Dude Is Going Into Debt To Mine Crypto

0:00Hi, my name is Michael. I am 25 years old from San Antonio, Texas and this is Financial Audit. So what do you do in San Antonio for a living? Loaded question. Very loaded question. A lot of people make fun of me because I have multiple jobs. Why is that a make fun of? I don't know. Okay. I don't know, but they do. Sure. My business partner at one of the jobs at Heroes Hideout, a card shop that I'm one of the owners of. He likes to tell everybody that I have like eight or nine jobs at any given time. um so you're part owner of a card shop i'm part owner what's your percentage of ownership i own 30 30 okay how'd you get 30 uh well when we were talking about opening the thing up um i wanted to be a less um i wouldn't say less present owner but a less um

0:57less present owner oh sure um i wanted to be the guy in the back kind of sitting like uh like Wade from Kim Possible and doing all of the stuff in the background while he was on the ground doing all of the, not all of the heavy lifting, but most of the heavy lifting, the day-to-day work, the managing. And so we figured that a 70-30 split would help with that. Okay. So the business partner like runs the business mostly? Yeah. And I do like the business. How much did you put into it? Not very much. Not very much. I think our actual split on paper was 700-300. What? And then we put, yeah, well, I had a large collection of cards and he had a large collection of cards that we also just put into it.

1:36Is this in a brick and mortar? It is, yeah. In San Antonio? Yeah. Yeah. It's off of 410 in Marbach, the SeaWorld area. Okay. Oh, interesting. Okay. And then what are the other jobs? The other one is my main job. The one that I get the most income from is a business consulting firm. It's my dad's business owned and run for like 35, almost 40 years now. Oh, so he's a business consultant? Yes. Yeah. Yeah, so we do everything from tax preparation, accounting, bookkeeping, consulting, and that's where I – You don't consult people who get into like tens of thousands of dollars of credit card debt, do you?

2:11No, I tell them to not. Why are you doing it yourself then? We'll get there. We will? We'll get there. We'll get there. It makes sense. It makes sense, I promise. That's the second main job that I do. Wait, is Heroes Hideout your shop? Heroes Hideout is my shop, yeah. How'd you spend$810 at your own shop? shiny cardboard is a really addictive hobby and I don't get discounts I do now but I didn't before whose decision uh both of us both the owners okay what's your other job uh the other other job that I make money from is uh well it's the side gig it's the the youtube channel production company that we run um they brought Or some movie they made.

2:58Yes, yeah. Greg and I, Greg behind the camera over there, we run a small production company. Really? Yeah. That's cool. And that one does not bring very much in. So what do you bring in on a monthly basis on average total? An average monthly for me is, I want to say$7 ,500. For or after taxes? It'd be$6 ,500. That's after taxes. Okay. Now, a lot of the, are you on a salary or distribution? distribution i'm on a salary for both for both the card shop and for my dad's business i'm on salary okay okay i don't uh don't count uh what's your salary in the card shop i make why don't you count distributions wouldn't you get distributions well it's because distributions vary so i don't put it in my monthly budget so is it not a very consistent business no it is it is it's just it's a newer one it's been open for about a year what's your normal distributions on a monthly basis there i spend it so that's okay that's where it comes well why because you put the money so you spend it but then he gets 70 of what you spent anyway right well he does the same thing but we're not here to talk about his card habits i told him yesterday if he spent the same amount of money uh that he spends at the shop on retail therapy on an actual therapist he'd probably have a really good therapist okay but you probably say the same thing about me so are you w2 at the card shop?

4:21I am. Okay. Okay. What comes in on average from, I know this was everything included, but what comes in on average from that production company job? Um, on a good month, it's like four or 500 bucks. Okay. Okay. And that was included in this? Uh, no, cause I didn't have anything come in last month from it. When it does come in though, are you setting a little bit of money aside? Cause you're not in a bad income situation. You're not actually, you're in a pretty decent income situation because if you're sitting because that self-employment um from that income yeah and self you'll want to definitely be saving up money on the side even if it's not that much just don't want a big bill coming and you're not having money because i agree also there's only a hundred dollars in your checking account so if a tax bill came today what would you do you wouldn't oh well i the reason why my checking account stays low is because it's passing through for my credit card payments.

5:18So all of my bills except for my mortgage and my car payment. I think, honestly, in a very, very long time, kind of in the most insane credit card debt I've seen. I would agree. Why the possible f*** at 25, only halfway through your 20s, business owner makes good income. Makes good income. why are you in tens and tens and tens of thousands of dollars in credit card debt with insane minimum monthly payments? Yes. I, yeah, I think you're looking at the business card right there, right? Oh yeah. 600 and something. Yeah. So, uh, last year I bought a house, uh, is in October. And before that, uh, my girlfriend and I were not merged in our finances and I was doing fairly well.

6:09I was putting like four or five hundred dollars a week into savings and just like doing fun things, throwing money at the production company so that we could do fun events and videos. And once we got into the house and merged finances, I didn't adjust properly. Well, why are you guys fully merged? We are. We are fully merged. No, no. Why are you guys fully merged? Oh, because we live together. that's not how it works we're planning on getting married next year okay planning on getting married next year why aren't you guys engaged it doesn't matter in this situation but great question alright so I don't know it's a little risky to combine finances before legal protections around marriage yes well that and we didn't have a discussion about finances before we merged And so he was spending the way that she likes to spend and I was spending the way that I liked to spend.

7:09Hablas Español. Spreys to Deutsch. Condénosque. If you used Babbel, you would. Babbel's conversation-based techniques teaches you useful words and phrases to get you speaking quickly about the things you actually talk about in the real world. With lessons handcrafted by over 200 language experts and voiced by real native speakers, Babbel is like having a private tutor in your pocket. Start speaking with Babbel today. Get up to 55 % off your Babbel subscription right now at babbel.com slash Spotify. Spelled B-A-B-B-E-L dot com slash Spotify. Rules and restrictions may apply. While I was making full payments on my credit cards and taking trips with the card points that I was getting and with the adjustment of getting into a mortgage, which was three times the price of the rent that I was paying and merging finances and not having the discussion.

7:56I don't have a statement for you. What's your mortgage? The mortgage is$21.75 a month. Yeah, I mean, for the income, but that's just your income, though. Yeah. What's the overall mortgage balance? The mortgage balance left, I think I wrote it down. Hold on one second. The balance on the mortgage is$246 ,746.91. What's the house worth right now? $258. Yeah It's not Great of an equity position How much did you put down? We put 3 % Okay We? Yes Are you both on the loan? Yeah we are Oh jeez That's so fucking risky That's so risky If a breakup were to come No one hopes for a breakup No no I don't even think that'll necessarily happen You guys are planning on getting married But you never know Yeah, yeah.

8:58I understand. That is a situation to get into. What's the interest rate on that thing? It is 5.99%. That's a 6%. Okay. Okay. Okie dokie. Yes. So where'd you, again? So. Why? The business credit card one, that's for the production company. I added that in there because when it doesn't make money, I'm responsible for paying that. Paying what? The credit card. Oh. and that happened because when I was in a good spot. So is the business on this? Are you on this card? Is your business partner on the card? What's up with this card? So I own the production company full out. So I'm the only one legally responsible for it.

9:41You said it brings in on a good month$500? Yes. The interest that's accrued on this card is$500 on a monthly basis. Right. How do we have a$21 ,690 balance on a business that brings in on a good year, a good year, a good year$6 ,000 according to your numbers? Yes. So I was paying those payments out of pocket. What even was the$21 ,690 though? I started getting into live streaming and wanted to make a bigger jump because it was doing really well. And we bought a bunch of equipment. And then after I bought$3 ,000 worth of equipment that I was ready to pay that off, I was, this was back in 2021. I was dipping my toes into crypto mining.

10:27This is where I'm going to get judged. Don't dip. No dipping. You don't need to dip. Yeah. And it felt like a very comfortable dip for a little bit. And then it very quickly became a not very comfortable dip. And I got my coworker into it as well. It's a balance of a business credit card. Because I bought the equipment on the credit card. What? equipment is$21 ,690? Graphics cards. Oh, kill me. Yeah, that one. So what happened there is I got two graphics cards, one that I fully paid off in cash and then the other one that I put on the card. Okay, there's $40 ,90 is not$21 ,000. The$30 ,90s at the time were really hard to get a hold of, so they were like$3 ,000 apiece.

11:11But you don't get them because they're not worth$3 ,000. You're absolutely correct. They're not. especially not anymore. And I got my coworker in the time, I was telling him about all of this, and he dipped in 20 grand for himself, not from my business, from his own thing, getting a bunch of graphics cards. And I was like, hey, man, you should probably slow down. This isn't a great idea. For crypto mining? Yes, yeah. And then he got me into it. This is your production company business card. This makes no sense to me. This makes no sense. Yes, I fucked up. And that one is really, really on me for that.

11:47and that's why I am also fully responsible for paying off that card. When did you realize you f***ed up? About the time that Ethereum crashed. Okay, and when was that? Eight months ago. So you realized you f***ed up eight months ago, yet you only have about$300 you can spend on this card before it's maxed out. Correct. What did you do in the last six months, my dude? So when we merged finances and moved into the house, I redid the budget because the budget was really tight at the time because I wasn't making what I make now. And we on average had about three or four hundred dollars left over in a month.

12:22And then the credit cards kept on climbing up. And a couple months ago, I after really trying to push for it. You budgeted. Right. When I was budgeting, and this is the important lesson that I learned here, is when you're budgeting, include interest on whatever's not been paid off yet because the interest was making it so that anytime that I was trying to pay anything off, I wasn't actually paying anything off. I was just climbing myself into more debt. Well, you don't try to get out of a bunch of the debts at once. You focus on one at a time. Yes. And then you minimum monthly payment on the others.

12:51Yes. Whether you're avalanching or snowballing, it doesn't matter. Yeah. Yeah. So three or four months ago, I really like hunkered down and gotten this. That's why I have this budget that I sent and started actually like, hey, this is a problem, sat down with my girlfriend and went, hey, we have a really big problem, like a really big problem. out. Yes. And I showed her and I said, look, we have to pay all of this off that we didn't just have that. We had the mortgage. We had the car payment. We have a couple of a firm loans. Okay. So what did you do? We started budgeting better. Better, I say.

13:34I know you have your notes and that's why I'm here. Um, we started budgeting better and really like hunkering down. Um, I got into therapy and got her into therapy too. And, uh, yes. And my therapist encouraged me to, uh, uh, get myself a better wage because I was not getting paid what I was worth. But just, okay. Yeah. Stop for a second. Cause you laid out your budget. We'll put that on the screen okay so we have auto insurance car payment gas internet utilities food what's food is that groceries food is everything from fast food to groceries yeah okay 700 bucks but for two people it's not insane yes mortgage pets i'm spending zero i just recently redid that it was at 200 as well but i were spending at 200 yes gym reasonable lawn pest therapy okay that's fantastic but in here in your reality i mean first of all yeah i want to thank today's sponsor opus and this is an exciting one because you could win a thousand dollars and here's how it works opus clip is an amazing ai tool that will turn any of my videos into a series of viral clips in just a single click all you have to do is head to the description below and just grab the url from any of my episodes, then head to opus.pro and sign up for a free account, paste the link, and get a bunch of clips with just one click.

14:58Two weeks from today, I will be handing out prizes to whoever has the most views on their YouTube shorts or TikToks. First place prize is$500, second place prize is$300, and third place prize is$100. Then I'm running it back for a second round so that everyone has a second chance to win. And then finally, after the second round, whoever has the most views overall they get a thousand dollars the only rule is that you must tag my tiktok slash youtube channel at and put youtube caleb hammer and hashtag opus clip take over in the video description slash comments of your posts and make sure you put your instagram handle in your comments or description so that i can contact you if you win good luck to everyone and thanks to opus for sponsoring this episode all transportation together was 777 that doesn't come close to anything that would make sense in here yes insurance and my my car insurance actually my car insurance was at uh 240 a month and then last month because it was renewing they tried to increase it to 350 and i shopped around for a little bit and got it down to 83 and one of the things that you may or may not be too happy about is that uh i paid it i paid the six month all at once for the new plan.

16:12So it's like$600 for the six months. Wait, why would I be upset at that? BJ's Wholesale Club makes holiday hosting so easy, we called in the ultimate host to talk about it. Mrs. Claus here. You think Santa has it tough delivering all over the world? Try cooking for hundreds of elves. Good thing BJ's offers low prices on all the menu must-haves, plus free same-day delivery on your first order of$100 or more. No more squeezing in trips to the store. The only squeezing here is the big guy into a suit after dinner. For terms, visit bj's.com slash holiday and get the same great prices online as in Club.

16:46Sometimes that makes the bill lower, does it? It does. It did make the bill lower. That's why I did it. Why would I be upset at that? Because I'm also accruing interest on the credit card payment for the whole payment I did. 10 % of your spending, first of all, not included in here,$810, which was not included in your budget, goes into the business and you're barely getting anything from it. Okay, cool. And then he spent 7 % on bull eating out. Yep. Miscellaneous extra bull 7 % subscriptions, almost 3%. Other large purchases. I mean, so some other large thing like toxicology probably have to do that.

17:23There's United. Certainly wasn't to come here. No, it was not. Lawn care and some Casper sleep thing and pet watch that. Oh, you got all of the big bills on there. Those were me paying off a bunch of firm bills. Cable and Chewy and$264 of Amazon spending. Yeah, that was all 20 % of your spending. 20 % of your overall spending was those few things that I just said. Yes. Because the payments were that big. 20 % of your spending,$1 ,566, not including your budget. So, okay, three months ago you made a budget. Awesome congratulations. It only matters if you follow it. You clearly didn't. And this was your most recent statement.

18:03And so again, you've realized these things you budgeted. Why possibly are you only$300 away from hitting a$22 ,000 credit limit on a credit card? If you were budgeting the last three months, this card would have had more progress on it. And we certainly would have been spending$61.42 on purchases on it. I've been snowballing debts. So I paid off a couple of loans. The Casper was a mattress that we had bought. I paid that off completely. The fight camp was a bit of gym equipment that I bought for myself. I paid that off completely. The rest of it, you're absolutely right. Bunch of bullshit. Yeah.

18:45And what we don't do on a card, even if we're snowballing, if we're in that system, we're not spending money on it. And yes, these are business expenses. Yes, you can write them off. But if we're not paying off the card, if we're not even coming close to paying off the card, and you have insane interest accruing it on a monthly basis, and you're almost the max, we put these in a business checking account is where it gets paid for, my dude. So you're not adding to a balance that gets $4 ,000 sucked away from you this year so far. From your business, that makes what? What was it again? $6 ,000 a year?

19:19$6 ,000, yeah. Yeah,$4 ,000 this year so far has been sucked from that business. It's going to be$5 ,000 by the end of the year, if not more, at a 24.49 % interest rate. It is a problem. stop this stop these payments put them on a business checking account yes sir

19:40okay so we have your mortgage we have your business card and here's just an other insane one now this is just that is her card her card now she's not here do i have access to her spending accounts oh yes because it's all through my chase account yeah yeah yeah so this was a card that we We got as soon as we got into the house because she was. We got, she got. Well, she got, yes. It's only in her name, correct? Yes, it's just in her name. Okay, then she got. And I encouraged her to do it so that we could start getting points on that one. Yeah, yes. Yes.

20:20And I didn't have any access to see it. I just like was making the payments on it every month. And then as soon as I shot it, it was bad. As soon as you saw it, you didn't have access to it. If your guys' money's combined, you're sitting down on a monthly basis and going over what the accounts look like, what the spending was, what the budget was, and what next month's budget is, yeah? And we do that now. Good. Yes. Thank goodness. Yeah. As soon as I saw it jump from$4 ,000 to the$8 ,000 that you're seeing now, and I went, okay, I can't not take care of this anymore. So this is$8 ,640. Yes. With a minimum monthly payment of$292.31.

20:56cents death insanity death death death 207 of interest lost a month 208 rounded by one cent

21:12okay 160 116 dollars of purchases on here it doesn't make any sense we got those switched over those aren't coming out of that account anymore it's coming out of the one that we use so you day to day right before you showed up here because again this was just this this just happened just like a couple this is a couple it did just happen amazon amazon amazon you're and this is her and she went to the your shop and spent money there it's a popular place on some snack vending machine lovely we need to do that i don't know what se 40523 is maybe it's gas that's gas only nine dollars of gas uh is it in bernie does it say bernie on there yes okay then she was getting food at the gas station taquitos okay on a card that we can't pay off on a card that's losing interest kill me now i have been i have been making her lunches every day now so that she stops going well she can't make herself lunch she's not a responsible adult i make it because i love her that's her i can support 100 support that 1 148 dollars has been sucked from her existence in all y 'all's future this year so far in interest at basically a 30 % interest rate.

22:25Now we have a Chase Sapphire card. That is the main one. This is yours? Only you are on this? Yes. That's the one where all the bills come out of too. $8 ,152. Why? Why would bills come out of a credit card if you're not paying it off again? Stop with this. You're f***ing with me. Are you memeing on me? I'm not. What is the balance on that at that point? $8 ,152. What's it at now? It is at$4 ,643. And are bills still on it? My bills are still on it. That doesn't make sense. If there's that, if that, we lost$138 of interest on this, which means you're losing still about$75 on it a month, even if that bounces.

23:06Yes. We're not putting bills on it. It doesn't happen. The minimum monthly payment of$219, it's probably at what? Like$150 now, something like that? Oh, yeah, but I'm making more than the – this is the first one that's getting paid all the way off. Well, second one that's getting paid all the way off. The first one I think I – Oh, bills. We put bills on here is the words he said. Bills? Bills? Bills is what we put on here? F*** you, bills. They're not bills. Oh. Do you know what pink means? It means bull****. It means you don't need to be buying bills. I put bills on here. Whataburger, Heroes Hideout, PayPal on something, Positive Vibes, McDonald's, McDonald's, Brewhouse, Ramen, Little Caesars, Your Shop, Tacos, Super Groupies, Your Shop, Raising Cane, Uber Eats, Your Shop, Something Watches, and Sonic, and Amusements, Amusements, Your Shop, Michael Stores, Sonic, PayPal and Out, oh, Blizzard, something, McDonald's, Sonic, Amusements, and oh, we got some taquitos, and Alamo Draft House, or something, or Alamo something and oh well you're in san antonio so maybe it's the actual animal i don't know sonic drive-in your shop amusements you do this amusement thing every second of your life barnes and noble your shop your shop nyack's amusements amusements casper sleep why is there 144 dollars from casper sleep because you didn't get a mattress what is it uh it was pillows you didn't have pillows we did they were just three years old okay oh my god well i guess i don't know what the average person's supposed to do but i slept i didn't either just recently i think i had the same pillow since i moved into college until no maybe even like through high school until just recently but i don't know if that's what people are supposed to do i always told it was really bad for your skin it probably is well i mean i change my pillowcases constantly but yeah yeah wash mine like no i mean i probably get it wrong but you definitely went and got expensive expensive yeah it was two there's for two pillows pet watch pet watch talk go pet watch is the pet insurance why are you getting charged so much all the time is it all the time i don't know 14 bucks 15 bucks there 100 bucks there oh yeah i need to get that checked out i don't know what that is yeah your shop your shop your shop mcdonald's sonic your shop mcsonic mcdonald's uber eats your shop sonic taco sonic your shop your shop uh usps i mean that can be okay mcdonald's torches chinese uh dinner diner watch gang your shop tacos mcdonald's you're killing me you're ruining me you're destroying my existence right now mcdonald's chipotle your shop five guys HBO Max Amusements Avene $503 of interest Charged this year So far Stock to immune $95 in interest In fees so far This year And this is at 24 % 23 % Bills These are not Bills These is Again I want to make sure It doesn't show any Personal information Before I show it again Okay so two pages Two pages Pink lines Are bull Pink lines Are bull These are not Bills So do you want to correct what you said?

26:29Some of the bills are on there. And then the rest is you're just f***ing around. 99 % you're just f***ing around. So my spending was at$200 a month, and then I was bad at spending, so I cut it down. If you have cut it down, this was like two weeks ago. This was like two weeks ago, so no, we didn't cut it down. You're like, okay, you know you're coming on this show, so we act good for a week. I don't count that. So why are we going out to eat, and why are we spending that much money, Why are we going crazy? Again, 7 % was on bulls*** food and other miscellaneous bulls***. An additional 7%. Most of it on there.

27:06Some on a checking account to come, but not much. Why are you doing that if we have this really bad debt and you decided it's really bad? You decided six months ago, oops, I made a decision. Why are we eating out every single second of our life if you know you want to get out of the debt? Especially for the sake of your business. You have employees to take care of. I do, yeah. multiple um it's it's a mix of poor time management and laziness uh about half the time i'll make something at home uh but i'm working from nine in the morning to six o 'clock in the evening and then i'm working the other time food every day i do make double not make double make double damn new shirt

27:55i'm afraid if i made a new shirt you'd go spend money on a credit card and buy it i very intentionally this is a funny little side bit real quick greg said that we should have gotten the taquito shirts before we came here and i told him that you said very specifically do not do that if you're in debt you're absolutely damn right so if you're in debt don't buy the taquito shirt Absolutely not You would have ruined me You already have American Express gold card Your version Yes that is my gold card I'm having heartburn I need to eat a tongue Like crazy It's the ranch The ranch Ships that we had For one second Now I'm on this bad boy No worries On here we have$14 ,191 With a$414 In a monthly payment these minimum monthly payments are stacking up and they are insane they are drowning you $275 in interest stolen from you $1000 of purchases on a card that's $800 from being maxed out why are we putting$1000 dude you're killing me I don't know I don't know again yes sure you may have corrected things for a couple weeks but you decided six months ago that things were f***ed up and you're walking in two weeks old statements and I'm seeing this.

29:15What am I supposed to think, man? That's why I'm here. Yeah, absolutely. Get some better strategies. Amazon. Amazon. Some Apple payment. Amazon. Join Fight Camp. Oh my gosh. That got canceled too. Cable, good. Funimation Productions, I'd cancel that. I did. I'd cancel all of this too. I'd cancel. That one also got canceled. Amazon, Disney Plus, I'd cancel. Yes. Disney Plus I don't think did but once the show is done you can cancel it Brewhouse, Kindle Apple, Amazon Dropbox, if that's for business put it in your business checking dude Amazon I'm glad you're taking notes I do appreciate that Patreon, I'm sorry buddy I cut the Patreon out too good, because you don't give people money right now you get out of debt then you can do that Amazon, Apple more Funimation Stylus Summits Stylus Summits that's my friends thing that I support no supporting you support yourself and then you support more in the future when you're in a better position MoviePass you don't need to be doing it I know yes it saves money then more tickets and I know you're big into filming all that good stuff you can't afford it right now so it's not a thing alright MoviePass and all these Apple subscriptions or payments you got because I don't know where they're going you gotta stop Well, this one's at a record store.

30:39Yeah, I stopped the Apple ones. The only one that's currently there is Apple Music, and it's because I pay for a family plan and a couple of my friends are on it. Is that a car wash subscription? That is a car wash subscription. Cancelled, correct? We talked about this one. Okay. It did not get canceled. It is now. Little Caesars, Amazon, Uber One, canceled. So you have a car. You can get places. Yeah, yes. $1 ,471 on this card alone has been squeezed from you this year. What are we at? $5 ,000,$6 ,000 has been squeezed from your existence this year so far. Total fee is$250 as well. And 24.24 % interest rate.

31:16Death. This is stupid. This doesn't make sense.

31:22Okay. First of all, let me be very clear. Before we get into the checking accounts, you're not a credit card person. And you know this. If you know this, chop it up, remove it from your auto pays, and remove it from your Apple wallet, but all that remove it. You cannot have access to that. You can't because you have access to it. You go and you spend all your bull eating out minimum once a day on it. That can't be a thing because even if you continue that bull, I hope you don't. Please go into a checking account where you're not going to be accruing interest on the new balance that you're putting on a credit card.

31:53You're not a credit card person. That's fine. The best majority of people aren't cut them up, take them, remove them from their accounts, pay them off, close the accounts. Done forever. Done. Checking account. And you were like, okay this is a pass through to pay for well actually i don't have your car statement so you have a car debt correct yes i have the information for it right here though so what's your car it is a 2023 toyota camry so you got a new car i love toyota camry but why'd you get a new car right now in our position it is september i before that i wasn't driving a car okay well i was driving a car but i was driving a car that my dad owned and then he gave it to somebody else Did you get a new car?

32:32Because at the time when I was...