Thank you!
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No worries,
Summary
also a survivor <3 sorry about the jolt.
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The only crypto Iāve seriously considered buying is dogecoin when it was first created, and damn did I miss out on a legit get rich quick scheme.
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One of my good friends is a PT and totally talked me out of it, too. She took out nearly the same in loans as a doctor in medical school, and sheās never made even $100K in 12 years of being a PT. Now, you are in school for less time, and have opportunity to make a real salary quicker, but still itās a lot of debt to take on without certainty of a high salary. She did do PSLF and had the loans paid off in 10 years for working non profit, but that isnāt for everyone.
Itās really shocking to me that people going into these situations of PT school or Med school donāt look into the costs in advance. These arenāt 18 year olds, most of the time they are in early to mid 20s, having had to graduate with a 4 year degree first, and these things were a huge part of conversation with my peers in college when I was pre-med/pre-PT.
This part really got meā¦I donāt understand how you sign on for something like this and donāt do the math about what is going to be owed at the end? Again, itās literally all my friends who went to med school/pt talked about āmy loans are going to be so high, Iām going to be eating ramen for years, and living with 5 roommatesā etc. I think it is a bit of willful ignorance, to be honest.
Iām also surprised she is making that low of a salary. I wonder where they live, because all of my PT friends make almost double that, at least in the 80-90k rangeā¦just working for a corporate PT company with benefits and such. Iād be frustrated too if that was my salary and I spent all those years and $$ in school.
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Funnily enough, I have those toe shoes as an unsophisticated broke person! Iāve had them at the back of my closet for a looooong time, I was a very precocious child 
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As long as you didnāt wear them in a truck or a Target youāre good.
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I appreciate all the AllHats.
(Were they wearing hats? Were there All AllHats Hats?)
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Yes but not all of them. #NotAllAllHats
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Can you share details?!
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Wow, thatās a super surprising response! Especially from the guy since he was so silent during most of the conversation. Iām really happy for them. I hope they can enjoy their lives a little more. 
- Still an Optimist AllHat
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Yes! I was surprised that she has taken some steps to find a job situation where she can make a lot more, keep the flexibility she want, and not have some of the downsides of running her own business. She also sounded super stuck, so thatās a lot of movement!
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AllHat is always Comedian AllHat. I almost laughed out loud at this!!
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Spicy Comedian AllHat is back, driven by intense pain, poor sleep, and weird DayQuil poops. Lezgo!
Episode 37 Live React
Weāre starting off with a shill for Rich Life newsletter. Unless it will cure my DayQuil poops I am not interested. Ramit says he goes into āextreme detailā in his newsletters, which is a hilarious/weird way to describe written work. No spanky spanks, Iām good. PUNISHINGLY INTRICATE. Any Parks and Rec fans?
Today we have Jessica and Javier but Javier is the focus, says Ramit. Ramit says Jessica makes $80k and Javier makes $33k. Jessica has $175k invested and $15k in savings. Javier has zero. They want to move back to Columbia but Javierās spending worries Jessica. He has $21k debt. He accused $9k of debt on a single trip to Columbia. Jessica canāt commit to the move unless he fixes his finances. Those are the deets my peeps.
Jessica is saying she made a promise she wouldnāt continue her current job past June because sheās ādone her timeā which is kinda dramatic and IDK what that means. She says she and Javier have talked budgets and savings and stuffā¦but then when they went on their trip (to Columbia, I assume?). But then the spending was a lot on the trip, made her uncomfortable, made Javierās family uncomfortable. Now they have lots of credit card bills. Sheās talking about their plans to get credit card bonuses? IDK how that relates to any of this. She said Javier put most of the trip on his credit cards, only like $1k went on her cards. She says she thinks when Javier is with his family he just wants to splurge on them. He also says he goes 5 TIMES A YEAR. WOW, that is a prolific amount of international travel, like the only people I know who travel like that are rich people. Sounds like money was spent on parties and hotels and fancy whiskey ($200 bottle) and stuff for the family on the trip. She basically says he doesnāt think in the moment and just does whatever.
They looked at their cc transactions ON the trip, looked at whose expenses were whose, etc. Jessica says it was good to talk about things. She said she came home (USA) and he stayed for another week. Then when he came back she saw his card and it sounds like he spent a lot in that one week? She said she freaked out and he said he āhad a planā. But she is freaked out bc they are planning on moving in 6 months and she says this pattern has repeated for OMG SEVEN AND A HALF YEARS. Girlfriend. What are you waiting for? I cannot imagine having the same fight for SEVEN AND A HALF YEARS. Sweet nestle crunch bars!
Weāre hearing Javierās side now. He says before the trip he got approved for a $5k credit card. He wanted to get points on the card and was proud of getting approved. UNSOPHISTICATED WITH MONEY. Ramit is saying it and pointing out that some people didnāt like that, and he said some people didnāt like when he said unsophisticated with money but then when he straight up called people unsophisticated directly, people really didnāt like that! See folks? Weāre all learning here. Ramit is kind of laughing under his breath, crazy humans! He said he read thousands of comments, and thousands of peopleās feedback is all it took for him to agree that we were right! There are probably better ways he can help people become more āeffective with moneyā. We are growing yāall!
Ramit says itās a huge tipoff that someone is not effective with money when they are in debt and talking about credit card points. Life Coach AllHat has a tear in her eye at Ramitās growth, and agrees. He rightly says you should never spend just to get points.
Javier is talking and says JESSSICA is the one who encouraged him to buy the fancy whiskey. Dun dun dunnnnn! Ramit is talking to us about saying yes and ending up in debt, and how hard it is to change behavior after living above your means. Heās still talking at us. Sleepy AllHat is kind of tuning out a bit.
Javier says he isnāt blaming Jessica for the whiskey purchase but he says in his mind he makes $4k a month and only owes $9k. He thinks he can pay it back. Heās talking about how important family is.
Ramit asks how he went from the budgeted $600 for the trip to spending $10k, the guy responds with āmy credit cardsā. Hotels, gifts. I donāt think Javier is understanding the point Ramit is trying to make. Ramit asks if Javier considers spending on credit cards spending and Javier says āyesā. Reading Between The Lines AllHat is not convinced. Ramit points out that it doesnāt seem like he does and Javier concedes that he sees it as money thatās a gift, even though he knows itās a loan with interest, but he says he doesnāt really see it as money heās going to have to pay even though he knows it.
Ramit is trying to talk some sense into him re: getting miles points on his credit cards when he has debt. Oh man, I feel really bad for Javier. This guy isnāt getting it at all, like on a basic functional level. Heās basically like, āyeah I know! but I already got the points, because of the $9k I spent!ā like as in heās already achieved the goal. Sigh. Sartre-Reading AllHat is concerned this is all futile. Ramit is putting it in dollars terms āIf I said I wanted you to give me $10k and I would give you $150 back, would that be a good deal?ā Guy says no but IDK yāall. I am kind of proud at how Ramit is trying so hard to break it down for him tho. Parental AllHat is puffed up.
Husband just interrupted me and heās a normie so I had to try and explain that Iām live reacting to a podcast on a forum and he backed out of the room slowly. Heās fine.
Javier says he has a plan for paying off the debt. Ramit wants them digits, so do we. Javierās plan is to work a lot and basically pay of $3k of his $4k salary towards debt, which he thinks will work because he pays $1k a month towards their shared life expenses. Accountant AllHat is suspish because if this were possible dude would have saved a ton of money by now, but also his needs are so cheap ($1k!!!) so likeā¦whereās alllll the rest of that cash going?
Ramit is like, uhā¦no. Heās pointing out that heās always earned this amount and literally never saved that much before so how will he be able to do that now. Ramitās asking what he does with the money now. Javier says he travels to Columbia. He admits his plan kind of falls apart. Ramit calls it magical thinking. Guild Magician AllHat is offended by the turn of phrase as it denigrates her profession, but agrees.
Ramitās like, youāve never ever done this before why would you think you can do this. Javier thinks he can minimize costs, but admits in the past heās never done that. Soundsā¦good. I am very confused by this guyās logic. Hahahaha, Ramit goes āI mean if I told you I want to become an NFL football playerā¦how likely does that seem?ā Comedic-timing-gold Javier pauses and says, āyouād have to train a lot.ā 
This guy is super sweet. And Ramitās like, āyeah and I havenāt played football since I was in 7th grade.ā Javier admits, āit aināt gonna happen.ā Overpaid College Athletic Scout AllHat agrees.
Ramitās like, so do you think you will actually be able to do this? Javier says he could make $1k more than he does now and maybe it will take 5 months instead of 3 months. Now Ramitās asking about the interest rate on the card, you go Glen Coco. Javier doesnāt know, and heās smiling, he says he doesnāt check āthose thingsā.
Now Ramit is talking to us about how credit cards work and explaining minimum payments. Itās good info. Now heās asking Javier if he gets why Jessica is concerned about the debt now, in light of all this info. He says he gets her point, and that understand it will be way more with interest now. He sounds down and THANKS RAMIT (is this a show first? I think it is!) and says he never analyzed this aspect. This guy is melting my icy heart, but my poops remain angry little marbles. Itās ok Javier, I do not hold you responsible for my destroyed bowels.
Jessica says she thinks Javier is starting to get it. But she still thinks his plan is impractical and heās not taking into account that his $4k a month is pre-tax (heās self-employed). Oh he owes back taxes from like 2021 and 2022. So sheās pointing that out, and Ramit agrees. Javier says he didnāt even think about the tax partā¦heās talking about how he got excited about the credit card because itās metal and heavy and made him feel important. Ramit says, āthey gave you the rope so you can hang yourself, and you said thanks for the rope, can I have more?ā Holy Moses, Ramit is dishing it like a lunch lady today! Heās driving home the stop using credit message like a damn evangelist and Iām holy ghosting in agreement.
Jessica says she is shocked because sheās been trying to teach him financial responsibility for 7.5 years (girl is counting). She says heās gotten better but sheās sad that what theyāve talked about hasnāt sunk in more. Sheās surprised at his attitude towards credit. She said theyāre involved in the FIRE community in their area, go to lots of conferences and have friends in that sphere, and Javier goes too so she thought he was on the same path. Sheās realizing now that he might say he agrees with her and then do the opposite. She sounds so sad 
but she says she understand why heās been spending like this now that sheās hearing his concepts of credit cards.
Ramitās telling Javier he needs to learn to be skeptical about what he hears, especially from credit pushers. I think heās giving great advice, but Javier is starting to make excuses. He says he applied for bankruptcy 5 years ago, and he worked hard to get a higher credit score, and when he got his first credit card he felt rewarded for being good. He says it was a mistake and he needs to make a change and understands, but Pavlovian Scholar AllHat is unconvinced, and wants a treat for some reason. Ramit is being very kind.
Ramit wants to get to the root of Javierās relationship with money. Javier grew up pretty rich, never had to want for anything, massive house, maids, private school. He said it wasnāt until he came to the USA to be a valet 18 (making $6/hour) that he even cooked his own breakfast. He said his parents never taught him about money. Jessica agrees, says his family are all millionaires. He said his family lost a bunch of money and/or security (not clear bc it sounds like they are rich again, now) because of the guerrillas and they had to flee- his dad also moved and became a valet. He said it was hard to see his dad parking cars after going to clubs and having his car parked.
Javier says the first time he got $300 he bought a tv for him and his Dad and he was really proud. Then his mom and sister moved to the USA, but the government denied them residence because his sister is severely disabled and anyone over 18 must fill out their own paperwork, which she cannot do. They fought with attorneys and got doctorsā notes but the USA denied them because ableism, so his mom and his sister went back to Columbia. Thatās a big part of why they want to move back to Columbia, to be near his sister. Hormonal AllHat isnāt crying you assholes, youāre crying! Now pass me the god damned Velveeta.
Ramit tells us that he suspects Javier has never faced any consequences for his spending, but if he loses Jessica that will be the first time his spending really costs him. Unintentional Wordplay Observer AllHat is pleased. Ramit wants Javier to read personal finance books, not necessarily his you guys!!! Just, you know, his book. Ramit tells us he usually doesnāt get into the financial weeds but Javier doesnāt understand his basic numbers. Ramitās going to work through some calculations but heās going to make Javier do the math becauseā¦
SKIN IN THE GAME! Everyone take a shot.
Javierās talking through his numbers. Heās thinking it will actually take him 7 months to pay off the debt now, the interest rate is 23.99%. Holy. Fucking. Shitballs. That is absolutely insane. Of The People AllHat is pissed off there arenāt better caps in place to protect people from this kind of predatory lending like there were pre-Reagen because COME THE FUCK ON. Javier incorrectly calculates the interest based on taking just 23% of the base amount but Ramit is going to correct him. Heās teaching him compounding now and doing this calculation for him. Javier is starting to realize this will take him more than a year and a half to pay this off, not his original 4 months he predicted. Heās going forward with figuring out how to pay this off assuming $2k towards debt a month. Jessica interrupts that this is unrealistic, he canāt pay that much. Javier says heād have to get a second job. He sounds super dejected. Ramit asks if he can realistically work a second job when he already works 16 hours a day. Javier says no. Ramit rightly points out that his inability to be realistic is what has gotten him in this situation to begin with.
Awww, Javier is like, āJessica if you want to break up with me now do it, I donāt know what else to say.ā Ramit isnāt giving up, heās pushing Javier to pinpoint the moment this all went wrong. Javier says if he went home to Columbia the first thing theyād do is go out of the city for a weekend trip, take his family out to dinner. Ramit wants him to say the CRUX OF THE ISSUE, and wants him to say how he sees money. Heās trying to get him to admit that he shows love by spending money. Javier agrees, 100%. Ramit asks when was the last time he went to Columbia and just spent time without money with his family. He says 5 months ago, and it was great.
Javier says he knows his relationship is in jeopardy because of this debt/spending pattern. He knows his family would still love him without the gifts. He says he spends on the best hotel for his sister, not for himself, and his parents are not together anymore. Heās crying this is a sad one frens. He says he knows his sister is not his daughter but he feels he owes her because they got separated so he tries to buy things for her to make it up. Psychoanalyst AllHat suspects there is both guilt and pride mixed up in this and that perhaps he is using his sister as an excuse. Maybe he enjoys feeling like the rich American relative since his family is also rich? Weāll never know, but it doesnāt sound like his family is at alllll in dire straights, in fact he mentions his dad could pay for all the hotels and restaurants and stuff and Jessica confirms they are very wealthy. He even says if he never gave them another dime theyād all be financially set for life. Interesting.
Ramit can tell thereās a lot of love between Javier and Jessica. Love Dr. AllHat agrees and is rooting for these crazy kids.
Done.
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This might be your best work yet
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Me when anyone asks about how my job search is going
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@AllHat youāre doing us a great service here.
okay I giggled so hard at this that I startled my partner and then had to explain THAT.
this sounds like a genuinely helpful episode for them even if itās sad. maybe I will have to go listen to it.
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Should I even bother reading this episode after reading your live react? 
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I mean, I canāt answer that for you, but no.
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hahaha I may never listen to this podcast again! itās much less depressing to read your recaps.
this right here
deceased me. took me 100% out. still recovering.
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Hahaha, Iām so glad you all enjoy my recaps! 
I always wished I could be funny in writing and didnāt think I had the skills, but honestly itās super fun doing these so Iām glad yāall like them too. Your compliments go much farther than you think preens.
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