Financial Audit - Pathetic Loser Borrows $450,000 To Date College Girls | Financial Audit

Episode Date: September 18, 2024

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I had an RDR8 and I lost it. Someone that has a lot of debt to pay off and is about to get a car repo because the payments are too high. You seem like someone that is trying to act rich. I try to sell it so that I can fund the business. So why are you paying? I mean, it was my first time doing it. And you allowed as a first time to borrow 230? What the fuck is happening?

I don't find it very funny. That's an insane amount of debt. This is a mortgage. Hi, my name is Jose. I am 30 years old and I am based out of San Antonio. This is financial audit. Thanks for coming up from San Antonio. What do you do for a living and I kind of have

some information on that based on loans for businesses, but what do you do for a living? So I am a general manager at a roofing company. Okay, and what do you make in this position? Base pay is $20,000 a year, but commissions-wise, I made $176K last year. Okay, how do you get the commissions? Selling roofs, selling roofs, managing teams.

Um, yeah, just, you know, knowing how to sell, hyping people up, being a manager, getting overrides from the entire office. 20 hours a week are you working? I'm, I mean, I don't really keep track. I just do, uh, I don't know, seven days a week, I guess, pretty much. Seven days a week. Yeah. Okay.

Total income. I only have VA benefits coming in. Oh, so that's, that's completely separate. I have no other income coming in. Oh, okay. Well, that, that, would be my income for that. And then the VA would be the, uh,

well, right, but I saw nothing else come in, other than the VA in your statements. In my statements, I thought I told you guys the, I mean, I showed my statements for the bank statements and everything,

and then all of that was on there. There was no payroll. Why do you get paid? What do you get paid through? 1099. ADP. Do you through ADP? Yeah.

Do I check? Physical? Uh, no, direct deposit. it's in the bank savings. We'll look. Yeah, it's in the bank savings. Which bank? Bank of America.

Okay. I'm taking an extra look right now, but we only had VA benefits of $3,700 coming in. So what did you serve? I was in the Army. Okay. And what are the benefits? So with 100% disability, you get home. Why do you have 100% disability?

I get panic attacks. I have a, knee issues lower back issues shoulder issues uh you know what are those other ones stem from uh i had some issues in the military uh i had a um man you're about it but i mean i wasn't expecting this uh really yeah i wasn't expecting that okay i ask about anything so i want to know because pretty almost every veteran that has come on this show has essentially some form of disability it almost feels like is there anyone that doesn't so i didn't deploy right i didn't deploy mine came from I'm just going to say abuse.

Oh, shit. Yeah, I used to be 120 pounds when I was in the military. How however are you now? 200. Oh, the bodybuilder now. So I got a lot bigger and I, you know, learn how to fight all this other stuff. Oh, yeah, you could kick my. I would never.

But essentially at the time I was, you know, a little bit under 120 pounds. So I was very easily taking advantage of. I'm sorry, that's horrible. I'll say that. No, that's horrible. It is what it is. It's fine. It's not. It's not fine. But I appreciate your honesty. And that is that's fucked up. Yeah. And I'm glad you're getting help for that. It is what it is. Honestly, like that ass. It's just it happens. Things happen. It is what it is. You know, if I, if I stay stuck there, then I don't move forward. Are we in therapy?

No. I'm not in therapy. No. Well, no. Any reason? I try to avoid people as much as possible. before. I'm very anti-social. Like, even here, I'm just sitting here like, you know, like shaking and stuff for no reason. Like, it's just, it just comes from it. That doesn't stop me from doing leadership skills when I need to. And I can switch that. I can, like, turn that on and how many people do you work with this job? About 15, 20. It's a lot of people. Yeah. Okay. No, we only had, so we had an online banking transfer from an other checking account come in 3,737 in the Air Bank of America. Yeah, that would be the military. We have nothing else. I can, okay, well, I can definitely collared and we've looked and we've controlled theft and everything. There's no way.

You got somebody that needs some glasses back there because it's... I guess and we all have them. We're nerds. If I pull up my, that same checking account, it'll say in the last 12 months this amount has been deposited in that same one. Okay, does it say deposited from where?

No, it just says deposited in general. My producer almost wants to pull, well, he wants me to pull out the statement to shove it in your face because he spent so much time on it. But we'll get there. We'll get there. The thing that interests me the most is, I mean, we have a business loan, a business loan of $232,351. But you're working as a general manager. So are you doing okay? You're picking it yourself. Oh, I'm good. I'm telling it's one of those things. I'm fine. I'm fine. I'm fine. Keep you going. Okay. I just say I want to make sure you're good.

Yeah, $232,351. Yeah, so, yeah. Of a business loan. Yeah, business. It doesn't sound like you're working in this business. So, truth be told, my issues got in the way of it. The issues that we discussed? Yeah.

Got in the way of it. And I found myself hiding at home a lot too much. Was it like a phobia, almost? Yeah. It's like, you know, if whenever I need to get out of it, I can. but I would stay at home as much as possible and just stay away from all of it as much as I could, not realizing, you know, how bad things we're getting. Because in like the business side of things, you don't really see profit margin and stuff for like three months down the line, right?

So when you catch something, it's kind of too late. And then we try to fix something, it'll still take another three months on top of that to try to fix it. So it just became like a huge snowball effect that just kind of, yeah. So where is whatever that was now? Well, you know, I spent it trying to, you know, fix the business. Okay. So how was the money that you borrowed, reinvested into the business? So that's a lot of money.

$232,03,351. Yeah. Where did that go? What's the business? So the business is within construction, completely separate from my main job. That was done with a partner of mine, which. Really? So there's a partnership involved as well.

Yes, he funded the money for that business. So more money on top of the 232. Yeah, so you funded- How much? He funded $70K up front of his own money. Construction? Why did you guys need? So you weren't funding the construction

through the orders of the construction project through the contracting projects. Yeah, it was, I mean, I kept my main job completely separate from the business. No, I'm talking about in this business, if there was a project, did you guys charge nothing up front? So it's in- Because it sounds like you were just funding everything.

So it's insurance work. So a lot of money was lost in the process from the sales managers not doing their job properly. And me on top of that not managing properly in that area. Over how long were you not managing? About a year. A year? This much debt in a year? Yeah.

So it's pretty bad. So essentially the... You're 61 days late. Yeah. And over. What are you doing? So with insurance. What the fuck is happening? So I don't find it very funny. That's an insane amount of debt. This is a fucking mortgage. It's a nervous laugh. It's a nervous laugh. It's a nervous laugh. Don't do it's a cop laugh. Okay. This is, but this is a, this is a, that's a mortgage, man. Yeah, for sure. So as many of you know, before I started this YouTube channel, before I started running this business, I was in a lot of debt. It was overwhelmed. and it is one of the main reasons I started this channel to share information with people and tools that can genuinely help them find financial freedom or build businesses. For me, the most important thing was making a plan and creating a way to track my progress. So I did what many people do. I took notes on my phone or created a spreadsheet.

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Now, let's get back to the episode. So how it works is with insurance deals, let's say you have, you know, 10,000. right insurance will only give you about 20% of the entire thing up front now grab that 10 and multiply it by two or three in a project yeah per price cost 200 thousand dollars it's like 20 right it's like 20 what the I still don't understand that 230 out within 10 projects you're at 200k within 10 projects you're doing 10 at the same time because if you're completing some of the other projects you get the rest that's not how it works unfortunately I wish that's how describe so essentially how it works is you get paid a certain amount at front so it is is, you know, if the job is, you know, 20K, sometimes it only give you 2K up front out of that 20,000. Up front. But you still have to, yes, 2,000 out of 20,000. When you're done, then what?

Then after we're done, then we have to tell the homeowner, hey, tell your insurance, the job is done. And then insurance, you know, we'll give you the rest. Well, there you go. You weren't doing 10 at the same time. The problem is homeowners stopped answering the phones or they would keep the tech. There has to be some legal ramifications you can pursue. There is.

It's called insurance fraud. and I have about 17 homeowners being sued at the moment. How are you funding that? Okay. Credit cards. First of all, that seems like a lot over the course of a year. And if it is so common that you've been able to stack up 17 in just the course of a year, then every contractor in the world would essentially be suing basically 17 homeowners a year for insurance fraud.

Because that seems like a beyond significant amount, unless you were just irresponsible and horrible at communication. which contractors are known for in general, the communication part. But I don't know. It seems like you're well above the norm. Or everyone else would be suffering this. There is a mix of a lot of things that went south. That's just one of the things that went south along with probably. I would probably bring up probably like five other things.

How much is OD right now? 130,000. Okay, but that covers half of this. Yes. So what else then? So I had a manager that was pushing jobs through that were unprofitable and that were profitable so that he would hit his quotes, his monthly quotes, so that he would get bonuses. Right. Bonuses from you.

Yes. From the company. Well, when did you start learning that? Because that's something you should be able to see if you're doing your books. Well, that's the thing. I mean, it was my first time doing it. So I wasn't doing very good. Like running a business like that.

And you allowed as a first time to borrow 230? Well, not me, but the company that, you know, I. I can get the materials and stuff from. Oh, wait. This is a loan to the materials company itself, like an internal loan? So essentially I have different loans. One, I have the SBA loan, right? So that's right there is like $130,000.

Then I have the construction company that gives us our materials, which is like $230,000 on top of that. And then I have some other stuff as well that, you know, just adds to it. So this is all in material costs. It's $230. Yeah, it's all material cost. That's all material cost. And you guys were taking a lot at a loss so that he could hit his bonus quota.

Yes, the problem was I wasn't realizing that. It has to be like half. Yeah. And then the other half, they just weren't, they were just committing insurance fraud? Yeah, so I have actually just had a couple people served this week about it. So using four different sources from national insurance crime. and a contracting research site in the field that you were in specifically and a law set as well. It's very uncommon that roofing contractors have to take a legal action against homeowners for this.

So there has to be more than they were just around. So, I mean, again, there's still more to it on top of that. So on top of this, our out-the-door expenses were $20,000 a month, like just to operate, just our operating expenses. When you look at a job, let's say 100K, our profit margins was really low, about 25%. Percent? Yeah, about 25% profit margins. I mean, when we're talking in the world of hundreds of thousands, though, it's not the worst. But remember, so let's say you have 20K just to break even, right?

No, I understand. 100K, you're only going to get 25,000, but you only get, what was it, 20% of that 100K up front. Well, especially when you're completely mismanaging the finances and having bonus structures that don't make sense. So if after four months you collect 25K out of that 100K, but per month you have to spend $20,000 in expenses, you know. Yeah, you would need a lot of startup capital, but you did get $70,000 to start. No, that was just to that was just to get in the business.

Oh, it's almost like funding purchase orders. So it was a franchise. So it was a construction franchise. So I got, um, yeah. So they required me one. I had to get the SBA loan for $130,000. just to pay the franchise, and then we had to pay $70,000 up front just to get the franchise. And then on top of that, they wanted 6% monthly of our gross revenue, of the gross on top of that.

So it was a very, very, very... How does any franchise survive them in this? That's the thing right now. Obviously, I can't disclose the specific companies or anything like that. But out of eight, Texas branches, six have failed, and I'm one of them. Wow. And they were wondering why. And now they're being sued by a lot of other business owners.

But you've transferred those skills, I guess, and learning lessons. Yes, I definitely have for sure. I wouldn't have the knowledge that I have now if I hadn't gone through that, which now I can go in the future and turn it into something else or redo it myself without having a franchise. All right. So, materials, 230, $2,351,351,000 and $3.

What's the interest rate? Do you know? It's pretty high. It's like 12%. On 232,000. It's fucking insane, dude. Yeah. Looks like you owe like $10,000 a month.

Yeah. So you just haven't paid that for... Now let's backtrack a little bit. Now let's say, let's make this worse, right? Oh, sure. Why not? Let's make this worse, right? So let's say we have, you know, reps that. that are selling and then you have a bad month, right?

Let's say you need a break even at 20K profit a month, right? So obviously you have in that. In the construction industry. Okay. In the construction industry. Let's say the reps are selling things, right? But reps in just, you know, the office, the business itself isn't selling as much construction as it should to break even.

Well, now next month you need to make, you know, $26,000 in profit to, to cover the previous month's losses. Well, what happens when you? you have three months back to back and now you know for a fact failing business exactly now you can't have it's what are you trying to say what what i'm trying to say is you know before you have to hit 150k a month in sales to break even and make some money well if you have one bad month now the next month you have to hit you know 175 obviously and that's why a lot of businesses they again need startup costs it takes a while for it to be just you know month over month making profits like that so

there are months that are kind of like a loss leader a month Yeah. For the sake of the business. Like that's not uncommon. Yeah. So within the first year we, you know. Yeah, but you guys were funding it via horrendous debt. Yeah.

And then you just couldn't keep up with your minimum monthly payments instead of like an investment into the company. Mm-hmm. Or taking on smaller scale projects to start instead of trying to start so big that it was one year. Mm-hmm. And you had how many reps? About 15, about 15 per month. Buddy. Usually.

I think you just started too big. Yeah. You went. into a business that required having like almost hundreds of thousands of dollars coming in and out of it constantly with nothing and no ability to sustain that. Because even still, if you're doing a heavy investment month for whatever reason for, you know, big payouts at a couple months, okay, maybe you're taking a loss for that month. But a business that is coming in to be successful would have what is necessary to weather a year. of like solid losses. Yeah.

So we, we did not. And then just a horrendous bad debt to start. Okay. What do you think your financial situation is overall for you? Zero to 10. 10 being the best, zero being the worst.

Personal or business? I feel like you in general, because this is still tied to you, right? That's the problem. The problem is whenever we started it, I tied my personal. So you then. Personal guarantee.

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Personally, yes. You. Yeah, so I would probably say like a four. Four out of ten, maybe five. And I'm only saying that just... In the middle. Just straight down the middle. I'm going to say middle because I'm good.

A failed business that you still owe $2,000. $2,000 to 12% on that you are behind 9 to 12 months. Okay, great. If you watch your Hammer Financial score, it's free. Link in the description below. Also, if you have interesting stories, for what it's worth, this is at least an interesting story, interesting financial situation that we don't get to take a look at often.

So I really appreciate that. Feel free to apply to be on the show at Calebhammer.com slash reply. And give, you know, give the guests some love for being on here. Jose, you know, he's putting a shit out there, you know? Just kind of, that's really brave. So make sure you're giving the guests some love. why are we so late on this? Because technically, technically, you wouldn't have any money left over really,

but technically you are making enough to pay this. Well, I kind of, well, we kind of panicked. Okay, wait. What was your equity position? So he put 70K down. He put 70K down and I put zero down. I owned 80% of the business. He owned 20.

Did you say 80? Okay. Yeah, 80. So I owned 80, he owed 20. But he didn't have to do anything besides pay those. Is he on any of the debts? No, he's not. Okay, so.

Okay. So you feel morally responsible for any of the deaths, 20% of it? I, he doesn't feel morally responsible for any of it. Okay. Besides. Or is he legally? He feels like he's entitled to his 70K back. Well, he's not.

Probably. I mean, I understand he wants it back. I'd want it back. In my defense, you know, I lost a lot as well. Would you lose? Well, you're a dad. I lost my, I had a second home that, that I lost.

A second home? Yeah, I had a second home. You had two homes? Yeah, two homes. But you couldn't fund a business? What was the value of the second home? It was his idea. What was his idea?

His idea was he had a bunch of money sitting around. So he just wanted to invest. He wanted to do something with it. Yeah. Okay. What was the second home worth? And you had to foreclose on it? Yeah.

Oh my. So I sold it to, well, I didn't forget for clothes. I sold it. to try to fund the business, to try to help it. Oh, you didn't lose it then. But I understand.

But I lost it in time. In your head. And then on top of that, I had. What did you sell it for? Equity wise, it was about. What did you sell it for? I'm trying to remember.

I can't remember. When was it? About a year ago. How do you not know what you sold it for? Okay. What did you walk away with? Fine. I didn't walk away with much.

It was only like 40K. Like 30 or 40K. Well, that's not horrendous. Okay. Well, how long did you own it? two years. Okay, see, that's not horrendous. Yeah.

Out of all of American history, walking away with 40K after all expenses and everything. And then I lost my car. I lost my other car that I had. I had an RDR8 and I lost it. And I lost it. I tried to sell it so that I can fund the business, you know,

to help it, help it, you know, right. You're like so, you seem like someone, is that an expensive watch? No,

it's not. No. Okay. You seem like someone that is trying to act rich. Uh, An Audi R8? Yeah, I had an R2. How much is that?

What was the purchase price? It was... It was 96. You're going to punch you. And then you'd kick my... But, come on. That's crazy. And what world were you able to afford that?

Well, I was good before this. What was good? Like, my finances and stuff was good. Two homes. What's the second home? Was it a vacation home? No, it was in San Antonio as well. Like a rental?

Yeah, and I rented out. I rented it out by the room. So it increases profit margins by about 200%. Okay, well, you still walked away with the profit. Did you pay taxes on that? Yes, I did. Okay. But I owed taxes, which is why I owed a bunch of money and then I don't even get me started on like solar panels.

Is that tax? Solar panel. Yeah. I'm at home. What are you? Oh my. Yeah. So I had solar panels on that home.

My profit was going to be about 75 or 70. And then I owed taxes. And then I owed like, apparently whenever I signed for solar panels on that home, they put a lien on my property. And I didn't know. I didn't know. They told me that they told me I didn't have a lien on the property. And I didn't find out until two years later. They didn't tell you there might be some legal shady shit.

Yes, I... But also you sound the contract. But then again, where you let it straight? I don't know. There's different things that you talked to a lawyer. Yeah. It was 90,000? Yes.

2023, Audi R8. No, no, no, no, no. No, no. No, it was 2023. It was a 2014. 2014. I was going to say, because that goes for 160. Gen 1. Gen 1.

You seem all over the place, man. Yeah, so I was doing really good. Honestly, I was doing way better before I even took on this venture. And I highly, highly regret taking. the venture, but at the same time, by taking the venture, I opened up, like, a lot of skills and stuff that I can use. The thing is, I actually love the idea of people that are entrepreneur. I'm entrepreneur, you're entrepreneurial. I love the idea of trying. It doesn't work. Try again. You're hundreds of thousands of dollars into debt for that. This is falling you along. This isn't

you just trying something and then you can try the next thing. I don't care that you sold a car, sold a business. People do that in the business world, the fun business. Okay. That's, That's you taking a sacrifice, sacrificing something, and you're reinvesting. You're hundreds of thousands of dollars. So, okay, we need to continue going through these documents. I want to hear, though, because obviously it failed. When did you determine it's failed, we're no longer going to borrow money to fund it? Well, if I go, if I'm going to backtrack back in October, back in October.

Back in October. Yeah, back last year. Yeah, of last year. Back in October of last year, I saw a big, you know, a big. like downfall, I guess, of sales. We had three months back to back with like really, really bad sales. Why? Like it's a mixture of a lot of things.

It's a mixture of, you know, people were answering doors. We had a, we didn't have enough enough reps at the time. People weren't sticking with the, the, the, um, what was your cost to run the business at that time in month? Same thing, 20,000. And then one of those months, we only did 20,000 in sales. So like just one of those months alone So three months back to back losses

Yeah Yeah and then I took a loan Which should not be the end of the business by the way Well I took a loan I took a loan And it was Is that the next loan? Yeah so I took a $50,000

Which I already paid off That's not the next year So 25 25 or 50 Okay so it funds the month So it funded us for a while And then once January, February, March hit We did really good We did pretty good

Close to 200,000 Every one of those months But all that money was used to pay off the loan. That got us. Yeah, no, you locked yourself in that cycle. Again, that's why we don't, we don't scale a business to where it costs so much

until we are ready to support that for a year of assuming no revenue. You need a full year's business emergency fund set aside. Yeah, we didn't have that. We just kind of, no shit like raw dog. You're fucking, yeah, and look what raw dogging did. You got pregnant with debt. Yeah, this is what happens, buddy.

Pull out method, my man. Yep. Well, eventually you did. I want to hear about that. What was the pull out of the business? When did you guys determine, okay, we're done? It was. Wow.

So we're talking January, February, this year was successful. This is so recent. Okay. And then? Well, the problem with that is, remember, to get the money back is it takes about three to four, sometimes even six months before we even see the profits. Sure. But you said you used that to pay towards the debt.

Yeah. So we were neutral at that time. Well, neutral with the loan that I took on in October, and I'm still back in the same spot. Yeah. Okay, so go on So from there, because I was so far behind in this, in this construction business, I was so far behind on everything I wasn't being able to pay anyone. They pretty much kicked me out of the business, of the franchise.

Who did? The franchise, the business itself. The business, the overarching business. And they probably, usually in franchise agreements, there are legal rights where if, you know, based on performance, they can take over. It was one of their partners. So I owed money to their partners and you're not supposed to fall behind. Oh my gosh. You've owed money everywhere.

Yeah. Well, I mean, that's a 230. That's, that was their partner, which is, you know, they're. The construction material company was their partner. Yes, they're partner with them. So they have people start the franchise and then buy from them. Yes. All their business.

Yes. So because they were partnered with them. I think, I guess, well, McDonald's kind of. it does that in a way. So it's not, it still sounds weird. Because they were partnered with them and we owed the money and we ordered way too much money and they knew we weren't going to be able to pay it back. They gave us the notice of, hey, you have 30 days to pay back $230,000 or we're shutting

your branch down. Yeah. Why didn't you sell your first house? And I'm glad you didn't, I think, but. Well, that's my primary. My primary is protected. No, but why didn't you? Yes.

I'm just saying why didn't you try to come up with the funding via? Because at that point, I knew it wasn't going to work out. Okay, good. Yeah. Yeah. Which, that's fair. I'm glad you didn't get into like any kind of sunk loss type of mindset. Yeah.

Okay. So what is this next one that is at current balance of 149,955? We're talking hundreds of thousands that are. Oh, that's the SBA loan. That's the SBA loan. That was given directly to the franchise to open up the business. So this is the initial. So you started going in with that heavily.

Yeah, SBA. And a lot of people do open with. with an SBA loan a lot of people do it's not uncommon a lot of businesses a lot of small businesses but it's

not how I'd go yeah so right off the bat with the SBA loan right off the bat I think it was like 2000 something a month that we had to pay for that but then I

you know found out that it was like an increasing depth as well that if we don't pay off it would slowly start increasing in the amount of payments you mean if you don't pay it off is what you said

yeah if I don't If you don't pay it off. No, so like, so for example, at first it starts lower and it goes higher. To give you a chance for the business to get off the ground. So it's an accelerated loan. Exactly. Okay. Well, it is $70,000 less than you took out, you took out $220.

It is $149. Are you paying on this? I stopped paying on it because there's no business. So I stop paying on it. Well, yeah, but it is money you owe. Yeah. So, wow. Why aren't you paying?

I'm trying to figure out what the next move is and what I have to do. What I have to do. So right now I've been looking for like jobs and things like that. On the personal side, obviously because business is no more. So right now I'm trying to get a different job that pays more, which I've had success with. So you're trying to get a different job right now. Moving up from your 176, what were you going? So same thing in the roofing industry.

And I have a couple of job offers already in mind that. pay a lot more than what's a lot more what are you going to make well my base pay for for this business was 20k and i have a couple offers for 50k base and then i have one for 80 000 base yeah but how's the commission though because you're at 176 the commission is way better and it would be for a regional manager position wow um essentially overlooking all of texas okay well 2,232 a month what's the interest rate on this um on which one sba i'm not sure I have no idea on that one. Neither mind.

I just know the payments are like $2,000 a month or something. $2,2.91. So you sold your car to pay for the business. Now, San Antonio, it's not necessarily a car, or it's not necessarily public transportation city. Definitely got to have the cars around the highway. Do you have a car? Yeah, so I have other, I mean, I have other cars.

Other cars. Carss, yeah. You have all this that, and you have cars. What do you have? Well, I have a car that's completely paid off. What? I was advised not to sell it by my lawyer, so I'm not going to sell it. I have a Porsche that's paid off.

You talked to your... Wait. Wait. Wait. Is that in the episode or... What? Wait, what? Yeah, yeah. So I have a car, right? That's your lawyer told you not to tell me. No, no, not to tell you. Not to sell it. Not to sell it.

Oh, why? He told me to hold it for a year in case I want to do, you know, bankruptcy. So he said hold it for a year. Okay. Okay. So what, what Porsche? How much does it? it worth? So it's worth about 43K. It's nothing crazy. It's a Porsche 2019

Cayman 718. Sure. Okay. And then living like you're rich. And then the other one is a Tesla model Y. But that one I definitely, definitely want to get rid of for sure. Do you owe on it? Yeah. Yeah, I got it a lot on that. I don't think I have a statement for that. Yeah. I believe I

gave it to them. Or short of how much I would and everything. So you're getting rid of this? What's your plan? Now, Legitimately, guys, I believe that you, everyone in your life, everyone around us can actually take control of their financial future and make their lives better. And we've spent over a year here creating tools to help make those goals of reality. Right now, our budgeting program and investing program are bundled together at a 15% discount. And you get $100 in cash gifted to you right into your Mumu account.

There's honestly no time like the president to actually take control of your future. Don't wait. Don't let this opportunity pass you. So the plan, I spoke to my lawyer and I told them what the plan was on it. And essentially for the 2023 model Y, whenever it first came out, it was about 50, 53K. Yeah. And then Elon Musk kind of shot all of his prices down. Yes.

And now the same exact car is like 30K. So what I was planning on doing was because I used that for work and I use it for tax write-offs because, you know, electric. And then I just connected to my house. so I can write off my electricity. Not all of your electricity. Well, you know what I'm trying to say. Okay. Essentially,

well, maybe another one. Get another one. Literally the same thing, same year, same, even lower miles, except for 28,000,

30,000, and then let them take that other one. Let them take the other one. Yeah, let them take the repo? Yeah, repo that one. Yeah.

What are you, do you have any responsibility or like morals of borrowing in your life? Why? Why? It's Tesla. It's fine. They'll be fine. They'll be fine. They'll be all right. They'll be all right. They barely just started making a profit like a year ago. But even still, that's not what it's about. It's the fact that it just the way you're living life is just like you borrow debt and you never pay it. It's just so weird. I mean, I've never been in this position. I've never actually been in this position. But you are and you're doing it still now. That's your action that you're going to do. Get a $30,000 amount of why. Yeah. And even by the way, I'm surprised your tax guy didn't recognize. meant like a Model X or something because you get, because it's a certain weight class that you get the right off like a lot.

But yeah, but the Model X is also a lot more expensive. It is a lot more expensive. So I don't want to do that. Because right now for the model Y 23 with which the loan is 52K, I pay $100 a month for. Model 3. Sorry, the model Y,

that I got it in 23. So you have a loan, you're going to get a repo. You're still going to owe money on it, though, because they're going to sell it. You're going to owe the difference. Yeah. I haven't gotten that far yet. You mean that's a pretty important part of the process? I'm still thinking of what to do, right?

Well, there you go. Either way, though, I still need to get rid of that model Y and replace it with something else because I can't work in, you know, roofing with a Porsche. So I need to either get rid of the Y though. Because of how much it costs. It costs $800 a month. And on top of that, Elon purposely shut down the prices on the car. How much is owed on it still?

Like $50,000, $49? When did you get this? Last year. Oh my. This has been a weird year for you. Yes, yes. So either I need to get a cheaper one or cheaper older one or a truck instead. Why don't you sell your Porsche and pay it off?

Because I can't sell my Porsche. Oh, well, your lawyer just wants you. Yeah, I can't sell it. I would and I would do that and I would split it into two lower cars or get a much cheaper car and then use the money on, you know, to invest or pay something off or something. But he didn't recommend doing that. Oh, this is a mess. Yeah, he didn't recommend doing that because of the situation. and he said hold it for a full year.

Oh, man. Okay. I'll see if this Tesla's in here. I don't think I saw it, but okay. I have an Amex, business, platinum. I mean, new charge is $20,000. Wait, why? I thought the business was done.

No, I still have, so I have to close out quite a couple, you know, jobs and stuff. And obviously, I don't want to screw any customers over. When did you decide? I already asked this, but you did not. answer. When did you decide the business was done? July. Okay, so basically right now. Yeah, July, uh, wait, June, month ago?

June or July. It was either June or July. One or two months ago. Okay, wonderful. Yeah. Oh, you owe $5,983 and 87 cents on it. Interest rate's probably like 30%, right? I don't even know what the minimum is because it doesn't say. I'm not too worried about the credit cards because I still, like I said, we still have to collect quite a bit of money from customers. Yeah, I have to collect. And some of them are willing to, you know, to pay up and stuff.

Okay. You know. Yeah, that makes me so confident. Some of them are willing to pay. Well, yeah, that's why the other ones are getting sued, of course. Yeah. Now, any kind of legal process in the United States is kind of slow. Yeah.

Unless they're just trying to like, oh, I got sued. Let me take care of this. Mm-hmm. It's only getting every customer's order right. It's only a point of sale system connected by spats. Fibberpowered business internet, helping you track hundreds of secure transactions. And it's all backed by 24-7 U.S.-based customer support and local technicians. It's only everything.

Get business internet advantage free forever when you get four mobile lines from Spectrum. Visit Spectrum.com slash free for life to find out how. Restrictions apply. Service is not available in all areas. When did you start suing? This month, at the beginning of this month. I just started sending demand letters all that stuff. Yeah, I have one that already said they're going to pay and they owe $16,000 and they already said they'll pay.

But now they're giving me attitude and say they want a judge to tell them to pay now because for whatever reason. Why don't they feel they owe you? I have no idea. He's saying that he never got a copy of the contract, which is bullshit because whenever we sign a contract, you literally rip it and give them the copy. There you go. So you have the copy.

Yeah, they have a copy. Yeah, I also have a copy. As long as you have a copy. And we've already showed it to them. And they're like, well, I didn't get anything. And I was like, well, that's bullshit. Because your name is right here. And you signed here.

So that's just, again, that's just one example out of like 20. So. Where does the money come in? Because, again, we didn't have money come in. What do you mean where the money come in? All those. You paid $14,000 to the $20,000 last time. Where does the money come in?

Because we didn't have it within a month. Are you talking about where does the money come in? How do you get the money? From customers. Yeah. How? Like, where is it to press? Check.

And then you do the bank. deposit it? Yeah. And then I deposit. Where are we seen anything? I don't know. It should be there. Everything should be on there.

I mean, I'll give you all my personal and my business. Oh, I know. Oh, I know. It doesn't make sense for me to like withholding. Certain other checking account because your Bank of America statements do not show deposits. There should be two Bank of America statements. There should be a personal one and there should be a business one.

He's now triple checked it. Do we have two? Bank of Americas? He's. I might have to pull it up on my. phone then so I can show you but buddy old pal I don't think you know your money at all because this is a mess and I was gonna say go through a budget in course because you get it for free and you probably should for your own life but this business thing is beyond that because we know

it's not a business budgeting course it's a personal finance course you should go through it they're bundled at a lower price by the way now 15% off check it out in the description but this is wait this is a business thing why are we having prime Amazon Okay. And yeah, gas station. Going out to eat, Uber, more prime. Korea restaurant. Okay. Yeah, this is Dave and Busters, Dave and Busters. Haka. Haka. Hoka. Hoka. More prime. Let's, let's say, movie rentals. Prime video. Prime. Yeah, there's a lot of job stuff. There's a lot of stuff that is business things. There's a lot of laws in there. There's, yeah, and there's Indeed and Zen business. Sure.

One, I'm curious how much you actually need. We don't know what's in this. purchases, but two, why do we have like prime video and shit? Well, that's also a long, that's a long story. Well, I'll tell it. Well, so, so my girlfriend lives at home with me. So, so we live together and I have her, I, you know, I let her use the cards and stuff whenever we need it. So there was one time. This is a business card.

Yes, but I lost, so I lost the cards, right? I lost my, my, my other, my personal card. So I only had that one available. So we only, so we had to use that one. So, and it took a minute to get it back. That's the long story. Yeah, it's pretty much, yeah. And again, through here, it's hard to know.

I do get it. When a business grows and you had 15 people, it's like, it is hard to remember every subscription you have for the business. I actually, yeah, I actually have no idea how many subscriptions are out there. So what my- You don't know you're not tracking? No, I'm not tracking at all. Because I realized a few months ago,

we realized like, oh, you know, over this last year, as we've built so quickly, you know, we've just added these different business subscriptions. Now we have it all laid out and how much they cost, like all tracked. Why haven't you taken the time? So my plan was to cancel all of my credit cards and just get new ones so that whatever is, you know, monthly subscribe, just obviously cancel so that it can't be paid just because there's so much stuff out there in different accounts on different cards that I generally don't know what's on what card at this point.

Oh, we counted nine subscriptions, totally $208. $504 a month. $208.54 a month. Okay, that's not that bad. It's not that bad, but you're in business debt and your business doesn't make any money, so I don't know what the fuck you're talking about. That's not that bad. Well, I have a recoup plan.

Huh? I have a recoup plan. You know, get a job. Okay. And then I'll be so far mission accomplished. I'm not seeing any progress. Well, I mean, I haven't started working yet. I'm still working on it.

You know what you mean? You said you're making $176,000 a month or a year. Oh, yes. Yes. What are you talking about? Sorry, I got distracted. I was thinking about something else. What were you thinking about?

I was just trying to figure out, like, I was still on the conversation about the cards, and I was still trying to figure out, like, what happened with the cards. That's all. Okay. I don't think you're a credit card person. I'd use a charge card like the Fizz card. Or business versions. And then, okay, here's American Express Gold.

Okay, so the gold is my person. Yeah, the gold would be my personal. That's the one that's paid off, but salon studio, sushi, tea, Starbucks, sushi bar. Something that has a lot of debt to pay off it is about to get a car repo because the payments are too high, spending a lot of money on bullshit. That would be my girl. That's not me.

Is salon in there somewhere? Yeah, that's my girl. Yeah. What about the rest? Saline was one thing. And then I said, and then La Manilin and Regal, Pugner, Instaccar, Insta. car subway.

Yep, that's her. Well, first of all, this is your money. And you're in this debt. What are you talking about? Why are you allowing this then? Why isn't she spending her money? She's your girlfriend. She's not your wife.

And I, okay, treat her. Sure, if you can afford it, but you can't, you have debt. So what are you doing? You're about to get a car repoed. So what are you talking about that fuck girl? It's not a valid thing. What do you mean? So your money?

Yeah, that's true. No, you're right. No, you're right. So what is going on then? Why is this is a thing? Well, I have the mentality that I'm going to, to come back from it pretty quickly. As far as the business stuff goes, no. I don't know. I need to figure that out. Well, then, come back from what then? If not the thing. The personal side, the personal side.

The personal side isn't crazy. Personal expenses, all that. But first of all, a $800 car payment, you can afford that with your income. Yeah. So I don't know what the fuck you're talking about. Come back from what? Your debt, your business debt is the crazy thing. Yeah. So what are you coming back from? I guess I'm looking, uh, I guess I'm looking just to reset everything and just start over, I guess is what I want to do. I want to just, you know, wipe everything off and, like, have a plan. So bankruptcy? You know what to do. Yeah, I guess, yeah, bankruptcy, I guess would be the.

But when? Because you're holding the Porsche for a year. So that's, that's, that a year would be next March. So we're holding on to all this until bankruptcy next March, hoping that no one comes after us legally. Well, I've already been sued by one of the companies. And, um, and we have 30 days to at least respond to the last year. When did you receive notice? Uh, about 15 days ago.

And what's your plan in 15 days? I'm not sure. I got to get with my lawyer. I don't know. You've not been talking to your lawyer yet? Well, he's saying he's going to respond to it because they have to fix some stuff, which will get us an extension. So the goal, I believe, right now is to extend this out to a year before filing personal bankruptcy. Goal.

Goal. Yeah. Okay. Oh, my gosh. It's so much. It's a ginia, which is good ramen. But come on. In some kitchen and the mix and urban pickle.

Exail smoke. Exail smoke. smoking yeah what are you smoking you smoking you know smoke

stop one you can't afford it chick fillet subway subway and we'll do anything but go to therapy right isn't that what they say anything before therapy

yeah I eat out a lot that's my biggest thing for me Charlie's Philly steak well first you blamed it on her but no no she

so if you see Instacart that's her but food wise it's all me unless it's like Starbucks Charlie's Philly Steak, Chilies, Marshals, Marshals, Raising Keynes, Chick-fil-A, Gleazy Blue. Glyssie brew, wow. Okay, McDonald's, McDonald's, Chick-fil-A, Song Garden in Korea, Shig-Shack.

Oh, this just really keeps going for someone that's in... Sober's dead, and I'm bouncing back, and everything's going to be great. Sporting thing, and Target's kind of hard to know if it's bullshit for what. Restaurant, restaurant, Gong Cha, Raising Cane's Twin Liquors, Umiah, Embers Wood fired, something. Academy Sports, Subway, Chick-fil-A, Krispy Cream, Raising Gaines, Chipotle, first watch, Umiya. Yeah, I ate a lot. Yeah. I ate a lot in general.

I think you can afford the car payment. Why do you want to repo this? I get, you feel like you're screwed. A lot of people in the Tesla world felt like they were screwed. This is Euphoria Calvin Klein, the new Elixir Collection, featuring three perfume intense scents, inspired by a unique orchid accord, paired with vanilla, each with its own distinct attitude, each with its own universe. Bold elixir.

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Find your euphoria. Discover the euphoria elixir collection by Calvin Klein. Because the prices got cut. I think they're actually at the value of what the cars really are now because they ramped on production and everything got more efficient. So I understand what they did. It sucks for people. But I get it.

But you can afford it. I know I can afford it. I know I can afford it, but if I'm going to do bankruptcy, I might as well tackle everything I can't. Sped $1,791 on what? Going out to eat. Yeah. So you can't afford an $800-hour car payment. So, fuck you.

I know I can't. $300 a month in groceries, you could eat off of. I probably spend close to $1,000 on groceries. Okay, well, you're being stupid. Yeah. Well, I also eat four to five times a day. Okay. Oh, bodybuilding.

Okay. We get up you to like $500. I get what? We could up you to like $500 a month in groceries. You would just be aggressively meal-pressing. thing. Yeah. And then I eat out a lot on top of that. Yeah, no shit. That's what I'm calling out. Yeah. That is a lot. That's quite a bit. I didn't, I honestly never keep track of it. I just kind of. Yeah, no. But why are you saying you can't afford an $800 car payment? No, I'm saying I can afford it,

but I'm saying if there's the option to get the same vehicle and pay $400 a month instead of $800. How are you going to get it? After bankruptcy. What's your plan? I would get it before, before bankruptcy. The repo is still going to be under credit, though. what's your plan to finance especially with where rates are at today for financing I would probably put a certain amount down I'm not sure yet how much I would put down on it

How are you securing the financing repo man Without it being a 25% interest rate alone I'm not sure yet if Tesla Like if you owe money on one car on a Tesla I don't know if it affects both vehicles If you have two vehicles through Tesla I don't know if I can do that or not yet

Again, I'm still in the thinking stages of how to do this. But the goal is if I'm going to do bankruptcy anyways, then try to get a cheaper car or the same version. I get what you're saying. I'm trying to figure out how you're going to finance it. I don't think Tesla would approve you with a repo. I haven't missed any call. I mean, I haven't missed any payments. You're about to get it repoed.

Yes, but I haven't missed any payments. Yeah, right now you could probably get it. But you're going to get a repoed. Yes. After or before you get the car. After I get the car. Oh. Yeah, so I would get the new car first.

You're kind of just, it's kind of gross. Yeah. It's like, I know there are things and ways to do things to manipulate the system, but it's all in place to, meant more to help. People that are in a situation that can't get out of, you are, and you're just refusing to because what? And then you went to Mexico and got $1,300 of Botox and $180 teeth waning? Yeah.

Why? What? I do modeling and stuff, so it helps me. Where was that in the paychecks? Because again, nothing came in. So, for example, no, sorry. So I have already done some modeling stuff and they paid in cash. But I have some other stuff coming up. Like, for example, I have a shoot with a motorcycle company on September 6th. And you're going to make? I mean, for that one, it's only like 600 bucks for like three hours or something like that. But I have other stuff as well that I'm going to build to. that I'm pretty confident.

Well, you better make a $1,000 a ton of money because you spend a ton of money on Botox and teeth whining. Yeah, $1,300 can easily be made back within two jobs, probably. Okay, but also Botox is something you have to continue to do. Yeah, once a year. Yeah. Yeah. Where? What do you mean where? Where's your Botox?

Here on the, right here, and then right. Why did you have eyebags? Yeah. Okay. And then here to avoid the lines? Yeah, the number you frown right here. Yeah, give me a frown. Yeah, but...

You can tell I'm not fake because I get the lines. So, yeah, you get the light. I want to give you free money right now. I've partnered with different resources that will literally give you hundreds of dollars the moment you sign up for them. Check out my investing app of choice. Mumu, where they give you up to 15 free stocks

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No, I know, but you still spent the money. Yeah. Oh, great. Chase Sapphire Reserve. 3,727 on this. Again, I don't know the minimum of payments because you're sending us weird versions. I never make the monthly payments. I just pay it off in full.

So I've never. I mean, you didn't pay off the business platinum in full. I can in about two weeks. This is. This is just a shit show. Yes, it is. I agree. And you already have your plan of motion, so I don't know what we're doing here.

If anything, it's just, this is a fucking, like, example for the audience at this point. $3,725 out on this. What is it? It's a door dash. It's a door dash. It's an instant cart square webley. Okay, so website. Yeah, why not put that on the business card?

We'll put Amazon video. Streaming B, PlayStation Network, Papa John's, Cinema, Cinema, Netflix, Disney Plus, Carfax, Nintendo, DoorDash, Cinema, Cinema, Amazon Cinema, Cinema, Cinema. What are all these small 54-cent cinema things? And then $7.99. So I pay for a Regal subscription. What is that, a 54 cents a day or something? No, so it's 20 bucks a month.

But if you essentially unlimited movies, you know, monthly, you know, you pay 20 bucks, unlimited, right? What's the 50 cents? If you go, if you upgrade to like an IMAX type of movie, then it's, you know, it's also free. IMAX once a day. But if you do it like online, whenever you buy the ticket online, you have to pay the 54 cent fee. So you go into a movie a day? Not a day.

That's basically, you're going to a movie every other day. I get my money's worth. No, you do. Is there even enough movies in the theater for that? I go, I would say I go once a week, honestly. Okay, there were more than seven. Not in a week. No, in this month.

Oh, then. There were more than four is what I was trying to say. Then, yeah, there's some months that I go, that we go a lot. As in, you know, the month we're looking at, because cinema and DoorDash and Carfax, regal, oh, yeah, cinema, cinema. Law office is 7,500. Yeah. So retaining your lawyer, huh?

Yeah, so I paid that up front. No, 7,500. Yeah. So, well, the last a couple, a couple months probably. Yeah, a few months, maybe. No, no, that's for the whole thing. That's, that's for everything already. Wait, bankruptcy?

Yeah, for bankruptcy. Yeah, for bankruptcy. This is a bankruptcy lawyer. Yes, that's paid in full already. What are we doing? That's paid in full already for. You've already decided. So why are you here?

So I want a budget for my personal side to work with the 3,700 a month. 3,700. The military. So the military disability that I get, I want to. That's not how this works. It would be all your income. Well, the thing is with... What's your mortgage?

$1,400. Okay. About $1,400 or so. The thing is with my main. job, I made a stupid decision and I quit my main job, which is why right now I'm getting another job, which I already have offers for. When did you quit? I probably quit at the beginning of this month, I think.

Yeah. Why did you not tell me that when I asked what your job is? What are you? What is this? Yeah, I'm a mess. This is the stupidest conversation I've ever had. Yeah. So I quit that at the beginning of this month. But again, I already have job offers lined up. I have four job offers lined up already. Yeah, I accept one. And yeah, I am accepting one. I already accepted one. But I'm waiting on their actual like, you know, the actual, you know, paper which I should get either today or tomorrow for that one. And then I would start working probably next month.

But things that are so commission based take a little bit to get off the ground and start getting big chunks of commission. Building the relationship. Yeah, it would take. Well, because this job. pays way more than this that this current one yes it being on my base pay was 20 this one's gonna be 80,000 so you know within two weeks out have my first paycheck of you know full through a little bit more than 3k I feel like you already have nothing I do is gonna do anything you already have your you already know what your plan is go daddy door dash chase travel great 300 bucks go daddy I need go daddy what are you buying websites every day uh can I see one real quick. Can I see the whatever that one was returned.

Forget what it was. I forget what that one was. Peacock twice. Premium and premium plus. Wow. Great. Yeah. Wonderful. And oh, back to the cinema. Because we only go four times a month, guys. GameStop. More go, Danny. Great. Okay. Yeah, GameStop was my girl. She threw a fit. That was those. Okay. And here's a car. This is not a car statement It's your credit report is what you sent So you owe $47,813 That at $800 a minimum fee payment, right?

How was the other car paid off? I was doing solar as a second job And then I made some good money from solar So I used it to pay off the car So what? And then you sold yourself solar? No, no, I didn't sell myself solar No, I like sold solar.

Oh, are you being serious? But you bought it? You bought solar for your house No, that was, that was like two years ago. That's completely, completely. Are you saying you just did solar? Yes. So this year I started doing solar like as a side thing and I was able to make some good money off of it.

So that's how I paid off that car. Oh my gosh. I'm getting so much information from a producer. You're paying for your girlfriend's gym, your gym, all subscriptions across the board, two phones. Still need to cancel another phone. You pay for your girlfriend's phone. Monthly car washes. The theater subscription for you and your girlfriend.

Is she not work? Why is... No, right now. Are you paying for everything for your girlfriend? How long have you guys been dating? Three years. Okay. Listen, I kind of get it,

but it's almost like more of a stay-at-home life situation. Well, she does a lot for me. She does a ton for me. She keeps the house clean. She takes care of me very well. She does a lot of mother cooking, all the cleaning. I mean, essentially she's, you know,

if we were married, she'd be a stay-at-home wife, essentially, right? Without the title, right? So is that what you guys are going for? Yeah, that's kind of what we're going for right now. Okay, but again, you're paying for all her stuff while you're in debt and you guys aren't married and you're about to go through bankruptcy. Yeah. So right now, like currently she's looking for a job right now because she had a job. You want to buy your grandparents in Mexico an AC unit for 3,000?

Yeah, so whenever I did the Botox. But you don't have money. You're going through bankruptcy. Well, let me tell you what happened. I went. So whenever I went to Mexico, I was there for five days, right? I was there for five days. And during the second day I was there, that's when I paid for my stuff.

During the final day that I was there, the fourth, sorry. the fourth day, not the fifth day, their AC started being weird. Like, it started getting really hot in the house. And I was like, and I told them, I was like, well, if the AC ever goes down, like, later this year, maybe in like three or four months, I can help you guys out. Yeah, you made a promise that you can't afford. But then the fifth day, it took a, like, it literally should. Yeah, you made a promise you shouldn't know.

So then, so. Just be like, wait, I overstocked. Yeah. So now they need help because the AC went out. And they can't afford anything? They definitely cannot afford that. Like that's a hard no you know, you know 10, uh, AC here is 10 grand. I know because I just had to pay that.

And because my AC also took a shit this year. Um, but over there it's 3,500 for a much bigger AC, but you know, in Mexico. Um, so they need help with that. So I'm trying to get with my aunt. And you just paid $300 to get a rooster cremated. What is your life? Yeah. Yeah.

Yeah. So that was my pet. I'm so confused. And he, yeah, I had a rooster. Yes. So I have chickens. have my German Shepherd. I have my cat. And then I have 13 chickens. And I have 12. Okay. And then you lost a rooster and you cremated it? Yeah. So he, I raised him since he was this big. And his name was Kirby. And, and he was as close to me as my dog is. Like he was nice.

Like he was amazing. He was very nice to you. A beautiful, beautiful, beautiful, beautiful pet. Amazing. He was nice to you. Super nice. He was super nice. He would always, you know, take food to his girls or whatever he like would refuse to eat without feeding everyone else first like he was he would dance for me every single day every single day how old did he live to a year and a half he lived a year and a half yeah what's a risk or lifespan uh they they're supposed to live a lot longer but he got merricks what's that it's like a very deadly uh disease like a bird related i'm sorry that's yeah um and man i was torn apart and it's like and i know it costs a lot of money i know it's stupid but like i'm trying not to start crying because i'm about to start kind of i get a pet's

Pets are everything to me as well. Like, he meant a lot to me, right? So I didn't want to, you know, I know that was stupid, but like I had to pay the 200. It's not that that was stupid. It's just that every single part of your life is just. Yeah. So that's the thing. It's the full picture.

Yeah. To get the necropsy, which is this is, I mean, I've had other chickens that before, right? But it wasn't, it wasn't, they weren't him, right? So I paid $200 for the necropsy. And then the, the, what's it called the, to get the ashes, the cremation and everything was like, 300. So I paid, I think it was like 500 total for everything. So, but

you know, even though that was expensive, I couldn't say no to that. Because that one really cut deep. Crazy. I'm over here trying not to cry on. Make Mother's Day even more special at Whole Foods Market. Kick off brunch or dinner with quality

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with a ready to heat Keish Lorraine, deviled eggs, and fresh cut fruits to go. Celebrate Mom with Whole Foods Market. Get it. I get it. Pets are everything in the main as well. I get it. Yeah. But aside from that, I have a mess of a bunch of going on. How are you paying for the grandparents thing?

I'm not yet until I get some more money from homeowners and stuff. like that. That's just the, I was going to say that's just to pay the debt. What if the judge forces you, though, since this business debt to anything that comes in for the business, pass, oh, it has to go to at least settling some of the debts? I'm not sure I haven't, I haven't gotten that for you. I don't know. I don't, like, and I've never been this situation. Well, then you can't pay if. Yeah. My, my lawyer said it just pay myself

through the business as a W-2, and then he said that's fine to do it that way. But he said, I can't take money directly out of the business, like straight up, take it out and use it on crap. He said you can't do that. Right, right, right, right. But he said if I pay myself as a W2 employee. It's a W2 employee. But how much? $3,500.

That's all that's going to come through? What are you talking about? How much am I going to pay myself? Yeah. I mean, he said, I mean, there's not really a limit to how much I can pay myself. But obviously, I'm not going to like. No, it can start getting weird from an IRS perspective. Yes, exactly.

I'm not, I'm not going to be dumb and, you know, pay myself 30K. Like I'm not, I'm not going to do that. You know, it's just whatever I need for, you know, different things. Yeah, yeah, yeah, yeah, yeah, yeah. No, it'd be more under. If you paid yourself less, that's where it starts looking weird. If you're like an escort. But, oh, how is your business formed?

LLC, partnership LLC. Can you W2 yourself under an LLC? Yeah. If it's a partnership, yes. If it's a sole proprietor, then it's just yours. and only you and you don't need to do W2. But if it's more than one partner than W2, or you can do 1099,

but he specifically said do W2. In general, you cannot issue a W2 to yourself if you're an owner of an LLC that is taxed as a partnership is, well, the editor that says, but again, I mean, your lawyer is not going to get you in legal trouble.

I would clarify. Again, if you're electing to be taxed as an S-Corp, you can have a, reasonable salary and that's what I was talking about before but w-2s are typically issued to employees not self-employed individuals which is what an LLC access is a pass-through so I'm not 100% sure my man I believe he said up to like you could receive a schedule kit well K1 which yeah obviously it's a share of a partner's income deduction that's what I did when I had a co-owner an investor which I bought out but so I would I would just clear because yeah because that may have

been what you heard yeah I would clarify with lawyer. I will clarify, but I believe he said between 60 and 70K is like up to a reasonable like pay yourself type thing through W2. Like anything more than that is. Yeah, but everything I'm seeing here. And again, not a lawyer to be very clear. Yeah.

Texas attorney? Yes, Texas. He's in San Antonio. Yeah, I confirmed it with a different, yeah. Unless again, you're S corp or C corporation, but I don't think you are. Unless he plans on changing it. I don't know. unless he's going to tell me to...

Okay. Just to pay yourself enough to pay for... Oh, no, all those other things as well, the other. How much money, again, do you expect to come in total? I mean, I still have about $100K probably. Well, I'm going to say, I'm going to go very conservative here. I'm going to say 60, 70, 60 or 70. Well, obviously, yes, W2 would save you a lot of money on the tax side as well.

I just had $15,000 come in literally, like, last week. and then I had another $3,000 come in yesterday. I'm just curious that the judge is going to make you use that kind of money. And that's what your lawyer is trying to get out of. And that's curious. Okay, whatever. Okay, okay, okay, okay. Well, you're already late on your Tesla.

Your Tesla, first of all, your Tesla is $900 a month. It's $892. You didn't even know that. But you've missed one, two, two payments. Two payments. Two payments out of the entire year and a half that you had it. Mm-hmm. What a 72 month.

Okay. Buddy, I just don't think. I think you're going to be someone who just goes into debt their entire life. I really think so. I'm sorry. That's just how I'm viewing it. I mean, I've never been in this position. It doesn't matter.

You are right now. I don't get a shit. But you are right now. And you're going to get further into debt for your new Tesla after, well, not after going through bankruptcy. What would you recommend? What would you recommend doing? If I need a truck or a or another car that's like, you know, whatever.

business type of bankruptcy. Yeah. But you're going through personal. Yeah. I don't want to dig myself into a bigger hole, right? So I want to figure out where my finances are. I want to budget. I want to figure out like what I need to do, you know, moving forward at least and come

up with like a plan. So that I'm not like overspending on a bunch of crap because obviously I have a problem. Yeah. And you're not looking at chapter 11 for reorganization. You are closing your business, so seven could be a play. Oh, man. And you said all these apply under your name, too, not just a business name, so 13 could apply to you. Right?

Chapter 13. And you can create repayment plans with that. But I don't know. I don't know. Well, I mean, just first step, my thing wouldn't be repo a debt just to get into the same car. It's a slightly lower thing. I get what you're trying to do. I just feel like...

You think it's stupid to do it? No. My fear is with you, what you've tried to do is so many gain the systems that have allowed you to get in this position that continuing down that road is going to end you up in a very dangerous position in general. I mean, I get that the car is worth less than it's owed on it. But I'd work just to pay off the debt and maybe sell the other car. I mean, when the car is debt-free, I get that you paid more for it than it's worth now. But when it's debt-free, it's debt-free. The car is the value of the car is the value of the car.

I guess the thing that bothers me, it's not that it lost value. by like, oh, it's got old or a year past. No, I get it. It's that they purposely like shot it down by like $20,000. Well, it wasn't the, it's because it got more efficient and it got cheaper to build. Yeah. It really did. And they were trying to also hit quarterly goals.

But, you know, price cuts haven't really happened at least major there for a while now. You know, it's much more stable because they've probably reached that price effective area. Whatever. What is this other 10,095 U.O? Home design? Oh, that I think, wait, $10,000. synchroning. That's the AC I was telling you about. Oh, the air conditioning you owe. You borrowed on it.

Yeah, my ACU. Try to clear that during bankruptcy? He said make the payments for the full year, and then we're going to file it for bankruptcy, too. I'm not adding anything here. I'm sorry. I'm just going to, okay, and then you owe $3,000 on something else, and $4,000 on Aqua Finance. $3,000 in your checking account. I'm not, you already have your plan. I'm not going to do anything here. $10,000 in savings. have 10,000 hours in savings. Yes.

So the problem. You're going to... No, no, no. You don't understand. That's for the floor. That's an insurance payment. That's from insurance. So I had water damage because of the AC.

It, you know, everything up. It broke my floor. And that money right there is insurance money. So insurance sent me a check for $10,000. But the floor costs $13,000 to fix. But they only sent me $10. So I have to save up that other $3,000 so that I can fix my floor. Because my floor is like all f***ed up from.

all the water damage right now. And then like $6,000 in Acorns. By the way, if you use my Acorns link, you get $20 instead of the $5 if you signed up with someone else's link. So go get that money. I don't know, man. You already have your plan.

There's nothing I can do. I'm not going to budget on your $3,500 because you're about to get another job that makes more money anyway. So that's not how we would budget. That's not how we would teach you to budget in the budgeting program. You already have your plan. You already have your thing. It's this, this kind of feels like this.

this was more of a compared to basically every episode this was definitely more of a putting your situation on display so other people could hear it out of interest and maybe learn from it but there's not good I'm there's nothing

honestly I'm sorry for you to walk away with you already have your thing you've decided you're going through banks are up so you're getting the repo you're it's whatever I mean you've already decided and you're putting your actions in a place and you're putting your money in different places to do that. So a really exciting thing that you guys should be thinking about

is we now have all these extra things with our YouTube membership program. You can sign up for our post show. We talk about extra drama for the episode that we didn't have a chance to dive into. Why would I want more than one super? I don't want one super. You don't f*** them.

You just touch them and you move on. Why would I want to do that again? Because it's fun. Is that? And it's awesome. How is Caleb as a lover? I would give a solid nine. How do you get to a nine?

I just don't know how to end. answer that because, I mean, I just do. I just do. For the upper tier memberships, all the people from the crew from over there, they come together, they make a crew cast and they talk about the behind the scenes content and how we do everything here. I think he's been on the Husky side personal. That's brave. Twice a month, we have a live stream with you guys and we hang out with you. We answer questions. We chat it up. We talk about the show. We just have a good time. As far as what I understand, Goonin is, I believe it's an endless edge. An edge without no end. It is an edge that never

concludes. Actually, I don't know, does Goonin conclude? And then most exciting right here at this table with even more pie charts, we have an exclusive uncensored, ad-free financial audit episode for the top-tier members that no one else gets to see anywhere else.

Consider joining because ad rates are always up and down. We're trying to build something great here, and I wanted to make sure to provide the best content and the most amount of content that's ever been in a YouTube membership. Link in the description below. What do you think about the Tesla situation? What would I do there?

Just keep it. I would just... I would just... In me... Well, if I was... Because that's just $900 a month. You know what I mean? Well, that is a lot of money, but again, you can afford it according to you.

The thing is, for me, it's more the behavior of it. It's the... You're always trying to better the system, and some people can do this system. Like, I take advantage to certain things in the system, but it has actually worked for me. You're getting worse and worse positions. Again, What I would do would affect the overall situation that you're already planning to do. I would sell the other car.

Pay off the Tesla. Then boom, you have the Tesla. The other one's a fun car anyway. It's not used for work. No, I agree with you. I agree with you.

But again, you're not doing that because you want to go through bankruptcy and your lawyer's telling you not to do that. So it's just... He's saying if I sold the Porsche because I paid it off this year, uh, filing for bankruptcy so soon would cause red flags. Yeah, and they would say like,

hey, you were trying to hide the money. Exactly. And because going through bankruptcy is what you want to do. That's obviously what I would do. We can't do. So there's, there's, sorry. It's not, it's not a thing. Yeah.

This is, keep us updated. It'll be an interesting thing to follow. But I'm sorry, this conversation wasn't as beneficial to you as. I was hoping now to get, again, I was hoping I would get some kind of guidance on the personal side on like where, what personal side. You know, where I'm overspending. Like, where I'm dropping too much money. You're spending $1,500 a month on food. I'm going out to eat.

You spend $1,000 on groceries, you say. Again, we could do $500 for yourself. If you have to pay for your girlfriends, call it $700. You can probably do $700, $800, you know. On groceries? What about eating out? Aggressively meal prepping. $0 on eating out.

Okay. Until you're completely debt-free because unless your bankruptcy clears everything, unless you can do that. I don't think that's how it works. Exactly. So you're still going to have to pay. through debt and you're going to have to get a fully funded emergency fund then you're going to have to get it. So it's just like nothing I say even matters because like you're just

what about going out to eat? Why would going out to be in your budget? It wouldn't be. That doesn't make sense. So I'm yeah, that's it. I am one thing I am kind of happy to see is I like the trade you're in and I like that even even now our partners at course careers you can get certifications in the trades that like you're doing. They're launching those this year. It's really cool to see. So I do like that. You could have a positive feature in front of you. You are set in your ways. You're set in your plan.

Nothing I say is going to do anything. I could build out a budget. It doesn't matter because you just said, what about eating out? Why would eating out even be in your thing right now? Well, I'm sorry. I'm done. I'm sorry. Okay.

I'm done. This isn't beneficial. This is honestly, it's feeling more like a waste of time. We're still going to do our post show for everyone to visit. I know there's much more drama stuff outside of the finances, and we'll bring that in when we're bringing our appreciation. producers, but spending a budget, I mean, you're overspending because you're not making anything because you left your job.

Zero out of ten. Debt, come on. Do you owe the IRS anything? No. Really? Not that I'm aware of, no. Not that you're aware of. I bet you.

Zero out of ten. I talked to my tax guy and he says I don't owe anything. Zero out of ten. Well, I guess you haven't really been making money, so. Yeah. So, like, last year the business was like negative, 100 something thousand. I got you. Yeah.

Yeah. So zero out of ten for debt, though, because you do have things, just not even paying on. Emergency fund. There is $10,000 there, but it's meant to pay for the floor, right? Those around 10. Retirement. Acorns has $8,000. Yeah, that's for retirement.

Acorns, dramatically behind for your age. It's going to be a two out of ten. Real estate, you do, oh, home you have leverage on it. What's your interest, right? 2.9. And your payments, five? Or $1,400. I think it was like $1,400.

Okay. He sold the house. How many years have you owned it? This one? I bought it in 21. So three years. Okay. What's your equity position in the home?

100,000. Okay, great. 7 out of 10 real estate. Do we count the military disability for anything, towards anything? Towards your income. 3,700. Yeah, towards your income, but that's not a category because it's about managing your finances, not how much you're bringing in.

Okay. Hammer Financial Score, 2 out of 10. Make sure to check out of the resources. Link in the description below. They are what I use or would use in specific situations, including the budgeting and investing class, which are the best in the internet, which are now bundled at a 15% discount.

Make sure to check that out. And now join our membership and come watch the post show an extra 20 minutes of drama. Today on the financial audit post show. Why do you think you are someone that needs three cars? I consider myself very bougie. As in living above your means. I just like nice things. I don't know.

I enjoy it. A Porsche and Audi. A Tesla. I like standing out. I guess that's what I like to be. Bodybuilding, for example. I did that. You know what I mean?

I was able to do that. I look like that. Yeah, but you worked for that. You're just borrowing for a car. To watch the financial audit post show, click the join button below.