This Is Just Insane | Financial Audit
hey there my name is Paul I'm 40 years old from Denver Colorado and this is financial. audit welcome down to Austin thanks for taking the trip what do you do up in Denver for a living uh. right now I'm currently between self-employment and I do a little bit of contract work with the. it companies in between self-employment in between self-employment yeah okay so what was the previous. self-employment I sold yard art and wall art on Etsy so whoa all right what kind of art were you. doing so like Charlie Brown seasonal yard art so you see like little signs out in the front.
yard of like a Christmas tree or for Christmas Halloween Thanksgiving so all sorts of Seasons. so I made a bunch of those and then I also made wall art that you can put on your wall with a. for video games comic book logo oh very cool LED like so you're creative a little bit why' you stop. that I got baned on Etsy for blat copyright infringement oh I guess that's kind of fair m. mhm which is sucks but it's fair I always knew it was a possibility which is um I have unmanage ADD.
which let me basically ignore the issue and like I knew this was an issue I always knew I had to. diversify from Etsy get off like Shopify get off uh diversify make and did you I started doing it. about March two weeks before I got banned okay how's that going then it's okay it keeps up um.
I had to spend and work a lot harder to get the traffic there yeah because Etsy is such a amazing. market like so people you know are going there looking to shop and the competition is so much uh. I have a lot less competition there so like you'll you could Google Snoopy art art yeah I have five. competitors and I do really good work so so how much uh are you making off of that right now on. average cuz I know obviously sales are probably up and down up and down yeah um so for 21 I made.
about $80,000 woo okay 22 uh cuz 21's a while ago now oh yeah so 22 is when I got banned so I got. banned in March of last year okay and how have we been doing since last I think I got about 40ish. but last year yeah I took home about 40 I think but this year so far still a little weaker I've. been dealing with a whole lot of stuff so haven't been promoting and working it as hard as I should.
have okay and which is you know once again all the add stuff I've been struggling with and basically. I had like unmanaged add and I I knew I've had this since I was in kindergarten and but I always. thought it was just oh hey makes me a little bit more hyper a little bit more impulsive but what I. didn't realize is all the executive function stuff like how it actually affects your mind and affects. like planning impulsivity ability to stick with everything emotional regulation and so because.
of all that stuff I was dealing I didn't realize I was dealing with I was struggling to get the. business back up and running because yeah I had to actively work towards it and now because instead. of just taking every year growing my business to a new level getting new exciting challenges I'm. having to go back and deal with a lot you know all the old stuff so I'm a lot more bored okay. well what do you think you've brought in this year so far from that hey guys and happy Wednesday this. past month Monday I talked about the fact that we have launched the best budgeting program in the.
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description below just to get income on paper I haven't really looked at everything probably like. 20ish November and December are my best months so that's when I really bring in the money so. I'm hoping to bring in another 20 or3 as well but I'm also keeping a lot of money in the shop. because as as some of your buddies on the U money guys channel has asked you about yes how much are. you saving up and I was not saving any money in my shop well and your business checking account has.
like 80 bucks in it at least at the time of the statements which is oh no the statements I sent. you were my personal uh all uh I have a business checking account it shouldn't I didn't think I. sent that let's see I could be wrong I sent you like my Sofi one which is a savings I have that. mhm and I'm I'm happy to see like a thousand bucks in there but [ __ ] yeah that that one right there. you're looking at that's all my personal and if I sent the business one oh no for business.
yeah that's just the heading I have because um I had to create an account a business account with. Chase but then when I recreated a new personal one all the stuff showed up so B yeah that's my. personal do you have a business checking account I do do you use it quite often why don't I have. it it's being handled by my CPA right now so being managed by that and I'm really working to separate. my personal and the business finances so and like I said I got the CPA working on that okay so uh. trans iing to a new self-employment what's the new self-employment well like I I'm going to get.
back into this so once I hit it's the same thing yeah so once I hit a certain Milestone I'm going. to you know quit my contract job and what's the Milestone basically 150,000 a year in sales how. do you get there if we if we've gone down now I know you know you say uh a massive impact for. mental health which totally get yeah justable but if we're on the downtrend how are we getting to. 150 well um part of the downtrend this year was I was not spending as much on Advertising as I.
should have and so I've been so off of etsy has not been as much and um but on Etsy it's picking. up so uh comparison in October of last year I had like 2,000 in sales and October of this. year I had 10,000 do you have any metrics on your previous advertising uh some and that's I was part. of the problem because I was dealing with so much stuff um what over the last year I wasn't really. looking into it like I should have where did you advertise before on Google okay uh what were your.
average conversion rates I don't know so okay what was your average uh uh do you know your cost per. customer that that's the thing so um I was doing the bare minimum like I was just throwing money. at it and I know I was getting some results but I did I was not looking into it like I should. have because I kept you know getting distracted I was drinking a lot so oh right and uh yeah so.
drinking a lot in the evening and which was I'll be hung over during the day and it was yeah and so. my focus was all over the place and that's what I was struggling with um I didn't realize that when. you have ADD you need like three things like you need medication which I was taking but that only. kind of really helps you just maintain uh you know a semi functional life but if you really want to. start you know moving up and improving you need a lot of structure and which I had that with my.
business so like I you know had a morning routine I'd go into my work and then I have my evening. routine and I was able to just kind of build something effective and even like the boring stuff. I'd get done with my business because I'm on my business time okay I can't make something but I'm. now going to you know do taxes or finances well are you sure you did taxes because we owe about a. billion trillion dollars in taxes yeah that that was part of the problem with it but uh yeah but. you know once I got banned all my structure fell apart I wasn't able to get my Med medication so.
why I didn't have money I I had about 10,000 saved up and so it able to last me a few months but you. know I'm having to pay my personal rent I'm having to pay a business rent for materials and it ate. mon in the in the uh Healthcare exchanges though I do know uh you know whether it be a layoff or. business income drying up you can go there and uh uh even when it's not the um ah crap what's the.
word not the enrollment period you can go there in those emergency situations and then if your income. was practically zero which you're making it sound like it was you can get on something uh a plan for. basically free if you make no money but I think that's based on your previous year's tax income. and so the previous year I had plenty of no no no but what you're able to say in there cuz I. I yeah I I've seen it before uh I once almost had to do it myself uh I was very worried uh then but.
in that situation you're like yes this is this is what I made last year but guess what I just. the income has gone to zero like you say that and then they they backt check it when come next tax. season but okay well a lot of the stuff I just didn't know about plus like I said my focus was. all over place and honestly like looking back at the last year it's just a blur just because. of all the stress I was under you know like I said I was drinking a whole lot it was it was. it was really have you are how's our drinking today well actually it's really good and okay.
all thanks to your friend uh franchise killer Graham I mean he uh oh yeah yeah uh couple of. months ago he put out a video on why he doesn't drink and two things that really stuck out to me. was how he said even one drink would take away his Edge and how much he needed that for his. business and I was like oh yeah I'm struggling with that a lot too but the most important thing. he did was link a video to huberman lab on there was like 2hour video on what alcohol does to you.
and I'm watching this thing I'm just like holy cow this thing is just so much worse than I thought it. was and then Dr hubman also mentioned that chronic drinking affects like impulsivity and bad habitual. behaviors even outside of drinking so even if I you know I stopped and I was just going through. my next day it was making everything worse and I was like okay I have add this thing's making. everything worse and then I kind of started going down a rabbit hole looking into what add was well.
we're we're definitely taking a lot of looking back but I want to look where we are today in. look forward um I know obviously I mean from this conversation so far it sounds like we certainly. you definitely want to talk about the impacts of mental health and everything and obviously that's. a very important part of your life and I get that uh let's figure out where your finances are today. I mean how much money across the Contracting and I guess the 40,000 you've brought in this year. what have you brought in this year total what's your income been okay so I only started with my.
contract job in April currently making 25 but it's coming to an end 25 an hour or yeah 25 an. hour how many hours a week 40 a week no overtime but it's coming to an end H but it's coming to an. end uh yeah and it's still like another two or three months but I'm currently looking for some. new contract and because of your insistence on getting certifications I got a few of those as. well and not necessarily it depends on we don't just get certifications to get certifications no. no these are I got some Smart Ones for my field because I did I did it for 15 years so it's for.
what you wanted though yes so like I did it for 15 years before going self-employed coming back in a. lot of people are like oh you don't you aren't you're out of date so I had the contract to do. some basic it work which is getting me some more experience plus I've taken the relevant. certifications so my next job should be into like the 30 to 40 range probably about 35 an. hour so okay and just to be clear for people out there because I always talk about all the time. like I yes I do love certifications I love trade school I love Community College you know I talk. about tech certifications things like course it's always good as Alternatives if you know what you.
want to do and it's in the proper path of what you want to do but we also had a recent guest on. here who just he was going down multiple paths and he took out certifications and education and all. this stuff or all these things but didn't know what he wanted to do but I'm glad you ended up. uh cool I mean that that's good and then you want to build up the business obviously and you said. if you get it to $150,000 a year you will go back to doing it fulltime well you pay your taxes that. yes like I said I got the accountant this time so we're actually getting everything taken care of.
for this year I'll I didn't make anything for the LA last three quarters but so this quarter I am. setting aside money for taxes because I am doing a small payout to myself but it's also kind of a. mixed bag because I am I put so much of my money from my personal side back into the business this. year so how much of it is you know income versus just repayment for whatever okay I'll take a brief. moment to thank today's episode sponsor Mumu they want to help you start investing so badly that. they are giving you up to 15 free stocks just for making your first deposit that's 15 free.
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supporting the channel and providing my audience with up to 15 free stocks and that 5.1 yield on. your uninvested cash now let's get back to the program so we make like $1,000 a week from a. Contracting job before you set anything aside and we've made $40,000 this year so far from the oh. not Etsy but the Etsy adjacent the the Etsy stuff no I've made about I've been able to pay myself. out about 5,000 this year so far and with most of it coming In Like I said November and December.
what do you think you're going to make in the next two months I'm trying to get just say maybe I. might pay myself 10,000 and leave all the rest in Etsy or I'm sorry in the shop account to just you. know create a buffer for next year it I'll be in my slows period after January or February well I. don't like that the high period is $110,000 right that doesn't get us to $150,000 well no no no no. no I'm my goal is to pump a lot of money into the shop and basically create you know a three or four.
month emergency F your distribution yeah so I'm just keeping it all there and that way how much. money do you think the business is going to make these next two months within the next uh by the. end of December probably 40 50 Grand okay cool all right so we have collection of something of. something what was this collections for uh what here yeah this one uh it was a credit card that.
basically I couldn't pay on last year uh was last year yeah every all the collection stuff is from. pre uh last year and so they're not even close to falling off then yeah which is weird they don't. even show up on my credit report the only thing that showed up on my credit report or credit karma. is my student Lo Karm okay um well what I would do is I'd pull your free credit reports like your. actual credit reports that you can pull once a year that's uh on my to-do list I kept putting. it all for other reasons yeah because I mean you never know so 1,826 mhm 54 cents for past credit.
card okay and then portfolio recovery so this is also probably colle that's another $88,000. one that's a other credit card that was 8,000 I think it should be portf I have a couple of them. in there I don't think that one's eight this one is for fly recovery oh this is a weird one it's. a Best Buy one that's sevenish years old and I don't know why there like they sent this to me.
over the summer I don't know why it's still there I don't even know what it's from well technically. so it'll fall off the I me we say it'll fall off after seven years but I of your credit report M. yeah but they can collect it for 10 or up to 10 or something 247 and this is not on your credit stuff. is on my credit report which is so weird have you used have you tried app other than Credit Karma.
like the Experian app or something um I have not yet uh I mean it might be worth what seeing what. other people are saying M yeah and I do need to pull the credit report that's on the to-do list. for this month and that's as I've been putting things back together you I've been each month I. kind of like focus on like a little bit of a different thing so like September was really. getting my my budget dialed in August was getting over the alcohol stuff well has the budget dialed.
in you're going to be very happy with it I think uh should have sent you six months worth of my. budget from I use like the every dollar budgeting app so you can see I sent a PDF with all of it. okay yeah I probably uh let's see okay and other collections collections number two yeah well are. all the collections basically credit cards one of them is is uh student loan and then the other like.
654 H $654 that's from Quest I have like three things in for Quest oh I see it and that that. amount to about $1,000 but once again doesn't show on the report when was this this was also. within last year cuz from last year with the money yeah you only made 40 total last year. distributed and I don't really know how much of that that's how much I show on the payout but I. don't know how much of it was basically pumped right back into the business or I might have.
bought materials on my personal account because my whole finances for last year were a mess I'm. glad you started to sit down with the CPA because this is going to be intense especially as we get. to mhm the debt okay another collections 206 bucks this is also from Quest mhm oky. dokie oh yeah that's an SBA thing I'm trying to find I literally can't find anything on it. apparently I took a loan out back in 19 from the government or SBA loan for the business and but I.
don't know what says 174 is Du now since this isn't a full statement my question is is this. 174 as due as a payment or is that the total due I don't know I've been looking for it what do you. mean you've been looking why haven't you contacted them well I've been looking online for it and and. this is call yes email I have not called I have not emailed I've been looking on the SBA website. for it I'm trying to find it myself um yeah that's that's a mess I don't know I don't even.
know what it is and National Credit Management what was $ 6,751 that's that's a wild amount yeah. that is a student loan or part of a collection for student loan and amount in fees 1,515 was. added up student loans what student loans I went took some classes student loans private Federal. uh mix of private and federal I think might be part of the private one but everything else is.
federal yeah I was going to say that makes sense cuz that's some death wild it gets worse on oh. I know and here's one of them IRS what okay so when is this from amount Dew by June 27th. 2022 it's like when I started this YouTube channel by the way $220,000 that is the. taxes between that and another one it's about 29,000 that I checked yesterday so.
between this and the 4 the taxes on the 41 uh withdrawal yeah and where's that one is. that this one I believe so that should be a smaller one like fiveish oh eight oh no. I checked online the that one is five or six and the this one is now up to like 23. and I I sent some updated numbers on one of the spreadsheets to you guys a fun thing that the.
now it's hard to qualify for we've learned but something I'm going to put 30,000 for. IRS uh one why haven't you tried to get out on payment plan because I literally just got. my act together back in September that's when I started pulling all this together and it's I. saw the thing with the money guys and on on doing the offer I've looked into that I you're going to. kill me for this I still haven't done my taxes for last year well I I tried to do it back in.
April and I literally just did not have the mental bandwidth to do anything because I have like some. closed accounts that I had to go through all my statements for mental mental health is real mental. health is real it's everything and we are nothing if not our brain I just what's really difficult in. this conversation is anytime there's anything what am I supposed to do when we just when we. just say well I just I couldn't do it because my bra like what what can I do with that well no so.
right now um I'm making traction on a lot of stuff and I've been uh a lot of the stuff I do is you. know I hate to say kind of like a slow process just fixing a little bit at a time and so like. I started just getting the budget together back in May I was listening to Dave Ramsey a whole lot and. one of the things they said that really kind of stuck with me was you know just your first month. or two sometimes don't even try to make a budget just track your spending and just and for me like.
if I tried to make a budget I would have failed but if I just track my spending I can do that. and so I've been peace meal you know one month at a time getting things a little bit better a. little bit better a little bit better and I I I and with the taxes and stuff I for some reason I. kind of thought I could get another extension this year for taxes if I you know applied in October I. didn't realize there was an actual hard cut off and I had only set an appointment to speak with. the accountant like October 10th but so I hate to say it I'm just kind of calling it a lesson.
learned a a hard and expensive lesson learned have they how much in contact have they been uh. I've submitted all the paperwork for them I gave them a call no how much in contact have they been. with with the IRS aside from letter to nothing okay so they're very they there's not a lot of. people working there and there's a lot there's a lot of people in your situation that's just like. yeah so and their their systems are like decades old and well I did find the payment plan one and.
it's like you can pay off in 180 days which would be 5,000 a month but uh yeah the only option they. presented you well no they had like multiple options like you know pay off in a 90 120 180. or a monthly payment plan yeah and the 1801 would be like maybe two an extra two grand in fees and. expenses or if you did the monthly one it would add an extra $10,000 so but like okay and then. the hardship thing it's hard because you actually you do make money is it incredible not necessarily.
but I wonder what I actually do not know right here and it might be worth talking to your CPA. about I wonder if different mental health things which have been clinically diagnosed I wonder if. that can play into into that hardship um so I don't know that's something for you to figure. out and then I'm going to learn for myself after this as well I'll email you anything I find out. but yeah like my plan my plan right now is once I hear back from the CPA on getting last year's.
taxes taken care of and I can show the income and everything then I'm going to go to the offer phase. because I looked at that site yesterday and they need some income for you know your federal income. taxes for last year so I need you know step one step two so once I get that taken care of well. how long have you been working with the CPA I only had my first comp you know meeting with. him back in early October what's been happening since then in a for a full month so has he made. progress I've been paying off of other debts you know no no no what has the CPA done so it took.
me about two weeks to get all my finances going through because I had several closed accounts to. go through so I had to literally go through every single statement you know transaction by hand file. it sort it get everything taken care of sent that to him I sent that to him two weeks ago I called. him last week and I spoke to his assistant he's like she had said he would call me back I never. heard back from him I called him yesterday and she told me he's out of the office for a week. yeah I'm not too happy about that but because he knows the situation I'm in so I'm I'm working it.
as much as I can from my end and if I don't hear back from him by like next Monday or Tuesday I'm. just going to self file and just self file or we could just go to another CPA that has good reviews. reputable in the area yeah U some my cousins who are careful with family yeah well they're two of. them are accountants and they have a they do like rental properties and I asked them for who their. accountant was and that's who they recommend and that's this person yes and so apparently he just.
I never do that no I would go off of community reviews well I I my I trust my cousin they're. very smart people it always turns out when people get like recommended for family and it's always. on the show it just has never wored it's never worked out once on the show yeah so and I know I. I love my family too doesn't mean we go with everyone they use I would do more reputable. services for reviews in terms of just wide SLO of hundred hundreds or thousands of people who. have worked with them instead of just someone were close to well this is airm that's the thing it's.
not something like some random guy working out of a shoe box this is actual but but that's fine. um okay yeah so youe ton of money yeah okay then you pulled from your 401k I withdrew from my 401k. in summer of 19 because I was I was an impulsive idiot and I mean it was only how much did you pull. H how much did you pull all of it 30,000 and with a so there like a 10,000 hits so I got 20,000 out. of it but that's one of that's part of the debt to the taxes but also another debt basically I.
owe the I'm calling it a business debt to myself so what because I'm the IRS that no no no I'm. calling it I I I view the money I withdrew from my 401k to fund the business as a business loan. okay so I'm going to use the business to P that's what helps you perceive it then I know it's well. that way I I've been tracking it I said I'm going to give myself uh like whatever the you know the. return of the normal stock stock market would be that's what the business has to pay me back first.
so I'm going to try and recoup whatever I might have lost from not having it invested so every. single month you don't pay you're receiving $187 of fees from the IRS yeah interest rates at 4%. but it's just the fees that are being added onto it is what's killing it so you need to. get in okay I know now okay so this is the yeah we already went over that okay uh there was one.
more in here Colorado so state state taxes that you didn't pay 2000 I'm probably just kind of. knocked that out this month 2021 though what's it value today uh I believe that's about the. same I spoke with them and I set up a payment plan for it I got the ball rolling and made the first. payment the beginning of the month and what's the monthly payment just like $100 but I'm hoping or. not hoping I will have it paid off by the end of the month or by the end of December based. off of kind of what we talk about and that's an option to put on the table I mean I would.
love to I'm just is there interest rate on this uh I think it's a relatively small one I haven't. okay what this First Source balance to 8,593 what is this that should be the second credit card I. had that was probably my business credit card okay all that qualifies to not be a credit card person. is literally just a cent interest once if we're going in collections you're beyond not a credit. card person so I hope you have none open today I have none open right now not to you know really.
argue with it I was handling that for years and did not have that's great but then you didn't and. that's all that matters yeah I know and it blew up and I like to get back into it at some point but. I don't know once I have a sufficient safety net for everything so even if I lose my business or. job I have you know months of income the benefits are geared more towards college students but if. you're going to use a card use something like the fizzz card dude yeah where it's just like. you swipe it it automatically gets paid off like a debit card because I think that's all you can.
manage and the budgeting things that you've been learned that's great I'm glad that you've done. stuff through uh Dave Ramsey and everything they don't really teach budgeting very well though it's. very basic and it is like kind of like one siiz fits all so what I'm going to do is I'm going. to put you through our program and we split it out into like eight different personalities and. one definitely applies to you so go through that it's like 4 hours and there's things you can plug. into like perfect budgeting thing debt payoff calculators I'm going to put you through that. for free obviously cuz you're a guest on the show so um do that and I think that's really.
actually going that's going to apply I'll be happy to do it but I'm pretty happy with the. budget I've set up because well as long as it's working that's good but you told me beforehand. is one thing you struggle with is okay we have a budget and then sticking to it and that's one of. the big things that we teach is how to do that which is I made a few different changes to the. budget to account for days I'm not sticking with it and like some buffers and guard rails which you. know hopefully will help you know some other folks out there who might be struggling with.
ADD and spending and you know all that stuff now here's your federal student loans mhm yeah yeah at. [Music]. a month okay at least your minimum month payments aren't that crazy cuz I things and collections.
yeah I know and great and uh that's some of it um we got the debt tracker right there which show. some additional ones I have a there's more two more uh I know what is it uh basically my family. and friends were helping me out last year and so I got like 20,000 from my family oh [ __ ] me split. 10,000 to the personal side kind I help with to help with rent on at home and like another 10,000.
was at the shop for like materials and rent there okay what's the repayment agreement for that pay. when I can and the same for the friend it was a $10,000 one he was helping an additional 10. additional 10 yes and but I did you ask for that he offered okay must be great friend best friends. you know really helped me out of a lot of some bad situations before but how's the relationship with. the friends and the family now with it's fantastic because it helps that I have the previous success.
of the shop so they know I'm not just taking the money and running and not it wasn't being prited. away and so they know I'm going to pay it back and I've already made paid back a friend of mine. about 2000 so far and so it's either now what happens in this entire situation where okay you. were doing successful for a bit and we let's just say we get successful again because we're taking. we've taken some control of things okay what if a lot of the mental health things come back like we.
talked about and we head into a situation where we have been these last three years what happens then. where we owe money to the family we owe money to the friends we owe money to the IRS we have things. in collections that have only just gone into collections well so a lot of the mental health. stuff was coming because I essentially did not know what I was struggling with and I I told you. I built a lot of structure for myself but it was just subconsciously doing it and so I made a a lot. of effort to bring that subconscious stuff to out consciously so I make keep a lot more structure in.
my life I'm much more intentional about creating the structure plus I've got been getting therapy. and and you're seeing uh uh medical experts for medication yeah I so I've been able to get my meds. back up and have have those uh seemed effective to you oh yeah they they've worked plenty before. and I've been taking uh medicin and literally in kindergarten and therapy is helping yes it's. really great and um so between the therapy and uh I do some add support groups and that are just.
fantastic they have like weekly support runs and uh you know we'll just talk about what's going on. our Liv so a lot of people you know are who might be brand new to realizing they have ADD and like. oh what how do I fix this stuff and other people who've been dealing with it for a long time like. me and can offer strategies and support okay so well let's head into the checking account. mhm 285 scary what's your 900 it's pretty good yeah but it's 285 because I have currently 4500.
in a SE separate Sofi savings for emergency funds savings though but 285 in a chicken account what. if automatic payments and things happen I have three one for the phone insurance three automatic. payments yeah and everything else like utilities and rent I just pay with like vinmo or zel but uh. I think you're actually going to be pretty happy with this one overall why are you giving money. to Etsy that one I bought something and it should have gone to my personal or my business card and.
it did not and there are a few things that uh there are a few charges you'll see that hit and. that should have been covered by the business and as soon as I saw them I fixed it on the website. you know move got the right card okay Amazon Ed Reams what's Ed Reams Ed dream plus uh FL. PL ticket to for Thanksgiving say visit the family that was family Michigan so Hillsdale that's where.
I'm from and that would actually in the budget like every everything you see would if you look. at uh my Dave bramsey or every dollar app I have the budget for everything and like it shows like. my planed spending for the month doesn't make sense though if we have IRS that why is 5.1% of. spending going out to eat that doesn't make sense that's not budget yes it is that's not correct I.
know um I Bud that doesn't follow Ramsey that doesn't follow me that doesn't follow part of. what I had to do I know um I kep I have well one my eating out budget used to be like literally 450. 500 a month congratulations I've been bringing it down hold on I've been bringing it down like 50 to. 100 a month over the last few months I've tried to just cut it out completely and just my my impulse. of Nature and everything just not sticking but I slowly making the Improvement and what I did.
actually for the last month okay that's fine and if you're slowly making Improvement but you can't. tell me your budget's good though if it's it's if it's not there where it should be we can't just be. padding our cell phones on back cool we're making progress we can celebrate that fact but we can't. just sit here and say our budget's good oh yeah oh no I'm complet understand I'm not trying to say. this is a perfect budget but it's an imperfect budget that I can maintain consistently which. is the most important thing for me and yes I I'm making improvements to it every month I have IRS.
that man I just got we got to make it better so uh Lake Lakewood Alignment is that cracken no car. repair oh okay obviously that's that's necessary now there's the Thanksgiving trip I mean uh but. yeah family is very important it's like rameda ends that's more travel it's like and uh we. did something in the Denver Court Home Depot this was probably for the business but it was. through personal checking again we don't have your business so I don't even know what money is going.
in and out of there you didn't send me that but 694 there's a reason for that one is uh in October. sorry to cut you off in the October I got little uh digital lock boox and I put all my cards in. it so I wouldn't carry them around with me during the day credit cards all my cards like debit card. yeah and I was you a lock box for that instead of just leaving them at home it it was more just. just have like that ritual the fact that I'm just doing something and it's I just found I I like.
that and I'm supporting that but 700 bucks but and yeah so I went uh I was doing some work that. night with a friend of mine that's also why there a Chick-fil-A expense and I grabbed the wrong card. by mistake out of the the box I was supposed to grab my business card and I grabbed the personal. one by mistake so as soon as that happened I was at Home Depot I just transfer the money. over from my personal account to the check or my business to the personal and and you know made a. note on it that it's you know Covering Supplies and ATM with draw taken out that's $200 mhm and.
that's well also went to the comedy CB we have a a crunchy roll subscription we got $21 of taquitos. most likely and then another $24 of taquitos most likely and again you gave them money and the CIA. skies and Micro Center as well Micro Center was a business not a business my work expense I have to. buy some stuff for work I do on-site computer repair so I have to buy tools and whatnot okay. so just Micro Center aome and so you'll see like a lot of parking things all of those are reimb.
all the large purchases and the other stuff I just uh talked about I mean that comes out. to an additional 33 34% of your spending mhm so that's a lot and then the subscription is about. 2% of ouring yeah the uh crunchy roll was a trial and uh forgot to forgot to uh makes sense but I. that that was just my fault I should have made a a reminder in my phone to cancel it I didn't. but as soon as I got the notification for it I canceled it immediately so that's gone a patreon.
we shouldn't be supporting others I canel I you're right I had a bunch of them actually because once. again I'll being an idiot and I canceled a whole lot I thought I canceled all of them missed one. and soon as that every dollar is $86 for a year oh okay and that's there's a rocket money thing. for like $4 and like I'll test them both out and I like the every dollar so I cancelled. rocket money and went with I went with uh every dollar but it was 80 bucks honestly kind of the.
cheaper one compared to like rocket money or wab or whatnot so they're like 10 15 bucks a one yeah. they're also just uh you need a budgets is very it has a hard learning curve but it does so much. more well that's what I really liked about the the every dollar one is the other one just kind. of track seem to really track your expenses but every dollar you start the month off by. saying allocating where your money is going zero yeah Z that helped me a whole lot uh then Focus. mate Amazon Walgreens petmart that all comes out to an additional 7% of spending then yes.
you're going out to eat that was uh just over 5% where grocery stores was only 4% yeah so and this. month is uh been actually working on meal prep and doing like like I said have to it's not an. option yeah like I said said one month at a time I'm getting better at stuff sure and I. know and you're right everyone's going to [ __ ] everyone in the comments is going to crucify me.
on this no they might hate me because I feel like I'm kind of being a dick right now but it's just. like every like we have a story for everything so go ahead and this is this is exactly why I came. here and honestly this is what I struggled with for so long and I I'm you know I like to think. I'm pretty self-aware of myself and I know what does and does not work and I'm not using this as. an excuse to just oh this I can spin whatever I want because I know won't work no but I know that. in the past when I have tried to go like you know all or nothing just either cut out all uh eating.
out all this it didn't work because I would I'd have like either few bad days and it would just. fall off the wag in and I just like screw it I don't care and or the i' just be too impulsive. and it you know just I could not restrain myself so no that's fine transitionary periods are exist. and I put it in everyone's budget I I always give a conservative uh budget by the end of how many.
months it's going to take off and I give a couple months of uh transitionary period now we can't be. transitioning forever that's that's not going to be a thing I do have a you know end goal in. mind and where's the end goal then about you know obviously pay off all the debts and when's the end. goal hopefully by the end next year of paying all the stuff including the IRS yeah you're. you're hoping I have a five-year track record with it aside from you know everything and four. of the five years though has been down no three no only like basically a year and a half I mean.
what like I lost my business last year and I had like total sales of 60% LA or 60,000 last year. which is only down I mean but you but you took out 40 you took out 40 though last year right. yeah okay is um you're right but uh it was only down like from 21 I I made like 180,000 in sales. so yeah it was a massive hit but able to bounce back relatively well question on that then cuz.
I mean this just comes to my ignorance but then I also got to push back a lot of the sales that. were coming from Etsy now you're selling on other platforms why are we so confident that. it's going to be just as successful if not more when obviously the bread and butter was Etsy MH. uh actually I made more on Shopify last year than I did on Etsy yes but last year we didn't. make much money compared to what your goal is MH it's it's more just a confidence in both the the. niche I have and how it grow it just grew like I started doing this in the summer of 17 and it. just grew well every year and so it's yes there I am betting heavily on it but I also have and.
that's okay I love business I mean that's great I'm all about it yeah and uh but that's good how. are people finding your website so through the ads on Google and if you tried Facebook cuz Facebook. you can be pretty targeted and it's really cheap it is but since I do copyrighted stuff they I I. did try it they they flagged it but uh yeah and have you ever thought of do I know your bread. and butter again is in the designs that already exist but then you do it in your own art I I've.
been moving away from that and that's kind of setting up the goal for next year I'm making some. I actually had a custom order recently for like a spe like a special LED wall clock like 34 in you. know it's huge and I love it and I'm really going to start creating a lot more designs for it and. start pushing it out I'm not really going to try and push it in the next two months because yeah. but that out for next year plus I have a whole lot of other stuff can I see what you've made I know.
you brought a couple things cuz I curious I'd love to show this to you this one this I think you're. going to really like this and let's see it uh if you want to like pull it around uh to where you. are this one a little bit of a personal one I noticed something on your wall which a pocket. knife for here Brandon you want to come over here and be cameraman [Music] yeah.
oh yeah sorry didn't yeah problem with flying in you can't have your. pocket knife on I also have a hammer for yeah please don't I'm helping I'm helping. guys right I have been playing this since literally day one school was High School. playing playing playing what yeah a little messy but I hate that [Music] sound the foam Bo half.
it's a thing it's a it's a creature is a gr Halo Master Chief oh it is uh Brandon recognized it. film guy he recognized it but now that you say that oh I recognize oh that's so cool [Music]. basically kind of yeah but dude that's sick wow how long did that take you about an hour or so.
this takes about an hour to make hour that took an hour wow yeah good for you that's so cool and it. come with a power cord it had LEDs on the back really yeah whoa we're going to have to we're. going to have to do it in the end so you guys can see it now we we'll have to plug that in that is. so cool dude I love making those they're so much fun I have them for like all sorts of and you're. just in the shop doing that yourself like C that's so cool yeah and you said I had other one which.
oh yeah I didn't think uh oh here you go I might commission you for something I would love it and. I didn't think you'd be yelling at me too much about these so that's so cool oh look at that. and I actually kind of have one of those kind of hanging on my rearview mirror so whenever I. start thinking I might you know drive around and do something you know impulsively stupid I can. so funny so yeah just I love you're very talented man you're very talented I love it so like again.
I I think this is really cool in the future can we please pay our taxes though yeah I'm going I'm I'm. getting that taken care of and I'm getting ahead of everything or basically laying the groundwork. a lot for this year to you know take off and get ahead of everything next year that's so cool to. kidos to kidos to kidos I I didn't think you would yell at me too much about having Taquito in the. budget and I actually don't have any I promise you I do not have any uh gas station tequito except uh.
I take that back one time one or two expenses on the when I was taking going down to the wedding I. was actually off my medge that day and so my no don't do that yeah it it was a mistake so. my appetite was through the roof but other than that I did not eat at like you know tequito at. the gas station and it was only the $200 in cash with that I withdrew how often do you find just. yourself uh uh forgetting to take your medication this wtim not very often this wtim kind of a one.
of thing I have like a pill container and with all my supplements and just for whatever reason I. did not have my Aderall in it for those few days okay so but yeah the Aderall shortage how' that. affect you a little annoying but overall not too bad I'm usually able to get uh get everything on. time okay cool um all right and then our uh yep in the sofa great getting yeah uh well do you. have direct deposit turn down I've been trying I submitted the to you get that to 4.6% I know and.
I submitted the paperwork to my company and they still are not splitting my paycheck lot and I have. half my paycheck going to SOI now so what will help you here because we have uh obviously we have. a tremendous round of death dep and it's rough it it is rough but we're having a budget that you've. transitionary period and I'm again I'm happy for that we can celebrate that don't think that I'm. not celebrating that or I'm just trying to get it is trying to shoot for the perfect budget now.
every month is going to be the same there's always going to be the things that pop up but the bull. stuff that we're choosing to do still is that's where I really want to get that to True sacrifice. like I true sacrifice getting out of debt now I don't have I I have my own mental health issues. I do not have that uh but I was able to cut to zero when it comes to I know it can be done um. no paid for fun I went to the parks yeah lovely which the fun budget has been going down every. month as well too figure how to get to zero so what can we do to help you would it would it.
help if I made a budget of what I think would work or what's what what are you trying to get out of. this conversation I would love to see your budget and uh you know how it compared up to mine I know. there can to be a lot of differences or have to make a few probably a few tweaks as well just. for like the mental health stuff and because and then uh honestly just being on blast with. everybody like this and basically kind of creates uh like novelty and interest and urgency like so. that's for with when you have add that is what really drives okay your ability to focus and stay.
motivated on a task so by doing this I'm you know putting out all the stuff online and I hope to be. back in like you know six months and 12 months oh with a followup and so now that I'm committing to. this you know and also follow-ups along the way if you want to put them in our newsletter we. send them to guest we send them out to everyone who's subscribed to that as well which is a good. portion of the audience here so um so so yeah so yeah the budget IND accountability is going. to be a huge help and what's your rent again 900 okay saving that moneyy I love when my money is.
making more money in the Sofi 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 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 cool 900 for rent and rent. is Insurance do not have it I'll get it at the end of the month yes okay I'm going to put 15. uh health insurance what are you doing right now it's I have a weird health benefit plan.
since I'm a subcontractor so I don't have like a full but I do have some which is just covered uh. in my withdrawn from my paycheck so I don't it's withdrawn from your paycheck okay I don't know. how much it is cool no car payment no I have a that's good how much in gas a month right now. 4 to 500 because my job I have a Nissan Titan oh but it's it's for your job so you're ready. so I do get some reimbursement um but that's also kind of why I eat out a lot because I'm traveling.
all day and yes I know you and you know Graham if he's watching kind to yell at me to pack of lunch. and that yeah well that's that's part of what I've been doing um with restricting the eating. out budget now that I went to just like a hundred bucks a paycheck to cover for two weeks of eating. out well we let's build your budget first so we have your guest what's about your car insurance. uh 90ish I believe not too shabby okay and phone bill also 90 though my phone needs to be replaced.
so it's probably going to jump up to about 140 150 well why Finance it though that doesn't make. sense what what let's get to a point where your minimum monthly payments are less big let's just. let's put the in the budget for a month that you go and just get your phone have to be the I could. just pull out of yeah I could just pull out of you know the emergency fund if I need to but I. phone was like 3 years old fight on behalf of the business and it just I mean yeah that that. is you're right that is one of the things I'm looking into my accountant about once I once I.
get a hold of him to what can I write off grocery we approved easily 250 bucks gives 2,500 calories. a day plus snacks as well so I currently have a budgeted like 350 400 and 300 yeah and I started. looking online like you said uh at well HB Safeway seeing what their meal prep stuff is so yeah so I. again we did a HB and what you can do is you can go online there and then your meal prepping put in. your menu together you sort by cheapest yeah and then you're able to usually just get the.
store brands and then if if the pickup option there is free and it is at HB it prevents you. from going through the aisles and picking up all the extra stuff like o that sounds good uh. okay so food 300 tot paper fund uh this is just everything else you need to just survive uh 100. bucks okay medications how much a month about 60 and mental and therapy therapy now down to. 320 okay and uh utilities and internet about 70 to 80 we'll do 80 then to me yeah and I.
do have a gym membership how much it is one of them is 25 a month and the other. one's like two one's Muay Thai and one's just strength training so like total so 150 total. okay anything else you need to survive uh the Youtube subscription that's my only I'll give.
you $20 for subscription and the other ones we talked about which is going to be probably. an extra 60 a month for both of them for for what the one we talked about beforehand some. okay so something you have to pay for that's going to be 60 so I'm giving you a total mhm. of 80 okay uh well what else and uh what else we need to survive please bump it up.
to 90 CU I need that Focus M as well okay 90 M what else and pets I do have two a cat and. a dog so about a 100 a month they're both old so they need you know the fancier nicer Health Food. okay I don't know what your business expenses are I can't really go through you didn't give. me anything that so I know that was a choice on my end um it would have been very helpful though. it's hard to do this without a full picture M and I I got so much I need to sort out on that.
one I wish I could I just want to get that one sorted out first you know maybe next time around. if I'm back here I'll do that but uh okay so nothing else M and then one of the things I. did put into myself is I you call a like a bad day fund for $100 just basically when something. goes sideways and but what if we have bad days boom boom boom boom don't have many of them. yeah that's what you say but look what if you do what if you do though you're giving yourself this.
excuse well no I'm giving myself like a basically if something goes sideways it doesn't blow out my. whole budget so I have like an extra $100 okay I eat out once all right I can't I'm not going. to beat up myself because I went over everything it's not it's not about beating yourself up but. it's about keeping yourself accountable we don't have to go just like straight up negative with. it like when I you know I'm trying to lose weight when I uh eat something bad I'm not. like but it's just like oh it happened okay what can we do to prevent it in the future so.
instead of enabling ourselves by giving us the ability to have that yeah and but the thing is. it's it's there but not to be used and you not open to change yeah oh I'm just saying like this. is what I found has been working for me and I I like I said I tried which is which is great. we found that work for you but aren't we just trying to always get better though isn't that. the goal yeah okay okay so be open okay 3,000 bucks essentially 2,975 is what your budget is.
with your minimum monthly payments for the student loans as well and the Colorado thing yeah nothing. else and I know there minimum there were there were monthly payment options in the collections I. don't know so 4,000 comes in before stting a side taxes on the other stuff I bring in an extra 2,000. a month from both the shop and side hustles yeah yeah what are the side hustles I give plasma and. right now I'm not I do I do door Dash I'm not doing it right now because the shop is making. up for it but once things start slowing down I'll do that more often so you can look at an average. of 6,000 a month plus whatever I'm going to start making up the new job once I get it so so you can.
do color matching really well MH what I want to commission you for is in the new office Financial. audit logo LED and then we'll obviously put the C I thought about do I honestly thought about. doing that but I just didn't have enough time to get everything off yeah I think we're gonna. we're going to pay for it we're going to do it because you obviously do great work thank you um. not to go negative but I just I don't know what to do here this is what I would do this is what.
I would do and this is what I have done in the past when I knew hey my Situation's I'm going. to go crazy intense absolutely wild right now and sacrifice everything mhm because if I don't the. extra fees on the irsf is going to continue to build I owe my family money I don't want to owe. my family money especially at 40 I don't want to owe my friends money at 40 yeah my re retirement. what's it at nothing okay that terrifies me so what do I do I sacrifice instead of.
enabling myself for potential mistakes mistakes are going to happen but we don't give ourselves. the wiggle room necessarily to have them in the we don't put it in the budget to have mistakes. if mistakes happen we're like okay why did that happen what can I do in the future to make sure. it doesn't MH so I wouldn't put it in the budget because you're you're excusing yourself already. preemptively and I I don't like that it might work for some there are going to be people who disagree. with me that's okay and well that's if you don't mind me saying that's part of the problem with. uh just like add is because it you fail so often and are you going to use that as a crutch though.
no I I don't this is a handicap not an excuse and okay and I have to make sort different allowances. for thing and I hate to say it but part of me expects to fail but what I do and this is not a. negative way it's okay it's therapist yeah I know but what I'm trying to say and you know what other. I want other people to know is okay you expect to fail but I plan to how do I minimize it how.
do I you know drag out whatever how I'm whatever plan I'm on how do I keep fighting and you know. working it as much as possible without giving up and then how to bounce back and recover as quick. as possible and so that's what I've been focusing on I don't want to be mean yeah and I like you as. a person and I like you as a business and I'm going to pay for the thing as we talked about. I don't think there's a point of me continuing this conversation no I'm listening and you have. everything made up in your head no I am going to you got this budget I will I'm going to do.
everything possible to stick with it and like it's but I when I say I know I'm not going to. it's not saying I'm not going to stick with it completely I know there's something's going to. go south I'm going to have a bad day something going to happen but I'm going to bounce back and. try and stick with it as quickly as quickly as possible so my hope is if I have a bad day it. doesn't turn into two three 10 bad days it's okay I have a bad day let's get back on the saddle and. keep going so you have the set up for me and I'm going I will do the best I can for it and I.
want to because I got so much debt and I want to pay it off okay okay so what I would do I would. follow this budget M I'd get on a payment plan with the IRS MH I'd talk to your CPA about it. and last year's taxes because obviously that's going to impact us as well because I don't see. that right I don't see last year's taxes yeah okay so and it might be switching to a different CPA. that's not recommended from family that has good reviews in the area yeah and it is going to take. time it's not going to be an instantaneous thing but you already have a lot of the paperwork that.
you provided for the last CPA that you can just migrate over okay so it going be faster in order. to get there what you have to do is sacrifice now I would pay off the collections negotiate. them yeah that's that's on the plan um it's going to be a pain in the butt and with you know a lot. of that you deal with you know the consistency that is required for negotiating and Collections. and being persistent it's going to be a tough work because you have one two three four five. mhm six things in collections so that's six things you have to negotiate one at a time.
mhm people like you and many times on the show who have said because I did $1,000 saved up mhm. trying to pay off debt and it put me in a worse situation than I was before let's actually be an. adult and accept that maybe it's not enough and we need to update it especially since we try to. do one size fits all and so yeah so that's what I'm hoping to do or not hoping my plan so sorry. little rants go ahead I understand so yeah I'm going to have 8,000 in the emergency fund and then.
I'm just going to start throwing everything after debt I'll start definitely make more progress on. the IRS hopefully I can negotiate some or be do an offer and then just like you said just start. knocking them off and see what more I can find out about that uh collection stuff because I. don't know why it's not showing up I know it's so weird but yeah when it comes to spending a budget. obviously you know progress is being made and we love that so it just wasn't perfect so it's. on the way because of that 5 out of 10 debt IRS debt collections automatically 0 out of.
10 emergency fund $22,000 2 out of 10 retirement nothing 0 out of 10 real estate nothing so 0 out. of 10 that's a hammer Financial score 1.5 out of 10 make sure to check out all the resources Linked. In the description below they are what I use or would use in specific situations thanks to all. of our patreon producers for making this episode possible if you want to participate in an episode. of financial audit and your able to make it to Austin Texas please fill out an application in. the survey Linked In the description below you can also send a link to your friends or family who you.
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