Financial Audit’s Biggest Gold Digger

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Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Speaker 00

  At Edward Jones, we believe rich is about taking care of what gives your life meaning. That's why your financial advisor personalizes your plan to help you preserve your progress and create something that lasts. Let's find your rich. Edward Jones. Member SIPC.

• 0:15Speaker 01

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• 0:45Caleb Hammer?

  To watch episodes of Financial Audit a week earlier, check us out on YouTube. Financially, we are [BLEEP].

• 0:50Speaker 03

  No, I don't think financially we're [BLEEP].

• 0:52Caleb Hammer?

  If it's so easy, then why are we here?

• 0:54Speaker 03

  I guess we're near the breaking point. I guess.

• 0:57Caleb Hammer?

  What? We're not. We are at the breaking point, babe.

• 0:59Speaker 03

  It's so fixable, though.

• 1:00Caleb Hammer?

  Bullshit. You have $100 in your checking account, but you're still buying stuff that we do not need, constantly.

• 1:06Speaker 03

  Who wouldn't want more of their money to spend or to control in the way that they want it?

• 1:10Caleb Hammer?

  You are not seeing the alarm sound like he is. Yes.

• 1:13Speaker 03

  I don't know about that.

• 1:16Caleb Hammer?

  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 pinned comment below.

• 1:30Speaker 03

  Hi, I'm Elle. I'm 31.

• 1:32Speaker 04

  And I'm Paul, and I'm 38, and we're from San Antonio.

• 1:34Speaker 03

  And this is Financial Audit.

• 1:37Caleb Hammer?

  Thanks for coming up from San Antonio, guys. I really appreciate it. Elle, you're in front of me. Let's start with you. What do you do for a living?

• 1:43Speaker 03

  I'm a student. I just barely graduated from UTSA.

• 1:47Caleb Hammer?

  Barely grad-

• 1:48Speaker 03

  Yeah, well, December.

• 1:49Caleb Hammer?

  As in, okay, so you're, not that you almost failed, but that-

• 1:53Speaker 03

  Oh, no, sorry. No, no, no. I recently graduated.

• 1:56Caleb Hammer?

  What did you graduate with?

• 1:56Speaker 03

  I have a Bachelor of Biology.

• 1:58Caleb Hammer?

  Very good. What are we gonna do? December, so it's been, it's like it's been about five months.

• 2:01Speaker 03

  Yes, so I want to become a physician assistant. Um, so I'm applying over the summer to physician assistant programs. Currently a master's student, but it starts in June for another program. I got accepted. Yeah, I'm doing, um, okay, so it's really competitive, uh, physician assistant. Only like thirteen percent of the people get accepted. And so I thought to be more competitive, I would get a second master's degree.

• 2:29Caleb Hammer?

  A second master's degree. You have another master's.

• 2:31Speaker 03

  Well, no, I'm, I just got accepted into, uh, U N T H S C, which is based out of Fort Worth, Texas. And it's, uh, masters of lifestyle sciences and health coaching.

• 2:43Caleb Hammer?

  Okay, why not just pick up a lot of hours at hospitals and different things, doing a lot of things. Someone I know, I knew that was going into physician assistant school. She's just work, just grinding at hospitals, is working nights, all these things, picking up those hours. And that was really helping her application to get in.

• 2:58Speaker 03

  Uh, I did consider that.

• 3:00Caleb Hammer?

  Endless school.

• 3:01Speaker 03

  Well, not endless, but I actually have a lot of experience in the medical field. I've been in it since I was sixteen and I was in the Navy for six years. And I was a hospital.

• 3:09Caleb Hammer?

  So is undergrad paid for?

• 3:11Speaker 03

  Yes, totally paid for.

• 3:13Caleb Hammer?

  So there's no student loans, even though I have a massive fact stack of debt. The fact that it's not student loans is extra worrying. What do you do, Paul?

• 3:22Speaker 04

  Uh, I am in the Navy, uh, about to retire.

• 3:25Caleb Hammer?

  Oh, really?

• 3:25Speaker 04

  Yep.

• 3:26Caleb Hammer?

  Very good. What does income look like right now?

• 3:28Speaker 03

  Well, he makes thirty six hundred twice a month and I make forty seven fifty. So together we bring in around eleven or twelve thousand.

• 3:35Caleb Hammer?

  How are you making money?

• 3:36Speaker 03

  Oh, I'm a VA disability with dependents. We have two kids.

• 3:40Caleb Hammer?

  Right, okay, forty seven hundred twice a month?

• 3:43Speaker 03

  Yeah, no, I make forty seven hundred once a month and he makes thirty six hundred twice a month. And it equals between eleven and twelve.

• 3:51Caleb Hammer?

  Are you gonna get disability too?

• 3:52Speaker 04

  Oh, yes, I will.

• 3:53Caleb Hammer?

  There is not a single veteran that has come on the show that does not just get endless money for the rest of their life with disability.

• 3:58Speaker 03

  It breaks your body.

• 3:59Speaker 04

  I'm old. I've done a lot. I'm a police officer for the Navy. So I've done a lot of hardworking stuff throughout the, throughout the time.

• 4:05Caleb Hammer?

  Yeah.

• 4:06Speaker 04

  Which I'm just, I got issues all around.

• 4:08Caleb Hammer?

  But even people that have just served for like three years and they just sat on a base, they get it. Like, uh, there has not been one single person on this entire show that doesn't get thousands of dollars for the rest of their life. I think it's like five percent of our budget now.

• 4:21Speaker 04

  It's something.

• 4:21Caleb Hammer?

  It's something crazy. This is. Disability is forever.

• 4:25Speaker 03

  Well, they serve their country and they probably have earned it.

• 4:28Caleb Hammer?

  It's disability.

• 4:30Speaker 03

  Yeah, I get that, but there's things that when you serve your country and you break your body or you can't function the same way.

• 4:36Caleb Hammer?

  I totally agree. I'm saying every single person that has ever been on this show, who has literally just sat at a base and did nothing. And I also guess this.

• 4:45Speaker 04

  I know a lot of them, yes. They will be able to claim some stuff, yes.

• 4:48Caleb Hammer?

  I'm not saying if you go get hurt or anything, like, I think that's why it's there, right?

• 4:51Speaker 04

  Yes.

• 4:52Speaker 03

  Right. That's what it's intended for.

• 4:53Caleb Hammer?

  That's what it's intended for, but, whew. Okay, so we're making 11,900 right now.

• 4:59Speaker 04

  Okay.

• 5:00Caleb Hammer?

  What are you gonna be making in retirement?

• 5:02Speaker 04

  Um, about, yeah, a little bit, no, a little bit less than that, because I'm gonna have my retirement pay for after, you know, 21 years, I'll have also the disability. We don't know what that's gonna look like. The goal, obviously, and the prayers, the 100% disability, um, that will bring in the same amount as her. Uh, and then the retirement will be a good chunk. So we're looking at about...

• 5:23Speaker 03

  Similar to what we make now.

• 5:24Speaker 04

  Yeah, 6,000 probably a year. Oh, I'm sorry, a month.

• 5:27Caleb Hammer?

  A month, okay.

• 5:28Speaker 04

  So that, and that's just, just by retirement pur- purposes, though.

• 5:32Caleb Hammer?

  When, when does that come in? So we'll go from 11,900 to 10,700. When does that?

• 5:37Speaker 04

  Uh, 290 days I retire, uh, so February.

• 5:40Speaker 03

  Yeah.

• 5:41Caleb Hammer?

  Oh, okay, okay. Very cool, very cool. So we have a little bit of time with a little higher income.

• 5:45Speaker 04

  Yep.

• 5:45Caleb Hammer?

  Uh, okay, okay. So what's going on? Because this is an incredibly strong income, incredibly strong income, when you just get to go to school and have this income. So incredibly strong income. Uh, why are we struggling so much? What the possible is happening? What's going on here? I feel like I have two halfway reasonable people in front of me.

• 6:09Speaker 04

  Yeah.

• 6:10Caleb Hammer?

  What's going on?

• 6:11Speaker 03

  Um, well, I think we just have some bad spending habits. And I think, I think the mentality that partly got us here has just been like, if we can afford the payment, we can take on the debt, like when it comes to cars.

• 6:27Caleb Hammer?

  So this is getting a minimum of the payments forever?

• 6:29Speaker 03

  Yeah, we do.

• 6:30Caleb Hammer?

  I literally have a spending category called miscellaneous bullshit. There's things that just do not improve life. This is random swipes. It is nothing, it's not fast food, but it could be a video game, it could be whatever. I don't know, I haven't gone through. I go through and blind with the audience, but this is the pre-work that, uh, my team has done. That was $4,137 within a month.

• 6:48Speaker 03

  That's right.

• 6:49Caleb Hammer?

  Just miscellaneous bull- That is not going out to eat, by the way, which there is an additional a lot of money, which we'll go into for that. And then other things.

• 6:58Speaker 04

  We prioritize fun.

• 7:00Speaker 03

  Yeah, we do.

• 7:00Speaker 04

  We have two children. They're young, so you know.

• 7:03Speaker 03

  Creating memories.

• 7:04Speaker 04

  We are creating memories, but they're costing us.

• 7:06Caleb Hammer?

  What are the ages of the kids?

• 7:08Speaker 03

  Seven and eight.

• 7:09Speaker 04

  We have a daughter who's eight and a son who's seven.

• 7:11Caleb Hammer?

  Now, let me ask you this. We've talked about the military disability, right? And I'm not saying it's something that shouldn't exist for obviously people that need it and have earned it. But of course, we know there is probably abuse as well, which has certainly been shown on the show. However, that being said, do we think we probably feel if I'm adding all this up, minimum six, $7,000 on bull Do we think we probably feel like we can just go do that on a monthly basis? Because you know, this is going to come in no matter what you do in your life, no matter what? You can go do anything. You can go fail out of college. You can do whatever and you will get this money. And because of this social safety net, because of this thing that is just there for you no matter what.

• 7:52Caleb Hammer?

  We're just like, oh, let's just go blow all of our money because it's basically a retirement forever. You never have to think. You can just around.

• 8:02Speaker 04

  And we have, we've actually, we've come out of debt twice.

• 8:06Caleb Hammer?

  Really?

• 8:07Speaker 04

  Yes.

• 8:08Caleb Hammer?

  This video is sponsored by Aura. And before you skip, you might want to see the crazy stuff that I just found out. Want to see something crazy? I just Googled you. Is this your address?

• 8:20Caleb Hammer?

  Wait, what? Is your number?

• 8:23Caleb Hammer?

  Dude, where are you finding all of this out? Yeah, I hack anything. It's all out there due to hackers. It's all public. It is terrifying how easy it is to find someone's private info like home addresses, phone numbers, and even emails just by searching. These data broker sites collect your personal info, package it up, and sell it to literally anyone. Marketers, scammers, even identity thieves, all without your consent. And it's all legal, by the way. And sure, technically, you can ask them to take it down, but they bury that process under a mountain of legal hoops so that you'll give up. Or you can do what I do and use Aura, which is the sponsor of this video. Aura automatically finds where your info is exposed and sends opt out requests for you. There's no paperwork, no nonsense.

• 9:07Caleb Hammer?

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• 9:48Speaker 04

  Yeah, we've managed to come out of debt over the last 10 years. We've been married for 10 years.

• 9:52Speaker 03

  Yeah, we've been married 10 years.

• 9:53Speaker 04

  So over that timeframe, we've come out of debt twice, paid off everything, you know, once with children, once without children.

• 9:59Caleb Hammer?

  What was payoff? Tell me, tell me how that looked.

• 10:01Speaker 03

  Um, we were completely debt free. All of our cars were paid for. We didn't own a mortgage. We were renting at the time and we had no credit cards. That was the first time.

• 10:12Caleb Hammer?

  Okay.

• 10:12Speaker 03

  And we did it through Dave Ramsey.

• 10:14Speaker 04

  The snowball effect.

• 10:15Caleb Hammer?

  Then how are we possibly in this position?

• 10:18Speaker 03

  Well, then we had kids.

• 10:20Speaker 04

  Had kids, we racked up a lot more debt. We went through again and got debt free. And then the big problem is.

• 10:27Caleb Hammer?

  What was the debt free in that situation? How did we get debt free then?

• 10:30Speaker 03

  The second time, we're not actually debt free. We did a debt consolidation through our home equity.

• 10:36Caleb Hammer?

  Okay.

• 10:36Speaker 04

  So debt free without the, the cars and the, and the mortgage.

• 10:39Caleb Hammer?

  But it was a debt free move.

• 10:41Speaker 04

  It was.

• 10:41Caleb Hammer?

  It was, it was moving the debt somewhere.

• 10:44Speaker 04

  It was nice.

• 10:45Caleb Hammer?

  Did we close the cards and everything after that? Meaning we moved the debt somewhere and then we built up the debt again.

• 10:50Speaker 03

  Right, that's exactly what happened.

• 10:51Caleb Hammer?

  When did we do that?

• 10:52Speaker 03

  That was in 2023, so like two years ago.

• 10:56Speaker 04

  Yeah.

• 10:57Caleb Hammer?

  Okay, so we've accumulated this for just a couple of years?

• 11:01Speaker 03

  Yeah.

• 11:02Caleb Hammer?

  Okay, and it's just through the experiences and I mean, they are in the experience ages. A lot of people are, you know, when they come on the show, they're like, I'm going for the experience with their kids like two, three, four. And they're like, okay, you don't, they're not even forming core memories. You actually are at seven and eight, so I kind of understand that, but I mean, making a super strong income. I mean, let's be honest, is that 11,900 what's hitting after taxes, everything? Is that what's kind of settling in our account? That's, I mean, that's incredible. With that, we're talking 142,800 dollars a year after taxes. You can live an incredible life in San Antonio, cheapest major city in Texas. You can live an incredible life on that. What kind of, why are we living a 250,000 dollar lifestyle on that? Cause you can still do great experiences on that.

• 11:46Caleb Hammer?

  You got a great zoo, you got SeaWorld there, you got a lot of things, then you got major metros, you can go everywhere. We don't need to be, I don't know what you guys are doing, but what, like, why aren't we living what could be an incredible life off of this? And then just capping at that, because if you budget 142,000 dollars net, you can still live, I mean, double the median household income for San Antonio. If I had to guess, just about, maybe 33% higher, but even still, like, that's still great. So what are we doing?

• 12:12Speaker 03

  Well, one of our major expenses is our kids are in sports and activities.

• 12:16Caleb Hammer?

  Okay, that's one, how much?

• 12:19Speaker 03

  My daughter's a gymnast. She, it caught, well, she does four different lessons a week. She has two group classes, two private lessons.

• 12:26Caleb Hammer?

  Geez, okay, how much is that?

• 12:28Speaker 03

  So 232 for the two group lessons.

• 12:30Caleb Hammer?

  A week or month?

• 12:31Speaker 03

  A month.

• 12:32Caleb Hammer?

  Well, you can budget, you can afford that.

• 12:33Speaker 03

  Yeah, we do, we can, yeah.

• 12:35Speaker 04

  But then it's all the other stuff that my wife likes to buy, the, the at home.

• 12:39Speaker 03

  She has an at home gymnastics gym in our garage.

• 12:42Caleb Hammer?

  But that's one time, right?

• 12:43Speaker 03

  Well, yeah, it just costs a lot.

• 12:45Caleb Hammer?

  How much, how much does that cost to build from scratch?

• 12:47Speaker 04

  It keeps building, it keeps building.

• 12:47Speaker 03

  Well, I'm, I'm done now. I think I've.

• 12:49Speaker 04

  I don't know.

• 12:50Speaker 03

  Put all the things in there that need to be in there.

• 12:52Caleb Hammer?

  How much does it cost from zero to now?

• 12:54Speaker 03

  Well, each mat is a hundred dollars and she's got about seven. And then she has two bars, two beams, guns.

• 13:00Caleb Hammer?

  We're waiting a couple thousand, we're a couple thousand. But honestly. Couple thousand, you can afford it over the course of a year or so, like that's totally chill.

• 13:08Speaker 04

  No, this was all within like six months.

• 13:10Caleb Hammer?

  Six months, you can afford a couple thousand. Again, you really can. I don't know what your life is. I mean,

• 13:17Speaker 04

  It's a lot.

• 13:17Caleb Hammer?

  Uh, your mortgage for taxes, isn't that crazy? I don't know how you guys are fucking this up.

• 13:22Speaker 03

  Yeah.

• 13:22Caleb Hammer?

  This is gonna be like a science experiment to figure this one out, because mortgage, we're sitting at 213.

• 13:27Speaker 04

  Yeah.

• 13:28Speaker 03

  Yeah.

• 13:29Caleb Hammer?

  That is not bad for this world. That is actually below the median purchase price for a home in the United States. You guys make, again, if we're thinking pre-tax, well, about your double the median household income in the United States. How are we fucking this up? It is not a $2,000 thing over the course of six months. But what it could be are multiple $2,000 things over the course of six months, stack, stack, stack, stack, stack forever.

• 13:51Speaker 04

  Yes.

• 13:52Speaker 03

  Well, I also think like, um, once you start, well, you know this because you're a financial expert, but you.

• 13:57Caleb Hammer?

  Well, I mean, I just got out of debt, but.

• 14:00Speaker 04

  Congratulations to you.

• 14:01Caleb Hammer?

  No, I'm saying I'm not a licensed financial expert. I am someone who got out of really bad debt, accumulated a quarter million net worth before I started my show. Like, yes, but I want to be clear, there is no license, but there isn't needed for this kind of conversation.

• 14:15Speaker 03

  I just was gonna say, I think the interest, once you get to really high debt, really starts adding up. And I think like the inflation with the economy, um, that's also had an impact on us.

• 14:26Caleb Hammer?

  Inflation report just came out today, it was 2.4%. What the fuck are you talking about?

• 14:29Speaker 03

  Well, like, things just sort of cost more than they used to, if you.

• 14:32Caleb Hammer?

  They always will. Inflation always exists forever. You don't want deflation or stagnation.

• 14:37Speaker 03

  But like our income.

• 14:38Caleb Hammer?

  Inflation's 2.4% right now. What are we talking? We haven't had a bad inflation report in a year and a half. What are we talking about?

• 14:44Speaker 03

  I was just gonna say, like, we make the same amount of money, and even though it's like steadily, like.

• 14:48Caleb Hammer?

  Same amount of money since when?

• 14:50Speaker 03

  Since.

• 14:51Caleb Hammer?

  What, your disability hasn't been?

• 14:53Speaker 03

  I got out in 2018, and it's, yeah, pretty much been the same. I mean, maybe a little.

• 14:57Caleb Hammer?

  The same?

• 14:57Speaker 03

  I mean, a little increase.

• 14:59Caleb Hammer?

  What's the increase? What percentage increase?

• 15:00Speaker 03

  I don't know, maybe 1% every year.

• 15:03Speaker 04

  I don't know. I don't remember what it was.

• 15:05Caleb Hammer?

  Oh, come on. If we're talking inflation at 2.4%, you think, they usually do like the social security increase every few years or so. I mean, they kind of boost it near inflation levels pretty. Pretty close. I mean, depending, you know, sometimes it's a little

• 15:18Speaker 03

  Do you have all the information on inflation for the last like couple of years or?

• 15:22Caleb Hammer?

  Relatively, yes. When it peaked inflation, what 2023, we were at 9.4, but it was on a steady decrease all of 2024, 2025 so far. Last year was the best year in S and P 500 history this millennium because inflation rates were going down and Fed was cutting rates, which made debt more affordable.

• 15:43Speaker 04

  I think in general, not

• 15:46Speaker 00

  At Edward Jones, we believe rich is more than caring about the latest and greatest. It's also taking care of what gives your life meaning. That's why your dedicated financial advisor meets you where you are with personalized financial strategies that help protect what matters. So you can preserve your progress while creating a path forward. The key to being rich is knowing what counts. Let's find your rich together. Edward Jones. Member SIPC.

• 16:15Speaker 04

  Like inflation specifically is something item. It is just overall in general, all the items we do, all the stuff we do consistently has been expensive, costs more.

• 16:24Caleb Hammer?

  I mean, that's how everything works forever, except for TVs.

• 16:28Speaker 04

  Yeah.

• 16:28Caleb Hammer?

  I mean, everything goes up. The cost of everything goes up. Cost of your labor goes up. So the cost of expenses goes up.

• 16:34Speaker 04

  But we don't, we don't plan for that kind of style.

• 16:36Speaker 03

  Yeah, I think we just didn't

• 16:37Caleb Hammer?

  You don't plan for money going up, which is what it's always done since the history of money?

• 16:41Speaker 03

  Yeah. Who really plans for that though? Like we just didn't adjust our lifestyle.

• 16:44Caleb Hammer?

  Are responsible? I don't know. I mean, you get, again, I bet you've gotten an increase more than 1%. If we're being real.

• 16:53Speaker 04

  I don't know. I wish I, I don't know. I don't pay attention to that much.

• 16:56Caleb Hammer?

  So we know that inflation is bad, even though you don't know the percentage of what's actually happening, but you don't know what your income is? We know that the cost of things go up, but we don't know that our, if our disability is going up?

• 17:08Speaker 03

  I know it increases every year. I just feel like

• 17:11Caleb Hammer?

  Okay, feel. I don't care about feel budget. Why don't you budget? What do we budget? Do we budget? What's the conversation around finances in the household?

• 17:19Speaker 04

  We use, uh, we were using an express, Excel spreadsheet to pay the bills.

• 17:23Caleb Hammer?

  Which it can work and for a lot of people, they prefer that, but for most people, honestly, it doesn't work because it's so manual that it requires putting in the time, putting in the work. And sometimes putting in the time, putting in the work is good because then you see the statements. But the automated process of like a budgeting app is what is preferable. I don't care if you use mine, you could use anyone's. I prefer mine. I prefer the simple one, whatever. That's fine. But it's the automated, like account connections and everything that is what is gonna actually help versus you sitting down, have to do it. Cause we probably didn't stick to it, right?

• 17:52Speaker 04

  No.

• 17:52Caleb Hammer?

  Exactly. And that's what always happens. Instead of just being able to open up and see like what is actually happening for the sake of the month. What are the conversations around money in this house?

• 18:00Speaker 04

  The conversations of finances within us is just, all right, go buy it.

• 18:04Speaker 03

  Well, okay, that's not exactly.

• 18:07Speaker 04

  Yeah, we, we don't, we don't have a, oh, we used to, I think we used to a long time ago, had a budget of if you're gonna spend anything over a hundred dollars, anything over a hundred dollars needs to be between you and I in agreement. That was, you know, years ago before the kids. Um, and we haven't done that in a long time, but that was something that we had that was gonna be helpful. Now where she's, you know, she and I, I'll, I'll throw myself in there. She and I are buying whatever we want over a hundred dollars without, you know, asking or discussing it with someone. We're just doing it and then afterwards we're, hey, I bought this. You know, I'm like, are you serious? Like?

• 18:38Caleb Hammer?

  So what do we, what do we do in those instances then?

• 18:41Speaker 04

  Forgetting and moving on.

• 18:43Caleb Hammer?

  Why? But that doesn't produce anything going forward.

• 18:47Speaker 04

  Well.

• 18:48Caleb Hammer?

  That's not gonna get us anywhere.

• 18:49Speaker 04

  No, but that's what we've been doing, you know, and, and I'm.

• 18:52Caleb Hammer?

  Is it to avoid confrontation?

• 18:54Speaker 03

  No, I don't think so.

• 18:55Caleb Hammer?

  Then what is it?

• 18:56Speaker 03

  I think.

• 18:56Caleb Hammer?

  Well, what's the logic? Let's, let's hear the logic.

• 18:59Speaker 03

  Like if I spend money on stuff for the kids, like clothes or activities or holidays and he spends. He knows it's happening. Yeah.

• 19:07Caleb Hammer?

  He knows it's happening. Does he know how much?

• 19:08Speaker 03

  He doesn't know how much usually, no.

• 19:10Caleb Hammer?

  Is there a reflection? Do we sit down and discuss how much at some point?

• 19:14Speaker 04

  Yeah, no, it shows, it shows afterwards when the boxes show up at the house.

• 19:16Speaker 03

  Yeah, that's when we usually talk about it.

• 19:18Caleb Hammer?

  Talk about the monetary amount?

• 19:20Speaker 04

  Oh, I do. Oh, I do. Oh, I do. We bought a new gym, gym member or gym, uh, beam and thing that was crappy, you know, and stuff like that. Uh, got home and. Then we're not even gonna use it and it was over a hundred dollars, you know, so, you know.

• 19:33Caleb Hammer?

  But we blame inflation instead of our inability to just have a conversation or sit down about it or not.

• 19:38Speaker 04

  I wouldn't say we don't blame.

• 19:40Speaker 03

  We do talk about money a lot.

• 19:41Caleb Hammer?

  You kinda did.

• 19:42Speaker 04

  We included, she did.

• 19:43Speaker 03

  It's one of the factors, I think.

• 19:45Caleb Hammer?

  I think the bigger factor is you guys don't fucking talk.

• 19:48Speaker 03

  No, we talk a lot. Oh, we don't talk before we purchase now.

• 19:51Caleb Hammer?

  Yeah, I would say that's a little bigger of an impact.

• 19:54Speaker 03

  We talk after the purchases usually.

• 19:56Speaker 04

  But again, it's not always, you know, the best because like I'm like, you didn't need to buy that. You don't need to buy that. Oh, it's already bought. Well, that doesn't work.

• 20:02Caleb Hammer?

  Who wears the pants here financially?

• 20:04Speaker 03

  Me either.

• 20:06Caleb Hammer?

  None of us?

• 20:07Speaker 03

  I think we're both spenders.

• 20:08Speaker 04

  We are, we're both spenders.

• 20:09Speaker 03

  And I think one of the ways.

• 20:10Caleb Hammer?

  I'm a spender, but I also know how to budget. I allocate the amount of money that I'm allowed to spend. It's okay to be a spender. Just have any kind of knowledge into your financial situation. Again, I mean, just blaming inflation isn't our way out.

• 20:24Speaker 03

  Right.

• 20:24Caleb Hammer?

  It's actions. For you, it's gonna be actions more than anything. Again, literally this time, last year, to now, 2.4%.

• 20:33Speaker 04

  But I don't pay attention to it.

• 20:34Speaker 03

  I believe you. It doesn't feel like that, but I believe you.

• 20:39Caleb Hammer?

  Feel, because you want to spend more, if we're being honest, right?

• 20:45Speaker 03

  Well, yeah. I mean, who wouldn't want more of their money to spend or to control in the way that they want it? But yeah.

• 20:52Caleb Hammer?

  When you guys got together, the finances was one of you, one of you good, both of you, both of you good. What did it look like? What is this like? I wanna see what you guys have been through in these 10 years finance related before we dive into this. Cause I need to see who's where and what's happening.

• 21:10Speaker 03

  So we met when I was 19, he was 26 and we were both in the Navy.

• 21:15Caleb Hammer?

  I don't need the love story, but who's the finance, where were each of those finances?

• 21:18Speaker 04

  When we were there, I had a lot of debt. I, I, I, prior marriage, you know, obviously being in the Navy, you know, by myself first time, uh, living or. San Diego, going overseas, coming back to, you know, to the States.

• 21:31Caleb Hammer?

  Boys on the boat, yeah.

• 21:32Speaker 04

  Yep.

• 21:32Caleb Hammer?

  I get it.

• 21:33Speaker 03

  No.

• 21:34Speaker 04

  Lots of expensive purchases myself, you know, lots of things just to live, right? Um, so I racked up a lot of debt before I married her.

• 21:42Caleb Hammer?

  Did you know that?

• 21:43Speaker 03

  No.

• 21:44Caleb Hammer?

  Really?

• 21:45Speaker 04

  No, she, I did, and because I knew that I was about to go to overseas and to the Middle East, where I was gonna make a lot more money.

• 21:52Caleb Hammer?

  And that's where that gets forgiven?

• 21:54Speaker 04

  That's where the goal was to hopefully pay off the debt before, um, we were able to come, live together again, um, after the marriage. Uh, so she knew about a little bit, but she didn't know all of it. It wasn't like I was intentionally trying to hide all of it and stuff like that. I was just like, hey, let me, let me, let me pay off what I can.

• 22:10Caleb Hammer?

  Then.

• 22:10Speaker 04

  So then, so then I went overseas, uh, to Bahrain. I paid off $20,000 of the debt there, which was nice. Um, you know, so coming back together, I had still a little bit of, of debt for myself still, when we, uh, when we, you know, got to, got to live together again.

• 22:26Speaker 03

  Geographically together, cuz I was in, I was stationed in Spain and he was stationed in Bahrain.

• 22:30Caleb Hammer?

  What was your thought about the debt when you heard the debt? And how, the, cuz obviously we learned that. I mean, we only paid off the debt not horribly long ago the first time. So I'm assuming that part of the debt was some of it.

• 22:43Speaker 04

  Yeah.

• 22:44Caleb Hammer?

  Who's been the accumulator of debt in the relationship?

• 22:46Speaker 03

  Uh, he came into the relationship with a lot of debt. Um, but after we paid off that debt, then probably maybe I've taken on more debt. But it's been pretty equal.

• 22:59Speaker 04

  I think we both have been, you know, spending a lot of the debt, putting everything in the debt. Um, however, I think it's been a lot more with the children, uh, you know.

• 23:07Speaker 03

  We can't blame the kids, but.

• 23:08Speaker 04

  I'm not blaming the kids on the situation.

• 23:11Caleb Hammer?

  High income earning households, they can get even more [BLEEP] than low income earning households because you have the ability on paper to qualify for more debt and you'll get yourself in a position that is just absolutely [BLEEP]. Then you're gonna put your kids in a horrible situation. You want to give them the life now? You want to give them the experiences now, but you're gonna put them in a situation where they are only gonna see stress between mom and dad, because mom and dad are finally gonna have the conversation about money and it's gonna go, it's gonna be a blow up because, oh no, we can't pay our minimum payments this month.

• 23:45Speaker 03

  That's, I don't think that's ever happened, but.

• 23:47Caleb Hammer?

  Happened. You're on the track to happening.

• 23:50Speaker 04

  I don't want that. I don't want, I don't want the kids to be.

• 23:52Caleb Hammer?

  Want to take out a, a home equity loan to start paying off some debt or something. Good luck with where the market's been overall. Like, you can only do that so many times. You'd have to have a complete boom in the market to be able to keep pulling.

• 24:04Speaker 04

  Yeah.

• 24:05Caleb Hammer?

  So then where's like, if we're maxing out our debt, debt to income's really bad, where's our exit from debt besides bankruptcy at a certain point? This becomes bankruptcy. Exhalation, you might not be able to plow.

• 24:18Caleb Hammer?

  How are we getting out of debt?

• 24:19Speaker 03

  Um, only more recently, I think he's been more on board about switching some of the lifestyle things. I think it's hard for both of us to like, it just, I think we both needed to be fair. Like if I'm getting rid of something, he has to get rid of something. And so just agreeing on what to cut.

• 24:39Caleb Hammer?

  What's your fun? What's your fun? Yours is the gymnastic, whatever. What's your fun?

• 24:44Speaker 03

  My daughter's.

• 24:44Caleb Hammer?

  Your, your fun is pointing to kids. What's your fun?

• 24:47Speaker 04

  Uh, I, I'm a collector. I collect a lot of things. A lot of different things. Uh, I go through phases. Um, so I've done movies, DVDs for the longest time when, when they were still making DVDs and stuff. Yeah. So I have a very large collection of that. Uh, then.

• 25:01Caleb Hammer?

  Who's more motivated?

• 25:04Speaker 04

  Motivated.

• 25:04Caleb Hammer?

  To get out of debt.

• 25:05Speaker 03

  Me, probably.

• 25:06Speaker 04

  Probably her.

• 25:07Caleb Hammer?

  Why wouldn't you be motivated? I mean, we're reaching retirement.

• 25:11Speaker 04

  I'm motivated. I'm motivated. I just, I think.

• 25:12Caleb Hammer?

  Why do you see her being more versus you?

• 25:14Speaker 03

  I'm leading the conversation.

• 25:16Speaker 04

  She is.

• 25:16Speaker 03

  Of fixing our finances.

• 25:17Caleb Hammer?

  Yeah, but your conversation's only post-spending.

• 25:19Speaker 04

  I think, I think there, you know, there, there's, there needs to be a lot of stuff that she needs to stop doing and spending on, and I need to stop spending on.

• 25:25Caleb Hammer?

  What would you say she needs to stop spending on?

• 25:26Speaker 04

  Oh, uh, close, um, or, uh, you know.

• 25:32Speaker 04

  Things for the kids that are not needed birthdays, Christmases.

• 25:37Speaker 03

  I was trying to get things on sale, like, and then I don't know if you go to shopping centers in December, they're insane. They're so packed, there's nothing left on the shelves.

• 25:45Caleb Hammer?

  What do you think he should start spending on?

• 25:47Speaker 03

  Hmm, maybe like eBay, all of like the old military memorabilia.

• 25:54Caleb Hammer?

  All right, well, let's see where the spending is, guys. I'm gonna go three, two, one, go. At the, at the same time, on go, I want you to give me what you think your household financial score is. Zero to 10, 10 being the best, zero being the worst, okay? Just where you think you are in the world of finances, okay? Three, two, one, three. Ken, if you want to see where you stand, take the assessment, you can go to CalebHammer.com or click that link in the description below. And you can come sit across from me at this table by going to CalebHammer.com/apply. And don't forget, if you don't want to be like any kind of guest on this show, all you have to do is download my budgeting app. And for those who sign up for the annual version, I'll sign our cookbook that can't be purchased anywhere else, and I'll send it directly to your door. Navy Federal, no surprise.

• 26:38Caleb Hammer?

  So, what is going on with this card, guys?

• 26:41Speaker 03

  Is it, I think the first one's mine, right?

• 26:43Caleb Hammer?

  Oh my, me! The one that's basically maxed out at $24,608.43?

• 26:49Speaker 04

  Yeah, that's yours.

• 26:51Caleb Hammer?

  That's an insane balance! What are we doing? It's an insane balance! That's a disgusting balance! With the $1,757.25 to purchases, while only making the minimum payment, if we could only make the minimum payment, it's basically maxed out, interest is accruing, we can't pay it off to save our life, why the f**k are we purchasing $1,757 on here? Of all places, why? Why? Oh come on, you seem like the reasonable one! You're the one that wants to get out of debt, you're the one that's pushing the household forward, you're the one that's starting the conversations, but you're also the one that's gonna go blow up this card and purchase thousands of dollars on the card that can't be paid off, that is accruing interest. My son's birthday was last month.

• 27:37Caleb Hammer?

  Sake. And parties are really, I do. I want him to have a college fund. I want him to not have to go save mommy and daddy. When mommy and daddy can't keep a roof over their head. When he's in his young adulthood and has to all of a sudden sacrifice. Come on, we've seen this happen in life. I've seen people come on the show who are the parents that the kids have to have to help. I've seen people who are the kids that have to help the parents. It's a birthday. We can do, young kids, right? I don't have one. Okay, but young kids, we all, we all know young kids. You can do without it being bougie and crazy and they will still love it. Okay? And we're talking teenagers when they start to be like, um, what the, okay? So it's like. Sure.

• 28:19Speaker 04

  Well, I, I think that definitely snuck up on us that, you know, all of the payments stuff because we, we didn't plan for it.

• 28:27Caleb Hammer?

  What, what, what, what snuck up with an our birthday?

• 28:29Speaker 04

  The charges, the payments, no, just whatever, just buy whatever.

• 28:31Caleb Hammer?

  This is a purchase of a thousand seven hundred fifty seven to maxing out the car. How did that sneak up on us?

• 28:36Speaker 04

  I don't know.

• 28:37Caleb Hammer?

  How could that's, that's not a sneak up. That's not a sneak up. What do we mean sneak up? This isn't, it's not Al Qaeda come behind you. This is what.

• 28:45Speaker 04

  I just, I just think that with all this stuff, we, the way we live and the way we do it is that we have our, our main debit card. That we use, right? That we purchase everything. And we get paid on that one. I get paid twice, you know, a month. She gets paid once a month. We use that money. Once it's gone, we switch to our, our credit cards. And that includes, that's whatever, you know, oh, hey, I gotta get gas now because we're down to a hundred dollars left in our bank account.

• 29:06Caleb Hammer?

  No, you guys do not get down to a hundred dollars in your bank account with your income. Yeah, we do. What are we?

• 29:13Speaker 04

  We have, we have all these bills. If you look at that, there's a lot of.

• 29:17Caleb Hammer?

  If we have all the bills and we're not having birthdays.

• 29:19Speaker 04

  We are having birthdays.

• 29:20Caleb Hammer?

  No, no, we're going to McDonald's.

• 29:22Speaker 04

  We are going to McDonald's.

• 29:23Caleb Hammer?

  For, for the birthday. And that's the one thing we're doing that month, that year. Yes, if we have bills that we can't pay, we have a hundred dollars in our checking account. We can pay them.

• 29:30Speaker 04

  No, every year, the thing is every year she wants to have one child have a, a, a good birthday, right?

• 29:35Caleb Hammer?

  One child? Do we select two?

• 29:37Speaker 04

  No, it rotates between the children. Okay. And one child gets to have a birthday of something extravagant.

• 29:42Caleb Hammer?

  Birthday party.

• 29:43Speaker 04

  Party, whatever it is.

• 29:43Caleb Hammer?

  And the other one has like a family thing.

• 29:45Speaker 04

  So this year, my son, he took his three best friends to an entertainment place. All right? And we had to pay all that stuff there. All right?

• 29:53Caleb Hammer?

  And that is more important than the household stability of our financial situation for the sake of their future.

• 29:58Speaker 04

  No, I just don't think we thought about it. We didn't include it. We just did it.

• 30:02Speaker 03

  I just think our household is really stable.

• 30:04Caleb Hammer?

  Okay, bull. You have a hundred dollars in your checking account.

• 30:07Speaker 04

  Feel? You can't feel a hundred dollars in our checking account. I'm gonna, okay. Our house is stable for living and family and stuff like that. What she's talking about is-

• 30:14Caleb Hammer?

  I'm talking finances.

• 30:15Speaker 04

  She's talking finances. That's what you're talking about. She's not talking about finances. She's not talking about finances.

• 30:19Speaker 03

  Yes, I am.

• 30:19Speaker 04

  Financial was stable?

• 30:21Speaker 03

  Okay.

• 30:21Speaker 04

  We're not.

• 30:22Speaker 03

  This is my opinion, is that we have money coming in every single month, stable income that you can expect. I know, I'm not saying that the spending is stable, but the income is-

• 30:34Speaker 04

  That's what it is. That's the problem. The income is coming in, yes, I understand that babe. But you have, the problem for us is that when we do it, we spend that money. That is not stable.

• 30:44Speaker 03

  Okay, well, agree to disagree.

• 30:45Speaker 04

  Okay, we, agree to disagree, so that's why he's here. That's why we're here now, because it's not a agree to disagree.

• 30:51Caleb Hammer?

  How could you disagree with that? Hey, Poogie, our Memorial Day sale is happening right now, and it's your shot to grab some of the tools you need to own your financial future.

• 31:02Caleb Hammer?

  And for 10 short days, May 23rd through midnight on June 2nd, every single one of our classes is discounted. Pick any individual course and slash 20% off. Just $157 each, or you could go all in with the complete Master Your Money bundle and save $237 at 30% off. So you can secure the core four courses at a massive discount. And inside, you'll find step-by-step lessons on budgeting, crushing debt, and beginner-to-advance investing. Everything you need to start making smarter money moves today. And this deal disappears the moment the clock hits midnight on June 2nd. Click the link in the description below, lock in those Memorial Day savings before they're gone. Take control of your financial future today. See you in the classes.

• 31:47Speaker 03

  You're saying that financially we're unstable even though we're making all the payments?

• 31:51Caleb Hammer?

  Girl, your debt's going up.

• 31:52Speaker 03

  I understand that the debt is going up.

• 31:54Caleb Hammer?

  Because in order to purchase the things you want, in order to make the payment- I will give you an example. May I, may I draw this for you? Can I draw something? I'm gonna have a little drawing exercise, you know?

• 32:06Speaker 03

  Okay.

• 32:06Caleb Hammer?

  We have a top camera now. Hello, top camera. Okay, let's say this is our income. Okay. Okay, let's say that. Okay, and let's say this part's our min payments. Okay?

• 32:18Speaker 03

  Okay.

• 32:18Caleb Hammer?

  So this is our minimum monthly payments. In order to make that, and maybe let's say we're making that. I don't know. Well, let's go through. But you still want it like you spend the entire party chart, even though these are minimum monthly payments. How do we do that? How do we spend the full column?

• 32:34Speaker 03

  Well, we spend the full.

• 32:35Caleb Hammer?

  No, no, no, no. How do we spend the full column? How do we do that? How do we make that work? If we want to spend this much, but we also have to unfortunately allocate that much to minimum monthly payments. How do we do that?

• 32:45Speaker 04

  I don't have the answer. That's why.

• 32:46Caleb Hammer?

  Well, the answer is we take this amount of spending right here. And we put it on credit cards. Because if you put this amount of spending that is needed to go to minimum monthly payments, but we want to spend it on fun, you spend it on fun here. You spend it on fun on the credit cards in order to make the minimum payment. If you were not spending on credit cards, you could not make your minimum monthly payments. If you did the same amount of spending you did on the debt, like on the credit cards that went up that you made minimum payment on that pushed it to the max. If you put this on checking, you could not make minimum payments. You're only able to feel like you make the bills paid because you put fun on credit cards.

• 33:24Speaker 03

  Okay, that's true. That's true.

• 33:25Caleb Hammer?

  So how are we financially stable? I feel like we're going into debt.

• 33:30Speaker 04

  We are. That we are.

• 33:32Speaker 03

  Okay.

• 33:32Speaker 04

  We're not financially stable. We're not financially stable.

• 33:35Speaker 03

  Well, okay, I still disagree. I do feel like we are financially stable. But I do hear where you're coming from.

• 33:42Speaker 04

  Oh, my God, no.

• 33:43Speaker 03

  Okay, well.

• 33:44Caleb Hammer?

  Sir, we have a financial insurgency happening. Put it down.

• 33:49Speaker 04

  I mean, I just, the fact of the matter is, is we both live way without our means. We have a lot of fun. We pay a lot of money towards fun, whether it be on the credit card or whether it be debit card. I don't think we have a stable process to do anything. We just say.

• 34:02Speaker 03

  Everything's on auto pay and it comes out of our debit.

• 34:06Speaker 04

  Bills are on auto pay.

• 34:07Speaker 03

  Yeah, it is.

• 34:07Speaker 04

  Which is, okay, that's that. But what? Talking about like just in general, anything we do, whether groceries, the gas, the traveling, the whatever we're doing. Now, I will tell you, I would tell you there is a lot of times when we are, we are, one, one parent is with one child at their activity, one parents, the other parents with the other child at the other activity. So we're not even together for, you know, dinnertime. We're not together to do a lot of stuff. So we're spending double the amount of stuff, things going through that. You know, that, that happens a lot too. Um, there's a lot of things that come to, that's coming to fruition for us that we just end up going, all right, just put it on the green card. Put it on the green card.

• 34:39Caleb Hammer?

  All right, let me ask you a question. We know what your income is, right? A thousand nine hundred? And that's basically what we saw last month.

• 34:44Speaker 04

  All right.

• 34:44Caleb Hammer?

  Yeah, actually, basically identical.

• 34:46Speaker 04

  Yep.

• 34:46Caleb Hammer?

  Uh, what do you think was spent?

• 34:49Speaker 03

  On mine or his?

• 34:51Caleb Hammer?

  Nope, household.

• 34:52Speaker 03

  Oh.

• 34:52Speaker 04

  What was spent in a month?

• 34:54Caleb Hammer?

  Yep, in the most recent month.

• 34:55Speaker 03

  I would say probably.

• 34:56Caleb Hammer?

  For the statements that we have.

• 34:57Speaker 03

  Fourteen thousand?

• 35:01Caleb Hammer?

  Okay, and you?

• 35:03Speaker 04

  Fourteen.

• 35:03Speaker 03

  Like total for the whole month, like how much is coming out?

• 35:06Speaker 04

  We, oh, we get eleven thousand. Yeah, okay, yeah.

• 35:08Speaker 03

  Well, twelve-ish thousand is coming in.

• 35:10Speaker 04

  Yeah, well, it's over, it's over eleven thousand. I'll give you, it's like thirteen, thirteen thousand.

• 35:13Caleb Hammer?

  If you are the disagrier, how is that considered financially stable? If we're spending, you said fourteen thousand. If we're spending fourteen thousand, making eleven thousand nine hundred, twelve thousand, let's say, how is that financially stable?

• 35:26Speaker 03

  It's not financially smart, but it is stable as long as you can make the payments.

• 35:30Caleb Hammer?

  That's not, no, no, no. I need to correct this mindset because it's dangerous for the future. It is not stable if our debt is just building, building, building, because then it gets to a point where all of a sudden the damn breaks.

• 35:41Speaker 03

  Okay.

• 35:42Speaker 04

  And we've been there. That's why we, that's why.

• 35:45Caleb Hammer?

  And that's when you did the consolidation because it got to the breaking point?

• 35:48Speaker 03

  We've never been to the breaking point. I don't know what you mean by that.

• 35:51Speaker 04

  The breaking point is the way that we have been, like, all the money that's been accumulating over everything.

• 35:57Speaker 03

  Well, okay, I think we are to the point, the fact that I'm, I've almost maxed out my credit card and we don't have.

• 36:02Caleb Hammer?

  It's, it's at max. I mean, come on. You, you can go get a couple fries from McDonald's, but it's maxed.

• 36:06Speaker 03

  Right, well.

• 36:07Speaker 04

  And you've raised that.

• 36:08Speaker 03

  I guess we're near the breaking point, I guess, but I don't know, I don't.

• 36:12Caleb Hammer?

  What?

• 36:13Speaker 04

  We're not, no, no, we are at the breaking point, big.

• 36:15Speaker 03

  Okay.

• 36:15Speaker 04

  We are at.

• 36:23Speaker 05

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• 36:45Speaker 04

  The breaking point, that's why we're here now, to try to hopefully get a grasp of this.

• 36:49Speaker 03

  Yeah, I do want to make changes.

• 36:51Speaker 04

  No, we need to make major changes. We need to make a lot of major changes. But we are at that point right now that we are literally needing to do this because we do not, we can't live, we're living outside of our payments.

• 37:00Speaker 03

  I agree.

• 37:00Speaker 04

  Okay, that is not financially stable.

• 37:03Speaker 03

  Well, I just came from a really unstable, financially unstable household. And so to me, this is financially stable.

• 37:11Speaker 04

  No, that's great. No, this is extra money.

• 37:13Caleb Hammer?

  I came from a financially unstable household for closure notices. You know what that did? That made me get my [BLEEP] together. Why would you seeing financially unstable mean, let's replicate that for my children?

• 37:23Speaker 03

  I think our children have a really great life.

• 37:25Caleb Hammer?

  They have a great life by you going into debt. Whenever my parents were able to send me to go do something cool, a summer camp or something, it was on debt. And then I saw that stack to the point where minimum payment could not be made, which meant the mortgage payment couldn't be made, which meant foreclosure notices.

• 37:39Speaker 04

  And we don't want, I don't want to get there.

• 37:40Caleb Hammer?

  But we're headed there. What do we do if one half of the relationship honestly thinks that, okay, we're not at the breaking point. We can continue going down this path, but the other doesn't. How are we able to combine that?

• 37:51Speaker 04

  Well, I don't.

• 37:53Caleb Hammer?

  What can we do?

• 37:53Speaker 03

  I don't think either one of us wants to continue on the track we're on.

• 37:56Caleb Hammer?

  But you are not seeing the alarm sound like he is.

• 38:00Speaker 04

  Yes. Yes.

• 38:01Speaker 03

  I don't know about that because I'm the one that brought us here.

• 38:04Caleb Hammer?

  I've heard your language, though.

• 38:05Speaker 03

  Okay.

• 38:06Caleb Hammer?

  I mean, we've all heard you talk in this conversation. I'm not trying to bully you. I'm not trying to stack up against you. I don't like when it gets 2v1, but what do we do when it gets to the point where he sees the wee-woos and you're not?

• 38:19Speaker 04

  And this has happened before.

• 38:22Caleb Hammer?

  Really?

• 38:23Speaker 04

  Opposite.

• 38:23Speaker 03

  What do you mean?

• 38:24Speaker 04

  Where I was the one, you know, that wasn't seeing the, if you want to say the, you know, the bells and whistles, right? And she was the one going, hey, this is the situation. We're, we're two of them. And that's where we were able to come together, pay off the bills, pay off the debt, right? The first time. And it was nice. It was great. Snowball, great. All right? We, we finally got on. Because I, I was not understanding it. I was just living, just living, right? Doing what I want to do. So she got me on to understanding that. And here we are now, years later, and now it's reversed. And

• 38:49Speaker 03

  I don't think it's reversed.

• 38:50Speaker 04

  It is reversed. It's reversed because you don't see the bells and whistles, as he wants to say. That's pretty cool.

• 38:55Speaker 03

  Okay, I don't think, I don't see the bells and whistles, but I do think we need to fix our finances.

• 38:59Speaker 04

  We do.

• 38:59Speaker 03

  Can we just agree on that?

• 39:01Speaker 04

  Okay, we need to, yes.

• 39:02Caleb Hammer?

  We all agree on that.

• 39:03Speaker 04

  That's why we're here.

• 39:04Caleb Hammer?

  But the language behind it is not a good.

• 39:07Speaker 03

  I don't feel like it's an emergency.

• 39:08Speaker 04

  Oh, it is.

• 39:09Speaker 03

  Okay.

• 39:10Speaker 04

  It is an emergency. That's why we need to fix this.

• 39:12Speaker 03

  Okay.

• 39:12Speaker 04

  Because we do not have the way to live the way we're living.

• 39:16Speaker 03

  Although we do have more income coming in, starting in June, July.

• 39:20Speaker 04

  No, that doesn't, okay. No, because that's, that is, the, the problem though is that, that is what's coming in a little bit for you to go to school. All right? But next year, I am done. I am done working at the Navy. The, I am, I will not have that, that job anymore. All right? And I'm only going to get some partial mo- money back, right? We don't know what my VA is going to look like. All right? So we, we have to change our entire lifestyle now, before we get to that point. And, oh, great, now we're, now I'm retired. Now what are we going to do? We don't, we cannot live and cannot do this stuff between now until I retire. We have to figure something out.

• 39:55Speaker 03

  Okay, I agree.

• 39:56Caleb Hammer?

  But you agree on the sentiment, but you don't agree on the fundamentals from the sound of it. Because you're pushing

• 40:02Speaker 03

  What fundamentally am I not getting?

• 40:04Caleb Hammer?

  Are you serious right now, bro? That you think that this isn't horrible, as long as we can make the minimum monthly payments, but you're pushing towards that edge. That's what you were pushing back on. You agree with the sentence that written on paper. Let's get out of debt. But you guys are not aligned on the fundamentals of where we're at, what it takes to get there.

• 40:25Speaker 04

  No.

• 40:26Speaker 03

  I think we are aligned on what it takes to get out of debt.

• 40:29Speaker 04

  No. You say it, yes, but then look at your, look at your, your things that you buy constantly. I tell you all the time, just stop buying that, stop buying that. All right, good example, right? Until I freaking did it, but the candle subscription, right? I wanted it, didn't need it, but I kept doing it. You kept telling me to cancel it. It didn't cancel until finally when we get to the point where like, now we gotta start canceling stuff. But you're still buying stuff that is there that we do not need. Constantly. You don't need to buy the children a million things of the same clothes, the same shoes, the same stuff.

• 40:59Speaker 03

  They need school, they need sports.

• 41:01Speaker 04

  But what they don't need is 18 pairs of freaking pants because you like the way they look.

• 41:05Speaker 03

  They don't have 18 pairs of...

• 41:07Speaker 04

  Freaking... I'm giving you an example of the fact that it is. Okay, pick something else that you know that I'm right on.

• 41:15Speaker 03

  When it comes to the children's clothes?

• 41:16Speaker 04

  No, just anything, in general, anything, us.

• 41:19Speaker 03

  I don't know.

• 41:20Speaker 04

  That's what happens all the time, though.

• 41:22Speaker 03

  Okay.

• 41:22Speaker 04

  You buy stuff all the time. There's always something you buy and you're like, oh, it's the wrong size. And I tell you that all the time. It's the wrong size, this is the wrong stuff. It's the wrong measurements, it's something like that. You're like, oh, I didn't know. All right, oh, I thought it was gonna work. Constantly.

• 41:36Speaker 03

  Okay, constantly feels a little... All right, well, whatever.

• 41:41Caleb Hammer?

  I'm curious, is that how every conversation goes? Cause this is, so what kinda happened, right? Is, uh, I mean, it was a little heated and that's totally okay, the emotions are good. Like, nothing's wrong with that. You know, he kinda pushed back on you about some of the purchases and you kinda did the thing that sometimes upsets me on the show and like, like the audience isn't here, so, you know, they don't fully get the vibe and they've kinda called me out when I, you know, get a little upset at it. But it almost feels like, in a way, kinda when people do that to me, when I push back on them, is they're just kinda saying that just to...

• 42:14Speaker 03

  No, I, before he said the beam was a bad purchase, I recognized the beam was a bad purchase. I had really good intentions, but then the actuality of it ended up being $150 we didn't need to spend on a second beam.

• 42:27Speaker 04

  Sweetheart, your intentions are always, always wonderful.

• 42:30Speaker 03

  I do have really pure intentions and I have really, and I do think that has partly led to our debt problem.

• 42:36Speaker 04

  It's your execution on the days.

• 42:37Speaker 03

  Okay, I agree. Okay.

• 42:38Caleb Hammer?

  And for what it's worth, I mean, I'm not saying it's, it's bad to be giving or anything. It's not even all, at all. But, you know, there's lots of psychological analysis that shows that a lot of the acts of giving, you know, especially on a reoccurring way, is usually, is also driven a little bit by selfishness because you'd get high dopamine levels through gifting.

• 43:00Speaker 03

  No, I think it's more about connecting.

• 43:02Caleb Hammer?

  You love gifting and it just, you see that Lord and it feels really good. And it doesn't mean gifting's bad. I'm not saying that. I want to be very clear. But it, there are, it can very much be associated with a selfish desire to feel the reward of giving.

• 43:19Speaker 04

  I will, I will tell you, we do love blessing others. That is one of our things. We bless others with.

• 43:24Caleb Hammer?

  But you guys can bless so much more people if we're not in a lot of debt.

• 43:27Speaker 03

  Okay, fair enough.

• 43:28Caleb Hammer?

  Imagine the amount of blessings we can give when we're out. Okay. By the way, the real number, you said 14,000. You thought it was a little less than that. It was $15,116. You spent 27% more than came in.

• 43:41Speaker 03

  Okay.

• 43:42Caleb Hammer?

  How long can we do that?

• 43:45Speaker 04

  But I will say that that is our biggest spending moments and our biggest hit to ourselves is from December to May. That's all the birthdays, that's all the, the Christmases, the, the holidays, that's all the activities, that's everything that we do.

• 43:57Caleb Hammer?

  Are we saying if I look last fall, last late summer, I'm not going to see you spending more than you made?

• 44:02Speaker 04

  No, you're going to see, but not 27%. You're going to see.

• 44:07Speaker 03

  No, you will because I went crazy for this Christmas. This particular Christmas, I went way above and beyond.

• 44:13Caleb Hammer?

  What's so special about this Christmas?

• 44:14Speaker 03

  It's, I don't know.

• 44:15Speaker 04

  It was last, oh my god.

• 44:16Speaker 03

  I just tried something new where I started in July and I was trying to get things on sale.

• 44:20Caleb Hammer?

  What?

• 44:21Speaker 04

  Again, it was a good intention. It was a great intention. I love your blessings.

• 44:24Speaker 03

  I was trying to get things on sale and I just was like, I'd buy it.

• 44:27Speaker 04

  So we wouldn't be spending a billion dollars in December, right? It was nice, but the fact, but the problem was that we, because it, we consistently, every freaking paycheck, went and got them multiple things and multiple things. And our, and our, our closet filled up extremely fast.

• 44:43Speaker 03

  Yeah.

• 44:43Speaker 04

  And it was a lot. And here we are for hours and hours wrapping presents. It was a great Christmas for the children.

• 44:49Speaker 03

  It was too much.

• 44:50Speaker 04

  But it was too much. And every, every time a child puts a, a new want on their Christmas list, right? You go and, we went and got it, right?

• 44:59Caleb Hammer?

  I can only speak it myself as a kid. And we can all associate it with our own things when we look back to Christmas. But, you know, I would probably operate on this if I had kids. I would operate on my own thing, right? I don't remember all the little gifts I got for Christmas. What I do remember were like the cool, special, final gift, right? Like, I remember getting like the first Xbox when that first came out and playing that with my dad on the day of Christmas. I have that memory. I remember getting like a castle that I could play with my little action figures in. I remember that. I remember like these very specific things and that's what's gonna matter at the end. It's not just the little, it's not about the amount.

• 45:35Speaker 03

  Okay, but I feel that it is my slash our responsibility to create the Christmas magic for the kids. Whether it's going to see the Christmas lights, drinking the hot cocoa, caroling.

• 45:46Caleb Hammer?

  Hot cocoa's like five bucks, though.

• 45:48Speaker 03

  Okay, I'm just saying, but it's like all the little things that go into each and every holiday. I put that on my shoulders.

• 45:54Caleb Hammer?

  My first like 10 Christmases though, and I don't mean to keep bringing it back to me, I guess I do apparently, is, was basically poor people Christmas, or at least living on debt. We went and we saw the things and like, but it was all on the cheap end of the side or you warm it up.

• 46:09Speaker 04

  I, I will tell you, I will say though, we both do come from, you know, a.

• 46:13Speaker 03

  Humble backgrounds.

• 46:14Speaker 04

  Humble background. There you go. Right? So we both. You know, had it as best as my father could give me and my brothers and sister, you know, he gave it to me.

• 46:22Caleb Hammer?

  Yeah.

• 46:22Speaker 04

  It was a phenomenal time of much, but.

• 46:24Caleb Hammer?

  Then you know bougie Christmas isn't required for a nice Christmas.

• 46:27Speaker 04

  But we want to do give that to our children. We wanted to make sure that our children always had it better than what we came.

• 46:32Caleb Hammer?

  Would they know if it's bougie versus if it's just nice? Cause to me cinnamon rolls, fireplace, you know, family together, dogs hanging out. That to me is the nice Christmas. So some Christmas.

• 46:43Speaker 04

  I don't know.

• 46:43Caleb Hammer?

  Playing and some gifts to open and seeing each other, enjoying it. That to me is the nice Christmas, not having to go crazy. They don't, they don't recognize like the value dollar of it.

• 46:52Speaker 03

  No, they don't. They have no idea.

• 46:53Caleb Hammer?

  They want the experience. They just want the warmth of Christmas.

• 46:56Speaker 04

  I know, but we went, we went crazy and then.

• 46:58Speaker 03

  I specifically.

• 46:59Speaker 04

  And then on top of that, you know, we got, you know, the big, the big item you want to talk about, right? That they got. The iPads.

• 47:04Speaker 03

  We got them iPads.

• 47:05Speaker 04

  Because their old iPads were dying because they were the, you know, our crappy old iPads.

• 47:08Caleb Hammer?

  Couple of things with that. You want them to be iPad kids?

• 47:10Speaker 04

  I don't.

• 47:11Speaker 03

  Just because they have iPads doesn't make them iPad kids.

• 47:14Caleb Hammer?

  It depends.

• 47:15Speaker 03

  They're heavily into sports and activities and they're smart.

• 47:18Speaker 04

  But the problem with that was because we bought them two new iPads.

• 47:20Caleb Hammer?

  But you get them iPads or iPad Pros or iPad Airs?

• 47:23Speaker 03

  They got two new iPads.

• 47:25Caleb Hammer?

  iPad what's? iPad what's?

• 47:26Speaker 03

  So I got myself just iPad 10.2.

• 47:29Speaker 04

  I think it was.

• 47:29Speaker 03

  It was whatever the newest iPad was.

• 47:31Speaker 04

  She got herself a new iPad.

• 47:32Speaker 03

  Cause they had a nicer iPad than me and I'm in school and I use it every day.

• 47:36Caleb Hammer?

  Is it a competition?

• 47:37Speaker 03

  No, but I was like.

• 47:38Caleb Hammer?

  What are we doing?

• 47:38Speaker 03

  Why does a seven year old need a better iPad than me? And I'm literally doing.

• 47:42Caleb Hammer?

  It doesn't and neither do you. I mean, neither of you need.

• 47:46Speaker 03

  Well, I need it. I use it.

• 47:48Caleb Hammer?

  But you already had one, it sounds like.

• 47:50Speaker 03

  Yeah, that's.

• 47:50Caleb Hammer?

  Who cares if theirs is nicer? They just have the newer one.

• 47:54Speaker 03

  Yeah.

• 47:54Caleb Hammer?

  That's just time. That's just a timeline.

• 47:57Speaker 03

  Yeah, I ended up regretting my purchase anyway, because I like my old one better.

• 48:00Speaker 04

  But that, that's just one example, right? Now there, there's other things that, that are just, you know, from December to now is, is all the expenditures, expenditures, all the stuff, right? It sucks. I got it.

• 48:09Caleb Hammer?

  Uh, we're talking about now, we're talking about the past. Let's talk about the future. How long does this card take to pay off if we only do our minimum payments without doing purchases, which we're incapable of currently? You do the minimums, but you purchase three times the minimum monthly. But let's say we stop purchasing and we only do the minimum monthly. How long does this take to pay off?

• 48:26Speaker 03

  Maybe a decade?

• 48:27Speaker 04

  Years.

• 48:28Caleb Hammer?

  A decade, years?

• 48:29Speaker 04

  I don't know. Five years, four years, five, six years, six years, honestly.

• 48:32Caleb Hammer?

  Okay. Uh, we're just going to do some quick math, just for the sake of it. Uh, you will be 70 years old.

• 48:41Speaker 03

  He's kind of already physically 70 years old.

• 48:44Caleb Hammer?

  Well, he'll be fully 70.

• 48:46Speaker 03

  Right, okay.

• 48:47Caleb Hammer?

  It takes 32 years.

• 48:48Speaker 03

  Wow.

• 48:49Speaker 04

  Oh, my God.

• 48:49Caleb Hammer?

  So, Last Christmas takes 32 years to pay off.

• 48:52Speaker 03

  Okay, that's a good perspective, actually. Could you hear that?

• 48:55Speaker 04

  I didn't know that. That's not good.

• 48:57Caleb Hammer?

  The minimum monthly on this is $525.39. Let's go through the purchases on this.

• 49:02Speaker 04

  Oh.

• 49:03Caleb Hammer?

  The interest this year, by the way, is already $1,000 on this. You've lost $1,000 just on one card.

• 49:10Speaker 03

  Yeah.

• 49:10Caleb Hammer?

  Let's keep tally of the interest as we go throughout.

• 49:13Speaker 03

  Oh, that sounds fun.

• 49:14Caleb Hammer?

  963.17 on this one. Okay. It's all bullsh** except for two things, which I think was like, oh, yeah, two university things. You got university docs, college transcripts, and gas, and then dentists. Other than that, it's all bullsh**. Top down, you see this? It's all bullsh**. MJ La Cantoria Bath and Body Works, TheChildren'sPlace.com, Crunchyroll, Apple Bill, Glamour Eyebrows, You Break It, Bandera, Texas Nail, Double Nails, okay, we're double interrupting. Oh, no, the first one was Lashes, wasn't it? I don't know.

• 49:56Caleb Hammer?

  MVYBA, Children'sPlace.com, again, $211.

• 50:00Speaker 03

  Clothes for the kids.

• 50:02Caleb Hammer?

  Okay, we already been through the conversation.

• 50:04Speaker 03

  Yeah.

• 50:04Caleb Hammer?

  Come on.

• 50:05Speaker 04

  Now, the MVYB, that one, whatever, that's all sons' baseball, so.

• 50:10Speaker 03

  It's the concession stand.

• 50:11Caleb Hammer?

  And we'll put that into the budget, because I truly believe in that kind of stuff. Flix Brewhouse, that's a movie theater, more Flix Brewhouse.

• 50:18Speaker 04

  Yep.

• 50:18Caleb Hammer?

  Apple Bill, Apple Bill, Apple Bill, Apple Bill. Clay Casa, Children'sPlace.com, because we have to get a new pair of clothes once a week at a minimum, maybe five times a week, who knows? Apple Bill, Apple Bill, Apple Bill, Apple Bill. Botox and Beyond!

• 50:32Speaker 03

  I tried Botox for the first time.

• 50:34Caleb Hammer?

  And?

• 50:34Speaker 03

  I think it's nice, yeah.

• 50:36Speaker 04

  I didn't know about it.

• 50:37Caleb Hammer?

  If you can afford it.

• 50:37Speaker 04

  We did.

• 50:38Caleb Hammer?

  You didn't even know?

• 50:39Speaker 04

  No.

• 50:39Speaker 03

  Well, I told him after.

• 50:41Speaker 04

  I was away from my phone at the time, so she didn't have the ability to call me about it. All right, but afterwards, when I got home with it, I was able to look at the stuff. That's when she told me.

• 50:50Speaker 03

  Yeah.

• 50:51Caleb Hammer?

  You know what's crazy?

• 50:52Speaker 04

  And that was a lot of money. That was a lot of money.

• 50:54Caleb Hammer?

  Dude's seven years older than you, but... He looks like 31 and he's never gotten botox. Holy crap.

• 51:01Speaker 03

  He's never heard that in his life, but that's very nice.

• 51:04Caleb Hammer?

  It might be because he's aged into it. Well, maybe he looked old. Maybe he's looked 31 forever, but by the time he dropped 31, you know, other than the little grays, you know, dude has smooth skin. Well, thank you very much. That's, that's wonderful. I'm gonna write that one down.

• 51:18Speaker 03

  You should.

• 51:19Caleb Hammer?

  Apple bill, apple bill. What are these apple bills? What are they? All right. Can we pull up our phones? Pull up our phones. What's it? What's? On here we have Facetune. Why? And iCloud plus, iCloud plus is financial storage. He had some kid things and retake AI face selfie. Oh, come on. You're turning into a Facebook mom where you just have overly filtered Facebook pictures. Come on, don't do that. Yes, I don't like those. Yeah, nobody likes those. You're the only one that likes those.

• 51:46Speaker 03

  Okay.

• 51:46Caleb Hammer?

  She did it to me. Okay, don't, don't pay for it. Cause no one likes. She pays 10 bucks a month for it. What?

• 51:54Speaker 03

  We haven't even gone through all of your YouTube and Patreon.

• 51:56Caleb Hammer?

  I just didn't know that was 10 bucks.

• 51:58Speaker 03

  Okay, well, I didn't really realize it was crappy. Okay, thank you very much. Oh, sorry.

• 52:04Caleb Hammer?

  Fake names.

• 52:05Speaker 03

  Sorry.

• 52:06Caleb Hammer?

  Well, the spending on there was a shocker, crazy and a lot to go through. Second Avenue Federal, does this bring us to you? Uh, $20,000 one. Buddy, it is not much better. At least it's not maxed out. It's a couple thousand from that, but it is borderline the same. And again, he only made the minimum payment, but then $936 of spending with 238,063 cents of interest accruing. Why are we purchasing on a card that is accruing interest that we cannot fully pay off? That we can only make the minimum payment to. Cause we did not have the money in our debit. Well, we're financially stable. Am I right, guys?

• 52:44Caleb Hammer?

  When I turn this page, how much of it is going to be both versus necessities? Uh, I'd say half. Let's see. So what is going on with this card? It's only been stacking up, stacking up, stacking up.

• 52:57Speaker 04

  Nothing, this is...

• 52:59Caleb Hammer?

  This also takes 31 years to pay off without purchasing a single thing on it throughout that 31 years.

• 53:04Speaker 04

  Well...

• 53:05Caleb Hammer?

  Okay, what's your insights into his card? Into his spending, into here? Do you ever see what's happening on here?

• 53:14Speaker 03

  Uh, we don't see each other's credit card purchases. We only...

• 53:17Caleb Hammer?

  That's where you guys purchase all your [BLEEP].

• 53:19Speaker 03

  Yeah.

• 53:20Speaker 04

  Yes. Yes, I will admit that. In the past, yes, I have definitely used my credit card to purchase things such as my collection of hobbies, um, back in the day because we do have, we have fun money. I'll start off with this. We have fun money that we set aside for ourselves that we can do whatever we want with the money.

• 53:35Caleb Hammer?

  I'm okay with that when we're out of debt and have a fully funded emergency fund. How much are we setting aside for fun money?

• 53:40Speaker 04

  $100 a paycheck. Alright.

• 53:41Caleb Hammer?

  What? You guys are spending way more than that. What are we talking about?

• 53:44Speaker 04

  Well, it's just, it's just...

• 53:44Caleb Hammer?

  For paycheck? 200, 400 bucks a month total? For the household? You guys are spending, I'm misleading his bullshit, we calculated about 7,000 to 8,000 dollars, right? Or no, it's something, it was something like that.

• 53:55Speaker 04

  Well, you know, the, the goal was to...

• 53:56Caleb Hammer?

  So you added a zero times two onto it?

• 53:59Speaker 04

  Well, we had our fun money, right? And now something that we're able to use, right? So, I'll tell you the way I worked back...

• 54:04Caleb Hammer?

  Okay.

• 54:05Speaker 04

  You know, about a year or two years ago.

• 54:06Caleb Hammer?

  Sure.

• 54:07Speaker 04

  Was I would spend all my money on whatever it is I'm collecting, right? However, you know, like memorabilia that I want, couple of hundreds, thousand dollars, right? Um, and then I'd go, well, if I'm missing 100, 200, I would use the credit card probably, right? Uh, or the Kickstarter's that I would back, you know, so that way that I get my, whatever I'm backing, right? Down the road.

• 54:24Caleb Hammer?

  What are you...

• 54:25Speaker 03

  How does it know a Kickstarter is?

• 54:27Speaker 04

  I'm sorry, I'm a...

• 54:28Caleb Hammer?

  I know Kickstarter is, but what are...

• 54:29Speaker 04

  I'm a board game player. We, we play board games. We're, you know, we're nerds.

• 54:32Caleb Hammer?

  And that's Kickstarter?

• 54:32Speaker 04

  There's a lot of the ones that were coming. They were coming on, they were coming on Kickstarter, but you know, they cost some money, so...

• 54:37Caleb Hammer?

  How often are we doing this?

• 54:38Speaker 04

  It wasn't too often, but it was, it was a lot that was backed up and, and came out at one time. So, there was things like that where I would purchase on my credit card, okay? Um, I, you know, and that's all stopped since then, you know, but now it's more just what are we gonna use on? Now, her, her, her credit card or my credit card? We don't, we don't have a, we see, we know what we're buying because hey, I need you to buy groceries and put it on the green card. Like that's the stuff we know. Like, oh, I put the groceries on the green card.

• 55:04Caleb Hammer?

  And the green card?

• 55:06Speaker 04

  Sorry, our credit card, yes. We said, we said we're gonna buy a red and a green card.

• 55:10Caleb Hammer?

  Oh.

• 55:11Speaker 04

  But.

• 55:11Caleb Hammer?

  That's when we know we're [BLEEP] come on.

• 55:13Speaker 04

  Well, that's, that's the problem is hey, we need to go groceries or we need gas or we need something, you know, go put it on the green card.

• 55:18Caleb Hammer?

  Card or sorted, just like ring of cards.

• 55:20Speaker 04

  Yeah, well, that's, that's what it was. But as far as the individual, each item, we're not tracking it. We didn't have a way to, well, we didn't really care to see what it was. We didn't know what was putting on each other's things, you know, unless something just came out and that's what it was.

• 55:36Caleb Hammer?

  All right.

• 55:39Caleb Hammer?

  Obviously, just resources wise, you guys should use the Fizz card. It's usually geared towards college students, so that actually kind of works for you. But it only lets you spend what's in your checking account. So it works as a debit card. It's, it's called the Fizz card, but it only lets you spend what's in your checking account. So you can't overspend like this. It all works like a debit card, but it still builds credit and you get rewards like a credit card.

• 55:58Speaker 04

  Well, I've never heard.

• 55:59Caleb Hammer?

  Nah, we'll get you connected with it if you guys want to use it. I'll also give you three free therapy sessions with Sondra Minus. What the audience gets, it's what I get. If you guys want to [BLEEP] talk to a therapist through this, I highly recommend it. And if you want to do anything, this is where I hand out free stuff. Woo! Uh, if you ever want to do anything, that's not all manual labor in retirement. I'll get you a course career certification if you want to start looking at like IT or anything like that. So whatever you want to do, whatever you guys need, we're happy to connect you.

• 56:27Speaker 04

  All right.

• 56:28Caleb Hammer?

  Well, but before then, let's look at the spending. You said about half? No, about 75%. Uh, Taco Bell, Panda Express, Krispy Kreme, Auntie Anne's. Okay, it's all, it's also just horrible for you. At least you look like, you know, I mean, you, you stay fit for the military, but my god.

• 56:46Speaker 00

  At Edward Jones, we believe rich is more than caring about the latest and greatest. It's also taking care of what gives your life meaning. That's why your dedicated financial advisor meets you where you are with personalized financial strategies that help protect what matters so you can preserve your progress while creating a path forward. The key to being rich is knowing what counts. Let's find your rich together. Edward Jones. Member SIPC.

• 57:15Caleb Hammer?

  Goodness, it's, it's all just bad. Entertainment hub, Chipotle, McDonald's, Little Caesars, NBYA, ebay.com.

• 57:23Caleb Hammer?

  Fling.com?

• 57:29Speaker 03

  Fling?

• 57:30Speaker 04

  Fling.

• 57:31Caleb Hammer?

  That sounds like a

• 57:33Speaker 04

  No. I don't know what this is.

• 57:36Speaker 03

  I don't know.

• 57:39Caleb Hammer?

  Hey guys, always ask me, Caleb, what do you invest in? And honestly, I keep it pretty boring. Take a look at this, take a look at this. This is my investments right here. And this is why you gotta follow me on Blossom. If you want to see just that. A couple of weeks back, I stumbled upon this social investing app called Blossom and thought, all right, let's give it a try. And it turns out it's actually really cool. And to be clear, they're not a brokerage. Blossom is a completely free social media platform. They're not your typical investing app. It's social, meaning you can follow exactly what I'm investing in. And you can check out my portfolio in real time and even discuss strategies with me and other investors. There's no guessing games, just clear transparency.

• 58:20Caleb Hammer?

  So if you're curious about how I'm investing, or just want to get smarter with your money, download Blossom right now. And you can follow me at Caleb Hammer. I'll be sharing my exact portfolio breakdown, investing tips, and even responding to your questions. It's totally free, super simple, and way more fun than just guessing stocks alone. So hit that link below, join me on Blossom, and let's grow our money together. Seriously, right now, you can actually see what my portfolio looks like today.

• 58:46Speaker 04

  It's not.

• 58:47Caleb Hammer?

  It's a hundred five dollars.

• 58:49Speaker 04

  Hundred five dollars.

• 58:50Speaker 03

  Oh, FlingCon, I remember. That's a board game convention.

• 58:53Speaker 04

  Board game convention. Thank you.

• 58:55Caleb Hammer?

  Oh, so it's the opposite of getting

• 58:57Speaker 04

  Oh, God. Oh, my God.

• 58:59Speaker 03

  No, I love board games.

• 59:00Speaker 04

  Yes, it was, there's a convention coming up for the board games that we're looking at. Yes, I purchased.

• 59:05Caleb Hammer?

  That made me a little.

• 59:06Speaker 04

  I purchased the tickets now, right? It's coming in July, so I was able to get in. All right.

• 59:12Caleb Hammer?

  Okay.

• 59:13Speaker 04

  Yes, yes.

• 59:15Caleb Hammer?

  And then Schlotzsky's.

• 59:16Speaker 04

  Thank you, babe.

• 59:16Speaker 03

  You're welcome.

• 59:17Speaker 04

  Schlotzsky's, that's a food place.

• 59:19Caleb Hammer?

  Yeah.

• 59:21Caleb Hammer?

  Okay, so you guys go out to eat a lot.

• 59:24Speaker 03

  Yeah.

• 59:24Speaker 04

  We, we, we, we do.

• 59:25Caleb Hammer?

  Why?

• 59:26Speaker 04

  Because we're not always together all the time.

• 59:28Caleb Hammer?

  But.

• 59:29Speaker 04

  So will we take one of the children?

• 59:30Caleb Hammer?

  Get some sandwiches at home.

• 59:32Speaker 04

  No, we don't. We, we also, we're lazy.

• 59:34Caleb Hammer?

  You don't need to be together for that.

• 59:35Speaker 04

  I'm lazy.

• 59:36Caleb Hammer?

  Okay, but we either get to choose lazy or financial security in terms of this case. If you guys want to be lazy, totally chill with it. And we can just like, I'll be like, okay, go on your way. You can live the lazy lifestyle. I'm okay with it. I will even support it. Cause if you, I want to support, well, however you want to live life. It will end in disaster. No funded emergency fund, you know, potential foreclosure notices. It'll be, you can live that. We can choose lazy.

• 1:00:02Speaker 04

  No.

• 1:00:03Caleb Hammer?

  Or we can choose financial security, actually grinding down, bringing some discipline to this.

• 1:00:08Speaker 04

  But I agree, right? With this, the fact of the matter is like, we didn't, we didn't do that stuff, right?

• 1:00:13Caleb Hammer?

  Chicken salad sandwiches. So cheap, so easy.

• 1:00:16Speaker 04

  Now we're at the point where we are doing a lot more eating at home by, by meal planning. She's come up with a great, uh, way.

• 1:00:21Caleb Hammer?

  I hope, but I mean, I have the most recent spending statements. How much do we think we spent on fast food in the last month?

• 1:00:26Speaker 04

  Oh, eight hundred dollars. I'm just giving you a ridiculous amount of money. Ridiculous amount of money, probably.

• 1:00:33Speaker 03

  Yeah, we spend way too much.

• 1:00:34Speaker 04

  A lot more than we should have.

• 1:00:36Caleb Hammer?

  What do you think?

• 1:00:37Speaker 04

  In one month, I would say about four hundred bucks.

• 1:00:40Speaker 03

  Well, cause groceries every week is three to four hundred.

• 1:00:42Speaker 04

  I would say for.

• 1:00:43Speaker 03

  And then we also eat out.

• 1:00:44Caleb Hammer?

  So four hundred dollars going out to eat?

• 1:00:46Speaker 04

  Fast food, four hundred bucks.

• 1:00:47Caleb Hammer?

  What do you think?

• 1:00:48Speaker 03

  Oh, yeah, I'd say about twelve hundred.

• 1:00:50Speaker 04

  What? For food?

• 1:00:52Speaker 03

  Yeah.

• 1:00:52Speaker 04

  No, for eating out, eating out.

• 1:00:54Speaker 03

  Yeah, yeah. I would say that.

• 1:00:55Caleb Hammer?

  Four hundred, twelve hundred?

• 1:00:56Speaker 03

  Yeah.

• 1:00:57Caleb Hammer?

  Where is the difference here? Do you just like not know her spending or she thinks you spend a lot?

• 1:01:03Speaker 04

  Maybe I don't know how much we're eating out. I, I know we're eating out a lot. I just don't know what the price looks like.

• 1:01:08Caleb Hammer?

  How is, how are we so separated? Cause that's actually kind of concerning. It's not that, oh, you don't know the number. My concern here is that we are so far apart on what we think is happening. Then how can we ever budget as a household? So how, how is there so much separation here in terms of what you think is going out to eat spending?

• 1:01:24Speaker 04

  I don't know.

• 1:01:25Speaker 03

  Cause every time we go out to eat, it's between like forty and a hundred dollars. So I'm just thinking, if you're going out multiple times a week, it adds up really quickly. So in one week, I bet we would spend four hundred on going out to eat.

• 1:01:36Caleb Hammer?

  Is that not insane?

• 1:01:38Speaker 04

  Oh, God.

• 1:01:40Speaker 03

  I mean, it's not good.

• 1:01:41Speaker 04

  So she might be, she might be right on that one. I'll give you that. I'm probably way lower.

• 1:01:46Speaker 03

  Wow, what is it?

• 1:01:47Speaker 04

  I think eight hundred.

• 1:01:47Caleb Hammer?

  One thousand five hundred forty-two dollars seventy-four cents.

• 1:01:50Speaker 03

  I win, but at what cost? Yeah.

• 1:01:52Caleb Hammer?

  Uh, at the cost of, uh, being able to make three minimum monthly payments on one of these Navy Federals.

• 1:01:58Speaker 04

  That's a lot.

• 1:02:00Caleb Hammer?

  Yeah. Interest charged on here this year so far, let's add to the tally, nine thousand thirteen dollars and fifty-nine cents.

• 1:02:10Speaker 04

  Well, what was that? That was the interest?

• 1:02:12Caleb Hammer?

  It's the interest that is accrued this year so far in this. So we're at approximately two thousand dollars for just two cards we looked at that you guys have lost this year so far.

• 1:02:20Speaker 04

  Do you, oh, nine hundred? I heard nine thousand. Okay.

• 1:02:23Caleb Hammer?

  Oh, I may have accidentally said that.

• 1:02:24Speaker 04

  Nine hundred dollars.

• 1:02:25Caleb Hammer?

  Nine hundred thirteen.

• 1:02:26Speaker 04

  Okay.

• 1:02:26Caleb Hammer?

  Fifty-nine.

• 1:02:27Speaker 04

  Alright, okay.

• 1:02:28Caleb Hammer?

  Which is insane.

• 1:02:30Speaker 04

  Okay.

• 1:02:30Caleb Hammer?

  I mean, I'm being told, you guys also told Lindsay beforehand that, like, the kids are picky eaters, so eating out is easier for them. I mean, it's just like...

• 1:02:40Speaker 04

  It is. It was, we, again, we went lazy. We went lazy.

• 1:02:44Speaker 03

  But I do really think that this is a change.

• 1:02:46Caleb Hammer?

  That's just gonna fully enable that forever, though.

• 1:02:47Speaker 03

  No, but I think this is a change we can make to buy groceries and cook more at home.

• 1:02:52Caleb Hammer?

  It certainly could be, but we spent fifteen hundred dollars last month, even though you said we're already making changes, so I don't know.

• 1:02:57Speaker 03

  The change has only started within the last couple of weeks.

• 1:02:59Caleb Hammer?

  That's what always happens when people come on the show. They're like, "I'm going on the finance show, so I'm gonna look good for a second." And then they maintain it for like a month and then, so it's like, if you guys actually stick with it, the median guest on the show pays off ten thousand in ten months. And you guys have a better income situation than most people in this country, most people on the show, so you guys can fucking rock this if we actually discipline. Um, obviously, we'll get you the cookbook. Is this, well, you don't even need the budget-friendly meals. That's just for people that like, make the median. You could double that. Your grocery spending allotment can be great. Like, I don't know.

• 1:03:34Speaker 03

  I would like the cookbook.

• 1:03:35Caleb Hammer?

  Well, I will get you a cookbook.

• 1:03:36Speaker 03

  Thank you.

• 1:03:38Caleb Hammer?

  We're having some weird printing issues with China right now, cause, um, you know.

• 1:03:45Caleb Hammer?

  Everything going on, but yeah, we'll get it to you.

• 1:03:49Caleb Hammer?

  Okay. And other than Navy Federal, what the? What even? Oh, this looks like maybe a car. It's a $38,309.40.

• 1:03:58Speaker 03

  Oh, that's a home equity loan.

• 1:04:01Caleb Hammer?

  At 7.45%. What is the? That's barely even keeping up with the market.

• 1:04:07Speaker 03

  Debt consolidation we took out in 2023.

• 1:04:09Speaker 04

  We did. We, we, we took that out, paid off all the credit card debts and stuff we had. Obviously not the, the vehicles and the house, but we used that to pay it off. And then we just did. We didn't change our life at that moment when we paid it all off. It was nice. It was great, but we did not change any, any of our lifestyle at that moment for, for moving forward with it. So here we are now, even back up to what we were when we had that consolidation.

• 1:04:38Caleb Hammer?

  And the house, do we even know what it's worth today?

• 1:04:41Speaker 03

  317, 100,000.

• 1:04:43Caleb Hammer?

  We do. How are we so on the dollar?

• 1:04:46Speaker 03

  Um, well, when we pulled the statements, it gave us the home value at the bottom.

• 1:04:51Caleb Hammer?

  When was that?

• 1:04:51Speaker 03

  That was about a couple of weeks ago. So it's got about 100, 100,000 in home equity, but with the loan, I only consider it like 66 or 60.

• 1:05:01Caleb Hammer?

  And this means all the debt we're looking at today is only a year and a half old.

• 1:05:04Speaker 03

  Yeah, sort of.

• 1:05:05Speaker 04

  Yeah.

• 1:05:05Caleb Hammer?

  That's insane. You know, we've talked about $44,000 of credit cards so far.

• 1:05:11Speaker 04

  Yeah.

• 1:05:11Caleb Hammer?

  And we're not even halfway through.

• 1:05:13Speaker 04

  Yeah.

• 1:05:14Caleb Hammer?

  I don't even know if we're a third of the way through. I don't think we are. And they're saying that your cards are completely paid off after you took out this? Guys, that's insane. That's insane. That's not a, that, okay. Even more than before, I'm actually convinced that this is not sustainable because I don't think this is sustainable for just another nine months. I think we're there. We're basically at the peak. This home equity was just, that's crazy. Okay. So this was, we have a balance of $38,309.40. Okay. And it is a minimum monthly payment of 504.56.

• 1:05:59Caleb Hammer?

  Interest this year so far, $967.70. We're at about 3,000 hours gone from you guys.

• 1:06:08Speaker 03

  Yeah.

• 1:06:09Caleb Hammer?

  These numbers are going to require that I take a ton.

• 1:06:12Speaker 03

  Okay, it's good for your health.

• 1:06:14Caleb Hammer?

  Is it? I don't know. Stress? Stress of your debt?

• 1:06:21Speaker 03

  Sorry.

• 1:06:23Caleb Hammer?

  You guys didn't even have car payments at the time of taking out that loan?

• 1:06:26Speaker 04

  We did.

• 1:06:27Caleb Hammer?

  You did?

• 1:06:28Speaker 04

  We did. We didn't put any of the money towards the cards because it went to all the other stuff. So.

• 1:06:33Caleb Hammer?

  But did you have car payments?

• 1:06:34Speaker 03

  Yes.

• 1:06:34Speaker 04

  We did.

• 1:06:35Caleb Hammer?

  Okay.

• 1:06:37Speaker 03

  We each have a car.

• 1:06:38Speaker 04

  Was we asked?

• 1:06:39Speaker 03

  I think so, yeah.

• 1:06:39Speaker 04

  Yeah, we had card payments at that time.

• 1:06:42Caleb Hammer?

  A Chase Amazon card. Oh, for fuck's sake, here we go.

• 1:06:45Speaker 04

  No, that was me. So we live right next to a distribution center.

• 1:06:49Speaker 03

  You can like practically see it from our backyard.

• 1:06:51Speaker 04

  We can see it and honestly, when we need something, we order it, right?

• 1:06:56Speaker 03

  It comes right away.

• 1:06:57Caleb Hammer?

  What's right away?

• 1:06:58Speaker 03

  Like within, like less than a day.

• 1:07:00Speaker 04

  I can order something right now if I really want, and if it's something that's a popular thing or very quick to do, I can have it by tonight.

• 1:07:05Caleb Hammer?

  Yeah, us too normally. That's just Amazon in a big city.

• 1:07:09Speaker 04

  Away and going to, driving away and going to a Walmart.

• 1:07:12Caleb Hammer?

  Same day delivery is how Amazon works for most things for major cities.

• 1:07:16Speaker 04

  Yeah, well, we.

• 1:07:17Caleb Hammer?

  I don't think it's because you live next to a distribution, it's because you have a distribution center in the city you live in.

• 1:07:21Speaker 04

  We, we, we use it a lot. We use that ability to buy a lot of things from Amazon.

• 1:07:25Caleb Hammer?

  Which gives us the, honestly, again, click, click, click, click, click. The amount of resistance that there is, the friction between purchasing something on Amazon is so low that it's probably getting you guys, especially using the logic that you use of the distribution center, even though that's just like what we all do in major cities. It's like, that's just making you spend more than you even would, if we're being honest. 408, oh, fuck, only the minimum payment made, of course. New Balance, $3,292.27, $63.22 of interest accruing,

• 1:08:02Caleb Hammer?

  $406.87 of purchases, and a $96 minimum payment. Now, it's gone up because the balance went up. Do you guys share the same Amazon Prime? Yes. Okay, someone pull it up for me, please, because it's Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon, Amazon. 200. We've had a late fee this year. Oh. Oh, for fuck's sake, neither of us even know this. For which one? Amazon card?

• 1:08:33Speaker 04

  This was before the automated payments.

• 1:08:35Caleb Hammer?

  Why weren't automatic payments happening?

• 1:08:38Speaker 04

  We did not set it up when we first got the card or during the setting up the card. We were just going through our Excel spreadsheet, going to there, logging into the account, paying it off. There was a point when, yeah, I do remember that.

• 1:08:48Caleb Hammer?

  Why?

• 1:08:49Speaker 04

  We just didn't set it up. All right. After that situation, we paid it. We paid the late fee. We did pay the late fee and then we got back on to the track of paying the minimum payments. And then we did set up the automatic payment for it. So that is now on an automatic payment, but we just didn't do it back then.

• 1:09:03Caleb Hammer?

  Oh, fuck's sake, okay.

• 1:09:06Caleb Hammer?

  Uh, we have, I don't even know what the fuck this is.

• 1:09:10Speaker 04

  I know, stakes, stakes for our out.

• 1:09:12Caleb Hammer?

  100-piece green artificial, yeah, stakes.

• 1:09:16Speaker 04

  We have dogs that are digging and stuff like that. So we bought some fake turf to hide the mud areas. So.

• 1:09:23Caleb Hammer?

  Uh, zone protects no hole digging. I see valve box thing, more. Cover things, magnet door, anchor, anchor, gym door, anchor.

• 1:09:35Speaker 04

  Stuff for the home.

• 1:09:36Caleb Hammer?

  Anti-fog cleaning kit, plastic drop cloth. I feel like, guys, I recognize this kind of Amazon and I think we've all been there here and there. This is the go buy anything bull Amazon. This is the, I need this, I need this, I need this. This is the, all within a few days. Fucking easy car seat buckle. It's like, we need everything. The rope drops, fit, simply resistant loop, Sharps container, gymnastics bar. There that is, sticky card plug, sticky card plug.

• 1:10:11Caleb Hammer?

  Refill, I don't know.

• 1:10:13Speaker 04

  Oh, that's

• 1:10:13Caleb Hammer?

  Oh, it's the fly thing.

• 1:10:14Speaker 04

  Fly, yeah, fly traps.

• 1:10:15Caleb Hammer?

  Salt and pepper, more artificial turf stuff. So we're really booking that up. Penguins for kids, penguins in Antarctica. My son had a school stuffed project.

• 1:10:26Speaker 04

  That was a school project.

• 1:10:27Caleb Hammer?

  Penguins National Geographic. Go to the library. It's a good experience for kids, isn't it? Yeah. Penguins, the ultimate guide. So we're just buying all these penguins books permanently.

• 1:10:35Speaker 04

  But now we know about penguins now. Lots, lots of information about penguins and our son knows about it.

• 1:10:39Caleb Hammer?

  Hundred eighty pocket card binders. Explore my world penguins. Pebble in two pack dance ribbons, novelty place, ten piece dance. Uh, gymnastic thing, more, there's more turf stuff and gymnastics shirt and twelve piece. Do we understand our spending here, guys? Yes. Like even if, yes, I can see a lot of this being justified. It's just look at the number that is adding up. And if we're going through it in, in your gut, how many of these things are like, we're like, okay, if we didn't purchase that, it's not the end of the world.

• 1:11:12Speaker 04

  There's gonna be probably a handful, yes. I will agree with, yes.

• 1:11:15Caleb Hammer?

  Shiny metallic, you know, things.

• 1:11:17Speaker 04

  Lot of it, yes, I can, we can, I will.

• 1:11:19Caleb Hammer?

  Card binder.

• 1:11:21Speaker 04

  Stand up for a lot of the stuff that we had bought because it's what we needed and stuff like that.

• 1:11:24Caleb Hammer?

  Yes, I'm okay with that.

• 1:11:25Speaker 04

  But there's some stuff that probably, yes, we probably didn't need again.

• 1:11:27Caleb Hammer?

  I can logically.

• 1:11:28Speaker 04

  It was a good one.

• 1:11:29Caleb Hammer?

  I can logically see a lot of purchases here. Yeah. But I know for a fact as we go through there, whether or not if we like look back and we're like, fuck, okay, I could have lived without it. There was a lot of it because all I know is we've lost two hundred twenty nine dollars and eleven cents in interest this year so far in this card. Had a late payment on this card, the balance is only going up, the minimum monthly payment's only going up. We are losing more and more and more and our minimum monthly payments are getting to a place where if you want to continue your lifestyle with these minimum payments, mathematically, it's impossible.

• 1:11:58Speaker 04

  Again, we both have the access to that. We both can do exactly what, buy what we want at, at the moment that I want to buy it.

• 1:12:05Caleb Hammer?

  It's at a twenty three percent interest rate, the things that you're buying. So that's, you're paying an extra twenty three, twenty three percent fee on everything you're getting. Honestly, if you want to look at it that way.

• 1:12:17Speaker 04

  I didn't, makes sense now, but I didn't think about it that way.

• 1:12:20Caleb Hammer?

  This is more Amazon purchases and this is, it's brutal.

• 1:12:27Caleb Hammer?

  And you're probably, you're getting a 5% cash back, but you're paying 23%.

• 1:12:30Speaker 03

  Right. It's not worth it.

• 1:12:32Caleb Hammer?

  Yeah, you're losing 17. This is priorities at that point, you know?

• 1:12:35Speaker 03

  Mm-hmm.

• 1:12:36Speaker 04

  All priorities are all messed up. Yeah.

• 1:12:40Speaker 03

  Well, I don't, I don't agree with that, but...

• 1:12:44Caleb Hammer?

  Go on.

• 1:12:46Speaker 03

  I don't think my priorities are fucked, personally.

• 1:12:51Speaker 03

  What do you mean financially or...?

• 1:12:52Speaker 04

  Financially, one of my, I, I am not talking about the way

• 1:12:57Speaker 04

  personally or, or family-wise together. I'm literally just talking about financially. Financially, we are financially, we have not been doing it. We have not been

• 1:13:07Speaker 03

  No, I don't think financially we're

• 1:13:09Speaker 04

  That's all, that's all we're talking about. That's all we're

• 1:13:11Speaker 03

  It's so fixable though. Literally, you just have to make lifestyle changes. I know.

• 1:13:15Speaker 04

  But we didn't. We didn't make the fixes. That's, we didn't make the changes.

• 1:13:18Speaker 03

  I feel like financially

• 1:13:20Speaker 04

  We can now.

• 1:13:21Speaker 03

  Is having no money coming in and all the money coming out.

• 1:13:24Caleb Hammer?

  All the money's going out plus 24%.

• 1:13:26Speaker 03

  Okay, well, that's true.

• 1:13:27Caleb Hammer?

  Financially fucked is, okay. Listen, again, higher income people can get to a worse place because on paper you can qualify for more debt, getting yourself in a worse hole.

• 1:13:37Speaker 04

  Which I think we have done. Cause that's where we got the Amazon card. That's where we got the other credit cards, you know, the, the, the rooms to go, which we bought furniture with, you know?

• 1:13:47Caleb Hammer?

  If you say it's so easy to get out of debt, why haven't we? Why last time we got out of debt, we had to take equity from our home? If it's so easy, then why are we here?

• 1:13:56Speaker 03

  Okay. I didn't say it was easy. I don't think that

• 1:13:59Caleb Hammer?

  Did she?

• 1:13:59Speaker 03

  I said it was fixable.

• 1:14:01Speaker 04

  She said fixable.

• 1:14:02Caleb Hammer?

  I, okay. If it's fixable, then why haven't you?

• 1:14:06Speaker 04

  We do

• 1:14:06Caleb Hammer?

  Get that nail and hammer.

• 1:14:07Speaker 04

  We didn't change the lifestyle.

• 1:14:10Speaker 03

  Yeah, I think it's a lifestyle issue.

• 1:14:11Caleb Hammer?

  It certainly is, but if it's fixable, why aren't we fixing?

• 1:14:14Speaker 03

  I think we just needed to both wanna fix it and I think we're finally at the place where we both wanna fix. I don't think you actually wanna experience things because you would experience it if you wanted to experience things. I don't know what you're talking about.

• 1:14:24Caleb Hammer?

  I certainly hope so. This

• 1:14:26Speaker 04

  Maybe

• 1:14:27Caleb Hammer?

  Card is at Go on?

• 1:14:29Speaker 04

  Nope, sorry.

• 1:14:30Caleb Hammer?

  The Synchrony card is at $3,436.70 with a minimum payment of $185.

• 1:14:38Caleb Hammer?

  What's going on with this garden?

• 1:14:39Speaker 04

  Which one is that one?

• 1:14:40Speaker 03

  This furniture.

• 1:14:41Speaker 04

  Furniture, furniture. So I had a surgery last year. Right, situation on my shoulder. Uh, so one of the things was recommended was getting a recliner.

• 1:14:51Speaker 03

  Cause his arm was in a sling for six months.

• 1:14:53Speaker 04

  Find a recliner you can sleep in, right? We don't have recliners. We have couch and you know, the bed and stuff like that. So I went ahead and bought that. We also renovated our daughter's bedroom. Uh, we've done a lot of renovations to her house. Over the years, um, but.

• 1:15:07Caleb Hammer?

  If you cash flow, I'm okay with it.

• 1:15:09Speaker 04

  Okay, but with.

• 1:15:10Caleb Hammer?

  Or debt flowing.

• 1:15:10Speaker 04

  We didn't, um, and with rooms to go specifically, um, we.

• 1:15:15Speaker 03

  Paid for her big girl furniture.

• 1:15:17Speaker 04

  Her, yeah, her entire bedroom set of everything that she needed for the big girl stuff. So that was another conclusion. Uh, the recliner and, um.

• 1:15:24Speaker 03

  That's it.

• 1:15:25Speaker 04

  That was it, yeah. Um, now I will say, looking back at it now, the recliner was a lot of money. Yes. The recliner is a great chair. I ain't gonna lie. The chair is phenomenal. It's massaging. It goes back. It's electronically. It's amazing. Could we have gone with a smaller one and a cheaper one? Maybe, but that, I'm gonna tell you right now, my mindset was set on that, that, that recliner. And she did, I do think she did show me another recliner that was cheaper, but I didn't like it.

• 1:15:49Caleb Hammer?

  The thing is you're in an income situation where you should just be able to get that. But you're living a life around it that makes those purchases detrimental.

• 1:15:58Speaker 04

  Well, that's what we did.

• 1:16:00Speaker 03

  Yeah, I think the interest rate is the highest on this one than all the others.

• 1:16:03Caleb Hammer?

  No, the interest rate is zero and see, we don't even know.

• 1:16:06Speaker 03

  I thought it was 35%.

• 1:16:07Caleb Hammer?

  No, it's zero.

• 1:16:09Speaker 03

  On the furniture?

• 1:16:10Caleb Hammer?

  Yes. Dude, the thing is, it is right now zero. For the vast majority, it's zero percent until paid off.

• 1:16:17Speaker 04

  If we don't pay it off. If we don't pay it off, then that's what it is. That's what, that's what we're talking about.

• 1:16:22Caleb Hammer?

  Well, for, for $629, whatever that purchase was, that expires in about a year. The interest free period. The $2,713 and $92 that, those ones never expire. Those ones are until paid off, which as long as you make your minimum monthly payment.

• 1:16:37Speaker 04

  That's right, the $620.

• 1:16:39Caleb Hammer?

  It'll probably bump up to like 30% sure that $629.

• 1:16:43Speaker 04

  I guess we gotta pay that off.

• 1:16:44Speaker 03

  Yeah.

• 1:16:44Caleb Hammer?

  But your minimum payment is just another addition to the stack. It's $185.

• 1:16:49Speaker 04

  Okay.

• 1:16:50Caleb Hammer?

  And we have in the note, I mean, I don't know if you were there for this part of the call, but she specifically said to Lindsay that you milked your recovery.

• 1:16:59Speaker 04

  Oh, I did.

• 1:16:59Speaker 03

  He did, and he'll admit it.

• 1:17:01Speaker 04

  I will admit it. I, I, I milked it. I took the surgery, everything I could with it, right? I made sure I relaxed. I made sure I was, you know.

• 1:17:10Caleb Hammer?

  How are you doing health-wise?

• 1:17:11Speaker 04

  Taking it easy. I'm, I'm doing as good as I can for somebody who's about to retire.

• 1:17:16Speaker 00

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• 1:17:45Speaker 03

  No, he is literally break. Okay, I will say he milked that, but in general, his whole body is breaking. Do not let this man fool you. Constant back pain, constant shoulder pain. He actually, I think, needs another shoulder surgery on the other side.

• 1:17:59Speaker 04

  Again, they covered by the middle. Yeah, that's nice. Great. It's wonderful. But again, my body, my body is breaking.

• 1:18:04Speaker 03

  I mean, he's been wearing the duty belt for over 20 years and standing watches.

• 1:18:09Caleb Hammer?

  Why do you want to go, go, go so long past the three years?

• 1:18:13Speaker 04

  Three years?

• 1:18:13Caleb Hammer?

  Because you've served for a decade, right?

• 1:18:16Speaker 04

  Okay, yeah. I'm at 20 years now. So why did I want to go so long?

• 1:18:19Caleb Hammer?

  Yes, 30. Yeah, 20 years. Why, why have we decided it goes along, especially with, you know, starting the feeling of needing surgery and all this stuff? All right, let's be honest. Making videos sounds really fun until you actually try to make one. Suddenly, you're wrestling with timelines, video editing platforms, searching for royalty-free music that doesn't suck, and trying to sound like Morgan Freeman on your voiceover. And that's why I'm hyped about today's video sponsor, InVideo AI. It puts you in the director's chair without needing a whole production crew or a film degree. InVideo AI is the only tool out there that lets you generate full-length videos with generative AI. You just type in what you want to make a video about, and it does the rest. Like, literally, scripts, scenes, edits, all done in minutes. I tried it out,

• 1:19:00Caleb Hammer?

  and it was crazy. I asked it to make a video about what would happen to humanity if the dinosaurs returned, and minutes later, I'm watching what looks like a movie trailer, and I didn't lift a single camera or rent a GoPro.

• 1:19:13Speaker 06

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• 1:19:24Speaker 06

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• 1:19:27Caleb Hammer?

  It's wild. And here's the kicker. I wanted it a little more intense, so I just typed, "Make the video more intense and add my voice." And boom, it was done. Making video edits has never been easier. With 10 million users across 150 countries, this thing is already exploding. And the best part, you can try it for free and save yourself hundreds in production costs. Check the link in the description or scan the QR code on screen to get started today. Let's get back to the episode, unless you're alerting the future of humanity with AI like I just did.

• 1:19:55Speaker 04

  It's like you're pushing yourself physically. So, eh, joined the Navy just to get out of the house, right? Um, my dad was, was an army guy, right? So, he did 10. I wanted to do more than him. Uh, at about that 10 year mark is, you know, when, when we got together. Um, and at that time, I wanted to get out, probably my entire career, probably every single reenlistment, I wanted to get out.

• 1:20:15Caleb Hammer?

  Yeah.

• 1:20:15Speaker 04

  But I just stayed because of whatever. Hey, I need, I'm gonna stay for a little bit longer. I can do it for a little longer. And then we got together. She was in the military. I was in the military. We stayed together. We got to that point where now, you know, okay, 14 years now. Okay, great. What are we gonna do? We're gonna stay in. She got out. And I'm like, okay, well, I guess I made it for the wrong. Well, at that point in time, I was in until I retire. All right. Now I'm done. I'm done. I'm, I'm, I am done.

• 1:20:34Caleb Hammer?

  How often are you away from the house, like, deployed?

• 1:20:36Speaker 04

  Um, eh, eh, eh, not away from the house anymore. Uh, I did go away for a whole year.

• 1:20:42Speaker 06

  Year and a half, actually.

• 1:20:43Speaker 04

  A year and a half to Poland. Um, they, uh, I got stationed in Poland for the year and a half, and that was about 21, 2021, 2022. Um, so I was gone there. So when I came back in 2022, the end of 2022, that's when, you know, all the stuff, you know, we started buying the, the cars and the stuff like that. Uh, renovations of the house, things like that. So, yeah. So, uh, that was the last time I was gone, uh, for the longest. Since then, I'm not gonna be gone except for, you know.

• 1:21:09Caleb Hammer?

  Are you gonna do anything afterwards? What do you want to do? You don't have to, of course.

• 1:21:13Speaker 04

  No, I don't have a drive anymore or a desire of what I want to do after the military. What I want to do is support her now because she's been supporting me and moving with me. So for her PA system, PA program, whatever program she gets accepted into, obviously we're gonna have to move to. Or stay here in San Antonio, hopefully. So if we end up moving, then I will find a job in that area for something I want to do.

• 1:21:36Caleb Hammer?

  You have a YouTube channel.

• 1:21:38Speaker 04

  I do have a YouTube channel.

• 1:21:39Caleb Hammer?

  Really?

• 1:21:40Speaker 04

  But it's not, it takes a while.

• 1:21:43Caleb Hammer?

  What do you do? Yeah, it's brutal.

• 1:21:45Speaker 04

  I play board games.

• 1:21:46Caleb Hammer?

  Oh, I love it.

• 1:21:47Speaker 04

  I play board games, which I will tell you, a lot of my money also went into my setup, you know? So I understand the system and how it goes.

• 1:21:53Caleb Hammer?

  That's a bad way to do it.

• 1:21:53Speaker 04

  Well, that's what I did. And it's in my extra bedroom, so you know.

• 1:21:57Caleb Hammer?

  I'm okay with that. It's just the people that throw all the money in upfront. Start with the phone.

• 1:22:02Speaker 04

  I learned the lesson the hard way. I tried my stuff.

• 1:22:05Caleb Hammer?

  Well, at least you had the budget to do it.

• 1:22:06Speaker 04

  Well, at the time, probably, but obviously now, looking back, I didn't. So, yeah, I have the YouTube, that'd be nice to do, but that ain't gonna be a career. That's not gonna be something I can make money in.

• 1:22:15Caleb Hammer?

  I know they're very generic, but I'm a big Risk and Monopoly and Catan man.

• 1:22:21Speaker 04

  We like Catan.

• 1:22:22Caleb Hammer?

  Unfortunately, no one will play Risk with me because everyone hates it. Same with Monopoly, but I love Catan still.

• 1:22:28Speaker 04

  Catan is great.

• 1:22:30Caleb Hammer?

  Okay, I have a Wells Fargo card. What's going on with this? This one looks like this is a 0% as well.

• 1:22:34Speaker 04

  Yes, so that one, our last, was it last year or the?

• 1:22:37Speaker 03

  It was last summer.

• 1:22:38Speaker 04

  Last summer, in the middle of the hot heat, our AC completely broke and went to crap. And that was literally eight months after the.

• 1:22:47Caleb Hammer?

  Why wouldn't you guys have an emergency fund, though? You guys do so well.

• 1:22:50Speaker 04

  Well, we didn't. So here we are, you know, literally eight months after the warranty went away, which we didn't know that there was an extension or anything we could have done, right? So it went away and they're like, oh, yeah, your eight months passed, so you can't do anything about it. So we had to buy a whole new one, right? In the middle of a hot, heat summer, she found, and she did all the work on this one. She found Wells Fargo, who was able to give us a good deal on that as best as possible.

• 1:23:12Speaker 03

  With 0% interest.

• 1:23:14Caleb Hammer?

  Yeah, for 72 months, but you're not making the payments necessary to pay this off in 72 months. The minimum payments are too small for that.

• 1:23:22Speaker 03

  I think it, as long as we continue to pay toward it, we won't ever have an interest rate on it. I think if you, if we missed a payment or something like that.

• 1:23:31Caleb Hammer?

  Yeah, that might, yeah, if you, you'll get a penalty if you miss a payment.

• 1:23:34Speaker 03

  Yeah, it'll be really high interest rate.

• 1:23:36Caleb Hammer?

  And of course, we've missed the payment on the Amazon card. So it's just like historically looking. It makes me a little nervous.

• 1:23:42Speaker 04

  That is one of the ones that's on our radar that is make sure we always pay this one to, you know, first, you know? So that is something of our, of our knowledge.

• 1:23:50Caleb Hammer?

  Minimum payment sixty seven dollars forty two cents, five years to pay off. So we're gonna have a minimum payment for five years. It's not a huge minimum payment, but it's stacking across everything. Of course, that is five years to not have one up in that up, by the way. It can be, not you guys forgetting, because you have it on auto, but accidentally having less than sixty seven dollars in your checking account. Then the payment bounces, then boom.

• 1:24:13Speaker 03

  Right.

• 1:24:13Caleb Hammer?

  And we know we get down to a hundred often. So this is not risk free for five years.

• 1:24:18Speaker 03

  True.

• 1:24:18Caleb Hammer?

  I don't want us to think that this is just boom, set, done.

• 1:24:21Speaker 04

  No, I didn't, I didn't think about that way. That, that's true. Okay. I didn't think about that way. That's, that's a good way to, because I would not have thought about that until it happened. So.

• 1:24:29Caleb Hammer?

  And if that does hit, we're looking at twenty nine percent interest on that. All right. It's brutal. All right. Cherry, what's cherry?

• 1:24:36Speaker 03

  Uh, that's just a medical cost.

• 1:24:40Caleb Hammer?

  Okay. So something that wasn't covered by the military?

• 1:24:43Speaker 03

  Right.

• 1:24:44Caleb Hammer?

  We're looking at three thousand two hundred sixty three dollars, minimum monthly payment, two hundred fifty one dollars.

• 1:24:54Caleb Hammer?

  No interest. Okay. Just add it to the minimum payment pile, right?

• 1:25:00Speaker 04

  Yep.

• 1:25:00Speaker 03

  Yeah.

• 1:25:03Caleb Hammer?

  Cars. Here we are. We have a Ford Escape twenty twenty three at a seven point three nine percentage rate. So the, you know, especially taking into account depreciation, certainly not keeping up that, you know, money in like a marketplace. So you're losing money overall.

• 1:25:17Speaker 03

  Yes.

• 1:25:18Caleb Hammer?

  Okay, so Ford Escape.

• 1:25:22Caleb Hammer?

  We owe $25,056.15 with a minimum monthly payment of $606.68. That's a brutal minimum monthly payment and not a great interest rate. It's not like a, you know, minimum payment until it's paid off type of interest rate. Wish I could see how much went to interest and how much is charged interest this year so far? To add it to the pile, but I don't think I'm going to get that. Okay, so what do you think it's worth?

• 1:25:53Speaker 03

  I think it's worth around 22,000.

• 1:25:56Caleb Hammer?

  I'm seeing actually 27.

• 1:25:57Speaker 03

  Oh, great.

• 1:25:58Caleb Hammer?

  Well, that's nice. A rare case where it's had value a little bit. Have you thrown in, how much did you put down on it?

• 1:26:06Speaker 03

  We did a trade in value. I had a Nissan Rogue 2017.

• 1:26:10Caleb Hammer?

  So that's probably why. That's why it's allowed you to keep it.

• 1:26:13Speaker 04

  Well, we'll point out that I'm going to tell you that at that time when we bought that car, her Rogue at that moment, the entire, yeah, we was paid off, but the entire AC in it during the summer timeframe broke.

• 1:26:23Caleb Hammer?

  That's a relatively okay fix though.

• 1:26:26Speaker 04

  Well, we decided at the moment, okay, we're going to trade it in, right? Cause we've got some value on it and we'll get her a brand new car that we won't have to worry about this come next summer and next summer and next summer. So we went ahead and bought that purchase, right?

• 1:26:37Speaker 03

  And I've never had a new car.

• 1:26:38Speaker 04

  She's never had a new car.

• 1:26:39Speaker 03

  I've always had like beaters or things that I could pay in cash.

• 1:26:43Caleb Hammer?

  But there is a separation. There's a middle ground.

• 1:26:46Speaker 03

  Yeah.

• 1:26:47Caleb Hammer?

  We can get a 15,000 hour used car and it's okay.

• 1:26:50Speaker 04

  Well, no, again, first time she's had a car that wasn't a beater or a used car or something. So we went and we, we splurged.

• 1:26:59Caleb Hammer?

  Obviously, but it's because you guys are really just splurging everything you do in life that we're not fucked. And cars are not a fucking cheap thing to splurge on.

• 1:27:08Speaker 03

  Right.

• 1:27:08Speaker 04

  Well, see that now hindsight.

• 1:27:11Caleb Hammer?

  Yeah, but I still like, I don't care if like we come from, you know, beating up cars. Math is math is math is math. It's not a feeling thing whether or not we get a brand new car. I'd suggest until we fully get out of debt, which for what it's worth a year and a half ago when you got this car, you were kind of out of debt, but this kind of put us back into debt again. So it's like, it's, this is, it's a weird situation.

• 1:27:30Speaker 03

  Yeah.

• 1:27:32Caleb Hammer?

  I don't know. And it just adds an intense minimum monthly payment.

• 1:27:36Speaker 04

  Yeah.

• 1:27:37Speaker 03

  If you think my monthly payment's bad, can't wait for you to see his truck.

• 1:27:40Caleb Hammer?

  I can calculate ish, kind of how much has gone to interest this year so far. Oh, his truck. Great. Yeah. To lug around all your, I don't know.

• 1:27:51Speaker 04

  Predator drones. I don't know. We used it this week for trees, branches. We cut down. So actually the truck is.

• 1:27:57Caleb Hammer?

  Yeah, but you could rent a truck for that one time.

• 1:28:00Speaker 04

  Yeah, but you never know when you're gonna need something. So the truck is coming handy a lot.

• 1:28:03Caleb Hammer?

  Rent a car.

• 1:28:04Speaker 04

  The truck is coming handy.

• 1:28:04Caleb Hammer?

  Like that.

• 1:28:05Speaker 04

  It was nice. And we're in Texas. I'm gonna say, we're in Texas. Right? If you don't have a truck, you're wrong.

• 1:28:10Speaker 03

  Okay.

• 1:28:11Caleb Hammer?

  Okay. If you don't have a minimum payment that you can't afford and a car that you just use to hold groceries once a week, you're wrong. Yeah. I'd rather have a car that goes fast.

• 1:28:21Speaker 04

  Well, I don't.

• 1:28:22Speaker 03

  Well, you don't have kids yet either.

• 1:28:24Speaker 04

  I like to have.

• 1:28:24Caleb Hammer?

  It's true. You're right. But mine fits more people anyway.

• 1:28:29Caleb Hammer?

  And it goes faster. And it's smoother.

• 1:28:31Speaker 04

  Mine's nice on the highway.

• 1:28:32Speaker 03

  What do you drive?

• 1:28:33Caleb Hammer?

  Tesla Monolux.

• 1:28:34Speaker 04

  Oh, that's nice. Can't get a Cybertruck.

• 1:28:36Caleb Hammer?

  It also drives for me.

• 1:28:37Speaker 04

  I'd buy a Cybertruck.

• 1:28:38Caleb Hammer?

  Too small on the inside.

• 1:28:39Speaker 04

  See? That's why I bought a Ford.

• 1:28:41Caleb Hammer?

  Yeah. Well, it's about as small as a Ford in the inside. Still too small for me.

• 1:28:45Speaker 04

  It's a nice truck.

• 1:28:46Caleb Hammer?

  Okay, well, you've lost $462 in interest this year so far for me.

• 1:28:50Speaker 04

  Okay.

• 1:28:51Caleb Hammer?

  Or for the, uh, for this car, for your car.

• 1:28:54Speaker 03

  Yeah.

• 1:28:56Caleb Hammer?

  Okay. So our grocery hauler, the truck. Oh, good. A minimum payment of $1,229. To go to a military base. What the are we do? This is insane. Come on, guy. This is crazy.

• 1:29:13Speaker 04

  I just got back from overseas. We only had the one car. I needed to get something.

• 1:29:17Caleb Hammer?

  Cool. Get a car, get an SUV. I don't care. It doesn't matter. Get a used truck even. It doesn't matter.

• 1:29:22Speaker 04

  I got back. We did a little look at trucks and stuff, the used ones, CarMax, things like that. Nothing was catching my eye. We went to Ford.

• 1:29:29Caleb Hammer?

  Who cares?

• 1:29:29Speaker 04

  Well, we cared at that time. Obviously, this is a great truck. It's a brand new truck. It was the first time. I just got back. I needed something immediately. Right? We got it. And look at the, and the interest rate on that is extremely low.

• 1:29:39Speaker 03

  1.9.

• 1:29:40Speaker 04

  1.9 interest rate. So we took the opportunity.

• 1:29:42Caleb Hammer?

  How much did you put down?

• 1:29:43Speaker 04

  Uh, I don't remember off the top of my head.

• 1:29:45Speaker 03

  I don't know, maybe a couple thousand.

• 1:29:47Speaker 04

  Yeah.

• 1:29:47Caleb Hammer?

  It's appreciated about a thousand dollars. Uh, well, no, no, more than that. But you're underwater by a thousand. It's not crazy, but.

• 1:29:54Speaker 04

  We did, we did put some down. I don't remember what the price was, but again, I got back, I got the vehicle really quickly. And we actually needed it immediately as soon as we did it because we were going, you know, traveling something and it worked out phenomenal. And we drive up to Amherst a lot.

• 1:30:06Caleb Hammer?

  Did, but again, like when I need a big truck, I rent it and it doesn't cost me a thousand, two hundred, twenty nine dollars a month. I'm going forever. I'm okay with the interest rate. However, as the, the value, this is going to go down substantially further, quicker. You know, especially we get closer and closer to a normal car market. This is.

• 1:30:25Speaker 04

  Okay, well, that's a nice job.

• 1:30:28Caleb Hammer?

  Okay, great. I prefer financial stability personally. I don't, I don't know. Maybe it's just a preference thing.

• 1:30:33Speaker 04

  Okay.

• 1:30:34Caleb Hammer?

  But you disagree?

• 1:30:36Speaker 04

  No, I, I'm not disagreeing. I'm just, it's in the past. It's already happened.

• 1:30:40Caleb Hammer?

  Yeah, but you can sell it right now and I would.

• 1:30:44Speaker 03

  I don't see that happening.

• 1:30:45Caleb Hammer?

  Well, there's, this is what we talk about sacrifice. I would sell both cars.

• 1:30:48Speaker 03

  And get like, what, like a used.

• 1:30:50Caleb Hammer?

  Yeah, a twenty thousand hour truck will still be good. It doesn't need to be the pretty truck that all the guys jerk off to at the can stoplight. It doesn't matter. Who gives a? If we're talking utility, because that's what you've bragged about it, you being used for.

• 1:31:05Speaker 04

  Okay.

• 1:31:05Caleb Hammer?

  Then be a real man and just get a truck for the utility and not to goon to.

• 1:31:11Speaker 04

  I'll look into it. I mean, I.

• 1:31:12Caleb Hammer?

  Look into it, guys. We can cut our debt and minimum to payments like crazy by you selling your car because you have an equity position. You sell in your car and we can, uh, borrow the difference or even just trade it in. You get a twenty thousand hour car. You get a fifteen thousand hour car.

• 1:31:27Caleb Hammer?

  Great. We've just cut this part of the debt substantially, which is a substantial part of our debt.

• 1:31:32Speaker 03

  Maybe.

• 1:31:33Caleb Hammer?

  Guys, it is so worth it mathematically. And this is just, we're just talking sacrifice for the sake of house. If we want to do more things for the kids, cool, sacrifice the car. Like, oh, come on. We, twenty thousand dollars is not going to be a bad car. This is gonna have some miles on it. Might have like five year outdated internal screens. It's not bad.

• 1:31:52Speaker 04

  Never thought about that. We can take a look at that and see if that's something that has.

• 1:31:55Speaker 03

  Yeah, we can look.

• 1:31:56Caleb Hammer?

  Please do, because a thousand, two hundred, twenty nine.

• 1:32:00Caleb Hammer?

  That's a disgusting minimum monthly payment, even at the interest rate. Actually, if you take into account the interest rates, that's a disgusting minimum payment. Cause that's with a low rate.

• 1:32:11Caleb Hammer?

  The truck is taking 11% of our income on a monthly basis. 11% is just so it can sit in the driveway the majority of its life.

• 1:32:20Speaker 04

  We'll take a look at it.

• 1:32:21Speaker 03

  We'll look at it.

• 1:32:24Speaker 04

  And that's not a push it off to the side, that's a we'll

• 1:32:26Caleb Hammer?

  I hope so.

• 1:32:27Speaker 04

  We'll legitimately take a look at that and see.

• 1:32:28Caleb Hammer?

  I really do hope so. It's more the minimum payment that terrifies me.

• 1:32:33Speaker 04

  Okay.

• 1:32:34Caleb Hammer?

  Just imagine what that could be doing towards our future, towards whatever, like it towards. I mean, I had a note that I kind of read at some point towards the beginning that said you guys want to go to Disney. That could cash flow us to Disney pretty quick.

• 1:32:47Speaker 04

  That is the goal is we want to get to stabilize so that way we do have family

• 1:32:51Caleb Hammer?

  choose

• 1:32:51Speaker 04

  trips once a year.

• 1:32:52Caleb Hammer?

  Priorities, where's truck or Disney, which one's more important? If you had to pick right now, truck or Disney?

• 1:32:57Speaker 04

  I mean, a family trip would be wonderful.

• 1:33:00Caleb Hammer?

  Then let's do that because this can cash flow a Disney trip in, you know, a few months.

• 1:33:03Speaker 04

  Never even thought about that. Honestly, that's then that again, that's why we're here because we're not the experts. We're the experts of.

• 1:33:15Speaker 03

  I was like, where are you going with that?

• 1:33:16Speaker 04

  I don't know. We're the experts of not being experted.

• 1:33:19Caleb Hammer?

  Well, we have a mortgage, 2,213,077. Love the rate 2.75.

• 1:33:27Speaker 04

  Wonderful. We financed it.

• 1:33:31Caleb Hammer?

  Home equity loan at 7.5.

• 1:33:32Speaker 04

  Yeah, well, that too.

• 1:33:34Caleb Hammer?

  Minimum payment, $1,290.64. Of course, now we add the additional monthly payment of 504 in equity, but yeah.

• 1:33:47Caleb Hammer?

  And then of course we have nothing to show for it because all the debt is racked back up.

• 1:33:50Speaker 04

  Yep.

• 1:33:52Caleb Hammer?

  Uh, wait, actually, let me get back to that truck. I know it's a bit. I want to get this interest.

• 1:33:58Speaker 04

  Sure. I'm curious too.

• 1:34:01Caleb Hammer?

  This one's lower. Of course, we know the interest and vast majority is going to principal.

• 1:34:07Caleb Hammer?

  This year so far. We are talking, well, because the balance is so big, $262.80.

• 1:34:15Speaker 04

  All right. It's good to know.

• 1:34:18Caleb Hammer?

  Mortgage. So, yep, okay, let's see what is going to interest.

• 1:34:24Caleb Hammer?

  Let's add it to the interest column.

• 1:34:27Caleb Hammer?

  Interest on this so far, $1,953.20 this year.

• 1:34:34Speaker 04

  Okay.

• 1:34:35Caleb Hammer?

  We are expected, of course, in a 30-year loan to have more interest hit upfront. Same with cars and everything early on in the loan. More is going to go to interest than principal.

• 1:34:44Speaker 04

  Okay.

• 1:34:44Caleb Hammer?

  Is that all you do?

• 1:34:46Speaker 03

  I think so, yeah.

• 1:34:47Speaker 04

  Debt, I believe, yeah, I don't think going through that's what we all are able to calculate, put together, so.

• 1:34:54Caleb Hammer?

  Okay, this year so far, $5,752.48 has been taken from your hands in just interest because you guys are holding the debt.

• 1:35:06Caleb Hammer?

  Sounds like a pretty good chunk of a Disney trip, if I've ever heard.

• 1:35:09Speaker 03

  So, would another home equity debt consolidation be something to look at, or absolutely not?

• 1:35:15Caleb Hammer?

  Would we? If our behavior was not fixed last time and we're back into this position, we add another debt? Again, double that debt from last time, then boom, get in this position again. Do we just keep doing that?

• 1:35:25Speaker 04

  No, that's, that's, that's the question I have.

• 1:35:28Caleb Hammer?

  Only allowing consolidation and/or bankruptcy even.

• 1:35:31Speaker 04

  No.

• 1:35:32Caleb Hammer?

  Well, either way, is those are applicable if you can prove you've changed your behavior for at least six months. If you stick to a hardcore budget, you are paying off debt, you are going in tents, cooking from home, cutting back on the bull for six months, and you've proven you can do that, then I will allow it. If you do it for a month, that doesn't count. You can do anything for a month and then fall back.

• 1:35:51Speaker 04

  I think that's a, that is a true statement.

• 1:35:53Caleb Hammer?

  I would definitely get, uh, in the, definitely sell the cars, that's for sure. I downsized the cars, just not going to get bad cars. Checking out to...

• 1:36:05Speaker 03

  Okay, I will look at it.

• 1:36:06Caleb Hammer?

  Checking it.

• 1:36:08Caleb Hammer?

  $1,834, saving $645.

• 1:36:11Speaker 04

  Savings?

• 1:36:12Caleb Hammer?

  Yeah. Apple YouTube membership better be ours. It's not, you're not a fan. We have the best YouTube membership on the entire platform. You know, the platform told us that?

• 1:36:21Speaker 03

  They tell everybody that.

• 1:36:23Caleb Hammer?

  No, they tell us that because we're in the top program and they have the insights to everything.

• 1:36:27Speaker 03

  Okay, good.

• 1:36:28Caleb Hammer?

  Well, I would share more, but I'm under an NDA.

• 1:36:32Caleb Hammer?

  But no, they do not tell everybody that. We offer more content than any other YouTube membership. Patreon.

• 1:36:38Speaker 04

  That's me.

• 1:36:39Caleb Hammer?

  Yeah.

• 1:36:39Speaker 04

  Yeah.

• 1:36:40Caleb Hammer?

  Plus the YouTube membership.

• 1:36:41Speaker 03

  Super Carlin Brothers?

• 1:36:42Speaker 04

  Yeah, I think, well, I think.

• 1:36:43Caleb Hammer?

  Okay.

• 1:36:44Speaker 03

  I don't know if you've ever heard of them.

• 1:36:45Caleb Hammer?

  Apple Bill, Apple Bill, Apple Bill, Marble Slab, Tees Candles.

• 1:36:50Speaker 04

  Yep.

• 1:36:50Caleb Hammer?

  Venmo Papa John's.

• 1:36:52Speaker 04

  Yep.

• 1:36:52Caleb Hammer?

  And other you break fix like, do we go there like, oh, we're breaking?

• 1:36:57Speaker 03

  No, we got our kids iPods.

• 1:36:59Caleb Hammer?

  Oh, good. iPads weren't enough.

• 1:37:02Speaker 03

  Well, it's because they're on the bus and they, my daughter, my daughter was getting bullied. And I thought it might help to have headphones on and just listen to music and zone out. And then like when we got them off eBay, the battery was really horrible. We had to get it replaced.

• 1:37:15Caleb Hammer?

  Where'd you get an iPad on eBay?

• 1:37:17Speaker 03

  iPod on eBay. They don't make them anymore. They're old school.

• 1:37:20Caleb Hammer?

  I thought they came out with, well, like one a couple of years ago.

• 1:37:22Speaker 03

  No, there's no more iPods. It's only iPhones.

• 1:37:25Speaker 04

  So we, we were too young for phones. We're not getting phones, right?

• 1:37:27Speaker 03

  Yeah, they're too little.

• 1:37:28Speaker 04

  Figure something that they can have for, uh,

• 1:37:30Speaker 03

  Music.

• 1:37:30Speaker 04

  Music to, to help my daughter and my son just on the bus, right? To and from work, uh, school, sorry, to and from school.

• 1:37:35Caleb Hammer?

  They don't have phones yet, obviously.

• 1:37:36Speaker 04

  No, they're very young.

• 1:37:37Speaker 03

  They've got no phones.

• 1:37:38Speaker 04

  But the iPods they have is the ability to listen to the stuff, to stay away from, you know, just issues on the bus, right? To keep them distracted, to, to get them to, uh,

• 1:37:45Speaker 03

  Point A to point B.

• 1:37:46Speaker 04

  Point A to B without, you know, being part of.

• 1:37:55Speaker 05

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• 1:38:18Speaker 04

  You know, the issue that they were having on the bus.

• 1:38:20Speaker 03

  Yeah.

• 1:38:20Speaker 04

  So.

• 1:38:21Caleb Hammer?

  High stocks, grade school, kids.

• 1:38:23Speaker 04

  Yeah.

• 1:38:24Speaker 03

  Yeah, kids are mean.

• 1:38:25Speaker 04

  Correct. Yep. You call the, yeah.

• 1:38:28Caleb Hammer?

  Uh, 2019, an iPod came out. Oh, wait. Yeah.

• 1:38:32Speaker 04

  Yeah. I think that's about, yeah, that's about right.

• 1:38:34Speaker 03

  And that's, that's. Yeah, I think the latest one is a seventh generation.

• 1:38:37Speaker 04

  But it still costs the, the, the high price that you would think it would not be. But they, they came back. We had to get the new batteries just so they wouldn't die and then, and then.

• 1:38:45Caleb Hammer?

  More PayPal Transfer, PayPal Transfer, Broadway Nation. More Broadway Nation.

• 1:38:53Caleb Hammer?

  Barnes and Noble, Smoothie King, you guys just go out all the time. Get Takier, Takier, Takira Alcharro, Cash App, Kohl's, Steam Games.

• 1:39:04Speaker 04

  El Tequila, yeah.

• 1:39:06Caleb Hammer?

  Red Robin, McDonald's, Etsy, World Market, Playstation Network, Playstation, something, Steam Games, Victoria's Secret. That's just, we're just blowing money and not all that's on kids.

• 1:39:17Speaker 04

  Nope.

• 1:39:17Caleb Hammer?

  We're also spoiling ourselves.

• 1:39:22Caleb Hammer?

  Oh, it keeps going. I keep thinking it's done. Steam, bullshit. MJ Locke, Cantira, M V Y B A, M V Y B A.

• 1:39:33Speaker 04

  Softball for the sun.

• 1:39:34Caleb Hammer?

  Oh, Free Spirits, Venmo and Out Money, KFC, Cook Unity Inc. Uh, just cook, just cook, just cook. Okay. I do a factor sponsorship here and there and it's great for people that can budget in. Don't have debt, don't have a fully funded emergency or who have a fully funded emergency fund. Forty Seven Brand, the baseball thing, Apple, Huff Gold, Venmo and Out Money, Sonic Drive-In, Venmo and Out Money, Amazon, Apple Bill, Texas Roadhouse, eBay Commerce. Oh my fuck, what are we doing? This is so much. This is so stupid much. Game Toppers, Cherry Technology, Amazon, well, this is a minimum payment. Amazon, Amazon. Universal, Cash App, Amazon Cash App, Ours Entertainment, Ours Entertainment, Apple Bill, Cash App, Entertain,

• 1:40:19Caleb Hammer?

  Ours Entertainment, what is, oh, the, is Ours Entertainment? That was my son's birthday party. Oh my gosh, it's every five seconds though. Ours Entertainment, Ours Entertainment. It's hundreds of dollars. Yeah. Hundreds of dollars.

• 1:40:29Speaker 04

  Yes.

• 1:40:29Caleb Hammer?

  Oh, that's crazy. Free Spirits. Lock Wells, uh, Lock Block, a lot of even know, Disney Plus, Free Prince, Venmo, First Course, Free Prince, Apple Bill, Apple Bill, Peter Piper Pizza. My goodness, haven't heard that name in forever. Peter Piper Pizza, Microsoft, more Patreon, eBay, Candace International or something, Click Pay Champions, Pokemon Champion, PayPal and Out Money, Divine Acres. Again, we are prioritizing over this our life, prioritizing this over comfy furniture for after surgeries, prioritizing this over Disney part, over debt payoffs, over emergency funds. Divine Acres, Venmo, Fabletics, Tequila, Mexican Food Restaurant.

• 1:41:14Caleb Hammer?

  Chili's, Tequila, Mexicana, Cook Unity, JCPenney. Oh, do you guys not realize how insane this is? This is one month, one month, plus everything we've already gone over. This is crazy. Nitto, Jackl- Lackland, Jamba Juice, Raisin Canes, Apple Bill, Venmo, Clay Casa, Brew House, Minimum C Payment, PayPal and Out, PayPal and Out, Apple Bill, Medina Valley, Cantina Vending Machine, Krispy Kreme, Etsy's Olive Garden, Cook Unity, Jimmy John's, Jamba Juice, Apple Bill, Apple Bill, Smoothie King, TJ Maxx. That's fucking insane. Spending seven, eight thousand dollars on bull.

• 1:41:56Caleb Hammer?

  When we could have fully, we could, oh my, the amount of money that we could have put towards debt was crazy. Absolutely crazy. Could even afford your truck almost.

• 1:42:10Caleb Hammer?

  Yeah, six hundred dollars in savings. We're doing all that while we have a thousand dollars in savings there, six hundred dollars in savings there.

• 1:42:15Speaker 04

  Those savings are for our children's. They're, they're children's. We are trying to set them up for, for the future stuff. So we are using.

• 1:42:20Caleb Hammer?

  What, a thousand dollars?

• 1:42:22Speaker 03

  Yeah, we started a, that's the one you're looking at. But we have a high yield savings account for each of our kids. I think they each have like one thousand two hundred, one thousand four hundred. We put money towards it every paycheck.

• 1:42:33Speaker 04

  Small amount, small amount money towards it. It's going to build over there. They're not going to get that until they're a lot older, so.

• 1:42:38Caleb Hammer?

  So high yield savings account, what's the interest rate on this?

• 1:42:41Speaker 03

  Uh, well, we get like a four point oh seven dividend. We got it through Navy Fed.

• 1:42:46Caleb Hammer?

  You can put it in a five twenty nine, at least that's it, like it's a tax advantage.

• 1:42:49Speaker 03

  Specifically for just education, right?

• 1:42:51Caleb Hammer?

  It's for education.

• 1:42:52Speaker 03

  We want it for like, if they want to buy a house or a car.

• 1:42:55Caleb Hammer?

  Pay taxes on that. At least it can, it will probably, if it's going historic market trends, get eight to 10% instead of 4%. Plus as interest rates go down, which now that, you know, trade negotiations are being done a bit more and, you know, interest rates might go down. What was this called you said?

• 1:43:14Speaker 03

  A five twenty nine.

• 1:43:15Caleb Hammer?

  It's a tax advantage plan where you can put it in there, essentially tax free, let it grow in the market. You choose the investments of choice and then they can pull it out tax free. For school? Anything education related. But if they don't pull out for school. It can, it can literally be used in high school for sporting things. In school related, it can be used, anything school related. Okay.

• 1:43:35Speaker 03

  I just don't like the restrictiveness, but.

• 1:43:37Caleb Hammer?

  I get it, but that's why it's tax advantage. Where you're only getting 4%, if interest rates go down, this could go to 2%.

• 1:43:43Speaker 03

  Well, we have it locked in for two years at 4%.

• 1:43:46Caleb Hammer?

  Big fuck.

• 1:43:47Speaker 03

  Okay, but I'm listening. Okay, okay, okay. I'm just saying. Just explaining why we chose.

• 1:43:51Caleb Hammer?

  I get it, I understand, but it's only, again, it's a thousand hours. You could have, this could easily have been $50,000 per kid by now. If that's what we were prioritizing. Easily, by the time where, where you guys have been and where we are. Maybe 25,000 hours per kid. Okay, I'll go with that, yeah. Yeah. Okay. It could be stacked. They didn't know that. And you guys cannot spend money on birthday parties or fun until you have a fully funded emergency fund. Cause how are you guys gonna pay for a big expense when that happens? A kid goes to the hospital, uh, uh, uh, uh, you know, breaks a limb, whatever, who even knows? Um, a car, a car breaks down, there's so many emergencies that might not be covered, okay? Yeah. Uh, there are so many things, that's why they're emergencies, cause they're unpredictable. If that comes, you have $500 saved up, or something like that, for emergencies.

• 1:44:35Caleb Hammer?

  Like, that's insane. You guys should at least have 20,000 hours saved on the side for emergencies.

• 1:44:41Speaker 03

  $20,000 saved?

• 1:44:43Caleb Hammer?

  We'll figure out what is required for you to survive, and then we'll do six months of that. I don't know, I'm just guessing.

• 1:44:47Speaker 03

  Okay.

• 1:44:48Caleb Hammer?

  Uh, might be 15, might be 12. But even, we need to have that before we can even spend money on fun. Because you guys are putting yourself in such a risky position where you're only gonna go into more debt if an emergency happens. Um, HVAC went out last summer, you had to go into debt for it. Luckily, you qualified for an okay debt, but your debt to income's getting pretty rough. At that point, credit scores will go down, you will, the debt, you'll qualify to be able to fix something like that, a new roof or something. Yeah, okay. That, when that happens, maybe you have to have a high interest loan for it. You need an emergency fund, and not having an emergency fund is an emergency.

• 1:45:18Speaker 04

  We, uh, we have tried that before, uh, uh, in our, uh, Navy Federal.

• 1:45:23Caleb Hammer?

  Yeah, don't put it in Navy Federal.

• 1:45:25Speaker 04

  Well, we have, and that's what we got. So, in Navy Federal, we put, we put different savings such as the house emergency, the car emergency. Car fixtures is what it was called.

• 1:45:32Speaker 03

  Car maintenance.

• 1:45:33Speaker 04

  Uh, X Christmas fund, right? We've, we've done that small stuff with savings for Navy Federal. Obviously, it didn't work, because what happens is.

• 1:45:40Caleb Hammer?

  You just take it.

• 1:45:41Speaker 04

  We, when it comes, when it comes time for us needing money, we pull from it. Oh, great. We're gonna need money because we got this bill coming out, whatever, or hey, we're at a hundred dollars. We need something, let's pull it from, pull it from there. And she asked, you know, which one are we pulling it from? You know, Christmas, Christmas fund or, or car fixer?

• 1:45:56Caleb Hammer?

  That.

• 1:45:56Speaker 04

  Well, that's what we were doing. That's what we've been doing.

• 1:45:58Caleb Hammer?

  I put it in an account you can't even think about.

• 1:46:01Speaker 03

  That's a good idea. That's a great idea.

• 1:46:03Speaker 04

  Like, I'm, yeah, that's why we're here, because we don't know what that looks like. We don't know what it means.

• 1:46:08Caleb Hammer?

  SoFi account, whatever.

• 1:46:09Speaker 04

  Apparently, obviously, it said, don't do Navy Federal.

• 1:46:10Speaker 03

  It's so far like a bay?

• 1:46:12Caleb Hammer?

  If you have access to it like that, it makes it harder, which is your behavior. That's okay. Recognize your behavior. If you're an alcoholic, don't have drinks in the house. If you can't stop eating fast food, f***ing Uber Eats, you know, it's like, take a different path home where you're not seeing the golden arches.

• 1:46:24Speaker 04

  I like it.

• 1:46:24Caleb Hammer?

  So you just, you put in those mechanisms. It's okay to, I, we all have immature behaviors in different ways.

• 1:46:29Speaker 04

  Yes.

• 1:46:30Caleb Hammer?

  That's okay.

• 1:46:30Speaker 04

  I agree.

• 1:46:31Caleb Hammer?

  You just set yourself up for success by not allowing yourself. If you're gonna pull for money easily, don't have it attached to the same account.

• 1:46:37Speaker 03

  Okay.

• 1:46:37Speaker 04

  Okay.

• 1:46:38Caleb Hammer?

  Uh, I don't even realize this. You know your f***ing truck payments as much as your mortgage?

• 1:46:42Speaker 03

  Yeah, it is.

• 1:46:44Caleb Hammer?

  That is the most American thing I've ever seen, and that is not a good thing.

• 1:46:49Speaker 04

  Well, that's a good statement.

• 1:46:50Caleb Hammer?

  Delinquency rates on vehicles are at all time high, higher than during the great recession. I don't want you to end up there.

• 1:46:56Speaker 04

  Okay.

• 1:46:58Caleb Hammer?

  People behind on their car payments, I mean.

• 1:47:00Speaker 03

  Yeah.

• 1:47:00Speaker 04

  Yeah, I don't wanna do that either.

• 1:47:01Caleb Hammer?

  Minimum of the debt payments, not including your mortgage, but including your home equity,

• 1:47:06Speaker 04

  Okay.

• 1:47:06Caleb Hammer?

  is three thousand four hundred thirty nine dollars and ten cents. So that alone is thirty percent. Debt payments alone are thirty percent of your income. And keep going down this path. It gets to forty percent, it gets to fifty percent, and you see how we start missing, missing payments?

• 1:47:21Speaker 03

  Yeah.

• 1:47:22Caleb Hammer?

  Then cars get repo'd, foreclosure notice is hit, because you have to choose what goes where.

• 1:47:25Speaker 04

  Okay.

• 1:47:26Caleb Hammer?

  That's the dangerous path we're heading down. So yes, it is an emergency, and no, it's not just fixable. I need that to be very clear. So mortgage is one thousand two hundred ninety dollars and sixty four cents. What about gas, electricity, internet, all that stuff? Utilities combined, how much?

• 1:47:44Speaker 04

  Oh, um.

• 1:47:45Caleb Hammer?

  On a monthly basis?

• 1:47:47Speaker 03

  I don't know. I didn't calculate it all.

• 1:47:49Caleb Hammer?

  I wish it would have.

• 1:47:50Speaker 03

  Thirty-five gas for me, sixty-five gas for him weekly.

• 1:47:53Caleb Hammer?

  What? Driving?

• 1:47:54Speaker 03

  Yeah.

• 1:47:55Caleb Hammer?

  No, no, no. Home utilities.

• 1:47:56Speaker 03

  I know.

• 1:47:56Caleb Hammer?

  CPS, but no, CBS.

• 1:47:58Speaker 03

  It's at least eight hundred.

• 1:47:59Caleb Hammer?

  Water, water.

• 1:48:01Speaker 03

  For everything, maybe.

• 1:48:03Caleb Hammer?

  Yeah, it's, it's, it's up there.

• 1:48:05Speaker 03

  Somewhere between eight and a thousand.

• 1:48:06Caleb Hammer?

  We had it. We'll call it nine then. All right, call it nine hundred. Nine hundred. I know some months will be more, some will be less. Phone bill.

• 1:48:13Speaker 03

  It's one hundred and fourteen.

• 1:48:16Caleb Hammer?

  It's not the worst. I like those third-party services that use the same towers, like Helium does T-Mobile, Mint uses something. Uh, I would rather do that if you guys own your home outright, just while we're in a budget mode.

• 1:48:29Speaker 03

  Mm-hmm.

• 1:48:30Caleb Hammer?

  So, again, I prefer Helium specifically, but, uh, gas, vroom, vroom, drive, drive, how much? Sixty bucks for me.

• 1:48:36Speaker 03

  Thirty-five for me, every week. Oh.

• 1:48:38Caleb Hammer?

  Oh, okay. Sixty plus thirty-five. Mine's one. How much a month? How much a month of the house?

• 1:48:42Speaker 03

  So, let's say four hundred, because if we do a hundred a week, approximately between the two of us.

• 1:48:48Caleb Hammer?

  Oh, okay.

• 1:48:48Speaker 03

  We'll say four hundred for gas. Yeah.

• 1:48:50Caleb Hammer?

  Yeah. Okay, four hundred. Yeah. Car insurance?

• 1:48:53Speaker 03

  Three hundred and twenty-five?

• 1:48:56Caleb Hammer?

  We have you as saying.

• 1:48:57Speaker 03

  It's really high.

• 1:48:58Caleb Hammer?

  Yeah, it's real. Yeah. Food. We could do food for, could do food for a thousand. Are we talking, we talking? Groceries. Groceries. Strictly groceries and meal prepping, honestly. Meal prep with the kids, like lots of spaghetti, lots of meatballs, lots of tuna salad, not tuna, chicken salad sandwiches, or tuna if you like.

• 1:49:17Speaker 03

  You could try it, yeah.

• 1:49:18Caleb Hammer?

  I think we'd do a thousand. We might be able to boost that. Okay. TP fun, this is sports and stuff. Give me monthly costs without purchasing new things, what is needed for their enrichment activities that they are enjoying doing, because I want to be able to budget that in.

• 1:49:31Speaker 03

  I think it would be probably around three hundred.

• 1:49:33Caleb Hammer?

  Okay.

• 1:49:34Speaker 03

  Well, maybe not, um, because, sorry. Because she's got two thirty-two, plus the private lessons twice a week. She's trying out for the gymnastics team, May thirty-first.

• 1:49:45Caleb Hammer?

  Okay, what do we think?

• 1:49:46Speaker 03

  I don't know. Maybe say four hundred.

• 1:49:48Caleb Hammer?

  Okay, I'm gonna do TP fund is 500 then.

• 1:49:50Speaker 04

  Yeah, I would say 500 because it's Joseph too.

• 1:49:52Speaker 03

  Yeah, okay.

• 1:49:53Caleb Hammer?

  Oh, well, if it's 500 with them.

• 1:49:55Speaker 04

  No, 500 for both children.

• 1:49:57Caleb Hammer?

  And then I'm boosting it to 600 because it also includes, this is TP fund. You throw those things in, they're the extra little things. This is also toilet paper. I'm doing 650 dollars.

• 1:50:05Speaker 04

  Okay.

• 1:50:06Caleb Hammer?

  Uh, you budget those out specifically more on your own, but I call it TP fund. It's those enrichment activities for the kids. It's also your toilet paper, toothpaste, tampons, everything that's needed, all that good stuff. Healthcare, stuff like that, you don't really have to pay anything.

• 1:50:18Speaker 04

  Okay.

• 1:50:19Caleb Hammer?

  Um, okay, right?

• 1:50:23Speaker 04

  Correct.

• 1:50:23Caleb Hammer?

  You have no medical bills? Okay, cool.

• 1:50:24Speaker 04

  Correct.

• 1:50:25Caleb Hammer?

  Uh, pets?

• 1:50:27Speaker 04

  We have two.

• 1:50:27Speaker 03

  Yeah.

• 1:50:28Caleb Hammer?

  What are they?

• 1:50:29Speaker 04

  They're white Labradors.

• 1:50:30Speaker 03

  Yeah, with two white Labradors.

• 1:50:31Caleb Hammer?

  Ages and health.

• 1:50:31Speaker 04

  They are turning one this month.

• 1:50:33Caleb Hammer?

  Do we have pet insurance?

• 1:50:35Speaker 03

  Yes.

• 1:50:35Speaker 04

  You have pet insurance?

• 1:50:36Caleb Hammer?

  What's the month it costs?

• 1:50:37Speaker 03

  It's 115 for both.

• 1:50:40Caleb Hammer?

  Trust me, it's worth it.

• 1:50:41Speaker 04

  Is it? That's the question we're gonna have because she doesn't want the pet insurance. She wants me to get rid of it.

• 1:50:45Speaker 03

  Yeah.

• 1:50:45Speaker 04

  I have it.

• 1:50:46Caleb Hammer?

  Dude, my fucking just absolute creature of an investigator of a dog. Had to take her to the emergency room again for the millionth time the other day. Trust me, it is worth it. It'll save you thousands, especially Labradors, they like to sniff around and get in things.

• 1:51:01Speaker 04

  Yes, they do.

• 1:51:02Caleb Hammer?

  Trust me, it's worth it. It always feels like, oh, I really need this. And then, and then all of a sudden you see that fucking 10,000 hour bill to keep them alive because something got stuck in their stomach and it's like.

• 1:51:13Speaker 04

  That's good to know.

• 1:51:14Caleb Hammer?

  Okay. So the pet food, how much on a monthly basis?

• 1:51:16Speaker 04

  They're, they eat a lot.

• 1:51:18Speaker 03

  It's 160 because it's two bags a month.

• 1:51:20Caleb Hammer?

  That's fine. 160. Anything else that needs to be in your budget that I have not put in? Think.

• 1:51:27Speaker 03

  Oh, we have like subscriptions and stuff.

• 1:51:29Caleb Hammer?

  No, you don't.

• 1:51:29Speaker 03

  Oh, okay.

• 1:51:30Caleb Hammer?

  If you can fit them in the TP fund, you can, but if you can't, they're canceled.

• 1:51:33Speaker 04

  Oh, well, we're talking like Netflix, Disney Plus, you're saying those ones?

• 1:51:38Caleb Hammer?

  We sure are. I'd rather go to Disney than.

• 1:51:40Speaker 04

  Watch Disney?

• 1:51:41Caleb Hammer?

  Have Disney Plus.

• 1:51:42Speaker 03

  Well, I need to like holidays and stuff.

• 1:51:45Caleb Hammer?

  Hold on, nope.

• 1:51:46Speaker 04

  But you're saying Netflix and all that stuff is.

• 1:51:49Caleb Hammer?

  Guys, these are sacrifices. We're either sacrificing or we're not.

• 1:51:52Speaker 03

  But it also has to be like livable.

• 1:51:53Caleb Hammer?

  I said, this is livable. People live like this. You are, you, I mean, that's a spoiled mentality.

• 1:51:59Speaker 03

  To not spend money on holidays?

• 1:52:01Caleb Hammer?

  Yes.

• 1:52:02Speaker 03

  That's spoiled?

• 1:52:03Caleb Hammer?

  It's an entitlement. It is not required for survival. I want you to, and you probably can budget it in. I'm not putting it into the budget for what is required to survive.

• 1:52:12Speaker 03

  Okay, required to survive, okay.

• 1:52:14Caleb Hammer?

  Which is how you should be living until you get out of, you do not have an emergency fund to cover emergencies. If a roof, if you have to replace a roof, you're, if you have to replace a car, you're, you're done. Christmas is not prioritized over the basic necessities for living and survival.

• 1:52:28Speaker 03

  Okay.

• 1:52:29Caleb Hammer?

  I'm sorry, it's simply not. And if we're not willing to sacrifice that, then like, then we're done. Eight thousand three hundred ninety-three dollars and seventy-four cents. Again, if you can fit subscriptions into the six hundred fifty-dollar TP fund, you can. If you can't, you cut them and you have to start prioritizing which ones you want.

• 1:52:44Speaker 04

  Okay.

• 1:52:44Caleb Hammer?

  For the money that hits our account for now until February, you have an extra three thousand five hundred six dollars and twenty-six cents. So this is what I'm gonna do. I'm gonna allocate five hundred six dollars and twenty-six cents to fund money. Stock that up, use it for a big trip. Stock it up, use it for Christmas. Or five hundred dollars going out to eat on a monthly basis. Whatever you guys decide to do, that is what is allocated. So it gives you an extra three thousand dollars left. Now we need to make use of this three thousand dollars heavily hard before all of a sudden the income drops by a thousand, because then we're only gonna have two thousand left. So.

• 1:53:18Speaker 04

  Okay.

• 1:53:20Caleb Hammer?

  This, I would snowball as you guys did before. I would downsize the trucks. I'm going to assume you do, and I'm going to minus twenty-five thousand dollars from your debt, because we are gonna downsize both vehicles. Five thousand for you, twenty thousand for you.

• 1:53:35Speaker 04

  Okay.

• 1:53:37Caleb Hammer?

  Not including mortgage, but including home equity, because it is not a great interest rate. And then minus that twenty-five thousand, we have a total of bad.

• 1:53:50Caleb Hammer?

  I don't think I did that math right. Let me make sure. No, they did it right.

• 1:53:53Speaker 03

  Should be around seventy five thousand. Is that right?

• 1:53:56Caleb Hammer?

  No, just let them.

• 1:53:57Speaker 03

  Okay.

• 1:53:58Caleb Hammer?

  Let them. Okay, bad debt is a hundred thirty seven thousand. That's about right. One hundred seventy dollars.

• 1:54:03Speaker 03

  No, are you talking about, oh, this is with cars?

• 1:54:06Caleb Hammer?

  That's, yeah, with you trading down. That's after you trading down cars. Yes, that's right. If you don't trade down cars, it's a hundred fifty thousand dollars of bad debt. Yeah, that makes sense. A hundred sixty thousand, just about, of bad debt. Okay. That's really bad. That's really bad. Okay, so I'm going to...

• 1:54:27Caleb Hammer?

  So it's like sixty eight and a half months to pay off. Or five years. That's actually not horrible. But if we have that extra thousand this year, yeah, I mean, you guys will pay off if you actually want to sacrifice, which by the way, I gave you a lot of money for fun money. Uh, should take about four and a half years to pay off our debt. And that's with fun money. Normally, I can't give people fun money, so you guys are lucky with that. I would take it. I would sacrifice five hundred dollars a month. We can still have a lot of fun on that. Yes. But this gives us debt payoff in four and a half years. But then, what we need to survive if we start... Okay, so eight thousand three hundred ninety three point seven four is what you need to survive now. But we get rid of the debt except for the mortgage, and you need survival funds of approximately five thousand dollars

• 1:55:11Caleb Hammer?

  on a monthly basis. So we need to save up thirty thousand dollars for an emergency fund. Okay. So it's higher than twenty thousand dollars. That's a lot. But that's okay. At that point, we'll have a lot of money we can put towards debt that'll take about, I honestly think, six months. So this is gonna be a total of five years. Five years, and we are bad debt free, all debt free, except for the mortgage, which is totally fine. Hold on to the mortgage as long as you can, until you want to move. Okay, so, and then you have also a thirty thousand dollar six-month emergency fund. You guys are like golden. You guys have no idea what it's like on that other side, because you've only ever consolidated. And even when you paid off debt the first time, you didn't have a full emergency fund. This will be like something you've never lived before. And then, by the way,

• 1:55:55Caleb Hammer?

  uh, this is without any cost of living increase. You guys will literally have five thousand dollars a month at a minimum to blow on whatever you want.

• 1:56:08Caleb Hammer?

  If you really want to, I'd set some aside for rainy days and kids and whatnot. But you guys are gonna have a lifestyle that you don't even know. But even still, you're living a relatively comfortable lifestyle until then. Cause I'm giving you, I'm giving you on a yearly basis $6,000 to blow. Okay.

• 1:56:28Caleb Hammer?

  That's incredible. So that's what I would do. I would do small steps to large steps, downsize the vehicles, prioritize paying those off, roll them over into the next ones. All the minimum payments that we save from one debt rolls to the next payment. Okay. Okay. Yes. Save up the fully funded emergency fund. Do that, okay. You guys are gonna set your kids up for success. It's gonna be great. I want to see you guys on the Financial Auto Follow Up channel, making some progress in the coming months. Okay. All right, I will get you your Hammer Financial Score, but join us for the post show. That's where there's extra stuff that we did not talk about for either privacy or for demonetization, or because Lindsay's held something for T-related purposes. Join us in the post show. The Hammer Elite version is the best YouTube membership on the entire platform.

• 1:57:12Caleb Hammer?

  The platform has said that themselves. Make sure you join that really helps support the channel, thousands of hours of extra content. Hammer Financial Score, you overspent, so your spending in a budget score is zero out of 10. Your debt? It's brutal, but no collections, nothing. And for your income situation, I'm giving it two out of 10. Don't like the home equity, but it is what it is. Still have an equity position in your home. Emergency fund? One out of 10. That's what's saved up is basically, you know, one tenth. Retirement? Well, you guys are kind of set because of what you guys got going on, but we just don't have. I do have the TSP. Yeah, exactly. Yeah. So I am gonna give you a

• 1:57:53Caleb Hammer?

  the lifestyle you want to live? I think closer to about a seven out of 10 there.

• 1:58:00Caleb Hammer?

  And then real estate? I like the real estate position, don't like the equity loan. So because of that, bringing it down to a six out of 10, but love the rate, love the payment. Okay. If we didn't have that equity loan,

• 1:58:13Caleb Hammer?

  it would be like an eight.

• 1:58:16Caleb Hammer?

  Hammer Financial Score rounded up 3.5 out of 10, which just shows how easy it is to get out of this situation if you guys actually sacrifice and grind and not prioritize your fun. Guys, join us for the post-show. We'll see you there. And again, if you don't want to be like a guest on the show, download the budgeting app, link in the description below, sign up for the annual version. I'll send you the cookbook that can't be purchased anywhere else. I'll sign it and mail it directly to you. See you there.

• 1:58:38Speaker 03

  I'm pretty sorry, by the way.

• 1:58:39Caleb Hammer?

  What are you pretty sorry about?

• 1:58:41Speaker 03

  I did just recently buy seven L.A. Dodger and New York Yankee baseball caps, and I didn't want to tell you.

• 1:58:49Caleb Hammer?

  Didn't want to tell you?

• 1:58:51Speaker 04

  This is what I'm talking about. You don't need all seven.

• 1:58:53Speaker 03

  I got it before it got sold out.

• 1:58:55Speaker 04

  The anchor that I want on there is a limited additional.

• 1:58:57Speaker 03

  $700 compared to $30.

• 1:58:59Speaker 04

  But still, it's the only one that's right.

• 1:59:00Speaker 03

  That's not comparable.

• 1:59:01Speaker 04

  Don't ask us how much we paid on our wedding.

• 1:59:03Caleb Hammer?

  Exclusive members content. Click the link in the description or pinned comment below and watch thousands of hours of extra and uncensored content.

• 1:59:13Speaker 00

  At Edward Jones, we believe rich is more than caring about the latest and greatest. It's also taking care of what gives your life meaning. That's why your dedicated financial advisor meets you where you are with personalized financial strategies that help protect what matters so you can preserve your progress while creating a path forward. The key to being rich is knowing what counts. Let's find your rich together. Edward Jones. Member SIPC.