hi my name is Mel I'm from San Antonio
I'm 22 years old and this is financial
audit but we do for a living in San
Antonio right now
two things but three things okay so
first I'm a student I'm in grad school
second I work remote for the Ford Motor
Company on their talent acquisition team
as a social media Co-op so only 20 hours
there
and then I also work at HEB as a
personal shopper and then I also do like
cross-functional
and I work like 25 26 hours over there
like every week okay so what are you
bringing in from each position
um around 300 a week from HEB and then
around 850 to 900
um twice a month with Ford
okay sorry that was a lot that was a lot
is that those are our pre-taxes uh after
tax after tax for both those yeah okay
so 1700
from Ford
and it was 300 a week yeah it depends on
how many hours I work but that's usually
how much should I bring back a week they
pay me weekly
about an extra thirteen hundred
yeah a month yeah
okay so 22 did you just get out of
college did you not go to college what
was that situation
it did so I got my undergrad uh last May
in what in marketing and now you're
bringing home take home three thousand
dollars a month yeah is what's in your
account you're seeing yes okay so 22 3
000 hours a month
or 36 000 a year
post tax and contributions and
everything like that deductions all that
good stuff yeah you know not terrible
for right after graduation but how do
you feel
I feel like I could do better and I
haven't started in a 401k or anything
like that
any reason why no I just haven't I know
that's as well but you just haven't
because I guess okay one of my jobs
offers it I just need to sign up I just
haven't signed up for it so
and they match I I've just been lazy why
is this fourth position on a full-time
position for you
um you know what that's a good question
I started uh almost four yeah four
months ago so I think it's just like a
trial because there's another girl
that's full time now and she started as
a co-op so I think it's just trying to
see how it goes um but I have it as a
part-time because I wasn't sure how
demanding grad school would be but now I
feel like I can handle a full-time job
now
oh okay yeah so I wanted uh I guess the
flexibility to cut back hours if I had
to so I have for sure like forward pays
my bills
so I'm trying to go into a career
position right now
I mean it's in my field what would grad
school be for
eign
books a month I'm curious what's the
tuition
um
um 12 000 a year
thirteen thousand
so why aren't you cash flowing up
wouldn't you really paying for it yeah
yeah I don't want to feel the pain of it
right now what I don't want to feel the
pain I mean there's no interest on my
loans what is you don't want to feel the
pain but you're just
like delaying like an ultra large tumor
that has to get removed eventually
instead of just dealing with it now true
it was letting it grow yeah and
nothing's gonna be forgiven
okay well if I work for the government
okay well I'm looking at that what the
10-year forgiveness program and even
then I've seen like sketchy records
or like success rates and stuff because
you got to be absolutely perfect and
then apply for it you can't accidentally
you know like forget to make a payment
is that what you're saying yeah like all
you do is one little mess up oh
in that 10 years yeah between nine and a
half years yeah and then whoops because
I changed checking accounts and
something either way okay well good
point
um so I just pulled out my last loan so
I'm planning to be done by next May so I
don't have to pull out anything
okay well what upsets me okay give
yourself a score zero out of ten where
do you think you are financially
I feel like I'm a five
okay so what upsets me is why are we
taking out student loan debt when you
could be cash flowing this and it's in
San Antonio so it's a relatively cheaper
city as far as cities go yeah and the
tuition you could cash flow you could
have rent you could do things we'd be
living you know certainly not luxurious
but you could cash flow and then a lot
of the things that I went through here
kind of upset me that you're taking out
student loans and then doing the things
that you're doing
um
so why do we so we have a like alone
here yeah of two thousand dollars I
don't even know what this is and what's
this for what is this it was a uh for
credit card consolidation okay okay so I
got a credit card at 19 18 and I want I
needed a a Macbook okay I didn't need a
Macbook I needed a computer for school
and I got like their card there was no
interest on it and I was just doing
minimum payments this was before I knew
about credit cards and stuff this was
before I was just paying the minimum and
then I realized the year was gonna the
two-year Mark was gonna come up and they
started charging interest and then I
started using the credit card and it was
just too much so I just used that loan
to pay off all my credit cards
okay yeah because the yeah you better
paid off these when did you do this I
did that like two a year and a half ago
two years ago oh yeah I can see how it
was tempting at that time because if
you're interested in or not we could
have just paid this off yeah in fact I
see no reason why you're not paying this
off because it's at over 10 interest 90
a month
it's really no reason for this to exist
yeah a little confused there's no reason
for this to exist and there's no reason
for you to be taking off student loans
okay
sure now okay here's something you pay
off your credit cards now yeah now I do
kind of kind of well we'll get to one of
them but oh okay yeah yeah but what's
stupid is you're taking out student
loans how much are you taking out a
semester are you taking it all out or
are you catching on any of it no okay
well this past this coming semester I
took out 20 000.
what was the annual tuition it was 10
something well
um with books and all that uh books were
at did not double it I went through
college I did the books they did not
take it from attendance okay for a
semester it should have been five right
if you said it was ten something for an
annual tuition like 12. okay but how do
we get to 20 for a semester well no no
for two for a whole year okay okay so
how do we get to 20 again did you borrow
for your like I borrowed for the whole
year next year but I get it but how do
we go from 12 to 20 though oh oh and yes
I do know books cost money and if that
was which again cash flow but if you
could it's uh because I'm taking four
grad classes next semester and then
three of them are in the evening
and I'm worried that I won't get enough
hours or my schedule will fit me to get
enough hours at egb
you know what I'm saying because I work
evening what's that the excuse for what
are you trying to excuse with that oh in
case I need to pull up need money to
like pay bills okay I see what you're
saying there but that will not excuse
the next thing we're going into oh okay
but before we do that you also have no
excuse to not hit the Subscribe button
because you should subscribe and we're
so close to 500 000 subscribers but okay
so we're doing we're not we're not
paying for uh school right now and cash
flow and we're borrowing because you
know we might need money okay we might
need money as she goes and spends 500 on
both immediately this makes no sense
you're getting coffee getting Burgers
we're getting uh some crap from the gas
station because that was not enough
money for gas in the invented family and
Starbucks in canva and some scorpion
place and another restaurant in Lyft
rides in midnight indoordash and social
spa and Discovery Plus in Chick-fil-A
and Alta and First Watch and Disney Plus
yeah so we can't pay for school because
we and we need to set money aside just
in case we don't have another job yet
your money you're going and spending
dumb both money stupid money oh I go out
once a week
it's a week that is not once a week I
don't know what you consider going out
guess what there's like four weeks in a
month how many things did I just name
off
what
I didn't realize how bad it was do you
budget
I try okay so you don't budge no not
really I just pay off my card
and I make sure I have no okay my way of
budgeting there is no excuse anymore
again this is why I was immediately
upset with you taking out student loans
if we're doing this
on a monthly weekly daily basis why are
you taking out debt you know that
translates to you taking out debt so you
can continue to spend this
or else this money you'd be living on
you know packed lunches every single day
and you'd be paying for school and
living in a meh you know uh studio
apartment
yeah what's your logic here what's
happening
I don't even know honestly uh I just
okay my way of budgeting is I have two
savings three savings accounts one of
them is for my rent utilities I have
another one for like I know monthly okay
monthly expenses and then I have a money
Plus account that actually like I don't
touch the money I try not to okay so out
of your three savings accounts one is
for savings yeah the other two how much
is in that money Plus account like six
thousand eight hundred
six thousand eight hundred yes okay so
if you already have like a baseline
emergency fund
saved up why the
are you not just paying for school dude
you make the money to do it if you were
in a situation where you weren't making
the money to do it we can have that
conversation but you are and you're
choosing for it to go to Bulls
[Music]
we have a checking account let's see
what you do in your checking account
okay let's do an apple cash 101 dollars
who knows where that went and Cherry
Technologies you go to well you know now
that you said you work at HEB I'm no
longer thinking these HEB things are all
groceries anymore I think you're picking
up some crap there too picking up some
like drinks and stuff because you go to
18 every second of your life yeah I get
like water
when yeah I get like electrolyte water
breaks
happening stuff on here
paying towards cards Nordstrom 75 you
need to get 75 on Nordstrom when we're
taking out loans for school that was
from my mom that was Mother's Day I used
my Nordstrom card be like hey Mom for
Mother's Day I'm like going to school in
cash flowing it and then I'm gonna have
an awesome life so you don't have to
take care of me happy Mother's Day I'm
trying to live life over here yeah you
needed to go hundred ten dollars nails
I paid for my mom too well I paid for
her and me but it was her birthday it
was her birthday it was my birthday too
you know it's birthdays happy birthday
stop having student loans
what
you get cash app and a lot who's sending
you money cash app oh that's HEB I have
my ATB direct deposit to my cash app so
it gets to me faster Apple cash is
always going out
oh because I used to use Zell but that's
for like utilities and stuff with my
because I I live with my boyfriend and
we like split rent and utilities okay
yeah and Alta
I don't know what is this
thing what is this mobile xfr
Mobile Transfer is that what it is
okay yeah that makes sense to where I
don't know where that's going it might
be from my savings it's one of my
savings accounts scrub-a-doo car
necessary when you're not when you can't
even pay for school come on
oh it just transfers back and forth
transfers back and forth and application
transfers and transfers and transfers
this is an absolute Mass yeah it's a lot
of transformation Starbucks yeah we need
to be doing that again the HEB dollar
two dollars this is all stacking up it's
constant constant constant um
so this goes up yeah so bounce only 102
in your checking account
um
and we need to be spending that money
like that is that what we need to be
doing
I mean I try to leave myself with at
least 150 a week that's my budget a week
on just like groceries and gas you were
spending well more than that
with both the accounts we looked at
combined already yeah and we have more
accounts to go you spell went well
beyond that
all right all right
imprint an HEB card
you get five percent cash back okay I
pay it off then yeah you do 20 yeah but
then you favored Subway it's the most
expensive way to get the food I know I
try not to
I've never had the worst collection of
ingredients ever put in my mouth and
then you favored it which is kind of
like doordash but only in Texas and it's
like a stupid expensive version so again
we're doing twenty dollars towards
I know Subway of all places I was lazy
and yeah yeah lazy and lazy with your
taste buds yeah and you couldn't again
you're doing that but we're deciding to
take out student loans for school
this is one thing but out of everything
that we've talked about it just
continues to stack up to like
like once every other day not once a
week by the way like once every other
day in terms of different purchases not
necessarily all going out to eat but
once every day in terms of stuff that is
both that you did not need to have okay
Barclays I don't I don't use it anymore
yeah that's the one yeah that's the one
that paid off yeah with that loan
well he had a previous balance he did
something and then you paid it off oh I
don't know what it was yeah and then
again why are we doing this bull this is
stupid why do we do this if the
synchrony card for American Eagle we
have a 29 late fee why are we getting
Starbucks why are we doing this bull why
are we doing this bull if we have a late
fee because we're not making a payment I
forgot I rarely use it on auto I forgot
that but I forgot about that I forgot I
rarely use that card what's the point of
even having credit cards if we're
someone who gets late fees
that's not my usual I'm usually on top
of it I rarely use that card well guess
what you also succumbed to 30 interest
on it yeah
I got that a long time ago
what the car yeah the car just stop yeah
why even put money on it if you're not
gonna if you're not gonna pay it off
again that makes you not a credit card
person in that instance
then Ikea so we zero percent finances
from Ikea furniture yeah I'm trying to
pay it off originally
what did you get
furniture for the apartment have you
ever looked at Facebook Marketplace it's
fantastic I did find one thing 37
minimum monthly payment
zero percent interest for now
okay not need to be doing this this is
like the last thing we needed to be
doing
is new furniture and Ikea can be
relatively affordable that's the last
thing you needed to be doing yeah
Bobby I paid 200 a month but I split
that my boy I pay 100 and my boyfriend
pays the other hundred so it's not all
me
so student loans I see between eight
loans 36
386. yes so that's before I put out the
recent twenty thousand so twenty
thousand is the max that's all I'm gonna
pull out I did not want to are those
federals too yes
so you took it from because you decided
you wanted her both
and just spend on whatever we only have
view into one month but because you
wanted to Bull you decided to take your
loans from 50 36 000 to 56 000. what a
choice to make what is this government
job that you want to do what is this
thing that you want to do it's consider
okay so I'm looking at like any job I
get like I'll be fine I get a full-time
job I'm looking at student loans as like
a car payment
like
there's no interest it's a good car
payment it's a nice car
what car payments don't have interest no
I'm just saying like I have a car right
now it's a good car it'll probably last
me a while so I don't have to worry
about that so I'm just looking at like
my student loans as a car payment you
know like I'll pay them in the future
not right now and it's not too much
money what what the what are you
talking about and how in what worlds
fifty thousand dollars not that much
money it is a lot of money where do you
come from is your family rich or
something no then where in the world is
fifty six thousand dollars not a lot of
money well I look at it as a car it's a
nice car
I don't get this analogy that that's how
I look at it
I still don't get it yeah
that's the way I look at it well
okay
but it's something that you know comes
back to me in the future it's an
investment
okay now we could talk about it being an
investment there are investments in
towards in terms of spending money on
the degree now you're taking out
leverage to get the degree you're taking
on Leverage for the degree and yes
technically some degrees and you're
getting an MBA that is a good map what
did you get in your undergrad again
marketing okay so I think in general
sure
maybe especially if it was more like
around thirty thousand dollars but again
you're actively choosing this is money
that could have been going to it even if
you just borrowed half let's just say
for an example you borrowed half
you're you're choosing
to have gratification now
so that you could kick the can down the
road instead of just being a responsible
adult and taking care of yourself
so the this analogy you're using it
doesn't justify these excuses that
you're trying to have uh-huh
feel the impact now I rarely feel the
impact later but it's going to be a
bigger impact yes it's going to be
interesting even if it's only like five
percent
I only have one load I mean one loan
with interest on it it's for like three
percent for now for now for now yeah but
at the end of August these are gonna
have interest all of them well I'm not
gonna have to pay them well not yet once
you graduate well because I wanna I'm
thinking about a PhD but I don't have to
pay for that I don't have to pay they
pay me to go to school
but are you gonna be one of those people
that then because they pay you to go to
school but it's not that much you're
gonna take out loans no no they pay for
everything okay well again you will
still have to pay for this at some point
there will be interest on this oh yes
I'm just hoping that I'll have a
full-time job but are you gonna go to
the first paid PhD for those tend to not
have the return on investment no so I
could teach too so I could teach and
have a full-time job teaching handful
what like be a professor at a like
University and then also have a
full-time job what
so you're gonna work like what 60 80
hours a week
that's what you want to do I don't mind
it
you've never done it no but I have
professors that do it like they they
were they are professors and they also
have like a full-time job
outside of their current job like
there's a lot of professors that do it
you don't even know what you want to do
for a career outside of that because
you're just like I just want a job what
do you want to do I really want to go
into like consumer research I like
yeah that that's why I feel like the PHD
would help because it's research
so being like a market researcher doing
like consumer analytics and stuff like
that
you're 100 doing the PhD
I'm pretty sure because it's only 66
more credits so when would you be done
in total
2026 2027
so I wasn't sure about it but then I saw
it was only 66 credits after your MBA so
I was like why why not and then well so
you could actually start go making money
and like live your life but yeah yeah
because this doesn't have the return on
investment monetarily typically but if
what you wanted to do if you have that
passion for teaching not necessarily
against it as long as you are not taking
out debt to do it yeah no I don't want
to do any more debt like that's my Max
if I'm not getting paid to to go to
school then I'm not going to do it but
most phds pay you if you go full time
what is this car you have
it's a F-150
year 2018.
okay you're so small for a second
but that's very Texan of you I know yeah
there's no debt on it
my parents pay for it okay and it's in
their name yeah okay
and they pay the insurance for now it's
interesting yeah and you're on your
parents health insurance as well yes
it ends at 26.
yep yeah
which is a ways away
um
any other debts
no so that's why I want to take
advantage of this time and like have a
budget do not even taking advantage of
time you decided to take out debt you
should you're right you should be taking
advantage of this time yeah in Stack Up
less debt yeah okay so you um
your boyfriend what does he do he is a
manager on Lackland Air Force Base for
like the videography and photography
okay yeah yeah so he makes money and
he's done in school
are you guys one is your obsession well
because he got his degree in like
photography like a fine arts and
photography but he wants to go back for
cloud computing so he's going to do that
it's time to get certification he should
get certified you know he told me that
too but I don't know yeah anything Tech
I would do like course careers or any
other uh those are the ones that I work
with but or any other uh thing as well
if they want something out of what they
offer okay but because again of my
friend group the person who makes the
most amount of money in my front group
is someone who just has a certification
okay in the tech field versus going and
spending so much money and time in a
four-year degree doesn't make sense yeah
he could just go get this in six months
he should 100 do that either way this
isn't about him I'm just trying to
figure out your living situation okay
got it what's your portion of rent uh I
pay 600. what about utilities and all
that Goods uh about a hundred
including the internet yes
okay
gas how much money are you spending gas
in that big truck for no reason
[Laughter]
probably 40 a week
so
do you not drive much
no
my work is and I work remote and then
the HEB is like 10 minutes away so
173 a month
do you guys uh have like a group grocery
bill no I pay for math huh I pay for my
own groceries okay and he pays for his
own groceries and then you guys cook
supper
yeah well because I'm
I'm on a I'm okay so I have a trainer a
personal trainer and she gives me a meal
plan so I stick to that meal plan he
doesn't like any oatmeal plant so okay
yeah can you do your meal plan for 300 a
month
yeah yeah
okay I think so
you guys split like toilet paper
spending and all that stuff yeah we do
okay then I'm Gonna Give You fifty
dollars for that 300 for groceries
and that's right yes Miss uh Beauty and
all that stuff you have fifty dollars a
month
fifty dollars a month that's for nails
you have fifty dollars a month for all
that crap okay because guess what you
know what's more important than that
right now yeah you getting out of your
bowls and taking care of I'll give you a
hundred okay thank you
it's a toilet paper Nails whatever you
need it's all done at home you're not
paying other people come on come on okay
we're done yeah no more
okay okay any other monthly expenses you
can think of car insurance that's taken
care of from the family health insurance
provides or like therapies or anything
what do we have
okay so I have 180 for the personal
trainer
a month
and then
eighty dollars for class pass
what's that it's like a
so basically you your subscription gives
you a certain amount of credits and you
get to like drop into like Fitness
classes
oh you spent a lot on Fitness yeah but
depending where the budget is I'm
definitely good with that and we
certainly I'm okay with gyms and all
that stuff just depending with where we
are okay our budget will look and then
debt minimum monthly payments right now
is 126 18. it'll be above a thousand
dollars with your student loans okay
code a little bit close to a thousand
but for now
126. it'd be about 8.50 let your
students cooking a month for sure love
no it'll be about 700 a month okay when
you're student loans okay 650 to 700 I'm
guessing Okay
got it now again you did all this
well having going out to eat almost 500
worth of times 500 yeah
having the extra bills of which you know
where are they going 267 dollars gas 128
so that actually fits with kind of what
we were thinking subscriptions hundred
seven dollars of stuff we're cutting
those you don't do them boyfriend can
take care of them you do not do them
anymore uh I forgot one day
what that the Cherry payment it's only
for a couple more months it's
76.79 what is this for
um okay so I got lip injections in
February and I just didn't want to pay
it all and then there was no interest on
it so I'm just doing it monthly
I know I use I used to you I used to use
clarinet a lot
um
that's it I think yeah
six hours for how long oh
I think for a couple more months like
four more months
[Music]
three or four we'll call it the
unbalance yes that sounds about right
[Music]
so your debt is now
202 dollars
you have a good starter emergency fund
okay
all right well it's needed for you to
survive 1 735 and no you don't need to
be doing the uh Apple cash hundred
dollars North 775 Alta 65 Nails 110
Buffalo Exchange 142. uh Zamora 180. oh
that was the personal training I thought
so for a second so I looked at you
immediately and then other Nails 97 we
don't need to be doing that on a monthly
basis okay I usually don't do that
usually just 90.
[Music]
just past month was my birthday
so it's needed to survive on a monthly
basis
and you have three thousand dollars
there's no reason why again some of the
money shouldn't be going to school
there's no reason why you didn't have
the the that you had to take out the
twenty thousand dollars maybe you had to
take out a little
maybe half but not that twenty thousand
dollars no reason why the Cherry
shouldn't have been paid off no reason
that the council uh consolidation loan
shouldn't have been paid off and the uh
Ikea shouldn't be just gone either
because why just Finance ourselves
forever because you need to get in a
situation where you might not be working
as much yeah we don't want minimum
monthly payments
now yeah what do we do
congratulations fantastic proud of you
happy for you you're putting two
thousand dollars from the six thousand
three hundred dollars and leaving it in
there you're taking out
um using it towards the loan 4 300
you're taking out
of your savings yes four thousand three
hundred congratulations and you're
paying off two thousand dollars in the
consolidation five hundred forty six
dollars of the Ikea in 304 dollars in
the Cherry
what do we say take out four thousand
three hundred
I mean you probably don't have to take
that entire out what you have to take
out uh so what you can leave in is three
thousand three hundred seventy nine
dollars and then take out the remainder
and pay those off
and then you'll keep in there three
thousand whatever whatever that was
again okay
the rest go
to paying off the debt and we don't have
to worry about that and that also
minimizes 200 202 dollars of minimum
monthly payments which would be nice
when your income situation is
questionable and then from there you
only follow this budget you only follow
this budget it's not a question until
you get to at least ten thousand dollars
ten thousand hours yep ten thousand
hours is saved up and then from there
that's your emergency fund throughout
the remainder of your Masters in the and
then your PhD everything else that is
coming in that isn't going to what is
needed to survive which will be about
1500 at that point following this budget
all throughout your PhD your boyfriend
getting paid to go out to eat your
boyfriend can pay for whatever whatever
this is what it is this is what it is I
just feel bad because he has way more
debt than me well he can take care of
his own situation tell him to come on
the show and we'll talk about that but I
can only talk about you yeah either way
you're not paying for crap he probably
shouldn't yeah but you are definitely
not paying for crap okay what I will do
after you get ten thousand dollars you
can set a hundred dollars aside on a
monthly basis for fun so you can go
spend 25 a week on Starbucks or whatever
though but that is it everything else
the other about a thousand
a thousand four hundred dollars you're
going to start putting towards the
student loans
you have ten thousand dollars saved up
100 goes to fun here's your budget
outside of that that we already laid on
the screen and we talked about here then
a thousand four hundred dollars is going
to put towards the student loans it's on
a monthly basis
[Music]
that's going to be sixteen thousand
eight hundred dollars meaning your
student loans where you could pay them
even though you're in school yeah oh
you're uh 2027 you said is when you'd be
done yeah and how long would it take to
get to
uh so the first year you'll get to ten
thousand dollars so from now so that's
2024 meaning
so 2024
2025 2026
2027 so four years of of 16 800 should
go to your student loans so like don't
even think about a house
many times dude
come on I just hate paying rent I'd
rather like yes no no I get you I get
you but are you guys going to be settled
in San Antonio are you staying there
forever
I think for now what's for now
I mean it's home this is not a good job
over there and like I know it I know the
area once you know what you're going to
be we can talk about that okay okay so
I'd get in contact with your student
loan provider
the student loans that you've taken out
whatever is above four percent that's
what we're paying down whatever is
beneath four percent you can wait until
those kick in and pay minimum three
payments until they're paid off and then
everything on top once those above four
percents are paid off sure start
throwing that towards a home fund and
you can start saving up for a down
payment through what you should be able
to save up until you're done with PhD
and everything
if the income stays the same will the
income stay the same I'm hoping to go up
oh okay well if it just stays the same
you should have 67 200 plus the ten
thousand dollars you saved up but that's
wait that's saved up from this budget
that is what would be saved not
necessarily saved up but put towards the
student loans and and say so that's
either way that's your extra money by
the end of PhD if income stays the same
does not decrease
um that's what should be put towards
anything after the ten thousand hours of
saved up and these credit cards are paid
off okay so some of that will go towards
anything above four percent on the
student loans and then some of it can go
towards the saving up for the home
purchase
well this is what I would do so let's do
it again you have the budget
now what you do from here is you pull
money from your savings and you pay off
consolidation the Ikea and the Cherry
everything that's left in there you go
aggressive aggressive following my
budget until you have 10 000 hours saved
up total in your emergency fund then you
can have 100 hours a month for fun 25 a
week and what you're doing from there is
you're aggressively everything outside
of that pain down uh the student loans
that will be five percent or higher four
percent or higher and you're going to
contact them and see what they will
because it's going to mark them at zero
percent on the website so you want to
get some insight into that awesome now
once you're done it's not really zero
percent
not really zero percent if it's seven
percent
zero percent forever zero percent
because you're in school still and
because it's still paused yeah no it's
gonna it's gonna range from likely three
to six percent so you're doing the ones
that are above four percent okay and
then I did have a question
well okay let me get through the plan
first okay okay so you've done that
you've you've passed ten thousand
dollars you've paid off your credit
cards and you've uh paid off any student
loans that will be above four percent
from there you can follow the 50 30 20
rule 50 on needs 30 on fun if you want
and 20 on investing I don't want
everything to go towards the home I want
you to minimum starting a year from now
minimum be maxing out your Roth IRA is 6
500 a year you need to be doing that
because you're in your early 20s and we
want to take advantage of that snowball
that is compound growth going into the
rest of your life okay so and then yes
anything you can save outside of that uh
anything you can say about the side of
that to get towards the down payment of
a house yeah I do that and you said you
have an employer match as well I would
take that because that's a hundred
percent return on your money there's no
reason not to take that so you should
start taking that now yeah yeah what was
your question
uh close
where does that fall in the budget you
already have clothes yeah I do but
you're fine yeah sometimes I just want
to buy one thing yeah sometimes you want
to if your wants I don't give again once
you get to the point where I said 50 30
20. you can spend 30 on want put that in
your clothes you don't get to do that
until now the budget I laid out here
rent utilities gas groceries toll paper
money trainer cross pass and I'm giving
you that stuff I'm allowing you to do
that congratulations into that middle
monthly payments nothing to spend
outside of that that's your budget
there's nothing else not a single penny
unless an emergency pops up but that
goes from your emergency fund anyway
okay so no I don't give if you want to
buy something for clothes okay I don't
care if you want to get lip injections
you're not doing it it's not happening
you're getting your life in order and
you're going to live the most amazing
life ever you're gonna I think out of
many people who've been here you're in
the position where you're going to be
wealthy in your 30s I'm hoping it's
going to be incredible but that's if you
follow this and stop going down this
path of stupid stop taking out student
loans okay we want to have the both
right now because we want to buy clothes
and get lip injections no I don't give
it you're taking care of your life so
you can live an amazing life later okay
deal deal
lip injections
it's like a once a year thing
it makes me feel better I don't care you
will feel better not having debt bad
debt yeah stop okay have all the lip
injections get weekly injections for all
I care once this is taken care of
definitely not I don't care you can do
whatever you want but you're not doing
it now okay it all this is the budget if
you're gonna have this then no oh I'm
not gonna do high fast okay that's just
like a once a year thing that I think of
just stop and your dude your Situation's
in a good spot because you're paying off
this debt immediately and then saving up
the fully funded emergence fund within a
year a year is nothing okay yeah just do
it okay but after that year I can't
after a year you can fit it into your
wants okay cool but do not go over that
you're in your minimum accidental Roth
IRA and then you want to save up as much
money as you want so you can get that
house because you want to get the house
I do want to get the house so prioritize
things be an adult grow up man I'm
trying okay yeah
what do you think what will you actually
do I want to put yourself in your
realistic shoes
what will you actually do I'm confident
that I'll follow the budget I'm pretty
disciplined I'm a disciplined person for
the most part I think I am okay I work
hard
okay
I just needed a plan I needed guidance
because I was going off of me admit had
my budget way higher
so
I needed that I needed discipline so I
think I will be able to follow it
lip injections I don't know no because
if you don't cut cut the things when's
your next injection needed not till
March next year you should be fine you
should have your fully funded emergency
fund by then okay if you actually follow
this plan okay
March of this year
okay
if you're not good by then then
something went wrong and you emergencies
are okay okay those I can respect well
absolutely but
it makes no sense for you to be sitting
on 6 300 when you're losing 10 on two
thousand dollars for the consolidation
that's stupid that's stupid
I don't know take care of that I mean
just take care of these tests okay
did you have a chance to be a
multi-multi multi-millionaire if you
start maxing out your Roth IRA next year
and we're looking towards this home
purchase you're going to be fantastic
but not if we're just prioritizing and I
want to get a piece of clothes yeah I
don't care if you want to get a piece of
clothing
I don't give a take care of yourself be
an adult yeah I will give me more
thoughts what do you think
um no I think I'll follow it I think
it's a good budget it doesn't I don't
know the the class pass and the gym
membership I was scared those had to go
so I'm happy they're there
um food I think I can make it work
I don't know I feel like I can
feel if you if you can't make the food
work you have to cut from your nails
um you have to cut from your nails or
get rid of class pass something like
that you have to maneuver some of those
things around if you cannot get your
food under 300 if it's always under 400
then you have to get rid of cast
uh class pass and uh 80 hours of toilet
paper nails and whatever one last thing
we're moving to a different apartment so
my rent's gonna go up by like 100.
that's it
okay then you just have to calculate on
that budget it's just going to extend
you know an extra thousand two hundred
it's gonna extend
uh how long that takes for the emergency
fund okay that is what it is you already
signed right
don't do it if you haven't already
signed there's no reason to
yeah and it's not what's wrong with the
price it's not it's like what's right
it's a thousand two hundred The Other
Place what's the rent gonna go up to oh
we're going to a thousand three hundred
and what oh what is it right now the
place you're at right now what would
your rent go to from 600 to what
oh it would go up to 700 no it wouldn't
yeah it's going up by 100. so either way
it's going to put 500 yeah either way
it's good okay you can move you can move
yeah and put that in a budget and that's
fine yeah that's fine you can afford it
we just want more and more money to go
towards uh uh saving up the fully funded
emergency fund and then throwing down on
that anything about four percent
okay put that okay
I think I do it I could do it anything
else any more surprises
trying to think
no
okay we'll follow up in here then and
that should that you should start you
should
be contributing to a Roth IRA and you
should be all the debt should be gone
you should have a fully funded emergency
fund and you should start attacking
student loans good yeah that sounds good
for Mel I think she can really have an
amazing
she really buckles down and takes care
of this what's worrying me is she's just
kind of half-assing things you know
spending all that money when a lot of it
could have been just going to funding
school so hammer Financial score right
now spending within a budget I mean
because she's spending money that should
be going to school I have no choice but
to give it to zero out of ten and that
it's not the worst debts we've ever seen
by far three out of ten retirement
there's nothing yet zero out of ten
emergency fund sure a lot of what she
saved up right now is gonna go to paying
off a lot of the debts but she has a
strong start there six out of ten real
estate she'll get there but you know
only 22 right now it's reasonable that
that is a zero out of ten Aggregates
total Hammer Financial score two out of
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