Financial Audit - Dude Is Going Into Debt To Mine Crypto

Episode Date: October 18, 2023

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A lot of people make fun of me because I have multiple jobs. Why is that to make fun of? I don't know. Okay. I don't know, but they do. Sure. My business partner at one of the jobs, Heroes Hideout, a card shop that I'm one of the owners of, He likes to tell everybody that I have like eight or nine jobs at any given time.

So you're part owner of a car shop? I'm part owner. What's your percentages of ownership? I own 30%. 30%. How'd you get 30%? Well, when we were talking about opening the thing up, I wanted to be a less, I wouldn't say less present owner, but a less present owner.

Sure. I wanted to be the guy in the back kind of sitting like, like Wade from Kim Possible and doing all of the stuff in the background while he was on the ground doing all of the not all of the heavy lifting but most of the heavy lifting the day to day work the managing and so we figured that a 70-30 split

would help with that okay so the business partner like runs the business mostly yeah yeah and I do like the business how much did you put into it not very much not very much I think our actual split on paper was 700 300 and we put yeah well I had a large collection of cards and he had a large collection of cards that we also just put into it.

Is this in a brick and mortar? It is. Yeah. In San Antonio. Yeah. Yeah. It's off of 410 in Marbach, the SeaWorld area. Okay. Oh, interesting. Okay. And then what are the other jobs? The other one is my main job, the one that I get the most income from is a business consulting firm. It's my dad's business owned and run for like 35, almost four years now. Oh, so he's a business consultant? Yes. Yeah. So we do everything from tax preparation, accounting, bookkeeping, consulting. And that's where I... You don't consult people who get into like tens of thousands of dollars of credit card debt, do you? No, I tell them to not.

Why are you doing yourself then? We'll get there. We'll get there. We'll get there. It makes sense. It makes sense, I promise. That's the second main job that I have. Wait, is Heroes Hideout your shop?

Heroes Hideout is my shop, yeah. Why do you spend $810 at your own shop? Shiny cardboard is a really addictive hobby. And I don't get discounts. I do now, but I didn't before. Whose decision? Both of us, both the owners. Okay.

What's your other job? The other other job that I make money from is, well, it's the side gig. It's the YouTube channel production company that we run. They brought us a movie they made? Yes, yeah. Greg and I, Greg behind the camera over there. We run a small production company. Really? Yeah.

And that one does not bring very much in. So what do you bring in on a monthly basis on average? Total. An average monthly for me is, I want to say $7,500. Four or after taxes? It would be $6,500. That's after taxes. Okay.

Now, a lot of the, are you on a salary or distribution? I'm on a salary for both, for both the card shop and for my dad's business. I'm on salary. Okay. Okay. I don't count. What's your salary from the car shop?

I make three. Why don't you count distributions? Wouldn't you get distributions? Well, it's because distributions vary. So I don't put it in my monthly budget. So is it not a very consistent business? No,

it is. It's just, it's a newer one. It's been open for about a year. What's your normal distributions on a monthly basis there? I spend it. Okay. Well, why?

Because you put the money. So you spend it, but then he gets 70% of what you spent anyway. Right. Well, he does the same thing. We're not here to talk about his card habits. I told him yesterday if he spent the same amount of money that he spends at the shop on retail therapy on an actual therapist, he'd probably have a really good therapist. Okay. But you probably say the same thing about me, so.

Are you W-2 at the card shop? I am. Okay. Okay. What comes in on average from, I know this was everything included, but what comes in on average from that production company job? Um, on a good month, it's like four or five hundred bucks. Okay. Okay. And that was included in this?

Uh, no, because I didn't have anything come in last month from it. When it does come in, though, are you setting a little bit of money aside? Because you're not in a bad income situation. You're not actually, you're in a pretty decent income situation. If you're sitting, because that self-employment, um, from that income. Yeah. And so if you want to definitely be saving out money on the side. Even if it's not that much, just don't want a big bill coming.

and you're not having money because also there's only $100,000 in your checking account. So if a tax bill came today, what would you do? You wouldn't. Oh, well, I, the reason why my checking account stays low is because it's passing through for my credit card payments. So all of my bills except for my mortgage and my car payment. You're in, I think honestly, in a very, very long time,

kind of in the most insane credit card debt I've seen. I would agree. Why the possible at 25, only halfway through your 20s, business owner makes good income. Makes good income. Why are you in tens and tens and tens of thousands of dollars in credit card debt with insane minimum monthly payments? Yes. Yeah. I think you're looking at the business card right there, right?

Oh, yeah. 600 and something. Yeah. So last year I bought a house. is in October. And before that, my girlfriend and I were not merged in our finances. And I was doing fairly well.

I was putting like $4,500 a week into savings. And just like doing fun things, throwing money at the production company so that we could do fun events and videos. And once we got into the house and merged finances, I didn't adjust. Well, why are you guys fully merged? We are.

We are fully merged. No, no. Why are you guys fully merged? Oh, because we live together. That's not how it works. Well, we're planning on getting married next year. Okay. Planning on getting married next year, why aren't you guys engaged?

It doesn't matter in this situation, but. Great question. All right. So, okay. I just, I don't know. It's a little risky. to combine finances before legal protections around marriage. Yes, yes.

Well, that and we didn't have a discussion about finances before we merged. And so he was spending the way that she likes to spend and I was spending the way that I liked to spend. Thanks, yours too. What does Ravs stand for anyway? To me, it's the remarkably advanced vehicle. Really? To me, it's the runway approved vehicle for its amazing style. What about remarkably adaptable vehicle because of its versatile cargo space?

Or really admired vehicle? Oh, or really awesome vehicle. It really is the recreational activity vehicle. The stylish 2026 Toyota RAP4 Limited. What's your Rav for? While I was making full payments on my credit cards and taking trips with the card points that I was getting. And with the adjustment of getting into a mortgage, which was three times the price of the rent that I was paying and merging finances and not having the discussion,

I don't have a statement to spiral out of control. What's your mortgage? The mortgage is, uh, 2175 a month. Yeah, I mean for the income, but that's just your income though. Yeah. What's the overall mortgage balance? The mortgage balance left.

I think I wrote it down. Hold on in one second. The balance on the mortgage is $247,000. Oh, sorry, $246,746. And 91 cents. What's the house worth right now? 258. Yeah

It's not No it's not great at all Right of an equity position How much did you put down? We put 3% Okay We Yes

Are you both on the loan? Yeah we are Oh geez That's so fucking risky That's so risky If a breakup were to come And no one hopes for a breakup Of course not

No no And I don't even think that'll necessarily happen You guys are planning Getting married But you never know Yeah yeah I understand. That is a situation to get into.

What's the interest rate on that thing? It is 5.99%. So 6%. Okay. E. Okay. Ouki doki. Yes.

So why did you again? So why? The business credit card one, that's for the production company. I added that in there because when it doesn't make money, I'm responsible for paying that. Paying what? The credit card. Oh. And that happened.

because when I was in a good spot. So is the business on this? Are you on this card? Is your business partner on the card? What's up with this card? So I own the production company full out. So I'm the only one legally responsible for it. You said it brings in on a good month $500?

Yes. The interest that's accrued on this card is $500 on a monthly basis. Right. How do we have a $21,690 balance on a business that brings in on a good year, a good year, a good year $6,000 according to your numbers. Yes. So I was paying those payments out of pocket. What even was the $21,690?

So I started getting into live streaming and wanted to make a bigger jump because it was doing really well. And we bought a bunch of equipment. And then after I bought $3,000 worth of equipment that was ready to pay that off, I was, this was back in 2021. I was dipping my toes into crypto mining. This is where I'm going to get judged on comments. Don't dip. No dipping. You don't need a dip.

Yeah. And it felt like a very comfortable dip for a little bit. And then it very quickly became a not very comfortable dip. And I got my coworker into it as well. The balance of a business credit cards. Because I bought. What equipment is $21,690? Graphics cards.

Oh, kill me. Yeah. That one. So what happened there is I got, I got two graphics cards. one that I fully paid off in cash, and then the other one that I put on the card. Okay, there's, what, what, 4090 is not $21,000. The 3090s at the time were really hard to get a hold of.

So they were like 3,000 a piece. But you don't get them because they're not worth $3,000. You're absolutely correct. They're not, not, not, especially not anymore. And I got my coworker in the time, I was telling him about all of this. And he dipped in 20 grand for himself, not from my business, from his own thing, getting a bunch of graphics cards. And I was like, hey, man, you should probably slow down.

This isn't a great idea. For crypto mining? Yes. Again, this is this got me. This is your production company business card. This makes no sense to me. This makes no sense. Yes, I, I f***ed up.

And that was a, that one is really, really on me for that. And that's why I am also fully responsible for paying off that card. When did you realize you f*** up? About the time that Ethereum crashed. Okay. And when was that? Eight months ago. So you realized you fucked up eight months ago, yet you only have about $300 you can spend on this card before it's maxed out.

Correct. What did you do in the last six months, my dude? So when we merged finances and moved into the house, I redid the budget because the budget was really tight at the time because I wasn't making what I make now. And we on average had about $300 or $400 left over in a month. And then the credit card just kept on climbing up. And a couple months ago, after really trying to push for it. Right. When I was budgeting, and this is the important lesson that I learned here, is when you're budgeting, include interest on whatever's not been paid off yet because the interest was making it so that any time that I was trying to pay anything off, I wasn't actually paying anything off. I was just climbing myself in a more debt. You don't try to get out of a bunch of the debts at once. You focus on one at a time. Yes. And then you minimum monthly payment on the others. Yes. Whether you're avalancheing or snowballing, it doesn't matter. Yeah. Yeah. So three or four months ago, I'd.

really like hunkered down and gotten this. That's why I have this budget that I sent and started actually like, hey, this is a problem, sat down with my girlfriend and went, hey, we have a really big problem, like a really big problem. Yes. And I showed her and I said, look,

we have to pay all of this off that we didn't just have that. We had the mortgage. We had the car payment. We have a couple of a firm loans. Okay. So what did you do? We started budgeting better. Better, I say, I know you have your notes, and that's why I'm here.

We started budgeting better and really like hunkering down. I got into therapy and got her into therapy too. And I was good. Yes, and my therapist encouraged me to get myself a better wage because I was not getting paid what I was worth the time. But just, okay. Yeah. Stop for a second. Because you laid out your budget.

We'll put that on the screen. Okay, so we have auto insurance, car payment, gas, internet utilities. Food, what's food? Is that groceries? Food is everything from fast food to groceries, yeah. Okay, 700 bucks. But for two people, it's not insane. Mortgage, pets.

I was spending zero. I just recently redid that. It was at 200 as well. But her spending at 200. Yes. Jim, reasonable lawn pest therapy. Okay, that's fantastic. but in here, in your reality, I mean, first of all, yeah.

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Yes. car insurance and my car insurance my car insurance was at 240 a month and then last month because it was renewing they tried to increase it to 350 and I shopped around for a little bit and got it down to 83 and one of the things that you may or may not be too happy about is that I paid it I paid the six month all at once for the new plan so wait well not it's like $600 for the six months wait why would I be upset at that since this episode is brought to you by redfin You're listening to a podcast, which means you're probably multitasking, maybe even scrolling home listings on Redfin, saving homes without expecting to get them. But Redfin isn't just built for endless browsing.

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10% of your spending, first of all, not included in here, $810, which was not including your budget, goes into the business and you're barely getting anything from it. Okay, cool. And then he spent 7% on bull eating out. Miscellaneous extra bullshit, 7%. Subscriptions, almost 3%. Other large purchases, I mean, so some other large thing, Like toxicology, probably have to do that.

There's United. Certainly wasn't to come here. No, it was close. Lawn care and some Casper Sleep Thing and Pet Watch, vet. Oh, you got all of the big bills on there. Those were me paying off a bunch of firm bills. Cable and Chewy and $264 of Amazon spending. Yeah, that was all 20% of your spending.

20% of your overall spending was those. few things that I just said. Yes. Because the payments were that big. 20% of your spending $1,566, not including your budget. So, okay, three months ago you made a budget. Awesome congratulations. It only matters if you follow it.

You clearly didn't. And this was your most recent statement. So again, you've realized these things you budgeted. Why possibly are you only $300 away from hitting a $22,000 credit limit on a credit card? If you were budgeting the last three months, this cost. would have had more progress on it, and we certainly would have been spending $61.42 cents on purchases on it. I've been snowballing debts.

So I paid off a couple of loans. The Casper was a mattress that we had bought. I paid that off completely. The fight camp was a bit of like gym equipment that I bought for myself. I paid that off completely. The rest of it, you're absolutely right, a bunch of bullshit. Yeah.

And what we don't do on a card, even if we're snowballing, If we're in that system, we're not spending money on it. And yes, these are business expenses. Yes, you can write them off. But if we're not paying off the card, if we're not even coming close to paying off the card, and you have insane interest accruing it on a monthly basis, and you're almost at the max.

We put these in a business checking account is where it gets paid for, my dude. So you're not adding to a balance that gets $4,000 sucked away from you this year so far. From your business, that makes what? What was it again? $6,000 a year? Yeah, $4,000 this year so far has been sucked from that business. It's going to be $5,000 by the end of the year, if not more, at a 24.49% interest rate.

It is a problem. Stop this. Stop these payments. Put them on a business checking account. Yes, sir. Okay. So we have your mortgage. We have your business card.

And here's just an other insane one. Now this is just. That is her car. Her card. Now she's not here. Do I have access to her spending accounts? Oh, yes, because you're- It's all through my chase account. Yeah. Yeah. So this was a card that we got as soon as we got into the house because she was- We got she got. Well, she got, yes. It's only in her name. Yes, it's just in her name. Okay, then she got. And I encouraged her to do it so that we could start getting points on that one. Yeah, yes. Yes. Yes.

And I didn't have any access to see it. I just was making the payments on it every month. And then as soon as I shot it, it was bad. As soon as you saw it, you didn't have access to it. If your guys' money is combined, you're sitting down on a monthly basis and going over what the accounts look like, what the spending was, what the budget was and what next month's budget is, yeah? And we do that now.

Good. Yes. Thank goodness. Yeah. As soon as I saw it jump from 4,000 to the 8,000 that you're seeing now, and I went, okay, I can't not take care of this anymore. So this is $8,640. Yes.

With a minimum monthly payment of $292.32.31. Death, insanity. Death, death, death, $207 of interest lost a month. $208 rounded by one cent. Okay. $160 of purchases on here. It doesn't make any sense. We got those switched over.

Those aren't coming out of that account anymore. It's coming out of the one that we use day to day. Right before you showed up here because again, this was just, this, this just happened. It did just happen. Amazon, Amazon, Amazon. And this is her and she went to the, your shop and spent money there. It's a popular place. Amazon, some snack vending machine.

Lovely. We need to do that. I don't know what SE 40523 is. Maybe it's gas. That's gas. Only $9 a gas. Is it in Bernie? Does it say Bernie on there?

Yes. Okay. Then she was getting food at the gas station. Tikitos. Okay. On a card that we can't pay off. On a card that's losing interest, kill me now. I have been making her lunches every day now so that she stops going.

Why, she can't make herself lunch? She's not a responsible adult. I make it because I love her. That's her. I can support. 100% support that. $1,148,000 has been sucked. from her existence.

Yes. And all y'all's future this year's so far on interest at basically a 30% interest rate. Now we have a Chase Sapphire card. That is the main one then. This is yours? Yeah. Only you are on this. Yes.

Okay. That's the one where all the bills come out of two. $8,1502. Why? Why would bills come out of a credit card if you're not paying it off again? Stop with this. You're fucking with me. Are you memeing on me?

I'm not. I'm not. What is the balance on that at that point? 8,152. What's it at now? It is at 4,643. And our bill is still on it? My bills are still on it.

That doesn't make sense. If there's that, if that, if that, we lost $138 of interest on this, which means you're losing still about $75 bucks on it in a month, even if that bounces. Yes. We're not putting bills on it. It doesn't happen.

The minimum month of payment of $219, it's probably at what? Like $150, something like that? Oh, yeah. But I'm making more than the bill. This is the first one that's getting paid all the way off. Well, second one that's getting paid all the way off. The first one I think I... Oh, bills.

We put bills on here, as the words he said. Bills? Bills is what we put on here. Fibills. Bills. Bills. Oh. Do you know what?

Pink means it means bull. I mean you don't need to be buying bills. I put bills on here. Waterburger Heroes hide out. PayPal on something. Positive vibes. McDonald's Brewhouse, Raman. Little Caesars.

Your shop. Tacos. Super groupies. Your shop. Raising Cains. You breed. Your shop. Something watches.

And Sonic and Amusements. Amusements. Your shop. Michael Stores. Sonic. Oh, Blizzard. Something. McDonald's Sonic.

Amusements. And, oh, we got some tequitos and Alamo draft house or something. Or animal, something. And, oh, well, you're in San Antonio. So maybe it's the actual animal. I don't know. Sonic drive and

your shop amusements you did this amusement thing every second of your life Barnes & Noble your shop your shop Nyax Amusements Amusements

Casper Sleep Why is there $144 from Cassus asleep? Because you didn't get a mattress What is this? It was pillows You didn't have pillows? We did They were just three years old

Oh my good Well I guess I don't know What the average person is supposed to do But I slept I didn't either. I didn't either. Just recently, I think I had the same pillow since I moved into college until, no, maybe even like through high school until just recently.

But I don't know if that's what people are supposed to do. I always told it was really bad for your skin. It probably is. Well, I mean, I changed my pillow cases constantly. But yeah, yeah. Watch mine like. No, I mean, I probably get it wrong. But you definitely went and got expensive.

They're expensive. Yeah, it was for two pillows. Pet watch. Watch talk goes. Pet watch is the pet insurance. Why are you getting charged some? watch all the time. Is it all the time? I don't know. 14 bucks, 15 bucks there, 100 bucks

there. Yeah, I need to get that checked out. I don't know what that is. Yeah. Your shop, your shop, your shop, McDonald's, Sonic, Your Shop, Sonic, McDonald's, Uber Eats, Your Shop, Sonic, Taco, Sonic, Your Shop, Your Shop, USPS, I mean, that can be, okay. McDonald's, Torchies, Chinese dinner, diner, watch Gang,

your shop, tacos, McDonald's, you're killing me, you're ruining me, you're destroying my existence right now, McDonald's, Chipotle, your shop, five guys, HBO Max, Amusements, Avine, $503 of interest charges, so far I've sucked to me, $95 in interest

and fees so far this year, and this is at 24%, 23%, bills, these are not bills. These is, again, I want to make sure it doesn't show any personal information before I show it again. Okay, so two pages, two pages. Pink lines are bull.

Pink lines are bullshit. These are not bills. So do you want to correct what you said? Some of the bills are on there. And then the rest is you're just around. 99% you're just fucking around. So my spending was at 200 a month and then I was bad at spending. So I cut it down.

If you have cut it down. This is like two weeks ago. This was like two weeks ago. So no, we didn't cut it down. You're like, okay, you know you're coming on the show. So we act good for a week. I don't count that. So why are we going out to eat and why are we spending that much money and why are we going

crazy? Again, 7% was on bull's food and other miscellaneous bullshit, an additional 7%. Most of it on there, some on a checking account to come, but not much. Why are you doing that if we have this really bad debt and you decided it's really bad? You decided six months ago. Oops, I made a decision. Why are we eating out every single second of our? a wife if you know you want to get out of the debt, especially for the sake of your business.

You have employees to take care of now. Multiple. It's a mix of poor time management and laziness. About half the time I'll make something at home. But I'm working from nine in the morning to six o'clock in the evening and then I'm working your girlfriend. Food every day. I do.

Make double. not make double make double damn new shirt I'm afraid if I made a new shirt you'd go spend money on a credit card and buy it I very intentionally this is a funny little side bit

real quick Greg said that we should have gotten the tequito shirts before we came here and I told him that you said very specifically do not do that if you're in debt you're absolutely damn right so if you're in debt don't buy the tequito shirt absolutely not you would have ruined me

You already have. America's Press Gold Card. Your version. Yes, that is my gold card. I'm having Harbourn. I need to eat a tongue like crazy. It's the ranch, the ranch ships that we had. For one second, let me.

Now I'm on this bad boy. No worries. On here we have $14,191. So the $414.14 minimum monthly payment. These minimal monthly payments are stacking up and they are insane. They are drowning you $275 an interest stolen from you $1,000 of purchases

on a card that's $800 from being maxed out Why are we putting $1,000? Dude, you're killing me. I don't know. I don't know. Again, yes, sure you may have corrected things for a couple weeks, but you decided six months ago

that things were f***ed up. And you're walking in two weeks old statements and I'm seeing this. What am I supposed to think? think, man. That's why I'm here. Yeah, absolutely. Get some better strategies.

Amazon, Amazon, some Apple payment, Amazon, join, fight camp. Oh my gosh. That got canceled too. Cable, good. Funimation productions,

I'd cancel that. I did. I'd cancel it. I'd cancel. That one also got canceled. Amazon, Disney Plus, I'd cancel. Yes, Disney Plus, I don't think did, but. Brewhouse.

Once a stroke is done, you can cancel it. Brewhouse. Kindle, Apple, Amazon, Dropbox. That's for business. Put it in your business checking, dude. That one needs to move. Amazon. I'm glad you're taking notes.

So I do appreciate that. Patreon. I'm sorry, buddy. I cut the Patreon out too. Good, good. Because you don't give people money right now. You get out of debt, then you can do that. Yes.

Yes. Amazon. Apple. More funeration. Stylus summits. Stylist submits. That's my. friends thing that I support.

No supporting. You support yourself and then you support more in the future when you have when you're in a better position. Movie pass, you don't need to be doing it. I know, yes, it saves money than more tickets and I know you're big into film and all that good stuff. You can't afford it right now.

So it's not a thing. All right. Movie pass. And all these Apple subscriptions or payments you got because I don't know where they're going. You got to stop. Well, this one's at a record source. Yeah,

I stopped. I stopped the Apple ones. The only one that's currently there is Apple music. And it's because I pay for a family plan. A couple of my friends are on it. Is that a car wash? Is that a car wash? That is a car was canceled.

Correct? We talked about this one. Okay. It did not get canceled. It is now. Little Caesars, Amazon, Uber 1, canceled. So you have a car. You can get places.

Yeah. Yes. $1,471 on this card alone has been squeezed from you this year. What are we at? Five, six thousand dollars has been squeezed from your existence as year so far. Yep. Total fees $250 bucks as well. And 24.24% interest rate.

death. It's just stupid. It just doesn't make sense. Okay, first of all, let me be very clear. Yeah, before we get into the checking accounts, you're not a credit card person, and you know this. If you know this, chop it up, remove it from your auto pays and remove it from your Apple wallet, all that.

Remove it. You can not have access to the food. You can't, because you have access to it, you go and you spend all your bullshit eating out minimum once a day on it. That can't be a thing. Because even if you continue that bullshit, I hope you don't. It's at least going to a checking account where you're not going to be accruing interest on the new balance that you're putting on a credit card.

You're not a credit card person. That's fine. The vast majority of people aren't. Cut them up. Remove them from their accounts. Pay them off. Close the accounts. Done.

Done. Checking account. And you're like, okay, this is a pass-through to pay for. Well, actually, I don't have your car statement.

So you have a card debt, correct? Yes. I have the information for it right here, though. What's your car? It is a 20-23- Toyota Camry.

So you got a new car? I love Toyota Camry, but why'd you get a new car in a position? It is September. Before that, I wasn't driving a car. Okay. Well,

I was driving a car, but I was driving a car that my dad owned, and then he gave it to somebody else. Lovely. Why'd you get a new car? Because at the time when I was, at the time, when I wasn't in a bunch of debt,

it made more sense to take the new car. In September? September. All this has come from September? in one year? Except for the business one, but yes. Even still? Yeah, the rest of the credit card deck came from a year?

Oh, that's terrifying. That's terrifying. I'm scared for what will happen from here from a year on. I'm hopeful. What's the balance on this car? The balance on the car is, sorry, the balance on the car is $28,052. $27 at 3.5% interest.

Oh, that's okay. The interest is okay. minimum monthly payment and the term 515 and it is a six year loan okay you broke it you broke the rules man i know it's supposed to be if you get a car i mean come on it has to be i also didn't put anything down on it yeah i was going to say before i learned the rule 10% down or something has to be three years and has to be less than 8% yeah so you kill me at least for the money guys and i love the money guys i learned about them recently because of you they're great They are really good.

They're really great. They're really great. They're coming down here soon. I'm excited. Oh, awesome. 102 bucks in a checking account. That's a scary balance.

It's a terrifying balance. Yeah, I don't currently have any things. Okay, but this is your checking. What if a payment happens? I balance the payment. So the mortgage payment and the car payment,

I make sure that there's a balance in the account for when those go through. Otherwise, I put as much as I can towards the credit cards. This is crazy. Affirm. That should have been right before I paid it. If it's a big amount, they're done. Yeah, they're all dead.

No more. No more. You're borrowing to exist. No more. There's a firm, affirm, a firm, a firm.

American espousand there's a Toyota payment. There's a firm, a firm. We spent hundreds and a hundred. So 543, 500, $1.15, 368, and 900 to a firm.

For what? What did you affirm? Oh, those were just individual payments through the month to get rid of the rest of the What did you? Choice hotels get you more of what you

value. Here's a little tune to help you remember. Same drive different day. Don't you wish you were getting away? Pack your beds and come on through Texas, Ohio, Alaska, we're up there too. Comfort in, it's calling

your name. Save on the stay. Oh, and free waffles are yours to claim. Well, I hope you like my little song book direct at Doorsvilletales.com. Firm, though. Oh, it was the gym equipment for my house.

Gym equipment. Just go to a gym. You have a gym subscription. We have the gym subscription. And the mattress, which are both paid off now. You're making me sweat. I don't know if it's warm in here or I'm stressed or both. You're making me sweat.

Maybe it's warm in here then. This is the business account, isn't it? Which one? Oh, no, that Randolph Brooks is another personal account of mine. I don't have the business checking account? No, no, the business checking account stays at like $100. Do you guys have employees? Just that one.

Oh, what about the card shop? The card shop has eight employees, but that's all, that's all separate. That takes care of itself. Yeah. So this is another checking account of you? Yes. So 762 on here is pretty good, and mostly is just setting things around. It wasn't anything crazy here.

Yeah. I split my income into. God, you mentioned beforehand that you didn't have a statement, but do you have student loans as well? I do. Yikes. You'll be, yeah, it's yikes until it's a little bit not yikes. It's, I went to college for a semester and then I dropped out.

It was like $1,500 of student loans. At the time, I could have paid it off, but because it was the oldest thing on my credit and I was trying to build my credit, I made the minimum $50 payments a month. And then they got deferred. It is $14.13.85. So $1,413.85. Okay So we made

A little bit of progress Not much but $50 minimum payment Starting again next month Correct Ready? Yes Have you set up recurring? Yeah,

Yeah, I already did Good luck They even sold it to a new company So I had to make a whole new account That's probably what, like 4% Oh,

Yeah, is 3.55 Is that it? Is that the end of the debts? That is the end of the debts What's her income? Because you have her debt in here And you're acting like a married couple Her income.

Her income is on a monthly basis, $2564. Yeah, $2564. Post or free. That's after taxes. That's what hits the account. So we have about $9,000 coming in every month.

Okay, so I would never tell anyone to budget, well, have combined accounts and be on each other's debts, like a mortgage and stuff like that until we're married. You guys are already doing it, and I do situation to situation that's very clear. from this conversation, just your guys' relationship and wanting to get married next year, you guys aren't going to change that. So I would just go off of where you guys are just so there's a better chance for you being

successful in the end. So we will combine that income even though I hate it. But again, I would rather you be more successful in the end than not. I would separate it if I were you for now. But again, it doesn't seem like that's going to be anything. 9,064. That is probably what comes on a monthly basis. That is about what I have, yes.

Debt including mortgage, let me add all these lovely minimums. With student loan starting with my new estimated Sapphire payment and mortgage, 4,255 a month. Which, okay, so there's half our income gone, essentially. Yeah, to debt. Going to debt, 50%. Jeez. My gosh. Which is interesting.

Okay. Utilities, Internet. what's that for the household? Utilities on a not hot Texas summer month average around 200 months. So it's a hot Texas summer a month. So what is this? What is it?

My water payment was about 50. Electricity was 200. And then internet's 70 because I get Google Fiber. Okay. Phone bills? Paid through the business. Through my dad's business. Both of you?

No. Hers is paid by her dad. Mine is paid by my dad's business. How old is you? 22. Okay. Okay. Car insurance, what's that again?

Car insurance went down to 83 a month, but I paid it all at once. But we still budget, yes. Yeah, we budgeted in for 83 a month. Okay. We spent on gas in a. Okay, I don't think you could find it. How much you spend on gas? So I budget $200 a month for gas, and then my gas gets paid by my,

dad's business as a perk and her gas gets paid by her dad because he understands our situation. You guys are in an ultimate opportunity. Does he understand that you guys are picking a overpaying off your debt? No. Then no, he's going to. He does not understand your situation. No, now he's enabling your situation. It's what he's doing. No fault of his own. No. Do you guys? He's a lovely man. I'm sure. That's lovely. How much is in Yoto saving? Yada. A Yada. So I had a Yada account thanks to Graham. and there was about $250 in there. It was.

And I took it out so I could pay out more debts. So we have $0 in savings. $0 in savings. I also had investment accounts, and I withdrew everything from those to help pay off debts. Here's what we're doing. $500 a month for groceries for the both of you. Okay.

Or meal prepping like crazy. It's meal prepped. It's meal prepped. It's meal prepped. It's meal prep probably twice a week. $500 a month for groceries. $500. It is.

all that stuff makeup blah blah blah 150 bucks a month any other payments you guys must take care of the the animals if you want to not have that in groceries yeah if you do we that's fine i i budget it's not that but i budget that just because of their medicines that come out every three months um heart guard yep prevecto that kind of stuff um the $15 gym payment oh yes therapy. Oh, yes. How much? For both of us, it's $413 a month.

$4.13? Yes, $4.13. Okay. Anything else? And then I pay a long guy in pest control. No, you don't. I knew this one was coming. Pest control, I can accept.

Long guy now. What would it be for just pest control? Pest control, they come out quarterly, and it comes out to about 40 months. Okay. I have a long guy. It's great. I want you to eventually.

You don't have it when you have bad debt. Got it. Her parents are close. So about 40 minutes. Okay. You borrow a lawn more once every two weeks. The grass doesn't grow right now anyway. Everyone's on.

It's not. Everyone's on restrictions anyway, so you don't need that. I did put $200 in spending for her. Nope. This was one that I want to explain just a little bit before you cut it out. When we were talking about finances and I was starting to become a hard about things, it built a little bit of a rift between. us because I would because she would go, hey, I need $15 for makeup and I go, no, you don't.

Well, remember, I gave you a makeup fund. Yes, you did. Yes, you did. And so I came to $200 in spending for her, which was a no questions asked spending. Like she gets to, because I don't personally think, I understand that makeup is an important thing for her. I don't personally think that it's a necessary expense and she does go overboard with this sometimes.

It's not, but I get it for self-confidence reasons, which is why I put it in the toilet paper. Okay. Then that is what will have it. Now you guys go to therapy. You guys are getting married. Have you considered doing a potential copying out one of those sessions? Yeah. Yeah, we're going to.

I talked with my therapist yesterday about it. Is that a hub? Because this is, again, you guys are not combined. But again, I have to treat you like a married couple because you refuse to the act in the other way. So it's the only way to hopefully get you to a situation anyway. But whatever. Because of that, you guys have to approach these situations together.

You can't be like this is. what we're doing because we don't, uh, marriage. Starting a business can seem like a daunting task, unless you have a partner like Shopify. They have the tools you need to start and grow your business. From designing a website to marketing to selling and beyond, Shopify can help with everything you need. There's a reason millions of companies like Mattel, Heinz, and all birds continue to trust and use them. With Shopify on your side, turn your big business idea into sign up for your $1 per month trial at Shopify.com slash special offer.

It doesn't end. Well, it ends, but it doesn't go to a place that's good. And I'm sorry, she also can't have that. I was thinking that your budget was actually going to add up to less. Because of that, I'm actually going to redo the math, because that felt high. But if it's where it landed, she certainly can't have that $200. Okay. We're going to try to get out of debt.

Okay, there it is. Yes. I added it wrong the first time. So maybe... Since makeup and stuff is in there, let's give her $100. All right. If you guys can get to a point where you guys are on the same page, both is enthusiastic about getting out of the debt,

so you guys have a bright future together. Sure, let's cut it. But, again, person to person, nothing's ever one size fits all. Right. Well, she has a lot of makeup allergy. and so she was constantly trying different things. So 6,026. So you need to survive on a monthly basis.

That's it. That sounds about right. We're just going to say you have $3,000 left. That is what I have to. 3,000 dollars left on a monthly basis. Lovely. So first two months, you guys are, first of all, we're following this budget.

You weren't following this budget. Not even close. It was stupid. You're okay. Everything in checking counts. That's okay. Yes, sir. So what we do from here,

first two months, you set the money aside in a high-yield savings account. You can use what you use. I use so fine. Either way it's fine. $3,000 and then $3,000 to $6,000. You have enough to survive for a month if something were to happen to either of your incomes. Lovely. So two months, we have a one-month emergency fund. Oh, man, your balance is on these things. It was ridiculous. Okay, so month number three, we put it towards the Sapphire car. You're doing minimum monthly payments until you have that one of the month of Mergers Fund, by the way. Okay. Minim monthly payments and we're putting every, if the $3,000 towards the Sapphire card in month

number three, then we're finishing it in month number four and we're putting what's remaining towards the gold card. Hers or mine? Probably hers, right? The lower one? Hers, if you're going to, again, act like it's a marriage that's not real. And then after that point, it'll probably be about $7. thousand on our card so again we did so we just finished month number four and into month number five

three hundred it's going to take an additional two and a half months of five okay halfway through seven we'll call just to be conservative we're entering month number eight now gold card is done what you guys have left over is getting much higher because the minimum monthly payments on these are crazy sapphire's gone gold card is higher we now head on over to lovely old your gold card of which will be because nothing is being spent on it anymore

but the interest is still insane heading into month of Bray let's say it's $12,000 at that point aside that by the $3,500 you guys have left over at this point it's going to take an additional three and a half let's call it for months so we just finished the year

heading into the first month of the second year minimum monthly payments on the student loans until it's paid off car at least it's a car that's going to last oh yeah you're driving this thing into the ground i would minimum monthly payment until it's paid off if rates ever come down again i would actually get it on a three-year loan okay refinance it but i don't want you to get a higher rate at this point so we're minimum monthly payment on that minimum monthly payment on the student loans until it's paid off because the rates are whatever and i need you to you don't have anything invested do i do in how much uh Roth IRA rates about $1,100 okay so you have nothing invested because that's not going to retire off of that compound growing over the years.

So we need you to start catching up on that because you're, you know, at the point where we're headed into month number two or month number one of year number two, you're over halfway through your best decade of compound growth. So we need you to start throwing monies in there. 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. Blue business. It's going to be worth probably $17,000 around that time because the interest rate is death, death, death and you have about $4,000 off on a monthly basis now and hopefully income. are increasing all throughout this.

That's going to take about four and a half months. Okay, lovely. So one year, four and a half months, that's gone. The house, sure you can refinance it if rates ever get lower than that eventually, but right now we're probably minimum monthly payment until it's paid off anyway. What you could do just just hit principal a little more. Yeah. At this time, let's do minimum monthly payments on the house car student loans.

And let's take of the $4,000 you need now about $4,000. $1,000 to survive on a monthly basis times that by 12. So 48th. No, no, no, no. Sorry. Well, you actually are a small business owner, so I probably normally do want a small business owner to have a larger emergency fund. So you need $4,000 to survive on a monthly basis at this point because the debts have been cut aggressively. It's called $4,500.

Times that by nine months. That's $40,000, $500, minus the $6,000 you already have in there. So, okay, $34,500. that by the now $4,500 you have left on a monthly basis. So an additional eight months. So, okay, cool. This is a two-year process from paying off the bad debts and having a fully funded emergency fund.

Once you're there and you're 27, what I need you to do is 50, 30, 20, so we're doing the 50% of our needs and max. I would have that lower if possible, but that's where you max it for your grocery and blah, blah, blah, and everything spending that our needs to exist. and then I need to start throwing 20% of your money towards investments. Always max out the Roth IRA and then probably throw the rest in your 401K options if you have those as well.

And then 30% can be on money again on fun. Other than her $100 that she gets, all this eating out and bull-fant tiquitos and going crazy eating out every second of your life and all these extra subscriptions, they don't exist for two years. You do free fun or you included her in her $100 to spend it if she wants to go get Mickey D's for the two of you. Utilize the parents, have the parents take you out. they sound like pleasant people so get to meals on there yeah

then at that point what would I try to include in your need category and you can the 2175 for your mortgage I would just put that at like 2,500 or if you're feeling wild $3,000 right yeah you just start to it you'll pay it off earlier hitting the principal a little more

since this is 6% and that's what I'm doing because I'm getting a newer house at you know the rate that I wasn't thrilled with kind of like you so I'm throwing extra towards it about an extra 1,000 so you can attack the principal at that point. But we have to wait until we're fully out of debt. And we have a full of fund of emergency fund.

So then 50, 30, 20 from there. That's what I would do. And I think as long as you actually do that and sacrifice now, you guys are young enough and you'll be married at that point. And you guys, she's all, your 50, 30, 20 is a household. So not just your income, but hers as well. And you guys are going to retire multi-millionaires regardless of what happens with your business as long as you.

Yeah, because this doesn't account any extra from those either. Yeah. Yeah, exactly, exactly. or them going under. But if your dad's business goes under, that would be unfortunate because that is your very much primary income. What does she do for a living? She currently works for the technology department of the school district.

Very cool. Very cool. Yes. So that's what I think. I think you've been around. Absolutely. And you haven't been focused. And because of that,

you need to take two years to clean up your... This is a crazy amount of debt, but I think you're in fortunate enough situations together, you and your girlfriend, where you can get out of it. much quicker than the normal person would get out of it. So be thankful when it comes to that. I think this would take aggressively for the average American five to six years to do.

So be happy it's only two. Sacrifice to two years and you guys will retire multi-millionaires if you follow this. Yeah. It's worth it. I appreciate that. Any final thoughts? I think you hit everything pretty much on the head. Definitely need to switch everything to a checking account.

We were talking about that before I came. and decided not to do it until after we got your thoughts on it, even though I pretty much figured you were going to say that. No, I think you got it. For Michael, that has to be some of the worst credit card debt I've ever seen. When it comes to his hammer financial score, spending in a budget, 2 out of 10, it was bad. It was all going to bullshit, continuing bad habits.

That was rough. His debt one out of 10, it's only giving him a 1, not a 0 because there's no IRS debt. collections, but still, that is absolutely horrendous credit card debt, one out of ten. Emergency fund, there's nothing zero out of ten. Retirement, he just started. It's basically nothing. It's certainly behind where I'd want him to be one out of ten. Real estate, he actually does have a house.

It's a little risky because his girlfriend, not wife, is also on the mortgage, and they only have a 3% equity position. And the real estate market has been questionable this year so far. So who even knows if they have equity in the home, actually? So, and I'm giving that a 3 out of 10. Hammer Financial Score overall 1.5 out of 10. Make sure to check out all the resources linked in the description below. They are what I use or would use in specific situations.

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