Business, You Call THIS A Business?! | Financial Audit

My name is Santi, I'm 29 out of. Albuquerque New Mexico and this is. financial audit. So what do you do for a living in. Albuquerque? Um I have a mobile. detailing business. Oh, okay. So you're. a business owner. Yes, sir. And that's your full-time thing? Yeah, mobile detailing. So going I. I'm not mistaken that's going through. and cleaning cars, making them look all. pretty on the inside. Yeah, so really. mobile detailing is like a very thorough. cleaning of your vehicle inside and out. Um there's a few different types of. detailers out there, but really that's.

what we do. We come in, take brushes to. the vents and the cracks and crevices. and clean and everything dusted down. Um. dude, that's like how long have you been. doing it? Uh I launched my business in. June of last year. Okay, so a year, just. over a year. How has it been? Interesting. Oh. Yeah, um very um I finally got some. bookkeeping help and was in preparation. for Well, I I was going to do it. anyways, but it came through just in in. in time for this to get a P&L for the. first time. Ah, uh-huh. Which if if you.

want to a little later or whenever we. can go through that cuz I think that's. important. Last year, the first 6. months. So I've only looked at the P&L. specifically at like last year and then. like this calendar year. Um last year I was negative I think like. three or four thousand. Um this year at. this moment um like. Like I said explains all the debt, but. Um well, it's that the debt is honestly. like from before that. Yeah, so um but. uh um. this year I'm up like 13, 14,000.

That's not enough to live on. No, but uh that's what I'm figuring out. Trying to get through that and and I. anticipate this work will really help. give me some clarity. Um have you been. picking. How many hours a week do you work this. job? Um in the field. I mean I it's it's all I do. Total work total work, yeah. What do you. do? How many hours a week? Um. let's see. Like probably like 80 hours a. week. Oh. not all detailing. So.

that's detailing. How much of that is detailing? Probably. like five days a week, anywhere from. four. hours a week? That's let's see, four, five. I'm going. to average like let's say six, seven. hours. So let's say six and a half. It. was six, that's good. Yeah. So a day, five days a week. Two of my days, one is. uh coaching Coaching coaching what? Uh. business coaching. Didn't you just say. it took a day? Okay, so So that's what. one day one day's reserved for that. hour. Yeah, but not only that. So like the.

whole morning is like content creation. or working on the business. Yes, sir. Okay, what's that? Is that a. different job or is that for this. business? No, it's for the business. What content are you creating? Uh mostly. reels. And then also like I try to do my reels. We'll link his in the description then. Thank you. Yeah. Um yeah, so my reels. and then also uh my email marketing and. um I've been doing some blogs and stuff. as well. um for the post. So it's all all the. work that I do is for the business and. business related. Do you have more.

business than you can take on? Not at. the moment, so. Okay, good. I are you. what for the area. where is your pricing in terms of the. overall competitive industry in the. lowest to the highest, where are you? Um. probably like high mid. If you're detailing 6 hours a day and. you're in the high mid. this doesn't sound like a business. that's going to make it. Not to just be.

negative, but if if what did you say? $13,000 this year so far? You're almost. in Q4. Yeah, and well that's that's um. that's net. So like the business is done. over 26. Oh even $26,000 in three. quarters basically. But that's 6 hours a day. Five days a week. Yeah, let's pretend it's just a normal. 8-hour day. That's not going to make the. gap to a livable income or successful. business. I'm sorry, I'm not trying to. be negative. I'm just trying to figure.

it out. Yeah. cuz I. want you to obviously do well and I'm. trying to be very realistic which just. sometimes can be sound kind of. pessimistic. How does this business go to making you. a living. that I'm not seeing? My My current plan is to go harder on. marketing and advertising um and so. trying to generate more So I did some. quick math. So an average detail I can. expect about 350. And so I figured if I.

do that five days a week and I So excuse. me, if I do two two a day, five days a. week and I just assume just a 50-hour. work 50-week. uh year. I think it's like 175. If I did the math correctly. Um so it would be an average of $700 a. day, five days a week. Uh for how many hours again a day? I'm. sorry. Um well, so if if I do this if I So my. goal is to book out five days a week,

two jobs. That I can anticipate being. anywhere from like eight to 10 hours. And I can anticipate doing about 700 a. day. How many day are you doing How much. a day are you doing right now? At the moment um probably on average. like one a day, five days a week. No no. no, 700 a day. How much in terms of. dollar amount? Now. Um. I can't think of the average right now. off the top of my head um but probably. like. 250 to 300. So like for example, my last.

job I did. Yeah. was like 400. But that's also assuming. some days that I don't have have any. jobs. No, that's $65,000 a year, five days a. week, $250 a day. You're at 20 and we're three quarters. in. Correct. Um and so that's. My assessment is based off of what I've. been doing maybe over the past like. six weeks. um where I've seen a lot more growth and.

development in my skills and abilities. to fulfill services. Um I participate in. some networking groups as well that are. like the referral based. Sure. Um and so I started one I want to say. maybe like. five weeks ago and then another one I. started about three, four weeks ago. Me assuming the numbers that you gave me. is like me putting a bet on a single. stock.

penny stock. I don't know. I can't I. can't just assume that. Historically. again, you were negative last year and. we're up I mean you walked away with. 13,000 this year so far. Mhm. Uh okay. But given that I'm building a business. and like really working on myself in. this business, I foresee it like. developing over time. I just want to. with risk and taking businesses. We just. there's things to do before then. We. have a fully funded emergency fund. We. don't have any bad debt. We haven't even. touched this endless stack of bad debt. This is bad credit card debt. Yes.

So is it the right time to start a. business that doesn't make any money? I. don't know. Like okay, why not for. example. work for a detailing company. get paid. soak up the job experience understanding. what it's like to run the business and. what they've done and all the successful. things then eventually after some. non-compete ends start yours. Mhm. Well, again you're going off a trend. line, but your trend line is down right. now. June, July, August is down. Like.

June was a peak. Great, which is. awesome. You know, it was March, April, May, June, July, August. So if we're going. off the trend line, we're headed in the. down direction. Mhm. Correct. Yeah. Um. maybe um. I'm banking a little bit too much on. It's just not bringing in money. Yeah. Yeah, and I know it's not much to go off. of especially right? Like we see the. trends going up and down and new. business and figuring things out. So. that minimum of $250 a day, I'm.

surprised you're even like making. payments. How What's your living. situation right now? I need to know. Uh I bought my house in 2019. Oh, you. own a house? Well, I got a mortgage on. it. Yeah, yeah. Okay. And that right now is about 1,200. bucks a month. Wait, you mentioned to me. beforehand, oh this would make so much. more sense for living. I was like, how. is this dude paying to exist? You mentioned that your girlfriend. contributes a lot. Mhm. Oh, that makes.

sense cuz math was not mathing. Yeah. How long have you been with your. girlfriend? Uh about six and a half. years now. Is marriage in the future? Yeah. Well, and and that's what we both. plan and and and move forward or towards. as well. Well, buddy. Okay. What is she taking care of? At the moment she covers the majority of. the utilities. Um I've been up until. this point paying the internet which is. like 45 bucks. Um we have this Well, there's not a. document on it, but we do have uh food.

stamps, EBT, which I think is about. I I think it's like 290 a month. So we. use that. You do, she doesn't, right? Correct. Yeah, cuz she makes $50,000 a year. I. think you told me before. Yeah. And so she also covers uh the. groceries that are in excess of that. And then majority of the time if we like. go out with her family or something like. that, she covers it or we'll um split. it. But so those are those things and. then some of the like But you take care. of your.

your rent or the mortgage completely? I. am, yes. So I cover all of all of my. to afford it cuz again the math doesn't. math. Third $13,000 a year doesn't even. cover your. Uh what's your mortgage? Uh 1,200. And technically there's. there's two cuz I got in first-time home. buyer. So I got the the. regular mortgage and then also they. financed the down payment. So you would have had $2,100. $2,200.

left this year outside of your mortgage. payments. I I don't know. You have to tell me. something. What is not adding up cuz. something is something this is I'm. confused and doesn't make sense. Yeah, honestly. honestly I'm not too sure. I just been. Well, so there I had I had a part-time. job early this year at AutoZone. So, I. was making a couple bucks there but not. a lot. And then we got robbed a second. time. No, you didn't make a couple. dollars. What's the minimum wage in New Mexico?

I think at the time it was like 12. something an hour. you're making $12 an hour not a couple. bucks. Yeah. And so that helps it that helped cover. especially the early part of the year. because I had like only three jobs. between December and January. Um and then I got robbed. jobs? Yeah. Yes, sir. And um You got robbed? Yeah, we got robbed. The store got. robbed and I was working. um twice. The second time they pulled a. gun on me and I was like that's that's.

that's probably good for me. I get that. No, if I had that in business too but. then I would go get another job and not. just not have another job because. there's that Oh, let's talk about the. debt. Let's Oh my gosh, what would you. give yourself score 0 out of 10 hammer. your your score? Uh Santi financial. score. Yeah. I'd like to take a brief moment and. thank today's video sponsor Vora. Vora. is an exciting investment platform that. is changing how to grow your money. It's. essentially the first ever automated. robo advisor that rewards you for. investing and saving. Vora matches 1% of.

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promo code hammer23 after you deposit. $25 or more, you will get an additional. free $10 bonus right away. That's why I. love this. It's just free money. And. after you create your account, you can. get an additional $25 for each friend. you refer using your unique referral. code. So, use code hammer23 and get a. $10 bonus when you sign up for Vora. using my link in the description below. Yeah, I don't know. I just been super I. guess scrappy and and every month has. been very close to paycheck to paycheck.

You know what I mean? Like I'll get a. maybe a couple grand in the bank account. and then between. either softwares or like, you know, the. mortgage and things like that and and. paying the the minimum payments on on. all these debts. It's like. just making it by the skin of my teeth. Oh, and before we go into this debt. make my day better. Hit that subscribe. button. 750,000 subscribers, that's what. we're trying to get to and thank you to. everyone who has so far. I really. appreciate it. We have a Freedom card. Yeah, this is. giving you a bunch of freedom.

Freedom of. owing. 5,000 The balance of this one went up. So, yeah, no Okay, math is making more. sense now because you can't afford life. so you just put it all on a card that's. already basically maxed. Yeah? Is that what's happening. essentially? Not really but there is So, I've over the past couple months I've. resulted to as much as I can. um. only pay for things either cash or my. with my debit card. Um and um.

there What are you talking about? You. purchased $278 on this thing even though. you only made a $163. uh payment towards it plus an additional. $122 of interest charged on it by the. way, fun fact. Yeah, it's bad. So, go on telling me about the thing. that was incorrect. Um. I can't remember off the top of my head. so I'd love to go through the statement. to point them out. I think on this one. there is one thing that I've maintained. on a credit card which is your Nest. subscription. That's a Nest subscription that you go.

purchase a. No, it's a it's a subscription. It's a. annual, yeah. Then an annual Amazon Prime subscription. as well. Get those off there, man. $122. of interest. You've lost $1,000 of. interest on this card so far this year. The interest rate is basically 30%. rounded up. We can't have things on. here. This is a card that's you. $5,037. balance went up. It's basically maxed. out. The minimum monthly payment on here. is. $172 which I mean you can't even afford. that and this is just one of the debts.

Now we have a Amazon card. Mhm. Which is. funny. I probably would have put my. Prime purchase on there but whatever. It went from 9,462 to 9,391. But you made much bigger of a payment. 342 but guess what? We still purchased. $58 and then $213 of interest on it. Ooh. So, 9,391. The largeness of that number didn't even. hit me till right now. Mhm. Geez, it's probably cuz I'm hungry.

Okay, $307 is. a monthly basis. You can't afford this. Correct. Audible, you don't need that. No, and I. I did just cancel it. USCCA? Delta defense? Yeah, so that's one thing. that I've made sure that I was going to. maintain kind of no matter what. It's uh. it's a membership for legal support in. the case of a self-defense situation. Um and. this I don't know if maybe we.

attacks you, you get. Yeah, so fundamentally what it is if if. you're if you find yourself in a case of. self-defense, they have lawyers that. will come to. support your case and then it's also. backed. um like with financial for for like. legal fees and stuff like that. $1,500 of interest lost on this card so. far. Basically again 38% was like 28%. Harbor Freight money rewards.

You know, this is a 0% interest thing? Yeah, so 12 12 equal payments. Starting. when? June. Just yeah. And so I I've made my first payment this. month. Of? Uh it should be on there. I think. it's 88 bucks. Um I have it right here. I think it's $88 a month. Yeah, that'll do it. Okay, good. That's fine. I'm okay with the 0%. financing. Again, not 100% sure for you. because you just haven't managed that. well but for people that can, 0%.

financing is fine cuz you just invest. the rest and obviously. 8% of general stock market return is a. bigger number than 0% so. it's fine as long as it's managed but. you know. And like I was mentioning a little bit. before, this this debt pretty much I. think basically my downward spiral for. debt came about when I after I bought my. house. At the time at the time I was. bartending and I was making like 60 65 a. year.

um and. like no responsibilities. You know what. I mean? It was like. my girlfriend was. the only other like responsi- Oh, and my. and my my dog. Um like I don't have like. a specific thing like this is how I got. this much debt. It was more so just like. maybe like stress spending and like kind. of giving up a little bit. Why'd you. give up? Um I think it was just like some stress. You could maybe call it depression or. something like that. And it was just. being just being completely. irresponsible. I think.

at the time it was like, "Oh, I got. money. Money's coming in. Like it's it's. good." I wasn't being. very thoughtful or looking into the. future. Yeah, cuz you've racked up more. credit card debt than I've seen in a. very long time and you're only 29. At least this card you made a minimum. monthly payment of $959. on but it only took it from a balance of. 8,834 to a balance of 8,788. because there was $213.60. of interest that had accrued on this. card sitting at a lovely 28.24%.

interest rate and this year so far we've. lost $1,600. on it. For those keeping track at home, that's going to take us to. What are the different cards? You had. one to a thousand, I think. $4,100 in interest you've lost this year. so far. You've brought home $13,000.

from your business. Make that nine now. Uh. with some credit union. Nusenda. Mhm. We have a balance of 328. That's all? So, good. Uh yeah. What's this for? What is this? That was. when I was like early on building my. credit. Well, sorry. The I was explaining what the. line of credit was but that was uh vet. bill. So, I pulled from my line of credit to.

pay the vet bill and Is there a minimum. monthly payment or you just have to pay. it whenever? Uh minimum monthly. Yeah, because you're missing payments. Five. Go on. Um I was just going to say you're about. get ready to to yell at me. Um yeah, that one I just completely. forgot about it. Um like I knew I had it. out but I. spaced getting in there to make the. minimum payment. And it hit and it took. like on my credit score I think took. like a 50 point hit. Um but I would say.

that's the one and only derogatory mark. I have. $75 minimum monthly balance. This is at a 14% 14.5% interest rate. So, we haven't seen uh. interest rate that wasn't like death. except for that 0%. Wells Fargo something. Oh my gosh, dude, it doesn't stop. Mhm. Wells. Fargo, everyone's favorite bank. $7,179. is currently owed, 58 cents.

Okay. Dude, so much credit card debt. This is. an absolute insanity. $225 payments, $2.43 purchases. Looks like you went and. got some taquitos at Shell Oil. And $160 of interest was accrued. Lovely. 25.24%. interest rate and you've lost. $1,209. on that. So, that brings us to a lovely. $5,300 of interest losses here so far.

And that card, real quick before I move. too fast, just cuz I wanted you to have. some of the context too is I. this is why you say not everybody's. credit card people and getting a. transfer is not the best thing for. everyone. That was a transfer when I was. I was living in Arizona. um for for work at the time. I was. making like. 43 a month, but I just had my rent. there, which was a thousand bucks, and. my mortgage at home, which was 1,200. I. had some tenants um.

but they were only paying me like 800. bucks. Um my my uh some. important people to me, so I wasn't. charging them what would be an effective. like. uh rent rate at the time. So, it was 800. bucks, so that was 800 bucks for that. So, but I was still paying. at least four to like 1,400 bucks in. like just housing expenses during that. during that time. And so, I opened this. card with the hopes of transferring it. over and then um.

making progress on it. And you didn't, and then you just racked up the past. card again, probably. Yeah, and so it. was it was just surviving. say not to. Yeah, and then I ended up. just surviving. And I think the biggest. thing was I didn't have actually a a. plan. Um and so, I was just still trying to. like survive, and that landed up on the. on the cards. Now, this is your new. owners thing. So, was this you financing. part of the down payment? What was this. specifically? Yeah. Yeah, so the the structure of the.

program I qualified for, and I wasn't. like too too well aware of exactly what. was going on. Not that I necessarily. feel like I was taken advantage of, but. just the way it it is is that um. I got the mortgage, and then there's a. reduced down payment to like 3% in new. new home buyer, and then the other. program that I got was basically. financing. Yep. So, you financed the. other 3%? Yeah, which was like 7,500. That's so bad. I want everyone to get. into a home. I want you to get in a. home. I want you to get into a home.

Well, actually well, technically you. can't afford it cuz you don't make any. money. You're kind of relying on the. girlfriend, and then you're relying on. under the other debt. So, it doesn't. make sense for you to purchase this. anyway, but having equity in a home is. important, and there's ways to get. there. We don't need to rush into it. It's hard for many people in many. cities. Don't get me wrong. It's not a. one-size-fits-all, but this is. you did not need to do it cuz it's not a. very expensive house. Anyway, $6,675 is the current principal. with a $10 payment. It's going to take. forever. I pay like 40 just under 45.

bucks a month. Oh, yeah, sorry. Interest, $33.44. 44 total. Yeah, cuz all of it's going to interest. pretty much. $44.95. Okey dokey. At a 6% interest rate, you know. Then here's the mortgage. What is this. home worth today? Do you know? Last I checked, I think on like Rocket. Money it throws out like expected. values. I think I saw like 230. Well, I. did. I not that I think that, but the.

last time I checked. We have a mortgage. of 138292. With a monthly payment of 1,175. That's. what's rough for you It does include my. escrow and my insurance and all that as. well. At a 4.5% interest rate, and we like. that. We like that, which is why I want. you So, I'm immediately there's things. going through my head right now. It's. like, okay, if you want to fully focus. on this business, fully focus on it, and. you don't really make that much money, but you think you're going to get to a. place of money, but we need to get rid.

of this debt because you can't afford. it, so you're just building more and. more debt right now, and it just doesn't. make sense. The situation is not. mathing. A way to clear the debt is to. sell the house. You have that chunk of What What did you. say it's worth? Uh 230 based off of. Rocket. After fees and everything, maybe walk. away with $75,000, do this, pay you. know, pay for that, have a little bit of. an emergency fund. Yeah, pay off all the. debts, have a little bit of emergency. fund that you can sustain yourself while. you build a business, and you and your. girlfriend rent for a bit. That sucks though cuz you're locked in. at a 4.5% interest rate. Who knows when.

or ever if we'll see those again. You. know, probably at some point. historically, but it could take a very. long time. Like you're in a rate that I. like, and I would rather you just have this. forever and just minimum monthly. payments until it's paid off. But I feel like you're not willing to do. what's necessary to pay off the debt. other than sell the house. I don't even. know if you're willing to do that. But. cuz what's about to be necessary to pay. off the debt. is you spending less time in your. business and spending more time actually. making money for a other business that.

makes money, you know? Yeah. Because you. have to pay off the debt. You have that. as a responsibility. Yeah. And so, I that I'd like to let you know, it's something that I certainly have. considered and would like to do. Like to. do? Yeah, but my so, our current. situation, me and my partner we've had. the conversation. Selling the house is. at the moment not quite an option. Go. on. We just don't. aren't looking to sell sell the house.

Um. said you would like to. Yeah, but as a So, why is it not an. option? Well, cuz it's not just my own. uh opinion. Actually, it is. You own the house. Uh. she doesn't have She doesn't pay for it. It's I don't care. Wait, I don't give a. I'm sorry. I don't care. Yeah. What? Does she know how bad her debt is? Uh I believe so. I I'll just jump ahead. right away. I don't think she's going to. approve. Well, It's not her choice. This.

is not This is not up to her. Yeah. I. would like to be clear too like with. moving moving forward. I know this. situation is dire. Do you? Yeah, that's why that's why I came here. to to get some advice. And I would like. I just want to be honest with you as. well, so we can work out. a good plan. Um selling the house is. certainly a consideration, You literally said you want to. But. well, cuz it's going to be a joint. decision, and she's not for it. Why? Why.

is it a joint decision? I'm sorry, but. why? You guys are not married. She has. nothing legally to this house. Why does. she even care about the house? Um You guys can rent and get a house. together when you guys are married. I. want you guys to have a house. I want. you guys to have an amazing future. together. Why would she have no say in. this? Uh like legally speaking. Right. Honestly, even morally, kind of to a. certain extent. And you guys will be in a house better. house even in the future. Yeah. This This There's no logic right.

now. I agree. Um. It's just a joint decision, and I would. love to maybe at some point also look at. some other options. I just have to come. better prepared to tell her what a plan. is. Okay. If we're going to if we're going to make. that change, um No, it's fine. You're. right. This was the easy change. So, now. comes the few change where you're going. to have to do. a ton of work. More work than you've. ever dreamed of in your life. More work. than you've ever pictured in your life. to get out of the debt. Yes, sir. Uh. this is the avenue where we can wipe it. today, get rid of an interest rate that. I love and I want you to have.

The alternative is about to This is. about to suck, to be very clear. And if. that's the route you choose, that's the. route you choose. Checking account has. 318 in it. That's obviously terrifyingly. small for someone that has a mortgage. and a bunch of other stuff. And for some. reason, when we make absolutely no. money, we can't afford our bills, and. everything's going we're building more. debt, we're for some reason doing. uh Twisters and Chick-fil-A. And why are. you paying for detail? This So, this is the business account. So, the these are meals.

and for the team. some lunch. Team. I have a couple guys help me every once. in a while. That doesn't make sense, dude. I'm sorry. I'm sorry. I I I know I'm coming across pretty. aggressive, but I just need to be very. clear. That doesn't make sense. It. doesn't make sense. Let Let me just talk. about my business for a second in terms. of this. When it first started, okay, uh. I edited, I scheduled, and I filmed. basically myself. There was a person who. $25 an hour for a couple hours a week uh.

pushed start and play on the cameras. That was it. I did 99% of the business. myself. Okay, when the business expanded. to a point where I knew I could fully. focus on scheduling and filming myself, I hired an editor, and he took over the. position of starting and stopping the. cameras as well. Okay, when I expanded to a point where I. knew it could be more focused uh every. position could be more focused if I. brought on a producer to help with the. scheduling, I did that. But that's. through the growth of the business.

Dude, you don't make any money with the. business. You cannot have other guys. You got When when you are starting up a. business, a true business, and I know that I got incredibly blessed. because you all are amazing. Let's be. completely honest. Like truly, including. you who's a member of the audience. Like. I'm beyond blessed and absolutely. grateful. Like I've become incredibly. but the reality for the vast majority of. businesses, man, it's going to be you. doing the long hours, putting in 80. hours a week, 90 hours a week, you know, barely getting any sleep, you putting in. the grind. You do not have the ability.

to bring on the extra help right now, even if it's an extra $10 a day or. something. You just can't. Yeah. I. agree, and this was me trying to test. that and figure that out. Um and. Sorry? When was the test? Um they came. on uh like middle of June. And um they're high schoolers. They're. going back to their senior year. Um so one of them still comes and helps. out on the weekends occasionally. But. yeah, I I I agree. So currently my my.

focus is in line with well, I'm trying. to get better like basically what you. just described as well as just. 99% of what I've done so far has been by. myself. And so the moment um I was. looking to potentially hire and I've. canceled any plans on that. Or I'm. trying to. move my focus to leveraging things that. don't cost money, but cost my time. Um in order to like grow the business. So that's why I'm doing like social. media content like the reels and stuff. like that to have a presence there. Um No, literally even that I'm like.

okay, but go ahead. Um but there are. things that still cost like um Mailchimp. for my email marketing. That's like 20. bucks a month. fine. I didn't even highlight because. that completely makes sense. But does. Jimmy's Cafe? Does Waterburger? Does the. Taquitos? Does I don't know what. Twisters is, but does it? Taquitos. Um. Okay, then no, it doesn't. Does. Chick-fil-A? Does Twisters again? Does coffee? Does. What's Rest is Gold? That's a coffee. spot. Okay, so coffee, coffee, uh. Taquitos, some Taquitos,

Golden Corral, Waterburger, uh. The Rest is Gold again, and the Donut. Place and Jimmy's Cafe, Sonic Drive-In, Amazon, Amazon, Ross Stores, AutoBright. That was just a. big bill. I didn't know what that was. Uh that's a They they manufacture auto. detailing products there. So that's uh. where I put it. That's a business thing. Jobber, also. didn't know what that was. Is that you. posting jobs? No, it's a it's my CRM. And so um my entire customer journey is.

facilitated through there. And you. should have You should have a CRM. I. don't need to I don't know if you. I know there's cheaper CRMs you can. have. For a business that doesn't make money, though. And that's not even expensive for a CRM. You just don't make money. Yeah. You. just You manually do the customer. journey yourself and then you pay for. like a $30 emailing service, you know? So like you just you don't you don't. right now have the ability to outsource. things. You really don't. Mhm. And I get it.

This is different. If you had so many. bookings every single day that you did. not have time to do the other things, then yes, absolutely we outsource this. That's where it mathematically makes. sense and you need to do it. You just. told me you work 6 hours 5 days a week. detailing. We So we don't do this. I'm sorry, we. don't. Jimmy's Cafe, we certainly don't. do it. Taking $263 out for ATM, who. knows? Amazon, Arby's, Arby's, some. Taquitos, and then a $10 monthly service. fee by the way for using this. So. everyone's favorite bank, Wells Fargo. Mhm. Did we really need to eat out every.

other day and get coffee and Taquitos? Is that a necessary business expense. when we're making $13,000 a year? No. No. I will say that Jimmy's Cafe is where. one of my meetings are. And not that. this excuse is there. They meet at your house. They meet at a. park. And I I've decided to not purchase. lunch there anymore cuz I looked over. like across of a a month and it was like. 150 bucks that I'd spent there. And I. was like all right, like I'm just not. going to order lunch there anymore. And of course you can write off a lot of. stuff and it deducts the overall profits.

of what's brought home. But. really nothing's being broken brought. home. It doesn't really make sense in. this situation. Mhm. $292 in your personal checking, again scary when there's a mortgage. We. have Spotify, we have Taquitos, that. uh a lot of that uh the coffee and. uh ATM $600 out, who knows where that. went. Wingstop, Taquitos, Taquitos. Taquitos. Unless you're just getting. like $4 gas, but I really don't think. so. On the business account, yes. Cuz I'll.

get like a gallon of gas for my. generator um plenty of times. So like. personal checking? The personal, no. That's that's Taquitos. Some dropout. thing and Shop app. Coors. Hooters. $50 of Hooters, by the way. That's a. Those are some expensive ta-tas. Michoacana. Michoacana. Michoacana. Okay. Um that's. Taquitos, basically. It's technically.

ice cream, but Yeah, it was insane. We. went we went and saw how much it was and. we haven't really gone back. Speedway. and tickets. Tickets to something. Who knows? Tickets. Can I see that? Buddy, I'm I'm just I'm just I'm kind of. upset at your life cuz I feel like I. almost care about your situation more. than you do. Because. you have 5 cents in savings. And I wouldn't use Wells Fargo for. savings anyway. Yeah, cuz you get. percentage yield of. .61 where you get 4.5 in SoFi. But we.

have. What was that 5 cents again in there? If. we have 5 cents, are we really getting. Taquitos and eating out every day? If. you combine them across the your. personal checking account, business. checking account, basically every day we. are having we're just doing some Mhm. Ally, 80 cents. All right. Great. Robinhood, $0. Uh then it says 5 cents in this one. So. lovely. People always ask me what high. yield savings account do I use for my. own money? Some of you know by now it's.

SoFi. I love them. It's great for my. checking account needs. It's great for. my high yield savings account needs. And. right now I'm getting 4.5% interest on. my money's. I love that rate on my. money's. So if you want to get a great. rate like that on your money's, just. check out the link in the description. below. I have a paid affiliate link. there. You can get bonuses all the way. up to $250 and I took advantage of that. and you should, too. Cuz I was kind of. trying to think. the money the math doesn't make sense. Yeah, so that's where I got some of that. in a I think it was last year.

that? I think it was like 3 grand that I had. in there. Um and then another kicker, um. I had pulled my 401k, which was like 12. grand, mostly. Roth. Um. No. I pulled that to survive off of. 12, you said? I didn't even process that. for a second cuz I'm just trying to even. think how to get you out of debt and I. just got distracted and. Oh my gosh. That's terrible. Okay.

Sorry, continue. Um yeah, so I had pulled those um in. order to to survive and and keep doing. things in the business. Um and keep. moving forward there. Is that all your. debt? Have we gone through all the debt? Yes. I don't have any car debts. Um. That's good. And I don't know I don't have anything. else financial. Um the big thing Well, obviously the the largest thing is the. mortgage. Um but. Which was how much again? Uh sorry, actually I have it right here. Yeah. It is 1175.

And electricity is 350. Mhm. Which is. expensive. Especially now in the in the summertime. cuz we got the central air. What about the rest of the utilities? Internet is currently 45 bucks a month. and I'm covering that. The electricity. covers the rest of that stuff. Yeah, the electricity she's covering. She is? Completely? 350? All hers? Yeah. Good. And then also the water and the. gas. Um What are you covering? I just need to.

know what you're covering. Just the internet. Which is again? 45. Uh your insurances for your car and or. cars? Currently. Um I think it's like 250. What are you doing for health insurance? Um I have uh Medicaid at the moment. Yeah. And. yeah.

And I know you get. food stamps. How much does that qualify a month? I think it's like 280. That's your groceries, man. I'm not. allowing you spend spend a single cent. over that. So I'm not even putting in. here a grocery budget. That that is your. grocery budget. 217, that's your insurance. Okay. Mhm. Health insurance, okay. Government. program. You know you're being subsidized, right, to essentially run this business.

in a mathematical way in terms of the. food. stamps. be able to. health insurance through the taxes. Yeah, and I got that cuz right before I. started with So like I mentioned. earlier, I was in Arizona for a little. while and I had like my mortgage and. rent. um and um when I came back, I was. bartending and then and that was like. the typical like two bucks an hour if. you make over so many tips or whatever. So like struggling and then I picked up. I was working on. if the Well, it's not just.

It still wasn't that much. I know, but it still gets you to like 12. or 13 hours an hour. And that's how they. get you down to the $2 cuz of the tips. So Yeah. still making at least minimum. wage, yeah. Correct. And then I was. doing I was working on cars uh like. mechanic work. Mhm. Um that was all cash. Um and then I. changed to a different bar anticipating. making more money, but we were. overstaffed, so I was getting sent home. early a lot of times. Um and still again just like struggling. and. basically still being out like net.

negative. So that's when I was like. all right, I'm going to do I'd already. been dabbling with like detailing a. little bit. Um low enough barrier to entry to get. started. Um. And I'd always. My vision in life since I was really. little like middle school is to be. self-reliant. And for me what that means. is I have the abilities and the skills. to generate resources and opportunities. for myself and others. further from that than you've ever been. Because while you're in this debt with. no savings, you're further than than.

you've ever been in your life. Mhm. And so I'm I'm working really really. hard over the past, you know, year and a. half and I can intend to continue to. work really really hard at figuring out. how to do that. And so like for example, detailing, I do I do enjoy detailing. um but. I don't detail because I want to detail. I detail because I want to learn how to. build good business. Um and so that's. really where my focus is is learning to. develop the skills. Your focus should be.

paying off debt, dude. I'm sorry. While. you have all this, it doesn't make. sense. Your credit card debts are insane. It's. It's I don't want to be a I hate right. now the fact that I mean I love. entrepreneurship. I love that idea. I. hate that I have to talk against it. right now. It just doesn't make sense in. your situation. Mhm. Your minimum monthly payments are $944. not including your mortgage. Mhm. 944.25.

Again, after your mortgage and after. that, that's more money than you've made. all year. So it doesn't It's no surprise. you're going further into debt. Or we just can't even barely make. payments and we had a late fee. on one of them. Yeah, that was a major just slip of the. mind. Terrible mistake but I won't let that. happen again. It wasn't It It That. didn't happen because I didn't have the. funds. It happened because I was being. an idiot and didn't pay attention. So because of girlfriend who gets no. saying in this, we're keeping the house.

no matter what. Currently, yes. If If I will certainly. talk with her and look at some potential. options but Well, that's all I needed to. hear. yeah, okay. Um because the new. alternative I mean what's required to. live you basically need $1,300 or $2,300. on a monthly basis. You don't bring that. in. I mean. again. for example. uh the last 9 months. $1,444.

average. So. I'm sorry. That was a thousand That's. the average of what I've been bringing. home over the. business itself. Over how long? This. year so far. On average. Up months, down months. Again, the trend went. Yeah. So I really don't know what else. to do other than work your detail as. much as you can, the actual physical and. then a little bit of the extra work on. the side. Besides that, you're just. going to have to go get another job and. work 40 hours a week doing. anything. Mhm. You talked about going to.

Whataburger in New Mexico which is out. there apparently. And even eating Whataburger today. Cool. Go be a manager at Whataburger. Work some night shifts. Be tired. Only. have a few hours to sleep. Which is what I feel like right now by. the way. But. be tired. In. Embrace the struggle because you've. already gotten into this debt of. It's like 30,000. Yeah. Credit card high interest 30%. debt. Yeah. Debt. So. it's really the only alternative because.

I can't lay out a plan for you. The only. thing is right now yeah, work as much. detail on it as you can but every single. second of your life that you're not. doing that and not resting and not. preparing of making your own food. you're working. You There's no choice. If you're not going to sell the house, you wipe this, you have some money you. can set in a savings account which you. can use towards a future down payment by. the way. Yeah. Uh. but it it helps you maintain and survive. while you're trying to build this. business which I personally support that. one because I think you care more about.

the business than you care about this. house. Yeah. It's what you want to be in your future. Yeah, 100%. So I would sell the house and do that. I. don't want to get rid of the 4.5%. interest rate more than anyone else but. it's just like. if that if that's your focus, then let's. focus on it. Let's do it. Mhm. Cuz either way without doing that, you're taking time away from your. business because you're going to have to. take at least 40 hours a week away cuz I. need you to pay off this debt. This. still going to take a couple years to. pay it off if you go no fund spending,

no nothing. Mhm. So this is a very dire. situation. I wish I could give you more. of a plan but the plan all comes down to. what do you decide to do. I don't know what income's going to be. coming in from this other job. I don't. That's up to you. Right. I don't know if you're going to sell the. house. That's up to you and apparently. your girlfriend. I. I don't know. Yeah. So. some of what my thoughts are um or at.

least my intention to move forward for. myself and my business and. um. is going insanely hard especially on on. the business. considering these these debts and what. it takes to survive and then work on a. on a um. safety fund. Mhm. What that number would need to look like. so then I can focus on getting my. business to that across the next.

you know, four to. $42,000. For the year? $42,000 as quick as. possible. $42,000 gets you out of all. your bad debt and it gets you a 6-month. emergency fund. Okay. So it's not an hour a certain hour a. week. It's however you get to $42,000. post taxes as quick as you can. You get. that. you are out of the bad interest. and you're you have a 6-month emergency. fund of like $12,000. Okay. So wait, 42 a month.

42 for the year is how much a month? Uh. post taxes. is 3,500. Okay. So as soon as I can. reliably hit that number monthly. how long is the plan that you're just. mentioning to the out of debt? That's one year? Yeah. Okay. Right? I mean I think I just. Like cuz you divide it by 12 and that's. the number you need post taxes. So you. need to make like $55,000. a year. Okay.

It's hard, man. Well, actually no. That's how much you. need saved up. So you need to add $2,000. a month on top of that. So what did we. just say? Uh 42 after tax. So post taxes you need. to make $66,000 a year. So you probably. need to make 85. $1,000. If you want to do it in a year, you can. do this in 2 years for like $45,000 a. year. Yeah. And the reason I asked. bare bones. That's no eating out, not. doing a single thing. Yeah, I'm cool.

with that. I'm I'm I'm cool with. especially like. cuz I guess with my girlfriend does pay. most of the time when we go out. Not. always obviously, right? Like we saw in. the in the statement. Um some of that's. probably ego like trying to. not look cool but feeling bad. I didn't. have pain. No. Um But as long as you have the open. honest communication, I'm certainly not. a relationship expert. Trust me. Hinge. premium plus extra extreme is not going. very well for me. Get a couple matches and then the. conversation dies after like two. messages. So I can't speak on. relationships. loss. But Well, thank you. Thank you.

But. uh. but I'm I'm I care so much I'm so. passionate about this mission that I'm. on which isn't necessarily detailing but. it is to be able to have those abilities. like I said to Why build a business that. you're not passionate on? Well, cuz I do care about it and it's it. was low low enough barrier of entry to. get started and I hadn't started. So it. was like this is low enough barrier of. entry. and now though financially. not the best time.

but at at the moment I was so fed up. with. all the other things that I had been. doing in life um that the culmination of. those things and and um some more like. awareness of of self um. pushed me in into getting into it and I. I love. I'm truly passionate about doing. business and figuring it out. And so I'm. Again, all I care about right now you. just need to get out of this debt, man. And you need to work your ass off to get.

there. I'm sorry. I wish it was a more. uplifting message. Well, the uplifting part of it is yes, once you get out of the debt, you have a. fully funded emergency fund. Yeah, you. have more opportunity to take risk and. go into these plunges of businesses and. stuff like that. I love that. You jumped. the gun a little early. We should have. taken care of one thing by you know, one. thing at a time to get yourself in a. position where you could actually focus. on this business cuz right now your risk. level's at like a thousand percent, you. know. It's a full red flags being waved. everywhere. So now we just need to make. up for what we lost and that is you need.

to just work your ass off every single. week and probably never even see your. girlfriend cuz you're going to be. working or sleeping, working or sleeping. uh to. pay off the debt and then have a fully. funded emergency fund but I mean that's. really the next steps. I wish I could. give you a more laid out plan. This is. not a thing. We have the number that's. necessary but Yeah. And yeah, so I. understand my situation is is is pretty. bad especially just in. with what I'm doing, what my finances. look like and and what the debts look. like. and that's really really what I was. looking for especially coming to do this.

is is what's what's the target because I. I can recognize that how. how bad the situation is. Like I. recognize that. So it's like I just need. some clarity. and I'll be honest, I was. never going to sit down and go through. my finances the way that that you can. Well, that's not good. That's not. indicating any. That makes me nervous for you creating. or managing a budget to be completely. honest but But no, I now. now like like I wasn't going to take. that first step on on my own but it's a.

step that I wanted to and that's why why. I wanted to come participate in this in. this series. Um. cuz I I had a lot of faith in the in in. you and what you could do to at least. give me that I know it's not the. um maybe the typical like okay, you make. this much a year, you do this, you save. this much, this much goes here, you pay. off the car in this many months, then. you dump that into this. Um that's just. not the nature of my situation but. your target. Now the path to take there. again, you could wipe it out immediately.

with the house but again, the path is. your choice. So whatever you choose to. do is what you do and then we'll follow. up in the future. We'll see what. progress and hopefully only progress. you've made on it, but. So let me see. What what comes next is. up to you, man. Yeah. So for me I can. see foresee. cuz I've I've already going into it just. going super hard in this business and. trying to. to make the money to survive and now we. have that target. Um what. what kind of. I guess what payment plan Not payment.

plan, but what plan around paying these. down when I when I Yeah, paying off the. debt as I make the money where do I put. my focus first? more disciplined I would do some. consolidation, but we're not going to do. that. So what I would do is the Amazon. card then the new sender and the. then the. Is it kind of just the the percentage. wise or are you doing like small to big? to do small to big. So whatever is. smallest cuz your minimum monthly. payments are also killing you for your. lack of income. So you need to pay off.

the smallest to largest as possible. Okay. Again, if it was a different. income, maybe we could attack it in the. avalanche finance. snowball. You're going to see the most. progress that way in terms of you seeing. the actual numbers and you're going to. get incentivized to. fully attack them as hard as you do, but. yeah, snowball. Okay. You have any final thoughts? Um. No, I well, I guess just also. concerning. So we're going to do. snowball on. everything that has interest and then. just keep making the minimum on the.

zero. zero, yep, you're doing the 88 until. that's paid off and then for the 6%. 6,075. I wouldn't include that in the snowball. I would wait until that's the last. that's and pay that off. Then mortgage. if you still have it minimum monthly. payment until it's done. Okay. Cool. Well, I'm excited. Like I said, that was. I'm really really glad and happy where. we got to cuz I was. that was kind of like my idea. cuz I know my situation is so unstable. and there's so much risk also involved.

and the the debt is crazy. And that's really the only way I could. see working out of my situation is. figuring out what I need to hit to. in a in a annual basis to be able to. survive and and actually pay these. things down. Um so I have a target to aim at cuz I. can't. because of where where I am I can't. shoot it like. Well, over I guess what I'm saying is. like. I don't I guess I I I mostly lost that. thought.

You're good, man. Yeah, and I'm I'm 100 Like I said, I'm. I'm truly truly passionate about doing. business and figuring out how to get. where I need to go and I. one thing that I've been realizing is is. I just need more clarity around things. Um and that was really really my main. I guess objective of of our time. together. Like if you just if you do these things, this is where you'll be. and I appreciate it and I know it's it's.

it's a weird. situation maybe compared to some other. people's situations. Um but I'm going to. take this this advice and now I have my. my minimum target and then just build on. top of that as well. Over time and I really really look. forward to to following up and. Beautiful. Let's do it. Make some. progress. See what we can do. For Santi, I'm quite. scared to be completely honest. It's. terrifying situation, but hopefully he. figures that out and creates a good. income path to get out of the situation.

For spending in a budget, it's going to. be a one out of 10. It wasn't the worst. we've ever seen, but it really wasn't. good. Pretty much going out every day. If you consider the Tikitos the debt, that's one of the worst credit card debt. especially the income I've ever seen. zero out of 10. Emergency fund, nothing. zero out of 10. He does have a He does. have a house, so we get to give him a. real estate score, but I'm only going to. give it a three out of 10 cuz still the. down payment is completely financed, but. he has built equity into the home and he. does own the home, so Hammer Financial. score right now. one out of 10. Check out all the. resources linked in the description. below. They're what I use or would use.

in specific situations. If you want to. be in an episode of Financial Audit and. you're able to make it down to Austin, Texas, fill out the survey in the. description below.