someone who deals with mental health Strikers myself I definitely get it mine's more on the anxiety side and like a panic disorders you know it could be crippling and I couldn't even imagine bipolar has to be one of the hardest things that exists so yeah it can be hard good for you for getting help and getting uh taken care of and now looking at your entire financial situation trying to do better yes okay definitely I have goals in mind that I would like to get to um but I need to fix my situation first we'll we'll talk about those goals I'm curious and then we'll see how we can kind of get there and pull ourselves out of this financial situation so zero out of ten is what you give yourself yes absolutely I want to take a brief moment to thank today's video sponsor so far Sofi is a mobile first finance company that helps you with your banking borrowing and investing needs and as we know on this show there are people in Endless credit card debt the bad part of these credit card debts is you can see interest rates in the 30 now people are being drowned in their minimum monthly payments across multiple credit cards and these insane interest rates and as we've talked about in multiple episodes sometimes taking on a personal loan to consolidate these terrible credit cards can be a really good decision now as I always say just because you consolidate it doesn't mean you shouldn't pay it off immediately I want to say that first and foremost you still want to pay it off as quick as possible don't let this make you think like you've made progress and you don't need to do anything anymore but this can help you save a lot of money in the long run so that's why I'm thankful for today's sponsor they provide these personal loans with fast approval ensuring you get the money you need quickly sometimes even on the same day if your loan is approved and the best part is Sofi locks in your rate throughout the entire duration guaranteed unlike those credit cards so if in order to consolidate you have to borrow five or a hundred thousand dollars which hopefully not your interest rate will be locked but that's where it gets even better by using a sofa personal loan to pay off high interest credit card debt you can save money and protect yourself from potential rate hikes caused by inflation and the FED raising rates and if you choose Sofi to pay your credit card lender directly you can even receive an interest rate discount so this could be a way to take charge of your finances today so to see if the rate is competitive for you and in only 60 seconds with your credit score head to sofi.com forward slash Caleb hammer the sofa for sponsoring this episode so in the overall Financial picture of your life like here in the documents I have I have a credit Builder two checking accounts and a savings account do you have debts yes I have debts um I don't have the paperwork on them oh well let's hear about these debts okay give me the first one so the first one is a car that um is now has been repoed um and it's a Mitsubishi Lancer it was a repoed yes okay um I owe about 30 [Music] um sorry um just under four thousand oh four thousand sorry yeah no no no no no no um it was a stupid buy um I could afford it at the time because I was in an episode so I was working three jobs for no reason so I could afford it at the time no really yeah um so now that life changed drastically so I couldn't afford it anymore so about 4 000 on that um I have my current vehicle so are you trying to okay go ahead what's your current vehicle my current vehicle is a 2012 VW Jetta um and I only owe like 30 I just made another payment so 3 200. move the 30s it keeps scaring me what's the minimum monthly payments on that uh 200. oh wow must have been uh okay what was the purchase price when did you get it um I got it last August um the purchase price was I think a little over 7K what's the interest rate on that I actually don't know I'm trying to get a hold of the papers um do you have Credit Karma download it on your phone I do the thing is is the car was purchased through a friend this is a personal loan through a friend through a friend yes well did they borrow the money or did they lend you the money from their own like pile of money they purchased the vehicle and I pay them okay but the loan is under their name yes okay I'm curious yes so I've been trying to get a hold of that paperwork but they at the APR and what are you doing about the repo situation I'm making payments on it okay what's that payment um it's a hundred a month what was the interest um you're gonna be mad at me it's it was 21 oh that's death yeah not mad at you but the the interest rate is what scares me I'm typically not mad at the individual unless they do something that's in the past but I am just mad at that interest rate for like yeah like I said it was a very stupid purchase I shouldn't have would you do that um that was back in I want to say 2018 and that vehicle was purchase price of ten thousand okay when was it repoed um it was repoed last year have you been in contact with them um I wasn't for a long time um until it went into collections so that's in collections um yeah wait okay who are you paying are you paying them or the collections are you paying the collections agency that has interest on it so not that I know of okay and what are you paying them I'm paying them the hundred dollars a month and a hundred dollars it's only four thousand but yeah you don't Maybe it's a hundred dollars is gonna take forever before you can even where's this car I don't know like that's gonna take 40 months is that even worth it because I've never had a car refund um I've never had anyone in my life reposed basically they take it and they sell it off and then I pay because they're no I mean I know how it works I'm just trying to figure out if you've been in contact with them in terms of any negotiations because you know it's typically like you pay it off in full then you might be able to get it back but it's in the collections and it's off so now you're just trying to pay off I'm just paying off the basically I'm paying off the debt for something that doesn't exist yeah because there was damage to the vehicle at the time um so I'm basically paying off that damage that I didn't get fixed in time thank you kill me okay yeah I assume there's another debt yes from how this conversation's going let me grab my phone I have a list oh okay a list I'm terrified if you have a list of things on your to-do docket today one of those should be subscribed because we're trying to get the 750 000 subscribers so she's blown up a list well she pulls up a list you subscribe um Okay so I have as close as you can by the way Dental credit um of 875 dollars owed to who um a collections agent everything everything's in collection oh everything's in collections except for my Jetta yeah how many miles is on a Jetta oh it just hit almost 156 000. so you might how's the condition of this car it's decent okay okay okay but probably in a few years you'll need a new one right absolutely yeah okay um okay okay Dental what do we have um we have a Banfield that was that the like the hospital yeah the Pet Hospital of 682 dollars okay um and I'm actually making payments to them right now 50 a month okay um and then I have two things of medical debt uh one uh 1698. and then one at 114. okay um and then the last one last one is a credit card um that is like six years old now um at 1296. I haven't been making payments I haven't made payments now when's the last time that's had a payment uh I couldn't even tell you so probably that entire six years yeah how what was the balance on that uh one thousand 296. this might be the first time on this show where we talk about just letting it fall off your credit because you're almost there right yeah they're almost there right besides the seven years how old is this other or besides the six years of that how old what's the oldest one besides that and how long is that um the oldest one is probably the band folds how old is that um probably about the same about six years you've been paying on that though I just started payments ah you just started yesterday well that ruins it so there's been activity on that account yeah so that well I have to prepare okay besides that what's the oldest besides Banfield um that would be the Mitsubishi and that is how long that was two thousand it doesn't matter you're making payments on it yeah okay medical debt how old's the medical debt medical debt is just a couple years old um Dental um Dental is about six six or so have you been paying that no I have not I am not a fall off the credit kind of person but this could be the play it will fall off your credit report in seven years a little close to that statue of limitations on the debts though in terms of them still hounding you are you being hounded um since I started making payments to the two yes they've been calling me good so you start making payments and then they called you yeah thrilled yeah but the other ones haven't no then I wouldn't worry about the statute of limitations in terms of pursuit either and I uh if I'm not mistaken those varies on the deaths as well um but it'll at least fall off within the seven years which will help your credit which is despite what many people it's a manual underwriting such a pain kind of hard to find having good credit makes the rest of life so much easier yikes but so what's gonna fall off is that credit card again right yeah credit card's falling off and the dental it's gonna fall off yeah how'd you get into this collections in the first place because what I'm just afraid if you've done 26 years old Same by 26 to have that many accounts and collections yes no matter what we do how are we preventing you from going into one two three four five six seven accounts of collections again in the future I would say that I've already started learning my lesson about it because it's biting me in the um already and I've been making payments perfect perfectly with my Jetta um in the insurance payments and everything um and I'm medicated now so that has been a huge help in keeping me from going into episodes to where I'm not so you'd say all these were episodic yes well sorry that that's incorrect um the dental was because I needed a wisdom tooth removed okay which is very fair but why should then not pay it so basically because I just ignored it and I'm just gonna say that um so why did you ignore it I just want to make sure we are not ignoring payments in the future why did you ignore it why'd you choose that um because my life was pretty insane at the time um and I had a bad habit and included into my episodes of ignoring bills okay um and just ignoring normal adult things so I'm glad life has become more stable and we're medicated now but life is unpredictable we still might be Medicaid in the future but what if life goes wild again even though you will be you know medicated and receiving help what if life goes wild again what's preventing us from oh I'm not going to pay rent this month okay or the next month or the next month um I mean honestly I have my partner to be a good rock for me married no that's not guaranteed it's not even guaranteed with marriage but at least there's legal backing I mean honestly I don't know because I can't really foresee the future and what episodes I'll go into um I'm not saying that won't happen I'm not saying I'm obvious I'm not saying I hope that happened I hope I hope it doesn't happen and I just want to make sure that because we ignore bills because life is crazy that when or if life gets crazy you know different kind of crazy who knows that we don't fall into that habit again because then you're gonna spend years digging out of that hole exactly and like I said I am in a completely different spot than I have ever been in um and I have learned that that is not okay to not make payments um and that's all I really can say because I can't guarantee that oh I just the the stupid the stupid repo yeah I want to get this clear make sure I didn't hear this the one that's a repo that was under your name right not your friend that one's under my name yeah all right well let's continue getting the full picture of your account we have four different accounts to look at here yes and paper this one's a credit Builder credit Builder yeah are you familiar with it well there's lots of credit Builders some can be good some could be bad I usually because credit Builders cost money I'm good with them once usually we're out of debt because we're trying to minimize minimum monthly payments so this one is one that I put in money from my checking account through chime and I only get the amount that I put in yeah so I basically use it like a double fee though they don't have a fee I believe okay I might be wrong and it actually has helped my credit it took it from a 490 to to a 565. yeah no when these questions either fall off or get off because we're gonna pay some of them then that's the big thing yeah I mean yeah so obviously there's some of these deaths that we need to pay for correct yeah there's that's that we're needing to pay for why are you getting taquitos to the gas station well mine spot was my spot's not therapy is it mind spot is therapy good that's fantastic it's eight dollars so I was skeptical so my copay is only four dollars um and I was just paying two and obviously I'm down for that that's fantastic so for therapy in my meds I spend a total of twelve dollars a month incredible we're obviously going to put that in the future budget because we are not negotiating on them and that's incredible I'll probably recommend that for people going forward okay I'll take a look into it first but what is dgx because that's everywhere that is Dollar General dude okay Dollar General Dollar General what's penis systems PN s star LC systems oh can I see oh that is the 50 payment to um collections the collections okay gotcha yeah Sonic drive-thru do we really be going to Sonic drive-through when we need to pay off some of these collections do we really need to be going to Taco Bell do we need to be going to that dollar store Dollar Store e-load Cafe and cater do we need to be doing that do we need to be going to Taco Bell do we need to be going back to the dollar store is that stuff and it's not like they're overly important purchases three dollars here twenty uh 27 they're ten dollars there come on they add up though yeah they add up so do we need to be doing that no when there's Collections and I'm glad that at least with the credit Builder the money that you put in is with the money that I spent but on this next account we started with 4.38 cents to be fair I don't really use this account anymore don't really use this account anymore what do I mean we don't really use this account anymore there are purchases all over the place you mean you don't use this account anymore as in like a week ago no so my main money goes into my chime um only 200 or so goes into the U.S Bank as of like a week ago or something because it's not like this wasn't I mean this was still going through May a little bit of money here and there okay well guess what overdraft because negative four dollars 38 cents and we ended even though 744 came in we ended with a negative 1.12 cents two overdrafts with also Netflix payment which were canceling immediately fun fact congratulations wrote uh some debit card purchase from a store based out of rose rock in Michigan and Braum's store and Popeyes and resource Sandoz and the rose rock and audible well audible's gonna be going to the library good Google storage and PF Excel that is uh the gem okay then we're good with that as well and then paying for like renting a movie or something on YouTube I don't know but um premium maybe yeah YouTube okay a lot of we definitely don't need to be going to the Sandos and wherever that thing on a rose rock and then Popeyes and Netflix we're not doing that when we're trying to get out of debt we're especially not doing that when we start the month with negative and when we end the month with negative see this comes back to my point earlier where I was a little nervous of going in the future that was a month ago when we added negative if we're not managing at that point I'm just I'm glad that you don't have any open credit cards right now right no no that isn't that credit card Builder so yeah that makes you nervous going forward I know I'm not a credit card person I don't think I'll ever have another credit card good yeah it's fine if you aren't the majority aren't and that's okay but guess what another thing that makes me nervous chime checking account started negative 4.63 cents started negative two accounts out of the four accounts and started negative two of the checking accounts there's only two checking accounts and both start a negative you know it ended positive with seven dollars this is why I'm nervous American AI Captain Scripps office so that was when I went I was at the airport when I went to go visit my family I didn't pay for the plane ticket or anything I just paid for a couple things with for food but okay okay four because because normally I wouldn't care but we're trying to get out of Collections and even more importantly than that the two checking accounts that we have started negative do we be eating food from airports at that point no Dollar Store General Apple Bill Apple bill I don't know what ropong is or pop well I know what Popeyes is and there's an Albert thing and then and dildy with painting house the Andy eyed that is um a payment for my insurance payment to my friend good yeah I pay her two hundred dollars and stuff that I've never heard of on yours ever before my life but still again the Popeye's normal country and the Apple Bell Apple Arbor and Jaden house and uh Captain scrimp's office in American Ai and the Jaden house one is usually for rent or bills so many things that just I've never heard of before this is so weird and then the dollar store then an April another Jayden house hopefully bells and then that and die thing so again a lot of unnecessary payments even though some of those okay they made sense that they're called out still a lot of unnecessary payments when we're starting with negative and we're ending another one with negative and we're only ending that 107 if you didn't go to that stupid uh place to eat in the uh airport you would have had double the ending balance double the ending balance yeah and then in savings I mean it just really rounds up and it's a two percent yield anyway I mean I wouldn't use that I well okay I I try not to plug too much but I just I I like I like them because of the savings account but come on we could be getting like 4.3 with sofas high yield savings okay like I mean we may as well double our rate right so you can check out my description for that but either way yeah there's only 159 in here anyway there is more in there now how much um let me look there's 356 dollars and 13 cents do you feel fully dependent on your partner yes I do yeah I bet 1700 bucks a month all these bills rent 35 of your income then we're not even talking about utilities or any of the debt minimums rent is including utilities it is right yeah we pay 1200 including utilities okay that's wild all the food going out to eat that we could calculate in like the unnecessary spending 411 wow 411 dollars sixty dollars in gas yeah yeah I don't spend much in gas because I work like five minutes away from my job gas 60. then utilities was uh renting utilities to 600 right yes set including internet good wow very good car payment is 200 200 yeah car insurance is what 80 is 89 . it's also good yeah um now this hundred dollars to Japan towards the repo card and the 50 shows Banfield such which you negotiated with them or is that just you trying to make progress no that's what I negotiated with them for monthly payments I want to try to save up a chunk of money and then negotiate to like pay half so you're pretty much committed to that then yes I'm going to try and save up money and maybe try and renegotiate with them but as of right now yeah what happens if you don't pay limit or monthly payments I don't know well because it's already in collections I mean I might just stop they'll Hound you if you're okay with being no we're stopping that for now we're taking away yeah we're stopping that for now yeah both of them the Hound you and yeah okay [Music] okay very good now how do you guys do groceries um we we split groceries I spend about 200 a month perfect that's the number I was gonna give [Music] and I'm gonna give you a for Hair Skin toothpaste all that good stuff 75 bucks a month toilet paper that's fine any other minimum monthly expenses you can think of that you were forced to pay I would say the gym I pay exactly 25 it was definitely worth it and same with the therapy with the 12. oh yes yes that too fantastic anything else um not that I can think of let me double check here [Music] nope that's it that I'm forced to pay [Music] so your minimum monthly expenses in order to survive is relatively cheap compared to a lot of people especially a lot of people on the show 1261. it was 1700 bucks if an additional 439 dollars left on a monthly basis and we are not doing the hundred fifty dollars towards those collections okay okay so we have 439 left you have 365 dollars saved up yeah month number one [Music] um obviously save up as much as you can this month but we're just gonna talk as July is month number one okay end of July you put that 4 39 with your 356 in savings brings you to 7.95 that's what you're doing the month of July you're following the budget you're not spending a single Cent outside of that if your partner wants to take you out to eat that's fantastic yeah a lot of other things you're not paying for fun you're not doing anything you're canceling Netflix I don't care you're digging down going crazy in a good way then August month so month number two saving up another seven up another 493 getting you to a thousand two hundred thirty four perfect so month number one month number two you're putting all that extra money aside okay and it's a sign it's perfect you have a fully funded emergency fund well no no not even close I can't believe it no that's not you have the starter emergency phone you have your one month emergency fund okay lovely now the goal and you don't know the interest rate on your own car it's a pain in your car I know I'm trying I can't believe your friend even allowed that with your history but either way say thank you every day to that friend I do she's I've known her since uh sixth grade and we're basically family again I don't think we're worrying about the credit card that's in collections I think we're gonna wait for that to fall off and if they're not already contacting you I'd set you limitations we're just not worrying about it same with the dental they're not hounding who cares I mean you know I mean there's there's the moral thing if you if you want to pay for it go for it I'm just thinking math and how do we get you from A to B as quick as possible that's where my logic is right now there's the moral yes you borrowed it maybe you should pay it but I'm gonna let you determine that on your own so the collections that we want to deal with is medical debt and the other medical debt and then the repo car and the Banfield oh Banfield what I'm going to do okay cool month number three 439 save that up call up the collections of the Banfield people like I I saved up a little bit of money I have 400 439 dollars awesome subtle this come on be done with it that's all I have I literally have nothing else okay don't say no call back once every week until they eventually say yes okay and then pay it off uh just don't pay them anything until that never give them access to any of your account information or login information anything like that they might try to scam you into that no don't do that so I only have this this is what I have let's just settle it keep asking them and then for the other one for the first for the second medical debt at a thousand one hundred fifty the next month save up maybe we're trying to save up to like uh 600 bucks there over a month and a half and we're saying hey this is all I have this is all I have let's just finish this come on so let's just do the process over and over and over again okay get them settle it medical debt too we're doing the same thing we're probably saving up about a thousand bucks okay over the course of like two two and a half months like it's all I have a thousand bucks repeat the process till the paid off I'm making it sound so much easier than it is you're gonna have to hound them yeah once a week this is all I have that's all I have to my name this is all I have to my name you want it or not you want it or not they're taking a risk on it when they bought it but they bought it on Pennies on the dollar so yeah they they a lot of them they're just lucky if they get anything so if you really say this is all I have and just make sure they know that over and over and over again like once a week then that's cool if they say no they get upset like okay talk to you later with the car the repo one the four thousand maybe over the course of I mean it'd be great if we could get like two thousand two thousand five hundred maybe it'd be three thousand dollars try with two thousand well no because then we don't want to go up from there because then they think they can just keep getting you up maybe we save up two thousand five hundred okay look at the course of about six months say so I have the my name you know I'm not gonna repeat myself but repeat the process yeah and then try to settle it again I just said that all within like two minutes making it sound so much easier than this but that's the macro process and then just getting in there and getting in there mentally and you know fight for yourself fight for yourself you're very self-spoken very nice this is awesome but no these heads you got to go in there with good energy who you borrowed that at 21 well crazy yeah I don't know why I did that no it's in the past it's in the past I've all done things we don't like in the past but we're here now and we're looking towards the future and you're learning from the past No One's Gonna punish you for what you did years and years and years ago because that would be stupid I think in about a year and three months or so you save up enough to be able to negotiate with the collections each collections account smallest largest I think it's just the easier easiest way to go about it okay we're not doing the minimum monthly payments towards them anymore come so I think about a year to a year and a quarter year 12 to a year and three months something like that okay so I think that's what it is until we get out of the collections now with the car because you owe your friend I don't like that situation even if the interest rate was low because you're your friend we're just gonna pay it off quick anyway yeah so at that point it'll probably be around like 2 500 left I don't know the term I don't know the term length I mean but I believe it's three years three years yeah maybe it'll be how many years has it been um almost a one almost one three years the original amount was how much um about seven thousand we put down twenty five hundred and then you pay that off in about four months just give her all your extra money for four months until it's paid off so now we're talking a year and a half a little over a year and a half all the collections are gone the car is gone and then we do the exciting thing you give the money back to yourself so what it cost for you to survive we're gonna get you to I don't I don't want any emergency fund to be less than ten thousand dollars because of medical potential medical things in medical and car things like six seven thousand five hundred sixty six on paper would be a six month emergency fund for you nah let's get to ten thousand dollars as quick as we can and how do we do that you'll already have a thousand two hundred sixty one dollars in there so essentially because you would need to save up an additional 8 739 but yeah you don't have much money to put towards and we're about to have that conversation yeah because it'll take about 20 months 20 months have a fully fronted emergency fund yeah and then we start investing that's unacceptable so we don't do that how many hours a week do you work grooming right now bringing that money in okay so right now I'm working um [Music] I'm working about 30 hours at my main salon and then I get about maybe four hours here and there from my other salon that I just started up are they going to give you more hours so it's based on um how many clients I have and basically I get paid right now hourly because I'm not making enough in commissions so once I make enough in commissions then that's my income but I am actually actively working to find another job what kind of job anything okay I've been applying to anything anything and everything anything and everything at some point it might be worth checking out certification programs to see if you can get into like a mobile tech job that would be great so you can check out course careers for that but if that's not something you're interested in you could at the very least I want you working in a coffee shop so that your total hours of work a week is 50 60. 50 to 60. like your partner is lovely I'm Adam it's great that's a partner right the person I'm at yeah lovely fantastic person cool congratulations you're not going to see them anymore because you are going to be working your butthole off just gonna go going crazy you have to go crazy this doesn't make any sense that that's crazy it's crazy how long it's going to take to get this emergency fund all the way up it's unacceptable that that would take an additional 20 months you are working every second of your life 34 hours of these two jobs no you are doubling your hours so maybe over 60 maybe we're doing 68 I don't care you're not home and you're only packing for food or he'll deliver some food to you I don't care you're not spending money but you need to work whether you get a certificate and then work in like Tech sales something like that just something you can do on the side do something like course squares or you go work at a coffee shop or you deliver Uber is in your car I don't know do you want to put more miles and maintenance on it I don't think so but no whatever you can do in service still wants to hire even though the job market has gone a little woo right now service still wants to hire they're still trying to backfill for what it was like even pre-pandemic so you need to work your butt off Tulsa is a good enough size city that you can go find a restaurant yeah absolutely boy I don't care yeah you've been applying to everything anything and everything and indeed yeah I've been applying indeed now about those restaurants that's worth going and talking to the manager yo I want this job come on like you can you can sometimes get I've had a couple examples of people on the show who followed my advice and they went and got a job like the day of it's crazy it's crazy and check out the other places Jimmy John's over there in my place they're desperate to hire they'll give uh referral bonuses of people who stay around for a month you know so they want to hire you just need to increase your income this this income is if you wanted to live on this income forever like we wouldn't be able to retire but I think you'd be able to survive and you wouldn't be able to retire super comfortably but would be able to survive yeah but we're not gonna make any progress in terms of paying off the debt and saving our Emergency Center we're talking like four years and four years of you having absolutely no life essentially yeah so that's not ideal no no it is not because at this point you're you know working in your 80s dying on the Walmart floor yeah that's where we are yeah and I want a better future for you agreed if you it depends how much you want a better future for yourself because then the actions that follow that decision to hit the goals that you've mentioned that we haven't talked about yet but you want goals in order to hit those figure out the actions that are required to do them and right now it's your income it's your money you don't have any what are those goals you want to have um I want to get to the point where I have an emergency fund um the 10 000 at least um I want to help buy a house with my partner um and I want to be able to have a family at some point don't get a house together or be on the same lawn unless you guys are married just for legal protection but yeah yeah okay yeah yeah no very reasonable very reasonable um the way to get there again the the equation to your situation is your money yeah and part of my reason for even being here too is I see how my mom is living and it's just not how's she living ideal um probably pretty similar to me not as far as like income because she makes more money than I do but but it's all out the door it's all out the door um she's taking care of um my niece and it's just she has no savings like and she's never been very financially literate um and growing up we were extremely poor and all that um so seeing that in further adulthood I just don't I don't want to be there then here's the thing and here is the thing if you actually follow the plan we talk about today and you bring in additional income to start paying down this debt and save off that immerses fund you'll be a generational change and that's exciting yeah that's exciting your future could be so bright if you just buckle down and actually take care of yeah yeah and the goals are very reasonable those are goals that you know the most amount of people most people want to hit in this country that's you know the classic almost like American Dream type goal you can do it again just gotta gotta buckle down look but not to go back to negative but I do have to just say I'm nervous because the two checking accounts of the two checking accounts you have both started negative and one of them ended negative yeah that was a month ago not even a full month ago so I'm scared that's fair everything now depends on you do you get yours together or not yeah what are you gonna do when you leave here what does the next few months of your life look like um working trying to find another job getting another job and working extra hours and paying towards everything and letting those other ones fall off and just trying to get a better life this is what I say about the collections and negotiating that makes sense yes yes it does yeah how many hours a week are you spending applying to jobs right now um not enough okay like that's probably the correct answer so yeah it's the second full-time job until you get another job as you're applying for jobs go in say hi to the managers in these service places okay because they will sign people up the day off I've had that happen here with this show well if you get another job and you bring in income a year from now we should see major progress so we'll do a follow-up then okay okay please do not disappoint us please don't be a positive story but what matters from here is actually just what you're gonna do depends how much you're gonna buckle down or not are we going to be starting an ending checking accounts monthly basis with negative money you've received the mental health you want you've received the mental health that you've needed in the medical help now receive this financial help and just improve your life's Jurassic Life drastically all the way around any final thoughts just do what I do and don't let anything go into collections for Danny it's gonna be a long road ahead but it could be much shorter if she just brings in some more money by getting a second job a third job before a job and just working like crazy for her Hammer Financial score right now spending this is what's going to push it up a little more than anything yes she was overspending for her situation but it still wasn't crazy compared to a lot of people on here three out of ten and that I mean if we're this much in collection it's not going to be better than a zero out of ten retirement is nothing zero to ten emergency funds barely started so one out of ten real estate absolutely nothing zero out of ten for right now it's not a zero out of ten it's a 100 ton make sure to check out in the resources I have linked below like getting a free five dollars for acorns they're getting the best yield high yield interest rate I can think of so it's all down there I linked the resources I've partnered with them that way I can get you the best resources possible don't break up the phone my Instagram and Twitter thanks thanks to Sofi for sponsoring this episode view rate for a sofa personal loan through my link sofi.com forward slash Caleb Hammer with no impact your credit score and no commitment

Channel: Caleb Hammer

Views: 414,395

Keywords: crypto, graham stephan, meet kevin, make money online, biaheza, shiba inu, how to make money, finance, financial education, inflation, personal finance, day trading, ryan pineda, compound interest, student loan forgiveness, mark tilbury, dave ramsey, the dave ramsey show, financial independence, budget, elena taber, ramsey, biggerpockets, the plain bagel, how to invest in real estate, budgeting, budget money debt cash, real estate investing, dave ramsey show, dave ramsey live

Id: 4rv2FLIeqAM

Length: 47min 17sec (2837 seconds)

Published: Wed Jun 14 2023