Presley, a 27-year-old retail manager from Houston, once had something most people her age only dream about: a $60,000 401(k) balance. But in a moment of financial chaos, she cashed out the entire thing.
On a recent “Financial Audit” podcast, Presley admitted to personal finance YouTuber Caleb Hammer that she used the money to pay off debt, buy takeaway and furniture, move apartments, and splurge on K-pop concerts and gifts.
“That $60,000 would have been a million dollars,” Hammer said. “Five hundred thousand dollars in today’s money. After inflation, you lost $1 million.”
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Presley earns around $67,000 a year, bringing home about $4,300 a month after taxes. Despite living in a relatively more affordable metro, she spends far more than she earns. Her daily habits include DoorDash orders, snacks from gas stations, and constant shopping at the mall where she works. In one month, she spent roughly $700 eating out.
She told Hammer she blames stress and convenience for her spending, saying her dog and a sensitive fire alarm make cooking difficult. But Hammer wasn’t buying it. “You got a dog and have a fire alarm,” he mocked her. “Which means we must go DoorDash and get ourselves into debt and pull out and lose a million dollars.”
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Even after cashing out her 401(k), Presley quickly found herself buried in debt again. She owes more than $70,000 in total, including over $20,000 on credit cards with interest rates above 25%, a $31,000 car loan on a Subaru Outback that’s worth less than she owes, and about $8,600 in student loans. She’s consolidated her debt multiple times but keeps ending up in the same position.
Presley says she doesn’t like budgeting because it makes her feel restricted. Instead, she spends emotionally and justifies her habits as “deserved” rewards. Recently, she even sold $7,000 in stocks to pay bills and attend another concert.
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Hammer calculated that Presley spends between $5,000 and $7,000 each month while only earning $4,300. Her minimum debt payments alone add up to more than $2,000 monthly.
