401k Loan And Budgeting Is Ripping This Couple Apart | Financial Audit

my name is Tim Bushnell I'm 33 years old. I'm from Lynchburg Virginia and this is. financial audit what do you do for a. living out there in Virginia thanks for. coming down to Austin by the way my. pleasure right now I work for a large. tech company and I'm a manager of. several account managers and basically. what I do is I make sure my team is. providing the service we promise for. customers so they each have about a. million dollars of business rolling in. every month from local small businesses. and we help them Market on social media. wow okay that's pretty sick so what do.

you bring in a year uh my salary is 115. I have a 10 bonus but it's half of it's. based on my performance and half is. based on the company's performance so. that varies and then I have equity in. the company. they grant me 33 000 every year and it. vests over three years okay and so my. most recent big vest that hit in March. was a little over ten thousand dollars.

and every quarter it'll be about four. thousand dollars how much do you uh. currently have invested. um well the I just I take it out as soon. as we get it we take it out we use it. initially to get out of debt and then we. turn off we use it for other stuff fair. enough okay so 150 000 plus 10 is it. usually the 10 percent. no no it was it was uh seven and a half. percent this year. oh interesting yeah my half was good so. it's the company's half that wasn't good. which I guess I still play A Part.

I play a part in that because the. company doing well right now we won't. name what company but yeah no no um so I. think they're doing well they're holding. their margins they're growing year over. year yeah um when I started the company. was doing 700 million a quarter now. they're doing 1.1 billion a quarter and. that's that's since 2018. so they're. doing well but they're not holding their. margins so we we hit one goal and we. missed the other goal and so we got 50. of that that's why it's that's why it. was seven and a half percent not ten.

percent okay and this is what you're. doing for a living right now right this. is what I'm doing currently yes. what do you mean well. we had to lay off eight percent of our. Workforce and Company same company so. you're working for the company you're. laid off from yes because they they so I. I look I I don't know if I love the way. they did this but I can tell you how it. happened and you can let me know what. you think yeah they they told us in. February hey we have to lay off eight. percent. several people were impacted immediately.

but my team was in the middle of. migrating customers from an old Legacy. system to a new one and we had to do it. manually because engineering was going. to take two years and the company needed. to lay off people in February and so. without telling us. in December we started doing this in. January we found out the end of life. date for the product and in February we. found out that on March 1st they would. let us know who got laid off hence. why I wasn't sure when I first reached.

out to you about the show and then I. found out March 1st that I was getting. laid off but they asked me to hold on. until May 1st and the reason is you're. gone but please stay but it's a little. different for me it's a little different. because. um I'm really close with the other. managers at my level why don't they just. keep you yes I Rose my hand and said hey. if you guys have to get rid of one of us. at this level. why well so I have cousins who I've.

worked with before who I loved working. with one of them is the president of a. company that is about 50 million a year. and they had it's almost been nice yeah. I know right I don't know how much he. makes he won't tell me uh but he. when we found out and I'm I'm gonna get. a little emotional because this is. emotional sure but when we found out. that we were people were going to be. laid off I have four kids yeah and they. go to private school. um. and my wife doesn't work and while she.

could go get a job her cap is like 40K. um private school on 150 000 a year four. kids wow okay yeah it's not an expensive. private school it's like six thousand. dollars a year for the two kids that are. in there right now. um but. it's still money out of my pocket every. year. but I don't own I don't owe anything. else I have well we'll get into that but. I will say there's definitely a debt. I didn't it doesn't feel like a debt to. me but we'll get into that but I also.

when I call my cousin to get back to the. story he said hey we were just tossing. your name around for a director role in. our client success which is basically. the same thing I'm doing now and he's. like we'd love to have you. and he was like we could pay you 120. probably hey so I was like okay oh and. don't forget to subscribe so we're. really trying to get to 500 000. subscribers and every subscriber helps. thank you so much to everyone who has. subscribed so far so it doesn't replace. all of my income but it replaces part of.

it and then so I for me I'm a Christian. and so everything I do I ask Jesus about. you know what should I do and so a lot. of people think that's crazy but it's. worked really well for me and my wife. and so I asked him if if I should offer. to be laid off now I don't know I don't. know if it would have mattered honestly. it could be that when they looked at all. the managers they said Tim it would be. our best shot is to let go of 10 right. we have five great managers let's get.

rid of Tim. um and so. I don't know if it wouldn't matter but. but I did volunteer and they did ask me. to stay 60 days and only one other. person one of the senior directors is. saying 60 days everybody else is leaving. after 30 days yeah but it's everybody's. getting working notice because we're. still in the middle of moving everybody. over so yeah so how can they afford to. let them go I'm so confused like that. company in my mind. I I don't know so I it's hard for me to. put myself in a position of CEOs at that.

level running billion dollar custom uh. businesses on without because I don't. even know how to run my budget like my. wife and I get in fights all the time. because I'm like who knows if we're even. gonna have a United States of America in. a year you know who knows what our taxes. will be I mean you know but I'm I'm. being hyperbolic yeah. but it's it's still like imagine being a. CEO of this huge company that generates. a billion dollars a quarter but only. Nets 200 million and has 800 million in.

expenses every quarter yeah like imagine. if you had that 80 of your income is. just always going to go out no matter. what I guess it's not that different. from life right now it's just bigger. numbers you know but so I can't put. myself in their shoes and so it was it. was about 500 employees they gave. everybody three months admin leave which. means for 12 weeks you're still part of. the company you get all the benefits of. being part of the company my stock will. still vest and I'll still get paid well. what's weird to me is it just sounds. like through the the project that you're.

doing right now it's just they're. necessary yeah we're all necessary so we. can't lose anybody but but once we but. once we finish we'll have about I don't. know we'll have maybe 60 of our clients. that we had before we did this we're. going to lose like 40 of our clients and. so we won't need as many people so for. my business unit interesting interesting. okay well I can't speak yeah. so. oh severance. Severance yes so admin leave that will. equal out to 12 weeks so three months so.

it's about 30 000 and then I'll get. another. um 35 000 because they're giving me two. weeks for every year so seven years and. then I'll get a ten thousand dollar. retention bonus if you're sticking. around for and you have another job. lined up immediately yes. yes well not a job we have to move no. okay not a job well so that director. position is the reason I decided to lay. out like to go for it but I wasn't. qualified for the role so they. ultimately they ultimately were like.

you're not qualified. so. instead I'm gonna get my real estate. license I have a what. what are you talking about so well. because I I love real estate one I'm. incredibly passionate about real estate. okay the other reason is because my. cousin another one of my cousins I have. a lot of cousins yeah your last cousin. you're over though so well he didn't I. wasn't qualified I would not want to for. them to hire me walk in and be Tim. Bushnell who used to work I used to work. at this yeah because you thought you. were gonna do it yeah I thought I was.

gonna do it to get laid off that's true. but remember I I prayed about it and. that's why I did it I didn't do it. because I knew I had a job lined up and. Luke and then didn't say you know. volunteer to get laid off they were just. like come interview with us and even if. you don't get laid off we might want you. you know so they didn't they didn't. screw me over okay they are they're. awesome so your other cousin in real. estate yeah he's in real estate he's a. great he's an awesome team they do 20 or. 30 transactions a month and he said come. come work for me Tim I need somebody who. will do what I say the last two guys. that did that made 150 000 and the other.

one just made two hundred and three. thousand dollars so I said okay. thankfully I'm giving myself three. months to see if I can get something. under contract if I can a house under. contract in less than three months it's. a hard time yeah but it's a hard for. that eighty percent of real estate. agents that really aren't doing a good. job agreed yeah 20 that are making most. of the cells are doing fine his team. hasn't slowed down at all the only. agents that have slowed down are the. ones that don't get on the phones and. Prospect and find clients so you're. hopefully bringing in an income.

is the play yeah but I control it. once I have my real estate license. granted I'm not going to go. bring in 120k just because I show up. somewhere right but I'm tired of like I. was becoming complacent at this big tech. company. complacent there. I can't I have four kids you cut in at. the last place then well yeah I could I. could because my my natural ability of. running a team and like helping and all.

the knowledge I built over six years. meant that I could put in like four. hours of actual work and nobody would. bet an eye but the team was not growing. they weren't moving forward we were. losing customers because I wasn't. putting forth the effort so you should. have gone laid off probably now you know. why I was like man I'll volunteer okay. I'm wish washing a little bit on this. one I don't know so what's the overall. financial situation what are we looking. at today. well we have and this isn't on that. statement we have about twenty thousand. dollars in cash for our emergency fund.

it's interesting laid out about 10 000. of it is in Bitcoin and the other 10 000. is in high save yields I think it's not. an emergency you have ten thousand. dollars under an emergency fund. that's fair okay and I have ten thousand. dollars a Bitcoin that I can also use if. I need to but you should sell right now. and put in your emergency fund go on I. was literally talking to my wife about. that and I was like I don't know I don't. know I know. all right Caleb I'm gonna do it and if. Bitcoin goes to 50 000 tomorrow I'm.

gonna text you hey there's the balance. you can do in your overall Investment. Portfolio I'm not going to give any. investing advice but if I were to get. something like Bitcoin or something like. that I would want my risky assets to be. within the overall Marketplace less than. 25 and then individual things less than. five percent each. but half of what's an emergency fund I. will immediately say that's stupid risk. that is unnecessary for an emergency. fund do things like that after you have. an emergency fund that's fair I wonder. if and so that makes perfect sense to me.

my mentality and make and this now it. sounds stupid to me my mentality was. like it's harder to get the money out of. Bitcoin so this is the problem we keep. running into we had thirty six thousand. dollars in our emergency fund yeah. and. all of that money is gone where'd it go. it went to. emergencies what were the emergencies we. needed to remodel a bathroom it's not an. emergency right we needed to get new. tires. probably an emergency that was 36 000 no.

that was like 700 at Sam's Club but it. was it was one of those things where I. just like looked up and the only thing. that was left is the ten thousand. dollars that I put in Bitcoin where'd it. go you mentioned two things. the rest I don't know then there was it. an emergency fund it was a bull slush. fund. do you and your wife not agree on what. an emergency fund is. no we agree on what an emergency fund is. so the prob the problem there it's not. her fault my the problem is when I set.

up the emergency fund right and I put. the money there she'll come to me and. say hey can we do this and instead of. saying actually no we don't have any. money for that I go oh we have this. money over here in this. fun why. I think why are you like that I think. part of it is so for me if I think if I. go really deep in. and. I grew up with eight seven siblings my. dad's a pastor and while he's an amazing. man he doesn't make a lot of money.

and. so there was a lot of times where. growing up we really couldn't I mean I. remember and and I don't want to take. anything away from my parents they're. incredible they did an amazing job for. their kids. but there were times where my friends. would want to go to the movies and I. wouldn't have the money and I remember. being in college and. my I'm like doing everything I can to. get out of college debt free my friends. would want to go to Wendy's and I didn't. have a job and I didn't have any money. and one of my buddies said he'd buy me.

something I knew he didn't have a lot of. money so I ordered like the cheapest. burger like a junior bacon cheeseburger. and I was still hungry like it's the. funny it's the little things that hit. you so it's like when I have money I. spend it and I was reading um this book. called the millionaire mindset and talks. about a money blueprint and my money. blueprint is if I save I save to buy. something and most of the time I don't. save and so money on a sign just goes it. just happens to buy your retirement. save to buy a happy life in the future.

or just be an adult and actually do that. right. also works yeah uh you know a good way. to avoid those situations where they. didn't have money to do things because. you know either wasn't in the budget or. because they had a lot of debt a good. way to avoid debt is to have a properly. funded emergency fund so when. emergencies pop up you're able to use it. a bad way to have an emergency fund to. spend an MBS that you don't need and. then emergency pops up so then you have. to go into debt and then you don't have. money so that's a way to avoid the. situation that you were in is by.

properly having an emergency fund Yes. Yes actually I have to say thank you to. you because the reason we have even ten. thousand dollars in our emergency fund. currently is because you kept saying not. having an emergency fund is an emergency. and I was just sitting there with I. think a thousand dollars at the time I. was like this is an emergency yeah and. my wife and I got on the same page and. we just we win those big bonuses. investing started coming in we just. plugged them immediately into the. emergency fund imagine a big big tech.

company it was just and they decided. like hey Elaine you're off right no. don't get all these extra yeah is yes. now you're now you're that's my worst. nightmare yeah and has been for the last. three years yeah and I love real estate. as well and cool get into it but since. it is a little more up down up down and. does rely on your knowledge and stuff. like that we don't know until we're in. there. when you're starting a business like. that and you're kind of like your own. business it makes sense to have a more.

fluffy emergency fund to counteract that. risk I agree so that's my thought get. out of the Bitcoin yesterday put it in. the emergency fund I don't even know. twenty thousand dollars is enough yet. it's not but but I have money coming in. from the company still for yes for it's. good when will that hit. when will that starts yeah uh like a. week after July 24th so a week after the. admin stops but that pays on a two. bi-weekly cycle so the admin leave will. stop but they'll still have to pay me.

the last two weeks okay okay because. like I'm working for the company and. then the money will come in and they. also are covering Cobra for two months. after that and then what is this 401K. thing. I took out a 401k loan yeah so so. there's a story there so I took out a. 401k loan because I needed. I needed ten thousand more dollars why. do you need 10 000 more dollars we we. had we had a real emergency and we. didn't have an emergency fund. yeah exactly we had we had had we had. like fifteen thousand dollars and we.

needed more than that and so I had to I. pulled it was the emergency uh I I can't. say it okay yeah how expensive was it it. was it was five thousand dollars. uh I'm sorry it was fifteen thousand. dollars and five thousand dollars was. not refundable and ten thousand dollars. was refundable in a year if the. emergency didn't it was a legal. situation so I was retaining a lawyer. yeah okay okay. not having an emergency fund is an. emergency.

as you now see so get out of the Bitcoin. the moment you walk out of this door. doesn't make sense fantastic yeah. what else do you have saved up anywhere. what else do you have saved up anywhere. so then we have my my wife and I each. have about three thousand dollars in our. account. that's their checking accounts check in. current so it yields about four percent. it's getting four percent and then I. have fifty five hundred dollars in. E-Trade getting uh it's in Morgan. Stanley High premium savings account. getting three and a half percent. okay yeah the Bitcoin will get sold and.

they'll go into a van card savings. account I have set up that does 4.1 okay. that's it and then what's the retirement. at your company what is this 401K that. you've taken leverage against yeah so if. the loan is not paid back it's 29 000. with the loans thirty nine thousand it's. a six percent match so one percent full. half a percent after that up to six. percent and I wasn't investing in it at. all until. two years ago okay yeah well we didn't.

we didn't have the money we were I. wasn't I was making I wasn't making 115. until 2022. okay so what's the total. portfolio value though uh with the loan. 39 000. because I'm paying the loan back to. myself yeah without a 29 000. what's the interest on it. the loan is four percent duration oh I. don't know that off the top of my head. three years less than three years more. than three years it's more than three. years I think it's five years because I. it was it was thirteen thousand and it's.

down to ten thousand and that was a year. ago. mortgage. I assume you have a mortgage. rent yeah I own my house so all right. this is a fun story so in 2018 we wanted. to get a bigger house and uh I wanted to. get a zero down loan because it was an. urban area and it was it was Liberty. Hills appreciating 11 a year. we're not good at saving money so the. only way I can get a house for my wife. who owned a house was zero down loans.

and how you look is how I felt about it. but I was like I can get this house for. my family and I know Liberty Hill is. going up. I was right by the way we bought that. house for 275 we sold it for 565. but my credit. got decimated because I forgot to pay a. Kohl's bill. for six it's 35 for six months. and by the time I realized that we were. 30 days from closing and my credit score. was 5 39.

no one would loan me money so I called. my grandpa and he said I can get you. seventy five thousand dollars but you're. probably gonna have to find a banker who. will get you the other. amount that you need what was the other. amount that you needed you're going to a. different house style at that point no. same house it was with the builder so we. had already agreed on it we put a. deposit on it and there's some there. they were giving us a lot of like cash. at closing. so I just needed to come up with 20 down. and then 200 so 200 000 is what I need. to come up with so I call the friend of.

mine who's a VP at actually South Star. Bank if you're in Texas South Star Bank. awesome local bank I called him and he. said we have a portfolio alone he's like. you're gonna get killed on the interest. and it's a it's a it's going to go up in. five years but if you refinance in a. year or so then you'll be good and he. said but we can do this with you your. credit score doesn't really matter you. just need 20 now. so we did it. a year later I went to refinance with. them and all the fees and everything. didn't make sense so I called my grandpa.

I said hey Grandpa do you want to just. be our full home mortgage and he said. yeah actually that would be great. because he was trying to move more and. more money into their trust okay and. away from him because they were getting. older. so in about a year ago actually a year. ago. yesterday my Grandpa died and a couple. months after that my grandma died. and so my appearance inherited our loans. several my siblings had mortgages for my. grandpa and my Dad decided to gift us.

half the loan so he waived half of it. and then the other half we can pay back. in the next 10 years interest fee free. and and just yesterday he and I were. talking he said why don't you since. you're going into real estate why don't. you take the money you would pay us back. and use it to flip some houses with your. brother-in-law who's a contractor all. right. so that it's it's a situation where it's. like I have a mortgage but my parents. own my mortgage and that relationship is. good well what do you pay them on a. monthly basis it's 1400 a month if I if. I was paying them we don't pay them.

right now because because they're. waiting for probate to finish and so. they don't want to be taking in any. money until so where's all your money. going what are you budgeting to what's. up we're not budgeting like that's the. problem is Lee and I haven't said that. we have to the problem as I see it is we. have. things that happen right kids have. gymnastics it's late at night I'm not. cooking food so there's nothing to come. home to to eat and we have to put the. kids to bed so she takes them out to eat. to solve that problem. or I am out with the kids and I don't.

see them because I'm working all the. time so I take them out to eat I'm okay. with spoils here and there but this. isn't that's not a good thing especially. if she doesn't work I understand taking. the gymnastics but they're probably at. school the rest of the time right well. ours is a hybrid school so they go to. school two days a week and then she. homeschools them the rest of time. so she I mean it's she my wife does a. lot of work yeah actually being a mom is. a lot of work no I know but uh you know. meal prep like if we're just struggling. with money in general and saving money.

then we know where a lot of it's going. and if it's going out to eat a lot. yeah meal prep our budget we we break. the budget we break the most we use um. rocket money. yeah we like it I like it too my wife. and I I just aren't on the same page and. so we the the issue we're running into. right now is sitting down and looking at. the budget together why what happens. Tommy so one of the things that we go. through is so I don't want to speak for. my wife but I hope Leah you're okay with. me sharing this but when she was growing. up there was a lot of we don't have the.

money but her dad was an architect and. they did have the money. and so they just kept saying we don't. have the money but then she would watch. her parents spend money on themselves. and and they you know she couldn't have. violin lessons she couldn't do. gymnastics lessons she couldn't have. horseback riding lessons but then her. parents would you know renovate the. house and have these beautiful rose. bushes and spend money on her other. siblings and so she doesn't want to she. wants to all the kids well it sounds. like they were greedy but that does not. mean that Leah has to spend all the.

money and not be set up for the future. there is a middle ground between that I. do believe yeah and she believes that. too we've had several discussions but it. made it for the first nine years of our. marriage we've been married for 10 years. it made it really hard for us to talk. about therapy. no Corner couples therapy every couple. should be in couples therapy I agree. Leah. all right we can do it later no yes. you're right that was the attack in here. yeah that wasn't meant to be an intact.

when the camera wasn't cut out I'm like. dude what are you doing. come on but couples there my thing so. I'm I'm. my money mindset well. I every time somebody says therapy I'm. like yes except for that's money. and it's like it's like I just can't I. have such a hard time probably like no. my mental health and relationship uh uh. just. relationship strength is worth money. it's like the gym yeah I will put that.

in anyone's budget even if they're. trying to get out of you know a bad debt. it's it's worth it it's definitely worth. it especially with these Chick-fil-As. and gatsbys and Zaxby's and Chick-fil-A. and after pay so we're financing. something and we're you know peacock and. apple subscriptions Apple subscriptions. and. crafty girls have to pay after pay while. this after pay and solo wave and. graceful graceful just crap sheet sheets. this is going Lynchburg Lanes after pay. crap crap crap going on forever and yeah.

the aquatics that you mentioned and crap. crap crap crap crap crap crap I'm not. gonna name it off because it'll just go. on forever Amazon unless Amazon and uh. Apple subscriptions oh my goodness it. doesn't end. Taco Bell I just it just keeps going. some ritual thing and. what are we doing here Chick-fil-A oh my. gosh this is it won't stop dude it won't. stop and this is your wife's uh thank. you for giving us permission to go. through this and.

this is crafted this is endless spending. on crap endless spending on crap. yeah so clearly a conversation needs to. be had because this just looks like a. reckless spending to me. yeah. so it's hard for me to say it's Reckless. well it is reckless spending the logic. is there the logic is sound to Caleb the. logic sound but it's hard for me to put. myself in my wife's shoes because I I. when I'm with the kids it's really hard. for me not to want to just like let's.

get out of the house and let's go do. something else I get that but this is. where together we put together what our. budget looks like what we're allowed to. allocate towards fun and then she can do. that stuff as long as it's allocated. towards the fun and then you can do. stuff and you can do stuff together with. the kids and it's allocated towards the. fun. but if we're close to going over that. limit we stopped for that month yeah and. to be fair it was. worse. uh it's actually still going. what is this. so believe it or not that it was worse.

February we were we were in our budget. we just had a lot she has a it's a big. budget the money that goes into her. account is meant to be spent the money. that goes into my account can be saved. for their stuff and then we have another. bank account for bills and then I have. money I pull money out of my paycheck to. save for savings. continue on the credit card is this is. more just endless crap honestly. [Music]. great that's our bills.

how many. crappy bills do we have here what's Our. Father's Farm. that's our milk share. see you don't need that you don't need. Zaxby's you don't need McDonald's you. don't need Seafood you don't need food. wait there's McDonald's and food yes. Chick-fil-A and Dunkin Donuts I don't. know what kind of Bill that is. some is that the Navy Federal one. oh this is your Visa check card. yeah that's Navy yeah that that account.

is just meant to be reoccurring bills. well it's not. that should be like you know internet. coming in eyes. is me yeah that's a VPN. there's the the milk thing still. definitely don't need that I'm telling. you dude more Apple bills I mean you. haven't had the milk uh-huh I said you. haven't had the milk. it's it's for our kids allergies. why.

but it's whole organic milk and so it's. better for the kids we add the milk is. not a bit we're gonna we found a farmer. who will do it for a third of the price. so what's wrong with the grocery store. the grocery store milk yeah it's not as. good for you. stop drinking milk we're drinking milk. of another species that's. weird yeah but I mean I have kids that. need milk they need the protein. protein give them a steak I'll take kid. advice from you when you have kids yeah. I actually really don't care about this. part but.

Odd as a concept of you sit back and. think about it that we drink milk of. another species yeah it is really weird. other animals don't do that. yeah we do a lot of weird things though. we do. um but also as a budgetary advice yeah. that is stupid when you're trying to do. other things it doesn't make sense. because. even if it's slightly better for you. yeah right now and then Amazon Apple. subscriptions and the gymnastics and. stuff like that so yeah I mean the. gymnastics we don't get rid of I mean my.

nine-year-old is a level. it's level five in gymnastics right now. and. this is possible I mean he's very good I. mean imagine a nine-year-old who's got a. compete at Nationals at this level. good job nine-year-old twenty eight. thousand dollars in the 401K so is this. is this retirement is there nothing else. there is nothing else see for a family. of four 33 with a wife you're very. behind right and this is where I'm. terrified that you're spending more to. get this extra fancy milk you're. spending more to do all this and you're.

going out all these Chick-fil-As and all. this crap when you should probably be at. least like a hundred fifty two hundred. thousand dollars. well I yeah I mean I'm way behind so. when I was in college I went through. Dave Ramsey's Financial Peace University. and I graduated from college with no. debt. um I paid off the only card debt I had. well I shouldn't say I grad I graduated. no college that I had two thousand. dollars that I owned my own my grandpa. for a car that I bought from that he had. financed for me and when my wife and I. got married we decided I would get a.

brand new car to help build credit. everybody says not to buy new cars and I. learned that lesson the hard way bought. it for 18 000 sold it back to them less. than a year later for. 11 500. yep. uh but in 2016 we paid all of our debt. off we paid off both of our cars and all. of our credit cards it was it was like. over thirty thousand dollars total debt. and then we got right back into that and. in the beginning of 2020 I made a video.

that talked about how we were forty. seven thousand dollars in Consumer Debt. geez and it November of 2022 we paid it. all off. multiple times now yeah. someone who went through financial peace. Dave cover your ears and I know some of. the personalities on the show watch this. show. then you take out leverage on your 401k. I'm glad that's four percent but I know. they would be vomiting at that. yeah well it's and that was the.

realization for me it's like I don't. have the money to pay for this emergency. like the time that I finally really need. it I don't have it. and so at that point. um. you know I would like to say at that. point I changed completely but it was. recent it was recently over the last. several months my wife and I. are really focused on that's why that's. the only reason she agreed to me coming. down here to do this she's like I won't. go on that show but I know that this is. afraid to get yelled at.

you're not even yelling at you. well I'm not I mean I don't know if my. wife's afraid of it yelled at but this. is a very sensitive subject for her no. sure that makes sense couples therapy. everyone should just do it everyone. should do every kind of therapy. therapy's great therapy is the best. thing do it seriously okay. Okay so. what hits your account on a monthly. basis on a monthly basis yeah expenses. are Income no income income so after. taxes are gross after taxes after. contributions after Healthcare after.

everything yeah so 550 comes to my. account my uh no A Thousand Eleven. Hundred on all accounts oh what is the. money that comes in it's. six thousand dollars okay now that's. gonna last for another three months. right and then it should hopefully not. dip too much with real estate real. estate's gonna take some time I bet. though yeah. yeah it'll take time nervous for that. situation because she's not bringing. anything we don't we barely have yeah I. think twenty thousand dollars is. actually an okay emergency fund for you.

guys because of the interesting mortgage. situation for the six thousand dollars. let's just for the next month start you. use rocket money right yep does she yeah. we're both on it together the same one. yeah same one. what's the issue I'm still. the issue is I I agreeing on the. percentages no it's me sitting down and. saying all right let's make the budget. together it's doing it together we I sat. down and I made the budget and I was. like here's your budget but my budget. was everything that comes into our. account goes out of our account so.

there's problem number one I'm budgeting. to spend all our money yeah so she's. like okay I'm in budget but we're. spending all the money. so I'm not good we're wrong yes why. didn't you adjust. I didn't adjust because of this thing. called procrastination. yeah I feel incredibly embarrassed. good yeah. three thousand dollars. we're just we're gonna stretch this out. in terms of.

where things should be going as a. general concept three thousand dollars. will go to. needs. half of that is the mortgage when that. starts back up. right three thousand dollars a month. right for needs for needs yeah the. mortgage is 1400 yeah so be less so now. you have an extra fifteen hundred. dollars in that fifteen hundred dollars. you can put a sliver of that towards. groceries let's deliver that towards. we'll consider the. um.

now we're going to put the gymnastics in. wants but some of these other things you. know like the internet the school. internet and stuff like that you know. fight on a monthly basis see what it is. each of those gets a sliver into the. 1500 but you cannot go over that extra. sixteen hundred because only three. thousand dollars can goes to our needs. you have to start looking at what gets. cut at that point. if things are going over okay. okay what well I have to have this exact. same conversation with my wife and so. what are those show her the video well.

okay. I mean this is the most basic budgeting. rule so if you guys can't follow this. then we're just doomed oh that'd be very. clear yeah that's. fair and scary. okay. then. we get the lovely little. 1800. a month to go to fun gymnastic it's a. sliver of the 1800. Chick-fil-A gets its. sliver you know the aquatics whatever.

else gets its sliver but again if all. those things that you really want to do. start going above 1800 we are cutting. something. then this is the critical part. this is the critical part. 1200. minimum on a monthly basis this is the. needs most important then this then. wants. goes to twelve hundred dollars investing. what it's 20 of your income yeah it's.

basically nothing. such a small percentage compared to. everything else I I had this weird we. give away so I give to my church 800 a. month and I give uh to missions. 109 170 a month you can give stuff away. so I give about a thousand dollars a. month imagine how much more you can give. away and how much you can give if you. yourself are actually on a good footing. right but who will give if they've never. given before like you have to build.

these habits if I don't have a habit. that's fine but right now we're in a. mess. so prioritize making sure that you're. safe that you're able to retire you and. your wife together right now no you're. not you're dying on the Walmart floor. so. if you're in that situation you won't be. able to give for the rest of your life. because you can't even give to yourself. and if you're gonna prioritize giving. then cut back on your wants again. investing is above wants. okay so if you need to continue that's.

you're honestly your giving is a want. you want to do that you do not need to. do that. we should all want to do that I also. love giving gift giving is actually. personally a love language of mine but. you do not need to you need to be able. to retire. because if you and your wife do not save. up enough to retire you are being. selfish on behalf of your kids who will. then have to take care of you if you. were not responsible and you had the. money to do so and you do have the money. to do so yes. if I invest I'll probably invest in real.

estate real estate's good I like real. estate I will not give an investing. advice but what I personally do is. though I like to get into I'm looking. for a rental property right now. balance it out with the stock market as. well don't have everything in one well I. would not have everything in one asset. class because that's too risky it's fair. that's fair yeah sure I don't know if. you guys listen to Bigger Pockets bigger. pocket this is great yeah it's great and. so I read a couple of Brandon Turner's. books and. I was looking at how he stacked.

multi-units and I thought man that would. be. incredible just a bill and I don't know. if you I mean I'm sure you've read Rich. that Poor Dad. hate that book you hate that book. understood Poor Dad says four things. across like 10 chapters and then they. say the same thing over and over again. it should have been a one chapter book. where they literally just said what it. was in five sentences instead of. repeating the same story over and over. again in a couple different variations. that's almost every book exactly and. that's why I hate that crap make a good.

book if you're gonna make a book or just. give us a pamphlet my goodness but do. you have a book that you thought is done. well I actually like the bigger podcast. stuff because they go into. um his Brian Turner's book on the Burr. method was one of the first books of. real estate that I read and he just goes. into detail every chapter is about a new. thing instead of the same the same thing. over and over again hey did you know. that if my dad who spent less money on.

fun and invested more money ended up. being richer than the dad who spent. everything on fun did you know that okay. let me say that for another 10 chapters. is what Rich Dad Poor Dad was with a few. other examples in there that is fair but. I don't think people go that I don't. think many people can skip Rich Dad Poor. Dad because the concept I should start. with it because we all start from a. place of stupidity but still I did that. book. I hate the praise for that book because. I think in so many people I don't know.

for me it's like that's the book that. made me realize I wanted to be in a. position where I could invest sure that. makes sense that makes sense if it was. the wake-up call I think if you're. already on the track and then you read. that book it's like whatever yeah you. won't read it yeah right you're right. I'm getting nothing okay either way uh. you start with 28 000 hours 32 until. you're 65 if you put the thousand two. hundred dollars a month in the S P 500. not investing advice that's just an. example at the average of the 10 return. that it gets you would have 4.2 million.

dollars but take into account inflation. you'd probably have anywhere from 1.5. million in today's money to uh 1.9 in. today's money so that's great now of. course you can do 50 50. you can do. where uh you're doing half of it into. real estate half into investing either. way that's not the main concern here. what's concerning is you and your wife. prioritize. um. uh wants over needs giving over. investing all these things you're just.

doing it backwards I want if you imagine. if you had that in your retirement dude. you could lift up organizations that you. wanted to that's incredible but you. don't get that way if you're not secure. and you're about to get into a pretty. risky field right now something you. haven't done when you have ten thousand. dollars sitting in Bitcoin ten thousand. dollars in a high yield then five. thousand dollars in another high yield. but still. you should probably take all that out. put it in one solidated high yield have. 25 000 to at least give you that little.

extra comfort zone. while you're getting into real estate. that's what I'm terrified of you and. your budget you and your wife need to. get on a budget where you follow 50 30. 20. that's usually the 53 or 20 I give. to people who are just like getting. started because it's a basic budgeting. tool but even when I started laying out. with 50 30 20 was you started freaking. out. I can only spend three thousand dollars. on needs and I have to invest 20 of my. income. like come on if we're not even starting.

there Rich at Poor Dad then. what are we doing you know have to be. too mean no it's [ __ ] come on I don't. think you're being mean this is. you know. I do I don't I started freaking out. because I don't know where my money's. going so to see you know. six thousand dollars come out on a good. month and money I've saved gets spent on. other months to cover things so you know. we had a month last year where we bought.

our car that was like a seventy thousand. dollar a month because we bought a sixty. thousand dollar car. it's like. it's a lot to see that is it's a lot of. money so when you say 3 000 I'm like. how how do I do that and I mean the only. ways my wife and I have to be on the. same page. a couple therapy please and you bring up. the topic of budgeting and money and the. different situations you went through in. her childhood versus your situation and. where you guys can come together if you. come in knowing that's one of your main. issues the family therapist will help. and that is just a good thing is this a.

good place for a healthy conversation. that would be really awesome my wife and. I are starting to have more and more. conversations like that I mean I have. good years ago she wouldn't have even. told me about this and so for her to. open up like some it's been amazing for. me to get to know my wife you know it's. funny you've been married for 10 years. and you start to really get to know. someone you're like wow this is it's. exciting to see underneath the skin and. I'm over here with hen super Premium. Plus because I can't even get a date. [Music]. so I think in general you there is so.

much potential here it's just buckling. down and just more essentially just. saying hey we're gonna act like an adult. if you can do that I think you're gonna. win if not I think we're just gonna be. treading water. until we're in our 60s and 70s because. that's what's been happening right now. is they're treading yeah well and right. now I mean that was one percent going to. my 401k and then three percent and then. when I started making over 100k I. started well once we paid off all of our. debt at the end of 2021. and the fact.

that you don't even have a Roth right in. your 30s yeah like it is Roth oh Roth is. 401K yeah okay will you roll that over. then okay yeah I'm gonna do a. self-directed cool but you didn't have a. Roth IRA on top of this I mean and I. mean an Ira. Ira in general yeah it would be great if. you had a Roth base but yeah. wait is Roth IRA different than a 401k. based Roth IRA. this isn't a night right it's a 401k I. raise the difference the 401ks so you. can have a rothface 401k and then you. can have uh wait so I could be investing.

even more for dude you're investing. nothing so I know like in general you. can invest more but yes it's to your. question that I know you're actually. asking yes okay that whole time you. could have been maxing on the Roth. because I got I was ready to go in 15. and I was like but that's like I'm not. gonna get the tax deductions if I go in. more and I won't be able to maximize I. just I think I should have got a. financial you could have been yes yeah. financial advisors are worth the money. if you you know you're coming from a. place of not knowing much which is okay. we'll come from a place of ignorance. until we learn well I didn't know I was.

ignorant well that's what everybody's. interests yeah exactly uh so yep uh 6500. that's the current yearly Max and you're. below the income threshold to get there. at least for now hopefully you start. making that monies then you can backdoor. anyway or just traditional to lower your. taxable income but either way. future things right now is just getting. on the same page so right any final. thoughts. I was not expecting that budget. but. says he watches my show I I was.

expecting I wasn't expecting it I was. like oh I'm not doing it I watch your. show so I see the people who are in. mountains of credit card debt and making. no money and I was like ah but. man I needed that so thank you for Tim. his financial situation isn't completely. dire like we see on the show but there. are a lot of things that are very. worrying it's pretty much just held. steady for years now you know retirement. not growing very much at all and he and. his wife are now very behind the house.

Situation's great getting a little. nervous what he's talking about getting. into real estate and he just needs to. start actually prioritizing adult things. instead of wants so for right now Hammer. Financial score. three and a half out of ten make sure to. check out all the resources in the. description below don't forget to follow. my Instagram and Twitter thanks.