The Michael Scott Of Personal Finance | Financial Audit
hi I'm Assad I'm 27 years old based out. of Los Angeles California and this is. financial Audi thanks for coming from. Los Angeles what do you do there for a. living I'm a ER nurse very cool I. appreciate that people always get into. situations and they need to you know not. be in that situation anymore thank you. what do you do for a living. or this is starting off great isn't it. so what what do you make with that job. uh like 80,000 um four taxes so yeah but.
my checks as you see are like I do. overtime sometimes so it can range. anywhere from 23 to like 34 you get the. federal taxes you get the state taxes. and then of course benefits and. everything on top of that yeah you work. for the city I do LA County yep okay cuz. yeah that's where I saw one of your. retirement Accounts at so yes what came. in was $. 6,189 does that sound right it is Los. Angeles notoriously not a cheap City how. do you feel living there it I mix bag.
like I like it and I hate it well how. how do you feel with your finances right. now if it wasn't for my brother um I. would be really struggling cuz I was. paying two rents for a little bit so you. live with your brother I'm taking it you. live in his house do you split an. apartment I split an apartment oh okay. so what's your current rent with we for. me it's 1,800 a month um but just for. November and October I was also paying.
27 on the why old Department oh I. couldn't break the lease I mean that's. okay I mean you did what was necessary. at the time to get into a cheaper. apartment for the longer term but that's. that's definitely expensive you paid. what it was 2700. 27 what this really expensive okay like. some sometimes it was like a check would. go towards. rent yeah 43% yeah of your post so I'm. really glad finally moving with my.
brother uh yeah it's now it's just about. 30% you're at that cusp now there the. reality is yeah sure we don't want to. shoot over 30% for you know our housing. really but there's going to be plac to. San Francisco. LA New York where it's like yes there is. a higher income for living in those. areas typically but it doesn't match. what the living expenses are and that's. where 50 30 20 where 50% on your needs. 30% on wants 20% on investing the.
categories we certainly want to still. hit the 20% on investing but the. categories still have to like we. reconstruct things to hit our needs. you've certainly built up over the years. you're only. 27 you went to nursing school got a. degree no that explains the student. loans you've certainly built up the. credit card debt over the years that was. like. 2021 2020 I want to say and then why. pandemic we just was.
like get the world shut down let's swipe. cards you're certainly smiling and giddy. about it it was the dumb part is like I. paid it off thank you I paid it off and. I thought you know I got my life. together everything's cool and then just. one stupid decision led to the next um. when didd you pay it. off. 2021 like the end of 2021 okay so when. did you rack him up the first time like. 20.
20 so just an year. why I saw the money on my account and I. just like yeah I can I could afford that. and then I went from I could afford that. to I can make the payment on that and it. I'm realizing that might not be a credit. card person okay well you're obviously. not a credit card person when it comes. to rules for not being a Fu up you're. immediately you know in the world of one. you don't have an emergency fund so. you're breaking rule number two and. don't hold the credit card balance rule. number three so. that's a bad rule to break I don't want.
you to be a up let's not break the rule. of not being a up okay okay so you paid. it off and this is what typically. happens is you pay it off awesome now. whoa the money exists we can spend the. money oh it's exciting there's things. out there so we go what One credit card. two credit card three credit card why I. think there's four credit cards we just. took all the way back up again now. you're only making the minimum monthly. payments on them nothing an extra even.
though our rent is reduced now well I. mean I know that's just a now change but. even still if we've gotten our uh roof. over our head to 30% of our. income the progress should be more in my. opinion starting now for what it's worth. when was the last time you had to make a. payment on that extra. rent November this month okay okay so. I'll I'll. let that slide a bit and I'm not much of. a slide kind of person but I'll let.
slide a bit okay brief. pause your is slapping around just a. little bit so if you just thank you. absolutely you're a mouth. slapper is what our I don't know if you. saw him on camera we're we're going to. allow this this behind the scenes to be. in your a slapper is that better that's. much better okay thank you we got to. keep you hydrated keep you keep your. mouth nice and moist.
okay so what what did you spend it on. what did you rack up the credit card. debt with I had the money to buy a. computer in. full and I decided to put that on the. credit card no multiple credit cards. though so what this wasn't a fuing this. wasn't a $30,000 computer no it just I. kept making so I have a nonprofit and. instead of paying for yeah I know it's. you have a nonprofit yes uh it's a.
scholarship program for nursing. students yeah that's okay I mean I love. the heart but your rent was 50% of your. income you have debt death debt. everywhere why do you have a scholarship. fund I just felt like I really need to. do it I was to be fair I was advised by. attorneys that this is typically. something people start later in their. life yeah but I just like let me let me. do it now and then then I'll I'll tackle.
everything else it was it was really. stupid yeah there's things I want to do. I want to contribute to finding like a. not cure what maybe treatment for tontis. because I have tontis I also want to. give scholarship money out um there's. things I want to do but right now my. primary uh focus is on you know taking. care of the things around me making sure. the employees are taking care of making. sure we're growing the business to a. point where we hire the correct people. necessary to make sure that people. aren't overworked and anything like that.
so prioritizing the things that are. necessary right in front of me before I. give back but knowing that once I get to. the place where I can give back that I'm. just giving and giving and giving and. just spoiling the world around me and I. want to do that I love that you have the. heart to do that but if you can't take. care of. yourself. yeah you're. right not to mention the donation button. I was told today does doesn't work so.
what the so have you ever received the. donation in total I think we've clocked. in. like, but the rest of the couple. thousand was just coming out of my. pocket from your credit. cards what what what were you trying it. was a scholarship so you were paying for. other people's college on a credit card. my cash and then I was using the credit. cards to for the living expenses the. living expenses of what of yourself so. you used your own cash your own income. to pay for scholarships for other people.
again love the heart but the just you. know reality also exists and then you. use the credit cards just oh okay um wow. how many how much in scholarships have. you paid over the few years only one um. so so dollar amount oh in total it was. 28 * 2. 5. $5,600 this isn't mathing this isn't. mathing.
your I mean your credit card debt again. computer and then $5,000 a scholarship. it's it's been your credit card debt has. elapsed more than that so you got to. tell me actually tell me what did you. spend the money on in the credit card. debt because if we don't get to the root. of where the credit card debt came. from if we pay this off what's the point. because it'll just rack up again so. where did it come from true true one of. them was um I know the computer was 2000. and then not B yeah and then what other.
stupid purchases have I made uh a couple. impulse a lot of impulse purchases um. just is it like going out to e is it. what uh. Amazon and a. few I have treated a few co-workers a. couple of times to lunch and instead of. that's not adding up buddy whatever okay. do you just not know is it just one of. those things where you're just swiping. cuz that's an answer but I mean you're.
not giving me a real answer I don't know. I don't really know I want to say it. like I think I know but I don't I don't. think I know I want to take a quick. moment to thank today's episode sponsor. co-pilot they've been a game changer for. me recently when it comes to me finally. trying to lose some weight as you know. I'm realizing that health is one of the. number one Investments you can make over. the past month I've been on a journey to. prioritize my well-being if you haven't. noticed I'm actually down a couple pound. starting to look a little prettier and.
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subscribers thank you to everyone who. subscribed so far I can't believe I'm. even saying a million I love you all so. much okay okay then let's go through the. de let's figure out where your finances. are together let's let's get a picture. and then we can put together a good old. potential plan and just figure out your. life before we do that though give. yourself a score 0 to. 10 one if I'm being. generous respect the honesty we have an. Amazon card which sounds like you.
shouldn't have yeah again as you. probably know as a viewer of the channel. if you're going to use a card man use. the Fizz card cuz at least it'll benefit. your credit but it'll pay it off like a. debit card because on that you're not. going to have this where we have a. $3,331 balance in 8 with. $18 minimum $109 minimum monthly payment. these minimum monthly payments stacking. up by the way on your insane rent that. you. had like it is not easy living.
interest charge $76.30 also being stolen. from you that's not helping even though. you made $112 minim monthly payment you. only made a uh you only made progress of. like $34 $34 $34 of progress made even. though you paid $112 to it it's how the. lovely lovely friend of Interest works. $537 of Interest stolen from you this. year so far on one card and we have many. of cards to go.
through freedom freedom to pay $13 in. minimum monthly. payments I have this card it's a. pleasant. card balance of 3,375 see this is how. the Math's not working out to me you. said. $5,000 went to uh you know paying for a. scholarship that would leave us with. currently an extra $2,000 from what the. balances are now and you've been paying. towards balances at least minimum.
monthly payments and then 2,000 for the. computer so that so the other credit. cards is like what was spent on them we. don't know because this immediately gets. us to the computer thing and the. scholarship that was taken from your a. checking account and then you subsidize. yourself through the credit card. yeah which again I love the heart dude I. really do that's great interest to loan. from you $80 we have $80 of Interest. being stolen from us we're only making. the minimum monthly payments. balance did it the balance went down by.
2 cents why why the balance go down by 2. cents tell. me I the balance go down by two cents I. was I was still making purchases because. we spent. $33 this went these are subscriptions. there subscriptions buddy if we are. having interest stolen from us if we. can't if we can't make more than the. minimum monthly payment we don't have. subscriptions true we don't have. subscriptions and why do you need an. adobe subscription the other one I. understand but why do you need an adobe.
subscription initially it was so I can. edit like the nonprofit documents but I. literally don't need it I just forgot to. turn off the auto Ral take a drink you. mouth slapper take a drink saddle down. we'll get through this. together and okay so the math is lost. right cuz you obviously spent an. additional $4,000 somewhere because we. currently owe.
discover we discovered how to get. $3,936 30 in debt death debt of $57. being stolen from you on a monthly basis. with a $79 minimum monthly. payment but of course the balance only. went down by like 20 bucks even though. we paid $80 towards it because we've. lost $452 of Interest so far this year. and on the Freedom Card let's see what. did we lose in interest so far this year. on that one.
$424 so what are we like 1,500 Bucks. close to that an intro stolen from us. this year so. far and this is it at least this one's. at a low 18% interest. rate should I just cancel the credit. cards after I pay it off or should I. keep them you can close the accounts. many of them you can close now some of. them I would close them so that you just. don't have access to them dude yeah you. can't spend on these credit cards.
clearly we have an issue where even if. you're disciplined for a bit you just go. right back into the you area of just. destroying your financial future yeah. doesn't make sense 27 this is not what. we want to see is it and you're. absolutely right like I can be. disciplined like this. month's just one f up with the Adobe but. it's just a cycle why do you think you. fall back into it so much just from your. own self perception why do you think we.
fall into that we're just like oh or I. just give up right now I'm just gonna. swipe I'm going to swipe I'm going to. swipe I don't that's interesting one I. want to say just do you ever. self-reflect on your. spending no do you budget uh I create I. download the every dollar app from Dave. Ramsey but I haven't used it since I. downloaded it instead having the. platform to budget is only one thing you. need the resources the skills the.
discipline and how to build a budget and. a lot of the education so we're. obviously going to put you through our. budgeting program just like everyone who. goes on the show so we're going to put. you through that I need you to go. through that it's few hours of content. take the quizzes make sure you're. knowledgeable and actually stick to it. and revisit it when you need it man. because I think that if you can't if. you're not reflecting on your money you. barely know how you got into debt you. know how you got into a portion of it. you don't know how to reflect on your. own spending of why you go into the. Cycles you know of just your own. mentality everything like that and you.
download a budget an app but you're not. even using it so you're probably paying. for it it's like okay I need you to at. least go through that program and I need. you. to yeah okay so Wells Fargo. $1,979 what just never. stops I knew I made some mistakes but so. you're not even know how much debt you. have uh I have a spreadsheet but I don't. I don't really look good it all too. often it's just like the app there's no.
point of doing that stuff if we're not. looking at it there's no point of doing. any of it if we're not going to. manage $61 minimum monthly. payment $440 of Interest Sten from us. purchases. $120 what you purchase I honestly do not. your balance went up on this card and. you're losing. interest it's your AT&T bill you got to. get these automatic charges off these. cards my dude. yeah 120 for.
AT&T. yeah looks like in probably just started. kicking in cuz 79 bucks of Interest has. been solden for me this far not crazy. but that's you know less than double of. what was soen for me last month are they. recent was this interest free for a. while or did you did you just put this. balance on. here I had it since. like maybe. March what what is it it so okay you.
originally said from 2021 which was. three years two years ago and then I. paid it off yeah but you you said you. paid it off then and youve started. building it up since then this is only. since March though what has been. happening since. March just impulse purchases um but what. are we impulse purchasing I sorry I know. I'm being relentless and it might even. be annoying to you but I I just got to. if I don't know what you're doing man. because this statement only goes back uh. 30 do 30 days cuz I like to see where.
people are today and it just makes more. sense and it's easier to digest in terms. of the show in terms of everything but. for you I guess you're more the oneoff. situation where every once in while. maybe it would make sense to see what. was happening this last year if you. don't even know what's going on with. your life what are we going to do what's. going to prevent you from going back. there I even I thought like should I. send him like the past year just because. well it's not what we requested so it's. not on you we requested the last 30 days. but did you want to see like older.
statements we could I mean I could. scroll back there it's it's it's going. to be more glancing than. cuz what I would have like to do is you. know the Deep dive that we do into your. documents is you know looking at the. last. year just impulse purchases food are we. going out to eat is the fast food are we. buying. Tech I want to say the majority of his. food if I'm going to a restaurant with. friends I'll Fork the bill and and I'll. why.
I I guess it's the ego thing like I like. to pay for people's lunch you just makes. me feel good okay so it's just like the. self like yeah just the mental. masturbation what you're mentally. nutting all over this food and your. friends like like strok in the. ego stop with the Strokes nut dude I I. don't know you already have like a Super.
Porn Stash going on I don't need I don't. need the rest in this. conversation yeah it can those. handlebars usually I riding them. straight into the pits of debt I usually. curl it but I left my you're a curler I. am I I mie I. [Music]. I okay so and then we're into the. student loans now this was interesting. looks like you threw $1,000 at it it.
wasn't me it was my mom Oh I thought we. were going to get to this point I. thought I was see in this in I thought. and why I've been picking on you a bit. is because what I thought I was going to. be able to do so I was like punch you. beat you up a little bit slap slap slap. and then we get to this and then we. could. celebrate yeah uh my mom told me because. of my credit card debt she's like just. focus on pay those off and then you can. take over to student loans so I told her.
okay cool and then when I checked it for. the show I saw she was chunking on the. student loans so I told her stop because. I need to like dig myself out of the. Grave well I mean well okay well let me. throw a different perspective in there. just if she wants to help as long as. it's not enabling bad behavior as long. as you're actually taking control over. your life and starting making progress. on the other debts and you're cutting. back on the other what's wrong. with her wanting to. help I just it's the enabling it the.
pride. also go I don't care abouto this is math. I mean no it's fine if you don't want. her to I mean it it it is fine um but I. also don't think as long as again it's. not enabling the bad behavior which if. she did this six months ago may have. been well time again I only see a month. maybe you're two months ago I don't. know so it really goes to that it is. helping you prevent having minimum. monthly payments. yeah which that's good in your situation.
God I think that's your biggest impact. to your life right now because this. would be A3 $49 minimum monthly. payment has she done more because I. think this overall balance was higher in. order to equal that minimum monthly. payment the it initially was I think 29. something I put a th000 um uh last year. or so and then I just haven't zero. interest cuz initially during the whole. lockdown I thought oh there's there's no. interest it's a perfect time to pay it.
off and I only put. $1,000 which also makes sense if you. didn't have the credit cards at like 30%. death. but damn. so Mama handlebars over. there okay it's a subsidized life but. you told her to stop I told her to stop. she told me she's going to just make the. minimum payments um just she's not going. to Chunk on it which makes me feel. really guilty cuz it's like you know Mom. is essentially taking care of me you're.
27 yeah I you're you're saving other. people's. lives but not my own it's like yeah. Mom's wiping your over here. yep I definitely get that again I have. no issue like okay pretend pretend that. I I was you know po a hammer I'm your. dad you know I pooped you out or. whatever all all that good stuff raised. you love of my life you're my child yay.
like yes as long as you weren't. continuing that destructive Behavior I. would want to help cuz I'm like I want. this guy you know he's he's starting to. take control of his life this is awesome. this is cool he's starting to actually. make progress so let me help him along. the way that's a cool thing to do to be. able to do as a parent and I get. probably her reason why she wants you to. get to that more Independence where you. don't have to rely on brothers or. roommates and you don't have to rely on. Mom's helping and a lot of that is. digging us out of the de that we're. already.
in so I get it hey guys just to let you. know we're uploading an exclusive. Financial audit on a couple on patreon. this Sunday you get an exclusive audit. there uncensored that will be found. nowhere else every other Sunday. everything made from our patreon goes. directly to our employees now back to. the episode she's are they are they well. off no they so that has to hurt a bit. yeah especially because I know like. she works overtime as well um what's her.
job she's also a nurse okay she works. with children's but she makes a lot more. since she's been in it for a long time. but even then it's like she's paying the. car payments on my dad's cars um well. they're married they're married yeah. okay well that's fine I mean they're. together but it's like he has one two. three uh think he has three cars yeah. you need to come on the show if you're. seeing.
this. WOW uh yeah so. it's but she's she's trying to pay off. his cars um and then she's also trying. to do my minimum payments which makes me. feel super guilty cuz it's like the. heart runs in the family you wanted to. do the scholarship and the amount of. money that you put towards the. scholarship was now just put towards. your student loans to your mom. so kind of offset it in a way and you're. working with a CPA to make sure you can. take take advantage to some tax bennies. with I haven't done that.
yet again comes from heart but at least. you know there are some rewards that can. come with. it. oh it's at. 7% student. loans you're how do you not know I. thought it was a was it 3.9 oh that's. the car I what made you think that. that's your what I still have a car but. I paid it off I don't no I don't I don't.
at 3 your car at 3.9 you should have. paid off the other debt. first this is a. 7% your group is at $24,000 is. 7% daily interest like 4 418 has being. stolen from you $418 a day it's going. going gone that's a star bees right. there that's going to Starbucks I. day.
yeah you're under standard repayment. which is good I'm glad is there any. other. debt just credit cards and soona loots. that is so no other debt no thank God. yeah okay so we have a checking account. now we're sitting at 9:35 in. there that's pretty okay checking. account I like to see thousand couple. thousand bucks you know for the sake of. automatic payments and we have a rent of. 1800.
so uh Southwest vacations was that to. get. here uh how'd you fly and how'd you do. all that cuz that's more expensive than. anyone it. was a little too Bouy I did a package. deal so it's and this is why we give a. flat right instead of covering people's. expenses because then you did a bougie. thing your bougie thing you're coming. here to get help why you go ah to go on. a bougie thing and drain your checking. account to do it I'm like oh let me make. it a vacation you're vac vac you don't. have vacation you.
work how long are you here until the. 29ths when didd you get here. yesterday okay I that's not the worst. that's not the. worst for like five days. but but you're paying for the hotel for. all those days and again this why we do. a flat fee because I'd rather you come. and maybe stay night fly out the next. day and that's what we try to cover. essentially but. that's upsetting that doesn't make sense.
that doesn't make sense you know you're. going to the place where you're trying. to get help you know you're having. conversation with the person who hates. this frivolous spending when we're in. stupid debt and we're trying to take. control of our lives and you do this was. this just a piss me off no certainly not. making me happy but I definitely needed. to get yelled at what is it like a kink. of yours like I'm not shaming but buddy. you know this was wrong yeah especially. cuz like like I can't can't just be like. no don't do that and then all of a.
sudden you stop doing it like I I what. are you expecting usually my mom's the. one who like plans vacations um so she. would use Price Line and get like the. biggest deals but I didn't want. to do that it sounds really stupid. coming out my mouth right now I love my. mom I'm close to my mom I don't lean on. her for every aspect of my life and you. shouldn't at 27 or basically the same. age I'm a year older than. you I don't be like Mama plan my. vacation please yeah parking you park a.
lot you're always paying for. parking car depend in. La something at your apartments is 10. bucks some law thing you paid a 100. bucks for oh that was the trademark. attorneys trademark for what this this. nonprofit thing you're doing. yeah this thing loves sucking money out. of your checking account yeah.
great Uber chocolate more parking some. extra American Airlines cousins barbecue. more chocolate $98 a. chocolate what are you doing what's $98. of chocolate I was buying caramel apples. for my co-workers your co-workers get. out of debt then buy them. all apples for a week. I love caramel apples they're delicious.
but I haven't had a caramel apple this. year I want a caramel. apple. barbecue La is not the place I'd get. barbecue Sammy's Pizza also not the. place I to get. pizza some dog thing did you fly here. with a dog America's dog oare o O'Hare. cuz that's an airport I was in. Chicago um. dog oh you get a dog in Chicago at the.
airport yes that was a expensive airport. oh hot dog oh that makes so much more. sense and Chicago dogs are quite tasty I. will say then another checken account we. have 1,000 bucks what's the purpose of. this checking account it's my Dave Ramy. emergency fund. $1,000 I'm a little nervous with that. cuz a lot of people on the show have. ended up in worse situations than were. than they were before cuz $1,000 is not. even close to enough.
obviously anyone with the brain knows. that and we took out. $1,450 out of. savings the. ticket in addition to the hotel in the. car yeah yeah no you spent a lot of. money on in addition in addition no like. it was a package deal oh thank God okay. uh now City in our our city retirement. package 10,000 bucks of course if that.
was it I'd be like okay you're. dramatically buying for 27 but we do. have an additional $21,000 and a Target. date fund which is great 2050 Target. love Target date funds absolutely. awesome is this a Roth IRA or what is. this is this like a rollover what are we. looking at here honestly I don't know I. would like to think it's a ra fa but he. well if you sent a statement as we. requested instead of a screenshot I. would be able to tell you I know I'm. beating you up but I mean I'd like to be. able to help more I can only help with.
what I. see interesting hm this is dramatically. performed under the s&p500 this year. dramatically. like oh wait wait wait wait no yes well. no no no that's S&P 500 I'm thinking of. year to date instead of uh from October. of last year to now so I don't know the. return off the top of my head so maybe. not maybe not I'm not sure okay so. 30,000 bucks in retirement a little. behind for where I'd want you to be. approaching your 30s but I am glad there.
there is something started so we do have. that to celebrate we can celebrate. something so yay okay yay yay I know I. beat you up a bit but yay yay yay cuz. I've had a lot of people on the show 27. not a single scent for. retirement okay okay how much in. utilities do you spend on a monthly. basis at this new. place. uh I haven't my brother was forking the. bill since I was paying on the other. place are you going to start now what do.
you think it's going to be December um. I'd assume it's was going to be like $54. for Wi-Fi. uh oh yeah uh and then probably like 150. maybe 200 for electricity bill every. other months call every other month. glendel is really weird they like charge. you every other ones which makes it so. we call it 100 plus 50 for internet so. 60. and then so 60 for utilities um.
obviously obviously insurance comes to. work um okay good so car bill your car. is paid for how much you spend in. gas I I stretch it um I spend maybe 80. no 160 a months so like 80 every two. weeks parking how required was all that. parking you're. doing so I could a school it sounded. like that's what it looked like trying.
to. remember uh cuz my new apartment the the. one drawback is there's only one parking. spot so my my brother has a parking spot. and then I'm parking on the street and. you have to pay for it there is there. are free spots I just got to memorize. what what day streak better get on that. how much should I give you for parking. you know I don't like charging wise it. can be like 15 a day um give me an. amount for your month cuz I don't know.
oh it's it's included in the the rental. deal how much should I put in your. budget for parking on a monthly basis oh. sorry it's okay uh it can actually be. zero I don't I don't need to spend any. money on good then I better not see it. in your update car insurance I see uh. 293 yes that sucks yeah in the past. years I would pay in bulk but this year. I just I didn't have the money for it. well I had the money I believe at all. $300 for groceries for food only $100 is.
your toilet paper and anything else fun. what you need to. survive incling uh now is there any uh. extraordinary medical expenses. medications anything that would probably. go out of that toilet paper fund no rent. as insurance you have I do how much is. that. 35 we're not doing bull food of $257. anymore we're not doing. it not a thing. uh so uh did we get gas yeah we got gas.
uh rent utilities car insurance. groceries toll paper fund renters. insurance phone bill 54 that's well. anything else you need to survive what. am I. missing I think that's all the. essentials everything else it just wants. which I don't. need y. buddy there's no reason you should be in. debt I get the rent the rent situation.
it was more expensive but even with that. there was no reason you shouldn't have. been making progress on your debt you're. just around yeah you're around you're. just like you're putting your entire. life on hold financially. speaking that's that's done today if you. give it it's done today that's end. Finish yeah agreed ABS okay so you need. uh 2,8 $12 to survive on a monthly.
basis. what in my head in my head I was going. to every other every second check of the. months I was going to use to pay off the. credit. cards okay but you should have an extra. 3,387 bucks so what I'm actually going. to. do because you have wiggle room I will. give you and this is this is crazy but. this is just to make an example now. obviously if you find out the more. things you need in your life you cut. this out first I'm giving you $387 in.
you. spending as long as you budget. it you track it what might be best for. you is an envelope system put 387 bucks. in an envelope you can spend that on fun. the moment it's done you can't take from. any other place you can't spend money on. fund from anything else this is because. you actually have room you actually have. room that gives you 3,000 bucks a month. left to start taking care of debt so you. have $1,000 in savings. cool first month let's just give it a.
little extra wiggle room let's just call. putting the extra money in there. bringing that to a total of $3,000 that. saves you a month that is a month. emergency fund you're done in a month. little extra wiggle room there cool. after that Wells faroes killed within a. month and you start making progress on. freedom after that freedom should be. paid off in month number. three cool. Amazon uh should be paid off in month. number four. month number five discover is going to.
be close so I'm going to say by month by. the end of month number six all credit. cards should be paid done end of month. number six all credit cards are. done what is. that what is six months that is nothing. compared to people that normally come on. the show they have to sacrifice for. years six months is nothing now your. student loans are higher interest so I. do want you to tackle that normally we. do minimum Mony payment on federal. student loans but these these kind of. suck. so that takes an an additional eight. months to pay off okay but so great.
you're. yeah okay so what are we a month and a. quarter or something like that I that's. nothing to be completely debt free for. someone who's run for years and years. and has done nothing and built up the. credit cards and paid them off and built. up the credit cards again and has their. mom helping to pay for student loans. like oh one thing in your budget sorry I. didn't do debt Min a monthly payments so. and I'm not calculating the student.
loans cuz your mom's paying for it so. okay that actually takes away your fund. money so I'm sorry your fund money no. longer exists and the $3,000 is going to. that so it's a month and a quarter of. just not having spend money fun you can. have free fun but. yeah if your student loans come in. that's you know that takes away from the. progress you can put towards your debt. but if your mom's paying for it you. should be out of this and if you. actually care and give sacrifice like. the way I did when I got out of my debt.
you should be out of this in a year and. a quarter it's hard work it's going to. take a lot of sacrifice and it's so much. easier said than done of not swiping and. having the fun that cost money but we go. to Parks go to the beach you know I know. parking but it's like sacrifice anywhere. and everywhere you. can from there I think what you should. do is about 20% on a monthly basis. should go to retirement probably max out. your work retirement maybe max out a. Roth IRA if there's anything left over I.
mean you could what I've started. throwing money into I've been throwing. money into Vora which does like. automatic investing kind of like acorns. but there's a 1% match that that invests. after a couple years so you could start. doing that that's really cool um but I. want you to just start getting your. investing game on not sure you'll max. out your work. things but definitely max out your Roth. IR max out your work things continue. getting those raises over the years. obviously and we're doing 20% a month. and you should be able to retire. probably a couple million bucks you know. should it should be pretty chill as long.
as it just follows Standard Market. return to the end of to the end of. retirement um and you're happy with. career you're happy with where you are. this is what you want to do for the rest. of your. life. yeah what in my head I I'm I will go. back to school but I told myself why for. why for why you're making 80,000 is. going to be over six figures before you. know it why a nurse practitioning like. the advanced practice nurse oh okay but.
well in my head it's like after I've. taken care of the Dead I have to have an. emergency fund before going into school. and I can't take out a loan no I would. take care of the debt I would have a. fully funded six-month emergency fund. sorry I I I should have said you do that. before you start doing 20% to investing. so call it two years before you start. really throwing money at investing but. uh obviously take the match until then. so yes so. what I would do in your case then what.
is that going to cost what's the school. going to cost a degree there's one. program that if you you pay like 6,000. or or like four four to 6,000 a semester. but you can take as limited as many. classes as you want how long's it going. to take in my head I think I can push. through in like two years were you a. good student. no okay so why do you think you can do. it in two years with work will school. will will work pay for any of it some. nursing programs will some hospitals.
will but obviously it depends where you. are they said they will everyone I spoke. to said that they're still waiting and I. don't want to keep it's like that I. don't want to wait years if I could just. well it's going to be a minimum two. years until you go anyway yeah yeah. saving that moneyy I love when my money. is making more money in the SOI high. yield savings account I use has 4.6%. interest on that moneyy it's the savings. account I personally use for my tax. money that I set aside and other money.
that I just want to be building while. it's just sitting there and you can get. bonuses by signing up all the way up to. $250 by using my affiliate Link in the. description below and it's not just cuz. they're my affiliate I personally use. them they're great I've had a great. experience with them so far and I only. recommend those who I like working with. and who I like using so if you have. money sitting in savings have that money. make some more. money and use that high yield savings. account link in the description below. 4.6% and bonuses all the way up to $250. okay um and what I would do from there.
is when we're going into it yes have a. six-month emergency fund it's 5,000 a. semester you said so works not paying. for it what I would do is make make. before you go into the first one make. sure you have an additional $5,000 saved. boom pay for it I would take away not. necessarily from investing because I. need your investing to keep. going so put uh if you're doing 50 30 20. 50% on wants and hopefully you can do. that in that area currently you know I. think you could do it but you'd still be. living with a roommate and then 20% are.
investing if you had 30% left over for. wants uh what I would do is I'd maybe do. 15% of wants 15% saving up for the 5,000. which you'll get to relatively quickly. and then throw that into the you pay for. that semester of school and then each. semester you cash flow the money you're. continuing to make uh because you're. going to be working full-time throughout. that yeah okay and you think you can do. this when you were bad in. school I'm optimistic too fault I'm an. ambitious person I like doing things I.
like grinding I like building. things I would not be ambitious for. myself about going and getting a degree. because me in school and the regimen. around school and having to take all the. that will never be applied to what. you're actually trying to do now this. more advanced degree probably will be. more focused but even still I wouldn't. be confident in myself of getting that. I'm confident in myself to hopefully. build this business and hire employees. help people around me help people on the. show getting a degree I don't know so be. realistic have a conversation with. yourself do some actual self-reflecting.
which you haven't been able to do. Finance wise do some self-reflecting and. see if this is actually right for you. and I'm good with it and I love that it. will add some earning potential I'm good. with school and it makes sense I'm good. with certifications I talk about course. careers for Tech certifications I talk. about uh trade schools I I'm good with. this this is a good thing if you think. you can actually do it well continuing. to make income to live and invest if it. makes sense for you then do it I'm all. about it after you get out of after you. have a fully funded emergency fund and.
after you can cash FL it gotta and that. fully funded meaning six months or doing. months 12 okay yeah you don't need 12 I. would do 12 if you're more of a business. owner gotcha um and know your nonprofit. does not count and I would not be. contributing to it at all until you're. at least probably. like probably like five years dude. minimum about that um I. I told some students that I'll guarantee. their scholarship for the spring of next.
year this ising Scott's tots this is. Scott's tots have you seen Scott's tots. no it's the. office Michael Scott is who you are now. to me oh God. promised to pay for a bunch of kids. school payment uh when they were younger. and then it got to it and then they. couldn't afford to do it he couldn't. afford to do it once they got to that. graduation age and then he just bought.
them batteries and it's the most awkward. like oh it's a it is certainly an. experience to watch that episode how. many well how much of school how much of. school did. you okay so okay there's a let's say. there's a person that you plan to pay. for the school you said You' pay for the. school how much how much for that. singular person 2,800 okay now how many. people did you promise it to. two Okay when April ail of next year.
you. absolute money. they're probably relying on it. right yeah you where do how do you know. them uh I was looking to the the. applications for the scholarship and I. just I really wanted them to get it I. didn't have the money so I told them hey. next next year all and endorse it this. is done this is done. done you promise that I want you to be a.
like man and pay for it okay oh yeah. being an. adult so this gets uh when what month. April okay I mean we're putting it in. the situation I mean your credit cards. would be close to paid off by then. anyway one of them is going to be put on. pause and you're saving up that what. 6,600 something like that um. to do it so it it delays this process by. a months but you should be able to do it. if you actually follow my budget and. what I laid out and it'll extend the.
situation to like two years two months. by the time you have a fully funed. emergency fund so be a man of your word. take care of it and don't do that again. don't be dumb don't be dumb it doesn't. make sense I love the heart the heart is. good I love it I cheer on the heart and. do that be more caring be more giving. and sit down on the CPA and take. advantage of any tax benefits that are. coming with. this be smart be smart in the. future yeah email me if you're ever.
like I need to give someone a. scholarship email me and I'll I'll set. you right I'll make sure you know you. can start doing this in the future man I. need I need to make sure the best way to. give is when you are set for success and. then you're able to give more than you. ever could before so the best way for. you to actually give is to make sure. you're set for Success right now you're. dying in debt man yeah you wouldn't if. we got to that situation you would be.
opening another other credit card to do. it which is going to prevent you from. giving more money in the future which is. not helping more people I want you to. help more people by take care of taking. care of yourself now and setting. yourself up for success and then helping. dozens and dozens of kids hopefully a. year go towards school that would be. incredible yeah that that would be the. dream after I take care of business of. course take care of business the best. way to get the dreams is figure out. where is the dream what does it take to. get there what are the actual steps.
required in order to hit hit each. objective to get to the final goal. figure that out map it and take what uh. figure out and then do what is required. to actually get there and what we laid. out are some basic actable steps go. through the budgeting program it's the. best education you can find online when. it comes to budgeting no preaching no. guru bu um so go through that and that's. actually going to help you and that will. get you to where I think your goal is. and then stay in touch as much as you. want as well but do you have any final. thoughts any final.
questions no just thank you also. congrats I think you're coming up on a. million really really soon well thank. you I appreciate that I was shocked cuz. like I remember like seeing your page. like way back in the day and I'm like oh. it like I I watched one episode I like. oh you had like you know maybe 30,000. subscribers and. then I didn't subscribe then sorry. you'll give everyone scholarships but. you won't give me a subscribe for free.
and then like I you popped up again on. like the recommended page I was like. holy smokes it's like ah and then your. show is helping a lot of people like. well thank you you're helping a lot of. people by being here because there's. going to be people who are relating to. your situation who might be headed. towards your situation who might be in. your situation and you are helping them. by being here thanks so thank. you uh do you happen to know good CP yay. for spending in a budget actually wasn't. the worst of the worst that we've had.
here is actually pretty average I don't. know what he was doing before but here. in his it was a five out of 10 de no. collections no IRS de so it's not a zero. but it's certainly not good 2 out of 10. emergency fund had $1,000 so that's a. one out of 10 uh. retirement pretty good pretty decent not. where I want him to be for his age but a. Solid 4 out of 10 real estate not yet. might be there soon uh 0 out of 10 maybe. within a decade so that's going to be a. 2.5 out of 10 make sure to check out all. the resources Linked In the description.
below they are what I use would. personally use in specific situations. don't forget to check out the best. budgeting best budgeting program that. has ever existed in the history of the. internet link below hey guys just a. quick reminder to go to go.my copilot. docomo Hammer get your 14-day free trial. in your own online personal trainer. thanks thanks to all of our patreon. producers for making this episode. possible if you want to part participate. in an episode of financial audit and. you're able to make it to Austin Texas.
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