Financial Audit - Business, You Call THIS A Business?!

Episode Date: October 23, 2023

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I wrote a little song to remind you, Choice Hotels, get you more of the experiences you value. The Cambria Hotels got it all. A rooftop bar, have a ball. Bring a date, your squad, or even your mom. Book direct at Choiceotels.com. My name is Santi. I'm 29 out of Albuquerque, New Mexico,

and this is financial audit. So what do you do for a living in Albuquerque? I have a mobile detailing business. Oh, okay. So you're a business owner. Yes, sir. And that's your full-time thing? You have mobile detailing.

So going, I'm not mistaken, it's going through and cleaning cars, making them look all pretty on the inside. Yeah. So really mobile detailing is like a very thorough cleaning of your vehicle inside and out. There's a few different types of detailers out there. But really that's what we do. You come in, take brushes to the vents and the cracks and crevices and cleaning everything dusted down. Dude, that's sick. How long have you been doing it?

I launched my business in June of last year. Okay. So a year, just over a year. How has it been? interesting. Oh. Yeah. Very,

I finally got some bookkeeping help and was in preparation for, well, I was going to do it anyways, but it came through just in in time for this to get a P&L for the first time. Ah. Which if we wanted a little later or whenever we can go through that, because I think that's important. Last year, the first six months. So I've only looked at the P&L specifically at like last year and then like this calendar year. Yeah. Um, last year I was negative, I think like three or four thousand.

Um, this year at this moment, um, I guess that explains all the debt, but, you're all right. Was that, the debt is honestly like from before that. Oh, geez. Yeah. So, um, but, uh, um, this year I'm up like 13, 14,000. So I'll have to live on. No, but, uh, that's what I'm figuring out. Trying to get through that and, and anticipate this work will really help give me

some clarity. Have you been picking, how many hours a week do you work this job? In the field, I mean, it's all I do. Total work, yeah,

what do you do? How many hours a week? Let's see. That's guess. Like, probably like 80 hours a week. Oh. But that's not all detailing.

No. That's detailing. How much of that is detailing? Probably about five days a week, anywhere from four. How many hours a week? That's, let's see,

four, five. I'm going to average like, let's say six, seven hours. So let's say six and a half. A day? Yeah. So a day, five days a week.

Two of my days. One is coaching. Coaching. Coaching what? Business coaching. Didn't you just say it took a day? Okay. So that's what one day is reserved for that.

But it's an hour. Yeah, yeah, yeah. But not only that. So like the whole morning is like content creation or working on the business. Yes, sir. Okay. What's that? Is that a different job or is that for this business?

No, it's for the business. What content are you create? Reading? Mostly reels. And then also like I try to do my... Well, the link is in the description then. Thank you. Yeah.

Yeah. So my reels and then also in my email marketing and I've been doing some blogs and stuff as well for the post. So it's all, all the work that I do is for the business and business related. Do you have more business than you can take on? Not at the moment. Okay, good. For the area, where is your pricing in terms of, of the overall competitive industry

and the lowest to the highest, where are you? Probably like high mid. If you're detailing six hours a day and you're in the high mid, this doesn't sound like a business that's going to make it, not to just be negative, but if what did you say,

$13,000 is here so far, we're almost in Q4? Yeah, and well that's, that's net. So like the business has done over 26. Even $26,000. and three quarters, basically. But that's six hours a day. Five days a week.

Yeah, let's pretend it's just a normal eight-hour day. That's not going to make the gap to a livable income or successful business. I'm sorry, I'm not trying to be negative. I'm just trying to figure it out. Yeah. Because I want you to obviously do well. Yeah. And I'm trying to be very realistic, which is sometimes can sound kind of pessimistic.

How does this business go to making you a living? that I am not seen. My current plan is to go harder on marketing and advertising. And so trying to generate more. So I did some quick math. So an average detail, I can expect about 350. And so I figured if I do that five days a week and I do, so excuse me, if I do two a day, five days a week and I just assume just a 50 hour work, 50 week year, I think it's like 175. if I did the math correctly.

So it would be an average of $700 a day, five days a week. For how many hours again a day? I'm sorry? Well, so if I do this, so my goal is to book out five days a week, two jobs. That I can anticipate being anywhere from like eight to ten hours. And I can anticipate doing about $700 a day.

How many a day are you doing? How much a day are you doing right now? At the moment, on average, like one a day, five days a week. No, no, no, no. $700 a day. How much in terms of dollar amount now? Um,

I can't think of the average right now off the top of my head, um, but probably like 250 to 300. So like, for example, my last job I did, um, that was like 400. But that's also assuming some days that I don't have, have any jobs. No, that's 65,000 hours a year, five days a week, two, $50 a day, you're at 20 and we're three quarters in. Correct. And so that's my assessment is based off of what I've been doing maybe over the past like

six weeks where I've seen a lot more growth in development and my skills and abilities to fulfill services. I participate in some networking groups as well that are like the referral based. And so I started one. I want to say maybe like five weeks ago. And then another one I started about three, four weeks ago. Me, assuming the numbers that you gave me is like me putting a bet on a single stock, penny stock. I don't know.

I can't just assume that. Historically, again, you were negative last year and we're up. I mean, you've walked away with 13,000 this year so far. Okay. But given that I'm building a business and really working on myself in this business, I foresee it like developing over time. I'm good with risk and taking businesses. We just, there's things to do before then. We have a fully fun and emergency fund.

We don't have any bad debt. We haven't even touched this endless stack of bad debt. Yeah. This is bad credit card debt. Yes. So is it the right time to start a business that doesn't make any money? I don't know. Like, okay, why not, for example, work for a detailing company, get paid?

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Discover the euphoria elixir collection by Calvin Klein. Start yours. Well, again, you're going off a trend line, but your trend line is down right now. June, July, August is down. June was a peak. Great, which is awesome. You know, it was March, April, May, June, July, August. So if we're going off the trend line, we're headed in the down direction.

Mm-hmm. Correct. Yeah. Um, maybe, um, I'm banking a little bit too much. It's not low. Just not bringing in money. Yeah. Yeah.

And I know it's not much to go off of, especially right. Like we see the trends going up and down and new business and figuring things out. Is your debt minimum amount? I'm surprised you're even like making payments. How? What's your living situation right now? I need to know. I bought my house in 2019.

Oh, you own a house. Well, I got a mortgage on it. Yeah. Okay. And that right now is about $1,200 a month. Wait, you mentioned to me beforehand, oh, this would make so much more sense for a living. I was like, how is this dude paying to exist?

You mentioned that your girlfriend contributes a lot. Oh, that makes sense. Because math was not math. Yeah. How many have you been with your girlfriend? About six and a half years now. Is marriage in the future? Yeah.

Well, and that's what we both plan and move forward or towards as well. Oh, buddy. Okay. What is she taking care of? At the moment, she covers the majority of the utilities. I've been up until this point paying the internet, which is like $45. No. We have this month.

Well, there's not a document on it, but I do have food stamps, EBT, which I think is about, I think it's like $2.90 a month. So we use that. You do. She doesn't, right? Correct. Yeah, because she makes $50,000 a year. I think you told me before.

Yeah. And so she also covers the groceries that are in excess of that. And then majority of the time, if we, like, go out with her family or something like that, she covers it or will split it. But so those are those things and then some of the, like, toilet trees. Would you take your rent or the mortgage completely? I am, yes. So I cover all of my bills. How have you been able to afford it?

Because, again, the math is a math. 13,000 hours this year doesn't even cover your what's your mortgage 1,200 and technically there's two because I got it in a first time home buyer so I got the regular mortgage

and then also they financed the down payment so you would have had $2,200 left this year outside of your mortgage payments I don't know you have to tell me something yeah what is not adding up because something is something this is

I'm confused and so doesn't make sense. Yeah. Honestly. Where's the numbers? Honestly, I'm not too sure. I just been, well, so I had a part-time job early this year at AutoZone. So I was making a couple bucks there,

but not a lot. And then we got robbed a second time. No, you didn't make a couple dollars. That's the minimum wage in New Mexico. I think at the time is like 12 something an hour. Okay, so you're making $12 an hour, not a couple bucks. Yeah. And so that helped cover, especially the early part of the year, because I had like only three jobs between December and January.

And then I got robbed. Three detailing jobs? Yeah. Yes, sir. And, yeah, we got robbed. The store got robbed and I was working twice. The second time they pulled a gun on me and I was like, that's, that's probably good for me. I get that.

If I had that in business too, but then I would go get another job and not just not have another job because there's that. Let's talk about the debt. Yeah. Oh, my gosh. What would you give yourself scores your score? Santee financial score. I'd like to take a brief moment and thank today's video sponsor, Vora. Vora is an exciting investment platform that is changing how to grow your money.

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you can get an additional $25 for each friend you refer using your unique referral code. So use code Hammer 23 and get a $10 bonus when you sign up for Vora using my link in the description below. Yeah, I don't know. I just been super, I guess, scrappy. And every month has been very close to paycheck to paycheck. You know, I mean, like I'll get maybe a couple grand in the bank account

and then between either softwares or like, you know, mortgage and things like that and paying the minimum payments on all these debts. It's like just making it by the skin of my teeth. Oh, and before we go into this debt, make my day better, hit that subscribe button. 750,000 subscribers. That's what we're trying to get to. And thank you to everyone who has so far. I really appreciate it.

We have a freedom card. Yeah, this is giving you a bunch of freedom. Freedom of owing 5,000. The balance of this one. went up. So yeah, no. Okay, math is making more sense now because you can't afford life.

So you just put it all on a card that's already basically maxed. Yeah? Is that what happening essentially? Not really. But there is, so I've, over the past couple months, I've resulted to as much as I can only pay for things either cash with my debit card.

And they're talking about. You purchased $278 on this thing. Even though you only only. made a $163 payment towards it plus an additional $122 of interest charged on it, by the way, fun fact. Yeah, that's bad. So go on telling me about the thing that was incorrect. I can't remember off the top of my head.

So I'd love to go through the statement to point him out. I think on this one, there is one thing that I've maintained on a credit card, which is your nest subscription. Oh, that is nest. Oh, that is nest. No, it's a subscription. It's a annual? Annual?

Yeah. Then an annual Amazon. Prime subscription as well. Get those off there, man. $122 of interest. You've lost $1,000 of interest on this card so far this year. The interest rate is basically 30% rounded up. Yeah.

We can't have things on here. This is a card that's fucking you. $5,037. Balance went up. It's basically maxed out. The minimum monthly payment on here is $172, which, I mean, you can't even afford that, and this is just one of the debts. Now we have a Amazon card, which is funny.

I probably would have put my prime purchase on there, but whatever. I went from 9,462 to 9,391. But you made much bigger payment, $342. But guess what? We still purchased $58 and then $213 of interest on it. So 9,391. The largeness of that number didn't even hit me until right now. Geez, probably because I'm hungry.

Okay, $307 is a monthly basis. You can't afford that. this. Correct. Audible, you don't need that. No, and I just canceled. U.S.C.A. Delta defense.

Yeah. So that's one thing that I made sure that I was going to maintain kind of no matter what. It's a membership for legal support in the case of a self-defense situation. And this, I don't know if maybe we...

If someone attacks you, you get... Yeah, so fundamental what it is if you're if you find yourself in a case of self-defense they have lawyers that will come to support your case and then it's also backed um like with financial for for like legal fees and stuff like that 1,500 hours of interest loss on this card so far basically again 38 percent it's like 28 percent harbor freight money rewards you know this is a zero percent interest thing yeah so 12 12 equal payments. Starting when?

June. Yeah. And so I've made my first payment this month. Of? It should be on there. I think it's $88. I have it right here. I think it's $88 a month.

Now that I'll do it. Okay, good. That's fine. I'm okay with the 0% financing. Again, not 100% sure for you because you just haven't managed that well. But for people that can, zero percent financing is fine

because you just invest the rest. And obviously 8% of general stock market return is a bigger number than 0%. So it's fine as long as it's advantage. But, you know. And like I was mentioned a little bit before, this debt pretty much, I think basically my downward spiral for debt came about when I, after I bought my house. Really?

At the time, at the time I was bartending and I was making like 60, 65 a year. And like no response. You know what I mean? It was like my girlfriend was the only other like response. Oh, and my, my dog. Like I don't have like a specific thing like this is how I got this much debt. It was more so just like maybe like stress spending and like kind of giving up a little bit. How'd you give up?

I think it was just like some stress. You could maybe call it depression or something like that. And it was just being just being completely irresponsible. I think at the time it was like, oh, I got money. Money's coming in. like it's good. I wasn't being very thoughtful or looking into the future. Yeah, because you've racked up more credit card debt than I've seen in a very long time,

and you're only 29. At least this card, you made a minimum monthly payment of $959 on, but it only took it from a balance of 8,834 to a balance of 8,788 because there was $213,0.16 of interest that accrued on this card, sitting at a lovely 28.24% interest rate, and this year so far, we've lost $1,600 on it. For those keeping track at home, that's going to take us to...

What are the different cards? You had $1,000, I think. $4,100 in interest you've lost this year so far. You've brought home $13,000 from your business. Make that nine now. With some credit union, New Senda, we have a balance of 328, that's all? Yeah. What's this for?

What is this? That was when I was like early on building my credit. Well, sorry, I was explaining what the line of credit was, but that was a vet bill. So I pulled from my line of credit to pay a vet bill. Is there a minimum payment or you just have to pay it whenever? A minimum. A minimum. Yeah, because you're missing payments.

Five. A one? I was just going to say you're about get ready to yell at me. Yeah, that one I just completely forgot about it. Like I knew I had it out, but I spaced getting in there to make the minimum payment. And it hit and it took like on my credit score, I think took like a 50 point hit. But I would say. That's the one and only surrogatory mark I have.

75 minimum monthly balance. This is at a 14.5% interest rate. So we haven't seen interest rate that wasn't like death except for that 0%. Wells Fargo something. Oh my gosh, dude. It doesn't stop. Wells Fargo, everyone's favorite bank. $7,179 is currently owed.

$0.58. Okay. Dude, so much credit card debt. This is an absolutely insanity. $2.25,000 of payments, $2.43 of purchases. Looks like you went and got some tequitos at Shell Oil. And $160 of interest was accrued. Lovely.

25.24% interest rate, and you've lost $1,209 on that. So that brings us to a lovely $5,300 of interest lost this year so far. And that card real quick before I moved to pass, just because I wanted you to have some of the context too is this is why you say not everybody's credit card people and getting a transfer is not the best thing for everyone. That was a transfer when I was I was living in Arizona for work at the time. I was making like 43 a month, but I just had my rent there, which was $1,000 and my mortgage at home, which was $1,200. I had some tenants, but they were only paying me like $800. my my uh some important people to me so I wasn't charging them what would be an effective like

uh rent rate at the time so it was 800 bucks so there was 800 bucks for that so but I was still paying that's at least four to like 1400 bucks and like just housing expenses during that during that time and so I opened this card with the hopes of transferring it over and then um making progress on it and you didn't and then you just racked up the past card again probably yeah and so it was it was just surviving so many people say not to yeah and ended up just surviving and i think the biggest thing was i didn't have actually a plan um and so i was just still trying to like survive and that landed up on the on the cards now this was your new owners thing so was this you financing a part of the down payment what was this specifically yeah yeah so the the structure of the program i qualified for and i wasn't

like too well aware of exactly what was going on. Not that I necessarily feel like I was taking advantage of, but just the way it is is that I got the mortgage and then there was a reduced down payment to like 3% being new home buyer. And then the other program that I got was basically financing, yep. So you finance the other 3%? Yeah, which is like 70.500.

That's so bad. I want everyone to get into a home. I want you to get in home. I want you to get into home. Well, actually, well, Technically, you can't afford it because you don't make any money. You're kind of relying on the girlfriend, and then you're relying on under the other debt. So it doesn't make sense for you to have purchased this anyway, but having equity in a home is important.

And there's ways to get there. We don't need to rush into it. It's hard for many people in many cities. Don't get me wrong. It's not a one size fits all, but this is you did not need to do it because it's not a very expensive house. Either way, 6,675 is the current principal with a $10 payment. It's going to take forever. I pay like 40, just under $45 a month.

Oh. Yeah, sorry, interest. $33.44. $44 total. Yeah, because all of it's got interest for no much. $44.25. Okay, dooky. At a 6% interest, right?

You know. Then here's the mortgage. What is this homework that I do you know? Last I checked, I think, on like rocket money, it throws out, like, expected values. I think I saw like $2.30. Well, I did. Not that I think that, but the last time I checked. We have a mortgage.

of 138-292 with a monthly payment of 1,175. That's what's rough for you because it does include my escrow and my insurance and all that as well. At a 4.5% interest rate and we like that. We like that, which is why I want you, so I'm immediately, there's things going through my head right now. It's like, okay, if you want to fully focus on this business, fully focus on it and you don't really make that much money, but you think you're going to get to a place

of money, but we need to get rid of this debt because you can't afford it so you're just building more and more debt right now. And it just doesn't make sense. since the situation is not mapping, a way to clear the debt is to sell the house. You have that chunk of, what did you say it's worth? 2.30 based off of a rocket. After fees and everything, maybe walk away with $75,000, do this, pay for that, have a little bit of an emergency fund.

Yeah, pay off all the debts, have a little bit of emergency fund that you can sustain yourself while you build a business in you and your girlfriend rent for a bit. That sucks, though, because you're locked in at a 4.5% interest, right? Who knows when or ever, if we'll see those again, probably at some point historically, but it could take a very long time. Like, you're in a rate that I like. And I would rather you just have this forever and just minimum monthly payments until it's paid off. But I feel like you're not willing to do what's necessary to pay off the debt other than sell the house.

I don't even know if you're willing to do that. But because what's about to be necessary to pay off the debt is you spending less time in your business and spending more time actually making money for other business that makes money. You know? Yeah. Because you have to pay out the debt. You have that as a responsibility. Yeah.

And so I'd like to as you know, it's something that I certainly have considered and would like to do. Like to do? Yeah. So our current situation, me and my partner, we've had the conversation. Selling the house is at the moment, not quite an option. Go on. We just aren't looking to sell the house. You just said you would like to.

Yeah, but as a... So why is it not an option? Well, because it's not just my own opinion. Actually, it is. You own the house. She doesn't have... She doesn't pay for it. I don't care.

Wait, I don't give a shit. I'm sorry. I don't care. Yeah. What? Does she know how bad your debt is? I believe so. I'll just jump ahead right away.

I don't think she's going to approve... Well, it's not her choice. This is not... This is not up to her. Yeah. I would like... to be clear too, like with moving forward. I know this situation is dire.

Do you? Yeah, that's why I came here to get some advice. And I would like, I just want to be honest with you as well so we can work out a good plan. Selling the house is certainly a consideration. You literally said you

want to. But, well, because it's going to be a joint decision and she's not for it. Why? Why is it a joint decision? I'm sorry, but why? You guys are not married. She has nothing legally to this house. Why does she even care about the house? You guys can rent and get a house together when you guys are married.

I want you guys to have a house. I want you guys to have an amazing future together. One, she has no say in this, like legally speaking. Right. Honestly, even morally, kind of, to a certain extent. And you guys will be in a house, better house, even in the future. Yeah. There's no logic right now.

I agree. it's just a joint decision and I would love to maybe at some point also look at some other options I just have to come better prepared to tell her what a plan is if we're gonna make that change No it's fine you're right

this was the easy change So now comes the you change Where you're gonna have to do A ton of work More work than you've ever dreamed of in your life More work than you've ever pictured in your life To get out of the debt Yes sir

This is the avenue where we can wipe it today Get rid of an interest rate that I love And I want you to have the alternative is about this is about to suck to be very clear and if that's the route you choose that's the route you choose checking out has 318 in it that's obviously terrifyingly small

for something that has a mortgage and a bunch of other stuff and for some reason when we make absolutely no money we can't afford our bills and everything's going and we're building more debt we're for some reason doing twisters and Chick-fil-A and why are you paying for detail

so this is the business account So these are meals and for the team. Pack some lunch. Yeah. Team. I have a couple guys that help me every once in a while. That doesn't make sense, dude. I'm sorry.

I'm sorry. I know I'm coming across pretty aggressive, but I just need to be very clear. That doesn't make sense. It doesn't make sense. Let me just talk about my business for a second in terms of this. When it first started, okay, I edited, I scheduled, and I filmed basically myself. There was a person who $25 an hour for a couple hours a week push, start and play on the cameras.

That was it. I did 99% of the business myself. Okay, when the business expanded to a point where I knew I could fully focus on scheduling and filming myself, I hired an editor and he took over the position of starting and stepping the cameras as well. Okay, when I expanded to a point where I knew it could be more focused, every position could be more focused if I brought on a producer to help with the scheduling. I did that. But that's through the growth of the business.

Dude, you don't make any money with the business. You cannot have other guys. When you are starting up a business, a true business, and I know that I got incredibly blessed because you all are amazing. Let's be completely honest. Like, truly, including you who is a member of the audience. Like, I'm beyond blessed and absolutely grateful. Like, I've become incredibly fortunate.

But the reality for the vast majority of businesses, man, it's going to be you doing the long hours, putting in 80 hours a week, 90 hours a week. you know, barely getting in sleep. You putting it in the grind, you do not have the ability to bring on the extra help right now, even if it's an extra $10 a day or something. You just can't.

Yeah, I agree. And this was me trying to test out and figure that out. Would you test it? Sorry. When was the test? They came on, like, middle of June. And their high schoolers are going back to our senior year. So one of them still comes and helps out on the weekends occasionally.

Nope. But yeah, I agree. So currently my focus is in line with, well, I'm trying to get better, like, basically what you just described as well is just 99% of what I've done so far has been by myself. And so the moment I was looking to potentially hire and I've canceled any plans on that. Or I'm trying to move my focus to leveraging things that don't cost money, but cost my time in order to, like, grow the business. That's why I'm doing like social media content, like the reels and stuff like that. that to have a presence there.

Literally, even that, I'm like, okay, but go ahead. But there are things that still cost like MailChimp for my email marketing. That's like $20. Which is totally fine. I didn't even highlight because that completely makes sense. But does Jimmy's Cafe? Does Waterburger? Does tequitos?

Does I don't know what Twisters is, but does it? Orritos. Okay. Then no, it doesn't. Does Chick-fil-A? Does Twisters again? Does coffee? Does, what's Rust is gold?

That's a coffee spot. Okay. So coffee, coffee, tequitos, some tequitos, golden kraal, water burger, the rest is gold again, and the donut place and Jim's Cafe, Sonic Drive-Thru, Amazon, Amazon, Ross Stores. AutoBright, that was just a big bill. I didn't know what that was. That's a, they manufacture auto detailing products there. Okay.

So that's where I purchase. That's a business thing. Jobber also didn't know what that was. Is that you posting jobs? No, it's my CRM. And so my entire customer journey is facilitated through there. And you should have a CRM. I don't need to, I don't know if you, I know there's cheaper CRMs you can have for a business that doesn't make money.

And that's not even expensive for a CRM. You just don't make money. Yeah. You just, you manually do the customer journey yourself and then you pay for like a $30 emailing service, you know. It's like you just, you don't. You don't right now have the ability to outsource things. You really don't. And I get it.

This is different. If you had so many bookings every single day that you did not have time to do the other things, then yes, absolutely we outsources. That's where it mathematically makes sense. And you need to do it. You just told me you work six hours, five days a week detailing. So we don't do this. I'm sorry, we don't.

Jim's Cafe, we certainly don't do it. Taking $263 off for ATM. Who knows Amazon Arby's, Rbies, some tequitos. And then a $10 monthly service fee, by the way, for you. using the so everyone's favorite bank Wells Fargo. Did we really need to eat out every other day and get coffee and tequitos? No. Is that a necessary business expense when we're making 13,000 hours a year?

No. No. I will say the Jimmy's Cafe is where one of my meetings are. And not that this is there. They meet at your house. They meet at a park. And I've decided to not purchase lunch there anymore because I looked over like across a month and it was like 150 bucks that I had spent there.

And I was like, all right. Like I'm just not going to order lunch there. And of course you can write off a lot of stuff and it deducts the overall profits of what's brought home. But really nothing's being broken brought home. It doesn't really make sense in this situation. 292 in your personal checking. Again, scary when there's a mortgage. We have Spotify.

We have tequitos that a lot of that coffee and ATM $600 out. Who knows where that one? Wingstop. Tequitos. Tequitos. Okayitos. Unless you're just getting like $4 gas. but I really don't think so.

On the business account, yes, because I'll get like a gallon of gas for my generator. Plenty of time. And the personal juggie? The personal, no, that's tequitos. Some dropout thing. End shot app. Coors.

Hooters. $50 of hooters, by the way. It's expensive. Some expensive tattas. Mikoachina. Mijal. Mijal. Okay.

That's tequitos, basically. It's technically. ice cream. But yeah, I was insane. We went and saw how much it was and we haven't really going back. Speedway and tickets. Two tickets to something. Who knows?

Tickets. Can I say that? Buddy, I'm just, I'm kind of upset at your life because I feel like I almost care about your situation more than you do. Because you have five cents in savings. And I wouldn't use the Wells Fargo for savings anyway. Yeah, because you get percentage yield of 0.6.1 where you get 4.6.4. five and sofi, but we have, what was that, five cents again in there? If we have five cents, are we really getting tequitos and eating out every day?

If you combine them across the, your personal checking account, business checking account, basically every day, we're just doing some ally, 80 cents, all right. Great. Robin Hood, zero dollars. Then it says five cents in this one, so lovely. People always ask me, what high yield savings account do I use for my own money? Some of you know by now it's so fine. I love them.

It's great for my checking account needs. It's great for my high-yield savings account needs. And right now I'm getting 4.5% interest on my monies. I love that rate on my monies. So if you want to get a great rate like that on your monies, just check out the link in the description below. I have a paid affiliate link there. You can get bonuses all the way up to $250.

And I took advantage of that and you should too. Because I'm trying to think. Because obviously the money, the math doesn't make sense. Yeah. So that's where I got some of that. And I think it was last year How much did you sell that? I think I was like three grand that I had in there.

And then another kicker. I'd pulled my 401K, which was like 12 grand, mostly Roth. No. So I pulled that to survive. 12, you said? Yeah. I didn't even process that for a second

because I'm just trying to even think how to get you out of debt and I just got distracted. Oh my gosh. That's terrible. Okay. Sorry. Continue. Yeah. So I'd pull those in order to survive and keep doing things in the business and keep moving forward there. So how all your debt? Have we gone through all the debt?

Yes. I don't have any card debts. That's good. And I don't have anything else finance. The big thing, well, obviously the largest thing is the mortgage. Which was how much again? Sorry, actually, I have it right here. Yeah. It is 1.135. Then electricity is 350, which is expensive. Especially now in the summertime because we've got the central air.

What about the rest of the utilities? Internet is currently $45 a month. And I'm covering that. The electricity. Oh, she covers the rest of this. Yeah, the electricity she's covering. She is completely. 350?

All her? Yeah. Good. And then also the water and the gas. What do you cover? covering. I just need to know what you cover. Just the internet. Which is, again, 45. Your insurance is for your car and or cars. Currently, I think it's like 250. What are you doing for health insurance? I have Medicaid at the moment. Yeah. And yeah. And I know you get food stamps.

How much does that qualify a month? I think it's like 280. That's your groceries, man. I'm not allowing you spend a single cent over that. Yeah. So I'm not even putting in your grocery budget. That is your grocery budget. 217, that's your insurance?

Okay. Health insurance, okay, government program. You know you're being subsidized, right, to essentially run this business in a mathematical way in terms of the food tax. Oh, yeah, to be able to... Health insurance. Yeah, and I got that because right before I started. So like I mentioned earlier, I was in Arizona for a little while and I had like my mortgage and rent.

And when I came back, I was bartending. And then and that was like the typical like two bucks an hour if you make over so many tips or whatever. So like struggling. And then I picked up. No, but the tips. Well, it's not just. It still wasn't that much. I know, but it still gets you to like 12 or 13 hours an hour.

And that's how they get you down to the two hours. Yeah, exactly. So you're still making. At least minimum wage, yeah, correct. And then I was doing, I was working on cars, like mechanic work. That was all cash. And then I changed to a different bar anticipating making more money, but we were overstaffed. So I was going to send home early a lot of times.

And still, again, just like struggling and basically still being out like net negative. So that's when I was like, all right, I'm going to do, I'd already been dabbling with like detailing a little bit. low enough barrier entry to get started. And I'd always, my vision in life since I was really little, like middle school, is to be self-reliant. And for me, what that means is I have the abilities and the skills to generate resources and opportunities for myself and others. But you've gotten further from that than you've ever been.

Because while you're in this debt with no savings, you're further than you've ever been in your life. And so I'm working really, really hard over the past, you know, year and a half and I intend to continue to work really, really hard at figuring out how to do that. And so, like, for example, detailing, I do, I do enjoy detailing, but I don't detail because I want to detail. I detail because I want to learn how to build good business.

And so that's really where my focus is, is learning to develop the skills. Your focus should be paying off debt, dude. I'm sorry. While you have all this, it doesn't make sense. your credit card debts are insane. It's, I don't want to be it. I hate right now the fact that, I mean, I love entrepreneurship.

I love that idea. I hate that I have to talk against it right now. It just doesn't make sense in your situation. Your minimum monthly payments are $944, not including your mortgage. 94425. Again, after your mortgage, and after that, that's more money than you've made all year. So it doesn't it's no surprise you're going further into debt or we just can't even barely make payments and we had a late fee on one of them. Yeah, that was a major just slip of the mind.

Terrible mistake, but I won't let that happen again. It wasn't it that didn't happen because I didn't have the funds. It happened because I was being an idiot and didn't pay attention. So because of girlfriend who gets no saying this, we're keeping the house no matter what. Currently, yes. Okay. I will certainly talk with her and look at some potential. options, but...

Well, that's all I didn't. Yeah, okay. Because the new alternative, I mean, what's required to live, you basically need $1,300 or $2,300 in a monthly basis. You don't bring that in. I mean, again,

for example, the last nine months, $1,44, average. So, I'm sorry, that was a thousand, that's the average

of what I've been bringing home over. From the business itself. Over how long? This year so far. On average. Up months, down months. Again, the trend went. Yeah.

So I really don't know what else to do other than work your detail as much as you can, the actual physical and then a little bit of the extra work on the side. Besides that, you're just going to have to go get another job and work 40 hours a week doing anything. You talked about going to Waterburger in New Mexico, which is out there apparently. And even eating Waterburger today. Cool. go be a manager of our burger work some night shifts be tired only have a few hours to sleep

which is what I feel like right now by the way but be tired embrace the struggle because you've already gotten into this debt of it's like 30,000 yeah credit card high interest 30% death yeah debt so it's really the only alternative because I can't lay out a plan for you the only thing is right now yeah work as much detail

as you can but every single second of your life that you're not doing that and not resting and not preparing of making your own food. You're working. There's no choice. If you're not going to sell the house, you wipe this. You have some money you can set in a savings account, which you can use towards the future down payment, by the way. Yeah.

But it helps you maintain and survive while you're trying to build this business, which I personally support that one because I think you care more about the business than you care about this house. Yeah. It's what you want to be your future. Yeah, 100%. So I would sell the house and do that. I don't want to get rid of the 4.5% interest rate more than anyone else.

But it's just like, if that's your focus, then let's focus on it. Let's do it. Because either way, without doing that, you're taking time away from your business because you're going to have to take at least 40 hours a week away because I need you to pay off this. It's still going to take a couple of years to pay it off if you go no fun spending, no nothing. So this is a very dire situation. I wish I could give you more of a plan. but the plan all comes down to what do you decide to do.

I don't know what income is going to be coming in from this other job. I don't. That's up to you. Right. I don't know if you're going to sell the house. It's up to you. And apparently your girlfriend. I don't know.

Yeah. So some of what my thoughts are, or at least my intention to move forward for myself and my business. and is going insanely hard, especially on the business, considering these debts and what it takes to survive and then work on a safety fund, what that number would need to look like so then I can focus on getting my business to that

across the next, you know, four to... $42,000. for the year. $42,000 as quick as possible. $42,000 gets you out of all your bad debt and it gets you a six-month emergency fund. Okay. So it's not an hour, a certain hour a week.

It's however you get to $42,000 post-taxas as quick as you can. You get that. You are out of the bad interest and you have a six-month emergency fund of like $12,000. Okay. So at $42 a month, or $42 for the year is how much a month? Post-taxes? is 3,500.

Okay, so as soon as I can reliably hit that number monthly, how long is the plan that you're just mentioning to the out of day? That's one year? Yeah. Okay. Right? I mean, I think it just, right, because you divided it by 12, and that's the number you need, post taxes, so you need to make like $55, $60,000 a year.

Okay. It's hard, man. Well, actually, no, that's how much you need saved up. So you need to add 2,000 hours a month. on top of that. So what did we just say? 42 after tax. So post taxes, you need to make $66,000 a year.

So you probably need to make $85,000. If you want to do it in a year, you can do this in two years for like $45,000 a year. Yeah. And the reason that's bare bones. That's no eating out, not doing a single thing. Yeah, I'm cool with that. I'm cool with especially like,

because like I said, my girlfriend does pay most of the time we go out. Not always, obviously, right? Like we saw in the statement. Some of that's probably ego, like trying to not look cool, but feeling bad. You're not paying. No, I don't know.

But as long as you have the open honest communication, I'm certainly not a relationship. Expert, trust me, hinge premium plus, extra extreme is not going very well for me. Get a couple matches. And then the conversation dies after like two messages. So I can't speak out of relationship. Their loss. But, well, thank you. Thank you.

But I'm, I care so much. I'm so passionate about this mission that I'm on, which isn't necessarily detailing, but it is to be able to have those abilities, like I said, to be able to build a business that you're not passionate on. Well, because I do care about it, and it was low enough barrier of entry to get started,

and I hadn't started. So it was like, this is low enough barrier of entry. And now, though financially, not the best time, but at the moment, I was so fed up with all the other things that I had been doing in life, that the culmination of those things

and some more like awareness of self pushed me into getting into it. And I love, I'm truly passionate about doing business and figuring it out. And so again, all I care about right now, you just need to get out of this, that man. And you need to work your ass off to get there.

I'm sorry. I wish it was a more uplifting message. Well, the uplifting part of it is, yes, Once you get out of the debt, you have a fully funded emergency fund. Yeah, you have more opportunity to take risk and go into these plunges of businesses and stuff like that. I love that. You jumped the gun a little early. We should have taken care of one thing, but, you know, one thing at a time to get yourself in a position where you could actually focus on this business.

Because right now your risk levels at like 1,000 percent, you know, full red flags being weighed everywhere. So now we just need to make up for what we lost. And that is you need to just work yourself every single week and probably never even see your girlfriend because you're going to be working or sleeping. and working or sleep and to pay off the debt and then have a fully funded emergency fund. But I mean, that's really the next steps.

I wish I could give you a more laid-out plan. This is not a thing. We have the number that's necessary, but... Yeah. And yeah, so I understand my situation is pretty bad, especially just with what I'm doing, what my finances look like and what the debts look like. And that's really, really what I was looking for,

especially coming to do this, is what's the target? Because I can recognize that, how bad the situation is. Like, I recognize that. So it's like, I just need some clarity.

And I'll be honest, I was never going to sit down and go through my finances the way that you can. Well, that's not good. That's not indicating any. That makes me nervous for you creating and managing a budget, to be completely honest. But no,

now, now, like, like I wasn't going to take that first step on my own, but it's a step that I wanted to. And that's why I wanted to. come participate in this in the series um because i had a lot of faith in the in in you and what you could do to at least give me that i know it's not the um maybe the typical like okay

you make this much a year you do this you save this much as much goes here you pay off the car in this many months then you dump that into this um that's just not the nature of my situation you have your target now the path to take there again you could wipe it out of me the house but again the path is your choice so whatever you choose to do is what you do. And then we'll follow up in the future. We'll see what progress and hopefully only progress you've made on it. But what comes next is up to you, man.

Yeah. So for me, I can see, for see, because I've already going into it, just going super hard on this business and trying to make the money to survive. And now we have that target. What kind of, I guess what payment plan, not payment plan, but we'll plan around paying these down when I when I yeah paying off the debt for as I make the money where do I put my focus first. Few more discipline.

I would do some consolidation, but we're not going to do that. So what I would do is the Amazon card than the new send and the, uh, on the. Is it kind of just the percentage wise or are you doing like small to big? You're going to do smallest the biggest. So whatever is smallest because your minimum monthly payments are also killing you for your lack of income. So you need to pay off the smallest to largest as possible. Again, if it was a different income, maybe we could attack it in the avalanche finance.

Snowball, you're going to see the most progress that way in terms of you seeing the actual numbers, and you're going to get incentivized to fully attack them as hard as you do. But, yeah, snowball. Okay. You have any final thoughts? No, well, I guess it's also concerned. So we're going to do snowball on everything that has interest and then just keep making the minimum on the zero. The zero, yep, you're doing the 88 until that's paid off.

And then for the 6%, 6,075, I wouldn't include that in the snowball. I would wait until that's the last debt, then pay that off. And mortgage, if you still have it, minimum monthly payment until it's done. Okay. Cool. Well, I'm excited. Like I said, that was, I'm really, really glad and happy where we got to because that was kind of like my idea. Because I know my situation is so unstable and there's so much.

risk also involved and the debt is crazy. And that's really the only way I could see working out of my situation is figuring out what I need to hit in an annual basis to be able to survive and actually pay these things down. So I have a target to aim at because I can't, because of where I am, I can't shoot at like, well, I guess what I'm saying is like, I don't know, I guess I mostly lost that thought. You're good, man. You just got to work here. Yeah.

And I'm 100. Like I said, I'm truly, truly passionate about doing business and figuring out how to get where I need to go. And I, one thing that I've been realizing is, is I just need more clarity around things. And that was really, really my main, I guess, objective of our time together. Like, if you do these things, this is where you be. And I appreciate it. And I know it's a weird situation maybe compared to some other people's situations. But I'm going to take this advice.

And now I have my minimum target and then just build on top of that as well over time. And I really, really look forward to following up. Beautiful. Let's do it. Makes a progress. Seeing what we can do. For Santi, I'm quite scared to be completely honest. It's a terrifying situation.

But hopefully he figures out now and creates a good. income path to get out of the situation for spending in a budget. It's going to be a one out of ten. It wasn't the worst we've ever seen, but it really wasn't good. Pretty much going out every day. If you consider the Ticitos, the debt, that's the worst credit card debt, especially the income I've ever seen. Zero out of ten. Emergency fund, nothing zero out of ten.

He does have a house, so we get to give him a real estate score, but I'm only going to give it a three out of ten because still the down payment is completely financed, but he has built equity into the home, and he does own the home. So, Hammer Financial Score right now, one out of ten. Check out of all the research. versus linked in the description below. They're what I use or would use in specific situations. If you want to be in an episode of financial audit

and you're able to make it down to Austin, Texas. Fill out the survey in the description below.