Deep Dive
Why is Cole's spending so high?
Cole admits to overspending to avoid telling his wife and kids "no." He wants to provide for his family but struggles to set boundaries, leading to excessive spending, often double his income.
What are Cole's various jobs and income streams?
Cole's primary job pays $20.50/hour, bringing in around $5,500/month. He also works 70-80 hours weekly. He has a car detailing side hustle, which is not yet profitable, and occasionally streams on Twitch, earning a one-time payment of $400.
Why is Cole pursuing multiple side hustles while working long hours?
Cole is drawn to the potential earnings of various side hustles, such as car detailing and roof sales. He sees the potential for high income but struggles to focus on one endeavor, spreading himself thin and hindering success.
Why is Cole's current financial situation so precarious?
Cole consistently spends double his income, relying heavily on credit cards. He has paid off debt twice in six years but has fallen back into the same spending patterns. He bought and sold a house, only to discover the new house also has significant structural issues, leading to more debt. His mortgage is 60% of his income, and he has no savings.
What are Cole's plans for his children's future, particularly regarding college?
Cole admits to not having a plan for his children's future, including college, claiming they "can't afford" to make one due to their current spending habits.
How does Cole manage his finances with his wife?
Cole and his wife share an Amazon account and credit card with his parents, leading to confusion and difficulty tracking expenses. They separated their checking accounts because Cole "spends all their money." He doesn't review statements, only paying minimum payments on credit cards, often late, resulting in high interest charges and fees.
Why does Cole resist using autopay for his bills?
Cole prefers to manually pay his bills due to OCD and a desire for control, but this has resulted in multiple late fees and higher interest charges.
What are Cole's career aspirations and how does his financial situation impact them?
Cole wants to change careers and pursue a degree, either as a CRNA or a lawyer, but these paths require significant time and financial investment, which is difficult given his current debt and spending.
What solutions are suggested for Cole's financial problems?
The host suggests Cole and his wife take financial education classes, create a budget, and consult with a financial advisor. Bankruptcy is presented as a last resort option to address the overwhelming debt. He also advises Cole to stop his side hustles and focus on a guaranteed income source if he has the time to work more.
What is the host's biggest concern about Cole's situation?
The host expresses concern for Cole's family, particularly his children, who will bear the consequences of his financial irresponsibility. He emphasizes the trauma of potential eviction and the long-term impact of Cole's choices.
- Earns $5500/month but spends nearly double.
- Has a wife and three children.
- Justifies spending by saying he'll work more, despite already working long hours.
- Started several side hustles but hasn't seen significant income from them.
Shownotes Transcript