This Has Never Happened Before | Financial Audit
Quick Read
Summary
Takeaways
- ❖Kelsey, a 29-year-old 911 dispatcher, has $57,000 in debt on a $4,200 net monthly income.
- ❖She attributes her financial issues to an ex-boyfriend's habits, a 'turning 30' crisis, and a desire for an acting career.
- ❖She opened a Capital One card for a Taylor Swift giveaway and used credit cards for tuition and non-essentials.
- ❖Her rent and basic utilities consume 47% of her current income, which would rise to 55% with her planned pay cut.
- ❖She is pursuing a graduate crime analyst certificate, which is projected to be a pay cut from her current dispatcher role.
- ❖Her acting 'opportunity' was an unpaid background role in an indie film in LA, which she flew to a week after her breakup.
- ❖She spends an average of 4.5 hours daily on TikTok, 2.5 hours on Instagram and YouTube, and frequently uses DoorDash due to perceived safety concerns and 'pickiness'.
- ❖Her mother, an accountant, created a budget for her three years prior, which Kelsey admits she didn't follow.
- ❖The host recommends selling her expensive car, downgrading her living situation, and working overtime to pay off debt within 1.5-2 years.
Insights
1Blaming External Factors for Personal Financial Mismanagement
Kelsey repeatedly attributes her financial struggles to her ex-boyfriend's spending habits, a 'turning 30' crisis, and irrational fears (e.g., DoorDashing due to fear of walking at night). The host dismisses these as coping mechanisms, emphasizing that her financial choices are her own responsibility, especially months after the breakup and with a budget provided by her accountant mother.
Guest: 'I kind of blame like my ex for like giving me a bunch of bad habits.' () Host: 'You're blaming someone you weren't even that... you're blaming him 5 months later with you eating out.' (, ) Guest: 'I also was like having like a crisis last year of like almost turning 30.' () Host: 'That was last year. We're 3 months into this year.' () Guest: 'I don't know. I just like they sound easy to manipulate.' () Host: 'You are a broken individual. You do not have to Door Dash. And that is a safe area.' ()
2Pursuing Career Paths with Detrimental Financial Outcomes
Kelsey is pursuing a graduate crime analyst certificate, which the host reveals is projected to be a pay cut from her current dispatcher salary, with a median income of $56-57k (compared to her current $68k with overtime). She also spent money to fly to LA for an unpaid background acting role, an unrealistic aspiration given her financial state.
Host: 'Median [crime analyst pay] it's about $56 to $57k... your median actually is a pay cut.' () Guest: 'I went to LA in November, like a week after I broke up with him.' () Host: 'An opportunity to be background in a movie. What? What? In an indie film? Were you paid? No. Exactly.' ()
3Lack of Budgeting and Uncontrolled Spending Habits
Despite her mother, an accountant, creating a budget for her, Kelsey admits she doesn't use it, 'swipes and taps without actually looking,' and gets 'overwhelmed.' Her spending is twice her income in some months, leading to rapidly accumulating credit card debt, balance transfers, and fees.
Host: 'Your mom's an accountant. She has made you a budget.' () Guest: 'I just kind of like swipe and tap without actually looking. Like I get like when I get really overwhelmed I just like stop looking at my stuff.' () Host: 'Your spending was $10,300. So, shut the up. Shut the up. Shut the up. You can't tell me I'm just not spending on here. You will. Your spending is egregious. It is twice what you make.' ()
4Unwillingness to Make Necessary Sacrifices
Kelsey refuses to downgrade her 1,000 sq ft apartment, sell her new Toyota Corolla Cross (which has a $516 monthly payment), or work overtime in her current higher-paying job, despite her financial distress. She prioritizes comfort and 'wants' over financial recovery.
Host: 'You're not willing to move somewhere else because you're at a place that's 1,000 square feet, I'm being told. And you refuse to move to somewhere smaller.' () Guest: 'It's a nice area.' () Host: 'This is too expensive of a car for you.' () Guest: 'Is that like really the only option [to sell the car]?' () Host: 'You don't sacrifice anything in your entire life.' ()
Bottom Line
The guest's reliance on '0% APR' credit cards for tuition and balance transfers creates a false sense of security, masking her underlying spending issues and leading to massive interest accrual once promotional periods end.
Many people fall into this trap, using promotional offers without addressing the root cause of overspending, ultimately worsening their debt situation.
Educate consumers on the long-term risks of 0% APR cards if spending habits aren't fundamentally changed, and promote alternative financing for education like private student loans over high-interest credit cards.
The guest's high screen time on social media (4.5 hours on TikTok daily) and consumption of true crime content contribute to an 'irrational fear' mindset, impacting her financial decisions (e.g., DoorDashing instead of walking in safe areas).
Media consumption can significantly influence perceived risks and lead to financially detrimental behaviors, such as overspending on convenience services due to unfounded fears.
Develop tools or educational content that helps individuals critically assess the influence of media on their spending habits and decision-making, promoting a more balanced and financially conscious perspective.
Lessons
- Immediately sell the Toyota Corolla Cross and purchase a reliable, affordable used car (around $10,000) to significantly reduce debt and monthly payments.
- Downgrade living situation to a more affordable apartment after the current lease ends in November to free up substantial income for debt repayment.
- Commit to working consistent overtime in the current higher-paying dispatcher role for the next 1.5-2 years, prioritizing debt payoff over a lower-paying career change.
- Implement a strict budget using a reliable app like Dollarise, actively tracking every expense and allocating all leftover funds directly to high-interest debt.
- Address the fraud issue on the Walmart card by making phone calls during business hours, utilizing PTO if necessary, to protect credit score and financial identity.
Kelsey's Debt Annihilation Playbook
**Phase 1: Immediate Debt Reduction (Next 6 months)**: Sell the Toyota Corolla Cross, using the proceeds to pay down credit card debt. Purchase a $10,000 used car with cash or a small, manageable loan. Avoid all non-essential spending, including DoorDash, excessive lifts, and impulse purchases.
**Phase 2: Income Maximization & Budget Adherence (Next 1-2 years)**: Maintain current dispatcher job and actively seek overtime shifts to maximize income. Stick to a strict budget (e.g., $300/month for groceries using a meal plan, $100 for personal care, $159 for fitness). Allocate all surplus income to the highest interest credit card debt first.
**Phase 3: Lifestyle Adjustment & Long-Term Planning (After 2 years)**: Once the current lease ends in November, move to a significantly more affordable living situation. Re-evaluate career options, ensuring any new role offers lateral or upward pay mobility, not a pay cut. Build a 3-6 month emergency fund and continue investing in retirement.
**Phase 4: Behavioral Change & Accountability (Ongoing)**: Actively use a budgeting app like Dollarise, reviewing spending daily. Challenge coping mechanisms and external blame, taking full responsibility for financial decisions. Prioritize financial health over 'wants' and unrealistic aspirations like an unpaid acting career.
Notable Moments
The host reveals Kelsey's mother, an accountant, made her a budget three years ago, which Kelsey admits she didn't follow.
This highlights a profound lack of personal responsibility and a disregard for readily available financial guidance, underscoring the self-inflicted nature of her debt.
Kelsey's justification for DoorDashing in downtown Austin (a safe, walkable area) is 'it was dark' and she's 'not from here,' despite being able to walk to multiple restaurants.
This exemplifies her pattern of irrational fears and prioritizing convenience (and cost) over practical, financially sound decisions, linking her media consumption habits to her spending.
Kelsey opened a Capital One credit card solely for a chance to win Taylor Swift tickets in a giveaway, which she did not win.
This illustrates an extreme example of opening credit for frivolous reasons, demonstrating a severe lack of understanding of financial tools and their purpose.
Quotes
"You opened a Capital One credit card just for the chance of a giveaway? Wasn't even to buy the tickets. What is wrong with you?"
"You're blaming someone you weren't even that... you're blaming him 5 months later with you eating out. What are we doing? What kind of cope is that?"
"Your mom's an accountant. She has made you a budget. If your mom has made you a budget, you not following that is on you."
"Your spending is egregious. It is twice what you make. Twice what you make. You will rack it up at some point."
"No one on this show has ever been through bankruptcy until they've been through bankruptcy. No one has ever missed the payment until they've missed the payment."
Q&A
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