$64,000 In STUPID Car DEBT At 20 | Financial Audit
My name is Carlos. I'm 20 years old and. I'm based out of Georgetown, Texas. And. this is Financial Audit. All right. 20. So that's the youngest. we've had in a bit. Yeah. Yeah. What do you do for a living or. college or what? I currently work as a security guard for. Austin FC's Q2 Stadium. A security guard. I am. I'm actually a security site. security guard. And then on game days, I. am a event supervisor.
Hold out your arm. You're a security guard. Oh, you're going to get a kick out of. that. Who are you going to stop? Um, well, we have police there on event. day. So, then why do we need security? No, I'm. kidding. The stadium's under 24/7 security. Oh, okay. Gotcha. Yeah. Okay. Do you enjoy that? I love Austin. Yeah. Our um It's actually one of my. like out of all the jobs I've had, it's. my favorite job. Been with the company. for two years. Oh wow. So since you were. 18. Yes. So.
when I was in high school um I actually. changed schools to study law enforcement. and. in my fourth year of law enforcement at. the school that I went to they paid for. my security license. So from 18 I had that job and then 3. months in I was promoted to a supervisor. and then I've worked as a supervisor for. um coming up on two years in April. What do you make doing that? Um, right. It started out as 13 an hour and now I'm. making 16. Very cool. How many hours a week do you. Sorry. Go ahead. And then on and on on event days it's.
anywhere from um 17 to 20. Oh, cool. What do you bring in a month. on average after taxes? So, I also do Door Dash and I do um a. little bit of work for my mom's. business. My mom owns a. Well, let's split it up. What do you. bring in on average from. Just from my job? I bring in about 2,000. post taxes. Okay. Yeah. Post taxes. not. terrible, but also not a crazy amount, but for just one of three, you know.
Well, that's the very minimum. I do a. lot of overtime. So, with overtime, it's. about 2,700. Gotcha. Okay. And Door Dash? Um, about a,000. Okay. Now, a little bit less probably. With your tax bracket, probably don't have to pay too much in. general, but you are saving up a little. on the side, right, from that? I don't. do my taxes. It's taken care of. What do you mean? My mom does my taxes. But do you set anything aside from the. Door Dash? No, because she pays them all with her.
accountant. She pays with her money. Yeah. If you owe anything? Well, I don't think you would, honestly. But just in case. It's um it's it's a custodial account. that my mom manages for me, and she pays. my taxes through there. She's been. paying my taxes out of my custodial for. years. All right. Well, at some point, you'll. want to. Yeah. I mean, I mean, this she she did. say that this is this is the year where. I'm going to have to learn how to do. taxes. So, it's not hard though, like a program. online. But either way, uh, and then. what do you do working for your mom or.
what do you make working for your mom? Oh, that's that's like $50. a month. Yeah. Okay. So, we're not even going to count. that. Okay. Well, never mind. So, 3,000 bucks. a month. 3,000. A little lower than Door Dash. Sometimes, sometimes a little lower, but right around 3,000 if we're a little. lower. A little higher. So, that's not a. ton for an expensive area, but what does. your financial situation look like from. your perspective right now? I think it's all right. Um, I definitely. have the mo probably the most auto debt.
that anyone has had on this show. Really? Yeah. But first, I want to give a quick word. to our sponsor. So, I'm going to talk. about the specific situations that make. the most sense for this specific. sponsor. Typically in most episodes, likely the episode that this is in, we. talk about the snowball method being the. best way to get out of debt for a lot of. these people. And these people are in. the situations where they have low. credit card balances across multiple. different debts. And it makes sense with. those minimum monthly payments to pay. off the smallest of the largest. But in.
certain situations we've had on the. show, some people have massive credit. card balances on one card with insane. interest rates or crazy private student. loans with insane interest rates. In. those situations, it makes sense to take. those interest rates, refinance them or. consolidate them into something with a. lower interest rate. Also, a few times. we've talked about people with car loans. where it makes no sense to pay those. payments until it's paid off. So, they. need to sell it and borrow the. difference so they can get rid of that. car debt. And where do they borrow that.
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sponsoring today's episode. But as far. as that, that's a big hurdle to come over. So, okay, we'll see. As far as um everything else, my cost of. living is very low. I live with my dad, so. Oh, okay. So, no rent. No rent. And um fairly fairly low cost. of living. Yeah. Okay. Well, what what are your debts? You have the auto debt. You anything. else? I have the auto debt. I have um a credit. card. And I have another credit card now. recently. Um, are the debts the credit cards or do you.
pay them off every month? Um, right now two of them have balances. on them. Um, my I just I just put the I just put. a balance on one of them. My dog. unfortunately got attacked by my other. dog and he had an emergency vet visit. and I didn't want the vet visit to wipe. out everything that I had in my. checking. So, I gave my sister my credit. card. Um, you don't have pet insurance? No, it was so worth it. It wasn't as much as I thought it would. be. It was I thought it was going to be. like 2,000 but it wound up only being. like 400.
Oh, okay. Yeah. Yeah. Okay. I was looking at your checking account. though. What is your checking account. balance right now? 2,700. Oh, sweet. Good stuff. And then I got 1,000 in savings. Okay. I mean, you know, 20 I feel like, you know, you're just starting kind of. I don't know. That's a 18 21 kind of you. know, getting started range. So, you're. in that range. I think 20,000 in. checking account. I think a lot of. people your age would be happy with. that. Well, actually, when I reached out. to you the first time, um, cuz I mean, it's taken a while to do this, but the.
first time I was living pretty much. paycheck to paycheck, $500 in my bank. account each week, and then. So, what's had you overcome that and. just start doing better? Um, besides watching this show? Well, one, this show was a huge. motivator. And then two, um, for. Christmas, uh, my relationship with my. girlfriend is fairly new and she got me. something for Christmas and I couldn't. afford to get her anything. So, that. kind of reignited that flame and I was. like, "All right, I I really need to get. this stuff under control.". Okay. Um, if you want to be motivated, be motivated to hit that subscribe.
button cuz I love you and thanks. Well, good. But even so, if you have credit. card debt that you should pay off and. you have apparently the highest car debt. in on the show, which I don't know what. it is cuz you didn't send me a statement. for any of that, so we'll just have to. see at the end. Why are we doing an online traffic. thing? Why are we doing Chick-fil-A? Why. are we doing Peter's? You brought. Peter's. Hold it up. Look, this dude who. has credit card debt and stuff literally. brought food here and like it smells.
greasy and fatty and that's what I like. and I'm trying to lose weight. So, that's rude for that reason, but also. like why are you doing and Jason's Deli. and Jack in the Box Amazon Microsoft. subscription, Apple subscription, and. the Home Depot? Home Depot. I mean, you. live at home and McDonald's and Kingson. Wizard something. Oh, wait. That was a Wizard 101. subscription. I canceled that. Good. Papa John's Chick-fil-A Apple. thing. Schlotsky's uh Isaiah.
That was for um Twitch when I was doing. Twitch streaming on Twitch. I was paying. for something that was going to make it. for better. Nah, McDonald's. Panda Express, McDonald's, Geek Squad, McDonald's. I mean, and then. yeah, that's from your checking account. So, why is all the money Why is Cuz look. at this. I mean, that's the vast. majority are highlighted. Why is all that money going to crap when. you know you have debt?
Because [clears throat] a lot of the. debt is zero interest. So, my. all the car debt is zero interest. Well, my car debt is is not zero. interest. And if it's apparently the biggest I've. had on the show, then why are you not. paying that off? Um because I have a plan for the car. debt. And that plan includes Chick-fil-A. and Peter's every day. Yes. Well, I'll hear your plan, then I'll. probably find your plan. Just usually how it goes. But. so I actually have two cars. Um one is.
fully paid off and the other one isn't. Um but those statements are also very. very um old. Like they're a couple. months old. Um, and like I said, when I. reached out to you when I sent those. statements, I was I had zero dollars in. my bank account and now I have 2,000. 3,000. Yes, that is good. No, we can celebrate. the good things. We can celebrate the. good things. That That is good. But as far as my Best Buy credit card, so. yeah, that's a credit card I was just. about to pull up. Whenever um I started um I want Okay, so.
I worked as um a security guard for a. very long time. Um, and then when the. soccer season ended for Austin FC, I was. kind of out of work and I did I worked. as a manager for PetSmart for 6 months. and I had about $15,000 saved up um in. cash [clears throat]. and streaming and you doing Twitch is. something I've always wanted to do, but. school um I haven't ever been a very. good student. School has always gotten. in the way of that. School sucks. Yeah. And with $15,000.
saved up, I was like, "This is my chance. to finally, you know, see how far I can. go with this." And I put everything I. had into streaming. Um, not just my. money, but also my time. The 15K. Yeah, pretty much. Whoa. When? Wait, when was this? Um, a little over a year ago. How'd that go? I made like $4,000, but it wasn't like. enough to supplement my income. Um, yeah. I mean, usually it starts slow. Plus, getting discovered on that. platform is next to impossible,
right? And I mean, I will say I haven't. I haven't been successful at a lot of. things I've done, but it hasn't been. without effort. Like, I put 300 hours. into streaming every single day. Um, or. every single month. 300 hours, 10 hours. live. And then when I wasn't streaming, I was learning how to become a better. entertainer, learn how to fill that dead. air, learn how to engage with audience, be uh get better at um creating videos. and all that stuff. How many subscribers did you get? I was. at like 1.3,000 2,000 whenever I. finished. Whenever.
How'd you finish? 2,000 is a great. starting point for subscribers. Paid. subscribers. Oh, not paid subscribers. Sorry. Sorry. I was at like I was at like 500. still. That's a great spot to even just. start. That's the trend starting, right? But I I wasn't supplementing my. income and I was spending a lot more and. I also had a car payment at that point. So, I couldn't afford to continue. Yes. Well, that is true. That is true. I. mean, but it doesn't have to be all or. nothing, right? But I I'm curious. I mean, we'll. talk about this more, but I might have.
actually encouraged you to continue. depending on the situation. We need to. get a full picture before I would even. say something like that. But, do you. stream at all now? I want to. um I did a little bit. And I mean, if. you look at my last paycheck or my like. most recent transactions, there's like. $63 that came in from Twitch. But. how many subscribers do you have now? 50. to what? Like 10. Because you stopped. Yeah, because I mean it's been over a. year. It's been almost a year since I've. tried. Um, yeah. What was your peak viewership? I was maxing out at 25 and that was my. biggest issue.
Um, 25 concurrent viewers. I couldn't. break through that. Um, no matter like. how much I changed up my strategy. Um, did you start a YouTube channel? No, I just I was putting in all my Yeah, I was putting in all my effort into. continuing to stream. And. Yeah. But the best way to get exposure. there is to get build up an audience on. another platform. That's what the CEO at. that time said, right? Yeah. Tik Tok, YouTube. Okay. And like I said, I was I was it was just. then starting to like create videos and. all that, but like I at the same time my.
my funding was running out and I didn't. have that. Well, we got this is interest free, but. you're barely making any payments, but. 2,800 well 2,640 now on this Best Buy. card. And the statement's probably a. little old, so it's probably a little. better now. But why is this debt here in. the first place? So, like I said, when I. started streaming, I took out um a Best. Buy credit card to kind of put on put. Why didn't you pay it off though? $15,000 you had. Um just for credit history. Well, why didn't you pay it off though?
I. cuz this was. I wanted to pay it off high. It was well. over the 30% which negatively impacts. your credit, right? I wanted to I just wanted to. carry it out for the credit history. Um. I wasn't really thinking about the. utilization because my overall. utilization was pretty low. I was. keeping it under 30%. Yeah. The overall. and even with um even with that on my. credit card, I it was still under 30%. So, I wasn't 100% worried about paying. it off. Um as far as current day, uh so.
it's it's two different like payment. plans. So, my MacBook is the one that's. going to expire in May. Um zero interest. until May of this year. But my um desk. and it will be done by May, right? Yes. And I will I mean I've been putting. a lot of money towards it. Um. and then my desktop computer is the. other one, but that's not um that's zero. interest until. two computers. Okay. Yeah, that's zero interest until 2024. Okay. As long as you don't misses. I.
mean zero interest is fine. Don't like. that it's this much out of 4,300, but. technically it adds inherent risk, but. if managed well, it's 0% is not the. worst thing. I do feel like I am a. credit card person. I mean, I don't. really use my credit up until um. recently. I've never used my credit card. for anything. Well, I've used my credit. card, but up until recently, I haven't. had to use it until and except for an. emergency. What I don't like is having zero.
interest payments on a large balance to. your income when you only have $1,000. saved up. So that adds an inherent level. of risk even if it's not as risky as of. course you know having something that's. not zero but whatever. You also have an. Apple card. You don't hold balances. though. You paid it off. Yeah, it's been paid off and the only. balance on it is my dogs. Um. yeah, I was seeing. animal. Yeah, I was seeing like it looks like. something that's ongoing. 530 530 299. I actually got my um my.
Apple credit card to buy an Apple Watch. and um and then I looked at it and I was. like, man, that's probably maxing out my. utilization. So, I paid off my Apple. Watch like literally after I got it. Good. And then I just kept my utilization low. and it's helped my credit score. And. actually, my credit score is the only. reason why I have my car loan because of. how good it was before my car loan. But I've never missed a payment on. anything. All right. Oh, what is this.
car? It's a 2021 Ford Maki GT. It's an electric SUV. Yeah, that's what I thought it was. It's actually my second one. Dude, you're 20. What? I um I've made some pretty big financial. mistakes. Um I had. I'm a credit card person. I had a I had a fully paid off one. before. Um, but uh it just wasn't.
meeting what I needed to do, especially. with the range and the amount of driving. that I was doing. So, I sold it and I. bought the current car that I have paid. off. And then I bought another car. What's the balance on this thing. on my new car? Yeah. Uh $64,000. See, $64,000 of car debt bringing in. $3,000 a month. A third of that being. from using your car to bring in more. income. Does not sound like wise finances. But.
what is the interest rate? 12%. See, that's why. Why' you do that? That's objectively. stupid. Right. But I have a plan on paying it. off. No. Can't wait to hear this. All right. One second. What is your minimum monthly. payment? $12,000 for $12,45. Not 12,000, but $1,200. $1,245. Yeah. Dude, that's stupid. That's stupid. It. is, but it I have no other um. I don't give a crap. That's almost half.
your income. You should be doing a lot more. You. should be saving if you're Yeah, you're. right. You don't have a lot of expenses. Where should that money be going? Saving. up so you can get an apartment. Saving. up for an emergency fund. Saving up so. you can get a house. Putting stuff in. investments. Having more than $1,000 in. a saving account. This is stupid. It. makes no sense. It is It is more than. half your income if you don't Door Dash. Dude, this is brutal. I was optimistic. here for a bit. I was like, okay, there's nothing I'm going to have to.
yell at this dude at, but now I have to. yell. And I, you know, the reason. specifically why is because you think. it's okay, and I need to make sure you. know just how horribly stupid, dangerous, and risky this is. 12%. What is the term? 72 months. Dude, it's basically as bad as it gets. Now, people are going longer than that. somehow, but that's basically as bad as. it gets. 72 months, 12 in your 20. This is stupid. This is.
so stupid. I'm so pissed at this debt. Not pissed at you, pissed at this debt. Little pissed that you think it's okay. But. well, I. Okay. What's your plan? What's this. grand plan? What's happening? So, my plan was is I was going to sell. the car that I have paid off. How much is What is that car? It's going to get. What is that car? It's a 20 1979. Corvette. Um it's a collector's edition. and I got a guy that's going to buy it. um here in a here in about a month. For how much? What does he agree to?
Okay. He's not going to put much of a. dent, but Okay. And then my plan was to save up an. additional 10,000 to help with the. refinancing. um just in cash. And then um in August. um. in August uh the I have a custodial. account that's been turned over to me. How much? About a 100,000. Oh 100,000 in what? And from who?
Um it's my mom. She just she she. um without. she kicked ass. Well, my grandfather kicked. Oh, okay. Yeah. My grandfather had a company that. sold for somewhere in the hundreds, multihundred of millions. Um, what company was it? Can you say? Okay. No, it's bought out now. Um, and all of the all the shareholders um. all the shareholders signed like an NDA. on fine. So, um, but it's about 100,000. It's It's.
less now because um I did gift my dad. about 20,000 cuz my dad's not very good. with money. So, we should give him more. No, it was. something my mom wanted to do. She was. like, you know, your money she should give her whatever. Yeah. Yeah. That's what I said. Um, but my mom. was just like, you know, let's just do. it this way. And I was like, okay. Dumb. Okay. But she is the c she's she's the person. in charge. So I there's no really. Okay. So you're getting $100,000. What.
is it? It's like invested. Mainly cash. Mainly cash. I mean it's all it's all it most of it. is. When do you get it? I'm on my 21st. birthday, which is August, you said. So, this $1,200 I was only planning to. pay for about five months before. refinancing. Okay. All right. That subdues the anger. That subdues the anger. You know, honestly, well, you're not going to refinance it. for 4% or less,
but um. Okay. What's your plan? With it being um electric, uh like my maintenance for Door Dashing. is zero. and gas is zero. Um, everything. I make on Door Dash, well, maintenance is zero. I mean, you. still have to replace things here and. there, tires and stuff like that, but. tires, it's minimal compared to. transmissions and crap. Yeah. Um, but for the most part, like no gas, no gas money. Um, and my car before. this car, this is actually my fourth. car, [laughter] but my car before this.
car was a 2021 Mustang GT, which um just. guzzled gas. It was about about it was. probably about $300 to $500 a month in. gas that I was spending. So going electric and I and because I. had already had this car before, I paid. in cash for the electric installation of. the charger, the supercharger. So I. already had a supercharger that wasn't. being used. So my electric was taken. care of. What I would do,
I wouldn't around with refinancing. Sell your quarter of it if you want to. You don't have to. [snorts] I'd just do. the minimum monthly payment. unfortunately, but that's okay. Until. August, I would take the $100,000. I'd. pay off what was likely going to be like. $60,000 at the time of the car cuz. you're not going to be able to refinance. it for 4% or less, which is the only. time where it's going to make it risk, you know, worth it. Mhm. To maintain if you're going to have it. But even still, your income to the. payment, it still wouldn't make sense. either way. Whatever,
right? So, that's what I would do. Then I would. straight up invest the other $40,000. I'm not going to say what to invest it. in. Legal, but I will say if I got an extra $40,000. right now, I'm probably just putting in. the S&P 500. Boom. Yay. Yeah. I did a. little bit of investing before. What do you have money in investments? Well, it was about $2,000, but now it's. about 200. But it it was when I was working at. PetSmart and any money that I was.
putting in. Dude, I think you just around too much. You're just in and out of things. Just. constantly just all over the place. And. what do we have to show for it? 2,000 in. checking account. Spending all of it on. fast food and. 1,000 savings. I mean, you have $3,000. to your name. Mhm. Like all this stuff that you've done has. gotten you to that and you had $15,000. at one point. I mean, you're just effing. around so much where it's just like, okay, create a plan and actually do it. Like, if I'm doing this, if I'm doing.
this, I'm just paying it off in August, putting $40,000 to the S&P. Maybe I'm. putting $9,000 so I can have $10,000 in. a savings account saved up just in case. anything bad happens to like your car. and you have to get an emergency car, whatever. Something medical, who knows? Luckily, your rent is taken care of, but. whatever. So, you have $10,000 set. aside. You have $30,000 being invested. Also have a Roth IRA. How much is in it? 17,000. Oh, well, it's been maxed out every year since I. was 18.
We also didn't send that. I can't do. things if people don't send me things. I don't have I don't really have access. to it. Okay. Okay. Either way, if you just. invested in the stock market and average. 8% a year, your Roth IRA stayed and you. didn't even continue to invest and you. put the $30,000 in it, by the time you. retire in 40 years, if you retired at. 60, it'd be worth a million dollar. So, woo, just don't go. around with this money when you get it, right? I would pay off the car.
Sell your Corvette if you want to. You. really don't have to in this situation. uh and then just invest the rest. Maybe. keep some aside uh just for a rainy day. fund. At some point, you'll want to get. a place of your own. You might not be. able to buy one right away because we. need to start get your investing going, but having $10,000 set aside when you. get your own rent will be good. You'll. need to have an emergency fund. Um I wanted to talk about that a little. bit is about um buying a place to live.
[clears throat]. um separate from my father. Um, I have a trust that is meant for either. a house or a. or a um. for everything. or education. Okay. How much? That's been my mom's um I mean it's it's. like $400,000. That's how much? Yeah. Is okay. Yeah. Okay, cool. So, okay. Uh somewhere. around $400,000. Beautiful. That's. fantastic. When do you get access to it?
Your birthday again? Um, no, just. whenever. Okay. Um, so if I were to go to school, my mom. would just use that money. Um, but. Do you want to go to school? No. Okay. I've never had it in my plan to go to. school. That's fine. You can get certified in. something. You can take advantage of. like course careers. Well, actually certified. Um, okay. Buy a starter home 400 uh $350,000. in Georgetown. Go get a super nice home. Get a $350,000. home in cash. Usually I'm I I'm all for.
leverage, but since your income is blah. blah blah right now and you know, whatever it get that gets you such an. amazing starter point and the money is. there to do it. Don't do a down payment. Don't try to get all fancy. Don't do. whatever. I would get a $350,000 home. right now today in Georgetown. Just go. get it. And then the rest of that money. that is not paying off your car from the. other thing goes to starting your. investment and you're going to be a. multi-millionaire and you're going to be. able to roll this house eventually into. a nicer house, you know, than a half a.
decade or a decade. Just don't rush all. these things. And I know you're that's. probably not what you want to hear, but. just go get a starter home, dude. It's. so worth it in your case. What do what would you classify as a. starter home? Like I have no real estate. savviness. just uh average three bed, two bath for sellability uh in the. future. Uh bath town home, not not town. home uh cuz you're going to be deep in. the suburbs and those are hard to resell. unless you're downtown. Um uh like a.
ranch style home where it's like single. floor type thing, starter home, 1500. ft², doesn't have to be super nice, you. know, maybe it's 10 years out of date, whatever. Then you update it in a few. years. You can resell it for more. probably in like five years. Um because. we're in a little bit of a dip now, but. who knows? Whatever. Five, 10 years and. you can probably save up more. Roll it. into a nicer place. Doesn't even matter. But just get a nice starter home now, like $350,000 in your area. Okay. Yeah. And then just invest that crap. uh and pay off this car and then you're.
good. Save up 10,000 for an emergency. fund. Start saving up money. Become do. what you want in law enforcement. That's. fine. But I mean, that's exactly what I. would do. I wouldn't deviate from that. at all. Yeah. I have a budget and I'm pretty. good at sticking to it. Um I. But your budget is uh. I created it after after this. I created. it after that. Okay. And um I mean I do do a lot of grocery. shopping now. Like I'm buy my buy my food at the.
grocery store. Um make a nice chicken and dumplings. every every week pretty much. Hey, your. girlfriend would be super impressed. Just go buy a house in cash. That's. sick. One thing I also wanted to talk about is. how would you go about um combining. finances with a significant other? I. know you don't have one right now, but. that's why I'm on Hinge Super Premium. Plus Extra. Okay. I've spent my fair fair time in uh.
Pretender Premium. Yeah. Says 20-year-old. Okay. Um, well, I mean, I wouldn't do it. until there's like a legal reason to do. it and like you're not legally together. Things are not legally together until. you're either on debt together and I. wouldn't do that anyway until you're. married. So, I wouldn't worry about that. now until it moves. Sounds like this is. relatively new, you said. So, I mean, I. wouldn't worry about it until that knot. is tied, right? And I was just wondering like in. a general sense, not not necessarily. with my. once you do it just both I mean the way.
I would personally do it and uh is both. paychecks go into one single account and. if for some reason people like having. things separate we divvy up within a. budget and allocate the money from there. into the different accounts based on. what the budget says. But I mean I would. just have things from one account and. then you know some shared credit cards. as well if they were credit card people. Simple as that really. Yeah, she's. definitely a lot more responsible than I. am. Okay. [laughter]. Um.
well, take advantage of the incredibly. privileged position you're in and don't. it up. Yeah, I understand. It up like you did your Twitch money, your pre- Twitch money. Yeah, just come on. Get it done. Get it done. Get it. And. because you don't make much money. anyway, uh I would also just pay off. that credit card when you get the lump. sum as well. I know that if you were on. a more concrete path salary-wise, it'd. be like, "Okay, 0% until it's done, but. you don't really make good money right. now, right?". What I've thought about doing is um kind.
of stepping back and going and getting. my level three guard license, cuz right. now I'm a level two. Okay. The difference is armed commission. versus unarmed. Sure. Guard. Yeah. Go ahead. And um I have a class that I'm going to. be taking on the 5th of April. It's. about $200, but I talked to my mom and. since it is educationbased, she'll. reimburse me for it. Okay, fair enough. Go buy you a house. Yeah, go buy a house. Anything else? Um, tell me what you're actually going to do. then. My plan versus what you'll.
actually do. Should be my plan, but. definitely I think I'm going to um sell. the car. Sell the Corvette. I don't need. it anymore. Um, take the 15 plus 10 and. then 20,000 from whatever. Oh, well, probably the other 40,000 and. pay it off. Um, and then talk about. buying. What are you going to do with the rest. of that money? I don't know yet. I can invest it.
probably. But. you're in the best decade of compound. growth. I take like 10,000 and keep it in my. emergency fund. Okay. And then invest the rest. Oh, okay. Cool. So, you're not just bull. spending it? No. Okay. Cuz I mean I mean I don't like I don't. buy a whole bunch of stuff other than. food. Um. I did mo most of my spending comes on. with video games and stuff. Okay. Just like $5 every month or something. Mhm. Um. and the house. And then the house. I like trust,
believe me, I want to I want to like sit. down and talk to my mom about buying a. house, but it's very much um. cuz she she. is her money. No. Um. not really, but she has a say in it. until she It's a It's a trust, so she's. the. Until you're 21. No, until until she believes that I'm. old enough and responsible enough to. Really? Is that what it says? Was that. the agreement? I don't know. Oh, I've never read any of.
the stuff. No, but it's her money that she's put into a. trust. It's her money. Yeah, it's her. money that she. This isn't from the grandpa. No. Okay. No, the the the custodial that's coming. in on in August, that's from grandpa. That's my money. That's what I. Well, have her watch this. Mom, let him. get $350,000 house in cash. Do you know. how incredible that'll make the rest of. his life? He's going to be richer than. anyone he knows. Do that. And I'll. connect you with a really good realtor. here. Yeah. like a really good realtor.
Um, but yeah, so it's a it's a tough. conversation cuz my mom really wants. that money cuz she she is. she wants it. She Sorry, she has hellbent on the idea. of me going to school. She wants me to. go. He's not going to school. Not everyone. has to go to school. Wake up 2023. Come. on. She wants me to go to school and she she. says, "One day you're going to wake up. and you're going to want to go to school. and you're not going to have any money.". That's not how that works. Mom, stop. being dumb. That's not how that works. Not my mom. your mom, right? Love you, mom. My mom.
I love you, mom. Okay. Okay. She's She's a good person. She. really is a good person. No, she is. She's just being dumb on. this issue. Yeah. Oh, well, yeah. Um, but yeah, like. like I said, it'll be a hard. conversation, but I think I can talk to. her about it. She's open to the idea. Send her here. I'll yell at her. She's open. She's open to the idea of me buying a. house, but she she said she doesn't want. to use all the money. She said she wants. me to finance the rest of the money. through her. No, no, no. Oh, tell her to show her. this. That's so stupid. Don't be stupid.
This is going to set him up so well and. he'll still have $50,000 left over and. $50,000 like Austin Community College or. going to Texas State can whole can fully. cover a four-year degree if that's what. he ends up wanting to do. He's going to. be getting a starter home. Dude, don't. don't listen to her being dumb. Okay. No. Um, just get a starter home, dude. You're. going to be set up so freaking well if. you do this. I hope I hope this isn't. messed up. Yeah. No, I'm pretty good at sticking to.
plans. Yeah. Well, if it's a plan that you know. you do, then yeah, that works. Okay. Um, anything else? That's pretty much it. I I mean, I I. wanted to put some of the money into. into improving my dad's home. No, but because I've lived there for so. long. No, you don't have any equity into it. Do not put your own money into it. Gift. it eventually if you want to. buy his. home if you want to. I mean, I wouldn't do that, but. I mean, his home's paid off.
Yeah, but just don't do it. Don't do it. if he has a paid off home. No, no, stop. You already gave him money when No, stop. Just stop. It's being stupid. Please don't. You can give more. Just. get yourself in a sound spot. It sounds. like you have all this stuff and you do. But right now, you actually have, you. know, your Roth IRA is actually pretty. good for your great for your age. Thank. you for that. But you have 2,000 in your. checking account, 1,000 in your savings. Get a place where you live in that. you're only paying property taxes on. which suck in the area and get rid of.
this debt and then when you're doing. well in the years to come, give back to. them. Both of them. Don't be stupid with it now, please. Gotcha. Would I So, you're saying to do the. house now? Yeah, just go get it. I don't think with my income I can. afford a property tax at this point. So, my thoughts on that, you are kind of. right. You can with the house price you'd be. buying,
especially when that car payment's gone. and it'll essentially you can, but also. you have the in a perfect world. See, I. don't know the area so much. So, I said. get a starter home for $350,000 in cash. Maybe go get a starter home for $300,000. in cash in that area. It's going to be. on the lower end for sure in that area. and then use that other money as you're. going through getting certified in. different things. You you can use course. careers again to get certified in. something that brings in more income now. and uh use that additional $100,000 to, you know, help subsidize. In the case.
where I said $350,000, you can use that. extra $50,000 to help subsidize the. property taxes, but it gets you into a. paid for house right now. Yeah. Yeah. [snorts]. And then I think you can right now with. your income right now, yes, you can. afford the property taxes cuz it's not. going to Yeah. No, it's not astronomical. No. Um, okay. For Carlos, he is in a position where he. can be like. better than all of us by the time he.
retires. It's just he's just been. evident flowing throughout all these. stories and everything and I'm nervous. about it. But if he actually follows the. plan and if his mom isn't stupid, he's in such a good position for right. now because of the car debt for where. things sit at this exact moment. He's a. hammer financial score two out of 10, but he is going to be easily by the end. of the year potentially if he follows. everything here. I think a nine out of. 10, maybe a 10 out of 10 for his age.
It's incredible, but that's if he. follows it. Make sure to check out all. the resources in the description below. and don't forget to follow my Instagram. and Twitter. Thanks.
