Financial Audit - 23-Year-Old Is Going To Drown In Debt FOREVER

Episode Date: July 30, 2023

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This is Lylell. I'm 23 from Berlin, New Jersey, and this is financial audit. Okay, thanks for coming down from New Jersey. Now, yes, I just want to say something right out of the gate. Let them know. My voice sounds like death. I don't know why. I don't feel sick. I feel nothing.

But I sound like an interview with Miley Cyrus for some reason. I don't know why. Yeah. I'm just full vocal fry today. Thanks for coming down. What do you do for a living in New Jersey? Got a couple things. So my main thing that I do is real estate.

Okay. More recently over the past year or so I've gotten into real estate and I have been actually doing real estate more so. Yeah, what's the job in real estate? A salesperson. So any body wants to buy a house, anybody wants to sell a house. You're a realtor? I'm a realtor.

Oh, exactly. I forget that that sometimes needs to be clarified, yeah. When did you get your license? Oof, like two years ago. Okay. For the first year, just sat on it. Got my license, paid a bunch of dues and was like, I have it. Great.

then I was like, hey, there's like a $400, like $500 annual due. When that came back around, I was like, oh, I use this thing, or I give it up. There's no like just spending $500 a month because I have it. That's when I started coming to the office, feeling around, seeing how to actually do real estate. First year, a couple transactions, nothing crazy. Kind of got my bearings and all that. And this year, doing better off. What have you made this year so far?

This year. Five months. Well, so in these five months, I made around not nothing crazy because I'm still newer. Okay. Four months. But I made around $15,000 this first year. And I'm in contract to make another $15,000 within the next two months. So, and then hopefully, I mean, we'll see what the second year or the second half of the year has for me.

So, yeah, we're in the beginning of the fifth month. So next two months. So that's $30,000 and six months. Yeah. In contract. Those contracts could fall through, though. Contracts could fall through. Yeah.

I've personally never had one fall through, but I'm newer, so it could happen. So 15,000 hours over four months Yeah And then what else you do? You said you do a lot of things I do a lot of things I do DoorDash too Okay

Yeah DoorDash I'm typically bringing in I mean It fluctuates a lot So that's what sucks with that Because it's all discipline It's all Do I want to DoorDash

And then yes for no kind of Instead of having like a routine That I should follow What do you bring in normally Typically between 600 to a thousand a month Yeah Well I see here

I mean, there are expenses. Here's your DoorDash, like, statement. This was in last month, all of last month. You brought a $918, but there were, I mean, there's lots of gas. Lots of gas. I pay around $250 to $3. A month? A month on gas.

It's painful. So you worked away with like $700. Yeah. Okay. And then maintenance on cars. We're not doing calculating. Nope. Or taxes.

Well, yeah. I mean, you're setting money aside for Texas, right? For real estate and this. I'm like directly like the camera. No, not yet. Why? Because I have debts. And I'm like, no, that doesn't matter.

You've got to pay the IRS or they're going to come after you. They're like, I'll say this too. For the past two years, I was able to write off 90% of my income because I drive so much. And the other 10%? Other 10%. It's probably like a couple hundred bucks where I'm like, okay, cool. I made that last month. Here you go.

So you paid it. So I pay my taxes off every year. But it's never come out to anything crazy. I know this year because I'm not making anything. Exactly. So I know this year I'm going to make a lot. That's where I need to put money aside. Make a lot.

I mean, we're 15,000 in the first four months. Yeah. Everything goes through. We're 30,000 within the first six months, meaning six thousand plus an additional thousand hours a month that gets you to 72,000. Yeah. I mean, that's great. I'm happy.

We're not making money. I don't know what you're definitely. Making enough to be taxed is what I, is what I said. Yes, that is true. That is true. So you're set, but you're not setting money aside. I'm not so we have enough to be taxed. We've established.

Yeah. If everything goes well, the market fluctuates. Yeah. You know, who even knows. And you can have hot parts of the year in terms of buying and selling as well. Of course. So we can't guarantee that income. No.

We can probably guarantee the DoorDash. The DoorDash is the only one I can almost guarantee. Well, and that was $1,000 before expenses. So really, it's $700. So, I mean, who even knows? Either way, all we can do is go off history and then we can base it on that. Yeah. We're not going to go off of like, oh, I hope I make this by the end of the year.

I know. Unless they're business projections, but. but we're not a business. Yeah. I do a third thing. Oh, okay. Go on. I'm a sperm donor.

Okay. Cool. How much do you make you in that? A good month, I'd say 900. If I go less, let's say, I would say typically 600. I want to take a brief moment to thank today's sponsor, Rocket Money. I've been hearing from the people who've signed up since the last time I talked talked about them and everyone's been saying great things in the comments. And I've been using them

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might improve it. But the real game changer is the smart savings feature. I choose the amount and the frequency. And Rocket Money automatically deposit savings into a smart savings account that you can withdraw at any time. With Rocket Money, I have a clear picture of my net worth, including my cash, debts, investments, crypto, retirement accounts, and collectible items. Join the 3.4 million members using RocketMoney to save more and spend less.

Go to RocketMoney.com forward slash Caleb or click the link in the description below to get started today for free. And if you want more features, you can always upgrade to premium like I have. That's RocketMoney.com forward slash Caleb to get started for free. Get your money right with Rocket Money. So if you want to kind of break it in half, let's go $7.750. All right. So you're a jiz boy for $750. 50 that's why I sell it for you.

So you have a bunch of kids running around? So I only signed up to say like, hey, when they turn 18, they can reach out to me if they want and I had to sign something saying that. Until then, I have no idea. Because it hasn't been 18 years since you've been doing this. I assume I'm 23 years old. How long have you been doing it? All right, this is a crazy part.

They can only take, they can only have 25 kids for me, right? I've been doing it for three years. And I've been going a couple times ago. You can only have 25 kids from you? Yeah, because they don't want to mess up the gene pool. I assume. But they'll take more than 25 samples. But they'll take three years.

I've probably donated at least 200 to 250 times. But they only, and each donation can have about five kids. So that's probably a thousand samples worth of kids. Interesting. Why are we doing that? We're just to make money. Money.

I mean, it's an actual, like I said, extra 800s. Sometimes they have bonuses where I made thousands in a month before. Like I made $3,000 one month. And all I go in there is, I mean,

I just drive over the deed and then leave. So it's easy money. It's 120 per donation. And I go twice a week. You just like go to a room? Yeah. They give you a room. Pull up the app.

The magazine, the photos, whatever. Yeah, whatever. Interesting. Very interesting. All right. Yeah. So, I mean, you're bringing home after expenses more for being a jizboi than DoorDash. Yeah.

Okay. But I can't go more than twice to three times a week. That's the crappy part about that. So I need something more to kind of backend it. Like something that comes in. then every day, every other day or so, you know. Back ending it, you're soloing it when you're there. Yeah.

I actually can't stand you. I just... So, real estate is the hope. Real estate's the hope. It's the dream? Yeah, I've transitioned recently. Like I said, my first year I did like two transactions. This year alone, I did six and I have another like three to four.

Now, why are you in so much debt? Okay. Um, I went to school before this. For what? A couple things, but mainly nursing. Okay. towards the end. Once COVID happened, everything transitioned to online.

I'm like, oh, wow, this sucks. I can't focus at all. I'm getting distracted, but whatever. And I also moved to Jersey during this time from Philadelphia. It basically put a monkey wrenched things. During that period, though, I wasn't working. I'm just a student. So I'm probably getting money here and there from side things like that or DoorDash, typically.

But I basically realized that my income versus my expenditure was not, like, equal us. I was slowly going into debt. How long? Probably for like a year, maybe two. Maybe six, maybe 18 months. Quite the debt to build up in just a couple, just even a year, maybe two. So what happened between that,

I also, my mom ends up, I was living with her, rent free. Things go south on her, and as far as she's like, look, you've got to find a place, this is not, not nothing between us, but between, basically she ends up and divorce.

So she's like, hey, I have to downsize, you got to find your own place, we only have two rooms, and I have two other siblings. My cook are great. I'm moving with my aunt. I pay her $500 a month during that time. Yeah.

Okay. Which is basically nothing. Nothing. As far as rent goes. Exactly. So I'm a student paying her $500 a month. Great. I can kind of deal with that.

I then take on a car note. This one was stupid. This one was a bad idea. During this time, I get the bright idea that I'm driving so much that I could get an old Tesla. Okay. So I get a Tesla. The car note for the Tesla, and mind you, I don't pay gas.

So I'm saving about $275,300 a month. And I'm like, okay, I like that. But I know your faces otherwise. The car note was $5.50 a month. And I'm making less than what you saw there. So I'm paying $500 a month in rent, $5.50 a month on Tesla. And then my insurance was another $3.30 a month. So almost $1,000 between car note and insurance, I'm drowning at this point.

So anytime I go out for food, be that groceries or not, or like anything, I'm paying. paying on a credit card most of the time at that point. More recently, as you saw, Tesla's dropped in value. I don't know if you've seen, sorry. I have. Yeah, so they dropped in value. What's kind of giving me the hope, but this can kind of turn around, during that time, January 16th, to be exact, I got into an accident.

Wasn't my fault. This year? This year. Okay. A couple months ago, yeah. I get into an accident. It wasn't my fault. Insurance company basically says, look, we're going to pay you out.

The car's done. I'm like, thank you. I get a much cheaper car, which I now have a car note of $8,000. Yep. But I get a much cheaper car with a much cheaper car note. My car insurance is now like $130 a month. I cut it to a third of it. And I'm still paying.

Now I'm paying $600 a month in rent because I moved out. But I'm paying much cheaper on car note things. I'm making a little bit more money. And like I said, with real estate, there's a lot of things in the works. Obviously nothing's guaranteed. Well, I guess that answered the question a little bit. But we'll just have to dig into this a little more. I want to know what you give yourself a score 0 out of 10 right now.

Write this today. Probably like a 2. Okay. Yeah. All right. Well, from what I've seen, that's optimistic. But we will see. So, okay, yeah, we went through the dash or direct.

That's your door dash thing. Let's start with your checking and savings. $53 ending in your checking. Do you have automatic withdraws on different things? I do not. Thankfully. Okay. Manual.

I have to be. Good. Start of a 1640, so barely anything. And then there's another checking. account that you have $129 and that are started with 13 cents and the savings 51 cents. Yeah. Okay. So no savings.

No savings. Is there savings anywhere? Do we have anything? Do you have an emergency fund? Do you have anything? No, I don't. Okay. Why?

I mean, you'll see that the debts were just so big that I'm like, look, if I have to, and I get the point of saving the $1,000 to the side just in case something happens. But I'm like, look, as Dave, yes. I'm like, look, I could just pull that out of credit card and you'd be. What's the difference between me paying that down? $1,000 or pulling that $1,000 out when an emergency happens from the credit card. Interest? Interest.

So I'd rather pay the credit card off first with that $1,000, and then if I really need it, go back and pull it back out. That was my idea of use that $1,000 emergency fund to just pay down a debt a little bit more. We'll see. I mean, what we've often found with a few people on this show who only save up $1,000 than a big emergency happens, they end up getting into a worse situation that's harder for them to pull out of than if they had a few thousand dollars set aside. Either way, I mean, this is...

Okay. In here, okay. So in here, you're spending $319 at Target and parking and Wawa. And guess what? You had a withdraw of 3731 rejected because you didn't have the money in there. Yeah. So we're clearly overspending. Yeah.

Like, why are we at a point where you're going and spending 3731 on something when you don't have the money? Why are we there? That was actually the, that's my only reoccurring charge and it's a gym membership. So I mean like, yay to that. So you have reoccurring. So why are we leaving no balances in the checking account essentially like that? This makes no sense the way you're managing money. Do you budget?

Now, yes. What's now? Within the past like two, three months. Yeah. Okay. What changed? I don't eat out at all anymore. I probably eat out.

No, what changed? Why did you start doing a budget? Oh, what did I start? Honestly, that. So, like, as you see there, the debit car was bouncing back. The credit cards started bouncing back first. And that's where I was like, okay. I was like, this needs to, and once the Tesla bill was off of me, I felt like just a tiny bit of weight relieved off my shoulders.

And it was like a message saying, like, dude, you pay this off now or like it's done. Like, what do you want to do? I'm glad you changed it because that'd be ridiculous. Okay. So we also go. These cannot be gas because you're getting gas in their dash. I should think, but the Wawa for $7, that has to be stopping and getting like a snack.

Are you only getting $7 a gas? It could be $7.00. Was that last month? Nothing. Was that last month or no. Yeah. That was probably $7. Gas, yeah.

Yeah, because you had no money in your account. Nothing left over. And I was like, okay, I get $7. That's it, yeah. Okay. Auto use, $212. That's my car note. Oh.

$212, yeah. H&R block retail? That was taxes, yeah. Oh, $492 in taxes. So that's the tax payment you paid. Paying for parking, dollar general, 265. Barbarez, Inc. It's my haircut.

Oh, okay. Yeah, Barbara Shuffle. $52. I mean, right, it's not a $52 haircut, I know. I was going to say, why don't you just go to, you could go to great clips with that. It's nothing special. Something exciting. Neither is mine.

I mean, well, still, and then parking, Dave, Inc. Isn't that a borrowing thing? So I thankfully didn't do it. I signed up for it and then was like, I'm not going to do this. Good. Well, don't do it because that's be stupid and that was just so recent. So don't even get tempted. I got tempted.

$85.85, $85, $493, those glasses right there, I'm assuming. Yeah. Which I got refunded for. Fitness. So there's your reoccurring. Yes. 532 Apple Bill and Chick-fil-A. Don't go out to eat anymore.

And parking, you spent a lot on parking. Can I say shipping out $15? Parking, a dollar. Parking. and bright MLS. So it's a bright MLS. That's real estate dues. And the Chick-fil-A, that was for a friend.

He was, I owed him money. He's like, yeah, you could buy me a chick-fil-A or you can give me the money. Well, stop owing your friend's money. Parking again. Cash-tapping out $20. So clearly, if you're owning someone something for that, and parking again. Yeah. Now, Zelling to, I think, your girlfriend, $164, and Zalien, $625.

Those stats for rent and utilities. Yeah. So that's, okay. Okay. Yeah. And your rent for watching this video is clicking the subscribe button. We're trying to get to 500,000 subscribers. Thank you to everyone who has subscribed so far.

You're all amazing. I love you. Thank you. Do it. Subscribe, please. For my life. For my sake. You won't let me out here until you subscribe.

And then you have, like, nothing in savings. Yeah, nothing. scares me, but whatever. FICO score, this has been dropping down your... Why are you laughing so much? Is this a joke? Are we here for jokes and giggles? It's not a joke.

It's definitely just like... It's the anxiety of it, definitely. Okay. Just wanted to make sure. Started close to near 700, which, okay, great. Yeah. I mean, you know, early 20s at that point last year, a year ago, we're very close to 700.

That's fantastic. But we've dropped down below 600 and into the 591. Yeah. So the situation's only been getting worse. Yeah. You talked about a couple years of things going bad, but it's only been getting worse since here. I want to make sure I'm covering up anything sensitive.

but look the chart's only going down. We probably put it on screen anyway. But, I mean, this is what makes no sense to me. This card is better than the others, but we'll start racking up the debt. We're getting into the debt now. But a Macy's card, a stupid, stupid store card of all things, and it's a Macy's card.

Yeah. Had a previous balance, $3,616. Okay, that's not good. What's good? $2,633 of payments. It's fantastic. But we're putting $33 on it. why are we putting any money on a card that we're trying to pay off?

That's barely any money compared to your payment. So compared to usual, okay, good. But $65 of interest, if we're losing $65 in $0.60, and we're losing $0.000 in $0.60, why are we still spending money on there, leaving it with a thousand-hour balance at the time of this statement? Yeah. So that one, I think, had a reoccurring bill, and they wouldn't let me lock it. And the reoccurring bills were here and there.

I ended up just reported it as stolen. I was like, look, the card got lost or sold. It wasn't. Why didn't you just cancel the recurrence and move them? because I didn't know how to do that. I'm like, look, these are websites that are from years ago. I'm just going to report the card, and if I really need those reoccurring charges, I'll put them on my debit.

With a $76.16 minimum monthly payment with $65 of stupid interest. Yeah. No, I looked at once I saw your videos and I was like, how much interest in my accruing? It was in like the, it was high. Yeah, this is ridiculous. It was a monthly bill. And it's on a stupid Macy's card. It was HBO Macs super easy to cancel and change.

and SEPRA, I don't know what that is. That was some real estate thing. Yeah, that was like, all right, I don't know. Total interest charge in 2023 so far, $316. $316, and again, your income is very fluctuating. Yeah. I mean, that's almost a half a month of Jiz Boy activities. So, I mean, already there.

And this is one card. Yeah. Now we go to the Discover. Again, this makes no sense, and we're being objectively stupid here, in my opinion. Discover, previous balance $6,814. $3 and $2 of payments. That's double the minimum monthly payment.

But $72 of stupid purchases. Again, I need to get into the logic when we're not going to overcome anything. Why are we purchasing on a card we're trying to pay off? If you've recognized in the past, okay, my situation is bad. I need to start doing good a couple of months ago. We got back on some things.

Why are we still purchasing on cards where you're losing $119.62 on a monthly basis in interest? Why are we spending? That one I couldn't tell you. Is that this past month? it's the most recent statement then I have no idea

what it was spent on the card is locked now you've got a freaking budget dude because if you don't even know where your money's stupid going then that's just dumb you have to budget $140 an minimum monthly payment

now typically I'm not angry at the person I'm angry at the debt but the one thing that does make me angry is when they've said okay I've started watching your stuff okay I'm starting to get out of crap but they're still spending money on a credit card that makes me angry

That's the one thing that'll make me angry at you. That is dumb. That urges just being in denial, but it doesn't sound like you're in denial, which is good. But still, $119.62 in interest. That upsets me because the debt's bad. It doesn't upset. It doesn't make me angry at you specifically. But audible purchases and the edge fitness.

That's probably what happened. The other gym was like, hey, let me get that. And that's where I locked the car. Yeah, have you signed up for it? Yes. That's where I locked it because I was an old gym I used to go to, and they basically kept charging me, and it was like, you come in here and you negotiate with us on what you want to do,

or so I was like, I'm just going to lock the card. 20% interest. Yeah. Killing yourself, dude, with this, you're killing yourself with this. Low web, platinum rewards. I don't even know what that is. Police and fire. That was my last name right there.

Oh. Yeah, platinum rewards is the card, yes. Planned, yeah, with a crazy thing. Oh, okay. That makes sense. Current balance, $5,000 stupid $192.42 of $0.42 of stupid debt. Disgusting now where we've gotten over $10,000 and bad credit card debt at this point. We're like at, what, $12,000 almost?

Yeah. And what's even more stupid and this will make me angry because this just comes down to just basic responsibility. Light fees all throughout the statement. We're not making our freaking payments on this. as recent as March. Yeah. March was just a thing. That one I used.

You know I'm upset because even with this voice, my voice got that high. So that's when you know that's stupid and pisses me off. Yeah. Why are we missing stupid payments? So this one, this is terribly on me, obviously.

When I signed up for it, it was a balance transfer card because I had 0% interest for 18 months, something like that. When I did that, I didn't really think more past that. I was like, oh, like, I have zero interest. Great.

I didn't really ask, hey, when's my due date? Or, hey, when do I have to pay this? Or what's a monthly? I really just opened the app here and there and would just be like, okay, cool. I owe minimum balance, great. I never actually checked the due date on it. So what have we discovered?

You are. Irresponsible. You are. Not stupid. You are. Stupid. It's not just said you watch my content. What are you?

I'm in debt. I'm bad with credit cards. Not a credit card person. You are not a credit card. card person. Objectively. Yeah. What you just described

going into that situation, you're not even close to a credit card person. Yeah. So will you cut these up? Will you cut them up and end them? I brought them here today. You brought them here to cut them up?

I have a funeral for them, yeah. Oh, good. And we'll do that once we get through the credit cards. But we have some realty thing you're doing on here. Wawa and Chipotle and Chipotle, Texas fried chicken sushi. That's bad, dude.

That's over the past like six months. I know this is not, this isn't the past six months. that I'm looking at. Past couple months. Yeah, past couple months of FedEx and more realtor stuff in the spirit shop and Wawa.

Yeah. And again, going back, miss payments, mispayments, mispayments, mispayments, and late fees, and stupid and terrible. It's so bad.

Now, you said you have a car loan. I don't have the car statement. So what is your car? My car is at 2015? Hyundai Sonata. Okay? What's the balance? Paradee presenta.

Ojos with Alercaiification contrae. And the ganador is Paradee. Extra Fuerte. To alleviate, to libyar the Achilles

for allergy, act more rapidly and super a Clarity and Flownase at 1 at 24 hours. Parade! Adelante. What's the interest rate?

It's this table nailed down because I feel like you're going to flip it, dude. Mind you, I had to get this car recently. I was in a car accident. You saw my credit score

of the 591. Yeah, because you've just been getting further and further to maxed up debt almost. What? What is it? 16%. Oh, okay.

What's the interest rate and minimum monthly payment? What's the, Minimum wealth of payment on that platinum card. I think it's 140, if I'm not mistaken. And you're losing interest in something. I couldn't see it because it wasn't an actual statement. It was just either way.

Was your minimum monthly payment on that car? It was like two something. 2.12. What's the term? 60. Oh, I know. Let's cross fingers here, right? Can I get a round of applause?

What else? What other debt do you have? Um, oh, I have student loans. For a degree, did not get, correct? You dropped out? Yeah. Okay. What's the balance?

7,000 student loans. Are they all federal? Any private? 5,000 is federal, 2,000 is private. It got paused, obviously. It's like August or so because of the... Private wouldn't have been paused. Are you sure it's subsidized and unsubsidized, maybe?

That's what it is. Okay. They're so federal. Okay. So they're all federal, yes. That is going to start relatively soon. Yeah. I think your minimum monthly payment is $7,000 is probably going to be.

going to be like a hundred bucks. Okay. Yeah. Interest rates, you probably don't know with their idea. Nope. Because they make it very hard

to see well it's on pause. So I don't necessarily blame you for that. Yeah. Okay. But it's likely going to range anywhere from two to, with the unsubsidized, two to six percent. Okay.

Maybe even seven. We want to pay off that $2,000 probably pretty quickly. Either way, whatever. I'm scared, man. Take them out. Or do you want to lose all of them that are in here? All of them are in there, yeah. All of them that need to be,

Nothing else is in here of importance? No, I mean, that's like that weird ID number, but I'm sure I have that in an app somewhere. I'm not going to cut that. I just want to make sure we don't get the information on the screen. Of course. So we have Macy's. Yeah.

Discover. Yep. The stupid, is this another Macy's? So that was the one where I reported it as like lost, and then they gave me that one. Pleas and Fire Federal Credit Union. Credit union, yeah. I feel like you should do this.

Hold it like this. Make sure the numbers can not be seen. We'll blur them if they are. Yeah. I appreciate it. Well, cut it into the camera still, like up here. I like up here. So people can see it.

Jeez. They're kind of, they're resisting it. Over here. All right, y'all. They don't want to die like this. Can I do one at a time? Yeah. All right.

One of the Macy's ones can probably say, but, uh... Good. Good. Let it leave your system. No more stupidity. We're done with dumb. We're done with dumb. Good lad, good lad.

Just for the pleasure of it, the one that's already been canceled. We're reported. Get a good life. Good. No more stupidity. This is dumb. No more dumb. Dumb.

No more dumb. It's gone. Get that out of here. We don't need that. Okay. So now it comes down to you actually cleaning shit. up. Yeah.

I can't, because, okay, you said it's for anxiety, and I can appreciate that, but still all the giggly, the joking, and I know you're happy to be here, it's excited, I'm happy to have you here too. But I need to make sure you're actually willing to take seriously and clean it up. Yeah. Yeah. Will you buckle down? No, I really, I really, like, when asks, eat out.

I'm like, dude, if I'm starving, I'm headed home. I'm sorry, I'm going to make a sandwich at the house. Like, I'm not eating out anymore. I'm not going out anymore. And since when? Since the past, it's like two months, tops. Yeah. So, I mean, obviously there's not a crazy dent in there, but I'm like, dude, it has to go.

If I want to even think about savings or anything like that or having an emergency fund, this stuff cannot be here. $28,000, $4708 and mostly very terrible debt. $5,000 of that is questionable with the student loans. Yeah. That's a sh** amount of debt to have at 23 with zero retirement, let me guess. Yeah. Zero retirement. So it's the best decade of compound growth for you for retirement.

But we have to put that on pause because we have $28,000 of really not great debt. Also known is really bad. But either way, minus the $5,000. So, oh, geez, let's see what these minimum monthly payments. And we are going to include the student loans because they're going to start up and they're going to be thrown in this process. Yeah. So of the money that is basically, unpredictable. One of your jobs, whether it be DoorDash or Jizboi, is taking care of the minimum

monthly payments of your debts. It's fully sucked up from that debt. And we don't even know what's coming in from the real estate because that's just going to ebb and flow as time goes on. You're going to have really good months. You're going to have really good quarters. You're going to have shi months. You're going to have 40 quarters. So of the job that is consistently coming in, half of it immediately goes to $668 of minimum monthly payments on your card. What's your portion of the rent? $600. Okay. So immediately the rest of the income is gone. Now we're just hoping, hoping, hoping that we're closing real estate deals and getting that commission. Of course. Yeah. Utilities, what's your portion? Utilities including gas,

electric, all, uh, internet as well. Typically like a hundred a month. Your portion, that's all? Yeah, it's pretty cheap. Okay. Car insurance. One 30 a month. Are you on your parents' health insurance? Yeah, I have state covered until 25, I think. Okay. And your minimum debt. is 668. Yeah. Okay. Groceries.

Do you live with your girlfriend? What's your living situation? So I live with my girlfriend and her best friend. So three of us in one house, yeah. Okay. Do you split groceries? Yeah. Okay.

For the household? Household. I am going. You all split groceries? Yeah. We all split the price of groceries for the household, yeah. Okay. I'm going to limit you. Well, if it's three people.

I'm going to limit your grocery spending. All. that you're allowed to contribute to it, they can do as much as they want. 200 is your max. Yeah, that's perfect. And stuff for the house, you know, keeping things going,

total paper and stuff like that, $50 a month, that's your max. Yeah, $75. $75,000 a... Thank you. Okay, and then health insurance. Okay, good, good, good, good. Any other minimum monthly expenses

that are required in your life in order to survive that you can think... Gas. How much you're doing with gas? I'm saying... Well, we actually, we took that away from the DoorDash, so never mind. Okay. That's fine.

That's fine. We won't include that. Include that in your budget. You should, but you write it off. And it comes out of your dasher. Yeah, I typically use my dasher account because it gives me like 2% back. So I'm like, hey. Any other minimum of the expenses you can think of?

If you absolutely want to. So I pay quarterly for real estate, like $85. If you want to divide that by, I don't know, four or divide that by three. And that's how much I'd be paying a month. Oh, and then Jim. Obviously, yeah. And what's your gym? 37 a month.

So that's, yeah, 37 a month there. And then the other one probably around 20s a month. I think it's fair to include. Yeah. So right now, 1,830. You bring in 750, Gizboi, Door Dash 700 after gas, not after maintenance or anything like that. Yep. So right now, the total guaranteed income, if you work those, if you do those.

Yeah. And those are even if you go do those. is not enough to take care of it. It's like 1,500. Yeah. So your expenses, because of the debt, you've ballooned, because you've probably gotten into, well, no, the rent situation, I mean, it's like as low as rent gets.

It's mostly the debt situation. You've gotten yourself, and then your income, it just fluctuates too much. I'm good with real estate. I'm all about real estate. I own rental properties. And I'm obsessed with real estate, honestly. Yeah.

And so I'm good with this. I'm good with pursuing this. We might need to be driving new breeds a little more, though. Of course. So I probably do it like two to three hours a day. I know I could push out to four to five, definitely, four to five hours a day. And then obviously weekends more. So is there a percentage of my like upcoming closings that I can count towards income?

Because as you saw that $2,600. Once it closes, that's it. Then we can do it. Gotcha. But if something's just under contract but hasn't closed, we're not going to count that yet. You can be excited about it. Yeah. But once you, you don't get the money to.

you get the money. Exactly. The money's not guaranteed until it's guaranteed. So I don't make my financial decisions based on potential YouTube revenue next month. Of course. A few months from now. I'm only going off of what I'm actually making. So you're already over-budgeted.

You're, I mean, you're 150% over-budget. I'm glad the money that you've made so far, the money's probably been allocated, right? Yes. Yeah, exactly. So, I mean, it's already, it's a, the situation is honestly pretty, you have to bring in more money. Yeah. And sell as many houses as you can grind,

grind, grind, but every second you're not doing that, in between showings, drive that door dash. Yeah. Drive that door dash. Go, you know, wink into a thing as much as you can. Yeah. Whatever you got to do, that brings in money.

Do it, dude. You have to. Because right now the situation is bad. I don't even know how to budget out your repayment, because right now you can't repay. Yeah. That's as simple as that. You just can't repay.

You can't put extra towards it. When you do, I would do Macy's, then the platinum card, then Discover card, then the car, and then the $2,000 of likely higher interest suit of loans. Gotcha. And then minimum monthly payment on the lower interest, $5,000. Most likely you have to look and see what those interest rates are. Minimum monthly payments on them until they're fully paid off is what I would do. What's the condition of your car?

How many miles? $70,000. Okay. So I'm going to run her into the ground. Okay. Yeah. I bet you have a while. you should have a while.

You're taking care of it. I am. Oil changes. Break fluid. Everything. Transmission fluid. All that stuff. Yeah.

Beautiful. It's my moneymaker on all three ends. I need it for all my, yeah, ventures. Let's just for the sake of argument, say you're bringing in that $60,000 a year from that and then the other things. Can you put that on camera?

Like the cross-eyed face? 76,800 dollars with all the incomes combined. Point two for taxes? Because like a write-off most of it. it. Yeah. Okay. So that's going to be 60,000 a year after taxes.

As if everything goes 100% perfectly. 100%. 100% perfect. I always give it 50% percent. I'd be like, all right, say half my deals fall through. I can kind of get... I'm not even talking about deals falling through. Now I'm just talking about keeping up consistent deals for the rest of the year as well.

So we're just basing what the rest of the year is going to look like based on what's already happened. Yeah. We can't necessarily do that. Yeah. That's true. It's true. It's the real estate.

Either way, we're just saying. we do, this whole situation still takes, and that's if you put every single penny towards it, every single stupid, every single penny that you have, it's probably going to take an extra 14 months to fully pay off,

then an extra six months on top of that for an emergency fund, no, an extra nine months maybe for an emergency fund. So now we're talking two years of absolutely nothing, nothing but working and working and grinding and grinding if everything's absolutely perfect and you make that much money. That's a big if.

So this is why we're working DoorDash constantly. You are grinding and learning everything as you can. Go under the wing of a mentor for real estate. I don't care what it is. You just need to be working. Maybe you get certified in something through, again, course, careers, I always mention them, and then get a job on the side, something that's, you know, in the tech world.

I don't even know. It doesn't matter. You can look and see what you're interested in. But as much as you can work, 80 hours a week, that's what you need to do to get out of this. Because right now, with just what you're doing, We're not getting out of it. Yeah.

We're just not. We're paying minimum monthly payments. You're going to start making missing payments like you did last month on one of those card late fee. Yeah. That was a month ago. So we're clearly in a position where you just got to work your off. Yeah.

What are you actually going to do? What are you going to do with this income situation? Tell me, I need to know. So I try my best to, I mean, as you see, it's literally impossible. but just to survive on the sperm donations and DoorDash, which I obviously have to pick up more DoorDash, like you said. Yeah. And then any closing that I get,

typically around the $3,000 to $4,000 range, I'm trying to just, and that's why I did with my last one is you saw the $2,600 towards Macy's. I'm trying to put at least 50 to 60% of that money straight towards just the debt. So any money that make off of real estate, 100% of it goes towards debt, and I just want to live off of... But you can't live off a Giz boy in DoorDash.

Exactly. Because you're, again, $1,830 versus the $1,500 you bring in. Well, that's where I hope when I pay the debts down, obviously those interest rate and the minimum monthly payments for those go down. And if I do more DoorDash, I can kind of make up that difference of $300, $400. Like, if I doordash for like another four, like two to three hours a week, I know I can push that difference of a couple of bucks. So you're kind of forced to.

I'm forced to, yeah. And what I really would do, just because your jobs are all hustle. All hustle. They're all hustle. So the next couple months, while you make more money, put at least $2,000 aside. Gotcha. Because that covers your minimum monthly expenses for a month, so you can figure things out if anything bad happens. Yeah.

Put that aside in a high yield. Don't touch it. And then after this, take it up to like $15,000. That's an emergency fund in a couple of years. But again, it's still two whole years if everything goes well. Yeah. Like 100% perfect. So I am nervous about that.

The market could slow down for real estate. more than it has, this could be a five-year process or you're forced to get another job. I don't even know. I don't even know. The market could take up and you could be like every realtor for the past couple years and, you know, make it a killing. Yeah. And turn this into a one-year thing. So could you, I mean, it might be more to do, but how would it look if I was just paying off the credit cards first?

Versus... Versus paying it all off immediately. What do you mean? I said pay off Macy's first. Yeah. Then platinum, then discover, then card, then bad student loans. I'm talking the money-wise, as far as how long would it take me to just pay off that $12,000 instead of the 28? Because that's where I really am like solely tunnel visioned on is the credit cards.

But your card is at 16% and you're barely in the 60-month period of that. So the interest is coming out heavy. So it needs to be paid off as well. Yeah, I know you're right. The only thing I'm saying you can probably minimize is the $5,000 of the student loans. And we already did. Yeah. We already did because you're just doing minimum monthly payments until those are paid off if they're under 5% interest, especially if they're under 4% interest.

I'm assuming the 2000 are likely going to be 6% or higher. So we want to pay those off because doesn't make sense to invest in the stock market that averages 8%. If it's over 6%, not necessarily. We'd rather just get that. Yeah. Okay. So it all needs to come down all of it. It does.

And then I think the way you do that is this. It's mostly the snowball, a little bit of the avalanche. So avalanche, you attack high interest rates first to low. Snowballs, you do low balances to high. So you're mostly doing low balances to high when it comes to the credit cards and car. But then the student loans because they're the lowest interest rate, even though they're one of the small list with the high interest one, we're still saving that for the end.

So it's a mixture of both methods. And because they're paused right now anyway, for a couple more months. What? That was a lot longer than I thought it'd be. Because I'm like, I have a couple of time period. That's what happens. And again, that's in the most optimistic scenario. So be more optimistic by working more or getting another job that you might be qualified.

And just work 80 hours a week. Yeah. Girlfriend won't like it. But she'll like it if you guys are together for a long term and you're out of debt and you're investing. She's completely behind me on it. Like, look, do whatever you got to do, you're not paying. Like, we go out. And I'm like, dude, if she has to go out, it's terrible.

Because, I mean, like, obviously, race traditionally, the other way around. But if we go out and, like, she wants to get something. I'm like, she's like, I'll pay for it. It doesn't matter. Because she makes decent money, has the savings, has all that stuff set up. So she's like, I'll pay for it. It's cool. So she's very behind me on like, look, you pay off these debts because I see that you stress about them.

Get it done, dude. Like, she's like just whatever you have to do to, like, obviously, like you said, there's more time in my life. And this is the best time in my life to start investing and get stuff done. So. And again, in the most optimistic scenario, you'll be out of this and have a fully funded emergency fund by the time you're 25. So you'll still have the second half of the best decade of your life. Yeah. But most optimistic scenario.

I'm afraid this is going to take until close to 30s, depending on do we have? Is everything going as well as we thought? Real estate, I cannot predict that for you. We've had a lot of people on this show going to real estate. And it hasn't been great. I know. That was my first entire year. I sucked.

I was terrible. This year I'm like tripling my, I mean last year, I mean like, well, it's easier to triple when it's coming from like dollar. Yeah. So I was like, okay, cool. I'm tripling. Let me just keep this momentum up. And obviously it could die, like you said. So I'm just like.

I wouldn't expect mathematics. It's a triple forever. Of course, yeah. But if I can keep it around that $60,000 range, $70,000, I can... That'd be great. It'd be amazing. I hope you do. Yeah.

Are we going to go off of hopes? No. Partially. We'll kind of. We'll kind of go off. But instead, what I would do is I'd get out there every single day and just grind. Yeah. Not just the real estate, but everything.

So tell me what you're actually going to do. What is everything going to look like? What's your spending going to look like? What's your budgeting going to look like? What is your actual life going to look like? Go. Yeah. So I got one thing I've been to do this. I have to increase DoorDash. DoorDash has to go up that 750 a month or whatever it was needs to push higher than that. I could easily do it. It's literally just my mind where I'm like, dude, obviously there's a lot of will and discipline involved in all of this. So DoorDash needs to go up and I know I can do that. And as far as everything else, as far as spending goes, I've been doing better. I mean, if you've seen my past stuff like you saw on the police and fire. There was Chipotle, Wawa, Chipotle, Chipotle, Chipotle, buffet. It was bad. It was sometimes twice a day. So that's done. Like, all of it's done. All my cards are locked and cut up.

So it's straight debit card and I can see exactly how much. And everything that I do buy now, I'm looking at it like, okay, that's 20% interest on that because it's not going towards that. Remove them from your digital wallet as well. Yeah. It was out there. Digital wallet's done. Yeah, they've thankfully never put them in anything. So digital wallet's done. It's just debit now. And yeah, like I said, I have credit karma. Thank you. I see your videos all the time and people pull it up. I literally look at the number every the night and I'm like, that's a huge number.

This is a terrible credit score. How much if I just take a chunk out of it? How much less am I paying? If I just take a chunk out of it here, what day, what month am I done by? Like I said, in my head, I kept it mainly credit cards. I'm like, okay, $12,000, I can stomach that in a couple months. I could pay $12,000 off in three months if real estate goes well with what I have already under contract. Great.

When you pull and everything, and obviously the car note's terrible and the student loans, that's, I'm going to have to almost snowball my mind on it too. Like, I want a tunnel vision and just be like, it's only credit cards. Just pay these credit cards off. And then when the car debt comes around and the credit cards are paid off, but like, it's only a car debt, pay this car debt off. And then once it comes to student loans, because holy crap, that's a lot more than I was walking in here feeling. Because I'm walking in here feeling like, okay, I'm going to make a couple thousand in the next few months. Credit cards are paid off. I'm done.

but so like I said no more eating out at all working more I could definitely do that and I have this support behind me there's no reason I can't um yeah and then hope that like I said I want to by the age of 25 I want to start investing in a Roth IRA I want to start investing I want to have an emergency fund I want to have money puts aside for actual entertainment or some kind like it's crappy and like I said most of my life and with the Tesla and everything that it was all just keeping up having pride and all that. And I pridefully could not sell that car. I would have probably died in debt a hundred grand before selling that car. But I got in a car accident. It was like, okay, cool. This is this is the perfect time to actually get my shit together. So, dude. Dude, had you seen this when I had that $900 car note and insurance together, it would have probably just been like, yeah, you're just going to die. Like, good luck, dude. So I know this looks like crap. This is optimistic, much more optimistic to me. So I feel it. I feel the momentum behind me now. And like, I know it might die off my momentum.

I can't let it. Like if I want to have. Make sure you save up your $2,000 before you start going crazy. Okay. That's doable. For Lyle, it's going to be a difficult situation to get out of, especially with the income that's being shown. So really, he just needs to buckle down, get that income up through whatever hustles he

wants to do. But as long as the income is coming in, that is the solution to this issue. For his hammer financial score, spending within a budget, well, he was clearly missing payments on some credit cards only a month ago and the income to his spending the spending is well over the income and that's just for his needs category so it's going to be a zero out of 10 debt one out of 10 one and not a zero because there's no IRS debt or debt in collection so he gets a point there retirement nothing zero out of 10 emergency fund nothing zero out of 10 real estate nothing zero out of 10 so aggregate that comes down to a zero out of 10 we haven't had one of those in a while don't forget the

check out the resources in the description below. And feel free to follow me on Instagram and Twitter. And Adam, don't forget to move to the United States. Thanks.