Stupidest Debt Someone Could Take Out | Financial Audit

my name is Christian Harrison I'm 24. years old live in Denver Colorado and. this is financial audit so what do you. do 24 years old in Colorado for a living. so my job's a little bit untraditional I. run a door-to-door sales team for. residential solar systems nice and what. are you bringing in on a yearly basis. last year was a little bit of a Down. year as 179. 179 is a down here okay I think a lot of. people would be happy with that down. here what is it what was it before my.

best year is 208 this year I took a. little bit of a risk made a move to a. new city to start the office this year. so like just a few months ago in. November of last year how's that going. so far it's going good it's been slower. than I expected. um Financial Wise It's kind of cutting a. little bit close in terms of where I. want to be and the money left in my. account but um it's going well and I. think this year will probably be the. best one yet same products being sold.

just different locations actually no so. it's a new product I was doing security. systems then we switched over to solar. same company though just different. department. Colorado's not cloudy no it's the. sunniest one of the sunniest cities in. the US they get sun 300 days a year all. right I'm good for them okay so. from your perspective. what do you think your financial. situation is right now and then give. yourself a score zero out of ten yeah so. I mean obviously it's all relative for.

me it's not where I want to be I'm. cutting things way too close in terms of. debt that I've had to take on and. um that you've had to take on. no I guess not have to okay I guess it's. it's weird because I had a down year but. then this year I've also upped my. expenses to the highest they've ever. been so right now I'd give myself like a. three or four. okay yeah so that's just self-score okay. yeah so taking on debt what are what are. these debts we're taking on and why are. we taking them on.

uh well one is a personal loan. um that I took on to do a private Equity. investment. this was. just at the end of last year barely who. talked in what was this what was this. what was this opportunity so I don't. know how much I can say in terms of like. names and everything like that but it's. a medical device company that's gaining. traction amongst doctors in terms of the.

aging and play space. and it's private yes. you're essentially you're uh uh your. venture capitaling. but based on a loan you took out a. personal loan not not the smartest. definitely not the smartest would you. not do it again if you did it or well I. guess it remains to be seen right. because with private Equity it can 10x. 100x or you can lose or you can lose all. your money right so when you do that. though it's usually when you have a ton.

of money and you're like all right I'll. write a hundred thousand dollar check. because I don't care right because it. burns or not but you took out a personal. loan for this meaning you have to pay it. back yeah and it's at seven percent. interest dude so it's like okay well the. plan was I was gonna pay it off before. the end of the year and only take it out. for three or four months it was like a. short last year yes okay and now it's. been. almost a year okay. it'll be paid off it definitely well it.

damn better be I mean what that'd be. terrible if it wasn't paid off I mean. that's like the lowest expectation yeah. it'll be paid off it'll be paid off. before the end of this year guaranteed. okay guaranteed by the end of this year. it better be 179 000 so uh okay well. here's here's the problem though so with. solar when I was selling before it was a. short-term sale. I talked to the customer we sign them up. they get installed the next day for. their system and I get paid the next.

week right and I do anywhere from 10 to. 20 of those every single week and then I. had guys working for me and so I'd get. pay for running the team for being a. manager. um with solar the pay is higher but it's. a two to three month sales cycle okay so. it didn't but two or three months have. passed a few times since you've taken. out this person alone yeah that's true. you either bringing this much money on a. yearly basis or you don't yeah that's. true so it's kind of a.

it's kind of an interesting thing so I. had to pay for moving expenses to. relocate I bought a car which I. shouldn't have but I did because I. wanted to be able to get up the bounds. and go ski. so that was the thing. I need to buy a new car to do that. yeah to go up hills okay but you've seen. the interstates in Colorado I'm sure. right when there's snow storms and stuff. it gets pretty bad okay pretty dicey. okay okay snow tires okay.

yeah I did I did guess no tires those. were expensive too yeah well you got to. get some tires and stuffy things a new. car I don't know so what uh so okay. every few months we get the big check. so once the once the ball gets rolling. once I have the pipeline full and I keep. it full then there's no two to three. month Gap it's just right at the. beginning so I move to to Colorado okay. so we had to set up the office I had to. figure out the market figure out a new. product because I went from one that I. knew really well and I knew how to sell. where'd you move from uh Atlanta okay.

yep so a new product that I didn't know. how to sell in a new place so I had to. learn the process I had to learn the. sales cycle it was slower than expected. at first but right now I have about 60. or 70 K of commissions in the pipeline. good right that's if they all get. installed right now we have some. attrition not all of them yes before. taxes what do we think on average is. hitting your account on a monthly basis. or should we just take this 180 and it's. it's so tough to say because it's some.

months it'll be 50 some months it'll be. four thousand this means you're gonna. have to strictly budget when you get. your. sick boy months you know when you get. those those thick dollars you're. sustaining yourself until that next. thick month comes the next one hits. right yeah so this is very strict. budgeting at that point. simple question do you follow a budget. do you have a budget and I follow it I. think I sent it to you actually do you. follow it some of the categories for the. most part yes.

my food doesn't a budget only work if. it's followed. yeah okay that's true that's true I will. say it's kind of tough because a lot of. my lifestyle is tied into what I do for. work in terms of recruiting and throwing. events for people to come to and hang. out at and learn more about the job and. things like that okay so the business. doesn't pay for those so that's part of. how it works is on essentially almost. running my own business okay so I get. paid this big lump sum but I take care.

of a lot of the expenses they pay for. some of it but a lot of it's out of my. pay are you in a pyramid scheme that's. actually generating you money. no okay no I see this some of the. parallels but now. um yeah you gotta recruit your. underlings yeah well essentially what. I'm doing is I'm recruiting their own. money people to set leads for me to go. close. right and then if they get good enough. then they can also start closing their. own deals but I'm not having to buy the. product myself or sell it to people I.

know it's right that's good that's good. all right let's go ahead and take a look. at I guess we can start with. with checking account all right y'all we. got to talk about something important. data Brokers are making a fortune. selling your private data out and it. goes to robocallers and scammers and. other people who want to know more about. you like where you live but that's why. I'm excited to talk about today's. sponsor Aura Aura can identify data. Brokers exposing your info and submit.

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yeah there's two of them though I have a. business one of them is my business the. other one is personal I'm not sure which. one you have pulled up okay okay yeah. okay. so let's see. bounce on. savings balance forward is that. something separate oh yes. okay I get it so in savings. it actually started at. 5163 ended at.

4989. it's not like a big decrease by. any means but why is a decrease and why. are you taking up 58 bucks 38 bucks 83. dollars usually not a good sign so that. account. um is where I store. my uh security deposits for my rental. property and it's also where I put the. additional capex expenses so when I get. rents I take so my mortgage is 2050 it. cash flows to 2700. so I take the. remainder and I put that in that account.

but last month wait a cash flows 2700 or. cash flows 700. 2700 is a total rental. that's incredible yeah no I wish that'd. be insane what's your mortgage on this. thing 2050. every month that's some cash flow isn't. it 700 bucks that's a bad cash on cash. return at least it's not as great as it. could be but it was I bought it to live. in it and then I ended up moving right. at the end of the year so I bought it in. February of last year for an investment.

property I bought it to house hack it so. I was going to live in the basement and. have people run out upstairs and then. now I just have the whole thing I was. gonna say because like uh like I do. minimum 12 cash on cash return when I. take out leverage for a house and I have. like a mortgage it's like. ninety thousand dollars in it cash flow. is just about that which actually I. wanted to ask you about that too because. you have a couple houses out in the. midwest yeah in college towns how did. you like pick that as your your Niche no. this is where I'm from so I know the. area you do the market new you know. whatever and I have good connections.

there that I can trust interesting stuff. so okay we can dive more into that later. yeah no I'd definitely like to but yeah. so the extra you know call it 700 bucks. or so I just I don't count that as money. that I get I just put it in the account. but I think that month I had a fridge. that had to be replaced yeah because. money only left nothing went in for the. entire month yeah I think that's what. happened that month. a fridge was replaced so you took out. 83.38 for the eight dollars. maybe that was the month maybe that was.

last month I don't know which was that. the previous month that you got there. for February okay no the fridge broke. this past month no I don't know what. happened then okay I have to keep better. track of that so what do we have in here. we have utility bills paying off some. things Journal voucher Journal voucher. well that's you getting paid though. isn't it. that looks like money coming in which. one deposits yeah or uh it says Journal. voucher. how much is it oh it is a cell yes uh.

and then so you started with 1 333 in. here um. let's see. ended with. 992. under that thousand that I like to. see kind of a minimum. same. yeah or a good bit more than that crunch. answer fee. and then just paying off cards Let's see. we have an Amex payment yep. so it doesn't look like you spend money.

on here really this is uh transfers. which makes sense I think that's the. best use of a checking account typically. uh if if where the money is being spent. is being managed well of course. okay well let's look at the business. checking so are you you're a contractor. then tonight okay so you're tracking. everything for tax deductions and. everything perfect so I run I get paid. through an S corp that I have set up and.

then it's a pass-through account to then. perfect my personal account yeah very. good okay so cool I'm glad you're on top. of that so what we have here with. checking account we started at sixteen. thousand that's fantastic. went into six thousand. that's fantastic. bro so a couple months ago it was at. forty two thousand was it a six thousand. so that's scary couple months ago yeah. so that's what I'm saying when with. everything and happening in Denver right. now I'm spending more money than I've.

ever spent before just on my lifestyle. and on everything else and it's also. taking time for these deals to go. through the pipeline so that's why I. said I'd rate myself like a four right. now because I'm making less than I've. made in the past and I'm also spending. more than I've ever spent before so I'm. cutting it way closer than I normally. like to. I'm cutting it closes something. different than what this is this isn't. cutting it close this is draining. so what is it what is it exactly that.

we're seeing go out what did you say you. started at 60 or 40. 40 would have been in October October. okay so within from Fall to spring we've. gone 40 to 6 000. that's not cutting it. close. that's losing 35 000 essentially. so my monthly budget all the expenses. together comes up to about 8 800. is. everything aligning maybe the business. expenses are different are there is that.

being budgeted appropriately not as well. especially your personal okay it should. be well that's I guess that's also a. factor. see it's tough because it blurs the line. a lot and I need to do a better job of. keeping them organized and tracking them. it's good that they're separate mm-hmm. it's not good that it's not being. managed and we've lost 35 000 because as. if we want to consider this like the. business emergency fund okay. I don't know what it takes to run but. with where it's gone in that many months.

that six thousand dollars scares me. yeah I like your number that you said. it's coming in how much is coming in. again let me notate that um so it just. depends on how much actually gets. installed right it could be a number. it's going to be between 60 and 70 000. okay and I'm within how long. should be within the next two months. three months and then we're starting. we're starting our busy season so summer. is when I mean that's when it's the. weather's nice that's when we work the. most.

um so that's why I said this year should. be if everything goes away it's. projected based on numbers it should be. the best year yet. so I see you transferring to uh yourself. paying off some cards Legacy partners. Legacy Partners is that's my rent. so geez your paint weight you're paying. your rent through your business account. so. that's probably something I need to. change when I first when I first set it.

up the justification was the whole. reason I moved to Denver was to start. this office there. so I don't think that's gonna hold up in. the taxes uh no I don't think so I mean. you could probably you can if you do a. portion of it because I do use a lot of. the office space yes it was office space. there you can write that off I have. people over all the time for events and. get togethers and stuff okay we can do. write-offs but I don't think you can. just put your rent on here okay. obviously a CPA would know much more. detail than I do but either way that.

seems a little and then when he doesn't. see you have a one card. 7733 out my goodness that's a lot of. money. nonetheless it's just transferring to. yourself so yeah the pastor makes sense. but we're also paying off that's an. expensive 7. 733 out for a card. yeah when I go through and I I look. through all the expenses and everything. it adds up pretty quick. so what makes sense from here then would.

be okay so we did your personal account. checking account business checking. account see what else we have. so we have a savings a Lotus thing. what's that wait where did I read the. word I don't know well we have uh. like status tracker snapshot something. online savings oh I don't know Ally high. yield this oh this is Ally yeah so. that's it and it has only two thousand. dollars in it which is you know way is.

that not the last thing huh which one. are you saying oh no no no no yeah I was. just saying yeah it's not much uh so is. this considered your emergency fund. it was where I was putting yeah I mean. yes. um and it a couple years ago or not not. a couple years ago sorry the beginning. of last year before I made the move and. had to draw from it and everything it. was at 10 or 15 I think it was up to. eighteen thousand you're making me. nervous accounts are just going down.

yeah it was just going down I'm nervous. I'm glad we're having a couple thick. checks coming but we don't even know. what the Dell looks like yet oh crap. Spark. business. cash is this the one you said you would. want to look at on your that's the. business credit card okay I can look at. that uh the very very recents on your. phone yeah this would be here. the balance when I'm from the statement.

okay well you clearly don't you do you. pay this off every single month. pretty much yeah really yeah okay. because that's a lot of money and I. don't see that coming in. yeah so so that's why the business. account was getting drained so the first. two months or I'm sorry it's not the. first two months the last two months. have been the first time that I haven't. fully paid off my credit cards because I. I don't like paying interest 25 24. whatever it is stupid right we know that.

the problem is as these deals and I've. actually had a couple uh go in last week. I've had some deals going this week and. I have a few scheduled for the next. couple weeks but during the time this. initial 60 to 90 days that it was taking. them to go through the pipeline uh. I have to prioritize like I can't not. pay my rent if I'm 2 000 if I'm two. thousand dollars short on this yes I'll. pay interest but it's not gonna dig my. credit it's not going to get me evicted.

so oh no because at that point then. we're just spending too much money we're. just living beyond our means. yeah and you're probably right you've. gone from forty thousand dollars to six. thousand dollars in your business. account and this right here is eight. thousand dollars that you have to pay. off and clearly it's been draining. because we're overspending and we're at. a place where you have to make an eight. thousand dollar payment or else. High interest I don't know the interest. rate but it's gonna probably hit it so I. think last month if we go to it there's. a way too many here that's not also you.

well he's looking you should subscribe. you should subscribe because I love you. so this was the last. payment that was made that was on March. 17th okay okay and we are going out. we're getting that Chick-fil-A and food. store. and Grill North 25 bucks raising canes. lots of gas but you drive a lot for your. job yeah and I'm on the road so I don't.

have you know. okay do that to me all right then let me. be honest Sally McDonald's yeah be. honest I hate to cook and I hate. cleaning up and I'd rather eat food and. I feel like with my job I can afford to. do it whether that's what do you mean. you can afford to do it you've gone for. forty thousand dollars to six thousand. dollars we've gone from ten thousand. dollars to two thousand dollars in your. savings. and is there a different definition of a. Ford that I'm not aware of usually a. Ford means you can.

buy it and not lose all your money okay. can we can we meet in the middle then. while we wait for this to Thursday while. we wait for the the checks to come in I. should have been cooking from home Todd. I'm used to living this lifestyle. Denny's yeah I know but it's just like. big boy pants you know we put them on. because like. oh okay yeah I'll take that that's fair. Gyros or gyros gyros which is I always.

struggle with that I love Gyros and yet. I can never pronounce them when I read. the word I love yours Jason's Deli. McDonald's Raising Cane's Jack in the. Box 22 hours of Interest Capital One. member fee of 95 dollars. Subway United Airlines McDonald's I was. probably to come here yeah Airbnb that. was also probably for here 5. 279. now your friends probably split it. with you so they sent you some monies so. that's actually.

um. that is where that's for my employees. oh okay that's part of since I'm 10.99 I. have to cover those expenses yeah. McDonald's Chick-fil-A and by the way. these are all like an endless amount of. purchases and just like these are like. four purchases a day yeah a lot of these. you know some gas and then this and that. snacks lunch. Dickies Cuba Cuba car I mean we're just.

spending money dude it's just flying out. this was that we're halfway through this. month and I'm not even through the first. half of this month to be fair the five. thousand dollars for Airbnb that's a not. a common thing that was just well that's. good McDonald's and Olive Garden and. Olive Garden come on what are we doing. Chipotle IHOP Wendy's Starbucks that's. all within one day by the way Chipotle. IHOP Wendy's Starbucks and every day. just like repeats that Trend plus gas.

plus snack plus both. a Ford no we cannot afford it what you. can do. is when you get a thick boy check you. take that money. you allocate it where you need to. allocate it to and then you say okay. this is how much I can spend a bit until. the next thick check and then you make. your budget surrounding that but there's. no business budget right now we're just. spending because we're spending because. we want it we don't want to pack a. sandwich we don't want to do this we.

don't want to do that yeah pretty much. so yeah these payments are insane and. you don't fully pay it off because on. this statement 22 hours of Interest we. saw the interest being charged there I. mean your pain so these like I was. saying these last couple months are the. first time I've paid interest on these. cards it's because you're down to six. thousand hours in the business checking. we're down to two thousand dollars in. the online savings you're in an. unsustainable path right now and if this. money doesn't come for another three. months so we're it should be coming in.

in the next couple weeks like I said. I've had a couple so that was at the. beginning when I first moved out to. Denver started selling and then it takes. time to go through the pipeline so I had. a couple of them at first it was slower. but for the past month to two months. it's been study like last month I sold. hey no. 15 deals. nine or ten of those are going to get. installed on average I'm gonna get three.

to five thousand for each one so that's. coming in over the next couple weeks. good so I would think yeah stressful. well yeah you basically almost drained. yourself yeah so this American Express. gold card this is a personal card not. business correct good do you pay the. balance off every single time. until last month I did so what are we. doing here this blows my mind I will. never understand it this is something I. do not get we have six thousand two.

hundred forty dollars at the start of. your previous month and we could only. put two thousand dollars towards it oh. that sucks we know it's going to be. occurring interest but then we still. decide to put an additional one thousand. seven hundred twenty one dollars of. purchases on there with interest. accruing of a 157 and fees of twenty. nine dollars. thank you so why are we putting money on. here if we can't even pay the balance. where's the logic behind that because. you're not gaining anything the honest.

answer is that. I know I'm paying interest I know right. now I shouldn't be doing it I'm in a. tight spot but I don't want to decrease. my lifestyle. that's the honest honest truth. well what what do I what do I do over. here if you're just straight up not. willing to decrease the lifestyle if. we're not willing to do anything to. improve our lives like where where are. we well I am doing what has to improve. my life I work 50 to 60 hours but you're. not willing to cut back on your own self.

I'm glad you're a Workhorse that's. fantastic we can celebrate that that's. good I want many people that are on the. side of the table to be workhorses and. they're just not so no you win at that. that's fantastic congratulations but you. are not cutting back on yourself and. your desires and your needs to improve. your life I guess the thinking is that. okay yeah I'll pay a hundred bucks in. interest to not have to decrease my. expenses during this kind of weird. period right now but then once the money. starts flowing back in like it is going. to and already is then I'll be okay.

that's the logic I'm not saying it's. right well it's also been like six. months since you started this thing so. what I'm nervous is I don't have. in front of me. that money coming in I can only go off. of hope and trust that it is I have. nothing else I have nothing else here. and we're paying almost 200 in interest. and fees yeah. and we're putting almost as much on it. as we paid off so right now we're. sitting at 6 144 at the time of the. statement. well the minimum payment.

of 245.78. so what did we spend on here we already. spent like a trillion dollars on your. business card on going out to eating. we're going NBA League Pass. yeah that's necessary to live life one. uh Woodman Wine and Liquor yeah we need. that Colorado Spring Cowboys Cowboys. Cowboys Smoothie King yeah desperate to. survive Auto Wash yeah you know couldn't. drive a car without getting that glass.

cleaned and liquor outlets and Spotify. Prime video hellofresh I mean come on. you don't even cook anyway what's the. point of getting it delivered the luster. Pearl in Denver we have one of those. here and is it fun. pretty cool bar in Denver yeah I mean. I'm sure it's fine Lyft ubereats. ubereats. instacart hello fresh Chipotle come on. dude PBS Denver. all right. support journalism fine Cherry Creek.

so I mean this is all crap this is all. crap what confuses me is we're actually. this doesn't make sense I will do the. Anytime Fitness that's fine take care of. Health but Uber Eats Uber Eats Vesper. lounge and Audible and lifting hello. fresh and all this food and uh all this. crap you're stupid spending but you were. already going out to eat practically. three times a day on the credit card but. then we have this credit card as well. that we're adding extra things on this. is insane when's the last.

it's like you go out to eat for. breakfast lunch dinner coffee snack. on a daily basis when I'm on the road. yeah well you were apparently on the. road 365 days a year not quite but a lot. yeah. dude this is that's unsustainable and if. you get that money and that's fantastic. you can finally catch up but what scares. me is you're playing Ketchup from the. craziness you've been on the last six. months you know when we enter slow. season. are you just gonna be going into the.

hole again and then we just have to. always play catch up instead of just. getting far ahead I respect I respect. the no not but can I tell you I'm. nervous about it I definitely do and I'm. I'm nervous too and that's kind of why I. like I'm glad that you're talking to me. and you wanted to do this because I know. I I kind of need the kick in the pants. especially for where I'm at right now. but for the past three. three or four years of my life I've. lived on less than 30 percent of my. income.

and I've been able to save it and dust. it you know I like I'm the reason I. watch your show is because I love what. you do and I think you're helping people. and you're doing an awesome thing. subscribe by the way get them to half a. mill but. it yeah. just right now is the odd spot with the. move and learning a new product was six. months ago all right yes but I also. spent way too much time off. skiing for like the first two months. because it was great snow weather so. yeah.

yeah you know what really just comes. down to like growing up though it really. does it's strapping on the big boy pants. and we're like okay we're gonna act like. we're 24 years old and not 17. well yeah I mean I you know there's 10. months of the year that I grind my ass. off and then two months that I usually. that's fine but it what is being. demonstrated is you can afford it I'm. down for spend the fun money that you. have absolutely that you can afford as. long as we're investing a bunch of money. and we're doing all this stuff but right. now we're just draining every account.

and we're just like the money better. come. okay we do have Investments and this I'm. I'm happy with this at your age so this. looks like this is with Fidelity we have. a Roth IRA an individual Ira I'm. guessing is what that one is yeah it's a. Roth and then a just a taxable account. yeah when I max out the IRA now with. this I'm happy to see the 47 178 so we.

can celebrate that what is that invested. in uh just S P 500 not Index Fund ETFs. okay and then some you know. world. there's two of them I can't remember the. exact ones but one's like a broad world. index fund and then the other one is s p. oh okay then 17 000 in crypto. um okay it was a lot more I yeah I bet. I'd rather have a fully funded emergency. fund. I would too but I I can't exactly yes.

you can sell all the crypto. I could but it's down so much right now. it's trying to go back up and you do not. know that. no we don't we don't know for sure no. but if it really came down to it if I. was not able to pay my rent or if you. know credit card debt was piling up then. I would sell it well I just hope it. doesn't I've never had I've never had to. sell Investments to pay bills before I. hope not unfortunate and we're close to. that place I hope you just don't I hope.

it just doesn't have like a big crash. before you need to do it. and that's something we don't know true. no one knows for sure it will we can't. say it's not tell talk to I don't have. the same information tell me about this. stupid business loan or uh personal loan. it's the amount. uh what's left in principle is nineteen. thousand two hundred and some change. but why. no what was what was it.

that was that was what was the total. amount was 25 000. and you just put that into this company. hmm. the valuations doubled since I did it so. cool sell out 50 mil now. why don't you take your 25 000 in. winnings then if someone wants to buy. your steak. a guy who's way smarter than me whose. opinion I respect said with private.

Equity Investments. they either go to zero and if you less. than 10x you might as well not have done. it. you're paying seven percent on this what. is your minimum monthly payment on the. loan. 756 I believe. the two. what's penthouse. that's my my rent. oh that's right because you have that.

house you lived in before and then okay. yeah and the tenants pay the mark okay. yes yes yeah so that's the one that's. cash flowing 700 bucks right and I just. put that I reinvest all of that I just. don't even. make money why didn't you just instead. of. there's no reason you shouldn't have had. twenty five thousand dollars laying. around. um I didn't at the time well yeah but. there's no reason you shouldn't okay I. did but it would have put me in this.

position where I'm close to the breaking. point but then that clearly that's why. because everything's messed up then what. I would say is if I was gonna invest in. something again what is this taking out. a loan what is this Forerunner. that's that is that a car payment yeah. I didn't have a statement for that. either. I think I sent you that in the the debts. I had though. I don't necessarily look at those hmm. [Music].

is that my budget that you're looking at. death 600 stupid 57 dollars a stupid. month what what possibly also your. Penthouse is ridiculous it's in the. middle of like Denver the type of a. building yeah it's a corner I'm sure. it's fantastic invite me over sometime. but that's just. oh that's ridiculous. whenever you're in Denver hit me up it's. a two bedroom.

square footage. uh 1900. okay. oh it was way way nicer of a place than. I've ever gotten before I'm sure only. reason that I did it is if I'm gonna be. interviewing and hiring guys and saying. hey like you should come do this you can. make really good money not being from. there I wanted something tangible I. could show them I love all your. attempted justifications that's so he's. right that's what they are I know it.

what is your total balance due on this. Forerunner uh 31. 500 and some change dude welcome what's. the interest rate. seven percent dude what are we doing why. do we want why are we taking out an. additional stupid loan at seven percent. when we have a car loan buddy you're. just you're just making me go crazy. right now. it says I feel like I'm just losing my. mind okay.

death. CLL basic CLL what's that. that's uh it's the Excel formula to just. show like what my yearly expenditures. are oh oh oh okay. so before this year what is it like 107. a year that it's showing 106 106. up. until this year I was spending. like less than 50 000 a year making over. 200 Grand.

oh go back to that what the rent's. killing me because right now rent is. killing me your total is uh 15 000 more. on your income in terms of what's going. out your expenditures are lower and your. minimum that you have to pay and you. didn't even include your uh minimum. monthly payment on your debt. on your on the business cards no no no. you didn't include the minimum monthly. payment on your 25 000 loan you took out. no I did actually so that's uh it should.

be at the bottom it says I think it's. parents plus you're right okay so with. everything then what you need to survive. and we're we're throwing it out there on. screen in terms of what his budget is. that he laid out for us. 8 000. 880 a month dude I wouldn't say I. wouldn't say anybody needs to spend that. much that's just what I no of course not. but that's what you've signed up for and. you are forced to pay on a monthly basis.

yeah or else bad things. all right I'm gonna say that on average. last year I mean of course you would. write off taxes here and there here and. there but on the most average month. last year and this is before your income. dipped by moving in the last few months. last year yeah yeah but about 9 666. dollars. after taxes after setting money inside. for taxes and you are doing that wow. correct I don't have an account right. now.

so yeah no I my incoming tax liability I. talked to my accountant earlier this. week last year. um. is nineteen thousand and four hundred. dollars. surprised you got it down to that that's. not bad he's good at what he does. I don't know how he does it all but of. course you don't have that money. not yet. congratulations the not yet keeps uh. playing but guess what with that taxes.

and with the crap you're already behind. down and just replenishing your accounts. that not yet turns into you gonna have. zero dollars left. so right now do we have a total of all. those I want to say one of all the debts. that I have. and then there's 11 000 in student loans. but there's zero percent interest right. now no payments. yeah but that's about to start up yeah. real quick. probably like 150 a month in a monthly.

payment yeah. as soon as interest kicks back up and. those are gonna I'm just gonna pay them. off but probably do the car and the. personal loans gonna be the first one to. go ridiculous I hate that one too stupid. so stupid I'll accept that that's fair. I just have no other word for it. no it's fair. risky is that a right word. certainly if I told you that I if.

numbers go the way they're projecting I. have a clear path to make over 350 this. year would you be a little bit maybe but. I don't see it in front of me. projections or projections. if I can see something then there it is. but I can't go off of just that right. now especially since these last couple. months this has been absolutely nothing. so either way total debt 63 67 740 54. cents. with an average being brought in of. probably like 10 000 bucks a month after. after you set aside money for taxes and.

stuff according to last year's money. sure again I'm not going to go for. projections I don't know but what we. have in terms of last year in terms of. the work you did ten thousand hours. where of course your needs category in. terms of minimum monthly payments in. order to survive comes out to 88 of your. post tax income is your needs category. um last year's but the reason that I. moved to which we haven't seen any of. this year's income true but I already. have the order pipeline right that's.

awesome but I've already record a. quarter in we're in Q2. yeah and that's just because the first. part of the year I I slack too much that. that shouldn't have that's on me and. I'll accept that but I mean with the. numbers it's great but you got to change. something or else it's a personal. responsibility is nothing without action. like we can say oh I regret it but let's. get action either way 88 percent. that was your needs these categories. aft. absolutely blown up a lot of it that. Penthouse really that was the biggest.

biggest increase in my expenses because. if that wasn't a thing this would be. it's half your needs category it is yeah. and it's nice but 44 of your income. essentially right around there. 40 to 44 of last year's income. I hope it's 300 or whatever I mean. that's awesome we can celebrate it if it. is I hope we do a follow-up at the end. of the year and I can come back sure.

haven't no debt we can pop some. everything wiped out. hey maybe you can come visit in in where. this is I would love to see that. Penthouse and where this is because I'm. a for a good view oh it's good. Mountain View too. with where this is really I mean you. have like a thousand dollars to put. things for I mean what's the point of. even laying out a plan with right now. because the the income is like what. everything's being drained it's like. death. really what is going to have to happen.

essentially is when big chunks of money. come in um. we got to. I'd move down from the penthouse next. time that's up get into it eventually. but not until we're out of stupid debt. yeah. either way well it's kind of like it's. one of those things that I did it. because I needed some credibility like. oh. yeah okay so that's the justification. but now that that's passed I probably. won't re-sign that lease it was fun it's.

going to be a great memory I'll remember. it you can buy the penthouse condo at. some point but I should probably buy one. not rent one huh it would be better well. maybe if it can be affordable again this. is like 44 but of your income either way. either way either way. with the cash flow you get an extra 700. from your previous place which is also. good but you can't factor that because. capex and vacancy expenses and all that. too inside proper percentages by that. okay I set it aside.

uh three percent of the total rent okay. for uh future repairs and then an extra. three percent for vacancies I think. that's exactly what I did I think I did. 3.5 for capex and three percent for. vacancies but really what I do is I just. take the whole. whatever is above the rent so the 700. bucks and I just put it all in account. and I pretend it doesn't exist okay so. that's one thing I'm doing right okay. either way I mean that's not going to be. paid off if this is the financial. situation that we're looking at but.

either way when the big checks come in. they're gonna have to uh refill the. business account they're gonna have to. pay the taxes that are owed there's not. gonna be much left over then to pay off. the debt in big chunks so. from the money that is barely left over. you're gonna have to make sustainable. until you get another big check so. you're gonna have to strictly budget out. what you have left over you're gonna. have to cut back like the food spending. like crazy you're gonna have to cut back. the fund the vacation the bull and then. once those few months are up and you.

um get a big check and you're able to. you know put the same amount aside for. the next few months you can take that. remaining extra that doesn't have to go. towards paying taxes and replenishing. the business account to then putting it. towards I would do the personal loan. first. then oh no I'll pay off the AmEx first I. hope that should be yeah both both. credit cards business and personal first. then the personal loan then the car no. sorry taxes oh well yeah no I mean. that's a gift and we already talked.

about you that's the first thing that's. gonna happen yeah and then I'd sell the. Bitcoin right now put it towards the. debt. because you're not gonna win compared to. the interest that's being accrued anyway. I you're I know you're probably right I. just can't like I can't justify that. because I'm a Believer in crypto like I. I don't think that's a million x. thousand whatever in crypto when you're. out of really bad debt. right now we say okay we're an adult. we're going to take care of the debt.

that's losing interest. you can you can put a certain percentage. of your portfolio to a script I don't. but you can uh once you're out of bad. debt but right now we are in one two. three really bad debts with student. loans to come. so here in the next two to three weeks. that's because I've already done the. work in the past right so it's not going. to be like big check small check big. check small check because I've done the. work and I'm continuing to do the work. to sell and put in New Deals and put. them through the pipeline it's going to.

be consistent. starting in the next I mean I have. installed this week so that's all the. crypto now pay off the bad debt. replenish that in a few months if all. the bad debt has gone by then he said. buy more crypto in a couple months if. that's what you absolutely want to do. would I do that of course not but well. the reason that I don't want to sell it. is because I'd be selling it at a loss. yeah no because it sucks. we'll see but yeah we'll always see but. it's a small percent right I don't put a. ton of money into crypto no but you have. really bad debt settings of sitting. there.

and your emergency fund is nothing. so you think I should Wipe Out the whole. account the whole 17 000 in crypto to. take care of. this Amex which is probably like 25. interest seven percent personal loan. which is objectively stupid and the. Thirty One Thousand Seven uh five. hundred dollar car loan I do also have a. payout I should be getting soon actually. two of them. um one of them was from a real estate. Syndicate that I did in 2020 so they're.

getting ready to sell the properties and. I should get back about 25 or 30 grand. good they just and then what's gonna. matter is what you can set aside to make. sure you're sustained what can go to pay. off of the all the bad debts and fill. the emergency fund I've laid out the way. I did it clearly you're not in agreement. with that you're not willing to even. touch something like crypto of which if. you want to play with again like a. gambling game you can in the future but. so which one if I were to sell it all. right now on camera in front of you if I.

were to sell it all right now right here. yeah you'd pay on campus immediately. okay so that one would get paid off. probably like at what 20 30 intro so. something I think it's 24. yeah 24. so. and then okay so that's that's five. thousand there's 17 in the crypto or. almost 18. what would you do with the. other I'd put the rest towards uh that. 19 000 personal loan. and as soon as you clear this all up by. putting as much money towards it as. possible and building a Merchants fund.

you need to have at least do you know. sorry to interrupt do you know if since. I'm selling it at a loss couldn't I. write that off at the end of the year. you could do some Texas harvesting I. think I don't know much about crypto. your tax person can we can we look. because if we if I can Harvest those. losses I'll sell it right now on camera. simply put from like the top like four. things here yes. um. but again I am not a tax expert but that. is what. so far every single thing in here says.

let's see once you realize those losses. but you are selling it in this year. though. so again this is not my thing yeah. you're selling it in the year 2023 you. might be able to write it off for the. year 2023 I don't know if you could for. 2022. so let's for example on bitcoin. I'm down almost four grand all time. because I bought a bunch when it was at.

50 60k because I was filmoing like an. idiot. this I can't sell so that's staked. if you know what that means it's just. that I put the money in and it's locked. up until they decide that I that they. want to release it that's why would. anyone ever. it's four percent a year that you get. back great so it's not even beating high. yield savings right now. are they that high I thought it was like. three eight what I did this rates were. low they were like point five percent. would it make you happy if I did it. right now absolved the whole thing yeah.

and pay off your stupid credit card and. pay off most of the Loon if you want to. get again well one thing I'm saying as. if you really want to have that much in. there the quicker you pay off. the whatever's left so the person alone. and your 31 000 car and get a fully. funded emergency fund. the quicker you do that the quicker you. can put the same amount in there and the. less amount of time. you have away from that the more it's. like it never even left so what would be.

uh was it gonna ask you okay so in your. opinion then knowing my expenses what. would be a fully funded emergency fund. six six months. for you I'd probably do about. forty to fifty thousand dollars. you do you you need that in your. business that's commission based I agree. because nothing's guaranteed right I. could get hurt I could like anything. could happen when people are business. owners and you kind of are I actually. prefer like 12 months I do 12 months for.

myself. you know for like salaried employees I'm. like all right yeah six months but. just risk level they're charging me 195. dollars in fees to sell this why'd you. get into this bowl dude well it's. coinbase that's not crypto itself why. did you get into coinbase do you want to. see. no I mean I believe you. um. okay good lad. I can't do the rest of it but also go to.

the AmEx make it go to The Loon you'll. bear or I keep calling because I wrote. loon for like Looney I don't know why uh. either way for your personal loan. so that's 13. 000 when after this I'll do the MX and. then I'll put the rest towards the loan. yeah so that should leave me with uh 12. 000 on the person alone so that'll be. gone again I want to pay the taxes and. you'll want to do this and that and this. and that when these checks come you.

filed an extension yes I did good yeah. because yeah because I think I have yeah. I think I have some other depreciation. that my accountant has to write out so. we had to extend anyways okay yeah. okay. yeah I mean I've laid out what I think. from there I just put some money towards. making sure you have enough to sustain. accurately budget follow the budget if. you don't what's the point of any of. this then pay off the other debts as. quick as you can student loans depend on. the interest if it's four percent or. higher so yeah when that comes either.

way that's what I would do and then. after after all the debts are gone. yes in a good place for 24 in terms of. investment but like we can you know you. can start making sure your. multi-multi-millionaire by investing. minimum 20 every time yeah the. short-term finances are a mess right now. and then yes it has to get cleared up. and the short-term finances can turn. into a long-term mess if not cleaned up. quickly or if they get out of control. transfer the urgency is to sell the. crypto that's what the urgency is to.

beat it down as quick as possible and. cut back on all unnecessary expenses. unfortunately you've locked yourself. into a lot of high expense expenses but. anything we can cut back on just throw. everything at this until we have a fully. funded emergency fund and we're done. emergency fund paid off all the debts. taxes that'll be done I mean I. realistically it's going to be end of. the summer by like August or September I. hope so I'm not going to project because. the Monies. not there but. yeah.

hopefully we'll see that yeah and then. so what about after that though because. I'm you know one of the things that I. like about you is you're helping people. learn how to clean up the short term but. then also to set themselves up for the. long term long term especially with. where your income is if I was there and. it's what I personally do now I would. make sure my needs well personally I. make sure my needs aren't okay well. never mind it's not personally what I do. now because I just my needs are like. quite minimal for the income basically.

but either way I would just. 50 30 20 with where your income is you. can spend 20 on fun and that's a lot of. money and yes invest 30 and then your. needs can have yourself a nice little. Penthouse apartment uh no more than 50. but either way investing should be. minimum 20 of your post tax make sure. you are having fun once you have a fully. funded emergency fund taxes are taken. care of make sure you're sending aside. 30 taxes maybe 35 with depending what. well.

um yeah 30 probably. yeah and make sure you are having fun at. that point and that you're living within. good needs. but not until then cut back that's what. I would do yeah I realistically my my. lifestyle doesn't need and I don't want. it to inflate more than it's at now uh. they say like lifestyle creep you start. making money you start spending more. money I feel like I'm a case study on. that because I controlled it for a long. time but it's you know.

it's been creeping up so I that's my. biggest priority right now is to focus. on that yeah because I I would like to. be living on less than 20 of my income. right now obviously that. that biggest Factor on that is growing. my income yeah and I do have a path. right now to have that grow by. 20 to 30 percent per year as long as I'm. doing the things that I need to be doing. um. but I yeah my biggest thing right now. once I get all this cleared up is I'd.

like to start buying more properties. yeah that's great yeah we have a path to. get there eventually but yeah for now. main picture get on a mess we can talk. about that stuff in the follow-up. because this is it's not even on the. brain right now it's just not in this. situation. okay. for Christians Hammer Financial score. let's break it down into the five. categories for spending in a budget zero. out of ten he doesn't budget he's. overspending his accounts are being. drained his debt two out of ten it's not. great it's high interest and it's across.

you know credit cards at 24. and personal loan to invest I mean come. on but he's not in collections and stuff. like that and the interest rates on the. person alone and the car are not the. worst we've seen so two out of ten. retirement for his age eight out of 10. of course it can always be better to get. that 10 out of 10 but still he's in a. very good spot when it comes to. retirement but I will take some points. away one point because some of it's in. crypto now emergency fund.

there's some money there but it is very. lacking especially for his minimum. monthly needs it's gonna be a three out. of ten real estate sonar 10 very happy. as he runs a property but he's obviously. renting his Penthouse and he doesn't. live in a personal residence that he. owns so all that together it's going to. aggregate down to four out of ten so his. guess was actually correct make sure to. check out all the fun things in the. description below like the resources I. have provided don't forget to follow my. Instagram and Twitter thanks.