Dave Ramsey Was Wrong, Now She's F*cked | Financial Audit

You're, 000 hours of bed. You're going to double your home. What are we doing? Oh, you're full Americanizing. You're full Americanizing. I've watched David Ramsey for a while. Is what you're doing working? Then shut the up. My husband works extremely hard. Congratulations. You guys are completely Download my budgeting app today and take control of your money once and for all. And for a limited time only, sign up for the annual version of Premium and get my cookbook and notebook signed and mailed directly to you. link in the description and pin comment below.

I'm Nikki, 27 from Paris, Texas, and this is the financial audit. The financial audit, she's here. What do you do for a living? It's a long title. I'm a technical support relationship manager for a veterary laboratory company. Okay. Are you just customer support for a product to a vet clinic? Not necessarily. Um, I would say I'm more so relationship management for like software, multiple different lines of software. What do you make? Uh, salary. I'm at 70,614. Not bad. You say salary. Are there bonuses? There is. Okay. What do you make total? Uh, so my bonus I get once a year and it's about I think it's 3% of my salary. So this last one was about $3,000 and then after taxes it was about 1,700,800. Okay. Okay. So, it hits your account on a monthly basis. Is does that Oh, monthly basis. And then that salary or that bonus that just says once a year? Yes. Okay. So, what I have a guaranteed raise and bonus once a year in March. What's the raise percentage? It's uh So, oh gosh, I think my raise is 3%, the bonus is 5%. Okay. So, it's like cost 11 living raise. So, okay, that's fair. What your account on a monthly basis? I make I get paid bi-weekly and it's 195511. Wow. Down to the cent. Okay. So, $3,91022 in a smaller town in Texas should be relatively affordable. Why are we struggling? What's going on? Why are you here? What are we talking about? Uh, years of repeated debt cycles. Cycles. Cycles. What? Tell me. They've been paid off multiple times and then maxed out again. Paid off. Balances occurred. Uh, yeah. It's a repeating cycle. When's the last time you've done this? I paid almost everything off right before we moved. I got a debt consolidation loan and paid off a lot of stuff that had high interest rates and then the move acquired some more cost. So, back in the same cycle. Move. Where did you move from? The Bay Area, California. Okay. I mean, it's kind of big. How much did you How much did it cost? So, like you can do moves cheaply. People just refuse to. So, we actually did it all by family. Um, it's been four trips now that's been done over the last year. Well, what the So, the first entire family's moving. Is that what you're saying? So, it was myself, my son, my husband, and my dad. Whoa. Whoa. Hold on. Okay. Kids and husband. Yes. How was the kid? Three. Okay. Does the husband make money? Yes. Am I looking at his finances today? Are you guys together? We are together. I believe some of his finances. Okay. What's his takehome? Uh he gets paid 1925 an hour, gets paid weekly. Uh his paychecks have been looking like 640 a week. Okay, so we're talking an extra $2,560 on a monthly basis. So why extra are we struggling? That doesn't really make sense. I understand the repeated cycle, but why are we not breaking it when we're making decent money in a small town? Why? And why is it taking four trips to move? Why are we just compacking everything up and just going getting rid of most of the we have? We have so my husband and my dad are both like longtime mechanics. So they have a lot of like bigger equipment that has taken local trips. Um forklifts, air compressors. Does it have to do with his job? Not right now. I personally don't give a like put it in storage there or something. Put it on like you know. Well that's the problem. Some of it is in storage. That's a problem. Yeah cuz that's a monthly cost. Yeah. But how much? So it's not necessarily My dad's paying it cuz it's his storage unit originally, but some of our stuff is in there. But yeah, it's about $300 a month. Why do you need He doesn't need all these extra toys though. Need sake of family. Kid, 5-year-old, right? Three. So, we don't need a you know, whatever. It's not an excavator. It's a forklift. And the goal is to have our own shop eventually where they can shop. No, where they can work on vehicles and motorcycles. That's [ __ ] so expensive to get up and running. We have everything though except for a storefront and putting like 3 months down a commercial property, signing a threeyear lease at a minimum. Mhm. I starting utilities, all that stuff. Definitely more cost, more loans included. But my dad and my husband will not let that stuff go. What? The Oh, the stuff. The stuff for the shop. Great. So, yeah. But yeah, four trips. Won't prioritize their family. Okay, great. That's wonderful. It's your dad's inc and your dad came out. Yes. What? What? What? What was this movie even for? Where did he come from? So, my dad was homeless living in California. And so, did you tell him to stop? Stop being homeless. No, I was just joking. Why was he homeless? Uh, my parents split. It was a very nasty split. Why didn't he live with you guys? So, I actually moved into my childhood home that my mom owned. So, I was renting from her. So, my dad was not allowed there sake. Yeah. Hence the move across the country. Why did the across the country help though? Cost of living so much cheaper here. And yeah, but that also means incomes are as well. Well, okay. So, I got a raise living in California because they raised the minimum wage. So, I'm getting paid California wages living in Texas. Yeah. Yeah. Your remote situation is pretty good. But, and we move solely on my income. Your husband's going to make less here. Dad's going to make less here. Anyone has to get a job here. Is he illegal? Is he broke? He's disabil He's on disability. Broken. Okay. Yeah. So, he if we were to open a shop, his whole thing would be like sitting at the counter doing parts, inventory, things like that. My husband would be mechanic in that aspect. He can't be There's a lot of jobs that aren't just physical. I do this job and I sit on my ass, right? So, so do you guys What's the hard What's the heaviest thing you've lifted Jake earlier? A cup of coffee. It's been hard to find something that allows his accommodations. He can really only work for like two hours at a time. Okay. Well, I don't know his whole context of the situation. I don't need scene. So, um Okay. So, you got an apartment here. We own our house. You bought a house here already? So, that's included in this debt. Yes. Oh my. You have so many individual debts. This is insane. What do we have? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18 17 before the mortgage. 18. Got a house. How quickly did you get a house? So, we were working with our real estate agent for about a year prior to buying this one. And we were moving solely on my income alone, not my husband's, cuz he didn't have a job established here yet. When's the last time you did a consolidation? I believe that was in 203. And how many have we done in this cycle of just So that was the only one, but I'm considering doing another one. It didn't work last time. It did until you're in so much debt. Yeah. Until the cycle came back. So it didn't work. What are you talking about? It worked to pay everything off to get us moved. Yeah, but that doesn't mean anything if we're back to where we were before, if not worse. It's like, no, it's a temporary temporary happiness. Did you pay off your consolidation like that? I paid it off early. I didn't pay it off that. Then that's not your debt just being gone early. That Okay. Then that's not your debt just gone. It was just debt moved. Did you realize that, right? Especially since you're considering this again. I am considering it just because the APRs on the credit cards are so high and brutal. But again, look, it doesn't fix your behavior. How did you get here again? How'd you get here again? Self diagnosed. Was it the move? No, not just the move. Even though we're doing four moves for some reason. And we have $222,000 in bad debt. 80,000 or 80,000 of it is bad debt. One's a mortgage. And I doubt the rate's super low knowing today. So, so how did we get here? Again, part of it was the move. My husband didn't have a job for the first two months that we were here. Um, so I had to carry everything on my shoulders. And then You guys didn't have an emergency fund. We don't move without an emergency fund. We don't get a house without an emergency fund. The emergency fund got emptied for the move. That's not the emergency though. I'd rather put pops up in an apartment, you know, monthby-month apartment while we save up a fully funded emergency fund. Well, one of the vehicles that we moved with, the transmission went out. So, had to get that fixed. One of the vehicles we moved with. Yeah. How many vehicles did we move with? So, because what if we just like say, "Oh, okay. Maybe that one's not worth it." So, we did sell them once we got here. We sold the Suburban to a friend with Did you make up the cost of the fix of the transmission? So, we agreed to do payments. However, we have not We agreed to do to who? To a to a friend. Yeah. Thinking it was trustworthy. What do you mean? They lent you money. No, we sold the vehicle. Oh, no. I'm saying have Oh, yeah. But like for what number did you sell it for? I believe it was 2,000. How much did you put into the transmission repair? So we spent about $1,000 trying to repair it. It still did not work. So we were like we're not going to We haven't got any of the 2,000. Any we got I think 300 400. Okay. Over the course of what? Since then how did you guys So we sold all of our vehicles. Yeah. So, how are we going to get around that? So, if we've been through this cycle so many times, why are we buying new cars? Were they in cash? No. Why were we buying new cars when remember when we just had the conversation? I had to I had to supplement the whole house because husband, we didn't rely on his income, but we just got new cars. Getting new cars, but we can only rely on one income and moved across the country cuz also one of the people we're with is homeless. We're getting new cars. Used cars. Not brand new, but we needed a car so he could go to work. You had cars. You sold your cars. Cost. He couldn't get to work with those. Any of the cars. A singular one of those cars. The only car that we had. I want to see him driving that forklift on the side of the road. Then it's not a drivable forklift. It's a pushable forklift. It's manual. Oh my gosh. Okay. How much were these cars? So, my my car, my SUV, I think we paid 24,000 for it. And the other he got a truck to help with the move with the last two moves. If it's for a move, then rent a truck. What did we buy a truck to help with a move? Well, we also have My dad has a boat, so his boat. Sell his boat. I don't give a [ __ ] He's homeless. He can sell a boat if he's homeless. I literally you're gonna I'm gonna lose sympathy if we have an asset that we can sell for thousands of dollars. It's not worth thousands of dollars. It's not worth at least thousands. No, it's worth a thousand. Then we're not buying a truck to haul it. It's a happy place for us. Growing up in the Bay Area, I was always on the water. It's not going to sink. Okay. They could probably get a couple thousand at least, right? What is it? Aing likeing what is it? I think it's like an 89 jetboat. But I don't know. But we're getting a truck for it. I don't care. Again, put it under dock here. Well, my husband bought the truck and that was 28,000. Oh, for sake. The guy who didn't have a job that we're relying only on your income. By the way, three-year-old. He has a job now. But you guys were relying just on your income. We bought the truck after he had a job. Okay. What did you say his hourly was? 1925. Okay. And we're getting a $30,000 truck that he doesn't need. Yeah. for a move. Well, and other things. Join a boat club here. You get better boats anyway. It's probably cheaper. There's boat clubs. Yes. I didn't know that. This is You get access to a bunch of boats. I don't Let's see. Might be something to look into, but that sounds like another debt. It's not a debt. It's a monthly payment, but it would have saved you from a $30,000 excuse. Well, we also have trailers that we tow around and do side jobs. Stop. Stop. That's extra income. Extra income. How long until that in extra income equals $30,000 plus the interest that acrewed on the truck? Exactly. You're not doing the full math behind it. You're justifying if I can go make an extra $5, I can go spend $30,000. Like, no. Look where you are. Is what you're doing working? Is what you're doing working? Not. Then shut the up. Obviously, like that's how that works. Like if that was a savvy business venture and everything you're doing is okay, you wouldn't be on this show. My husband works extremely hard. Congratulations. You guys are completely cool. And you can get things that are nice when you are disciplined and you pay off the debt that you got here. Should we ban that phrase from here? Like that's why you're here. What? What? Because I have paid off things before. I've watched David Ramsey for a while. I know the snowball method. I've been working on that. You've watched who? David Ramsey. David Ramsey. Yeah. And that's how I got some of the debt paid off before. David David Ramsey. David, I hope you're watching this. But I I've watched like the snowball method and stuff like that. Had things paid off before. And then life happens, debt cycles happen, and we life the he works hard. We went on something nice. That's what happened. Life happens. Excuses happened. Excuses do happen, but it's part of happened. Yeah. And we can make excuses on some things, but I can have an excuse to go have to talk out there, but it has a little less consequences than you going 80,000 hours in bad debt. This is a different level. This is a different level. Excuses happen. What do you mean? Okay, excuses happen. Congratulations. Go. They're justif excuses. Goodbye. I'm here to give you no no. It's not that. I'm not kicking you off, but what I'm saying is excuses happen. Cool. Keep that mindset. Like, we don't need to have a conversation. Keep that mindset. If that's the life you want to live, if that's the life you want to live, then live that life. Then why are you saying it? Cuz you just said it's justified. You guys are house shopping now. We are. What are you doing? So, so what world are you doing? We bought our house. David Ramsay would not agree. So, we bought our house and never saw it. We saw it an hour before we signed our closing papers. So, what's the current state? Not good. We've done a lot of remodeling and a lot of repairs. That's where some of the debt came into place, too. Um, I don't usually like to start with real estate cuz it's boring. But, let me just get a quick thing on it. Like the Home Depot cards, that's repairing the house. Oh, repairing. Why? How was it? Bad. Um, like I will never use that inspector again. I've seen I get it, but why didn't you? Well, I do multiple inspections. Why didn't you? This is such a huge purchase. Okay, we're cutting the address from the video, but what's the address? Okay, what was the purchase price of the house? 144. Okay. How much did you put down? Uh, I think it was like $10,000. I think it was like 5,000 for the down payment and then 10 like another 5,000 in additional cost. You know, it's only worth $144,000 right now. Says Zillow, which usually overestimates houses. I just got my appraisal papers came in and they said through who? Through the county. Lamar County Appraisal District. No, that's his taxes, right? Are you talking about your tax appraisal? Maybe. No, that's not that that's going to be a different kind of appraisal than you're going to get when it comes to Well, the lender also did an appraisal. Okay. A virtual appraisal on it. Okay. That's also doesn't count. There's going to be an official appraisal that happens. All right. Like the the buyer's likely going to request that. Yes. And uh well, the bank if they're taking out any kind of loan. So, they will they will contract an official appraiser to do it. And it's not a virtual thing. It's not perfect, but whatever. What did you hear? 194. I highly doubt that. Well, so when we bought the house, everything was original from 1981. The internal renovations of houses aren't doing as much these days anymore. It could help a little, but it's it's really the land. The land It's on a third of an acre. Well, I know I'm seeing the values of it. That's part of the tractor supply built, too. Well, I I hope so. I hope it's worth that. Um, it sounds excited or you sound excitable about it, honestly. And here's the reality. We're in a buyer market, not a sellers market. You do not have the say in this. Like, you can market there. That likely being overvalued is actually going to hurt you worse because you're going to get less people making offers, meaning you're going to be on the market longer, meaning psychologically people start seeing something wrong with the house and they see it being on the market for like more than 6 months and all of a sudden no one's going to be even seeing your house cuz they're going to see think something's wrong with it. This is what happens. This is what happens when my real estate agent already has three people interested. Interest is nothing. Interested what? In the house. Like in what way? In buying it. What? They've seen it. They've toured. They've seen pictures from the outside. And then from what the real estate agent has told yourself, you're getting ahead of yourself. It's that virtual appraisal. It's this. Trust me, someone who's been in the buy sell game many of times for houses, those little exciting things. I remember being excited about those as well when I did my first. And then I realized it means nothing once until you get an official appraisal. It doesn't even matter. You don't even know what they're going to They might be interested in it. They might be interested in buying it at 150. Okay. I might be interested in buying a house across the street. Maybe not at the price they want. That's when looking at comparable prices cuz there's multiple houses on my street for sale. Yeah. Like if you're on Zillow, I think there's one on like 240. Don't say that. Don't say the name. Sorry. I I see the 240. Yeah. And then there's another one down the street for 240. doesn't that's not a comps. You know when they do comps they do comps on sold homes not for sale homes. So there was one that just Okay. Tell me about they probably have a working HVAC. And you don't have a workinging HVAC. No. Okay then. So that's one of the things the inspection didn't call out. They said that it's working. It's not you didn't get a specific HVAC inspection done. I didn't know. Oh people go through a real estate class. Y'all go through a real estate class. I really wish I other ones that's worth 230 is like literally 30 30 40% larger than your house. So it's actually 50% larger than your house. So that doesn't, you know, it doesn't fully equate to what we're looking at here. Now it's Texas public record of terms of what the sale price is. We can't see. If you have access to the MLS, that's where you can see the official sales price. But I don't know. I just think you're a little too ahead of yourself. I'm not Oh my. You guys put in an offer on a home. So, it's a contingent offer. Contingent on once our house is in contract, then the seller accepts our offer. Is there a time period? So, the seller of the house that we're looking at has to go back to Arizona. Is there a time period between that where it avoids that? No. No. No. No. No. No. Where it's like if you don't sell your house by then, uh, you we're going to deadline on it. Really? Have you signed the contract? No. Oh, again. We're ahead of ourselves. Yes. This is just an endless We're ahead of ourselves. Address to the new place. Three bed, three bath, three acres. No. No. Okay. Well, maybe I can't find it. I'm like, I think is it listed for sale right now? Yes. Then I should be able to find it. Yes, it's in there. So, this one F. Okay. Demonstrate. This one's much cuter. I'll be honest. It's listed for $309. Guys, you can't even afford your [ __ ] current living. You're $80,000 of bed now. You're going to double your home. Oh, what are we doing? Oh, you're full Americanizing. You're full Americanizing. You upgraded home before you could even afford your own lifestyle. Going out to eat itself was nearly $700. It's like unknown shopping was $1,300. You can't. You guys couldn't afford to move your still. Okay. From the previous and we're looking at doubling our house. No. No. Okay. What was this agreed purchase price? 309 even. Okay. So, looks like Zillow's not wrong in this area. Okay. Which means they're likely not wrong on yours. And the only reason why we put in the offer at 309 is because of this contingent offer. Otherwise, we would have come in probably at 290. Apocalypse bunker. Mhm. Let's talk about student loans. I know it's something we all want to avoid talking about, but if your private student loans are crushing you, why refi might be exactly what you need. They don't rely on your credit score alone. They look for borrowers who have the desire and ability to repay. That's a gamecher in a market where most lenders only see a number. Interest rates under 6% guaranteed. 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And they want us to put in a contingent offer using another FHA loan and then using the equity from the sale of our house as a down payment for that house. And then I talked with another lender just to kind of compare things and they talked about a conforming loan. And when I reached out to my real estate agent to learn a little bit more about it, she said it was an FHA loan, but the credit union I was talking to with that one said that it wasn't FHA and that it was like a Fanny May loan. So, I got really confused about all of that and just Fanny uh Well, yeah. I mean, this is it's one of the government holders. Uh that that that's not a big uh my thing is are you going to have two why not get qualified for a second FHA while you hold the first FHA is the issue. So, we are pre-qualified right now. Pre again, this is you getting ahead of everything. Pre-qualification pre-approved or something like that. That means almost nothing. The underwriting process is what exposes everything. You can get pre-approved for mortgages like this. It is so easy. We could Lindsay could literally do it before the end of this next sentence. Like, it is so easy to get preapproved for a mortgage. It's nothing. Like, I submitted all of our payubs, everything. Um, credit reports or credit scores and all that. They ran a full credit report. Yeah. Well, yes. Again, it's the basic stuff. Every everything you're talking about is like the pre before the real thing happens. Okay. I don't know. You might be able to get into it as long as they at least know you're getting your last one, but uh but usually but typically lenders verify that the first FHA loan has been paid off completely before allowing you to get another one. I don't know, man. I think you're a little ahead of yourself here. And why do you think you're able to double your living costs? Our goal was to use some of the equity from the house to pay off some of the debt. So, some of the equity that we might not have your contingency offer. Does the contingency rely on you making money on the last house or just selling the last house? Cuz you might not actually make equity, especially after you you lose 6% on seller buyer commission. And then you also get any capital gains. By the way, if you do make profits, you haven't lived there for 2 years. Yeah. Capital gains. Get ready. Nom nom nom. It's going to get you. Did you know that? Were you expecting capital gains? No. Oh, that's a big chunk. You haven't been there for two years, right? No, I went in there a year. So, there's that. And then you're going to have uh closing fees and a bunch of different So, so honestly, you're probably going to have to sell. You put five down on it. Okay. It was what? 250. What was it for my house now? What was it? Yeah. 144. 144. Mhm. 144. Probably going to have to sell it at 175 to break even. I feel like that's doable. The only thing Yeah, that's break even. There's no equity that you're throwing into something else. So, how are you putting money down on this next one? So, it's going to be from the equity of the sale of this house. So, you're relying on that? Um, cuz this is what the lender and I have talked about. That you talked about before you've even entered underwriting. This means nothing. This means nothing. You are so pre pre on everything. Pre pre pre. No, actually before you even go do this, go through our real estate course. That's the most recent one we've done. You get it for free. You need to learn a lot about this right now. I'm a little scared that you're getting way too ahead of yourself. And even if you get into this other one and you get the FHA loan, which allows you a little less down, that is still a higher minimum payment. Like how the worried about worried about no, it's double the house. Yeah. How do you think you can possibly afford that if you have $80,000 of bad debt and you can't even afford to live? You spent more than you made last month. Did you know that? I didn't. Well, you did. Congratulations. Cuz that's debt, lady. That's the household, by the way. The household of the three-year-old. Remember that one? Yeah. Okay. So, how do you think you can live that life? My dad has also offered to help with rent cuz now he doesn't. He helps with like child care. like he'll help out, watch my son if I have a really important meeting I have to do or he'll pitch in on some groceries or something like that, but I don't I don't ask him for anything cuz he's on a very set disability amount and Okay. Well, that's okay. And so he just kind of pitches in where he can. Um but he agreed that if we do move to another house, he would like to pitch in. I see you said it's 7,500 to replace the HR and furnace. That is better than double the house. Yeah, that is better than double the house. I'd rather you have a $7,500 potentially interest free loan than a house where you're only putting a couple of percent down could go under value and a minimum payment that we can't afford which puts us underwater in a situation you might not be able to sell cuz who knows what's going on with interest rates. We're in a weird hold period because right now we've had all kinds of crazy quotes all over the place with interest rates. This makes no sense. I have notes that you track what bills are due each week. You have a dad tracker in your phone in your notes app and you update it once a month. You're in charge of all the finances in the household and you're very frugal. Then you have all this bull spending all these like you guys are spending more than you make. You didn't even know that we have horrible debt and you're thinking about getting a house you can't afford. This doesn't make sense. Those things are so conflicting. Make that make sense for me please. I can't even make sense of it. How aware is the husband of the finances of the house. How involved is he in the conversation? cuz it sounds like you I try to sit down with him at least once a month and be like, "Hey, these are our bills. Let's go over everything. Let's figure this out." What does try mean? He pretty much just leaves everything up to me. Is he informed at least? Oh, yeah. I update him all the time like, "Hey, the water bill is $114. I just paid that with your check." Um or whatever the case may be. Like I tell him about every time I'm paying a bill. All right. Where do you think your household financial score is? 0 to 10. Zero being the worst, 10 being the best. Where do you think you stand? Probably a one. Go watch out your Hammer financial score. See where you are in the world of finances. I'd be happy to assess you. Take the assessment at caleb.com. Go to calebmer.com/apply to come be here on the show. And don't forget, if you download my budgeting app in order to not be a guest on this show, it'll help you a lot. And those who sign up for the annual version, you get my budget friendly cookbook signed by me and sent directly to your doorstep. What is home inspiration? What is this card? Ashley Furniture. So, not only could we barely afford to get the house, we only put a few% down and now we can barely even afford getting a new house. We went on, we got a Listen, I'm going to be very clear. You want to know how you look at life? You want to know how you look at life? So, I I'm going to let you in on a little secret and a perspective you probably haven't thought about. You put more value into feeling comfortable in seeing things that you like. Because this that you finance for your own furniture, guess what? It's the cost of the new HVAC and heater. But you chose furniture. Beds. Beds. The kitchen table. Yeah. You did not need I slept on an air mattress for 9 months when I moved down here. Me and my son and my husband slept on a queensiz air mattress for months. There you go. This heating in Texas or well AC in the heat of Texas. We don't [ __ ] with that. Especially when someone could die from it. Your dad. Well, when we first moved in, it was kind of cooler outside. So, the HVAC system was running at like like it would put out like 72 70 and then once it started getting hotter, we realized it was not working. Basically, it was circulating air. It wasn't actually cooling. When does the interest rate period end in this? I'm not sure. Okay. You're the one that's tracking the finances, though. So, you're the one that tracks all the bills. How do you not know? I don't think there there is a period where it ends. This is a fun one. I get to get you free money and then I get to get myself free money. It's a pure win-win for both of us. What do you have to do? Sign up for a SoFi high yield savings account and get a welcome bonus of $300. Sign up for Acorns using my link and get $20 instead of the usual $5. Finally, sign up for Silo and earn up to $5,000 in cash back on your own stocks. These offers have been negotiated to give us both more money than using traditional signup methods. So, use the links in the resources section of the description below and get yourself $5,320 right now. I've read over every statement, every contract that I've had from getting the furniture and there's no like, oh, at this point the interest rate's going to jump up to this. Like other ones say that we're like, you get this 0% interest rate for 6 months if paid in full or whatever the case. You called to ask. I have and I've called Ashley and they're like, you need to call Home Inspiration. Yeah, it's not through Ashley. So then I've called Home Inspiration and can't get a direct answer from anybody. They keep transferring me and so that had me a little suspicious. And then there's also three different login websites to pay my bill that are all different links. So it had me very suspicious and cautious. And so that was another reason why I was considering taking out the debt consolidation loan so I can get rid of that and any Well, it's not the consolidation loan, dude. Listen, it takes six years to pay off minimum payments only. And we know that these period most of it was 60 months, which is 5 years. So, defer, do you know if interest is deferring? I mean, usually on these type of cards, they do. Listen, you're right. This statement is quite bare. It doesn't show a lot, but the fact is six years to pay it off, but it's five years, five equal payments from when I even started. And this was like a half a year ago, right? Mhm. So, you will not pay this off in time before the interest just hits. Like, I definitely like How many times have you called them? Be real. Probably like six. Cuz we went in there, bought our beds, and then bought a couch that was on sale. And then I called in after that and was like, "Hey, like how long of a period do I have on this?" Or like, "You need to call home inspiration." So, I called Home Inspiration. They're like, "Oh, we have to transfer you over to this department. Get transferred to that department. You have to get transferred over to this department." Oh, I got you. Maybe we'll try in a little bit. Care Credit. What's going on? I despise Care Credit. Um, dog bills, dental bills, medical bills. When we first moved here, my son got bit by something and we had to go to the urgent care and then to the emergency room. And that was You have dog insurance? I do. What's your insurance for the kid? Uh, it's through my work. It's Etna. Mhm. That is not bad. But we to go to urgent care. It was like $180 for like a 15-minute visit to be seen the first time. Sure. And then the next day they said, "Oh, you can have like a free follow-up with it within a certain time." I go in there, they were like, "No, you're getting charged because this is a sick appointment." Another $180. This is at $3,000 practically. Well, no. And then they're like, "You need to go to the emergency room." So then the emergency room bill was 2,000. That's that's interesting. And then I paid some of that on my health savings account card from work. Was it in network that emergency room? Cuz that Yes. Okay. Mhm. Well, yeah. I mean, we just had different insurance via Edna. I guess that was not I mean my co-ay I didn't realize I have a high deductible one. My deductible for it's like $4,000. You didn't know? I didn't. So you don't sign up for the plan you want to. So when I was filling everything out, I was talking with my colleague about it and was like, I've never had like in California, we were under the poverty level. So we were on medical state insurance. I've never had You were under the poverty level making 75,000 hours a year. That was before I that was before my raise. And my husband was his job there was just inconsistent. Sometimes he would get 5 hours a week, sometimes he'd get 40. What have you guys been doing in life? Like work floundering. That's the easiest way I could say. And you don't seem like a person that hasn't had opportunity. Like I'm Did you go to college? Are the student loans in here? I My student loans were covered by FASA. So you went to college? I went to trade school. I have a associates degree in the poverty line. Well, what about the dude? He didn't graduate high school. Okay. Um so he a GED. He we ended up he he's going to run a business, but he can't run his life. He has um a high school diploma now. Okay. Well, it's not about the diploma for running this business. I don't care about that. So, the fact that just like look where we are and he now he's going to have to manage a business financial which is much more complicated. Well, so they're like the financial part is going to be on you. And I was like I really don't want to do this. Not only that, but you probably don't have time. No, cuz that's kind of I salary. So sometimes I work 8:00 in the morning to 8:00 at night. Sometimes Do we have pet insurance? Cuz these were pet bills. I just stopped it because they tried to raise the premium for two dogs to $270 a month and then they're like, "Well, we can raise your deductible and they'll make your monthly payments." Well, you go and get a different pet insurance, right? So, they have chronic allergies. Um, so it's considered pre um like if they already have it, predisposed or whatever. So, other insuranceances won't cover that. But with my history being in veterary medicine, I've got their allergies pretty under control now and can manage it pretty easy. And when they do have a flare up, it's about $200 or $300 to get that taken care of. So this is at $2,6792 with the $92 minimum payment. You made the minimum last time $64.76 of interest. How long does this take to pay off? Minimum payments only without anything else being put on it. Takes forever. How long? like years, like three years. Okay, add a one in front of that three. Oh, that's disgusting. Yeah, but I still I don't know what to do without the care credit. Like, I want to have that as like a safe emergency fund. And we get an emergency fund by not spending uh $500 a month going out to eat or whatever it was, plus more on We don't get an emergency fund by getting a house that is double the cost. So, we don't get an emergency fund by holding on to equipment and storage lots back in California. We don't get an emergency fund by continuing to go into more debt and spending more than we make on a monthly basis. But you need an emergency fund that gets rid of credit care credit cuz then you just use an emergency fund for emergencies. But we don't do anything necessary to get the emergency fund. Not currently. I've had an emergency fund and then drained it for emergency. I don't give a [ __ ] what you've had in the past. I really don't. I care about what's today. I was a delinquent back in the day. So, what do you do when you have an emergency and your emergency fund's already empty? Care Credit. Yes, but I'm talking about how to get to an emergency. You're not living the life that is necessary to get an emergency fund. You're about to get a house that is double. You're almost about to sign a contract to get a house that is double with contingency, which let's see if they even agree to that. What's an emergency fund to go? I would like to have like 3 to 6 months of like regular bills. Okay. So, David Ramsay did say something similar. I would do 6 months preferably, but why haven't we prioritized that cuz that's what saves us. So, I had Remember how important that three-year-old is to you? Yeah. They need an emergency fund. Yeah. I had one and then emergencies happened and I emptied it. I know. But you haven't done what is necessary to build it back up. When you do not have an emergency fund, that within itself is an emergency. And we cut everything to build it back up. I have money getting pulled out from my check right now. I have $200 getting pulled out and putting into $200 is going to take forever. That's there's so many emergencies going to happen before that. So $200 savings. Good job. Thrilled. $650 going to going out to eat when I'm working in the morning to 8 at night. Third, it's okay. We have to What's How How much time is daddy working? He Papa, not yours. The one you're married to? My husband? Yeah. Yeah. The dad of the child. Yeah. So, he works He was working overtime. 10 hours a day. Hour drive there. Hour drive. Tell me what he's doing now. He's working 8 hours a day. Hour drive to work. Hour drive back. Cool. He can cook. He's learning. Oh, is he going to be a bit tired? Is he going to go tired? He learned how to spaghetti. Dude, that's Dude, when I was growing up and we didn't have money and foreclosure notices were hitting, we had spaghetti and meatballs every other meal. You don't know have you don't have to know how to cook to put pasta in boiling water for 10 minutes. We do do spaghetti. We have um Well, there you go. Mission success. You figured it out. Sandwiches don't need skills. They are two pieces of bread. We do PB&J dinners quite often. It doesn't be a little better than that. You you have, for what it's worth, the money to have reasonable groceries for reasonable meals. So, I'm not against that. But it's like the only your entire thing is like I need to have care credit. I wouldn't know how to live without credit. Okay, I do. It's an emergency fund. But I'd rather put literally three times more than three times the amount we're putting towards savings on a monthly basis towards just going out to eat because we work long hours. You know why you'll work long hours? Because when you don't have an emergency fund, you have to use car credit. Meaning your minutes payments on life is higher. Meaning you need to work longer hours. I get paid the same no matter what. I'm salary. I'm not paid hourly. You're at home though, right? Yeah. You can still You can put the pasta in, dude. 10 minutes. Done that. And burnt the stove. Well, sit there. Sit at the [ __ ] kitchen counter on your calls. So, I have three monitors. Okay. Use one during the pasta cooking. Well, we've all worked those jobs before. I've worked sales trying to toggle between the different windows and do presentations where I'm sharing my screen from a laptop. Just a little text heaviness. Come on. This isn't brutal. Come on. That's going to be a dumb excuse. That's going to be a dumb excuse. It's a realistic excuse, though. When you're trying to have a meeting and you're presenting screens. Yes. I that we've all done this and trying to cook. My work would not like that. Okay. I guarantee you have 10 minutes in the day. Guaranteed you have 10 minutes. When you're like chilling with a three-year-old, you said you're equally stay at home mom. Try to be him. Well, there you go. You can do pasta during that time. We can do BLTs during that time. And when I do cook dinner, that's what happens. Crockpot. I do a lot of crockpot. Okay. Well, you do a lot of going out to eat. I do. $650. So, more crock-pot. I mean, your entire thing is I work long hours, so I don't cook. So, we do $650 going out to eat. No. You get an emergency fund. You don't have an emergency fund.

HVAC died. Uh-oh. Need an emergency fund. Don't have it. What do we do? Kid got bit. Don't have an emergency fund. What do we do?

I pay some of that on the health savings account. Well, that part's good, but obviously it's not enough because you're using Care Credit. You need an emergency fund. It's not about this health savings account. I'm glad you're doing that. Tax advantage. Yeah, that's great, but obviously it's not going far enough. And obviously, you no longer have the room in your budget to throw more into the health savings account.

Okay, let's put this Capital One Kohl's card. We really need a Kohl's card. So, the Kohl's card was, I believe, one of the first credit cards I got as an 18-year-old trying to establish credit. Um, everyone was like, "Hey, you need to build your credit, get a credit card." Sure. But this was 9 years ago, and I see a balance of $2,461.17. That's one of those ones where I've had it paid off multiple times. And then close. So, what is going to change this time? You're considering a consolidation. What is actually going to be different? Please pitch it to me. Pitch your consolidation. I don't want to close the cards. I'm worried about my credit history. You will open them up again, though. You will open up another credit card. A credit card will show up in the mail. You'll open it up. Look at your history. I don't do the credit cards that come in the mail. Fine. You'll open a store card. Listen, the thing is based on your history, I just have no confidence you wouldn't open a card. I want you I do want you to close the cards. I'm not against that. It's more about the spending, the behavior. It's not just the act of closing the cards cuz then you'll just blow everything in your checking account.

So, my habit with the cards is I've had a card close on me for not using it. So then I was like, "Oh, I have to use a card to keep my credit established so it doesn't close and tank my credit history and tank my credit." What even is your credit? What? Because I mean, you're applying for a mortgage. You haven't gone through. It's not great. It's 659. Yeah. So, not even favorable rates and an unfavorable rate market is coming your way. Do not get this house. I understand what you're thinking, but I I move laterally maybe, but Okay, go on. Please pitch me on this.

So then the Kohl's credit card, they did a thing where you can use it anywhere. The Kohl's. Yeah. Yeah. Okay. Yeah. Just It's a Capital One card, honestly. So that paid for gas and food. It's at the credit limit right now. Yeah. What the Why? That was one of those cars that we used to move. How much did it cost this move? About 4,000. So primarily on here then? Gas and food. That doesn't include the things breaking the total cost of moving. I'd probably put us closer to 6,000 so far. But that means you said you drained your emergency fund for that. If you drained your emergency fund for 6,500, you didn't have a fully funded emergency fund. Not at that point. So then we're not moving. We needed to get out of California. You did not. But you could have put him up in a month-to-month place. We couldn't even afford our rent. How much was your rent? 1,500. Yes, you could have. My husband, his job again, sometimes he's working 5 hours, sometimes he was working 40, 60. Like, it was all That's not a flee the state situation. That's a job searching situation. We also couldn't stay in the house. You made the same money you made now. Why? My mom was moving back into the home and she wouldn't let you live there for a few months. The bill of I'm not saying stay there. I'm saying get a fully funded emergency fund first. Yeah. Well, we stayed there a year over what we were supposed to. Cool. But we have an open and honest conversation. Hey, we need six more months just to get to that savings for the Is does she love you? No.

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We actually went no contact. What the Oh, cuz you're supporting Dan. No. Well, part of it. Um, why is she? So, we're talking now. Um, it's not a very healthy relationship. It's never really been healthy. Why did she let you stay there then? It would be a weird thing, huh? To control me. Well, what was she able to do to control you? She used the house to control me. I'm coming to my house to see my grandson. We're sick right now. Were you keeping her away from your grandkids? We were sick. We had COVID. I didn't want anybody coming over. I didn't want anybody exposed. Well, I guess her choice if she wants to get sick, right? And then her weird, but choice and boyfriend is we don't like him. Why? Uh, he showed up to a family dinner that he was not invited to or supposed to be there. He's cheated on her the person. Well, he just showed up to a dinner. I don't think that's a cancelable offense with a gun. Illegal? No. That's a bit weird. Yeah. Okay. Go on. And then he's also cheated on her multiple times. That's not good. Okay. So, he's cheated on her with messaged me telling me I'm Why are you cutting off the grandma though? Your mom. She allows it. She keeps going back. Oh yeah, but what if she's being manipulated in the same way that you're saying you're being manipulated by her, which she probably is. And we were just enabling each other. Yeah. I finally had to put my foot down. I can't do this. Cutting contact isn't fair. Well, and she also had really bad alcoholism. Jeez. Okay. Yeah. And it got to a point where she was screaming at me in front of my son and I was like, we can't do this. I agree. I agree. I agree.

Well, it sounds like the move was okay, but still you did not have it fully in front of emergency fund. We really suggested like you did and it was drained before you moved. We were just trying to basically flee. But you didn't have a fully funded emergency fund. Not fully funded. No, it was started. Yeah. Okay. So again on this card, $2,461.17 minimum payment $89.63 or $63.96 of interest accruing maxed out 13 years to pay off minimum payments only, which is all you're doing. Actually made a little under your minimum last time. I think my minimum just went up on that one. So a 30.24% interest rate. And then I was trying to do the David Ramsey method, the snowball. Pay off the lowest one first. So I was throwing any extra like instead of making a monthly payment on a balance that's $240 or not minimal payment that if it's $30, I'm paying 60 or 100 trying to get those lower cards paid off first. Do you like his co-host like Georgie Camel as well? George Camel. I've only really paid attention to David Ramsey. Um, okay. I had a friend turn me on to him and was like, "Hey, like you need to start watching him." Cuz I was venting to him one day. Uh, he was in a lot of debt, paid everything off, was debt-free, emergency fund, like he's doing everything he's supposed to. So I turned to him and was like, "What what do you do?" And so he was like, "Hey, watch David Ramsey." Do you also watch Graath and Stefan? I don't. Okay. Just wanted to check. I don't even know who that is. It's okay. Okay. And then I found you on TikTok instead of watching all your videos and I was like, I need to conquer this debt. My goal is to be debt-free. I want to be able It's a good goal. I should do something to do it. I I I still have your spending for last month. This is what everyone does. You're saying a reasonable thing, but then your actions are completely the opposite.

Lowe's card. I understand the escape California. I'm not against that. Yeah. And the Lowe's part is my husband's $1457 with a minimum monthly payment of $72. Well, your husband did not purchase, but interest was accruing. $49. Takes 11 years to pay off. It's maxed out. No one's surprised. So, what's going on with this one? So, that one we got prior to moving. Um, the house that we're living in California was actually falling apart around us. Like, literally. Okay. It seems to be a no. ongoing pattern. Yeah. Um, like roof was falling apart. Um, the porch poles falling apart. Um, walls falling apart. Like, just everything was falling apart. Um, the kitchen had massive amounts of mold in it and it actually caught on fire before my mom and my dad bought it. So ended up having to fix stuff in the kitchen. And then after having my son, we had the original carpets in it from when we moved in in 2004. And we've had multiple pets. So we put in the LVP flooring or like that plank vinyl flooring. We found some on sale at Lowe's. But 11 years to pay off those renovations. I don't it's it'sn't even your house. I don't like to renovate. That's what we prefer. That's what we prefer, huh? Sick. Change is good, right? Yeah. What about the change in not having debt? That's a pretty good one. That's a pretty good one. Dave would would suggest so he would also suggest that you should get the Fizz card instead of any of these cards. I would do that for you. Only allows you to spend on your checking account, which is good. Okay. Yeah. I mean, this is sitting at a 31.99% interest rate. Well, some of them a part of it and then 26.99 for the rest. Yeah. Okay. The interest that's more renovations we want to do cuz change is important. Change is good, right? Change is good. Fixing the house is good. Fixing the house for necessary things that are danger. I can kind of vibe with. But again, those are emergencies. Emergency funds to take care of it. You don't do what is necessary in life in order to achieve an emergency fund. So you're allowing yourself to say that this debt is okay because you had to do it where in reality it's not because if you were just a mature person and the end you would have had an emergency fund. What did you study in college again? That technology. That's right. Okay. 32. This one's over the credit limit. This one's over the credit limit. That's my husband's three. I also have a Home Depot card. We have We each have one. What the Why? What's our obsession with the depot? We only have a Home Depot in our town. You have a Lowe's card, too? Lowe's is an hour away. Yeah, but you have a Lowe's card, too. What's our obsession with the I I like Home Depot. I don't have a Home Depot card. What are we doing? You're over the credit card limit by $218.62. $3,000. $218.62 with a minimum monthly payment of 103. These minimum payments are stacking up and then you want to double your mortgage. Good luck. That's where the debt consolidation loan kind of came in. Yeah, but it's still going to be more minimum payments and then knowing you just like you've done in the history of your cycle for the last 9 years. You're going to do it again. That doesn't fix it. A cons. You're ready to break the cycle. But a consolidation without changing your behavior first does not break the cycle. I'm ready to change the behavior. You're ready to change your behavior, but you have not yet, and you should not consolidate until you do. So, I don't know what the we're thinking about doing here, especially since this is going to 15 years to pay off. And like the consolidation loans are high interest rate anyway. And are you going to be able to borrow enough to consolidate all of this? Probably not all of it. The ones that have lower balances we wouldn't include. I feel like honestly, you're just really trying to make a reason for this new house to work. Even without the new house, I'm really just trying to get there. Huh? I want the cards gone. I don't want Why are you spending the way you do? Again, the words are not lining up with the actions. The the cards are there. Yeah, but the words are not lining up with the actions. We can start paying on cards instead of You haven't paid more than the minimum payment on any of these cards. You haven't got to those ones yet. I said on any of the cards so far. I know there's a big stack there. Keep looking. You spent $650 on going out to eat. That is not cute. That could have gone towards this card. That could have paid off a fifth of the Care Credit. A fifth of the Care Credit could have gone away if you did not go out to eat, but you did. So, that is not cute. That is not cute by any means. And part of that eating out was us going to Tennessee. We did spend, I think, like $200 eating out in Tennessee. You I don't care. Don't go to Tennessee. What are you talking about? You're my husband's grandpa was dying, so we went to Tennessee and we ate out cuz we were in a hotel. We got some snacks and stuff. I understand going to Tennessee. I'm not horribly against this with that situation specifically, but um I am very against uh I mean the you did not need to do the eating out thing when when my family and I we did like that low cost of living uh travel. We grocery shopped when we took road trip places. That's what we had to I tried to find a hotel that had a kitchenet in it so I could fridges and sandwiches. That's what we did. That's what we did. I know other people can do it cuz I went through it. Okay. Like I Yes. Go to Tennessee. Grandpa passing away. I hate that. That is so sad. I want you guys to go there. That does not mean we use it as a reason to not continue our sacrifice all around. I'm not against the travel. And I know like I said, I'm a hard ass, but we we also ate out with family. Okay. But that is different. It wasn't just the eating out with family. Maybe I would allowed a couple eating out with the family and we're all together and we're celebrating someone's life. Okay, I get that part. He is doing better now though. The grandpa. Great. So, it was worth nothing. So, the the me trying to Okay off he was not doing well. He's got cancer. It comes and goes. We really like I'm glad we went because I don't know when we're going to be back. I'm not against that. I'm against the way you did it and you're not willing to sacrifice and that's what I'm trying to change now.

I I will never understand this and you know I might get some push back in the audience for it. I I don't get it cuz that seems like a reasonable response guys, right? But I've been on the show. I've done this quite a few times and my question is then why the is it not in the statements that I'm looking at? If you would want to change something I would see any indication of it. This is what happens. I swear people get on here, we've been filming for an hour and 1 minute, they're getting push back on their decisions, and the most natural human response to say is, "Well, now I want to change." Then why wasn't there a single one cent of change before you sat in this damn chair? That's the cycle. I go I I've changed. I've had therapy. I've done all that. Dropped out of therapy. Dropped out of therapy. Yeah. Or whatever. Moved, lost a therapist, whatever the case may be. Well, most you can do remote while you're out and about, but go for it. Well, I'm starting therapy again, hence the whole Come on. You complete your entire life collapsed cuz you weren't in therapy for a second. Come on. If If you're that broken, I'm not blaming it all on my mental health and not having a therapist. What are we blaming it on? Cuz it sounds like a lot of blame outside of our own just accepting responsibility and saying that, you know what, maybe I'm not ready to change because I haven't done anything necessary to actually make ready for change before coming on. You haven't got to all of them yet. Oh, come on, buddy. I have You spent more than you made last month. The household. We have that going through all this. I don't even see how that's possible. Cuz debt. Cuz spending $650 going out to eat alone. And see, having it broken down like this, I think, helps with the desire. Of course, this is helpful. But you're not But you didn't give any indication. You could have used the budgeting app where everything's automated. You could have done that and you would have seen all this information. Your little tracking, you said you know where all your bills are. You would have known this. Okay. And see, I have the bill I have the bills alone, not the eating out or extra expenses included. You don't look back on previous months, then you're never going to make progress. There's no point of only tracking half of it if we don't know what's going on with the other half. That's that's an inconclusive picture. And I think part of it too is like my dad, he will help pay for stuff. So then I it's like a let's go out to eat cuz dad's going to pay and then he'll pay for a portion of for him. He gets about $800 a month from disability and then it's brutal. Little side hustles and things like that he can get an additional maybe 700 600. Just kind of depends on how his health is. I don't know, man. I don't know, man. I get it. And I get it looks good. I get it looks good when you say it and it makes you want to say it and it looks good to the audience when you say it and it helps youing defer the actual push back against you. But literally, if I hear every I literally hear every single person on the show say, "I'm ready to change. I'm ready for change." Yet they did not do a single scent like actual scent of change the moment before coming on. Stop. I know what your spending was. I know what your spending was. It was not good. But I've I've made small changes. I understand the spending's not good. Maybe we'll see. You got baby steps. I got No. No. Because there's more than monthly payments being or more than minimum payments being made. We'll see. That one's my husband's. Okay. Three in a row for the man. Yeah. Cabela's. And that's another use anywhere kind of card. $1,786.24 with a minimum payment of $65. Okay. Yeah, I mean, most cards are used anywhere cards. That doesn't mean we get to the credit limit again. Interesting. By the way, this also shows the indication of lack of change. They're all maxed out. Some are over maxed out, meaning you really can't spend on them anymore. Meaning that even if you wanted to, you couldn't. So, listen, you probably did a few months ago and now you can't. So, this this is another reoccurring thing. Remember, I do this like five times a week. If you could have spent on these cards, you would have. This only looks good in these part of the statements because you're not. Because you're at your max. It's incapable to spend any cards. Yet, you still spent more than you made, which is crazy. 12 years to pay off for this one. 31.24% interest rate on all this. So, what are we doing with this card? What happened? Because they're all maxed out, meaning we did at least recently spend on these cards. And no, they're not off for the moving expenses at this point cuz he said it was 6,500 yet. We drained our emergency fund. Only needed a few thousand, but our credit cards so far that we've talked about are at nearing $20,000. So, no, this wasn't all moving. What? Well, the Home Depot ones were for renovations. Lowe's ones. Cabala cabalas. Cabalas. Cabelas. Cabelas. That one part of that was moving expenses. And then once we got into the house, that was also um we remodeled one of the bathrooms that didn't get covered by the Home Depot cost and buying the tools and equipment to do the renovations. I just And then some of it was also renovations. Did you need to do every renovation you did? You just you said you renovated the kitchen in your current place, right? No, my old house. What did you renovate in the current place? Cuz you said you did renovate rooms. Uh we've done the popcorn. Why would we focus on popcorn ceilings and not a broken sink? So, the sink wasn't originally broken. Okay. This shouldn't be a horribly hard fix. I'm not sure exactly what's wrong with it. Get a plumber. So, I had my uncle out who is a retired plumber. This is the the family thing gets weird because like I don't know. It it just it always gets weird when you ask family for help on those kind of things because they might not put in full effort or even if they don't or even if they do maybe they're not as educated as a real person you want to come in and whatever you can't push back against them. You can't really push for what you want. It get it just gets really hard. You just want someone who's only there to provide the value they do and there's not a family dynamic when it comes to this kind of stuff. So, we do plan on getting a plumber just like you plan on fixing all this but haven't. Come on. Water's leaking everywhere. Huh? Part of it's been I've been worried about getting in more debt, having to take out a loan to pay for this. My double your mortgage. I was talking with my neighbor. She had a plumbing issue, too, and they had to pay $2,000 for the plumbers to know first. You don't know what it is. I don't care about her plumbing issues. You also don't have a cleanout, which is really weird. So, I had the the city come out and see if they can locate a cleanout. You literally just get a diagnosed. I don't give a You don't know what's on the other side. Every time I tell the plumbers, I've called gosh almost every plumber in my area and asked like, "Hey, like can you guys come take a look? Like this is what's going on. It's been snaked. Not sure. It's $100 an hour plus $180 an hour for the camera because if you don't have a clean out we're going to have to use the camera to figure out where we're going in the pipes." I said, "Okay, about how many hours? Like, could you estimate?" They're like, "Many anywhere from four to six starting." Okay. Another Home Depot card. Is this one's yours? Yeah. Yeah. And again, renovations. $999.98. Renovations. Critical things in order to survive. Purchases $43 on this one. Your card. Mhm. Come on. Why are we purchasing on your card? The one who's good with finances. $35 minimum payment. What'd you get? It was seasonal garden section. I don't even know. Huh? Yeah. Guys, we're ready to change 30%. Yeah, let's get you back in therapy because you might need it. Listen, I'll give you three free therapy sessions with Son of Mine. It's the promotion that our audience gets and I get and you get. So, do that. And I'm going to give the course career certification to your husband cuz we need to make him more money, too. He's looking at other jobs currently. Well, I heard he wants to start his own shop, which requires upfront capital. So, okay.

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Best Buy, what's up? That's a use anywhere card. That's a dangerous card. Pretty much all Okay. Yeah, I've used that one to buy Southwest flights for family. And then the family what? So what are you doing? My mom's actually coming out in July for my son's birthday. So I she didn't have the money right then. She can come out when she can't afford it cuz you can't afford your bills. All right. So she's like, "Look, I can pay you from this paycheck and then I can pay you from the next paycheck." How's that worked? Not well. And then my cousin who I had guardianship of at one point is actually going. Did you get insurance on the flights? No. Is it ear? Is it too Can you cancel it yet? It's pretty early. Cancel it. She can redeem it if she pays. I don't know if I can. Try call. Have a conversation. Maybe you can't. Maybe you can. But it's pretty far ahead. Listen, she's paid part of it. We How much of how much? 200. Of how much? 300. Okay, never mind. We can keep it. Push her for the rest. Yeah. Also a Walmart on here as well. That was groceries. Okay, so we grocery shop and go out to get a ton. Mhm. and Ross. That was birthday presents. I don't care. We don't do birthdays. We don't do birthdays. How do you know? For the kid. For my son's friend. He got kicked by a horse and got lifeflighted out and then it was his birthday. Huh? My son. He made a friend and the little boy got kicked by a horse and got lifeflighted out and then shortly after was his birthday. Flooded out. Yeah. like they the helicopter landed on their property and flew him to Dallas to the children's hospital. Is he dead? No. Thankfully, no broken bones. Uh, he's got like he they were joking and said that he looked like Quagmire three. Okay. It doesn't remember things. Core memories start around like three or four. It's barely. You don't need any gifts right now. So, it's for his fourth birthday. Okay. Well, okay. It might just be starting to form core memories. I don't know. Like my son remembers it. He's scared of horses. Put it on de for well, it sounds like it just happened. Debit cards. Debit cards is where we put birthday presents. Not on credit cards that we can't afford to pay off. Mhm. Tractor supply. Yard equipment and dog food. I normally order their dog food through Purina's website and when they don't have it in stock, I would go down to Tractor Supply and often times they would price match for me. $29 minimum monthly payment at a $297 balance. 33.24% interest. Kill me now. Yeah, that's crazy. Oh, I know this Alta Beauty. Yeah. So, what's going on? I really lost myself in motherhood and just the [ __ ] does that mean? Lost yourself in what way? Like I never did anything for myself. Everything was for everyone else. My son especially. Like when I went to go put makeup on, I realized everything expired in 2020 or 2021. Okay. And my I was feeling really down about myself. Had a little bit of a crying moment. It doesn't matter. Honestly, I don't need the sob story because it's paid off every month. Yeah, that was my husband's whole thing. Go take care of yourself. We don't have the money right now. You have the old card. Use it. Pay off every month. Yeah. Credit Union of Texas 15% interest rate. Is this a car? Um Uh, no. 7 $7,000 in uh is this a personal loan? Yes. Okay. Was this one of the consolidations? Yes. When? So, that was actually part of moving expenses. What's the current balance? You know, you took out a personal one for moving expenses. It wasn't even a consolidation. Okay. So, it was for consolidate a couple cards and then what's the balance? I believe it's at 6,800 now. 6,800. 6,800. Good. With a minimum monthly payment of 250 250 60. Mhm. So, this was for moving. This is not adding up to 6,500 cuz how much did you have in savings? 50 cents. We had So, my husband actually got five. How much did you have in your emergency fund was the question, please? We had 1,800. Okay. then okay you set up that whole thing at the beginning when I was like pushed back on you not having emergency fund I had one I had one but I was drained no it wasn't you had $1,800 that's an emergency fund that's like a half a month for you come on to start it was something it was something better than zero but you set it of course but you set it up as you had an emergency fund but I had to drain it for an emergency you didn't you had like a half a month saved up on and then like this wasn't all for the move if it's at 6,000. You said the entire I said part of it was for the move and then some of it was for consolidation but some of the other credit cards were for the move the like it's the math is not adding up here. I guess I never really looked at the total of the expenses for maybe we need to know our numbers if we're ready to change which again believes me makes me believe you're not. I mean you don't even look at your spending from the previous month. How are you ready to change if you don't look at your spending? I just feel like I look at it like on a daily to weekly basis. So I don't do anything. You need the full you need the full image because you can't you can't edit anything for the future if you don't have the full image. Seeing something in a day doesn't hurt cuz these little things they don't hurt. It's it's the death of a thousand cuts. I think that's where we're at with everything. And yes, that is where you're at with everything and the person ready to change would look at it. I guess I never looked at it that way. I just I break it down like daily and weekly. I thought you said you watched David. I do, but I never looked back at like previous statements and stuff. I just I feel like I pay it and I don't want to think about it again. I just want to keep looking at the future and getting stuff paid off. I don't want to look at what's already been paid. It's paid. I know it's paid. It's done. Okay. Okay. Not necessarily. They're on credit cards except for the max out ones cuz now you can't spend on them. So, no, they're not already paid. They're already charged. Okay. What about this person alone at 7%? I'm guessing. Or is this a car? That might be a car. I think that's my husband's truck. I'm being told. Wait, hold on. What? I guess there's another personal loan through UniFi. Cucks. I don't think I have. Maybe that's in here. But they're saying you already took a a personal loan for an HVAC system in your current house. That's what it was supposed to be for. Where is it? What? What? Which one? The personal loan was supposed to be for the H. I believe the one we just talked about. What is it for? Is it for consolidation? Is it for moving? Is it for the HVAC? I am so I have you I have two personal loans and a debt consolidation loan. Sorry. So, I've had consolidation loans, I've had moving loans, and I had one that was supposed to be for the H 15%. Um, it has a current balance of $5,896. So, what did this go to in 24 with a minimum monthly payment of 250? No, I'm confused. This is a mess. What is going on? What is this HVAC loan you're talking about? So, we took out the HVAC loan. My What is it? Where is it? I think the last one you said was moving. No, wait. It was consolidation. Wait, no. Okay. Is it the one that's at 4,000? I think was the last one that we talked about. Okay. Which one is it? $4,288.44 with a 16.74% APR. I think that's the UniFi loan. And what did that cover? That was when we were still in California for what? Um, gosh, I don't even remember. Oh my goodness, dude. That one's like years and years and years old. Like, and you still have it? So, we ended What was it for? You don't remember what a loan is for? I want to It was a consolidation loan to begin with, and then we took out We were talking about taking out another personal loan for $1,500 to try to fix the transmission in my car at the time. So, cross out that last one. Add $4,288.44 is the new loan with a minimum monthly payment [Music] of of I don't know. What's the minimum payment on this one? So, the UniFi one's 250. Credit Union of Texas is 251. So, 250. Okay. So, 250 on that. This is lasting forever. What about this HVAC loan? What was that? So, my husband's coworker's brother does HVAC. We no longer do that. Don't use these personal little connections. Don't use these things. Go get a professional whose only job is to deliver the value that they are being paid for. We've definitely learned because after we got everyone out there, we never got the amount that they actually needed to do this and never had the follow through. So, it got used elsewhere. Renovations and car down payments. Card down payments, personal loans for car down payments. Oh, for well, and then I use some of the money. And then you've been in and out of the cycle endlessly. And again, you think I I I hope you change. I really do. But again, you haven't there's not a single scent of change and you keep promise it's coming and I'm seeing it. Women always promise that they're coming and then they never do. So, it's just like I don't know. It's just it that's a repeated pattern if there ever has been. And it's generational. And I want to break this. for my son. Oh, that's not in that context. That's the big like push behind wanting to change. Yeah, but you had your kid. You You were given birth. No, you had already given birth the last time you took out his consolidation. So again, what is actually different? He hasn't been reborn. The whole idea was debt consolidation loan. Pay off the credit cards, get debt-free, and that's not a free. Okay. Not debt-free. Okay. Not debt-free to David. I know. Okay. Not debt-free, paying off the cards and getting rid of them. And then it freaked me out when I had a card close on me for not using it. So then I was like, "Oh, I have to use these so they don't close my account and take my credit score." And then they also messed up my credit history when that card closed. So then when we were trying to buy a house, we weren't able to. Buddy, good luck, man. The 7% of this finance was what did you finance? $28,194. That's my husband's truck. What's the current balance? 26. We pay We do a split payments on it. We do 250 twice a month. Oh, $500 payment on a monthly basis. Death. I don't know how you guys want to double your mortgage. Good luck. Okay, we'll do 480. But we do. You want to double your mortgage? Okay. We do pay 500. What's it worth? What do you think? Yo, 26. What do you think it's worth? Maybe 25. Okay, it's worth $16,425. That's disgusting. What are you doing? And you guys wanted to go get new cars, even though you couldn't I know. Not brand new cars. They're so new cars to you. You wanted to go get new used cars that you couldn't afford, guys. So he could haul around a little dingy. Little dingy, guys. He has to make four trips from California. You better get a $30,000 truck that's not worth a single. Had to have something to tow the trailers temporarily. Okay. How much comes in from these trailers? Well, the train is down right now. Oh, for sake. Yeah, we're really changing our behavior. Come on. Look where your mindset is on everything. It was making us a good amount of money. What's a good amount of money? Like an extra two grand a month on Okay. Two grand net or gross. Gross. Cuz what were you doing exactly? So, what was it? Was side jobs. What was it net? Two grand. It was just You just said a gross. It was side jobs. What was the side job? Hey, can you take a load to the dump? Can you move this car for me? Dude, I would much rather you guys put in more effort in enhancing our career, getting him into a better career position instead of this [ __ ] justifying a $30,000 purchase of something that we cannot afford that has lost half its value since you purchased it or you overvalued purchase. Really, you're trying to justify the out of this truck in every way possible, which means no behavior will not change. Listen, it's destroyed. It's dumb. You don't know me well enough to say that the behavior is not going to change. But I know your finances and I know what you've done and I know your history and I know the language you're using here. You keep saying keep looking, but I know one thing for sure. Add it all together. You spent more than you made last month. So I'll keep looking and it'll still come to the same result. What is the balance of the car that you have? I just heard you justify this truck like four times. So what do you mean? Like I I do know what people like you do. I have these conversations. I do. My car is 20,000. Okay. 20,000 for the car. Interest rate better 5.7. Minimum monthly payment 405. What's it worth? I could not tell you. I What do you think it's worth? 18 basically. Right about 19. No, this one held its value a little better, but it's still Would you get rid of this car today if I told you to? I don't have like my husband has to drive to work and my son has doctor's appointment. Get in another car still. Would you be willing to get rid of it? You're going to trade down as long as it's something that has a third row. Why? You have one kid right now. Even when you have a second kid, you don't need a third row. Well, yet yet we have five. If we had another kid, that'd be You're holding other cats. No, my dad. My me, my husband, my son, my dad. Um, just don't kid. Listen, is this the reality is Okay. Yeah, sure. Shop. Use third row. Okay, buddy. $20,000 in the car. Listen. Yes. You trade down. You borrow $11,000. 1,000 of the 11,000 goes to paying off the car loan. $10,000 car. Maybe not a third row. You don't 100% need it yet. We upgrade when you need it. Listen, you can't afford you can't afford these minimum monthly payments. And if you're not willing to change that, you're not willing to change anything cuz it's a piece of metal. We don't need sentimental value to it. No, it's not sentimental. Yeah, we'll see. Okay.

Mortgage. This is fine. The interest rates at 6.1. That's actually better than I thought it was going to be for your guys' credit. $141,882 owed. What was the purchase one more time? Price $144. Oh, you're going to have to You have to minimum sell 175. And good luck. It's not I don't It's not looking good. I'll be honest. Minimum payment with all this included is $1,270.83. Yep. That's fine. That's not bad. The is this? What is a $53,639 loan? Oh, I thought those are other loans combined. Okay. Oh, like I almost I almost literally died. The amount of death that almost has happened across from you. Uh, but there is uh $957 in our Well, no, actually. Yeah. Uh oh. No, that's combined accounts, so it's not even like crazy. Okay, it's an Apple bill. It's Wait, you said keep looking. We've gone through the debt. What was I expected to find? Yeah. Oh, I looked and I kept going. Apple bill, Amazon Prime, stopping in some zing out money. Apple bill. No. All right, here we go. And the zillas was back and forth. Apple, Dutch Bros, Cracker Barrel, Nyax Vending, Panda Express, Door Dash, Jack in the Box, 51 bucks there. Amazon Kids Plus, Food Fast, CF Co. Stephco, the gas station. Yeah, but you went in and got something. That'd be my Burger Land. Burger Land. Tell them to off and stopping and be a big boy. School Bros Barbecue. That place downtown. Paris house. Asian restaurant. Zing out money. Burger King. Five below. Five Below. Going in getting some bull. Mexican restaurant. School bros barbecue. Best mark. Best mark man. TJ Maxx express. Panda Express. Five below the Mighty Crab Cash App. I kept looking and it only got worse. Personal loan. Oh, here's that personal loan we talked about. Mhm. There are some fees, transaction fees, personal fees. I think that's the interest that they put off to. They just call fees. No, this is interest. Interest was 72. See, total fees is 1135. Might just be not having enough money in your checking or savings. $44 in this. I used it to pay off my son's medical bills. Yeah, that's our health savings. And then $900. No, no, no, no, no, no, no, no. Hold on. But you you took out a 401k loan against it. I did. I kept looking. I was promised something. What the are you talking about? This is the last piece of paper I like. What the? Why? When? The 401k balance is great, but it's so scary. It's so scary. If you lose your job with them, they can call a 401k loan and you can get it owed like that. You'd have to pay it all at once, like a call date in like 30 days. I owe like $800 left on it. Oh, thank when did you take it out? What was the total balance at one point? I think it was so you never take out 40. Oh, if that was called, man, you would have been [ __ ] And that was years ago for finally looking at the end of it. You only know how to take out that cuz you've never actually paid off that. You've only taken out debt to cover debt. If you kick the can down the road, we're still looking at debt from years and years and years ago. Dude, you're 27. I It's not a repeated cycle. You actually just move debt everywhere and then build it back up even further. You just built it up worse. That's why you have $80,000 in bad debt and you're going to double your mortgage. Don't Don't you want to get that house? No. Don't. It's as easy as that. I solved that. I I I solved that equation for you. I solved the damn equation. The equation is no. Okay. Not including the mortgage or minimum payments alone are 281. And so

He's working just to cover your minimum monthly payments, not including mortgage. And then mortgage, we know is $1,270.83. Utilities altogether. Internet, everything. Electricity, trash, blah, blah, blah. How much?

Internet's 86. Okay. 86 for internet. Water is usually about 100 around there. 100. Um, gas, electric. Gas is like 40 bucks. Okay. And electric depends on the time of the month. Um, average, I'd say average 150. Okay. 290 for that and then 86 for internet.

Gas room from drive, drive. Both of you combined. He spends about 60 bucks filling up his truck once a week. I spend about 40. Once a week. Once a week. Once like a week and a half. Okay. I'll put it at 360.

Car insurance. Um, so I have full coverage on my car, full coverage on his truck, and it's $240. Okay.

Phone bill. So the phone bill is $420, but it's not. So I have more people on the line to make the phone. Always pay. Yes. How much is yours? So the household, you guys. So 420 minus 150. No, 65. 200. Minus 200. That's soing ridiculous. 220. Switch to Helium. Do you own your phones now, right? Or are they financed? Some of them are financed. Oh, once you're done with financing, switch to Helium. If T-Mobile's good in your area, switch to Helium. We have to put 220 for now until you do that. Damn it. Okay.

Groceries. We can do. We should be able to do 800. That's being generous. Use a budget-friendly cookbook. You're going to meal prep so you only cook a few times a week. Then you can no longer use the cooking excuse. TP fun. Anything else you need to survive? Goes for kids as well. $250.

Medical healthcare. Co-pays. Anything on a monthly basis? Um, co-pays I think are $100 right now cuz the deductible. Okay. What else? Each visit. How many visits a month? So, I'm being seen right now twice a month. So, 200 a month. Okay, 200. Anything else? Medical. I think that's about it right now.

Pet insurance. I just canceled this. You're going to sign back up? Ah, the chronic health. Yeah. Okay, never mind. Pet food. I just switched them to a different pet food. Save some money. Uh, 120. Anything else that needs to be in your budget? That I have not taken into account. I think that covers everything. These are the necessities. Okay. Needed to survive $5,923.83 at a minimum monthly basis. Your guys' income together, not including bonuses because it only hits one year. Okay. We have a little bit bigger bit of wiggle room, which makes no sense why none of this debt is being paid off. Guys, all you have to do is just keep waiting and you'll see. Okay. $5,923.83. That gives you an extra $546.39. Let's call Wiggle Room. 4639. Say you have $500 left on a monthly basis. $500 left on a monthly basis. $80,000 of bad debt. 160 months. 13 years. Pretty brutal.

Okay, a couple options. We definitely need to get him into a better career field. We're definitely not opening a shop yet cuz you guys do not have the capital. Nor are we doing a loan to do it. Uh, maybe Grandpa pays rent. Not right now. Okay. Grandpa can start paying a little bit of rent. Even a couple hundred bucks helps. He'll help out with groceries here and there. Well, that helps as well. But you're still only allowed to contribute this amount and uh, deduct whatever his does cuz a couple extra hundred bucks and that moves us what was that? 12 years? $80,000. Divide that by $700 instead and that brings us to nine and a half years, right? So just, just that from Grandpa helps a lot. So, uh, okay, but we need to up. If he can bring in, if we do that plus an extra $500 a month net from the husband, uh, that I mean, with that, that gets us maybe down to seven years and that's okay. Then we can do that. We can grind that out and then you will get pay increases, hopefully more than you're guaranteed 3% cuz that's just cost of living. We actually want real raises and career advancements. But either way, if you cannot finish this in 8 years, I can also consider bankruptcy potentially. That's going to. Yeah, that's it makes it really hard to do things in the future. It gets off your credit, but there will always be questions whether or not you've declared bankruptcy. And um, that's what I do. But you guys can pay off this debt. We can pay it off in about seven years. He needs to up that income. Okay? And and you can no longer, no money going out to eat. This is there. There's nothing. It's nothing. No trips, nothing fun, no paying for other people's nothing. It is sticking down to the grind. And it's just it's to sacrifice for the kid cuz by the time the kid's 10, going to have an incredible life and he's going to know nothing but success and stress-free financially. And that's my goal for. If that's your goal, then this is your path to get there and there will be no excuses to do so. So, make sure you come back.

Would you recommend like bonuses when I get those once a month? Yeah. Throw it right to debt. Okay. Once a month. You said once a year. Sorry. Yeah, once a year. It accelerates the process as well. Maybe we get this down to 6 years. Okay. And 6 years is very attainable. Then a fully six-month emergency fund is what you do. Show us progress on the follow-up channel along the way. Spending your budget. You overspend. Zero out of 10. Debt. Uh, this debt's brutal. This is so many cards. Yeah. $80,000 of bad debt. Mortgage. This is no collections or anything. So I'll give you a one out of 10. Emergency fund. Nothing right now. Zero out of 10. Retirement. What was it? 50. I think it's 20,000. Okay. 20,000. I don't have my husband. He's also got a 401k. I He's just started it. Okay. So, probably not much. Yeah. I'd like you guys if you combine your both. I'm putting you at a three out of 10.

Real estate. Not really an equity position, rough living, bad things with the house, repairs that are going to need to be put into it. It's not great. Yeah. Fine interest rate, minimum payment you can afford. I'll give you a 5 out of 10 cuz you're at least in a position where if you hold on to it and put a little bit of money into it, you actually might make some money a couple years. It's that step ahead versus having to get into the games from scratch. Round it up in financial score two out of 10, one point higher than you thought.

Guys, join us for the post show. We might call the husband. We have some extra juicy information that we can't talk about in the main show for privacy and demonetization reasons. So come join us and make sure you join Hammer Elite because if you do, best YouTube membership on the entire platform. Platform has told us that themselves and there's thousands of hours of extra content and other dedicated shows we have there. It is incredible. And make sure you download the simpler budget app. Sign up for annual. I will sign the cookbook and mail it directly to you. See you in the post show.

A couch buying addiction. What the does that even mean? I haven't. I have just been browsing and looking at couches, but she wants another one. I do want another one. Hey, hey, by the way, you haven't even paid off your last furniture bill. You're not going to go on a couch shopping spree. Just wait. Exclusive members content. Click the link in the description or pin comment below and watch thousands of hours of extra and uncensored content.