@@NickVetter it's not a lot for eating out but that buys you a lot of groceries. I spend $500 a month to feed two people in NJ, and I make pretty pricey dishes like shrimp stuff salmon, grilled peaches with fried goat cheese, steaks, slow cooked cuban beef, etc.
@@NickVetter If you can afford it of course go for it. But as Caleb pointed out she can't if she wants to hit these other goals. But compared to the average spending of people on groceries $1200 is A LOT.
We have 800 for 4 (but they are 3 and 5). With inflation and some splurging we probably do over 1000. That’s with a CSA and some quality meat. But we also have $200 budgeted to eating out. But we are out of debt and make more money. If I were in her shoes I would budget $600 or so.
@@choreomaniac exactly! I'm clueless as to how we could spend an extra $600 since we have plenty for us with enough to feed friends every now and then. And it's not like we live in the middle of nowhere -- we're in the heart of Portland OR. Maybe Caleb needs to start asking for grocery receipts. The only thing I can think of is if there's a LOT of alcohol on there or something like that?
@@imjoshellis it’s very easy to overspend in grocery. Could be Whole Foods or the like with all organic or other special dietary need like Keto or Gluten free. You can buy a $9 jar of marinara or a $2 jar. A budget and a plan would definitely save a lot. They could probably take two weeks and eat only what’s in their pantry and save a ton this month. I could do the same.
Fr though. I stretched $100 to last me a month one time when I didn't feel like driving to the grocery store. $1200 is dang near the mortgage on the house I'm buying. Couldn't imagine spending that much on food.
It sounds like she doesn't actually owe the IRS. She owes tax debt but it's to the state. IRS isn't garnishing people right now. Especially not for $1700 debts.
Man, it’s crazy how these expenses can’t be owned up to. Instead of “yeah, I wasted $27 on Starbucks, that was a bad decision,” it’s “BuT I WaS DrIvInG HoMe FrOm OhIo!!”.
Right! There are plenty of gas station chains that have decent enough swill for half the cost on a road trip. Or, pack a thermos and brew a couple of pots in the hotel room.
She pays all the bills and buys groceries and he pays the mortgage. They're not married. So they spend equal amounts and he gets a house and she gets nothing.
I live in Pittsburgh, PA and I spend $600 a month on groceries for 2 adults. She needs to go to Aldi’s and Walmart/Target. Giant is as expensive as Whole Foods unfortunately.
Funny enough I go to Whole Foods for two things I can think of right now. Whole peppercorns and canned beans. Their brand is considerably cheaper than the beans in my supermarkets.
I would have just put it on a credit card and paid it off ASAP. She spends way too much money and if she just tightened her belt for a few weeks and concentrated wholeheartedly she could have had this paid off very quickly, but now this IRS debt will hang over her head in chunks of money every month. The IRS is one entity I don't play around with as they can make your life a living hell.
@Fourth Prince 10 Lolol same, I got an envelope from the IRS that I wasn't expecting and when I finally opened it it was just my online PIN or something 😂
I started literally clapping when she said she was putting that $5K I to savings. Good for you. A sign of financial maturity you previously did not have. Growth is the goal and you’re meeting it
4:35 she never answered who actually owns the shed or apartment, she just said the income from it goes into a joint account, which if they're not married, is a bad idea...
@@Crijoe well we don’t know how much that mortgage is and she essentially only pays utilities and groceries. If she wasn’t spending 1200 on groceries I’m sure the discrepancy between spending for the house wouldn’t be so big.
Caleb, DON'T EVER CHANGE! You are genuine, compassionate and so incredibly funny, I have learned so much from your channel and it's nice to know good people like exist. 👍
I like the way you bring people back to the goal they say at the start! It's so easy to think you care about your financial goals until you're confronted with the reality of your bank/card statements
It's not the IRS garnishing her, it's the local municipality that she lives in in PA. PA Per Capita Tax is stupid, I don't know of any other state that has it! I work for a payroll company and garnishment for this tax happens frequently. Make sure you pay this when you get the bill in the mail, there are a lot more fees and interest if you wait and get garnished.
@@Rudy1150 it depends what municipality you live, they are all different. Some municipalities are a flat dollar amount, and some are income based. The township I live in is a flat $350 per adult. The bills are mailed out July 1. It's really just a money maker for the municipalities. PA also has a state income tax of 3.07% and local income tax rate of anywhere from 1-2% (rate depends on your municipality). And we also have pretty high real estate taxes, depending on which school district you live in (for example - $6000 annually on a $300,000 house). In addition, there is a 6% sales tax. As you can see, taxes in PA are outrageous!
A few thoughts here: Regarding the tax liability, my profession is working with taxes and taxing authorities. I am betting that if she called up the taxing authority and told them that she had the money to full pay the liability, they would accept, instead of making her wait through all the wage garnishments. Secondly, and I hope this doesn't come off as insulting, I really wonder if she wants to improve her life/marry her boyfriend. She seems to have an excuse for every expense, especially the $1200 food budget and even the though of cutting that down by $500 a month seemed to be insulting. It's great to have goals of wanting to own a property but that seems so far in the future. Is there even a timeline for when she will have enough saved up like her boyfriend required? I don't want to go all Uncle Dave on her but she needs a written budget asap. This idea of her not checking on how much she spends is exactly the reason why she is living paycheck to paycheck.
I grew up on food stamps, our food budget was $440 for 4 people. We made it work except for the month of December, when we always needed more lol. I know thanks to inflation food costs more now, but this is totally possible. It is just not fun. I wanted cherries so much, but I could only afford bananas/apples/oranges.
Don't attack me. I grew up loving fruit. So I decided that I would cut down on beer or those craft beers to have what turned out to be two pounds of peaches. I'm talking about me, not your choices. So it killed me when I saw fruit be so much more expensive for fruit I love. I was crazy excited for when I could get pineapple. I'm learning.
Yes, we do the same thing. Cut out the soda for tea, or drink water, and get those cherries. We do the same thing with temporarily skipping coffee or meat as well.
@@breannahardwick5719 I spend over $300 per month just for myself and I am not splurging at all. Eggs, meat and some fruit has gone up so much I would have to cut them out completely to squeeze my budget and I'm not ready to do that.
Wow. We live in Hawaii and spend about $1k for 2 people because food is very expensive. But we also make $200k+ between both of us! And I still feel like we can’t afford the grocery cost. $1200 is crazy
That’s still so much! Wow! I’d do so well if I stopped helping people out. I need someone to go around and slap my hand when asked to borrow money lol. Hawaii is so pretty!
Putting the 5000 into saving instead of spending is a great first step. I feel like a no spend month could help her break the habit. Write everything down you wanted to buy during that month and at the end of the month evaluate what’s really necessary. Then look for cheaper or second hand options 😉
I would take that $5000 and put it towards the car debt. Its money she was gifted from a past car mistake, it only makes sense to use it to offset her current car and the interest it came with. Once the car is paid off, she could lower insurance if it makes sense, and her garnishes will be over at the same time, and she will have better cash flow.
I’d say to do that in part. Keep 1000 or 2000 for emergencies. Otherwise she’ll go back into the debt cycle if anything happens. She also had a vet bill on one of those cards and pet emergency aren’t that rare 😅
this was actually a really surprisingly uplifting video! with her initial resistance I expected not much to get through to her with her habits but it's really cool to see someone take advice
I would give ANYTHING to have an Aldi in San Antonio. People hate on it, but their prices are so reasonable. The closest one to us is 1.5 hours away, can't even justify it now with the price of gas!
The biggest problem with a "Wage Garnishment" is that it probably shows up in Public Records and is listed as DEROGATORY in the credit file And those usually last for 7 years, like Bankruptcies It's only important if you are also focused on having a good FICO score. But still, you should avoid those entries like the plague
Another negative impact of having a garnishment is that it demonstrates to your employer that you are extremely irresponsible - which can impact upward mobility and/or make you a candidate for layoff if layoffs become necessary.
In this country the average personal income is $37,000.Average household income is $53,000. Most people don't know these figures and imagine their incomes are below average when they're actually above average.They want to excuse their poor money management by saying that they have low income when they actually make average or above average wages.
@@GrantValdes Well not in many major cities that's for sure. But since its what the average parson is living on it is obviously livable. Many Americans pay little attention to their budgets or cash flow and amass huge amounts of debt because of it.
$1,200 on groceries is fucking wild for a couple .. that’s $300 a WEEK 😖 I can understand that bill for a big ass family but not for two ass people. Between me and my family member it’s like only $350 a month and I buy in bulk and plan our meals and make food stretch to not go to waste. She needs to watch videos on groceries and meal planning. That $5,000 check is NOT going to her savings. I can feel it. She made all that talk about depositing it in her account and then admitted to it not even getting deposited yet 😒 if she wants to get married and prove she’s financially literate to her partner she has a lot of work to do
After listening I really have hope for her. She's started unraveling the mess already and if she sticks with it she has both personal goals and external incentives to do well.
Baby shower needs an amount put on this. Sounds like she's funding the whole thing. My girlfriend will spend all her money on gifts for people when she doesnt have an emergency fund. Frustrating but I find alot of people have this weakeness.
It makes total sense. Do you understand how money works in a marriage and more importantly in a divorce?? His credit will be affected by any of her joint spending. He probably wants to get married but not get weighed down by a spouse with lousy spending habits and the IRS after her.
$1,200 on groceries for 2 people is crazy! I spend $400 per month for my family of 4 and we eat well. I don’t use coupons, but I do try and buy when things are on sale and stock up. I’m really just buying meats and fresh produce, & dairy. My sides I get from my pantry, like rice or beans. Veggies I typically buy frozen. You can save a lot when not buying processed foods, sodas, cookies, chips, etc. I stick to the perimeter of the grocery store for food.
My own personal grocery budget is $100 every 2 weeks which I am about to increase a bit because of inflation. Keep in mind I'm eating almost 2600 a day for a reverse diet. So I eat a lot lol. $1200 is insane unless you're doing super bougie foods on the daily. The grocery bill being cut down will be a huge help in itself. Great video. She lives close to my hometown area.
This happened to me for 3 months. My wages were garnished at about 10% a paycheck. My paychecks are huge since I do OT and I was paying about 400-500 every two weeks that’s about 1000 a month. I thank God that my job is so generous with OT that I bust my ass to get it paid quickly and worked extra so I wouldn’t notice a huge change in life style.
There is no way 2 people eat $1200/month in groceries. Unless it’s the healthiest, overpriced, organic, boujee food you can possibly get. She goes out to eat more than she admits. My gf and I are spending $200/month on groceries and we eat burgers, chicken dishes, soups, pastas, etc.
I agree she’s ordering food and using delivery service. For $300 she can buy in bulk and not get groceries for like 2-3 weeks if not more if she meal plans and cooks her food often
Damn, where do u shop at 200/ month for 2 people? I spend around 400 for 2 for the month and i thought that was good! One pack of chicken is now $15-20 here!
I appreciate the interviews with more financially knowledgeable people with more complex issues, I understand they are less likely to have problems. I am tired of 22 yr Olds that say retiring is not "like their world view man"
Lol: "you need to save 25k for us to get married" Also: We have convoluted systems of paying for things between the two of us and already own property between us
This!! Why aren’t more people talking about this? I’m so curious how much that mortgage is. Because if it’s anything less than 1,000 and she’s paying for all the food and utilities I feel like she’s being taken advantage of. She likes to cook. How are you going to put a stipulation on getting married then put her in a financial position where she can’t get ahead? Sounds like she’s doing the wife thing without the home equity.
I would never ask someone to do that - marriage is a partnership. My husband and I had nothing before we were married, we now have really good jobs and an emergency fund. Being true partners did that for us. I would have walked away if he asked me to save $25k just to propose LOL
@@user-ry1bn7yy1q that was my thoughts exactly! And to me it sounded like HE owned the property, so hes building the equity and if they never get married, he gets all the $. Meanwhile shes footing the bills that dont build equity like food & utilities.
If she follows the plan she should have ~15 k at the end of the year and not just 10 right- since she is getting the check. Another option would be to put the check towards the car and pay off the car a few months earlier. It would save her a few months of interest payments and increase her monthly cash flow sooner.
I'm trying to figure out how to cut down my $800 monthly grocery budget for a family of 4. 😬 $1200 is definitely the highest I've heard of for 2; unless there are some extreme health and fitness goals that are priority, I don't see how that's even possible with cooking meals at home. 😭
Also, this is the 2nd video I’ve seen where people are leaving balances on a credit card to build their credit…and I don’t think that’s true. I thought you’d want the balance to be reported to the credit bureaus so they can show it’s active and you’re responsible but you don’t have to risk paying interest to do that. Buy something on the card, wait til you receive the statement, pay in full a few days after and it will still be reported to the credit bureaus. That has worked for me.
I dont get it at all. This seems like an excuse people are making or they really dont understand money and credit. The rewards of the credit cards are 1-2% of that interest you are paying. And just paying your stuff off ontime and not missing a payment is so much more important. I have had friends say "at least i get points". what? lol.
I was on the same income. In 6 months i was able to save up 12k after hard budgeting. She can do it! It's a small goal her bf set up for her but it will benefit her for the rest of her life.
I'm in LA groceries in CA is expensive for 3 is about 600. One being a teenage boy. PA is much cheaper so 1200 is lot of food. Yikes she is subsidize her boyfriend living. She is taking more living expenses while boyfriend is getting the benefit of owning property. It's better for splitting food/utilities and she pays "rent". I would like to she the receipt for her groceries. 1200 is ridiculous.
Someone else said it here in the comments... but i would love to see what a grocery receipt looks like for a month. I assume to spend $1200 a month it is plenty of convenience foods like drinks, snacks, and many things that are not part of a "recipe". I love to cook and the ingredients part of the grocery bill is not the expensive part. Also, saying you love to cook and that's why expenses are so high and then seeing pizza take out is funny. If you love to cook learn to make a pizza dough from yeast and flour. 2 cans of tomato, Italian seasoning, and $8 worth of cheese is going to taste better and be healthier.
Depends on whether you go down the grocery aisles throwing anything you want into the cart or you actually make a list after checking your pantry, fridge and freezer.
I sold my car and have no car payment too. Lol but I do want to buy a car next year. For cash, about $5k but I need to find a mechanic to come with me!
Easily the best advice Caleb she has probably ever got financially. "Stop spending money on BS" vs her "But i have been cutting back". So many excuses why she spends MORE than her salary. Its a fact that she was at first not willing to believe. Not really sure she will follow through.
You were right, I did enjoy todays video. I know it’s more difficult, but I’m curious to see what exactly that $1200 in groceries is going towards. And what the makeup of her $800 in bills is. This would require you to have a 1 month or longer pipeline where people save receipts etc. Perhaps in a month you can look back at people and see where they have come. I’m curious if she gets down to $700, and what she spends the $700 on.
One of The only things I don’t like about these videos is the ragging on car loans like they’re bad. 9300 car loan on a 60k base salary is okay to have if you’ve properly budgeted
Not saying that you’re boring but I love falling asleep to your videos.. I fall asleep after 2 minutes but then I rewatch it again after I wake up lmao
This lady is in denial. And it's sad because she has a much higher income than the average American (will double if she gets married) and relatively limited debt. But she laughs off wage garnishment, a 1200 dollar a month food bill, and a car note. Caleb is much more composed than I'd be.
I don't even have a concept of how much food it would take at Aldi's to get to $300 per week If I get to $50, it fills up the cart I couldn't even fit $300 worth of groceries in my minivan! And I was raised in Hazelton, PA We were raised on meatloaf, mashed potatoes, sliced carrots, and maybe a milk pie for dessert Dirt poor but never felt like that
Man she really like to down play her spending habits. She would also praise herself with anything no matter how small the improvement... 😆 now I see why her bf has a stipulations before tying the knot.
$1200 a month is like, 4 times what my wife and I allocate for food. And even on a heavy month it’s maybe like $450. And it’s not like we’re eating rice and beans. How is she buying that much in groceries??
Agreed. Average for most people is like $200/month on groceries if they're not eating out, and that's really decent eating rather than just cheap pasta. So for a family of 2 400/mo is normal. I realize she's in PA which is an expensive state but jesus that's a lot. $1200/mo is basically the suggested budget of *6* people. I have no clue how they even spend that much.
@@BlackPaladin2 Pennsylvania may be expensive but I don't think $1200 a month expensive. Maybe depends on where she lives. I'm in western PA, Pittsburgh.
@@paulstabs yeah forreal! Unless they eat a lot of gourmet meals. Or they could also shop at big box stores but that's still a lot just thinking about it.
"Im spending $1200 a month on food. I cant starve!" Honey. Look in the mirror. You're doing the opposite of starving. I bet of you cut to $600 a month you'd still be able to overfeed
For the past 5 year before inflation hit, I spent about $360 a month for 2 people. I spent $200 a month at Aldi's & $160 at Walmart for anything that couldnt be bought at Aldi's. Chicken drumsticks, rice, beans, pasta, bread, ground beef, oatmeal, milk, & eggs are my mainstays.
A FICO score of 667 is still in the range of "Subprime" She needs to also focus on getting to 750 plus Which is very doable with the right steps Regardless of Dave Ramsey's concepts You need a good FICO SCORE to get good insurance rates, and just about everything else in the "real world"
Oh man... I live not far from this guest. My partner and I pay $800 per month on groceries and sundries. We never go out to eat. We eat like royalty. I'm talking charcuteries with fancy brie, fresh berries out of season, premium meats... edit: unless one has a special diet (like for celiac or dairy intolerance), or they're including pet food, then I can't imagine what they're spending all that money on
I buy all of my groceries from Whole Foods and only buy organic! I spend $300 to $400 a month! I don’t know how she’s spending that much and I also live in an expensive city!
I think his advice is sometimes. He approves spending on a gym! Totally a luxury that is stupid to have if you’re in debt/ trying to save. Walking is free. Push-ups are free. Etc. RU-vid workout videos are free with internet. His no eating out is very restrictive too.
We pay 800 for 2 adults and 1 kid ..... what the hell they eating? Also is he paying the house he owns and she pays for his food? Sounds like he's in the winning position here.....
Let me preface this by saying, I am a huge snob when it comes to food. Absolute prick about it honestly, I spent years as a chef, I refuse to eat food that isnt great. But $1200 a MONTH FOR TWO PEOPLE? My wife and I eat like kings and its MAYBE $100/wk. Never more than $500 a month for two people, which is still high, but my finances are such that its okay.
