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My dad works in B2B marketing. He came by my school for career day and said he was a big ROAS man. Then he told everyone how much he loved calculating his return on ad spend.
My friend's still laughing at me to this day. Not everyone gets B2B, but with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to LinkedIn.com slash results to claim your credit. That's LinkedIn.com slash results. Terms and conditions apply. LinkedIn, the place to be, to be. Hi, my name is Ian. I'm 21 years old. I'm based out of Arlington, Texas, and this is Financial Audit. Okay, let's read it.
I have intermediate thought and concern just going in front of me. Not the largest stack by any means, but immediate thought and concern. But first, I want to know what are you doing for a living and what are you bringing in? I'm an assistant manager at a quick trip in South Dallas. Okay. Explains all the quick trip purchases. It should. And I make around $60 to $65 a year.
really as an assistant manager how many hours a week are you working uh i the base is 46 and that's where the 60 comes from but the range is because i take a lot of extra shifts so what's your hourly 15 okay wow but we get bonuses okay well are the bonuses based off of location performance store profits yeah yeah and um we have secret shoppers that come in
And their scores they give our store determines the other part of the bonus. So it sounds like you have a pretty good score. Yes. So you have a pretty good score on your job part, which leads me to extra concern as to why the possible... We are...
having a late fee on this first thing that's in front of me first thing first thing 21 years old not what i want to see for someone 21 immediately throwing their financial future down the drain especially when you're making money that's gonna be upsetting so 55 dollars 68 cents of late fees right there off the bat it is yeah i essentially uh
made a decision to defer that payment to the next month what it's a credit card you can't just what do you mean it's my car payment this one's your car payment yes okay but we do have another one that's a credit card that you're also late on yes you make too much money the money that came in at 21 by the way i would have done way too many terrible things to bring in
$3,000 net. $3,301.02 from your job. Is that a normal month? No. Is that from the month of February? It's from the statements you gave us. Yeah, so I recently...
After that month, I was... So our bonuses are based off the previous month before. So that would have been from January when I was... My very first store they put me at was a slow store, like a starting store. And I was promoted to a busier store. Within like... We're only a few months into the year. Yes. So I was there for a month and I got moved to a busier store. What would you say hits your account on average?
On average, if I work normal hours, my three of the four weeks, the regular pay is about $750. And then the bonus week is $1,500 to $1,700. Let's be conservative, $1,500. So, okay, a little more, a few hundred bucks more. $3,750? Yeah. But that's before taxes, right? Or are you saying that's net? Post, after, that's net. Okay. Well, again, 21, the things I would have done. It's what I've heard.
Yeah. No one believes the pay, but... So why are you f***ing it up immediately then? Like, seriously. Yeah. Man. No, why are you f***ing it up immediately is what you're going to answer. I made some decisions to enjoy... I already, before getting promoted, was when I owed on the credit card quite a bit. Yeah. And I...
Basically, just when I promoted, I wanted it to feel that way in my spending rather than having to just immediately dump it into bills. But these are bills that you agreed to. These are bills that you took out. Welcome to adulthood three years in. Congratulations. Or do you need to be coddled and held at home? You signed up for these bills. I did.
There isn't the, I just want to go spending, so I'm not going to take care of my life's responsibilities. Leave this payment enough, someone's going to come take that car and just go get an O on it after whatever they sell it for. Yeah. There's a pretty big gap in the loan, too. How much it's worth versus how much my loan is. That 21 golden opportunity. Golden opportunity being squandered. Oh, it hurts to see. I just did like a mouth fart. That was great.
That was interesting. Okay. I'm glad I could. Could you say that again? What is happening? This is chaos. Glad I can have a laugh when I'm seeing just this terror and pain in front of us. And then you also go to school, don't you? Yes. I think I saw. Yes. I'm a full-time college student. Okay. Well, that's a lot of time. I don't even have time to spend the section of money that you're spending. Okay. So what are you studying? History. History.
Okay. And I plan on going to law school post undergrad. Interesting. Okay. How many years or semesters are we into undergrad? This is the end of my third year. So I have one more to be graduating May, 2025. And then when do you plan to go to law school immediately? Yeah. Well, I know someone, his name is Ian and he doesn't like to pay debt when he owes it.
into law school how are you paying for that are we borrowing a few hundred thousand dollars yes i would have to does that make sense for someone who's like i don't pay debt when you put it like that maybe but what kind of law i want to do criminal defense attorney okay in court arguments all right give your give yourself a financial score zero to ten ten being the best zero being the worst
I'd probably make good money compared to other college students. So that's the only reason I'd probably give myself like a three. You're missing f***ing debt payments and you gave yourself a three. You're missing f***ing debt payments and you gave yourself a f***ing... This is going to be... I need this to be the ultimate wake-up call of a conversation. My f***ing 21-year-olds out there, you better listen in to this. F***ing hell.
Yeah, I wouldn't be laughing, but I get it. Cope laugh. Everyone does it. If you want your financial score, it's free. Link in the description below. Also, be nice to our boy over here. He came on. He was brave enough to actually be here. I'm the Caleb Springer. Only I can meme on you and meme on you in the title and thumbnail, and you know we will. Right. But be nice to him. He's coming on here. But I'm going to give you a wake-up call because this is insanity.
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This even is, which we'll get to, $1,113 is what you owe right now. On my car. Yes, on your car. Yes. I know. That's what we're talking about. $1,113.
Okay, so what's the what's okay so the total balance twenty thousand eight hundred eighty three dollars 61 cents which is insanity to have in your position of a College student wanting to go borrow hundreds of thousands of dollars to go to law school, which I'm totally supportive of it That's the career route. We want to go down You just got a grind got granted. We don't go into insane car debt before it okay, so
What's the normal minimum monthly payment, my dude? $556. What's the interest rate on this? 24.1%. No. Yes. That is one of the more disgusting things. It's the age thing. The age thing. Dude, the interest rate is higher than your literal age. Why are you laughing about that? How can you possibly sit there and get a giggle out of that?
I get it. I'm a little bit... My words. Okay, fine. Am I some copelab? You're getting confronted for the first time. But, buddy, do you know how f*** that is? Like, legitimately, how absolutely life-ruining that is to your finances? I didn't until I decided to multiply the minimum payment by the length of the loan. What's the length of the loan? 72 months. Are you f***ing... Who sold this to you? I need to go beat the s*** out of this person.
It was CarMax. I thought I could trust them. Oh, yeah, it was. Yeah, it was. How many years are we into this? I got it in June last year. So you got it when you were 20. Yes. If you're selling this to a 20-year-old, you know, never mind. It's a free open economy. You're an adult. You're allowed to go make stupid decisions. But, like, I would personally feel a bit gross selling you this. I put a $5,000 down payment on it. It was a $25,000 car.
And you put $5,000 down on it? I did. But you owe $21,000. So it's only gone up? Oh, that's probably because you're not paying your f***ing payments! The vehicle was $25,000. The loan ended up being $26,000 something. After you put $5,000 down on it? Yes. Because of taxes and registration and f***ing you? Yes, exactly.
What is this car? It's a 2017 Ford Mustang. A Mustang? Why even care about just like a modern Mustang? Aren't the only cool Mustangs from like the 70s or 60s? Those are the ones that made me get this one. This is probably a modern piece of s***. It's like nothing. Who's getting a Mustang these days? What the...
I promise this, well, you said 2017? Yes. I promise this 2017 muscle car is not making up for your twinkness. This is not going to turn you into like an ultimate man. No, not at all. 21%?
I need to see this thing man. I need to see this thing that you have f***ed your life for. Can we see? Are we allowed to take a look at it? Yes. Are we allowed to take a- Okay, let's get a camera together because I want to go take a look at this thing. It's pretty. It's like a f***ing game show. Let's go on the- Let's go- Let's go f***ing- This is insanity. Let's see. We get a camera. Wait a minute. We're getting- Okay, so we're getting a battery. Well, my producer just told me to- Sit back down for a second. Just a number that I wasn't aware of. Something else. Okay. Okay.
So he said insurance. Insurance. Please. Okay. What's your insurance? Car insurance payment is $770 a month. I've never heard of that. What the f*** is your life? I haven't been licensed for very long either. I got my license when I was 19. It's part of it. And then the car has two doors, so they charge a lot more for that as well. What is this car worth today?
around 16 500 it's not the world's worst scale for this is this is you're 21 this is insane i don't want to shame you for this but i'm just like processing how i've never heard of an insurance payment like that i've never heard of an insurance payment like that's insane it was a lot cheaper when i was on a plan with other vehicles when i got my own plan though where did you apply to the show through where did you apply
through the link in the YouTube description. - Okay, okay. You're just someone from the audience. Again, I've heard a couple of people, "Oh, it's a paid access." You're someone from the audience. - Oh, yes. - I wish we were faking that you had a $700 payment, dude. You're 19? Insurance payment? Let's take a look at this thing. I gotta see this magical thing that's worth throwing our lives away.
How is this? This is like the most basic I've ever seen in my life. How is this worth ruining your life for? I'm confused. Why don't you save up and work hard to get something like cool? Just straight up. Legitimately, I would rather drive. The guy who's filming this, his name is Noah. He's a producer. I'd rather drive his piece of Jeep right there. I'm not even kidding. It's a Liberty. I'm not even kidding though. I would because at least like there's space. Can I get in the front?
Oh gosh! I mean, I legitimately don't get it. This thing looks like it was... This thing looks like it's from 2001 in here. We're throwing our lives away for this, for all these buttons and... This is the premium version with leather seating and the screen here. I don't believe five seconds, 0-60.
I was like, one way to find out. May I? Am I allowed to? Yeah. I'll be honest. I sensed someone hit my Jeep. They were in a turn lane. I was driving by and they were like, oh, I don't want to be in this turn lane anymore. They hit me. I ended up having to get a new car and I got a Tesla. Every other car feels like a piece of...
- Compared to the Tesla. - Yes. But it's also like the same price of your car after tax incentives. Okay, let's take this on a road. Oh gosh, we'll be sure to give you gas money. Why is it making like a triplet over duos beat? - It's actually because my front right blinker is out. It sounds like it's a Christmas song. - Oh, dun dun dun dun dun. Sport. - There you go. - Buddy.
Buddy, I didn't even feel anything. Yeah, there's no kick. What the f*** just happened? I was expecting so much more. Let me try to not crash your car. Wouldn't that be pretty cool? Oh, f***. I just realized I only know how to park now with the thing telling me how far I'm closer. God, I'm such a little baby at driving. I don't think I can drive cars anymore. That was the most underwhelming 0-60 I've ever experienced in my life. He's talking about Teslas. Those aren't even real cars.
What do you mean not even real cars, huh? It's electric. It's silent. Cars have heart and soul and volume. That's like someone who used an icebox in the past saying that refrigerators aren't even real cooling devices. They're not. I'm driving something that's going to last 300,000 miles. You're driving something that's going to die in 75,000 while going to zero to 60 in like 10 seconds.
I think you're just too used to the fake cars. Too used to modern technology that's been invented post-1940. Yeah, I am.
That's okay. You stay on that old. I'm going to join the rest of the world in the 21st century. Wasn't your suggestion for me to get a 1970? No, I'm saying if you actually want a, uh, see, I keep thinking of like Camaro or Mustang. What are the Mustang? Right? If you want a Mustang, get the one that's at least considered cool. No one gives a the 2010s versions of the 2020 versions. Do they, if you pull up next to them, I'm like, Oh, that dude's in a Dodge charger. Like, that's what I would think. I'm like, Oh, that's an ass.
who's like deeply in debt probably because every single person that drives those kind of cars is deeply in debt and they're just trying to pretend like they're a little longer than four inches and like i feel like that's all that's happening is that what we do is that what we do ladies and gentlemen are we in the point where we are missing car payments have a 21.4 percent interest rate 24.1 24 oh it's worse than i
24.1% interest rate, missing payments, and a $700 insurance payment just so that people think we're above the national average? It's more for myself. I don't do it for attention from others. I enjoy the car. I enjoy the experience driving the car. I love how it looks. I can look out at it. We have cameras in the parking lot at work. I can look at my car.
Oh, good. What are you getting off your car now? This is sorry. I know I'm bullying you. I am. Actually, I'm not that sorry, but because it's kind of fun. I can tell that's so silly. It's such a silly thing to ruin your life for it. Twenty one. I don't get it. I don't get it. I would sell this car today. I would sell this car today. Are you willing to consider selling this car today? No, I don't know what I would do with that gap.
No, no, no. The gap is so minimal compared to what you could save. If you got a $7,000 beater piece of something that would get you reliably around where you need to get for a few years to come safely, you could borrow the gap and you'd still save so much money. Especially when we're talking about like a 70-month term at 24.1% and my entire life now. I just, I don't think I could drive a car like that every day. I promise it's not much worse than that.
I've driven cars, and I'm not a car person, but there was nothing unique driving that. I'll just be honest. I don't know. I'm being cheeky, being a little dick, but to be completely honest, there was nothing special about driving that. My Jeep did not go that much slower before someone decided to hit it. You know? We could test that. We could test that, and it was slower, but I did not get that much of a difference. I did not get that much of a difference. Your gas mileage, I don't know, but, I mean, it's a pain in the ass.
We don't need to go in circles on this. You're seriously not willing to consider this? Why come out on a financial show if you're not willing to take what is probably one of the bigger things off the list? We could save you close to, just in balance alone, $9,000 if we did this and we finessed it. But it would save you probably in total $15,000, $16,000 in total when you're calculating the interest that you're going to be losing. Because once it's sold, I would...
It doesn't cover the full. Oh, I know. I said you're borrowing the gap. Oh, so getting a loan on another car and adding the gap to that car. Yeah. Your gaps. What? Four thousand dollars. Five thousand dollars. We've got a seven thousand dollar car, you know, so we're looking at a twelve thousand dollar loan potentially at an interest rate. That's not great, but that saves you eight to nine thousand dollars on the balance there alone. And then it's much easier to pay off aggressively, hopefully before we go to law school, which
Whole different conversation. Can't wait for that one. And your interest is honestly probably going to be better on some kind of personal loan. And the term is certainly going to be better. You're breaking my boy's hearts over at The Money Guy. Do you know The Money Guys? I don't. Okay, they're a great finance channel. They're more for the... We're a little more entertaining and focused on the beginner stuff. They're more advanced and just diving into more advanced stuff. But when they talk about car loans...
They say no more than 8% of your income is the minimum monthly payment. No longer than three-year term, you've broken the fuck out of that. And 20% down, which you're kind of close to. But you're breaking that term thing. They don't have rules about interest, but I'm sure they would be very upset at your interest rate. Wow. Okay. So that's one loan.
33 minutes into this and one loan. I don't know where we are at in the video because I'm sure a lot of that stuff was edited. Okay. Okay. So we have a Discover card. I would be willing to sell my car for a more expensive newer car. Maybe you would like the newer one too. And it could be worth the money if it's going to be spent anyways. You know what we just talked about? The Gap.
In borrowing like $7,000 for a $7,000 car. What are you talking about? So with people that have had the same income and position at my age, they've been approved for $50,000, $60,000 cars. So even if I got something that's $40,000, add on the $5,000. I'm just going off the fact that you're young, dumb, full of complete stupidity.
And I'm going to just, I'm going to take that and I'm going to be gentle here. I'm going to be gentle. Gentle Caleb. Everyone loves gentle Caleb. What kind of car? What are you even talking about? I've looked, I like something with a luxury. Specifically, I've looked at a Lexus RCF. But I thought the whole point of the Mustang was that that's like your family.
Yeah, the... What do you care about a Lexus? The Lexus is... It's like a Japanese Mustang, is what they call it. The RCF. Who has ever... I'm sure people have said that. It has the exact same engine and, like, drivetrain. The engine is that... Not that one. It's the same engine as the higher level of the Mustang. Well, it's 0-60, because that was not 6 seconds, like you said. Probably...
probably 3.8 no i doubt so according to you it's probably double that because that was like 12 seconds no you might just not you said you didn't know how to drive i think that could be accurate didn't know how to well it's not not knowing how to drive it was getting that whole bulky thing with antiquated technology into a parking spot well
But yes, I have been spoiled as of late with my new one. But why do you need that at 21? Like legitimately, why do you think you need that? I'm going gentle. I feel like I want to slap you across the face, tell you you're stupid, but I'm going gentle and I want to at least hear your thoughts on this. So why the possible do you feel like you need that? Is it the income thing that you said other people in my income and my age are doing that? Is it that?
That just really is my justification to know that I could. But my reasoning was that's just my only... The only interest that I have is cars. And I drive a lot. So I want to enjoy those. I drive like 70 miles to and from work. I'd love to enjoy it. Do you want a car that expensive that you're putting that many miles on on a daily basis? Well, I guess recently it's been 70. But with my new apartment, it won't be as much. But...
The more I drive, then the more worth it is to have a nicer car. I feel better. No, no, no. I don't feel better. There's so many different ways. So that's your only interest in life? Like a legitimate? Outside of why I play video games, watch anime, things like that. But as far as things that cost money, my interests, I play basketball. Video games cost money. Basketball can cost money. It can. But I have a gym membership and they have a court, so...
It's not too expensive compared to the only major expense that I... Something that, like, people have hobbies and some people will buy a car and throw thousands into it to change it. But I don't do that. I just spend it every month. Holding it together. Be proud of me, guys. Caleb Springer's holding it together. This... This... Yeah, because it just... It, like, ruins... It ruins this conversation for me. Because...
There's more to go through. There's spending to go through. There's a couple more debts. This card, this credit card with another late payment. But we're still on this car thing. And you know what? Let's loop back to the car because I'm going to get derailed. And I want to keep the conversation going and get your full financial picture on display. But I'm going to... I feel dead inside that a 21-year-old is saying the things that you're saying. It's actually just you don't understand how...
you are making the remainder of your life right now. But let's move forward. $788.56. There it is. There it is. Blatant fee because all we make good money. Hey guys, guess what? If I make good money like other people in my position, I should be able to go get a Lexus. You're not paying. You already have. You're not paying on this credit card that you have here. You're not going to cash flow any part of school. And you're like, I'm going to go borrow $200,000, $300,000 of loans.
possible do you think you can do you deserve you think you deserve a lexus and you're not paying on a easy simple simple simple minimum monthly payment credit card how the possible do you it's i know that if i stupid had to if i if i could
It brings me security to know that I could pay it at any point. Oh, f*** you. What do you mean? Security is having no bad debt in a fully funded emergency fund. Security. Security. What security are you talking about? Security. There's no security here. You currently have a $444 minimum monthly payment because you're not manning up. You're just sitting there jerking off to the Mustang all day instead of taking care of your s***. It's...
Essentially, I know that I have... You need to get sent to the military or something. They don't make as much money. It's not about that. It's about your discipline, your mindset, your immaturity.
It's like I'm talking to a 14-year-old. I think that... I know that I have... If it's $400, the total is, I think, $770. I have that much left over every month. So any month, I could just... So why haven't you paid it then like an adult? Tell me. Tell me why you haven't done it. I...
having to move out this month very very abruptly very suddenly why i was in a three-year relationship with my ex-girlfriend and that ended a couple weeks ago two or three weeks ago i'm sorry that sucks it really sucks we live together yeah okay so um that's what the did it end poorly it did okay i was gonna say the fact that you're being forced out yeah it was not a not a clean split um it was why what happened
We just couldn't communicate, really, was the main issue. And so any small thing would get bloated into a bigger argument. Eventually, it just reached a breaking point after. How old is she? 21. Okay. And you literally... Okay. So you just signed a new apartment. You mentioned that earlier. I did. I just paid my move-in fees and got my keys today. What's your new rent? It is $1,323. Okay.
It's 40% of your net, dude. I, wow, maybe it was a blessing in disguise. At the beginning, I was like, I'll do crazy shit at 21 to make that much money. But you know what? With the mental maturity I had around that age, it took me many years to grow the fuck up and like actually get my shit taken care of.
My...
My reasoning for it, I chose a higher rent than some other ones in the area, mostly because of safety. I work in a really unsafe area, and that's a lot of my days. And so when I go home, I don't want to feel that same worry. What the f*** are you talking about? What city is it that you're working? It's in South Dallas. Okay. There's a lot of Dallas left besides that one area.
A lot of Dallas. I chose to live in Arlington because my school is in Fort Worth. So it's about halfway in between both. That's not a completely unjustifiable reason, but I know for a fact you could have gotten rent cheaper. And it's not even just pissing me off that you did this. It's what's worrying me.
Is that everything, man? You've lifestyle inflated yourself in every situation. Your spending certainly has as well. We haven't gotten there yet. But in terms of where any purchase that you are doing, you are taking it to the extreme, pretending like you're making $100,000, $150,000 a year when you're not. And you have this massive thing you want to take on called law school here in a bit. You're putting yourself in such a hole. It's beyond dangerous.
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What changed? Oh, the Mustang. Yes. Actually, so you're choosing these other debts for these other luxury items in an apartment that is too expensive for you. You're choosing that over cash flow in your school. Good. I don't know. Okay. You push back on the car. Maybe you can walk away from something to this conversation. I really hope you do. And we're going to connect you with good resources either way. But more than anything, my goodness, if you are young out there and you're even considering this, it's just like,
Watch this. Watch this. Send this video to everyone who is about to go to school or considering a car purchase because this is insane. This is insane and my mind is going in circles right now.
And I like school. I'm good with going to school. Borrowing to go to school can be good. And I talk about certifications with course careers. I talk about trade schools. I love all that stuff. There's a lot of good ways to go about education. But the fact that you were cash flowing it and now you've actively chosen not to in order to take out more debt for luxury items is like one of the dumbest things I think I've ever heard in my life legitimately. Like, end my entire life right now. This is so beyond stupid. This is so...
Before, this is my first car. So before getting it, I was walking to work. Good. Keep walking to work. And then we moved, so I could no longer walk. Oh, well. You and your girlfriend moved, though. Yes, yes. There are cheaper cars, believe it or not, than $25,000. This is the only car I really looked at when I was searching. I was set. Oh, f*** me. Okay, let's keep going.
I'm going. This is stupid. So what does that count? So what does the semester cost? Are you borrowing the whole thing? Yes, it was $2,250 this semester and $2,250 last semester. So $4,500. And then you're doing another year. And let me guess, you're financing that. So you're borrowing a total of $9,000. But that's a drop in the bucket because guess what? We're about to borrow a minimum of $200,000 on law school.
And you gave yourself a hammer financial score of three. That's hysterical. That's the best joke I've ever heard. I had a comedian on the podcast a few weeks ago, but that's the best joke I've heard in this last year. It felt fair. What are you like a trophy? Like I deserve a trophy kind of person. Is that who I'm talking to?
I thought my score, I picked a three just because I feel like I have a pretty good potential to fix this situation. It's not about potential. It's about where you are today. You're assessing where you are. It's not about where you think you might be. That doesn't make any sense. It's not the hammer future financial score. Is that what it's called? I don't think so. I don't think so. I'm being a d***. But I was just...
Losing it. Like, I'm like hyperventilating. Like, I feel like I, my vision's like, cause I'm like breathing so much of how just stupid this is. $50. 82 cents. That's in our checking account. Yeah. It makes sense to get a bus thing. Uh,
$1,200, $1,300 rent or whatever it is. That makes sense. Chick-fil-A, Apple Bill, Chick-fil-A, Panera Bread, Cash App and not money. You're sending it to your Cash App. Ritz Carlton. Oh yeah, we're living that real bougie life. What are you doing in a Ritz? That was Valentine's Day and the anniversary celebration. Well, guess what? That didn't work out very well, did it? Fair enough. That was mean. I apologize. I'm a quippy little... But not the little... That's necessary to buy a 2017 sports car.
I think that the Tesla says some more, though. It doesn't make any sense. You tried something, but that didn't even make any sense. Gong cha. Panera bread. Cash app and out money. Water burger. Cash app and out money. Chick-fil-A. I'm going to look like such a d*** this episode. So many people are going to be angry. Panera bread. Oh, nails and spa. We treated the ex. We did. Rip. That's okay. I'm recently an ex as well. Not three years. Six months. But I get it.
I'm hitting those apps. We can be app buddies. We can be hinge buddies. We can suffer together. I don't think I'll be doing that. I'm not interested in moving on, personally. She was great. Yeah, but also that's not how it works. I know. Someone who's been through a few breakups.
That's not how it works. Was this your first breakup? Yes, my first relationship. Oh, buddy. I was a little younger than you, but you should have seen how I took my first breakup. It was embarrassing. My goodness. My friends could tell you so many stories. I could not handle breakups. I get it. You will move on. It might take a little longer. It's fresh. It is. How fresh? A couple weeks. After three years.
go yep that's fresh but we are still friends it doesn't sound like it from yeah not not roommate enough friends but well if you're friends you'd let someone not be homeless but okay chick-fil-a microsoft viac panera bread apple bill panera bread mcdonald's cash app and out money some taquitos and door dash dash pass yeah that's what makes sense when we have 50 dollars in our checking account that's really smart that's awesome guys now taquitos taquitos
You're just getting drinks and snacks at QT while you work there? A lot of, sometimes a small charge at QT is if I'm, I pass a lot of other quick trips on my way to work. And so if I don't have enough gas to make it, I'll just stop and get what I need. $3? Because sometimes I'm running a little late. You make so much money to be a $3 stop at a gas station. I used to be a $3 stop at a gas station, but I made no money.
And also, I don't have to do that anymore. That's another win. You have to take a two-hour break to charge it. I plug it in once a week at home while I'm asleep.
You have a home charger. That's different, I guess. Yeah. Not everybody's there. It's like, I think it was like $200. I think if you're getting like a $20,000, $30,000 car after rebates, you're getting a $200 thing to plug into a wall at home. I thought it was a lot more than that. Car guide knows nothing about cars. Interesting. Well, real cars. Real car guide. Okay. And we're getting some taquitos and DoorDash, cheesecake, Cedricade, Apple Bill, some Millennium thing.
Center, place, and nail. You gave her lots of nails, and she gave you lots of homelessness. She did offer me a place to stay. I just didn't feel, I felt like I was, I didn't want to take advantage of just the seat. I don't think I was taking advantage. She's just really nice, and so she didn't want me to be homeless, didn't want me to be out there. Wow, this is, yeah.
You are not over her. $1 in a Cash App thing. It's mostly just, I can't tell where a lot of money is going. It's Cash App payments between people and items. A lot of times there's money going back and forth between me and my girlfriend for bills sometimes, but also if we're at dinner or whatever else that's being moved. And sometimes I would just transfer money to my Cash App and then use my Cash App card to pay. That makes sense.
Yeah, this is money back and forth. PlayStation. PlayStation. You already had Microsoft, but okay. And some taquitos or just a $3 gas and Chick-fil-A water burger. I mean, this is fast food. Savings. Whopping. $0. Imagine making that much money and just like choosing, choosing to like potentially die poor and in debt. So that's what you're doing.
Let's do a little example before we go into any budgets or car talk, because I know we need to talk about that again. We are putting our arm around you in terms of this is the tough love, but we're going to give you lots of love afterwards, and we're going to do follow-ups and all that good stuff. But... But...
We'll give you some... That guy that was filming back there? Noah? Yeah. That dude's getting matches left and right on Hinge. I saw. He's going out on dates every five seconds. I did see that that was about three months ago, though. He's a killer, isn't he? Look at that beard. Handsome man back there. He's with the ladies.
I've gotten like three matches since I downloaded Hinge the other day. That guy gets like three matches every 50 seconds. So I'll put my arm around you financially, but we'll get no one to put his arm around you like bro, like wingman style. You can go to the bars now. See, I hate bars, but he invited me to the bars the other night and I was like, I don't want to go because ew, that's gross and it's past 10 p.m. But maybe you guys can go. You'll do some cold approaches. You'll get maybe your second woman in your entire life and I'll be like...
Well, I've met my girlfriend. I met her on Tinder. Well, Tinder's pretty much out. She was the first person that I matched with. I know she sounds like the first person for a lot of things for you, but we're going to grow beyond that. I'm in a mood in this episode. That whole car thing put my brain in another level. I think that you haven't experienced a great car. It gets you hooked.
Buddy, I drove that car. If that's what's considered a great car, I literally drove it. Well, it's the entry-level drug to the car activities. Yeah, 24.1%. That's entry-level. Okay, you're 21. Let's get to just 59 1⁄2.
So 39 years of investing based on your income. I know it's not your dream job, but let's just pretend that's what's happening. You're investing $750 a month, which is 20% of your net. You know, this is a go conservative. And then 8% annual returns, which is the average return of the stock market from its beginning to where it is today. Okay. Yeah, you'd be retiring at $2.4 million. Also worth about, you know, 1.5 in today's money, 1.25. Okay.
That's what you'd get, dude. Is that solid? I don't know. I don't really know anything about retirement. Is that a solid amount? You could certainly retire. I mean, that's okay. 2.4. Let's just do the 4% rule because you'd be retiring in your 60s. You don't need to have a last like forever and ever multiple endless decades, which is where you do 3%.
That's $96,000 a year. Can you survive on $96,000 a year? Sure. Okay. And that's what you're giving up by going and getting a dumb car and going and getting a rent you can't afford when there's a lot of options and fast food, $50 in our account, not paying our minimum monthly payments. On the two deaths you have, you're literally not paying your minimum monthly payments. Your credit score must be... It's...
I think it hasn't really changed since I opened it. What is it? About $600. Okay, so it's definitely not great. No. Of your spending categories... Let's get some stupid stuff here. This is stupid. Okay, 13.3% of your spending or $618.42 because the debt payment was catching up on that even though you're not caught up. You're still buying. You owe $1,000. Great. 6.4% went to transportation, probably gas. And is car insurance included in that? No, I don't think so.
We didn't have the car insurance at that time. So that percentage would be completely blown out. But at that time, it was $299.88. Necessary food, 2.3%. Come on, that's groceries. $107.49. That's insane. We're going out to eat is 9.6% or $445.94. Yes.
You're an adult. You're three years into adulthood. You do not need to be coddled anymore. If you are incapable of living as an adult at 21 or 18 or 19 or 20, then you should be sheltered. You shouldn't be able to go off to college. You shouldn't be able to drive. You shouldn't be able to rent a car. If you're a child, you're a child, you're a child, then you need to be treated like a child. But you're not, so act like a f***ing adult.
Unknown shopping, 13.3% of your spending. It's typically Walmart, Amazon. Don't really know what it is. $618.76. Miscellaneous bullshitting, getting to get us 5.5% of your spending or $254.70. Subscriptions, 0.6% of your spending. Then the big whopper, and we'll go through the individual items.
49.1% of your spending is other large purchases or $2,291.42. And that's cash that money just going out. And that's where you send it between bull. Ritz Carlton. Cause loving that boosh. Like red roof, dude. Like, come on. And a cash app loan repayment. I did. I, I, it's paid off now, but I did take out a cash app loan. You're too young for this. Is that, this like actively hurts to see.
You could have so much potential. You have no idea with your income, with your brains. I got your SAT scores. Like we collect financial information, but I got your SAT scores. You're very smart. Yeah, I've been told. But you're the dumbest mother I've ever met in my life. At the same time, I've now been told what to do, what to do. So your spending was four thousand four hundred sixty four dollars.
Great. But again, the quick trip income was $3,301. No surprise, we're missing payments. The balances on debts are going up. We're not paying the minimums.
Y'all, this is the time to switch to my favorite high yield savings account. With SoFi, you can get 4.6% on your money. I hate when my money is just losing value, so make sure you're keeping up with inflation at the very least. You can also get FDIC insurance on that money up to $2 million with them. Plus, they'll give you money up to $300 when you set up an account with them.
There's even extra perks like being able to get paid a couple days early. SoFi is what I use when I'm setting money aside and it is the banking app of the future. Sign up, link in the description below. I always want my money to be making more money, so don't lose money on yours. If you've ever wanted to see disappointed Caleb Springer, you have found him. - I do also get, I get 200 a month from my dad because he never paid child support. And so we kind of made a new agreement. - For how long?
How long did he not pay? No, no, no. How long until he doesn't? Until I graduate undergraduate. So next May, not primary. Okay. So let's include that $3,950 a month then now comes in. Your debt minimum monthly. What's your normal car payment? Remind me. $565,000.
Yes. What's the normal Discover payment if you weren't being a dumb... Not paying on it? It was like... 35. Oh, what a... You are such a little child. $600 for debt minimum fee payments. What's your new rent again? 1323. Okay. I do want to be very clear because I know... I've been in like a mood this episode and I am just like...
I really do want you to do well. I approach these conversations in like a, just a tough love approach, but I also like to meme on people. It's just my sense of humor. And it's also how I like people to approach me. And I really do want you to do well. And I hope you know that. And that's where we start going into this and we're gifting you our budgeting programs, the best that can be found online. There's, there's,
there's a lot of good things that come from here this is the wake-up call and that's the point of this conversation this is the point of this channel not an investing channel i don't know why people recommend that but that's the point of this and um i do want you to do better what's your phone bill uh it's i'm on my parents okay when you start your own get helium it's like 20 bucks a month but stand your parents to tell you got it well your water gas and electric what do you think it's going to be
I would say altogether, probably maybe a hundred. That's what they gave me estimate from the complex. Hmm. Okay. And internet, have you signed up? I have not. Okay. Well, you're, you're, you're one of those guys that like, like is going to get fiber from right? No, absolutely not. I would probably want good internet though. I'm going to say 50 bucks gas. You spent $200, but your location is going to be changing. Yes. Right. So, and I would say it's,
About 20 miles to school. Just give me your estimated gas payment. What's it going to be like? 125 now? Probably about 150, I would say. Car insurance is what again? 770. It's the cheapest option I've found. The general was going to charge me 1100. Yeah, because you at 21 with no driving history got a sports car like the dumbest piece of...
$300 for food, $100 for grocery fund. That's anything else you need to survive. For your TP fund. Sorry. Groceries, $300. TP fund, $100. Anything else you need to survive? Is there any ongoing medical or gym? Gym's $15. $50? $15. Got to get buff for the new ladies out there. See, my thing is, I'm seeing how fat I can get for the ladies out there. That's the way, man. So far, so good. Dad bod.
Yeah, I think we've passed that. And your subscription is giving $0. It doesn't really make sense. I think that's it. Anything else you can think of that you have to pay for? I'm not including your school fees. I should, but I'm not. I think that's it as well. I'm only 90% interested in getting fit for the ladies. I really have only used the gym to play basketball. That sounds fun. I like tennis. I'd love to have a workout routine, but I feel like if I go in there and just do...
things, I would look like an idiot and make no progress. You know, I think that's my fear too. If you have a friend, I think that can be helpful. A friend to go to the gym with who's like a little more well-known. But also, I think people are just focused on their own thing. People are recording themselves in gyms these days. I mean, they're just so hyper-focused on their own thing. Just go look like a dumbass because after a while, you won't anymore. That's true. Or just watch a couple things on YouTube as well. This site is free. $3,408. Yeah.
Maybe we'll talk about your potential workout routine in the post show. That'd be great. From Noah, because I can't help with that. Actually, I do like lifting. This show's getting off the rails. Save that for the post show. $542 is what you have left over, because what you need to survive is $3,408 on a minimum monthly basis. You should have more left over, but your car insurance is the dumbest thing I've ever seen, and your rent is too expensive.
With that, my friend, here's my diagnosis and prescription. Discover. Pay that off in two months. Easy. That's done. Car. You're not going to do this, but this, I literally only give the recommendations that I would do. I pulled myself out of really bad debt, worse debt than you, and this is what I would do.
Sell the car. Borrow the $5,000 you need. Get a $7,000 car as well. So then we have a $12,000 loan and an interest rate. You're at 600 credit score, maybe like a 20%. It sucks. But that's $12,000 to pay off as quick as possible versus $20,000. You just save yourself $8,000 and potential interest as well. So with this, I'd also be working as many hours as you can. Try to get that as high as you can. For sure.
I've been working 65, 70 recently. Okay, because it still takes almost four years to pay off that, which is beyond bad, and you're going to be deep in law school, and it's just like, you're not going to be working as much while you're in law school, if any, because that's basically a full-time job. So it's just...
Wait a second. No, because you're going to sell this car. You're going to get a stupid, just basic sedan or just even an SUV, whatever. Your car insurance is going to be so much cheaper and that's going to allow you more. I think you can pay this off in a year and a half because your car insurance should be minimum half the cost because you're not being a dumb...
Do you have any arrests, any tickets, any car crashes? I don't. Okay. So, yes, it's your sports car, clearly, at your age. So, like, no, no, you're going to have so much more money to throw at this. This is great. So I would 100% do this because in a year and a half, basically...
That car payment is completely gone, now looped up in your beater, and your Discover is completely gone. And then, so actually after graduation, what I would do is this. One year gap. Two full semesters. That's what one year is. Yeah.
Um, I would do that so that you aren't, you don't get law school because you could get something bad happens and you just can't afford anything. And like, you're not getting approved for extra loans or grants or whatever. I also apply for as many scholarships and grants as you can. You're smart. You know how to do it, do it. Um, but what that one year does is gives you that. First of all, if you go right into law school, all of a sudden that six months that you have left to pay off the car or the personal loan in that case, which is making up for the car.
you're not gonna have time to work. And that's just gonna be extended and it's just still more minimum fee payments than you can afford. So you'll just be borrowing to pay those minimum fee payments. It just gets bad.
you've made the choices you are now you've made adult choices that were stupid and you're dealing with the consequences now the consequences that your dream of going to law school is going to take one extra year that's fine you're still going into law school at 22 and a half 23 like oh my gosh oh no we're making lawyer money at 26 that's terrible that's crazy or what i don't know how long it takes to make lawyer money because i know you gotta you eat for a bit right yeah three years and then you got
You don't get straight into the real. Yeah. But either way, you're going to be making decent money by 30, which is incredible. You're already making decent money now, but you're going to be making great money by then. And that's fantastic. And then you're going to aggressively pay off the loans. And then at that point, you're going to be catching up on retirement as quick as possible. You know, and that's where the exciting stuff is. Like I love buying stocks through Moo Moo. I love my solo 401k and,
All that crap through Fidelity. There's a lot of great things. That's where the exciting part of the conversation really goes, but we're not there yet. And what really, here's what terrifies me. Let's be honest. I don't think you're going to sell your car and there's, there's no way it's going to even. Okay. This is what I think is actually going to happen. And I'm sorry to doubt you so much, but I mean, just based on this conversation, come on, you're going to continue accumulating student loans.
Your car is going to just not get paid off. You're going to be doing, you're not even going to be paying your minimum monthly payments on their discovery. You're going to be going into a law school, borrowing all of these hundreds of thousands of dollars. You're not going to have any money to make your minimum monthly payments on all the loans you have accumulated because you spend all your money. And, um,
Now you won't have an income at that point. And you're going to be in such a bad spot where you might even drop out with all these loans. You're going to, you're just going to be, you're going to be working into your late years just to pay off the minimum monthly payment that you didn't pay five months ago. And it's just going to be this reoccurring, terrible process that is crap.
And we've seen these people that are in successful careers who are smart people that have just been dumb their finances. And it's going to ruin your life, man. And that's not what I want to see. You're young. You're smart. You have the ability to live a good life. But you are not living that good life right now. I think that the car is hard. It'd be hard to let go. Built a relationship with it. Buddy, you're already getting over one relationship. You can get over the second one. I'm not over that. I'm not. Make that clear.
I take one at a time. This isn't the TLC show with the strangest addictions. You're not making love to that car. You can get rid of it, dude. You can get rid of it. If you're still watching and you've seen that episode, it's very weird. Let me know in the comments below. All right. Let's get your hammer financial score. One thing I wanted to mention about the student loans is that they could have been non-existent.
I was offered through my high school into the community college free tuition for just graduating high school and going straight into community college. But my first semester, I ended up withdrawing from all my classes, and that voided my... So you didn't go to community college, though? I did. That's where I am. Okay, and you were getting free... That's where you are now? Yes. You're getting your bachelor's degree from community college? Well, I'm getting... I have most of the credits that will transfer...
When are you going to the university? I would have to in the fall. And only for one year? Yes. Okay. Why'd you drop out? It was... I had a lot of mental things going on at the time. And I could have still kept up with my classes, but I essentially tried to preserve my mental space. What was going on? Just lost... It was... I was super...
I guess disappointed in the fact that I was in community college because I was going to Texas A&M until it was COVID it was 2020 and they were going to have us pay full get a full loan for housing but there was no in person classes it was all going to be online from the dorm was your housing covered through this program no
Oh, okay. So I thought that would be a dumb decision. Weren't you living at home though? It was community college. I was. But if I went to Texas A&M, like I originally planned. Well, why would you if college was free? I mean...
The saddest people in life are the ones who, like, grasp onto the college they went to. Like, they're never able to move on. And that's the highlight of their lives, meaning the remaining decades of their lives are just sad and depressing. That's true. Like, who gives a... It's a place where... I mean, it's... Okay, Texas A&M has a disappointing football team anyway, so it doesn't even matter. Like...
Okay, but that's your feeling. Yeah. I'm not going to invalidate it. Actually, no, it is stupid, but that's okay. Because community college is great and more people need to know that. I've realized now. So you ended up going to community college and that's what you dropped out of for a second? Yes. I started at community college and I had about six classes and I saw that my...
Grades were falling behind. And I knew that if those ended up on my record, that it would be really hard trying to transfer out of the community college into a good school to have a solid school on my degree. So I just withdrew from them so that the grades would be redacted, basically, from the record. And that voided my eligibility for the free tuition. But you're back in, and now you have to pay for it because of that? Yes, and that's what the loans are for.
spending your budget is ridiculous. You're not making your payments on your car. So you're spending your budget has to be a zero. I mean, people hate it when it's a zero out of 10, but I think there's going to be a zero. I mean, just look at these. I mean, you have nothing in your debts. You're not paying. So, I mean, I'm sorry, sorry. We can't complain about it, but zero out of 10 is your hammer financial score. Um,
Make sure to stick around for the post show. We'll dig into some more stuff and it'll be fun. And check out the links in the description below as they are the resources that I use or would use in specific situations, including the best budgeting program in the history of the internet. Today on the Financial Audit Post Show. So Noah, I hear that our boy Ian over here likes to f*** his car. Oh boy. Wow, we're really diving in. For people like you, you're just being a dumb. You're just being a dumb piece of stupid. Yeah.
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