Debt Princess Begs Daddy To Save Her | Financial Audit
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Hi, my name is Nina. I am 28. I'm based here in Austin and this is Financial Audit. Thanks for coming on. What do you do here in Austin for a living right now? Thank you for having me. I am an online health and fitness coach. Oh, okay. Yeah. I could use your help a little. I got you. I actually just recently this year quit my corporate job and went all in on coaching and

And I found myself drawing money from my 401k, which everybody tells me not to do. Well, no, everyone tells you not to do that. But they don't say why. Because you're pulling money from your retirement because there's a 10% penalty on the money you're pulling from retirement. And if your money has gained any value, which it likely has over these past couple of years, you're also paying capital gains tax on that money. Is that a good reason? Have we found a reason? I just gave you a reason why.

In my mind, the math made sense. If I needed 10K to get rent and groceries and all that stuff. Rent and groceries? Wait, was this business not ready to go? It's complicated. Hold on. What are you making online coaching? I was with you online coaching. I was going to ask how much you make. Let's get into the conversation. How much do you make with it? So that's why it depends. Oh, good for sake. Not an answer. Okay. A non-answer. An answer is coming.

So it's seasonal, my work, a little bit. Fat in the winter, active in the summer. Is what people tend to fall into. Yes, they won't hire an online coach if they're just going to bundle up for the winter. However, when I left my corporate job, the season that I was in, I also left a different coaching company. So I was an assistant coach for somebody else. And then I...

Okay. I left those things, decided to be an online coach by myself, like have my own. Why didn't you wait for the better season? Because there were also like personal things happening and I really wanted to get out of that situation. I went through a breakup once.

And then my boss at the time. My life is a permanent breakup. We all deal with it. Not at the corporate job, but the other coaching job that I had had, that guy turned out to be terrible. Like a terrible human being. No integrity. Like I think that his business is operating. Terrible person towards you.

Me and the other assistant coaches. Okay. So there was a big exodus. Like there's a bunch of us that left that team. So it was hard to be in that position. Yes. Okay. Well, how close were you to the good season? It was February. So I knew that we were, we were going to come into the summer months. Okay. So let's do a little rewind to about two minutes ago when you didn't answer my question. How much do you make? On average, four to 5,000 a month.

Okay. If I had to summarize and average all of it. Sure. There's lower months, there's higher months. And of course, you're a business owner, so you're setting 30% aside for taxes. Not correct. Uh-huh. Right. Yep. And how long have you been doing this? Oh, the IRS loves this show. Not setting aside money for taxes? How long have I been doing that? How long have you been doing this job? You're self-employed. You're business. February. February.

Okay, so what do we do when it comes tax season or just a few months? Honestly, it's coming. Sure. File an extension. Sure. But what are we doing? Well, I used to use H&R Block, so I would just go through step by step. Yeah, but you're going to owe money. You're literally withdrawing, according to you, from your own savings to survive tax

So there's going to be no savings to pay the thousands that will be owed. No, there will be. And I also have a lot of, it doesn't exist now. I have a lot of things I can claim as well. Like as an online health and fitness coach. A hundred percent of your income. A lot of it. What's a lot of it?

I can claim a lot of my expenses. No, what number is a lot of it? Wait, can you ask the question again? A lot of... Yeah, the claims that you're going to be against your taxes. Write-offs, deductions. Yeah, the write-offs. I have travel, like airfare, Airbnb. Oh, yeah, but percentage, like how much of your income? That's a great question. Ballpark, like 70. 70? So you're never going to qualify for a mortgage or rent ever again. Why? Why?

Because you're basically saying your income is $1,500 a month. If you do that, that's what they'll see when they look at your taxes. Well, that's a bridge I'll cross when I get there. I'm not looking to own a home anytime soon. You'll be living under that bridge because you won't qualify for rent. Okay. Noted. Okay. Literally, what would be so difficult about... Well, okay. I mean, I'm going to answer my own question. Well, it's not that it's difficult. I am setting money aside in a savings. I just...

Like I. You're withdrawing from your retirement funds. To pay off credit cards and like kind of get ahead. To feel like I'm ahead. The first statement is the opposite of ahead. It's adding a substantial balance to a debt. So in my mind, I was like, OK, if I can take this 10K out of my account.

401 and pay off my credit cards and put some of that into my savings, then I at least have dispensable cash flow. So everyone recommended against you doing this. I didn't tell anybody. I know that people say. I know it's a thing that people say. Why would it be a thing that people say without there being any...

People say silly things all the time. Sure. Everyone agreeing on the same thing. But I'm sure that there's, it's not black and white. I'm sure there's parameters. Like there's gray area. What would the gray area be in this context? Helping my stress. Helping me get out of like an immediate situation. I understand. Those hairs are going to turn real gray when you're trying to retire and there's zero dollars. And who knows what the social security is going to look like by the time we retire. We're basically the same age.

I don't know, man. I'm optimistic. Okay. Yeah, I don't think that pays for retirement. Optimism. It's not an exchangeable resource. But we'll figure it out, right? Optimism. Figure it out. No, no, no. The people who say we'll figure it out always end up...

everywhere they go because they're always I'll figure it out instead of having an actual plan and actionable steps along the way to get to their ultimate goal. Hopefully that's why I'm here. I would like no, no, no. Canceled. Nope. And I announced this in the episode that we recorded yesterday. So I know it's not out for you. Stop.

You can go to calebhammer.com slash apply. Come on the show. Absolutely. Stop with the that's why I'm here. That's why everyone's here. That is not an excuse to get out of a little bit of pushback and trying to explain your situation. That's why everyone is here. Okay. So no, that is not going to be a get out of jail free card. All right. I'm trying to get out of jail, but I understand it's not free. Uh-huh.

Uh-huh. Okay. I'd love self-assess. Where do you think you are in your finances today? Zero being the absolute worst that you can possibly think of. Ten being the absolute best you can possibly think of. Where do you think you are? I'd say six. Pulling from retirement, you think you're above average. I don't know what the f*** is going on. If you want your Hammer Financial score, it's free. Link in the description below. You won't be led to an idiotic answer like that. Okay. Would you like to explain? I think my finances are...

You're pulling from retirement to live that you're pulling from retirement to live. Just that's it. That's it. And you think you're above a solid five? Yes, I do. At least I have a retirement and I didn't pull the whole thing. Yeah. You'll be on that way. Continuing. What's your rent?

Base rent, $1,771. Okay, $3,150 is what you'll probably have left on average after you set aside money for taxes. So $1,700, okay, yeah, 54% of your net. So you're going to be pulling from retirement soon. Well, so my job as an online health and fitness coach is...

As I grow my roster, as I get more clients, my income does increase. So the amount of work... What? When you get more clients in a business, you might make more money? Yes. Yes. That is the hope, and I root for that. I hope so. I don't want you to have a failing business. I don't want that either. But that's different. That's not the answer necessarily. One, lots of behavior. You withdrew $3,800 this month from retirement.

It's the most recent month, the month of the statements that we have. And your spending is absolutely ridiculous. You're not going to go get more clients your way out of this thing. That's not how this is going to work. So total income that came in from business was $6,586. So it was a good month on your average scale. How much money do you think was spent total across all the board? This includes debt going up as well. But how much was spent? This month. Sorry, $9,000 from retirement.

I probably broke even, probably $6,000. Yeah, you spent $17,244. So I don't know what the f*** you're talking about. I don't know what you mean. I'm just going to go get more clients. You're going to get more clients on what is considered a good month there, and it's the triple. I don't see how that's possible. Huh? I just don't see how that's possible. How did I spend that much? Well, it's an interesting little...

Are you sure it was $17,000 and it wasn't $7,000? That's just... Yep. I do notoriously can read. I mean, $3,000 alone? $3,000 alone or half of what you brought in for sitting inside Money for Taxes was all spent on miscellaneous bullshit. It's like...

It could be a video game. It could be buying gems. You know, it could be just a random, random anythings. Miscellaneous BS. It depends what that is because... Well, no, and we'll go through it, but it's miscellaneous. Either way, that stuff, like we've put things that were needs in variety purchases, essentially in your large things, like that might be more business and there's $6,000 there. But the miscellaneous bullshit, that's...

That is not needed for your business. That's not needed for your life. It is those extra little pleasures. It's not even going out to eat, going out to eat. You spent $674, 10% pre-tax. Yeah. I don't just go out to eat. I don't generally go out to eat. So what are you talking about? The number is here. The number is literally here. It was literally right in front of me. I see that. I see that. I guess it's just really surprising to me because I,

I would. What, you're bougie with your meals? I would pay myself as like, I don't go out to eat that often, I guess. Well, is it more expensive meals less frequently maybe? Yeah. Yeah. Okay. Do you have at least, you've been doing this for quite a few months now. What, nine? So we'd be in our ninth month for you. Do you have your business and personal separated? No. No.

Okay, then what are we doing? It's going to be taxes are going to come soon. But not only that, in order to calculate them going through this is going to be an absolute mess. Do you have an LLC formed for a pass through? Yes. Okay, then just open a business checking account. It takes about two seconds. Okay. Just have all your expenses go through there. Have your distributions to yourself go through there. So, well, I coach like I'm a head coach for a formed team.

Hold on. Is this an independent business or are you employed? Are you a contractor? I think you would. Yeah, I think you would. I think you would construe me as a contractor. OK, so you're being contracted out for this. It's not saying you're not a business, but it's not you personally. I have an LLC, but I do not run my business through that. I run it with my friend. She has the established LLC.

Why would it be with your friend? Well, she... Does she pay you? Yes. So you're not even the boss. You're employed by her. Yeah. Okay. So you're just employed by someone else. What are you talking about? You said you left to start your own little thing. What do you... Well, I... This is a... This makes no sense so far. So I left like a coaching team that has like 12 coaches on staff. And so now it's like my friend has her coaching team and I coach with her.

But I'm like her head coach. Okay. And you think you bring in four to five thousand dollars a month? Yeah. And I assume if you are being paid, I don't, you don't know if you're, are you being contracted by her or are you being paid like an employee? I don't know what the tax for me. It's like a 1099. Is that what you are? I think so. Okay, cool. Well, there you go. So you need to be setting money aside for taxes.

Because she ain't doing it for you. Which I guess in my mind is why I wanted to withdraw that amount from my 401 so that I could have... What? That's going to be an extra massive tax hit if it wasn't done preemptively. Well, it was done preemptively. So that's why it's $9,000 that was deposited in my account because the government took $1,000. Because I actually took out $10,000. Okay. But is there more taxes on that? There will probably be taxes on any capital gains in there.

You got your penalty hit. Yeah, so I took that penalty. And also, you can even, usually most people, what they do, if they really need to take money from retirement, they borrow against their portfolio. I'm not saying I want you to do that, but you can take like a 401k loan. So at least it's growing while it's still in there, and hopefully you're at a low interest rate. I'm not saying do this, by the way, but it's usually much better than getting a 10% penalty plus camper gains. Maybe you're getting like a full 25% tax in the end across everything, potentially 20%, who knows,

Where maybe the 401k loan could be like 5%. What's a bigger number? Give you a hint. 20. Yeah. I guess I just, I didn't fully understand. So why'd you do something? Why'd you do it then? Why would you just gut do it instead of at least ask one person, including GPT? She would have told you. Yeah.

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Well, Southwest Rapid Rewards. Here, here alone, you spent more than you brought in. Here alone, $112. I use that card as like my quote unquote business card. Congratulations. Then your business is spending more than you bring in. What are you, Amazon? You're getting seed funding. You don't need to run a proffer for decades.

I don't know what that means. No, I use it for like flights and all the stuff that I do. So like wonderful. Yeah. How about making money? Not this. That's what I'm trying to do with it. Like I travel to bodybuilding shows for my athletes and like, how do we pay for $1,700 rent? Then if our expenses to run the business are thousand five hundred hours on average more. Oh, by the way, I'm just one card again because we have many more to go through. I do have another card.

There's a lot of accounts to go through here, okay? It's going to be more than that. Spending across the board. I figured I could write it off. It's more than you even make. And again, are you classifying everything properly? You're going to have to pay an accountant to go through everything. Or you're just going to put yourself at risk of being audited. Very low chance. Very low chance, but at risk. Amazon. I'd like to see your Amazon. Starbucks. Record ATX. That's for my podcast.

You have a podcast. I do. Okay. For someone that's on a podcast, you're not very talkative. Well, you're not giving me a lot of room here. Okay. So the podcast. What's your podcast about? It's a fitness-based podcast and it's a way that I bring athletes in. So that's why I put on my business. What's your listenership? Like my audience or the numbers? Per episode average. YouTube average.

Okay. And Spotify and Apple pod. I get a lot more streams on there, but like total listens, I hit over a hundred thousand streams. Congratulations. That's sick. So that actually could be a potential way to bring in some clients. Good. I was going to say, if we're hitting like 20, I'm like, you know, is that like the money we're putting in? I was like, wait, wait, why is the podcast? What is the record? ATX, 260, 84. That's not paying for it, but.

You know, it's not paying for itself. No. Are you using someone else's studio? Yeah. Film out of your house, dude. Who cares? It's a starting little podcast. Get a couple of mics. Hold it up to your face. I like it. So I do it out of studio so I can clip it for social media. Oh, I'm sure you spend fifteen hundred dollars more than you make. Yes. It's all going to pay off in the end, though. With the clips, guys. Gotta get the clips. Gotta get the clips. High quality stuff. It brings people in.

Sure it does, but you can make a cute little corner in your apartment. It's not a s*** apartment. It's $1,700 a month. Get some plants. Have the light on them. Make a little corner. Get a couple hundred dollar microphones.

and just record from home. Yeah. Like how this started, how most everyone's podcast started. But because I already started in a studio, like it feels like a step back. Depends. Show me a picture. Show me a picture. Go ahead. Show me a clip. Let me see a clip. I want to see a clip. Let's have a little clip. We don't let people plug, so no one will be able to see it, but I just want to see it. I turned my phone off. Turn it on.

one button maneuver this is not paying for itself that's the issue also why did we have rent withdrawal 3800 are you paying the full and someone pays you half how does it work oh i double paid on accident i know i don't know how i did that i think i submitted i think the website like glitched out when i was paying my rent because i accidentally overpaid my rent so i didn't have to pay the gram the gram's being pulled up let's see

All right. Let me see this studious face. $4,500. Okay. So those little wooden planks here, I'm going to take a screenshot and we're going to, uh, you can send that to us and we're going to just black out your name. Um, uh, for the background, those wooden planks, so easy to just set up at your little, at your place in the background. Now there are a bit more texture. Is that your logo? Yes. Okay. So maybe you could get a TV above it. This isn't,

incredibly hard i do see what you're saying it is nice it does look nice these are a couple hundred bucks but again you know these you know this is one of your rents and you're investing it for you to own but really the rest of this is just some led lighting dude and that is not that hard that is not that hard look look at that light right there you see that by you i could turn that purple right now and it would be it'd be fine um

And also the texture changed in the next one anyway. You got a little target lamp there in this one. So I'm going to take a screenshot of those. They have different rooms that they will like assign based on what's available. You could totally get it. You could do this yourself. I'm sorry. You could do this yourself. It would be a little investment. It would. But you'd own it and you would never have to pay ongoing rent for it. I do like it. And also, no offense. I mean, so sometimes it's hard for us to know this for a fact in the world of creative work.

But there is kind of the idea that it looking nice helps people stick around for like the first couple seconds. But after that, it's not about that. It's whether or not the content is good.

So people are more instinctively to click off if it looks like s*** in the beginning. But as long as they stay for a few seconds, as long as it's entertaining and educational, it really doesn't matter. I mean, I'm willing to give it a try. I'll do it. Yeah. I like the convenience of the studio. Well, you love the convenience of Starbucks because you go there every second of your life. And apparently that's a business expense for health and fitness. So I do a giveaway with my athletes every month, like a monthly giveaway. So I'll give away Starbucks gift cards.

What just why though? Why do you need to that? I like people want to get healthy and fit. Do you need to be doing this? Well, I want to cultivate community and a good way to do that is give carbs. Yeah, with my with my athletes. They appreciate it. Growing the team. It's how I'm creating community. So yeah, but think it's like it's hold on hold on hold on hold on hold on. You know, we I don't want to keep just keep comparing things. So since we're talking about that, I know the world of community and

And a lot of things like we're working on more of the membership things here because it just helps us and stable up and downs. And what we're going to be doing is people that were members for over a year. I'm like getting a handwritten letter and sending to them something much more personal. We can build community with things that you can do that are more affordable and in your in your

budget that's the thing in your budget I see you wanting to say something but in your budget you can do things that cultivate community without spending money you literally do not have I talk to them every week so that's what I was going to say is like I these are my athletes I have check-ins with them like I have touch points with them I I'm literally more personal

I understand that. I think it's nice to have like the monthly challenges to give them something to strive for. So there's a challenge. They have to win through a challenge. Yeah. Like it'll be a gift card. They'll win the challenge. Well, it's not my biggest gripe here.

But Starbucks continues. Is every single one of these a gift card? Because it's Starbucks, Amazon, Starbucks, Starbucks, Record ATX, or Record ATX. That's another expensive thing. Starbucks, Starbucks, Kettle Fire, Beacons AI. My monthly newsletter that I send out, and it's like the link in bio. Amazon, Record ATX, this isn't a monthly fee. You go in there and pay that every...

time yeah buddy you could build your own set for the price that you spend it once in one month because you spend so much there it's 200 for an hour how many how many do you film a month four take that build your own little set you already have a tv move it over you'll be fine i don't have a tv actually okay join us in the 21st century and get a 300 tv

Amazon, Starbucks, Amazon. Interest charges here so far, $489. $149 of fees. Fees? You're having missed payments? Fees? What are there? Fees? You have fees up the butt. This is just fee central. $149 fees this year. I didn't realize that. I don't know. My producer is just saying you go to coffee shops to work and buy coffee every day. Doesn't sound like only gift cards. Sounds like you're trying to bullshit me.

No, the Starbucks is gift cards. So what are the other ones then? So you still go to coffee shops and buy coffee every single day? I do. Because you can't work without that. Definitely can't work in our $1,700 a month place. I have a hard time focusing at home. Why? You have no TV to distract you. I'm on a...

I'm a bodybuilder. I'm on a diet. And if I'm at home for too long, I just like go check the cupboard and the fridge over and over. I like to get out of the house. And you know what they tell fat f***s like me? Make sure there's not things in the cupboard and fridge. I mean, there's no snacks in there. Okay, but getting coffee, like you cannot afford it though is the thing. That's all I'm trying to say. There's alternatives than going and spending money we literally do not have every day. I'm not against it. Dude, budget...

Have a good retirement. Have a fully funded emergency fund. Go get your coffee. Get your sweet treat. Absolutely. You know, 50-30-20. 50% of needs, 30% of wants. I want you to spend that money. You're pulling out of retirement. F*** your coffee. How about let's have a chance to survive in the end. Sorry for interrupting you. I keep wanting to say something the moment you start. No, I think that... I just think it's... To like go to a coffee shop and use their free Wi-Fi and work. Go to a park! Go to a park!

A park doesn't have Wi-Fi. I need internet. Use your phone. What are you talking about? You have service. It drains my battery. The hotspot only lasts for like an hour. Work from home. Work from the Austin Public Library. It's very nice. I have to speak out loud. I've been at the Austin Public Library. Then I will bring us back to solution number one. Work from home. I get distracted. I have to like...

I can work from home until a certain point, but I really like my routine. And like also. Yes, that's what it is. You like it. Let's be honest about it. You like it. You like the routine. I'd like it too. But again, it is literal math. You can't afford it. Like it is really as simple as that. One card, one single account here. You spend $1,500 more than you brought in on in your normal month. Sorry, that's not true.

$2,500, right? Yeah, $2,500 more than you bring in a normal month. I guess I just don't keep track of my money that way. Oh, in the mathematical way? Well, because if I get a new client and they do a paid-in-full, that's like a cash injection. So to me, it depends on the month. But we saw how much money you brought in this month. It was $6,500 and you spent $7,000. So this still doesn't make sense. That's an invalid statement.

You just don't know how to budget. Go through our budgeting program. You get it for free by being a guest on the show. Go through it. Go through the investing one as well because we'll tell you not to be a d*** with your investing like you're doing right now. And then also go through our debt class as well so you can pay off your debt in the best way but also learn how to utilize debt properly in the future. Please go through all our programs. We spend like six months building each one, working with experts. Go through them. They're designed for you. Please. Okay.

I will. I will go through them. Thank you. Many follow-up guests come on. They're like, oh, I didn't go through it. And then they still fuck up.

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I think what I see is the opportunity for me to get a new client like every single day. And if they do a paid in full, then that immediately puts me over like whatever recurring I get. It is literally not correct, though. We have the numbers. It's just not, though. I understand. I understand you have like those set numbers, though. Every month could be different. You have one snapshot of one month. OK, you told me your average was forty five hundred.

so far for this year but that doesn't mean that i can't reach like 10k recurring months because because because at some point in my life i might make a billion dollars i might as well go get a yacht right maybe no that's stupid that'll make me die in poverty that's where you're headed you'd have fun on the yacht though yeah until it got repoed after one day the best day of your life yeah until you get evicted from your apartment because you can't pay it

But that won't happen. Says who? You spend more than you make. What are you talking about? You're just going to miss it one day unless you have a great support system that'll just enable you and your bad behavior. What's your car? By the way, minimum payment on the last one. I didn't say it. Minimum payment is 40 bucks. Okay. What's your car? My car payment is 384 a month. No, what's your car? Oh, Volkswagen. Year? Model? 2018 white Tiguan. Okay. You own a CarMax? Yeah.

Car Max is shit. It's always so much more expensive than the real value of the car. And there's no negotiation you can do on it.

It's a 10.95% interest rate. So for example, here's I just your brokerage. I don't even remember what it was, but I opened my brokerage. Moo moo. I go ahead. I buy some S&P 500 just following the overall market. U.S. economy best businesses. I do that best. I'm hoping for in return on an annual basis. All up years down years combined is about 10%. Your interest rate on this is higher, meaning no matter essentially if you're investing in what is one of the most stable investments, you're still losing money.

I was in a tough spot when I got that car. Go on. I did it. So at the time I didn't have a car. I was using my boyfriend's and his kept breaking down all the time. Like literally in the middle of the intersection, his truck would just break down. And so I was like, I just need to get my own car because I needed that independent. I was in that time. Oh, now that's fair. What part of town are you in now? Like off. No longer fair.

You have good public transportation in New York. Before, you didn't. We bleeped the areas, but in the first part, yeah, you actually wouldn't be able to get anywhere. So that's where we were living, and that's why I needed a car. Okay, I can vibe with that. What was the purchase price of the car? $27,000. Okay, you did not need a $27,000 car. You could have got a $10,000 car.

So, I mean, sympathy eroded, right? You had me for a second. Back then I had my corporate job and I was coaching on the side. So I had to, but you still didn't need to get that. You still could have got a cheaper car and then pay it off quicker. And then all of a sudden you essentially would have had a cash car paid for car limited risk over your head. This doesn't make sense. What were you making? What were you making? Uh, 80,000 for my corporate. And then I was getting like two to three from coaching like per month. I mean, um,

But I wanted like a bigger car so that it's like a SUV. Lots of wants. It's size SUV. Well, yeah. Cool. Now you can run over children more effectively. What? I had two dogs, so I wanted enough room. I've put two dogs in sedans many a times. Oh, it's terrible. They just pant in your ear. It's horrible to drive with. Oh, no. The existence of the dogs I love.

I want to be able to drive without them like being in my space. So I got a big enough car that I could put them in the back. Want, want, want, want, want, pull from retirement. Want, want, want, our entire future. Want, want, want. Your life is wants. I would prefer that you want to live a halfway decent, successful life.

secure life, retirement and a good business. No, you don't. Your actions aren't supporting that statement in any way whatsoever. Not at all. If you wanted it, I'd see some actions. There's no actions. I do want that. No, you don't. I do. The numbers would support it. They don't. You might want it, but you clearly want the wants more than that. I think that there's enough. Like I want to be skinny, but I want the crumble cookies out there a bit more. So there is the level of,

See, but I get that. Like I practice discipline and things all throughout my life. So that's, except for your finances. That's an area of improvement.

But that's why I'm here. I genuinely want to improve. Again, that's not a thing. I genuinely want to learn how to improve. Well, obviously, we'll get there, and that's what we're doing. But we're sorting through where your behavior is, where your mindset is. And so far, your mindset's in an area where if we give you a path to improve, it doesn't lead to success. The I had to get an SUV so I didn't hear panting, I don't give a – how much we get something we can afford, right?

I thought I could afford that. When money comes in, I'm able to justify these expenses because more money might come in. It's like, this is not how we're running a business. Okay. $13,931.13. 10 point. What was it? It was like a 10.9% interest rate. Minimum monthly payment, $384.16. The car's worth $11,000. So yeah, about a 2,500 bucks off. Okay. Okay. Okay. Okay.

Do you know what that means? No, can you explain that to me? If you sold it, you need an extra $2,500 to pay off the loan. Okay. It's worth less than you owe on it. For what it's worth, that's most cars and most loans. That's not a uniquely you thing, but I'm a little terrified that you didn't even know the existence of that or even what that meant. I didn't know what that meant. That is a bummer. Oh, it's a bummer. It's a bummer. Big bummer.

What's FNBO? First National Bank of Omaha. It's my bank out of Colorado. Is that where you're from? It's where I lived for a long time, yeah. Okay. So this is your credit card with them. Your lovely personal bank lending you money and interest. No interest, actually. Is this in an interest-free period, or do you pay this off every month? I try to pay that one off every month. What is TRY? TRY.

Does that mean you don't always pay it off? Yes. Like 90% of the time it's paid off. You're not a credit card person. You're not a credit card person. You can't, you know, listen, it is okay that you're not a credit card person. Not everyone is. You don't need to use a credit card. It's a great perk. It's a great tool. If you're disciplined enough to use it, if we don't always pay it off, you're not a credit card person. I think the, the kind of cards that I recommend for people like you are the phase card, um,

It's the kind of card where you put money on it, then you can only spend what is on it. And then you still get the credit card rewards and you still get improvements to your credit score. So I like those. If you cannot pay off a credit card, you are not a credit card person. You should not have a credit card because you do not know how to manage other people's money. Why do people say to use credit cards then? That's what I don't understand. One, Americans are morons with finances. We have record high credit card debt, record high consumer debt. So I don't really give a f***.

And two, I would say use credit cards because you do get cash back. There are good bonuses, but that is if you manage them correctly. I would say use credit cards. And then the part you close your ears to is if you can pay them off in time always. So it's like a tool that you can use. Yes, but also yourself with in an unpleasant way. Yes. It's a bad tool. Okay.

I can get behind that. It's like the scale. You can step on the scale and it can either motivate you or it can make you want to give up and go eat more. So I get it. I understand that it's like a tool. I just feel like I don't have good financial literacy. No, so you're not a credit card person and that's okay. It's okay to not be a credit card person. You don't need to be. Who cares?

What about the perks? What perks? You're losing money and interest. Yeah, what cashback? You're losing it in interest. Cashback's probably 1% or 2%. You lose 30%. I'll ask you again. What's the bigger number? 1% or 30%. Okay. Target. What's astound? Astound. What's astound?

62 bucks electric or wi-fi something like that astound okay target you're going to your target only spending a few bucks so you're just going in getting some bull likely flower market great med spa 600 you can't afford to survive who the are you going to med spot 600 it's part of my business what i'm like a i'm a public figure like a health and fitness coach i

a professional bodybuilder. Like I have to keep my appearance up. So that's what that was. So the pre pickle and put it on your eyes at home. It's not the same. Also known as a cucumber. Okay. As a bodybuilder,

All right, guys, I get it. You need more financial audit. So we've decided now in our membership below, you get two exclusive, see nowhere else, uncensored financial audits every single month. Oh, good. No way. Your couch? Hopping? Places I like stay at for the job. You're relying on bookings for a place to live? Yeah.

Also, three post shows a week for every financial audit you're seeing right here on YouTube. In the post show, we have an extra 20 minutes for every single episode where we go into more drama that we didn't uncover in the original episode. We can't find you on Facebook. Did you block me on Facebook?

No way. And then included in the membership, every Tuesday, we have a member live stream where you come in, you hang out with us, we answer your questions, and the whole crew gets together. We play games, we mess around, and we chat with you. I have a pair of salmon shorts

- On that desk, we're gonna change into right after this. - So you dress like you've smoked a for the first time when you go on a date? - He's first grad, first grad party. - Then there's always extra bonus things like for example, an office tour. - The team grew, we have to

- Eat out of here now. So this was gonna be the fun area, now it's not. We upload hours and hours and hours of extra content just for you and it helps support the growth of this channel and the growth of this business. Join the membership, link in the description below. - When you eat a lot of food, your masseters get like massive, right? 'Cause you're chewing all the time. I eat like five meals a day, lots of meat and my masseters were getting massive, like distorting the look of my face. - 'Cause you just can't afford this.

have all these reasons for things and they're not always the absolute worst reasons but there is still the mathematical reality is you cannot afford this like you can't your debt is getting worse your debt is getting worse you cannot afford it like where do we go you know where do we go when we just can't afford it like what how do we improve from there also

You can get a massage for like $75. Why don't you go every other week? $75 is cheaper. $150 is over $600. Because it's not a massage. I needed Botox. Oh, this is Botox? Sorry, I think I glossed over that. You need Botox? I wanted it. I wanted Botox so that my face didn't change so drastically. Get an ugly face. Who cares? Not actually, but...

Well, first of all, did the doctor tell you to do this medically diagnosed? No, but for me... Okay, then I don't give a... Do what a doctor says. As a woman, Botox, nails, waxing, hair, this upkeep...

It's important to me. Sure. Like it's not just, well, I have a TP fund and want it. It's I, I need to hold on. Let's not put Botox in the same scale as hails and net nails and hair. I will support, you know, things for self-confidence. Absolutely. But again, but this is coming down to you literally cannot afford this. We can,

we can probably get you a haircut every once in a while. Absolutely. We can afford that. And in the TP fund, in the end of the budget, we'll have room for nails. Absolutely. Are you going to go super extravagant? Not necessarily, but maintenance and just looking good. Sure. $600 Botox is not the same. It's self-care to me. Your self-care. How about your self-care being able to.

literally be able to have a healthy retirement. Again, I don't think people like you understand this. I really don't. What happens when you get to retirement with only like $50,000? You're not going to be able to do anything and who knows what social security is going to look like. It won't matter the amount of Botox you had at that point. If you can't seriously afford to put a roof over your head, it won't matter if you are stressing and not able to sleep in your retirement years. I

If you are able to retire because you had a little less Botox and you're able to live a good self-esteem to retirement in dignity, I am okay with being the bad guy saying you're not allowed to get a couple of Botox injections. Okay. Seeing you live an actual good, decent life. See, I just, I disagree. I like, I think I'll go on. There's so much. Let's have some logic.

I have so much time there. It's not like I'm no, no, no. You little, that's not how this works. That's not how this works. You know what time is? Time is compound growth in the market. The only reason people are able to retire by having a million dollar nest egg is because they put in a little bit amount of money when they were younger. You're already finishing your best decade of growth for compound or best decade of life. Best.

decade in your life for compound growth. You're entering your second best decade. This is giving you time and putting 50 bucks. Now it becomes, you know, a couple hundred bucks, put in 50 bucks when you're in 50, it's only going to become like $55. It's completely different. Time is what you need. Giving up time is giving up your retirement. If you're not investing in your twenties and your thirties, you're done.

You're going to have to play major catch up. Your catch up that you're going to have to do is investing like 60% of your income. It's going to be something crazy. That's going to be unsustainable. So that's completely wrong. That's only if I continue in this trajectory. Huh? But to me, like I. So we're banking on the hope again. I can run, not invest in retirement because I'm going to be a billionaire someday.

No, that's the dumbest thing. Again. I mean, Austin, you never know who you're going to meet here. You think you're going to meet Joe Rogan and all of a sudden you're going to look young forever? Well, I just think the upkeep of my appearance is important for my business. Dude, I'm not saying become an ugly f***er.

No one's saying that. And also talk to a doctor about that. If that is an actual thing that they are saying, you are doing this on your own. Yes. I'd support it more if this was a medical diagnosis that they're like, you know, because of this, I want you to do this from under medical supervision. I mean, you could. Like, you could say that, like, your masseters cause headaches. I would want a doctor to be guiding you through this instead of your own little GPT with money you don't have. I thought it was.

It's not like it's a monthly expense either, though. The Botox lasts me a while. No, I know, but you just can't afford it. A part of this conversation is going to be... This part of the conversation is really difficult for me because I don't think I could just get into your head. This is the concept of you literally could not afford this. You did not have the money to pay for it. You could not afford it. It's as simple as that. Again, I would not care about the Botox if you could afford it. It's a different situation. Yeah.

It's as simple as you could not afford it. And you're banking it on getting Botox and birthing Elon Musk's 40th child in Austin to make it. Like, okay, you're going to Dutch Bros as well. You know, it's that important eating of the jaw. One-way coffee. North Coast music, North Coast music, North Coast music, North Coast music, North Coast music, North Coast music. What's going on? I went to a music festival with my best friend.

You don't know. You don't know the life of saying no. You don't know the life of delayed gratification. You do not know the life of financial sacrifice. You're willing to take a step back from your better paid job to make it more on your own, but you're not willing to cut back your lifestyle.

And that is going to destroy you. And you have no idea this bond that you are building right now. To be fair, this was my first ever three day music festival. To be fair, I don't give a f***. I don't understand. How does that literally, how does that, how does that possibly combat anything I just said?

It doesn't. Guess what? I'm going to a music festival tomorrow and if I didn't have money to do it, I wouldn't care if it was my first or fifth. It doesn't matter. I'm just trying to explain like my thought process behind why I did go. And it was incorrect. It was my best friend. She

She and I. Is she going to die tomorrow? She like stage a million cancer patient? No. Okay. Then we can go next year. Well, it sounds good when you say it like that. But like she. Yeah. When you use two seconds to think. She really wanted to do this festival. And like friendship is really important to me. Cool. Yeah. Will she be your friends three days after it's done? Yes. Okay. Then it doesn't matter. Take her for coffee. No shit.

It's also about the fact that she doesn't live here. She lives in Florida. So we planned to go to this music festival. It's also about the fact that you literally cannot afford it. That is all this comes down to. I am not against this as a concept. Again, I am going to Austin City Limits live. I'm doing that these next few days with my friends. I'm excited. It'll be fun. Chaperone. Beautiful, especially in the green costume.

And she's my lesbian wife. She just doesn't know it. The thing is, I'm doing it because I can afford it. If I couldn't afford it, I would be doing a little bit of sacrifice. So I guess I was hoping up until that point that I would be able to afford it. My hope was that I would get new clients and I would have more income. That's interesting. So maybe our little concept of...

I'll be able to afford it in the future didn't work. So why is it going to work? Why is it going to work now? So you're still living that mindset. That's how you've been able to back up all your spending so far is because you're going to make more in the future. But you literally have an example right here where you thought you were going to make more than you did. You didn't. Now all of a sudden we're putting it on our credit card. It's about more than we make. You've proved it. What are you doing? The definition of insanity? Same thing over and over again? Is that what your life is? Is that what you're trying to do? It's not what I'm trying to do. Okay, well, it's what you're doing. It's what it looks like.

Have you had dumbbells hit your head? Not recently. Okay. What do you mean? That's what it looks like, but it's not what it is. How does that stand up to me? Like the experiences that you have in life are more important than worrying about like the day to day. Okay. Minutia. And so I like, no, you know what? And that is fine. So we're done then. Right.

So we're done. That's okay. That's okay. If that is how you want to live your life, that is okay. I support... Whoa, hold on. Hold on. I support anyone deciding to live their life however they want to, as long as it doesn't directly hurt someone else. If that is how you want to live your life, that's perfectly fine. Here, the intent behind here is...

is to learn how to manage our finances so that we can have a chance for decent retirement, building a business, whatever it is you want to do. That's what we do here. If to you, living life is more important than that in terms of getting the instant gratification of fun, fine. That's okay. But that means this is done. That means this conversation is done. That means there is no point of this because you are not ready for this. That means you don't care about this enough. You care about the other thing more.

I do care. I guess I'm not more. You care more about the experience of going out and around. I want both. You can't have it. That's not how life works. Sometimes you need a little bit of sacrifice, especially while you take a pay cut in half in order to have your own business. Sometimes you have to have a little bit of a sacrifice, just a little bit, even.

A little bit of a sacrifice so that you have a better chance of success in the future. And that's okay. It's okay to have delayed gratification, huh? I can do that. Then why haven't you? It's the question they can never answer. I haven't had any. You're going to Miami? Oh, you already did. Hold on. You went on a $3,000 trip just a couple months ago? I did. That's basically your monthly income.

It was my best friend's birthday. Yeah, we never have any of those. She had a hard year. What was her hard year? She went through a really hard breakup. She moved from New York to Houston. What was the tragedy? She just had a lot of things happen in her personal life. And...

She deserved a fun birthday. Okay. Could she have come to you? Come to you? Also, $4,000 is not required to get to Florida. It's like, that's the crazy part. If I was seeing like a $500 thing, would I be happy? No. But it is very different than $4,000. She's...

What, did you get her like 50 strippers to make her year better? No, she's a bougie friend. We went out to a lot of like high expensive dinners. I don't think she's bougie because you were spending all the money. I guess like I am too when it comes to my friends. But like I paid for the hotel and I had dinner and we went to high end restaurants. Oh, f***.

Like four or five dollars each. So again, that is what you choose over having any financial security, over having a successful business, over having any chance of retirement. That is what you choose is a bougie lifestyle that you can't afford. I think you're entitled to it. I mean, you're not, to be very clear. You're not. No. If you can't afford it...

You can't necessarily get it unless you're putting it on debt and that's what you're doing. Yeah. Because you're born doesn't mean, oh, here's a one-way ticket to go in and get a Michelin star meal every night. I don't think I'm entitled to it. I genuinely just like treating my friends. That's what I thought of it as instead of like... I didn't try to think about the money aspect of it. I was just trying to think about how I could make it memorable. Yeah.

Yeah. Well, I love the heart of it. I love the heart of it. I like to get things, got the office cookies today. I like to, you know, whatever, whatever the random thing is, you know, sometimes I just pay for dinner. We went to dinner a few weeks ago and paid for dinner. You know, I like to do it as well. It's fun. It's fun. You know, when you're in a blessed position, you're

That is like truly just blessings and just that you just kind of stumble into. You're like just lucky. It's like, yeah, you want to just when you want to treat the people around you that you love. Yeah, that's great. Again, this comes down to the thing I've mentioned multiple times in this conversation, almost more than any. You just couldn't afford it. And that's all. That's that's how it works in the end. There is a mathematical equation here of one minus one equals zero. Yeah.

You know? Yeah, I know. So, like, you just couldn't afford it. I'm hearing it. Yeah, but will your actions reflect you hearing it? That's what I'm worried about. Oh, and be glamorous. 276. What is this? Where was the Botox this time? I think that was hair. Haircut and styling. We got our in-flight Wi-Fi. It would be a shame if over the Gulf of Mexico we couldn't scroll through TikTok. I was trying to work on the plane. Your work is work from anywhere. You could have waited. Oh, FNBO. Again.

Oh, is this a checking account? So is this all your debt? Perhaps. Yeah. What is it? Car cards? Southwest. Yeah. Volkswagen. FNBO. I owe my dad $4,000. Why? Listen, if we owe a family member money, we're really not doing it because that's personal. That's when we do not get to have any paid for fund. You are grinding to pay off a family member.

Why do you owe your dad? Why do you owe your dad $4,000? So when I quit my jobs in February, I was also living downtown in a place that I could no longer afford. So I needed to move. Okay. And I had also just gone through that breakup. Stop with the breakup. Breakups are sad, but that doesn't mean we just destroy our lives. No, no. 100%, I agree. I just like...

To be totally transparent, like he was helping me financially as well. Okay, okay. So he no longer was doing that. That's valid. And then, yeah, I needed to like move out of my place. It's a little less valid because you should have had an emergency fund and we don't quit a job before we have an emergency fund and your emergency fund would have been able to cover a breakup, but I do get it. Yes. So I called my dad and I only asked for enough to like,

cover getting out of my lease and getting into a new cheaper lease but he he gave me a lot more than i asked for yeah but you owe it i do so it's not gave he you've lended he lended you have like a minimum monthly payment set up hopefully it's zero percent interest no he has not asked me for repayment yet okay what is the conversation that's around this ben then the future of this

I've been waiting for him to bring it up and he hasn't. So is that what a loving daughter would do? No. I mean, my plan was to try and see him at Christmas. I haven't seen him. When was this? When did you borrow this? Back in February. I wanted to see him in person and like talk to him about it. But I've. Where is he? He's in California. Okay. Make a phone call. Do it. Sometimes we call people in the post show. Maybe we'll do that.

Have you borrowed money from your dad in the past? Or is this the first time? This was the first time. Have you borrowed money from friends or family in the past? No, normally friends borrow from me. It's okay to fall back on loved ones. It is okay to have a good support system when going through a hard time.

But again, you did quit this job without an emergency fund or any plan. I understand the job wasn't great and we probably didn't work with someone great. But then we're also getting a replacement job at the time or working a few jobs to make ourselves survive. You know, you wanted to run the dream of you owning your own business. And you put that desire above being able to pay your bills to be a responsible adult. Yeah. And again, the breakup, that's something we can't control. But again, that's where an emergency fund comes in.

Really does. That's why I always say it's so much risk to have so much dependency on someone that you're not married to because you never know what's going to happen. Deaths happen. Breakups happen. Yeah. Okay. So in this checking account, it's almost $4,000. For this show, that's incredible. Actually, I would just say that's incredible. Thank you. That's great. I think that's my emergency fund. In a checking account? Well, I have. In an account where we're spending money? No. No.

Okay. That's not an emergency fund. You put it separate. You only touch it in the case of a... Emergency. Oh, okay. Yes. I'm going to just... You know what? Every guest on here gets a certification free thanks to Course Careers. They're great. They help people get jobs, but obviously you already have the job. But you should get the accounting certification so you can learn how to do accounting of your own business. Okay? So just take it. Okay.

I can do that. Life hack wellness. Oh, $95. Oh, I read the balance. Okay. What is it? Is it your gym? What is it called? Life hack wellness. Oh, come on. You're spending $100 on it. You don't know what it is. You don't have money. Also, you started with $1,000. So that's not an emergency fund. That wasn't stagnant. Maybe it's like an IV.

Oh, hold on. Hold on. That's an important thing to note. You started with $1,000. At the time of the statement, it ended at four, but that doesn't mean it didn't go down to one. I'd consider it that savings account that you were saying if it was starting and ending about the same. But I think we just got lucky at the time that the statement was pulled. Oh, maybe I just got paid. I have two checking accounts and then one savings account. So I'm not sure which one you're looking at, but I use... I told you, FNBO. Okay. Okay.

Okay, and then, you know, we stopped in, probably got a little drink from Publix. Netflix subscription. Apple in-app something. Some bull... Raw sports supplement. 151. That's like my vitamins and supplements and stuff. Which is great, but the thing is... Listen, maybe this business is too expensive for you to do. Maybe you're not charging enough. Maybe you don't have enough clients. Maybe your business isn't good enough. Because, again, it's not like some of these are invalid. Right?

Right. They're just not paying the bills. I get that. I use those specific supplements because I'm hoping to get like a sponsorship with them. So I've been like I've been using those supplements for a while and it's an investment into my health. That part I'm okay with. No, you don't use them with the hope of getting a sponsorship.

I'd probably connect to an agency, have them because they have representatives that will go get you brands that you feel comfortable with. You're not using a brand hoping to get a spot. Well, you you can't get a brand sponsorship like in fitness if you aren't using their products. That's.

Well, no, you usually use it after you get the brand partnership. Yeah, but that's not authentic. That's like not genuine. You wouldn't go sign with a company. No, no, no. No, you absolutely test. We test everything as well. But you are literally saying that you're only having this very expensive thing that you can't afford with the hope of getting the partnership. I'm not saying don't get a partnership unless you test it or without testing. I'm not saying that. But you're using this so that you can get a partnership. That's not usually the path.

to a guaranteed partnership. You need someone on your behalf going out there and hounding. Okay, that's fair. I get that. I was just saying like I'm using it because I'm trying to open that door of opportunity. Guys, for just a few weeks only, our brand new debt class is 35% off.

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uh raw sport supplements probably like over a year now and i know people over a year i know people who are asking them so i'm well that's good again i'm not against that part it's your reasoning behind it that was bad especially if you're using over a year lifting around we know you pay a bunch for a car so you must have been drunk as no lift oh apple cash sent out to uh i don't know but 350 bucks apple cash sent out

You don't know where your money goes. You don't know anything about your finances. Please go through the budgeting program. Peacock subscription. There's nothing on there anyway unless it's one of those sports games that they only put on there for some horrific evil reason. PayPal, $150. Out for that. Venmo, $175. AMC, at least go to a real movie theater. You live in the world of Alamo Drafthouse and a lot of other really good places. The Flix. The Violet Crown.

sure flicks I pick movie house and eatery yet you go to AMC also you shouldn't be spending money so don't go to any of them you also went to AMC again the farmer's dog farmer's dog I had them the thing is and what I was advised by someone who works with dogs very closely is that since there's it's only mush it's good for nutrition but apparently they might not be getting all the nutrition they need by the way but either way

Not as good for the teeth. So a lot of the teeth cleaning for dogs comes through actually eating the harder food. So I actually ended up switching away. Also, you can't afford it.

So there is that. Violet Crown. So you did do that. And then AMC. We went back. And then the nail spa. Oh, there's the nails. Okay, we can do this in cheaper ways. You're just, again, you live the bougie lifestyle. That's what you specifically said. Apple. In Apple. I don't know. Gems. Who the fuck knows? $18.66. Venom in out. $85. You don't know where that went. You never know where your money goes. Spotify. You can listen to ads if you're spending more than you bring in. Cash app. $160. You don't know where it goes. Not going to waste the time asking. More Lyft ride. Yeah.

Google Workspace. Yeah, that's fine. Venmo payment. A thousand dollars to who? Oh, God. I'd have to look at my history. You don't know where you sent a thousand dollars. I want to say I sent it to my best friend who was in trouble, but I'm not 100% certain. Trouble? What trouble? You're in trouble.

I get it's the blind leading the blind then. I don't know. No, what trouble? She, I have a gun to her head needed a thousand dollars. No, she, she needed money for her car and her rent. Oh, you're not in the position to loan. You're taking out loans. I'm sorry. Again, the heart. I'm not against it. I'm not against it. One. Do you even know their financial situation? Are they spending money on fun?

Yeah. Okay, then you're just enabling their bad behavior. They're not budgeting. They're relying on others to pay for rent while they're also spending their money on bull. Okay, so one, this is bad move. You're not actually supporting them in the end. Two, you don't have any money. You're borrowing money from people. You're not lending money to people. You think they're going to pay that back? Yeah. Yeah, with what money? They can't afford rent. She will. I don't know her means, but she'll pay me back. Oh, you don't know her means, but you lend her money. Yeah. Great. Yeah.

Yeah, we don't do that. I'll lend money, but I need to know their means first. I'll give money, but I need to know their means first because I don't want to support bad behavior. You enable them to never make corrections in their life, to always just rely on others instead of being self-efficient. That's fair.

More Lyft. Donations to ASPCA. Again, I'm not against the heart. You just literally have no money. More Farmers Dogs. King Scoopers. Lyft Ride. Dutch Bros. Another in-app Apple thing. You went inside, got a drink from QT. Apple Bill. Venmo payment. $20.42. Doubt you know where that went because you didn't know where $1,000 went. Lyft. More Lyft. Alta. Gotta look fresh and pretty. You know, it's all about that social media. Airport. Dunkin' Donuts.

Apple cash sent out. When is that guys and BS Venmo $300. I'm not even going to ask farmer's dog, Apple bill lift kid or clips clips. Oh, kidder clips. Is that grooming? I honestly don't know one thing. You do not know one single thing about your own purchases. This is crazy. It might be like, also, what do you lift everywhere? Hair stuff. Where do you lift everywhere? Cause I thought it was just going to be one or two times, but it's lift, lift, lift, lift four more times in this.

I might have been traveling. So, like, I was lifting to and from the airports and whatnot. You probably can't afford to travel. No, you can't afford to travel. That's the summary of this episode. You just can't afford. Bacon and Jam, Alice Cafe, Artisan's Market, Two Lift Rides, Apple, In-App, HBO Max. Finally, a good streaming service. The other checking account is just...

money back and forth yeah i think this is what you're saying is your emergency fund because there's four thousand here it's like in and out yeah oh put that center emergency fund because it started again with like two thousand so it's not consistent then two hundred dollars in this one is his money back and forth oh good the retirement accounts violent crown what is that the violent crown two hundred forty dollars oh that's waxing oh that you're saying it was a movie theater but it's getting your bear great

It's like my face, my armpits. It's everything. It's not $240 for just one waxing service. Yeah. There's a lot. I don't know. Holes are expensive. $1,000 in this Fidelity account. Great. And $24,000 in this one. Oh, $25,000 for f*** sake. Where was it at its peak? Where was it at its peak? I don't want to tell you. Where was it at its peak? $45,000. You're going to f***. You're just ruining your life. You're ruining your life.

We're borrowing to spend more on credit cards, borrowing from our parents, giving other people money, spending money on bulls**t. Can't justify our business expenses at all because we don't make enough to justify it. And if you write it all off, you're writing off more than you even make, so it doesn't even matter. While also draining our retirement by half. I don't know. I don't know. Let's see where you're at, dude. What's your rent again? 27? 1775. 1775? Okay, utilities altogether, including internet? Yeah.

Probably like $200. Okay. Phone bill? $85. Do you own your phone? I don't think so. Switch to helium. $15 a month. Same towers as T-Mobile, please. Okay. Will you do that? Helium? Yes, helium. Okay, $15 a month. I can put that in your budget. Gas, room, room, drive, drive. Like $35 a month. I fill it up like once. I don't drive very much. Oh, it's because you lift everywhere. Okay, I'm not putting that in your budget. I walk everywhere. Okay, then you definitely don't need a car. We're probably going to sell it.

Like, actually, legitimately, we might sell it. Lift if you need to in the extreme cases. Right? Are we willing to do that? You do not need your car. I know what part of town you live in. Totally fine. If you need to catch a bus somewhere, it's totally okay. Even get your relatively close to the train as well, which will take you north if you need to go north, if you need to go to the domain or Cedar Park for some reason. I only really drive to, like, gyms or... Exactly.

So we're good. Ride a bike, right? We can sell our car, please. Would I not? What did you say about my car though? If I sell it, I still- You're about 2,500 under, but which one's a bigger number? 13,000 or 2,500? Yeah, I'd rather owe 2,500 and we can make that up. We can figure that out. To sell my car? That's like independence though. I don't have a bike. We can get a bike.

If it saves us $11,000, you're right. It is independence, and let's get you a car again. But if you actually can manage life without a car, this gets us to true independence much quicker. Right now, you're dependent on debt and pulling money from retirement. You don't have independence. How long would I have to go without a car? You're not down for this. You're not down for this. That's tough. We're talking major sacrifice here, but for major results.

Major results. Just spell it back to car math. I'm going to give you $400 for groceries because I know you probably need a little special extra with your crap. But meal prep, meal prep, meal prep, $400, totally fine. TP fund, also going to give $150 because just for extra for some supplements. If there's anything else you need to survive, get in the nails, get in the hair, spread it out. But $150 a month on average. Car insurance, which hopefully, again, we can cancel. But car insurance. I think it's $150. Okay.

Any co-pays that you have to do on a monthly basis? How much for your gyms? I know there's three. I have three gyms. Do we need three? No, I could probably go down to two. How much for the two then? A hundred. A hundred both together? Yeah, like total. Okay, let's do that. Let's do that. Subscriptions, no. But you have a pet, right? Just one dog? He doesn't live with me right now. He's in another state, but I do pay for his food and stuff. Does he have pet insurance? Yeah. Do you pay for that? Yes. How much?

I want to say it's like 50 bucks a month and then his farmer's dog stuff. I think we go back to Kibble, too. Just really good high quality, though, for full nutrient and teeth. Okay. Teeth health. I'm going to say 100 bucks for food. Okay. You're going to get pretty good stuff. Okay. I'll show you. We have a dog trainer influencer, like one of the biggest who subleases the space here. And the really good food that I also feed my dogs is in there. I'll show you. Okay. It's like what to do.

Uh, your debt payments again, get rid of this car all of a sudden. Oh, we're rolling dude. Just not in a car. We're on a bus. Nothing wrong with the bus. And it has a negative. Um, I think it's like a fear thing. I've never done it. You know what I mean? Like, okay. I mean, you're a big boy, so I'm a girl.

Oh, even better. A fitness one. Bodybuilder. You can punch someone. Yeah, but I just feel like sometimes people on the bus are like... Exactly. That's the stigma in this country. Austin's one of the safest cities in the country. You'll be okay. The homeless population's crazy. Compared to a lot of other major cities, it's actually not, though. Really? It's a thing. Maybe it's just like downtown area. Yeah, downtown, you know, especially near the Ark. Yeah. Yeah.

But also just because someone's homeless doesn't mean they're going to knife you. No, I've just had like bad experiences. Like they'll like throw stuff at me. Sure. We've all had the downtown experiences. Yes. I get it. Yes, yes, yes. Okay. So 46416, also bike. 46416 is your debt payment. But again, are we going to get rid of the car? I need to know. I could get rid of it. I need to know if you're going to get rid of it.

I'll get rid of it. There we go. Beautiful. Our debt payments, you know what? It goes down from $464 to $80. And I'm going to, for a bus, we're going to get a bike. This is going to be a one-time investment. We don't have to put that in your reoccurring budget. But let's put for public transportation, I think $50 should be fine. Okay. How much is a bus ride or a train ride? Specifically, train? One of my friends takes it every day. I can ask him. Bus? Bus?

I don't know. You can get monthly passes. I do know that. But actually, I'm going to turn this into $100 for occasional lifts for when you need that situation. Again, we're going to get you a car quick. But this gets you out of your debt situation and risk. Plus, it's over 10% interest. So let's add all this up. And I think we can get you to a good situation. Your rent, you need to downgrade. When's your lease up? June 2025. It might be worth trying to break it. You need to spend $1,000 on rent, max.

Getting yourself a studio. Yep. We've priced it out. Is that possible in Austin? It's a million times possible. We've priced it out. You'll be totally fine. $2,970. You have an extra $500 even with that crazy rent. $530. But even with $530, okay, first month you can pay off FNBO. Boom, you've eliminated a minimum of the payment. Then Southwest...

You know, it's going to be paid off in under six months a little. Well, let's just be conservative and say seven months, you're debt free. Seven months? What is seven months? Nothing. Seven months is nothing. Come on, world. Seven months is nothing. Okay. Okay. Okay. Seven months is not a long time. Boom, you're debt free. Oh, well, dad. I do owe dad. What do we want? I think if we have a conversation with dad, see if we can get a fully funded emergency fund and then pay him back. Okay. We just need to see what he's okay with.

Okay, so we need $2,890 times six. Your emergency fund needs to be $17,340. My emergency fund? Without your debt. That's six months of your living expenses because your rent is so high. It's not even including any business. But either way, at that point, that's what's going to take a long time to pay off in. I mean, that's going to not pay off, but that's going to take like 30 months to...

That's going to take two and a half years. But you could be totally debt-free except for dad and have a fully funded emergency fund in right around three years. But here's what we're going to need to do. I'm going to need to get that emergency fund a little quicker.

pay off the debt, all that stuff. That's reasonable. Seven months. That's reasonable. I need you to get an emergency fund a year after that. And how do we do that? I'm going to need without your expenses going up too dramatically. You're either getting a second job, something close to you that you can get too easily in coffee shop. Something doesn't matter. We know you love going to them, uh, cutting down your business expenses. Well, I mean, this is the budget I gave you. So it has to be that, um,

Yeah, second job or increasing your business revenue. Because I need you to get the emergency fund in one year after seven months of paying off the debt. You can make your debt pay off quicker if you, of course, go get that second job or bring in more clients now. And obviously the easier one is getting a second job. So I think that's what we're doing immediately. If you bring on more clients after that, I'm okay with getting rid of the second job. But you need to bring, because we're setting money aside for taxes again. In my budget, we're setting money aside for taxes.

That's why you have that $3,500. How much are you setting aside for taxes from now? I did the math wrong. You have $3,150 after setting aside 30% for taxes. But I don't think you need to set aside 30%. Let's call it 20%. So let's say that's just about accurate because you're not going to be in the 30% range anyway. Okay? So I need you to go bring in a minimum extra $500 so we can speed this up quicker. Extra $500 a month after taxes. Okay. Yeah. Yeah.

If we do that, if we do that, I think besides dad, besides dad, and this is just, you know, rounding. So, well, because I guess I had a question. Yeah, you can do that in a year and a half, dude. You can be out of this in a year and a half. And then dad after that. Okay. Which is great. I guess I'm wondering, like, because my monthly income is, like, it goes through fluctuations. Of course. Of course.

How do I plan for the future after that? Obviously, I do have to get rid of debt. Absolutely. And sometimes when it's a situation like that, sometimes we have the emergency fund, but then we also have another little savings account that helps offset the lower months, but then we refill it in the higher months so that you're living on a more stagnant basis. If we're assuming our average is about $3,500, there's a lot of other strategies we go over in the budgeting program for you to take as well there. But I mean, that's a good, just simple method to do it as well.

So, yeah, I think you can get out of this year and a half. Just go make a little bit more money, which isn't crazy to bring an extra $500 a month after taxes with the time I know you have. Okay, okay, yeah, and then you pay off your debt. That shouldn't take only more than just like four months after that. And then guess what? We save up $10,000. I think in two years you're getting a cash car. Two years from now, if you're doing this correctly, go make more than that. You can speed it up even quicker. You're not in a bad position if you sell your car. Well, we do have to get up that extra $2,500.

that you're mixed. So I think we're only extending this a couple months because of that though. So it's actually not that crazy. Let's be conservative and say two and a half years so you have a paid for car and no, you have a paid for cash car. And no debt. No debt and a fully funded emergency fund. No risk over your head meaning you can take more risks in your business. What's the budget for the car? You can get a $10,000 car in cash. Okay. In that time span, if you go bring an extra $5, $750, $10,000,

On a monthly basis. Okay. All said easier than done because we're doing this in an hour and a half. But again, that is just a brief way of doing it. It's a more simplified version. But those are the general steps you need to take. Okay? Okay. And we'll be connected along the way and you'll come on for a follow-up and we'll see how you're doing. And we'll, you know, I'll be like, okay, this is what we need to tweak. But go through all the education as well. Okay? But you guys can take advantage. Link in the description below. Okay.

I know the debt one, the new debt one on how to utilize that and pay off debt is on sale right now. Spending a budget zero out of 10, you overspent debt.

No collections. Not the worst debt. Barring from debt, we don't like that. So that is going to bring it down. But two out of 10. Emergency fund. There's technically money in that other account, but it's very fluctuating. So I can't count an emergency fund as high as I'd like. I'm going to give it a two out of 10 there. Retirement. We're draining from retirement. Luckily, you still do have some retirement, but now we're draining. We're getting lower and lower. Three out of 10. Real estate, zero out of 10. I think you could fix that within a decade if you wanted to easily.

Your hammer financial score is 1.5 out of 10. Make sure to join the post show. Maybe we will call the, who are you going to call your dad about the debt? Maybe we'll call the dad, but we'll definitely talk about more drama and bringing the producers to join that and check out the new debt class, which is at a large discount for the first month. Link in the description below. See y'all in the post show today on the financial audit post show. Are you going to ACL?

I was thinking about it. No, you're not going. You're not going to a music festival. You can't go to another music festival. You're not going. I don't have tickets. You're not going. But you can buy tickets. You're not going to go, right? You're not going to go, right? No. You wouldn't leave here and not go, right? Okay.

Right? What if my friend has an ice cream kit? No! Oh, for free. Maybe. But you're not going to spend money on drinks and food in there, right? No, I can't. Right? I won't drink or eat. Good, good, because you don't have money, right? Right. To watch the Financial Audit Post Show, click the Join button below.