A Texas man used to spend $9,000 a month partying and now refuses to work more than 15 hours a week to pay off his debts

A Texas man used to spend $9,000 a month partying and now refuses to work more than 15 hours a week to pay off his debts

Some young consumers can be reckless with their money, but if that behavior affects their credit score, it could have devastating long-term consequences.

That’s the concern of Myles, a 23-year-old from Texas who appeared on Caleb Hammer’s YouTube show “Financial Audit.” Apparently his finances are so bad that Hammer fears he might come after them bankruptcy.

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“You will die under a broken bridge,” he said to his guest.

Like many young Americans, poor planning, lack of financial knowledge and misplaced priorities are putting this young man’s financial future at risk.

Childish financial decisions

Myles seems to make poor decisions in almost every aspect of his personal finances: income, debt, spending, saving, and paying taxes.

His income dropped significantly after he left a lucrative job in Pennsylvania. Myles reports that his monthly income in the home building industry was between $10,000 and $12,000 per month. His friend convinced him to move to Austin to work on a new project, but it never materialized. Meanwhile, he had exhausted his $30,000 emergency savings fund.

Myles now earns about $3,500 per month as a field auditor for financial institutions.

Unfortunately, as a high earner, he has developed some poor spending habits. He admits he didn’t have a solid strategy for dealing with taxes because he always had excess capital and spent up to $9,000 a month on trips and parties.

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Despite a decline in income, Myles struggled to break some of these habits. Hammer estimates that about 30 to 35 percent of his monthly budget could be better spent. He now owes $5,245 on a credit card at a 30% interest rate.

To make matters worse, he refuses to work more than 15 hours a week and trains Jiu Jitsu six hours a day, which he describes as “almost an addiction at this point.”

Hammer was shocked by these inexplicable financial decisions.

“What are you?! You’re not a baby! What are you doing?!” he exclaimed. “You build up debt. It doesn’t work!”

Luckily, by the end of the episode, Myles seemed ready to work more hours.

Financial literacy crisis

Financial illiteracy is estimated to cost Americans an amount an average of $1,506 in 2023, according to a survey by the National Financial Educators Council. About 61% reported losses of $500 or more, while 22% said they lost $2,500 or more due to gaps in financial knowledge.

This lack of financial knowledge comes at a time when the economy is under increasing stress. Interest charges and that Cost of living remain elevated. Older Americans, perhaps have some savings but younger ones, like Myles, get into debt.

Generation Z saw their credit card balances Increase 62% between March 2022 and February 2024, Fortune said, citing data from Credit Karma.

Fortunately, there is hope that this crisis will ease. Around 30% of Generation Z Americans surveyed by Ramsey’s team in 2022 said they had done so took a financial literacy course, higher than any other generation in the survey. Meanwhile, 48% of young Americans say social media has motivated them to do so Adopt better financial habits by participating in trends such as “loud budgeting” And “Years without a purchase“according to Credit Karma.

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This article is for informational purposes only and should not be construed as advice. The provision is made without any guarantee.

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