Dude Is Going Into Debt To Mine Crypto | Financial Audit

Hi, my [music] name is Michael. I am 25. years old from San Antonio, Texas, and. this is Financial Audit. So, what do you do in San Antonio for a. living? Loaded question. [laughter] Very loaded. question. Um, uh, a lot of people make. fun of me because I have multiple jobs. Um, why is that a make fun of? I don't know. [laughter]. Okay. I don't know, but they do. Sure. Um my. my business partner at one of the jobs. at Heroes Hideout, a card shop that uh. I'm one of the owners of. He likes to.

tell everybody that I have like eight or. nine jobs at any given time. Um. so you're a part owner of a card shop. I'm part owner. What's your percentage of ownership? Uh I own 30%. 30%. Okay. How'd you get 30%. Uh, well, when we were talking about opening the. thing up, um, I wanted to be a less, um, I I wouldn't say less present owner, but. a less, um, less present owner. Oh, [laughter].

sure. Um, I wanted to be the guy in the. back kind of sitting like uh like Wade. from Kim Possible doing all of the stuff. in the background while he was on the. ground doing all of the not all of the. heavy lifting but most of the heavy. lifting, the day-to-day work, the. managing. Um, and so we figured that a. 7030 split would help with that. Okay. So, the business partner like runs. the business mostly. Yeah. Yeah. And I do like the business. How much did you put into it. for that? Not very much. Not very much. I think. our actual split on paper was 700 300.

and then we put Yeah. Well, I had a. large collection of cards and he had a. large collection of cards that we also. just put into it. Is this in a brick and mortar? It is. Yeah. In San Antonio. Yeah. Yeah. It's off of 410 in Marbok, the SeaWorld area. Okay. Oh, interesting. Okay. And then. what are the other jobs? The other one is my main job, the one. that I get the most income from is a. business consulting firm. Um, it's my. dad's business owned and run for like 35. almost 40 years. consultant. Yes. Yeah. So, we do everything from tax.

preparation, accounting, bookkeeping, consulting. Uh, and that's where I. You don't consult people who get into. hund like tens of thousands of dollars. of credit card debt, do you? Uh, no. And I tell them to not. Why do you do it yourself then? Well, we'll get there. We'll get there. We'll get there. It makes sense. It. makes sense. I promise. Um, that's the. second main job. Wait, is Heroes Hideout your shop? Heroes Hideout is my shop. Yeah. Why'd. you spend $810 at your own shop?

Shiny cardboard is a really addictive. [snorts] hobby. and I don't get discounts. I do now, but. I didn't before. Whose decision? Uh both of us, both of the owners. Okay. What's your other job? Uh the other other job that I make money. from is uh well, it's the side gig. It's. the the YouTube channel production. company that we run. Um. they brought us a movie they made. Yes. Yeah. Greg Greg and I Greg behind.

the camera over there. Uh we run a small. production company. Really? Uh yeah. And that one does not bring. very much in at all. So what do you bring in on a monthly. basis? On average total? An average monthly for me is I want to. say 7500. Before or after taxes? It'd be 6,500. That's after taxes. Okay. Now, a lot of the Are you on a. salary or distribution? I'm on a salary for both. For both the.

card shop and for my dad's business, I'm. on salary. Okay. Okay. I don't uh don't count uh. What's your salary? Distributions. I make three. Why don't you count distributions? Wouldn't you get distributions? Well, it's because distributions vary. Uh so, I don't put it in my monthly. budget. So, is it not a very consistent business. month? It is. It's just it's a newer one. It's. been open for about a year. What's your. normal distributions on a monthly basis. there? Uh, I spend it. So that's that's where. it comes. Well, why? Because you put the So you.

spend it, but then he gets 70% of what. you spent anyway, right? Well, he does the same thing. Well, we're not here to talk about his. card habits. I told him yesterday if he. spent the same amount of money uh that. he spends at the shop on retail therapy. on an actual therapist, he'd probably. have a really good therapist. Okay. But you probably say the same thing. about me. So, are you W2 at the card shop? I am. Okay. Okay. [sighs and gasps] What comes in on. average from I know this was everything. included, but what comes in on average.

from that production company job? Um, on a good month, it's like four or. 500 bucks. Okay. Okay. And that was included in this? Uh, no. Cuz I didn't have anything come. in last month from it. When it does come in though, are you setting a little bit of money. aside? Cuz you're you're not in a bad. income situ No, actually, you're in a. pretty decent income situation. But if. you're sitting cuz that self-employment. um from that income. Yeah. itself, you want to definitely be saving. up money on the side. Even if it's not. that much, just don't want a big bill.

coming and you not having money because. also there's only $100 in your checking. account. So if a tax bill came today, what would you do? You wouldn't. [snorts]. Oh, well I the reason why my checking. account stays low is because it's. passing through for my uh credit card. payments. So all of my bills except for. my mortgage and my car payments. You're in I think honestly in a very. very long time. kind of in the most insane credit card. debt I've seen.

I would agree. Why the possible at 25 only halfway. through your 20s business owner makes. good income. Makes good income. Why are you in tens and tens and tens of. thousands of dollars in credit card debt. with. insane minimum monthly payments? Yes, I Yeah, I think you're looking at. the business card right there, right? 600 and something. Yeah. So, be uh last. year I bought a house uh is in October.

and before that uh my girlfriend and I. were not merged in our finances and I. was doing fairly well. I was putting. like $400 or $500 a week into savings. and uh just like doing fun things uh. throwing money at the production company. so that we could do fun. events and and videos. Okay. And uh once we got into the house and. merged finances, I didn't adjust.

properly. Why are you guys fully merged? We are we are fully merged. Why are you guys fully merged? Oh, because we live together. That's not. how it works. Well, we're we're planning on getting. married next year. Okay. Planning on getting married next. year? Why Why aren't you guys engaged? Doesn't matter in this situation, but. [laughter]. Great question. All right. So, that's not a question. I just I don't know. It It's a little. risky to combine finances before legal.

protections around marriage. Yes. Well, that and we didn't have a. discussion about finances before we. merged. And so was spending the way that. she likes to spend and I was spending. the way that I liked to spend while I. was making full payments on my credit. cards and taking trips with the card. points that I was getting and with the. adjustment of getting into a mortgage. which was three times the price of the. rent that I was paying and merging. finances and not having the discussion. I don't have a statement spiral. What's your mortgage? The mortgage is uh.

2175. a month. Yeah. I mean for the income, but that's. just your income though. Yeah. We'll see. What's the overall mortgage balance? Uh the mortgage balance left I think I. wrote it down. Hold on one second. The. balance on the mortgage is 247,000. Oh, sorry. $246,746.91. What's the house worth right now? Uh 258. Yeah,

it's not. No, it's not great at all. Great of an equity position. How much. did you put down? Uh we put uh 3%. Okay. We. Yes. Are you both on the loan? Yeah, we are. Oh jeez, that's soing risky. That's so risky if a breakup were to. come. And no one hopes for a breakup, of. course. Oh, and. I don't even think that'll necessarily. happen. You guys are planning on getting. married, but you never know what. happened. I understand that is a situation to get.

into. What's the interest rate on that. thing? It is 5.99%. So, 6%. Okay. [sighs]. Okay. Okie dokie. Yes. So, why' you again? So, why uh the business credit card one. that's for the production company? I. added that in there because when it. doesn't make money, I'm responsible for. paying that. Paying what? The credit card. Oh. [snorts]. Uh, and that happened because when I was. in a good spot.

So, who's is the business on this? Are. you on this card? Is your business. partner on the card? What is the what. what's up with this card? So, I own the production company full. out. So, I I'm the only one legally. responsible for it. And. you said it brings in on a good month. $500. Yes. The interest that's accured on this. card is $500 on a monthly basis. And the. right how do we have a $21,690. balance on a business that brings in on. a good year a good year a good year. $6,000 according to your numbers?

Yes. So I was paying those payments out. of pocket. Uh. well what even was the $21,690. though? I started getting into live. streaming and wanted to make a bigger. jump because it was doing really well. And we bought a bunch of equipment. And. then after I bought $3,000 worth of. equipment that I was ready to pay that. off, I was This was back in 2021. I was dipping my toes into crypto. mining. This is where I'm going to get. judged. Don't dip. No dipping. You don't need to.

dip. Yeah. And it felt like a very. comfortable dip for a little bit and. then it very quickly became a not very. comfortable dip. And I got my coworker. in into it as well. Balance of on a business credit card. because I bought the equipment on the. credit card. What equipment is $21,690? Graphics cards. Really nice ones. Kill me. Yeah. Uh, that one. So, what happened. there? What the So, you got. I got I got two graphics cards. One that. I fully paid off in cash and then the.

other one that I put on the card. Okay. There's What? What? A 4090 is not. $21,000. Yeah, 3090s at the time were really hard. to get a hold of. So, they were like. $3,000 a piece. No, but you don't get them cuz they're. not worth $3,000. You're absolutely correct. They're not. not especially not anymore. And I got my. coworker in the time. I was telling him. about all of this and he dipped in 20. grand for himself, not from my business, from his own thing, getting a bunch of. graphics cards. And I was like, "Hey. man, you should probably slow down. This. this isn't a a great idea.

for crypto mining.". Yes. Yeah. And. again, this is this is your production. company business card. This makes no. sense to me. This makes no sense. You're Yes, I I up. And that was. a that one is really really on me for. that. And that's why I am also fully. responsible for paying off that card. When did you realize you up? Uh about the time that Ethereum crashed. Okay. And when was that? Eight months ago. So, you realize you up. 8 months ago, yet you only have about.

four $300 you can spend on this card. before it's maxed out. Correct. What did you do in the last 6 months, my. dude? So, when we merged finances and moved. into the house, I redid the budget. because the budget was really tight at. the time cuz I wasn't making what I make. now. And we on average had about $300 or. $400 left over in a month. And then the. credit cards kept on climbing up. And a. couple months ago, after really trying. to push So, you budgeted, right? Uh when I was budgeting, and this.

is the important lesson that I learned. here, is when you're budgeting, include. interest on whatever's not been paid off. yet because the interest was making it. so that anytime that I was trying to pay. anything off, I wasn't actually paying. anything off. I was just climbing myself. into debt. You don't try to get out of a bunch of. the debts at once. You focus on one at a. time. Yes. And then you made a monthly payment on. the others. Whether you're avalanching. or snowballing, it doesn't matter. Yeah. Yeah. So, three or four months. ago, I'd really like hunkered down and.

gotten this. That's why I have this. budget that I sent. and started actually like, "Hey, this is. a problem." Sat down with my girlfriend. and went, "Hey, we have a really big. problem." Like a really big problem. Yeah. And Yes. And I showed her and I said, "Look, we're we have to pay all of this. off that we didn't just have that. We. had the the mortgage. We had the car. payment. We have uh a couple of affirm. loans. Okay. So, what did you do? Uh I we started budgeting better. Um.

better I say you I [snorts] know you. have your notes and that's why I'm here. Um we started budgeting better and. really like hunkering down. Um I got. into therapy and got her into therapy. too. And always good. Uh yes. And my therapist encouraged me. to uh uh get myself a better wage. because I was not getting paid what I. was worth. The. time the but just Okay. Yeah, just stop. for a second cuz you laid out your.

budget. We'll put that on the screen. Okay. So, we have auto insurance, car. payment, gas, internet, utilities, food. What's food? Is that groceries? Food is everything from fast food to. groceries. Yeah. Okay. 700 bucks. But for two people, it's not insane. Mortgage, pets, uncle. spending zero. I just recently redid. that. It was at 200 as well, but I. remember spending at 200. Yes. Jim, reasonable lawn pest therapy. Okay, that's fantastic. But in here. in your reality, I mean, first of all,

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in the video description/ comments of. your post. And make sure you put your. Instagram handle in your comments or. description so that I can contact you if. you win. Good luck to everyone and. thanks to Opus for sponsoring this. episode. All transportation together was. 777. That doesn't come close to anything. that would make sense in here. Yes. Car insurance and gas and. my car insurance. My car insurance was. at uh 240 a month. And then last month. because it was renewing, they tried to. increase it to 350. And I shopped around.

for a little bit and got it down to 83. And one of the things that you may or. may not be too happy about is that uh I. paid it I paid the six month all at once. for the new plan. So, wait. Well, not. it's like $600 for the six months. Wait, why would I be upset at that? Sometimes that makes the bill lower. It does. It did make the bill lower. That's why I did it. Why would I be upset at that? Cuz I'm also acrewing interest on the. credit card payment for. the whole payment I did. 10% of your spending, first of all, not.

included in here. $810, which was not. included in your budget, goes into the. business and you're barely getting. anything from it. Okay, cool. And then. he spent 7% on bull eating out. Yep. miscellaneous extra 7%. subscriptions almost 3%. other large purchases. I mean, so some. other large thing like. toxicology probably have to do that. There's United certainly wasn't to come. here cuz close lawn care and some Casper.

sleep thing and pet watch vet. Oh, you got all of the big bills on. there. Those were me paying off a bunch. of uh bills. And Chewy and $264 of Amazon spending. Yeah, that was all 20% of your spending. 20 of your 20% of your overall spending. was those few things that I just said. Yes, because the the payments were that. big. 20% of your spending, $1,566, not including your budget. So, okay, 3. months ago, you made a budget. Awesome. Congratulations. It only matters if you.

follow it. You clearly didn't. And this. was your most recent statement. So, again, you've realized these things. You. budgeted. Why possibly. are you only $300 away from hitting a. $22,000 credit limit on a credit card if. you were budgeting the last 3 months? This card would have had more progress. on it. And we certainly wouldn't have. been spending $6142 on purchases on it. I've been snowballing debts. So, I paid. off a couple of uh of loans. The Casper.

was a mattress that we had bought. I. paid that off completely. The fight. [snorts] camp was uh a a bit of like gym. equipment that I bought for myself. I I. paid that off completely. Um the rest of it, you're absolutely. right. Bunch of. Yeah. Uh and what we don't do on a card, even if we're snowballing, if we're in. that system, we're not spending money on. it. And yes, these are business expenses. and yes, you can write them off. But if. we're not paying off the card, if we're. not even coming close to paying off the. card and you have. insane interest acrewing it on a monthly.

basis. and you're almost the max, we put these. in a business checking account is where. it gets paid for, my dude. So, you're. not adding to a balance that gets um. $4,000 sucked away from you this year so. far from your business that does that. makes what? What was it again? $6,000 a. year. Yeah.$4,000. $4,000 this year so far has. been sucked from that business. It's. going to be 5,000 by the end of the. year, if not more, at a 24.49% interest. rate. Mhm. It is a problem.

Stop this. Stop these payments. Put them. on a business checking account. Yes, sir. Okay. So, we have your mortgage. We have your. business card. Then here's just an other. insane one. Now, this is just. That is her card. Her card. Now she's not here. Do I have. access to her spending accounts? Oh, yes. Because you're. It's all through my Chase account. Yeah. Yeah. Yeah. So, this was a card that we got as. soon as we uh got into the house. Um.

because she was. we got she got. Well, she got Yes, it's it's in her name. in her name. Correct. Yes, it's just in her name. Okay. Then she got. um and I encouraged her to do it so that. we could start getting points on that. one. Yeah. Yes. Yes. Um, and I didn't have any access to see. it. I just like was making the payments. on it every month. And then as soon as I. saw it, but it was bad. If as soon as you saw it, you didn't. have access to it. If your guys's money.

is combined, you're sitting down on a. monthly basis and going over what the. accounts look like, what the spending. was, what the budget was, and what next. month's budget is. Yeah. And we do that now. Good. Thank goodness. Yeah. As soon as it I saw it jump from. 4,000 to the 8,000 that you're seeing. now, and I went, "Okay, I can't not take. care of this anymore. So, this is. $8,640. Yes. With a minimum monthly payment of. $292.31. Death. Insanity. Death. Death. Death.

$27 of interest lost on a month. Uh, $28 rounded by one cent. Okay. 160 $116 of purchases on here. It. doesn't make any sense. We got those switched over. Those aren't. coming out of that account anymore. It's. coming out of the one that we use. So, you fixed it right before you showed. up here because again, this was just. this this just happened. This is like a. couple This is a couple Amazon. Amazon.

Amazon. You're And this is her and she. went to the your shop and spent money. there. Amazon. Amazon. Some snack. vending machine. Lovely. We need to do. that. I don't know what SE 40523 is. Maybe it's gas. gas. Sure. Only $9 of gas. Uh, is it in Bernie? Does it say Bernie. on there? Yes. Okay. Then she was getting food at a gas. station. Taquitos. Okay. On a card that we can't pay off. On a card that's losing interest. Kill.

me now. I have I don't know how to. I have been making her lunches every day. now so that she stops going. Why? She can't make herself lunch. She's. not a responsible adult. I make it cuz I love her. That's fair. I can support, look, 100%. support that $1,148 has been sucked from. her existence. Yes. And all y'all's future this year so far. on interest at basically a 30% interest. rate. Mhm. Now we have a Chase Sapphire card. That is the main one. Then. this is yours? Yeah. Only you are on.

this. Yes. Okay. That's the one where all the bills come. out of, too. $8,152. Why Why would bills come out of a credit. card if you're not paying it off again? Stop with this. You're with me. Are you Are you memeing on me? I'm not. I'm not. What is the balance on. that at that point? 8,152. What's it at now? It is at 4,643. And our bill is still on it. My bills are still on it. That doesn't make sense. If there's that. H if that. we lost $138 of interest on this, which.

means you're losing still about 75 bucks. on it a month even if that balances. We're not putting bills on it. It. doesn't happen. The minimum monthly payment of 219 is. probably at what? Like 150 now, something like that. Oh yeah, but I'm making more than the. This is the first one that's getting. paid all the way off. Well, second one. that's getting paid all the way off. The. first one I think I. Oh, bills. We put bills on here is the. words he said. Bills. Bills. Bills is. what we put on here. You bills. Bills.

Oh, do you know what pink means? It means. bull. It means you don't need to be. buying bills. I put bills on here. Waterburger, Heroes Hideout, some PayPal and something positive. vibes, McDonald's, Brew House, Ramen, Little Caesars, Your Shop, Tacos, Super. Groupies, Your Shop, Raising Canes, Uber. Eats, Your Shop, something Watches and. Sonic and Amusements, Amusements, Your.

Shop, Michael Store, Sonic, PayPal and. out. Oh, Blizzard something McDonald's. Sonic Amusements and Oh, we got some. taquitoes and Alamo Draft House or. something or Alamo something. And oh. well, you're in San Antonio, so maybe. it's the actual Alamo. I don't know. Sonic Drive-In. Your shop. Amusements. You do this. amusement thing every second of your. life. Barnes & Noble. Your shop. Your. shop. Nyax. Amusements. Amusements.

Casper Sleep. Why is there $144 in cast. to sleep? Cuz you didn't get a mattress. What is it? It was uh It was pillows. You didn't have pillows. We did. They were just 3 years old. Okay. Oh my god. Well, I guess I don't. know what the average person's supposed. to do, but I slept. I didn't either until just recently. I. think I had the same pillow since I. moved into college until No, maybe even. like through high school until just. recently. But I don't know if that's. what people are supposed to do. I was told it was really bad for your. skin.

It probably is. Well, I mean, I change. my pillowcases constantly, but. Yeah. Yeah. Wash mine like. No, I mean, I probably get it wrong, but. you definitely went and got expensive. They're expensive. Yeah, it was two. There was for two pillows. Pet watch. Pet watch. Tacos. Pet watch is the pet insurance. Why are you getting charged so much all. the time? Is it all the time? I don't know. 14 bucks. 15 bucks there, 100 bucks there. Oh, yeah. I need to get that checked out. I. don't know what that is. Yeah. Your shop. Your shop. Your shop. McDonald's. Sonic. Your shop. Mc Sonic,

McDonald's, Uber Eats, Your Shop, Sonic, Taco, Sonic, Your Shop, Your Shop, uh, USPS. I mean, that can be okay. McDonald's, Torches, [snorts]. Chinese, uh, Dinner, Diner, Watch Gang, Your Shop, Tacos, McDonald's. You're killing me. You're. ruining me. You're destroying my. existence right now. McDonald's, Chipotle, Your Shop, Five Guys, HBO Max, Amusements, Aven. $53 of interest charges this year so.

far. Stock to me $95 in interest uh in. fees so far this year. And this is at. 24% 23%. Bills. These are not bills. These is. again I want to make sure it doesn't. show any personal information before I. show it again. Okay. So, two pages. Two. pages. Pink lines are bull. Pink lines. are bull. These are not bills. So, do you want to correct what you. said? Some of the bills are on there.

and then the rest is you're just around. 99% you're just around. So, my spending was at 200 a month and. then I was bad at spending so I cut it. down. If you have cut it down. This this was. like two weeks ago. This was like two. weeks ago. So, no, we didn't cut it. down. like, okay, you know, you're. coming on the show, so we act good for a. week. Like, I don't count that. So, why are we going out to eat and why are. we spending that much money and why are. we going crazy? Again, uh 7% was on bull food and other.

miscellaneous Uh an additional. 7%. Mhm. All most of it on there. Some on a. checking account to come, but not much. Why are you doing that if we have this. really bad debt and you decided it's. really bad? you decided six months ago, oops, I made a decision. Why are we. eating out every single second of our. life if you know you want to get out of. the debt? Especially for the sake of. your business. You have employees of. multiple. Um, it's it's a mix of poor time. management and laziness. Uh, about half.

the time I'll make something at home. Uh, but I'm working. from 9 in the morning to 6 o'clock in. the evening and then I'm working the. other time. food every day. I do. make double. Not make double. Make double. Damn. New shirt. [laughter]. [snorts] I'm afraid if I made a new. shirt, you'd go spend money on a credit. card and buy it. I very intentionally, this is a funny.

little side bit real quick. Greg said. that we should have gotten the taquito. shirts before we came here, and I told. him that. You said very specifically, do. not do that if you're in debt. You're absolutely damn right. So if. you're in debt, don't buy the taquito. shirt. Absolutely not. I would You would have. ruined me. You already have. American Express gold card. Your version. Yes, that is my gold card. I'm having heartburn and I need to eat a. ton like crazy. It's the the It's the. ranch the ranch.

chips that we had. One second. Let me numb on this bad boy. No worries. On here we have $14,191. with a $414 minimum monthly payment. These minimum monthly payments are. stacking up and they are insane. They. are drowning you. $275 in interest stolen from you. $1,000. of purchases. on a card that's [snorts]. $800 from being maxed out. Why are we.

putting $1,000? Dude, you're killing me. I don't know. I don't know. Again, yes, sure. Sure, you may have corrected. things for a couple weeks, but you. decided 6 months ago that things were. up and you're walking in. two weeks old statements and I'm seeing. this. What am I supposed to think, man? That's why I'm here. Yeah, absolutely. Get some get some better strategies. Amazon. Amazon. Some Apple payment. Amazon. Join Fight Camp. Oh my gosh,

that got cancelled, too. Cable. Good. Funimation Productions. I'd. cancel that. I did. I cancelled it all. I'd cancel. That one also got cancelled. Amazon. Disney Plus. I'd cancel. Yes. The Disney Plus, I don't think did, but. Brew House. Once a Shoka is done, you. can cancel it. Brew House, Kindle, Apple, Amazon, Dropbox. That's for. business. Put it in your business. Checking, dude. Now, it needs to move. Amazon. I'm glad you're taking notes. So, I at least I do appreciate that. Patreon. Just I'm I'm sorry, buddy.

I cut the Patreon out, too. Good. Good. Because you don't give. people money right now. you get out of. debt, then you can do that. Yes. Yes. Amazon, Apple, more Funimation, Stylist. Summits, Stylist Submits. That's uh that's my uh. friends thing that I support. No supporting. You support yourself and. then you support more in the future when. you have when you're in a better. position. Movie Pass, you don't need to. be doing it. I know. Yes, it saves money. than more tickets and I know you're big. into film and all that good stuff. Oh,

you can't afford it right now, so it's. not a thing. All right. Movie Pass. and all these Apple subscriptions or. payments you got cuz I don't know where. they're going. You got to stop. Oh, this. one's at a record store. So, yeah, I stopped I stopped the Apple. ones. The only one that's currently. there is Apple Music and it's cuz I pay. for a family plan and a couple of my. friends are. car wash. Is that a car wash. subscription? That is a carcer. one cancelled. So, you have a car, you. can get places.

Yeah. Yes. $1,471 on this card alone has. been squeezed from you this year. What. are we at? $56,000 has been squeezed. from your existence this year so far. Yep. Total fees 250 bucks as well. And 24.24%. interest rate. Death. So stupid. It just doesn't make. sense. Okay, first of all, let me be very. clear. Yeah, before we get in the. checking accounts, you're not a credit. card person. And you know this. If you. know this, chop it up. Remove it from.

your autopays and uh remove it from your. Apple wallet. All that. Remove it. You. cannot have access to this. You can't. because you have access to it. You go. and you spend all your bull eating out. minimum once a day on it. That can't be. a thing because even if you continue. that I hope you don't. It's at. least going to a checking account where. you're not going to be acrewing interest. on the new balance that you're putting. on a credit card. You're not a credit. card person. That's fine. The vast. majority of people aren't. Cut them up. Take them. Remove them from their. accounts. Pay them off. Close the. accounts done forever.

Done. Checking account. And you were like, "Okay, this is a pass through to pay. for." Well, actually, I don't have your. car statement. So, [clears throat] you. have a car debt, correct? Yes, I have the information for it right. here, though. So, there. What's your car? It is a 2023 to Toyota Camry. So, you got a new car? I love Toyota. Camry, but why'd you get a new car now. position? It is September. I Before that, I wasn't. driving a car. Well, I was driving a. car, but I was driving a car that my dad. owned and then he gave it to.

Why did you get a new car? Uh because at the time when I was. at the time when I wasn't in a bunch of. debt, it made more sense to. you weren't in debt in September. September. All this has come from September. in one year. except for the business one. But. [clears throat] yes, even still. Oh, yeah. The rest of the credit decade for. a year. Oh, that's terrifying. That's.

terrifying. I'm scared for what will. happen from here from a year on. I'm hopeful. What's the balance on this car? The balance on the car is Sorry. The. balance on the car is $28,527. at 3.5% interest. Oh, that's okay. The interest rate's. okay. Minimum monthly payment end the. term. 515 and it is a sixyear loan. No. Okay. You broke it. You broke the rules, man. I know. It's supposed to be. if you get a car. I mean, come on. It.

has to be. I also didn't put anything down on it. Yeah, I was going to say this before I. learned the rule. 20% down or something. Has to be 3. years. It has to be less than 8% of your. income. So, you're killing me. At least for the. money guys. And I love the money guys. I learned about them recently because of. you. They're great. They are really good. recommend them to everyone. Absolutely. And they're coming down here. soon. I'm excited. Oh, awesome. 102 bucks in a checking account. That's. a scary balance. It's a terrifying. balance.

Yeah. I don't currently have any. the. This is your checking. What if a payment. happens? I [snorts] I balance the payment. So, the like the mortgage payment and the. car payment, I make sure that there's a. balance in the account for when those go. through. Otherwise, I put as much as I. can towards the credit cards. This is crazy. Affirm. that should have been right before I. paid it. If it's a big If it's a big. amount, they're done. Yeah, they're all. No more. No more. You're borrowing.

You're borrowing to exist. No more. Cuz. a firm affirm affirm American Express. And there's a Toyota payment. Mhm. There's a firm. Affirm. We spent. hundreds and hundreds. So 543, 500, 115, 368, and 900 to affirm for what? What. did you affirm? Oh, those were just individual payments. through the month to get rid of the rest. of the. What did you affirm, though? Oh, it was the gym equipment for my. house. Gym equipment. Just go to a gym. You. have a gym? We have the gym. Yes, we have the gym. subscription. Uh, and the mattress,

which are both paid off now. You're making me sweat. I don't know if. it's warm in here or I'm stressed or. both. You're making me sweat. Maybe it's warm in here then. [laughter]. This is the business account, isn't it? Which one? Oh, no. [clears throat] That. Randolph Brooks is another personal. account of mine. I don't have the business checking. account. Uh, no. No, the business checking. account stays at like $100. Do you guys have employees? Just that one. Oh, what about the card shop, though? The card shop has eight employees, but.

that's all that's all separate. That. takes care of itself. The other Okay. Yeah. So, this is another checking account of. you. Yes. So, 762 on here is pretty good. And. mostly it's just setting things around. Mhm. It wasn't anything crazy here. Yeah. I split my income into Forgot. You. mentioned beforehand that you didn't. have a statement, but you have student. loans as well. I do. Yikes. You'll be Yeah, it's yikes until it's a. little bit not yikes. It's I went to. college for a semester and then I. dropped out. It was like $1,500 of. student loans. Okay. At the time, I could have paid it.

off, but because it was the oldest thing. on my credit and I was trying to build. my credit, I made the minimum $50. payments a month. Uh, and then they got. deferred. It is uh 143. and85. So, $1,413.85. Okay. So, we made a little bit of. progress. Not much, but $50 minimum. payment starting again next month. Correct. Ready? Yes. Have you set up recurring? Yeah. Yeah, I already did. Good luck.

They even sold it to a new company, so I. had to make a whole new account. Probably what, like 4%. Oh. Uh, is 3.55. Is that it? Is that the end of the. debts? That is the end of the debts. What's her income? Cuz you have her debt. in here and you're actively income. Her income is. on a monthly basis uh 2564. Yeah, 25.64. for free. That's uh after taxes. That's what hits. the account.

So, we have about $9 $9,000 coming in. every month. Okay. So, I would never tell anyone to. budget together. Well, have combined. accounts and be on each other's debts. like a mortgage and stuff like that. until we're married. You guys are. already doing it. And I do situation to. situation. That's very clear from this. conversation. Just your guys'. relationship and wanting to get married. next year. You guys aren't going to. change that. So, I would just go off of. where you guys are just so there's a. better chance for you being successful. in the end. So, we will combine that. income even though I hate it. But again,

I would rather you be more successful in. the end than not. I would separate it if. I were you for now, but again, doesn't. seem like that's going to be a thing. 9,64. That is probably what comes in on a. monthly basis. That is about what I. have. Yes, debt including mortgage. Let. me add all these lovely minimums. with student loan starting and with my. new estimated Sapphire. payment.

and mortgage 4,255. a month. which Okay, so there's half our income. gone essentially. Yeah. To debt. Going to debt. 50%. Jeez. My gosh. Which. is interesting. Okay. Utilities, internet, what's that. for the household? Utilities on a not hot Texas summer. month. Average around 200. It's. always a hot Texas summer month. So, what what's this? What is it?

My. my water payment was about 50. Mhm. Uh electricity was 200 and then. internet's 70 because I get Google. Fiber. Okay. Uh, phone bills. Uh, paid through the business. Through. my dad's business. Both of you? Uh, no. Hers is paid by her dad. Mine is. paid by my dad's business. How old is she?

22. Okay. Okay. Car insurance. What's that again? Car insurance went down to 83 a month, but I paid it all at once. But we still. budget. Yes. Yeah, we budgeted in for 83. a month. Okay, we spent. on gas. na. Okay, I don't think we could find. it. How much did I spend on gas?

So, I budget 200 a month for gas and. then my gas gets paid by my dad's. business as a perk and her gas gets paid. by her dad because he understands our. situation. You guys are in an ultimate opportunity. Does he understand that you guys are. picking over paying off your debt? No, not understand your situation. No, now he's he's enabling your situation. was what he's doing. No fault of his. own. I mean, uh, it's you guys. He's a lovely man. I'm sure. That's lovely. How much is in Yodo saving? Yoda. A yada. So, I had a Yata account thanks.

to Graham. And there was a uh there was about $250. in there. was. and I took it out so I could pay off. more debts. So, we have $0 in savings. $0 in savings. I also had investment. accounts and I withdrew everything from. those to to help pay off debts. Here's what we're doing. $500 a month. for groceries for the both of you. Okay. We're meal prepping like crazy. It's. meal prepped. It's meal prepped. It's. meal prepped. Every single meal is meal. prepped probably twice a week. $500 a. month for groceries.

500. It is. toilet paper, toothpaste, all that. stuff. Makeup, blah blah blah. 150 bucks. a month. Any. other payments? You guys must take care. of. uh the the animals if you want to not. have that in groceries. Yeah. No, but if you do, we that's fine. I I. budget 150 a month. It's not that, but I. budget that just because of their. medicines that come out every 3 months.

Um Heart [clears throat] Guard. Yep. Breto, that kind of stuff. Um the $15 gym payment. Oh, yes. Uh therapy. Oh, yes. How much? Uh for both of us, it's $413 a month. 413. Yes. 413. Okay. Anything else? And then uh I pay a lawn guy in pest. control. No, you don't. I knew this one was coming. You do not. Pest control. I can accept. lawn guy. No. What would it be for just.

pest control? Uh pest control, uh they come out. quarterly and it comes out to about 40 a. month. Okay. I have a long guy. It's great. I want. you to eventually. You don't have it. when you have bad debt. Got it. [snorts]. Her parents are close. So, about 40 minutes. Okay. You borrow a lawnmower once every. two weeks. The grass doesn't grow right now anyway. Everyone's on everyone's on restrictions. anyway, so you don't need that.

I did put 200 in spending for her. Nope. This This was one that I want to explain. just a little bit before you cut it out. when we were talking about finances and. I was starting to become a heart about. things, it built a little bit of a rift. between us because I would because she. would go, "Hey, I need $15 for makeup.". And I go, "No, you don't.". Well, remember I gave you a makeup fund. Yes. Yes, you did. Um, and so I came to. $200 in spending for her, which was a no. questions asked spending. Like, she gets. to because I don't personally think I.

understand that makeup is an important. thing for her. I don't personally think. that it's a necessary expense and she. does go overboard with it sometimes. It's not, but I get it for. self-confidence reasons, which is why I. put it on the toilet paper. Okay, then that that is what will. happen. Uh, now you guys go to therapy. You guys. are getting married. Have you considered. doing a potential coping out one of. those sessions as couples? Yeah, we're going to I talked with my. therapist yesterday about. that'll help cuz this isn't this is.

again you guys are not combined. But. again, I have to treat you like a. married couple cuz you refused to act. any other way. So this is the only way. to hopefully get you to a situation. anyway. But whatever because of that you. guys have to approach these situations. together. You can't be like this is what. we're doing cuz we don't the marriage. doesn't end. Well, it ends, but it. doesn't go to a place that's good. And. I'm sorry, she also can't have that. I. was thinking that your budget was. actually going to add up to less.

Mhm. Because of that, I'm actually going to. redo the math cuz that that that felt. high. But if it's where it landed, she. certainly can't have that $200. Okay, we're going to try to get out of debt. Okay, there it is. Yes, I added it wrong. the first time. So, maybe. since makeup and stuff is in there, let's give her 100 bucks.

All right, if you guys can get to a point where you. guys are on the same page, both is. enthusiastic about getting out of the. debt so you guys have a bright future. together, sure, let's cut it. But. again, person to person, nothing's ever. one sizefits-all, right? Well, she has a lot of makeup. allergies and so she's she was. constantly trying different things. So 6,26. is what you need to survive on a monthly. basis. That's it. That sounds about right.

We're just going to say you have $3,000. left. $3,000 left on a monthly basis. Lovely. So first two months you guys are first. of all we're following this budget. You. weren't following this budget. Not even. close. It was stupid. You okay? You. accepted it. That's okay. Yes sir. So what we do from here first two months. you set the money aside in a high yield. savings account. You can use what you. use. I use SoFi. Either way is fine. $3,000 and then $3,000 to $6,000. You. have enough to survive for a month if. something were to happen to either of. your incomes. Lovely. So, two months we.

have a one month emergency fund. Oh man, your balances on these things. are just ridiculous. Okay, so month. number three, we put it towards the. Sapphire card. You're doing minimum. monthly payments until you have that one. month fund, by the way. Okay, minimum monthly payments and we're. putting every the $3,000 towards the. Sapphire card in month number three. Then we're finishing it in month number. four and we're putting what's remaining.

towards. the gold card. Uh hers or mine? Probably hers. Right. The lower one. It's hers. If you're going to again act. like it's a marriage that's not real. That'll pro. And then after that point, it'll probably be about $7,000 card. So. again, we did. So, we just finished. month number four heading into month. number five. 300,000.

It's going to take an additional two and. a half months. So, I've Okay, halfway through seven. We'll call just. to be conservative. We're entering month. number eight now. Gold card is done. What you guys have left over is getting. much higher because the minimum monthly. payments on these are crazy. Sapphire is. gone. Gold card is higher. We now head. on over to lovely old Eeyore gold card. of which will be because nothing is.

being spent on it anymore, but the. interest is still insane. Heading into. month number eight, let's say it's. $12,000 at that point. Divide that by. the $3,500 you guys have left over at. this point. It's going to take an. additional three and a half, let's call. it four months. So, we just finished the year. heading into the first month of the. second year. Minimum monthly payments on the student. loans till it's paid off. Car, at least.

it's a car that's going to last. Oh, yeah. You're driving this thing into the. ground. I would minimum monthly payment. until it's paid off. If rates ever come. down again, I would actually get it on a. three-year loan. Okay. Refinance it. But. I don't want you to get a higher rate at. this point. So, we're minimum monthly. payment on that. minimum monthly payment. on student loans until it's paid off. because the rates are whatever. And I. need you to you don't have anything. invested, do you? I do. In an Roth IRA, it's about $1,100. Okay. So, you have nothing invested. [laughter]. cuz that's you're not going to retire. off of that compound growing over the. years. So, we need you to start catching.

up on that cuz you're, you know, at the point where we're. heading into month number two or month. number one of year number two, you're. over halfway through your best decade of. compound growth. So, we need you to. start throwing monies in there. Okay. 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 monies. I love that rate on my.

monies. So, if you want to get a great. rate like that on your monies, 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. Blue business, it's. going to be worth probably $17,000. around that time because the interest. rate is death, death, death. And you. have about $4,000 left on a monthly. basis now. And hopefully incomes are. increasing all throughout this. That's. going to take about four and a half. months. Okay. Lovely. So one year, four. and a half months that's gone.

The house, sure, you can refinance it if. rates ever get lower than that. eventually, but right now we're probably. minimum payment until it's paid off. anyway. what you could do to just hit. principal a little more. Yeah. At at. this time, let's do minimum monthly payments on the. house, car, student loans, and let's. take of the $4,000 you need now. about $4,000 is five on a monthly basis. Times that by 12. So 48 No, no, no, no. Sorry. Well, we actually are a small.

business owner. So, I probably normally. do want a small business owner to have. a larger emergency fund. So, you need. $4,000 to survive on a monthly basis at. this point because the debts have been. cut aggressively. Let's call it $4,500. Times that by 9 months, that's $40,000. $500 minus the $6,000 you already have. in there. So, okay, [sighs] $34,500. divide that by the now. $4,500.

you have left on a monthly basis. So, an. additional 8 months. So, okay, cool. This is a 2-year process from paying off. the bad debts and having a fully funded. emergency fund. Once you're there and. you're 27, what I need you to do is. 50 30 20. So, we're doing the 50% on. needs and max. I would have that lower. if possible, but that's where you max it. uh for your grocery and blah blah blah. and everything spending that are needs. to exist. And then I need you to start throwing. 20% of your money towards investments. Always max out the Roth IRA and then.

probably throw the rest in your 401k. options if you have those as well. And then 30% can be on money again uh on. fund other than her $100 that she gets. All this eating out and bull taquitos. and going crazy eating out every second. of your life and all these extra. subscriptions, they don't exist for two. years. You do free fun or you include it. in her $100 of spending. If she wants to. go get Mickey De's for the two of you, utilize the parents, have the parents. take you out. They sound like pleasant people. So, get. the meals with them. Yeah. Then at that point, what would I try to.

include in your need category and you. can the 2,175 for your mortgage? I would. just. put that at like 2,500 or if you're. feeling wild, $3,000. You just start to it. You'll pay it off. earlier. You're hitting the principal a. little more since this is 6%. And that's. what I'm doing cuz I ended up getting a. newer house at, you know, the rate that. I wasn't thrilled with kind of like you. So I'm throwing extra towards it about. an extra thousand. Um, so you can attack the principal at. that point. But we have to wait until. we're fully out of debt and we have. fully fund.

So then 3020 from there. That's what I would do. And I think as. long as you actually do that and. sacrifice now, you guys are young enough. and you'll be married at that point and. you guys she's al your 50 3020 as a. household. So not just your income but. hers as well. I mean, you guys are going. to retire multi-millionaires regardless. of what happens with your business. As. long as. Yeah. Because this doesn't account any. extra from those either. Yeah. Yeah. Exactly. Exactly. Or them. going under. But if your dad's business. goes under, that would be unfortunate. because that is your very much primary. income. What does she do for a living?

She currently works for uh the. technology department of the school. district. Very cool. Very cool. Yes. So that's what I think. I think you've. been around. Absolutely. and you haven't been focused. and because of that you need to take two. years to clean up your this is a crazy. amount of debt but I think you're in. fortunate enough situations together you. and your girlfriend where you can get. out of it much quicker than the normal. person would get out of it so be. thankful when it comes to that I think. this would take aggressively for the. average American five to six years to do.

so be happy it's only two sacrifice to. two years and you guys will retire. multimillionaires if you follow this. it's worth it. I appreciate that. any final thoughts. I think you hit everything pretty much. on the head. Um, definitely need to switch everything to. a checking account. Uh, we were talking. about that before I came and did decided. not to do it until after we got your. thoughts on it. Um, even though I pretty.

much figured you were going to say that. Um, no, I I think you [music] I think you. got it. For Michael, that has to be some. of the worst credit card debt I've ever. seen. [music] When it comes to his. hammer financial score, spending in a. budget, two out of 10. It was bad. It. was all going to Continuing. bad habits. That was rough. His debt, 1. out of 10. It's only giving him a one. Not a zero because there's no IRS debt. or collections, but still, that is. absolutely horrendous. Credit [music]. card debt, 1 out of 10. Emergency fund,

there's nothing. Zero out of 10. Retirement, he just started. It's. basically nothing. It's certainly behind. where I'd want him to be. One out of 10. real estate. He actually does have a. house. It's a little risky because his. girlfriend, not wife, is also on the. mortgage and they only have a 3% equity. position and the real estate market. [music] has been questionable this year. so far. So, who even knows if they have. equity in the home actually. [music] So, Hammer and I'm giving that a 3 out of. 10. Hammer financial score overall 1.5. out of 10. Make sure to check out all. the resources linked in the description. below. They are 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.