His Ex Destroyed His Life | Financial Audit

hi my name is Lester I'm 26 years old. based out of Austin Texas and this is. financial audit what do you do here for. a living uh I do a couple different. things but my mang gig is a guitar. teacher but how much were we bringing in. with that uh it depends because I do a. couple different things as a musician so. I do lessons I gig and I work part-time. in a music shop so so all in all it it's. currently averaging between like like 32. and 3500 a month 32 35 okay I mean being.

able to make a living in music I mean. that's a lot of people's dreams so that. I mean in Austin I guess I could. definitely see people I mean yeah you. can definitely get byy on that it's a. little harder cuz rents are kind of. expensive even your living expense I'm. seeing. $1,754 me something so that's. immediately basically half yeah yeah. yeah but you have a daughter to take. care I have a daughter yeah age four. years old had are quite young at least. for this day and age yeah oh yeah okay. so spoiler alert for the conversation. we're about to have and this this exact.

second you're now a single dad correct. so you're taking care of the Kid full. custody 100% yeah and no child support. and no child support okay so that that's. a lot to take on now with that all of a. sudden it's the single household income. no child support taking care of a kid. while also having a lot of debt well. also having a very expensive living. expense just how are you surviving man. how are you surviving.

uh well basically it and it looks crazy. from here but I was completely debt free. completely completely debt free in in. May of May of this year yeah May of this. year yeah either and end of April or. early May yeah I was completely. different what are you talking about you. have so much debt now though well I I. basically had. to her all all of her legal situation I. had I basically had to finance all of my. my legal Fe.

yeah it was messy and it was really. dragged out and it I it was it basically. ended up C it costed like double what I. anticipated it costing what did it cost. uh all in all it costed like just over. $32,000 all said how long was the whole. process from well it's been going on. since since my daughter was one right. when she turned one yeah [ __ ] when. that's when we separated I'm sorry dude. that sucks yeah it's is it done it's.

it's done it's done that's kind of what. so no more money needs to go into this. well as of right now it's paused as of. right now it's paused there will. probably be a time so it's not done it's. paused paused you know probably for. longer than sooner what does that what. does what does that possibly even mean. well I'll need another attorney but. probably not you know not for another. year for one a year so this is this is a. ceasefire situation this is this isn't. even like an armati yeah okay uh.

and then how much more are we expecting. on top of that for legal 36,000 you said. yeah well it was just over 32,000 just. over 32,000 okay are we looking at. doubling that no it's it's it's because. my daughter was born in uh in Denton. Texas so it's an inevitable thing I'll. have to do man okay yeah and I get it I. mean I don't have a kid they're stinky. and smelly and stuff like that but I. respect you know so but if I did have a. stinky smelly thing i' I'd pay every. cent necessary well we were like like I.

said I was I was debt free and she was. just she's just she's in school now now. she's enroll in school and she need she. had to get to the age where she had to. be in one place all the time so it was. it just kind of had to happen no I get. it and I I would have spent every cent. necessary to get full custody as well so. I get it it was a lot of money clearly. we didn't cash flow basically almost any. of it right I mean no and it was the. weird the way they do their billing so. to retain the attorney I had to put up. $7,500 up front just just boom right off.

the bat and then you get paid basically. every or you pay them every two weeks on. top of that is how it works so I mean. those bills could range from I mean some. of them would be small if they didn't do. a lot of work they'd be well were you. making as much as you are now um well. when I move I moved into my apartment. which is where I'm at now in in April. and then I started taking out all this. money like right after that so you said. this has been okay yes you said the debt. since April but you said this has been. going on for three years why we well.

we've been we've been separated and I I. fight fight the. litigation so a year. so okay expensive yeah yeah yeah so what. 5,000 probably going to be $5,000 well. then we should save up which which is it. there's no like deadline that I have to. that's just the recommendation from my. attorneys to get it transferred as soon. as I can the recommendation for me not. an attorney is for you to hit subscribe. because we're trying to get to a million. subscribers thank you to everyone who. has subs subcrib so far love you all.

truly U thank you for being here I. really do appreciate it I'm sure people. will relate to the situation out there. who are getting into the topic I haven't. seen as much so I figured it would help. it's it sucks yeah cuz clearly I mean we. immediately borrowed we're at sitting at. a balance of. 14,562 on a personal loan at 99.49% so. we got some death over here well that. was the first so when I when I you know. kind of first hired this attorney uh I. knew it was going to be $7,500 to put.

down and I my logic was you know. thinking that it would hopefully cost no. more than. $115,000 just total over the yeah that's. that's what I was I was hoping the whole. process would cost about 15,000 and I. could well what what what gave you that. idea you said hope I mean we don't go. off hope did you ask for some guidance. and well I I I I mean I told my attorney. you know I said I've prepared this much. you know funds for this process do you. imagine it going over and they're you. know like an attorney does it could or. it couldn't you know just pends yeah um.

do you have a what's your car situation. my car's paid off thank goodness because. adding another minimum monly payment to. your thing buddy if we're looking at our. if we're looking if we're looking at our. housing total and then this this minimum. monthly payment of. $1,281 and then $1,754 for rent our. money's gone well that's the the minimum. payment on this loans actually $400 a. month but I got I got behind but I just. got caught.

yeah I just got caught up though on what. you get behind and what's going to. prevent us from going behind in the. future well I got I got behind in. October. because uh just I got the last my you. past you. $82 sorry sorry go ahead no it's it's. well you know basically the LA like I. said you get you get build bi-weekly. from the attorney and I mean so 200. bi-weekly no no it's it can be I mean so. basically sorry sorry yeah yeah the. bills are B bi-weekly with the attorney. which are PA right now but the in that.

particular month I got hit with like one. $6,000 Bill and then two weeks later. like a three and which you didn't put on. sometimes it can be hard to keep track. of all your finances it's easy to lose. track of what money is where how much. money is in your account and who you owe. money to that's why today's episode. sponsor Sofi is here to help Sofi is a. mobile first personal finance company. that can help you Bank borrow and invest. allinone app if you're looking for a new. budget track app Sofi makes managing.

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they are giving one of you a grand prize. of $5,000 all you have to do to enter is. to sign up for free credit score. monitoring with Sofi by scanning this QR. code or visiting sofi.com calb insights. by clicking the link in the description. below which I no which which I did for. for the most part but I I ran short on. you know I ran short on everything that. whole month so it wasn't allp put on. debt well cash well some some I mean. some of it but hard hardly any of it was. like cash flowed well what I'm trying to. think is if it all of it went to debt.

that didn't then affect the actual cash. in hand until minimum monthly payment. started so it shouldn't have put you. behind on this well no I'm saying like. like in addition to like all my normal. bills for the month like you know. including the debt minimum monthly. payments is like over like $3,000 no I. get that but but I had but I was saying. mon thing yeah but I had to like you. know I you know I just basically. completely ran out of funds between you. know the Music Company you work for that. does the lessons is that W2 or contract. uh it's cont contract with them and I I.

don't actually do my lessons through. them my lessons is my own business okay. uh okay so everything you do is. self-employed for yeah yeah pretty much. have you paid a single sent of taxes uh. well I I'm good on my taxes for last. year because I had a lot of W2 income. for last year this next year this next. year I've got W2 income. for four months out of. 2023 okay but I'll probably end up. paying in a little bit of taxes uh a.

little it's not going to be crazy it's. not going to be crazy but I I listen if. we're getting behind just because just a. little hiccup a little hiccup for a. month gets us multiple payments behind. then all a sudden imagine if any kind of. tax bill comes to now we have full. custody we have dependence we have some. tax benefits that come with that it's. going to help it's going to help but if. anything comes what just scares me is. like almost at this point if like $50. comes owed it's like that is enough of a. pebble like it's like you just sprinting. along in a little Pebbles there but.

somehow you just completely trip over. there and it becomes a Looney Tune thing. yeah yeah yeah it's crazy so that that's. what scares me well it's I mean with. with the music stuff I mean it it how. many hours a week are you working right. now music stuff I I probably average I. probably average 25 hours a week yeah. yeah total across everything ac across. everything no that that's not an option. that's not an option says your kids in. school right yeah it's not an option. yeah you're doing 50 hours a week I'm.

sorry I hate saying that and I know it's. easier said than done but like that's. literally an an option if we can if we. can barely put food on the table right. right it's well it's just tricky because. the jobs that I you know that I would. like to get I'd like to obviously. supplement with like some hourly income. in the morning when she goes to school. sure go to a coffee shop but yeah but. but I've got my like my lessons that I. teach they can start as early as noon so. I could only but but if a job is not if. aob if a job is not making and what we. need to survive that job is more.

becoming a want than than an actual. career sure if you're with working it. sounds you might be with work if these. if what is necessary for you to do your. job the way you want to do it is. becoming more of a want then you're. around with work and that's not. acceptable right we got bills to pay we. were falling behind we now have full. custody it is no longer a choice. unfortunately and it sucks it sucks but. it's no longer a choice well I I'm just. struggling trying it like you know I've. had you know basically been averaging.

between like 3500 a month on you know my. low average months as high as 5,000 a. month on like my really good months and. I don't know what I can like if I. dropped everything I was doing right now. musically to get an hourly job I don't. know what hourly job that would work. within the schooling hours that will net. me that much money okay you see what I'm. saying well kind of uh so cuz I like I I. Char it cuz I charge you know either 65. or 75 for a 40-minute lesson so it's a. good chunk of money for a small amount.

of time what's your support system here. in Austin I've got a really good support. system here tell me about it well I've. got I've got my sister and my dad that. Liv here a couple friends that have kids. that I can you know lean on and then. family that lives in San Antonio that's. just an hour away can Papa Lester. babysit yes he can he can babysit I mean. we've answered some of the questions. there again don't like it everything's. every part of this in in a 30 to 60. minute conversation is always going to. be easier said than done there's going. to be more complexities that go into.

every single word that is said right but. if you know watching post after school. for example I'll just talk about my life. my parents in order to survive. especially when younger when there was. no money because they had me at a very. young age I didn't see them right after. school I was picked up from Grandpa. Grandpa then watched me until you know. six or something like that and then I. was picked up yeah that might be what. the options are it might be a 9 to-5. type job you know we might be working. customer service you I I see sales on.

you we might be working in sales we. might be working $25 an hour being you. know an assistant manager at Jimmy. John's or something you know right right. right we might be working the kid might. sleep at at Grandpa's place overnight. while we're doing like a third shift. type thing and that sucks again sucks. I'm not saying any of this is thrilling. but when we literally can't pay the. bills it just becomes not an option and. yeah well I mean and I'm I'm looking. I've been trying to find like that. overnight Gig if possible because. because it's kind of like the only ship.

that's available to me at the moment. because I want to keep my mornings. available to go work out at the music. store well I've said this a million. times on the show and we don't even need. to talk manager position I know the. 24hour fast food places are desperate TI. are overnight specifically positions in. Austin you can't I can't go get my MC. nugs without them basically saying like. please please apply for a job I need you. please right right right I no I I was in. that scene for a long time I was in.

there for a long time and I'm not saying. I want you to be there for a long time. either but just to pay the bills yeah. and I know I don't I don't mind any I. mean I'm open to all the suggestions. it's you said you've been looking for it. why have we not taken it well I was. originally I was trying to my dad said. you know he was like I'll watch her. overnight on this day and this day and I. said okay well I'll go get like an HB. overnight for those two days and they. didn't want to take me for those two. days but it wasn't the I you know I'm. trying to like there I can really only. do like three extra nights you know in. my in my schedule oh well crap I don't.

think actually some someone I need. someone that would basically take me for. like like three days max overnight only. because I need my mornings to be able to. go help out at the music store and I and. I have at this point I've got I've got. 20 plus students that like I see. regularly so that's great but again that. becomes a want if we're not able to pay. the bills which I mean I just feel like. it's making more I just feel like if I'm. already making close to like you know. between and five5 $25 an hour 40 hours a. week gets you $4,000 a month okay that's. more than you're making okay.

substantially no but in in your life. right now it guaranteed extra $500 a. month is life saving yeah yeah I agree I. agree let's get through your deaths and. we'll continue this conversation okay. but yeah 14,5 60 yeah that's a lot the. interest rate was death now we have some. credit cards we're going to go through. the credit cards not very fun what I. will say I'm at least Happy on the a. credit. card never mind I'm not going to hold. that I'm going to wait till I get to. them yep you're not spending on this.

credit card yep yep as far as I can tell. discover we have a Discover it at $4. 4,249 absolutely thrilling fun exciting. woo it's awesome with a $99 minimum. monthly payment minimum monthly payments. are going to be what murders you. essentially MH looks like you put a. little extra towards it but then we had. $79 of or $78 68 of Interest a crude. with 152 yeah cuz this is new cuz 152. this year so far so that's going to be. starting to get racked up very soon y so.

22.2 4% interest okay uh cap one quick. silver we are at New Balance of. $448. 3.62 what's Wild just how recently these. have just been put upon you and I'm. sorry that sucks for again for the sake. of the kid I think anyone and everyone. would do anything for their kid so this. is at least understandable so sucks I'm. sorry like I was I was sitting pretty. decent you know right when I right when. I moved into my apartment things were.

things were very I mean I knew it was. going to happen but I I was making like. well you signed up for an apartment. that's like over 50% of your take home. so I wouldn't have done that anyway well. no no but I mean it was I was approved. you know because the last three months. like they had to take a snapshot of my. last three months on my bank statements. because I didn't you know because I'm. self-employed um and I took it to a CPA. to have them do that and it was saying. and it said that I made over I had three. consecutive months of like just over5. ,000 so I think I was I was over like.

the like the 2.5 they required to be. over the income limit so gotta I mean it. was when I moved in it was like okay but. the the attorney bills just kind of just. started racking up $154 minum monthly. payment there that also hurts with. making the minimum monthly payment than. $109 of Interest acre which just gets us. really no progress and $512 of Interest. has been ACR for us this year so far $10. of fees was this like a startup balance. type transfer fee. we miss a. payment um I don't oh wait uh Cooks over.

I don't personally have the cooks over. that just might be a B for them I don't. believe it does but I'm not sure and. honestly I don't really care 29.2 4% I. care about that that is death that's. Insanity okay this one's 0% interest but. we're putting money on it yeah the Wells. Fargo we're around ring the Wells Fargo. wagon right into a ditch of death yeah. yeah this is this is for some of the. last um or for some of the bigger.

attorney bills that I got yeah cuz what. what did we put on here was a balance. transfer yep and $51 payment even though. the new minimum Mony payment is now it. should be like 68 or something uh yeah. 68 I was looking at the wrong thing and. this is now at yes $. 6,784 38 y rough y any other debt that I. don't see. no that's that's everything $ 23,24 625.

of death. debt yeah yeah yeah it's rough living. and I'm sorry yeah it was um it was I. see you open to selfi thing which is. great I mean it's what I use you know I. talk about it in every videos well I got. it to try and get the um but with the. high interest that I mean what what what. is it now 4.6% you're not going to beat. it no no no I mean I I got it just. because I wanted to move away from Wells. Fargo but I I don't think if you're. self-employed you get the the high the.

high yield rate what do you mean no if. you just set up direct deposit you just. well well I I don't have like a. qualifying direct deposit so what you. probably need is a business checking. account and set up direct deposit yeah. that's you don't you have you do you. have an LLC I don't have an LLC or. anything like that yeah $41 sitting here. terrifying now I don't know if you get. gas or taquitos every second of your. life but it's just like it's it's. probably a good half and half split of. because I do get you kidos and. okay Jim fully supportive YMCA is this.

for the kid well it's because they do. the after school after CARE program at. her school that she goes to while. I that that's the thing is she you know. the after Care Program only covers her. expensive the Aftercare Pro well it was. it's much less expensive than it was now. I was paying almost 1,300 a month in. daycare oh yeah daycare is ridiculous. but this is still very expensive for you. yeah yeah and Grandpa can't watch right. after school no cuz he he's got two jobs. as well um which is fine I I have I mean.

my supplemental care is I mean this is. the cheapest daycare than probably most. other parents are getting yeah no it is. it just still sucks for your position. but it is what it is yeah it's B you're. you're making more than you're losing on. this by working those hours that she's. there so um Uber I don't think we're. ubering I don't think we're Sonic. drive-thru when we can't pay the bills. when we're falling behind on minimum. month payments we're not going to sinic. drive-thru we're not McDonald's what. is that was that was the old daycare the. old daycare that was just dragging you.

and the uh YMCA comes through here a lot. second life I get wanting to go get her. probably a couple scoops of ice cream. from Amy I'm sorry no we probably put it. on our grocery bill to get like a dollar. thing yeah yeah we do that. Sonic Ben M out money Spotify we listen. to ads right now and also why was it 18. bucks isn't Spotify like 10 well I do I. have the family plan in my but I I use. it for teaching a lot when I'm teaching. songs to kids right then and there and.

it kind of it's I I I do use it a lot. for well you don't use $25 of dominoes. for teaching so Kido and Amy's Ice Cream. smoke shop just a bad addiction in. general I want you to be around for a. longer time for your kid you just got. full custody let's not let's not be. doing that yeah trying to be de-stressed. I get that let's d-stress. with a rock a walk around the block yeah. I agree I agree you got something.

through Square so you purchased through. oh well they so they're they uh I use my. I use like a digital booking with them. so like my to use them yeah they keep. like cards on files that I can like get. LC calculate your business expenses. right off against okay and probably a. vending machine of some kind even though. your bull is not insane when we have. zero doar we don't yeah well it's Fargo. $15 so we have like no money to our name. name Ma Netflix I mean they don't have.

anything on there anyway taquitos. torches we're certainly not doing. torchis f m out 664 in savings is that. correct is that still there um no no. it's not what's there I got well in in. my whole Sofi right now is. $1,700 17 so it went up yeah yeah yeah. oh that's everything everything I got. you're leading me in a different. direction I appreciate that 1,700 that's. good now this is good so is this like a. solo 41k what are we looking at here.

yeah this is just my retirement it might. include there's there was a brokerage. account in there as well they only only. had like 20 something bucks in there and. they're like in the fality 500 which so. we're sitting at a total in there of uh. 4,855 mhm so when it comes to your. overall spending yeah 41% of your. spending what went out was $. 4,231 uh but again average of$ 3500 math. isn't mathing but of your total 4,231.

that went out 41% of that went to. savings meaning you know obviously over. 50% of the actual income goes to housing. not savings housing uh money going to. debt was 7.7% while we're doing that we. still had 1.3% go to uh subscriptions. about 5% to uh to. kidos food and additional. 3.2% Transportation well Transportation. that's a lot of that was to kidos that. we counted as trans ation cuz again you. said it was more 50/50 so about well cuz.

I dri well I drive a I have to meet my. daughter's mom in uh West te I I drive a. ton yeah it's a ton it's a ton was. probably ises that equal to ketos oh. well I'm saying it actually might be. more gas than tequito probably okay now. the other large purchases about 15.8%. ATM 246 who knows what that went we know. AMC we get then another 172 with draw so. what's crazy is other than the. percentages of the housing your.

percentages on everything else are not. absolutely wild they just don't make. sense when we can't afford to survive no. I know I mean that's that's what like. before all this started I was like I. mean I've always been fairly you know. where I've always lacked I guess is. having a a decent emergency fund. obviously but like I've always bought. cars in cash never carried balances on. credit cards and usually live within my. means but well just like every guest. you're going to go through the budgeting. program we're going to obviously give. that to for free and I need you to do. that because these percentages are aut.

whack and we're going to get you on the. right yeah well cuz I was you know like. you said the 50 30 20 I'm like in my. position that means I'd have to be. making like $7,500 well 50320 doesn't. make sense in your situation anyway. because you have a lot of bad debt 50320. applies for after debt and then a. situation to situation so you're going. to go through the program that talks. about you know where are you what bucket. do you fall in and then you're going to. go build the budget that makes sense for. your situation so you're going to go. through that but let's build a temporary. one just so we can have at least an idea. of what what your budget might look like. what your life might look like yeah yeah.

how long it might take for things so. rent what's that total number. $1,700 that's Insanity yep utilities uh. utilities are about $7,500 each month no. or no no $75 $75 you mind have I pulled. the list of my itemized bills yeah CU I. know it's a lot okay yeah go ahead yep. so YMCA that's 38 a month or or yeah a. lot more well like the 38 a month covers.

like the membership that like just the. basic membership but then those charges. for like $92 or for the after school. care okay how often do you have to do. that we have to budget that in it's a. it's n well it it averages to about $360. a month because some some weeks it won't. be there because of school holiday plus. plus this plus this 38 or is that. included that's included yeah all 360 a. month yeah. okay okay croch you put yourself a 400. you feel comfortable with that with the. kid yeah I got two cats also so that.

that's kind of what I've been averaging. I've been keeping my receipts I'll put. 50 for cat yeah yep uh gas you do 160 is. that true um I want to bump it to 200. just okay 200. Spotify oh well if you're using it for. business I will uh I I I I do use it. who's the family plan who's using it. it's my dad and my. sister okay I can you have them send you. eight bucks probably unlock that. probably I'm gonna allow 10 for you okay.

and they need to pay. up that's right this everything we can. do every little thing we can chip yeah I. agree I agree car and rentes insurance. is only. $65 well I cuz I I own my car and I just. pay for the I just do the liability with. both of those together yeah phone 98 m. is it just you yep I'd recommend. switching to Mint well I'm trying I need. to pay this phone off and switch to a. cheap plan that's what it is so the. phones put in there yeah we I mean we.

put mint in our resources cuz it's just. terrible phone it's a really good way to. yeah well this phone is weird it's the. weird fold terrible internet 65 then I'm. going to do toll paper everything else. for surviving on the household things. for school all that stuff those extra. little things Necessities that pop up. putting in 100 uh and that looks like it. so we have rent utilities uh after YMCA. uh food cat gas Spotify insurance.

phone. internet tollet paper now we need your. minimum monthly payments for debts yeah. y now you said the personal loan is 400. normally it's $400 a month yeah that. does help uh 721 for debt that's it. nothing else there's nothing else that. can fit in your life right now it just. doesn't exist man we got to get you out. of this debt so we can start making sure. we're on track for retirement so we can.

make sure that uh the future of your. life is not relying on your child right. and I I mean and I will say like I I I. have been you know thinking of ways I. could you know squeeze other hourly jobs. in there but I I have been getting more. business especially over the past like. but if you make more money that's great. yeah yeah I'm just saying it's I'm just. saying I'm on I'm on a I'm on an uptrend. from what I can see well 3,844 is what. you need to survive and we bring in 30. 500 and then we need to set money aside. for taxes probably so yeah yeah no I no.

I I know it's I mean for me it's like. I've I've i' been at those months where. I've you know kind of hit five and just. over five so I I know it's possible so I. think it's part of me you know just are. you interested in sales so when I'm. setting aside money to save for a new. purchase like a car or a home or taxes. or whatever I'm saving money for like an. emergency fund I'm using Sofi it's a. 4.6% yield on my money and it's just. absolutely incredible why not take. advantage of that free return on the.

money that's just sitting there and. there's great bonuses for signing up all. the way up to $250 if you sign up using. the link in the description below it's. literally free money I use it you should. too am I insert well I do I could. probably gift you like a COR cous Tech. sales thing and we could go get you. through that in a few months and then. try to get yourself as a tech sales job. and make the money based on your own. drive right. right I mean i' I'd be interested in it. I'd be interested in it I don't know we. we we obviously just need to bring in. more income even if on a uptrend we need. to be on a major uptrend well I mean cuz.

in for for November right now I'm going. to probably finish out like I got a big. day on Saturday I'm probably going to. finish out with over four for November. okay but that's not acceptable I need. you to be five minimum five minimum at. least allows us to four basically breaks. you even right with any amount of wiggle. room that always exists in life four. breaks even I need you to go to five so. that one we need to set money aside for. taxes two I need you to make progress. stars' debt yeah even if you bringing an. bringing an extra th000 bucks a month.

post setting aside money for taxes that. still takes over two that takes two. years yeah two years to pay off the debt. I don't know because that is extra cuz. really bringing 4,000 right I mean let's. to say with your where you are in your. tax life and income I still said a size. 600 a month00 yeah so that's 4,000. coming in which is more than you. normally make and then that still brings. us down $600 which puts you in the whole. minimum. minimum like. $444 right right so what are we making.

the difference the I think I think and. again this sucks I think the. conversation is 25 bucks an hour 9 to5. MH is Grandpa willing to watch the kid. on the weekends how much of a life does. Grandpa have he can he can help out on. the weekends okay then I think we're. also working a weekend job somewhere or. we're driving Uber eat or whatever and. then I think in the middle of the night. you know a few nights a week if we can. unless it's starts to bring in yourself. the dangerous levels of sleep deration.

which is not acceptable but trying to. pick up a couple third shifts if we can. somewhere maybe it's a couple days a. week and we just interview everywhere. everywhere that are desperate to hire. for third shift and we just say I can. only work this these couple days a week. okay some might turn you down some might. you accept it if it's if they're. desperate enough right right I need you. to get to $5,000 a month bringing in. post setting money aside for taxes post. taxes that that's the that's kind of the. I was kind of looking for the number. that I should be hitting that that is. the number because I need you to get to.

pay off this debt yeah in 2 years we. don't pay off the debt in two years if. we okay right now I mean technically you. can't even make minimum monthly payments. right now and still pay your taxes so. the taxes come up then all a sudden we. fall behind in payments as you were. falling behind in payments on that one. thing already so we just get to this. reoccurring cycle falling behind. payments and we just never make any. progress then you're just dying in. poverty and you're working through your. 80s and 90s and that's not what I want. to see and I want the the responsibility. of your future life to be put on your. kid I want your kid to have their.

college paid for if you want to do that. I want your kid to be able to work their. life and not have to worry about if D is. able to make the bills due that's what I. want the way to do that now is to say. okay what I want to do for a living. isn't necessarily what's going to take. priority in this exact moment for the. next couple years we're going to go make. money. immediately Tech has been struggle in. terms of like you know product managers. and uh Engineers everything that other. than that we're still in a you can at. least go get a what some people would.

consider them a beneath them job right. now anyone can go get that to bring in. more money at least in Austin can't. speak for everywhere but in Austin for. sure and a lot of those start at $2 $25. an hour because it's still a competitive. scene here in Austin yeah and I I mean. I've got I'm very familiar with with the. service industry I mean it's it's is. just tricky just cu the the the kids. schedule and when you know trying to. figure out you know who's going to watch. than when you're working type of deal I. mean cuz I know I mean I know I can.

average I can probably like average 45 I. was you know kind of probably sitting. more close to 45 for a good while. leading up to me running this apartment. um what changed well I mean probably my. the fire to kind of keep looking for. leads was kind of dwindling as the legal. situation really kicked up I think. that's just been the real kicker is um. just trying to manage the weight of all. that well did you kind of just shut down. I mean not even shut down it's just more. more like doing you know rather than.

kind of trying to generate more leads. from new students just kind of barely. doing the ones that I had scheduled in a. week and how do you generate New Leads. uh well I I'm affiliated with the music. store and so they pass on my cards there. and I also play I play out uh at a. couple restaurants in town that let me. put my cards out and I kind of have. worked with some of the local elementary. schools so and a lot of that is like. kind of turning over really good like. I've started a lot of new students this. particular week mhm so it's it you know. from what I can see and the students.

that I've got on the books for the next. two months it looks like I'll I'll be. sitting at that four range for at least. the next two to three months uh and then. when the spring kicks in all the wedding. stuff the wedding band gigs kind of. really pick up and I make really good. money spr like obviously I'm I one I'm. in the slow it's like the slow season. and the litigation happened at the same. time which we just like slow season we. pick up somewhere else though yeah yeah. no so that's that's where you know in. this I mean it all comes back to just. needing a proper fund one thing I did. when I was doing composition lessons.

throughout College uh to middle school. and high school students uh it helps. having uh you know a relationship with. them but um being able to just get get. in the contact of the different like. band choir orchestra directors here and. like what they did is they allowed me. even ones that I've never met before. like I just went around in my overall. metro area up there of Kazo and I came. in I was like I'm teaching lessons. what's up you know if you want to learn.

this put your name on your way out on. this piece of P piece of paper I'll. contact you we can do some lessons and. then obviously you know they have to go. to their parents and can I do lessons. and all this stuff but I at least got. their contact information or their. parents I think I got their parents. numbers or something like that and then. I reached out to them depending on if. they're middle school or high school but. just like that that's an extra way just. to get. some cuz you have to do after school. right cuz where all like all my main. hours happen between like my earliest.

lesson will be like 12:00 is my earliest. lesson depending on the day uh well I. teach adult Learners too yeah so I mean. my earliest lesson can be as early as 12. my last lesson ends around 7 o' yeah. what's your kid doing at YMCA she well. they the YMCA goes to her school and. it'll like they'll watch her after. through seven though uh through 6:30 so. I have to have someone that will you. know it's who usually does uh either my. dad or my sister like that's that's good. I mean for me like I feel like none of.

the hourly jobs are beneath me I'm just. kind of still looking for looking for. the right one that will fit in my. schedule but I also know it sounds like. you have what uh usually do those. programs have before a school like. breakfast programs as well sometimes. they do they uh no not at her particular. she already starts at seven sure no cuz. she she already starts at seven starts. at seven okay so we're looking 7:30 to. noon 7:30 that that would be yeah that'd. be kind of where I'm to get which I'm. not opposed to in the slightest I dud. even watch dishes like a bre a place.

that's doing like breakfast it's just. like I don't want to I don't want to say. like I try I mean I don't want to be. like I want to keep my schedule open but. it's like you know I might get hit up. for like a random day gig that could be. $300 for a couple hours which well if. that happens definitely don't do I'm. sick oh sure definitely never do that I. I don't know no yeah yeah but it's like. you just because when you're grinding. and you're in the hustle man you just. got to figure that out and usually a lot.

of those jobs the hourly jobs are like. okay you can take a shift off if you. find someone to cover it yeah so like. just I mean grind like everyone else has. in in the industry I mean we all did it. yeah yeah it's uh it's I've definitely. been put through the ringer for sure. when I had a concert or something pop up. when I was doing you know composition I. would I was desperately calling all down. the list of Jimmy John's delivery. droopers like yo I got the single on I. can't get out of it but I need someone. to cover my shift can I do it yeah maybe.

I'll throw in an extra you know 25 bucks. or something just as a gesture you know. just like please come in I'd really. appreciate it I'll cover a shift of your. in the future there's things you can do. right right right I just don't want a. bunch of excuses as to potentially why. we can't do I need us. to reminder 3,844 Survivor averaging 32. to 35 right now 32 to 35 I've been. generous and did the 35 sure we can't. afford to survive when we have a kid no. no that's no that's facts that's facts.

so I mean at some point we just got to. put reality over the desire of wanting. to keep it open just because sometimes. the $300 thing might pop up think we're. going to make well more than that having. a consistent stable thing sure now buddy. get out of debt that eliminates $721 a. month moving to a place we can afford. that if we can I mean I lower your rent. by $300 get rid of the debt that gives. you an extra ,000 a month that means you. need uh 2,800 to survive and bringing in. 3500 doing what you're.

doing that allows us to essentially well. make sure we're taking care of taxes and. at least allows us to put what 5 to 10%. aside for retirement like that's a step. in the right direction well I mean I and. I would love to definitely reduce my. rent but now like I'm I'm zoned for. where my daughter goes to school and you. know that's the area I'm going to end up. staying for a while so it's I'm I mean. it's not the most expensive area in the. world but I kind of I think I I probably. have the cheapest deal for for me and. another person what do you mean you and.

another oh the kid yeah yeah it's like. the cheap the cheapest for the amount of. square footage that I got make sure it's. not yeah do it like here show me what. part of. town no one gets to see except for. me okay I have two friends that live up. there yeah I mean my my daughter I mean. she's got to have her own room and and. well it's a one-bedroom apartment so she. gets the room and that's kind of the. place where I mean I I would rather like. increase that's a one bedroom apartment.

in there area that's expensive for that. area well I mean for that for that area. but I like to I I want to stay close to. the the music store that throws my. business card that's fine but I. personally know people that live in that. area and you can have yeah I we can cut. the rent by at least $200 yeah for sure. and I I I probably could have but I mean. like I said I was make I was making you. know really good money for the time that. I was applying and seemed like it was. all right if you make the money again. and if it's 30% of the income that's. fine again all I'm saying is if we cut.

rent by $200 to $300 we get rid of the. debt minimum monthly payments you can do. what you're doing now and scrape by. you're not meeting the retirement goals. I'd want but at least puts us in a step. in the direction that's just showing how. important the next two years are yeah if. we just if we stop around with work as I. call it and we get the actual income up. to $5,000 post taxes that gets rid of. debt in 2 years fully funded emergency. fund probably 2 and 1/2 years you know.

total 2 and 1/2 2 and 34 of course get a. one- month emergency fund before you. start paying off the debt so I could Pro. I could probably I have probably enough. instruments and equipment that I could. sell for a one month emergency F. probably absolutely no finck with. everything man absolutely because if I. get you to a point where uh you're fully. debt free and we're hitting retirement. contributions you can get nicer. instruments in the the one you're going. to sell anyway this is a temporary thing. of two and a half two two and 3/4 years.

and then your life has changed before. you're even 30 before you're even 30. what is that so many people consider 30. being like a child these days so like. before you're even 30 your life has. turned around if you sacrifice now work. pretty much every second of every day. that you're not you know you need to be. there for your kid that was kind of my. my soft goal was like you know I looked. at this situation was like okay I know. it's U but just got to get it done by 30. is kind of like my soft goal um and and.

just kind of also the order of how I. should attack these things because it's. obviously all over the place you got the. 9% on that loan the 0% random card the. the 30 couple 30% I just so you're right. yeah what I would do in your. situation is I would. actually it depends so if you know. yourself okay if you know yourself well. and you have struggles sticking to. things and you need reward Bo systems. along the way that's where I would do. the classic standard what most people do.

snowball or it's smallest the largest. because you see yourself making progress. you get more money added to your minimum. monthly less less money you're going to. minimum monthly payments and you can. throw that towards the debt what I would. do if you know you can be disciplined. and sick to things in this situation for. mathematical purposes I would actually. do Avalanche of starting with the. Capital One Quicksilver then the. Discover card then the personal loan. then the Wells Fargo unless the Wells. Fargo kicks in before the personal loan. is gone then I would switch to the that. still has 20 months to kick in it's so.

it'll be close but so I would do Capital. One discover personal most Fargo to. attack the interest rates right right. right that will technically save you. more money that's what I would do if you. know yourself to be disciplined and. being able to stick to it but if you. need those reward systems and the. feeling of more progress then just do. smallest to largest which in this case. will honestly be relatively similar it. would be discover Capital One well as. Fargo then personal loan okay and if I. make if I make over. $55,000 doing you know self-employment.

you're not opposed to that if I'm making. over five no dude make the money any way. any way possible I'm just saying what. you can do like starting right now now. if you for sure it's $5,000 after you. sent after tax money side which I mean. with the tax credits you get I mean I. know I could probably really benefit. from all kinds of different deductions. with the kid and if I get an LLC like I. mean that's why like I wanted like after. December I'm going to get my LLC. well this is going to help this is going. to be used as the pass through and it's. going to help you keep organized but so.

probably like 5,500 at a minimum needs. to be what's bringing in total I mean I. can I mean I've I've brought in that. kind of money before and I know I could. bring in that kind of money again now. that this but if self-employment is not. sure no sure sure of course of course. after that point then we're probably. doing 50 25 25 I need you to catch up on. retirement like I'm glad you've least. gotten it started but obviously we have. ground to make up and we've been putting. it on pause 25% going to retirement.

minimum I would try to cap needs at 50%. might not be able to so if it's at 55%. then all of a sudden you only have 20%. for once what we're not sacrificing at. all is retirement it's minimum 25% on a. monthly basis is going to go to her then. wherever you are after your wants or. after your needs that's what you have. left over for your wants so if it's 60%. going to needs then you only have like. 15% going to wants. if you cap it a 50% lovely then you get. 25% in wants if you want more wants.

you're not taking it away from investing. no sure sure you find a way to either. increase income or decrease needs those. are the options yeah but it's two years. how how how like people walk away and. they'll make progress for a few months. because they get a fire lit under their. conversation two years is a long time to. maintain no I mean I've been I've had a. fire under my the past you know two. years in itself just getting to the. point where I'm making this kind of.

money just doing lessons I mean that's. been and I'm still very motivated to. eventually build it up into a fullon. like Lesson Studio you know that be. great obviously buildings are way out of. the. question but um you know it's kind of. thing I know I know it can happen I know. that I have been there before with those. with those kinds of numbers um like I. said it was like the the slow season. happening at the exact same time is the. um the litigation was the real kicker. yeah I mean as far as this so you're. saying I should do the Avalanche to the.

highest interest if you know you can be. disciplin to it okay if you think you're. going to struggle with that do the. snowball okay I just got to try and find. a um find a morning job is yeah is my. thing it's just it's just tricky man the. um the kids the kids stuff door Dash. some breakfast and lunch even well my I. I I did want to get into door and I will. probably eventually when I get a. different car but my car is um it's PR. it's 2003 Toyota Toyota Avalon okay.

miles 277,000 miles condition oh it's. she's running like a. champ okay so obviously that's a that's. a part in the next two years it might be. an expensive repair might be coming. maybe the now I know Toyota in general. that does have a better reputation for. last and longer yeah but when you're. approaching 300,000 hours and in then. 300,000 miles the next two years this. might be something we're considering in. this situation the necessity of having.

to get I do kind of have the second car. somewhat linmed up I may receive one. from a family member yeah a new a newer. one in good condition another Toyota. year uh I believe it's a 16 that'll help. and then just sell your car yeah and put. throw that towards the debt yeah yeah. that would certainly help I mean it's. it's looking like it's looking like you. know from now till uh till kind of. through the end of the summertime I'll. be um with what's on the calendar with. gigs and lessons I'll be more between.

four and 5,000 a month uh till the at. least till the end of the summertime so. any final thoughts any final. questions uh I guess get married before. you have kids or don't or don't I don't. know for his hammer Financial score when. it comes to spending in a budget it. wasn't good for his financial situation. in fact his real budget it was just out. of whack it doesn't exist because. there's no money to make the payments. due so it has to be zero out of 10 I. just can't give it anything higher than.

that debt certainly not the worst but. definitely not even close to Good 2 out. of 10 emergency fund had about a tenth. of the way there so 1 out of 10. retirement he started very behind for. his age two out of 10 you know what. let's say a Solid 4 out of 10 give him a. little little more for early starting. and getting to a few thousand bucks in. there real estate Zer out of 10 that's. going to be a 1.5 out of 10 for his. hammer Financial score make sure to. check out every resources Linked In the. description below they what I use or. would use in personal situations. including the best budgeting course in.

the history of the Internet thanks to. all of our patreon producers for making. this episode possible if you want to. participate in an episode of financial. audit and you're able to make it to. Austin Texas please fill out an. application in the survey Linked In the. description below you can also send a. link to your friends or family who you. think might be good to be on the show if. you have any questions you can email. casting at cop hammer.com.