Stupidest Guy I've Ever Met | Financial Audit

0:00Hey, this is Miles. I'm 23, based out of Austin, and this is Financial Audit. 23 okay you're younger than i thought you were so what do you do for a living i do um field auditing so i work with banks of different sorts and i go out to wherever they have their finances or wherever they're loaning money to making sure that the places that they're loaning money to still keeps that money where they say they are how much you make um probably about three to four thousand a month well is it three or four thousand dollars a month it varies depending on the gap oh so you're hourly uh it's piece rate so i get a base rate so it's 25 base rate sure and then i get per unit and then i can bid on top of that for mileage or additional time is that what hits your account or is that before taxes uh before taxes so what hits your account on average on a monthly basis it's 10.99 so that amount what 10.99 oh bi-weekly it's 10.99 so i know but oh Oh, oh, yes.

0:59Yes, yes, yes. Oh, my gosh. Subcontractor. Yeah, no, I got you. I don't know. I think I'm tired. I'm sorry. Okay. Are you setting 30 % aside for taxes? Yeah. Kind of. Yeah, the kind of is pulling some heavy weight because I don't see it anywhere. Yeah, I try to. Do you try to? Do you do it or do you not? I've been a 1099 for four years. I usually use my income from January to March to save up enough to get to my$4 ,000. $4 ,000 is what you've owed these last couple of years? Yeah, just about. After a lot of write-offs. Why do you do it that way versus setting it aside on a monthly basis just to make sure you're secure?

1:42What if you lose a job? Yeah. That's a great question. What if something happens and you get less hours, but you have to pay for all the taxes that came before it? What are you going to do? Yeah, I've always done it that way, so I never really knew another way to do it. And you said January to March, right? Yeah. okay where is that money now uh currently being built up from like zero yeah yeah basically we're halfway through that january to march yeah yeah so that's something that's certainly something to laugh at i mean i would be freaking out yeah taxes are due yeah do an iris likes their money like a month and a half or so okay so you sir are an interesting creature you we had phone calls with you i didn't but my casting people did and they were a little confused because lovely little conversations i'm getting my life together things are going well i'm budgeting things are getting better and i'm working hard then we have your documents your documents got sent your documents are right here in front of me i know your percentages that are being spent by the way nine percent went to debt payments but going out to eat was 16 yeah so why is why you tell us that you were doing well when everything in front of unless do you not know what doing well means do you not know what budgeting means do you not accurately budget how do you go about this i don't think i accurately budget because i do it all mentally so i okay well obviously that doesn't work yeah yeah and it's not been working i've always been wanting to put towards credit cards and then i get towards my time to pay them and there's like nothing left to so mental budgeting doesn't work right no what are we doing something doesn't work stop doing it and probably figure out something better how long have you been mentally budgeting oh the the four years i've been doing 1099 okay why not in those four years have you evolved beyond the thing you know doesn't work and do something that works uh i was making a lot of money before i moved to austin so i always had a lot of huge cushion to where it never really impacted my funding or my finances was the cushion the future income that came from the job or you're talking about a safety net and savings that you had on the side so i had about 30 000 saved up for a long time um like i did the six month pillow um that people always told me about and once i had that i never really worried about finances i was always like well if everything goes to i'm good where'd that go uh so you have 2 300 in savings including your investment portfolio which is nothing nothing yeah uh so i was making like 10 to 12 000 a month in pennsylvania Wow Which was great money I was every weekend I was traveling to a different city and just partying I was spending probably like Like eight or nine thousand a month On just partying because I had the money How are you?

4:33Okay And then everything else after the end of the month Because my especially my living expenses in Pennsylvania were less than a thousand dollars Why haven't I that job? Why are you down here? So when I moved here the job was promised to me the job was like oh we already have it everything lined up we're ready to go the same job but same job yep so i moved down here with that kind of uh promise um i got here a couple weeks went by nothing really happened with that and then a couple more weeks by nothing happened and then uh it just kind of devolved into spending that that safety pillow no because every every couple weeks he'd be like oh dude we signed these new contracts we're doing all this we're doing all that so i kind of and i was with that company for two and a half three years so i had a lot of faith in them um and then it just never came to anything so about january i my safety pillow was zero i went from 30 000 from in august to zero in like early january why were you okay that's that's a long time why didn't you try to go get any other job that wasn't this job that was promised to you because i think after a month of being promised a job and i haven't started the job i'm probably starting to look for another job in preparation for them to continue being a yeah i i kind of just was like it was a it was a friend as well so i kind of just kept holding holding out hope that it would come through and it why didn't you go back to pennsylvania uh so it was in the housing market so i was doing house inspections um after the housing market kind of crashed he lost a job as well kind of so he he started having to cut people out of the job completely and he started taking over territories that were other people's territories so he could kind of cut funds uh in the business and you would have been cut i might have been cut i'm not i'm not 100 sure um but i knew he was struggling he just never told me that until literally like a month ago that like the business is almost completely gone when did you get the job you have now i got this job in march march of last year so this two thousand dollars in savings you need to double it to pay your to pay your taxes hopefully the amount that you actually need but then what happens to your savings you have nothing what happens if you lose your job yeah i don't have a plan for that right now at all i've always believed that access to high quality data and analytics shouldn't have to break the bank that's why i'm excited to share that today's sponsor muumu has an extraordinary offer for traders.

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8:25Yeah. You do not have enough to survive if something were to happen. Yeah. I I have a big friend group and we always go out to eat. It's always kind of like almost an assumption at this point that we're just going out to eat. Yeah. Where we're going out to eat. Sure. And I get a little bit of like FOMO of like, oh, I'm going to miss a great conversation. I'm going to miss a great meal or you know what you can do, though, right? Hmm. Just shove some sandwiches in your mouth and go. And go to there. Drink some water. I mean, honestly, so I have a large friend group, too, and we definitely like to go out to eat.

8:58Yeah.

9:02This thing's crazy. They beeped like five times and then... That's not my car, I promise. Is that your plate? White man? No. Go get him. Go get him, Noah. Right at the peak, too. You have to pee? No, right at the peak. Oh. Like, really getting there. Yeah. We're getting some heavy beeping. and you can leave this in, Brandon. Either way. I just, I don't. Yeah, okay. So I, we go out to eat a lot, but every once in a while, you know, if something financially is happening in someone's life, they're like, oh, I can't go out. And that's fine. Welcome to life. Welcome to adulthood. Yeah. I think your future matters more than a simple conversation you might miss.

9:43Yeah. In my opinion. Yeah, yeah. No, I completely agree. good because you'd be a child if you didn't yeah I've been stuck in this loop of like oh I'm gonna I'm gonna save up and I'm gonna start eating at home and then I buy groceries for home and then training comes around and then we go we go right after it's not even like a I don't even think about it training like I do jujitsu full-time well I have so many people come on the show who do jujitsu like it's a it's a really popular thing in Austin it's probably like the mecca really Exactly. Yeah. Okay. You do that full time. Yeah. So I train twice a day, three hours per session.

10:22So like six hours. But you pay for that. No. So I teach classes and compensation for my membership. So it's about 325 a month. You work three hours a day? No, no. I don't work that three hours. I only do one class a week. It's about an hour a week. Oh, okay. And then 52 hours a year. That's a lot of time. I mean, I'm not necessarily opposed to it, but that is a lot of time. Especially when we sit here and we have a$5 ,245 balance on a card. Yeah. Like, I would jujitsu, sure. Maybe an hour a day. And then go work and pay off this card. Especially when all the money we have saved up is immediately going to taxes.

11:05Yeah. So I think I should probably cut back a little bit on jujitsu. It's just kind of almost like an addiction at this point. I'm all about it, man. I want you to be able to do it, like truly. I'm just trying to think about your time right now. Yeah. Because, I mean, you made a minimum of payment towards it, sure. Or you made a little more than that, but then you immediately went and spent it back on this. Now, this isn't an interest-free period, it looks like, until when? Until next month. F*** you. Really? Why didn't you try to do anything then? Your balance went up$45 If it's due next month What kind of behavior is this?

11:43Yeah I shouldn't be spending on that card Well no s*** Why are you? I still see the zero APR So I see it as like free money Buddy no offense but you're not stupid You just told me it's next month Yeah I'm sure you could see that too because you told me Yeah So why the s*** have you not done anything? I think I'm just kind of playing dumb on this part Of just letting it ride until i start getting apr okay now i don't know some cards do some cards don't sometimes there's back charges and interest if you don't pay it off oh you had a late fee you had a late fee but then you got it reversed yeah why why'd you almost why were you late uh so that one i i've only had that happen one time on this card i have an auto withdrawal uh to the card but it auto withdraws the day it's due and i guess it didn't auto withdraw in time so it never went through in time i'm not too sure why and then why are you going to the suit peddler and just getting things on amazon all this yeah on a card that you can't pay off that's gonna start accruing interest next month at 30 percent 30 percent yeah it's 30 death stupid percent and again you rent you rose the balance you put a payment towards it 290 that's not an insignificant payment towards this that starts making progress then you spent 295

13:18then there's the fee but it ends up being reversed yeah at least i didn't have to pay the fee twice buddy it's gonna be like 130 a month in interest 130 a month so now whatever payment you just made towards it you essentially in order to make that same amount of progress you got to put an extra 130 towards it on a monthly basis and then not spend anything yeah which i don't know if that's possible with you yeah i'm not sure if it is either oh come on i do not give a not give a future i do i that's why i'm starting to put money towards index funds and stuff so i think it's important for the long term like what index fund i i just started it like literally this what index fund uh m1 s &p 500 okay tell me the s &p 500 on average what does it bring back on average eight percent okay that's over the overall general market s &p 500 goes through about 10 tell me what's bigger 30 or 10 30 yeah so we probably put the money towards the 30 debt okay yeah i mean it's it's 20 more yeah so i it just it doesn't make any mathematical sense to be throwing everything into the market like that yeah so i i want to pay off this credit card completely this year i i don't have a unreasonable goal of paying it off next month i don't think that's even physically possible oh to pay it off next month yeah yeah i don't i don't think that's possible i want to pay it off within the year um so that's kind of my new year's how are you getting there though i mean you already again knew this was coming you talked to my producers and you're like yeah i'm budgeting i'm starting to do better and all this stuff again the balance went up interest starts to accrue next month yeah now you're telling me i want to pay it off by the end of the year correlating that to what you said before versus what's in front of us what is your plan what in your mind would have this paid off by the end of the year because there are no actions in front of us surrounding that no actions behind you surrounding that that make that an actual reality yeah so i want to get that you said 16 eating out i want to get that down to almost zero if not completely zero but that's not the only thing man and then you have just stopping and grabbing taquitos and actually just crap that doesn't matter it's an additional 15 yeah Additional 15%.

15:41Your transportation is a crazy 15 % as well. Groceries is only 3%. Unknown shopping, that's Walmart, Amazon, Target. You can get anything, so we don't know what it is without seeing the actual receipt. It's almost 4%. Subscriptions is 1%. That's not crazy. But again, that would have taken your debt payment from 9.7 % to 10.7%. Then your other large purchases are 5%. so that's selling out money and uh something happened to honda uh the honda was just uh oil change in alignment okay yeah for the car which that's fair i mean that fits in that fits in selling out we don't know what that was for but okay so food out total is almost 30 percent of my monthly in terms of that you absolutely do not need most likely is between 30 35 that's crazy i didn't know that i thought it was a lot less yep yeah i thought that was like maybe 10 or so what's your rent uh i split it equally what's your rent six uh my rent's eight eight forty truest the balance even though you put 168 dollars towards it balance only went down oh twelve dollars yeah twelve dollars why because sixty seven dollars of purchases not a crazy amount of money but you're making no progress on this what's your plan for this probably also pay this off by the end of the year how are you gonna do that with these actions so that one was inactive and the only thing that was an accidental purchase on that card through amazon i i i thought i clicked my debit card but it was my credit card that I clicked on that one.

17:30$4 ,286. $89.96. The minimum payment was$132. It's chunky. And then, yeah, there was the, I guess, accidental purchase with whatever you got from Amazon. What did you even get? Spats for Jiu-Jitsu. And then, yeah, a death $90 of interest was charged. Crazy. 25 % interest rate. It's ridiculous. okay members one this is your car what's your car what is your car uh it's a 2018 honda accord sport 20 car names are so stupid the way tesla names them just makes sense it's this model and it's long range or short range yeah do you want a piece of or an actual car well probably something that'll go 300 000 miles and not 150 that's true so honda 15 ,738 dollars and 43 cents interest 3.4 percent pretty good that is pretty good i had a friend go on like what does that even my friend worked at the honda um and he talked his boss and they gave me the lowest apr they could offer what's your credit score uh it's right at 700 on the dot okay yeah they do little special things but the minimum monthly payment of 547 dollars so again that is chunky as well are you trying to claim that as a business uh the payment i just to claim the depreciation i just claimed depreciation on that and what is the term of this loan uh it's a five year this is the statement that blows my mind this is insanity This makes no sense.

19:14This is the dumbest thing I've ever seen in my life. This is just with the... What you're trying to get to and what you told us. This sh** makes no sense, man. No sense. So let's start it. In the checking account is$2 ,000. Wonderful. But we spent most of the money that came in anyway. Because Wendy's In-N-Out Kebab Z's Giro Smirk Burnout. Smoking burnouts. You smoke? Yeah. Everyone on this show smokes. What's up with everyone who has bad finances also making bad decisions and becoming addicted to nicotine? Yeah, it's probably like an addiction spending and nicotine combined. Yeah, bad choices.

19:59McDonald's, Wendy's, Halal Hub, an Apple subscription of some kind, Juice Land, another Apple, Starbucks, Figure 8 Coffee, Pedroso's Pizza, bakery cafe kg bbq uh kg bbq some ales more barbecue spotify subscription tacos another apple bill thundercloud subs more smoking to your death wendy's uh well i mean that this is probably worth it and then some taquitos and mojo coffee apple halal hub what is this two austin can i think it's a convenience store yeah and nine dollars six dollars so i highly doubt you needed that by any means especially since you go to heb so yeah it's uh it's just a convenience store attached to a euro place okay so some stupid taquitos yeah twin peaks shooters taquitos a vending machine i think mojo coffee halal hub apple bill mcdonald's smoking away your life versace versace that was a gift congratulations gift yourself out of debt what i don't give a more coffee apple apple store that time 60 dollars uh smoking yourself into the ground iphone cities cities uh the payment plan for apple oh you're on a payment planned for your iphone yeah okay dang hot some taquitos bakery cafe iphone holy smokes mcdonald's more taquitos figure eight in and out in and out silver goat pizza tova more smoking jesus first this is so expensive too amazon highland lounge hulu subscription there's nothing good there anyway taquitos pedro's pizza and snowy village that's insane dude yeah that's insane and then you have $260 invested or$286 invested.

22:02So it goes even the point. I mean, yeah, I'm throwing things towards index once you threw almost$300 towards it. Yeah. That's not, that's not, you're not even putting in a debt in your retirement. Yeah. So I'm,

22:17your plan remind me that it was just a, I just want to pay off my credit cards. Yeah. But your plan to do how, uh, it's going to be that, I mean, cause a lot of the convenience store stuff especially is just, wasted income as well like i don't need to stop there so i mean that's 30 of my income i could put towards my credit cards versus eating out so i want to cut back a lot on that i know it's not going to go to zero but i'm trying to get it down to like five or so percent why is it not going to go to zero uh because i still want to be social enough in my friend group to yeah you can be again you can be social and like you you don't you're i don't know i feel like you're trying to justify the spending the money when it's money that you can't spend because that five percent will make a massive dent into your overall plus you're not even saving money for taxes so like you like i don't think you go and spend five percent on that i want you to spend 30 on funding but you do that after your max after you're hitting 20 into retirement after you've paid off all your debt after you have a fully funded emergency fund yeah i i just never did it that way i've never i've always had success paying taxes so i've just never done it that way yeah you have everyone has success in everything that they're gambling on until the second they don't that's true this is risk man you're just having extra risk on it again what if your hours get cut again what if like the economy is in a you know massive downturn what if it like you and your workforce other than like that brief little blue at the beginning of covid you've never experienced an actual economic downturn you don't know what it's like you're just coasting you're coasting on the idea that this is this is how it is that this is the world that we're in and this is what it's going to be forever you have nothing saved up for the rainy day and the rainy day comes yeah yeah like i had my rainy day and i'm glad i had those funds but well your rainy day was a little more of a choice you just sat on your for six months yeah i get that someone you over but you could have also been making some action like okay i get it dude's not giving me the job yet cool but in your mind he would cool it still hasn't happened yet so let's work until he gives us the job yeah gives us the job you know you gotta work until then but you were just sitting on your and on your savings that was terrible yeah that was one of my biggest financial mistakes i think i've made in a long time yeah ever probably okay so you're willing to cut back uh yeah i'm I want to start cutting back actually cooking at home and not just blowing my money.

24:49What do you think is going to be different though? I mean, you're doing it for the social engagement. So with the FOMO that you've dealt with, what are you going to be able to do that combats that? Yeah, yeah. So I like that sandwich idea actually. I might take that one. Just bringing sandwiches so I can at least get home without being like hungry. Well, I was saying eat before, but you can do that too. I don't care. You might get in trouble at some places. Yeah, yeah. Yeah, because I go straight from training to eating, and we don't finish training until like 8.39, and then I don't get home. Then you drive somewhere.

25:21Yeah, and then we drive somewhere. Eat in a car. Yeah, so I could eat in the car maybe or something. It's a sandwich. It's easy. And then I don't normally get home until like 11 every night. Yeah, I'm not trying to deprive you either. I really want you to, but more than anything, because your future matters, I want you to get out of debt and get a fully funded emergency fund because it's dangerous that you do not have that. Yeah, yeah. I think I'm just used to the spending I had in Pennsylvania, and I still mentally haven't broken that, like, I'll always have another 10K check coming. Wasn't that two years ago, though?

25:49Yeah, almost two years ago. Okay. Well, it's two years. Go on. Yeah. Welcome to the real world. So after what you're setting aside for taxes should be, you have a total income on average of$2 ,450 a month. Okay? Yeah? Yeah. Your minimum of the debt payers. Let's take a look here. No student loans or anything, huh? No. $731.90 a minimum monthly payment. That's insane. Your portion of rent, one more time? $840. And your portion of utilities? It's about$50 a month. What about internet? $30. What's your car insurance? $250. Ew. Yeah. I have an accident. Oh, really? Yeah. Thank God for USA. I got quotes around here once I moved here.

26:39and Geico tried to charge me$500. Your gas is insane, but it's probably for work. Yeah, it's all for work. $374.03, all for work. Now, I mean, you drive to Jiu-Jitsu and to places as well. $300 for groceries. $100 for the toilet paper fund. This is everything else you need in life, just everything else that is just going to be necessary. necessary any ongoing medical things you have to pay for uh no i do i do get like skin infections a lot from jujitsu so maybe how often do you have to treat this recently antibiotics yeah antibiotics and what happens when you become resistant uh we haven't got there yet so we're just gonna do you know people who have yeah yeah what happens it's bad it's bad what happens so you you start on orals um if you get on orals for long enough and it still doesn't treat it they take you to iv iv is very strong and it starts having like bowel movement problems stomach problems uh like acid reflux it's just in general very bad for you and then that bill probably gets very expensive yeah so i'm having become resistant to the iv version uh people do become and then what uh you kind of just keep throwing ivy at it why not find a sport that doesn't like ruin your skin yeah but it's not as fun you can choke people out like no that's a weird thing to want to do uh but also huh break people's arms legs you can do you can do pretty much anything you want to like a normal human yeah harming people that sounds fun yeah that's great uh and infected skin yeah that also does not sound fun no it's not i have i have a staff infection right now actually what's that uh staff infection it's uh it's something that lives on your skin it eats at your skin if you don't take care of it where is it on my leg show us it's under candy it's teeny tiny i see the redness yeah so are you getting treated yeah it hurts a lot uh yeah i'm on orals right now what's it from like specifically so it's just exposed skin to a mat and then usually the like the worst ones are when you have cuts open so i had a cut on my leg and it got into the cut oh gosh but i've seen when they don't get treated it creates like a almost like it looks like a worm or like a bullet went through you so it's just like a hole into you yeah those are pretty bad yeah so what should we set aside every month it's only like i have insurance so like probably 40 bucks are you willing to show us a takedown on my producer can't do it to you no i'll do it to him yeah yeah you will okay you said 40 yeah about 40 only if he consents he consents I'll say to the end of the episode and you'll see uh Noah who so many of you love can't get blasted oh yeah so if you're actually setting aside money for taxes you wouldn't be making it now I know you have some good months which must barely let you survive but no actually you're not because the credit card debt has gone up so that I mean that makes sense it makes actual sense how the credit card debt has just continually been going up.

30:14Because what you need to survive, man, is$2 ,715.93. Again, if you're actually adequately prepared for taxes, you have like$2 ,450 left on a monthly basis. Yeah. So, again, I'm good with you doing the jujitsu and all that stuff, but how many hours a week are you working right now? Probably about 15. 15 yeah you what is this why if you can't pay off a credit card why are you only working 15 hours a week what are you you're not a baby what are you doing yeah i i've had it work for me so i just but it's not you're building up debt you're building up debt it's not working it's not working it's obviously not working right yeah okay so why 15 hours a week that's uh that's just you just not giving a this is you being a child oh i actually had hope for a second and i still kind of do maybe i don't know this is oh okay okay okay 15 hours a week man i thought i was sitting across from someone he's willing to cut back on his and even if you do man you're making like you're not making enough and you only work 15 hours a week and you were willing to you talked to our producers and said you were on the right track on the right track on the right track okay cool cool on the right track but you're building up credit card debt if you're building up credit card debt in order to survive i think you would need to work maybe 20 hours a week 20 hours a week would that be crazy no no why are you only working 15 you're 23 you're not 16 yeah i i've worked really long hours with really low pay and this job's pretty high pay for but you're not making enough so why are you not working more even at another job i don't give a 15 hours a week is nothing yeah it's kind of you're retired it's it's close to the top of what they offer um there's only a couple other job other job yeah so that's kind of where my training comes in i just train for the rest of the time of the week yeah but i don't give a your training it's not providing you anything physical fitness yes but longevity financially no man like you're gonna die under a bridge broke but you'll be fit yeah great yeah why are you only working 15 hours a week i need some insight into your brain and how it's operating that's just the way i've been working for the last four years congratulations but again it hasn't been working so why have you not addressed the situation i just don't like working a lot of hours well there it is so you're a baby yeah okay are you going to man up uh if it means working working more than 15 hours now i'm happy working 15 hours maybe 20 i'd work 20 oh my gosh what are you do you know how hard people work out there man and they're not even making it and you have the ability to work half as much as them and actually live a good life and you're not even willing to do that well it's the most immature thing i've ever heard in my life i mean i've worked 120 hour weeks congratulations you're working 15 right now i don't give a what you've done yeah man i was just never happy so yeah i think there's a little bit in between 150 and 15 for sure but you're not willing to work over 15 not at this current job no i don't know an other job you get a second job Like I feel like I run out of time in the day You don't Because you're spending it all on fun And hanging out with friends Going out to eat Breaking people's arms That's what you're doing That's what you're doing Not running out of time You're just spending your whole day having fun 160 hours 168 hours in a week You're working 15

34:12153 hours that is available for you to do Now Now I want you to sleep eight hours a day. I want you to sleep eight hours a day. I'm not an evil person. Like, you know, 97 hours left in a week that you're awake. 97 hours left in a week that you're awake. And you won't work one more hour? One more hour? Why aren't you willing? No, no, no. Let's just say even for the job you're in right now. Even for the job you're in right now. Why are you not willing to work one more hour? For the job that I'm in now, I work most of the hours they give me. I only decline the jobs Maybe five or so jobs A month That could be a lot though No those are the jobs that are They won't pay me any extra I'll only make like ten dollars an hour for the job How many hours?

34:59Maybe ten Ten dollars an hour Per job How many jobs? You said six That's six hundred dollars Oh Congratulations you now have enough to survive $600 is a lot when you're$300 away from being able to make your bills So again, this is the most childish immature thing I've ever heard Maybe the most childish immature thing that's action or belief or opinion Or person that's ever been on the show, you saying that I was having hope for a bit, they were probably having hope for a bit And now you've destroyed everything I just always, I've been liking working short hours, short weeks. I know, but you can't survive.

35:51Yeah. So congratulations. Work those extra hours. Yeah. Yeah. That makes sense. Yeah. So you will do it? Maybe. Yeah. Okay. Why maybe? I still like training. I'm pulling teeth here, man. I still like training. I don't give a **** what you like. Do you like surviving? Do you like being able to retire? Do you like having a roof over your head? Do you like not having debt? That's hounding you and keeping you up. Yeah, cool Then just do a couple extra hours of week 60 hours divided by four It's an extra 15 hours a week and you're working 30 hours 30 hours people the average American would dream of working 30 hours a week and actually making it but even if you work 30 hours a week You have an extra$300.

36:32Well, we still need to set more money aside for taxes. So actually let's see 600 actually have an extra$420 a month, which means you actually only have an extra$120 a month, which means you need to start throwing that towards that, getting a fully funded emergency fund. Even if we were doing minimum payments until it was paid off on the Honda because it's such a low interest rate, you know, we don't like the term. So I would probably boot it up to like$600 a month,$650. But either way, either way, either way. Obviously, we can't afford that. But$150 extra left on a monthly basis. You need a six-month emergency fund.

37:00In your case, that is going to be... uh well actually it's gonna be about twelve thousand dollars so twelve thousand dollars plus the four thousand two hundred eighty nine dollars you owe on one credit card and five thousand two hundred forty five dollars you owe on another card and you only are willing at the no no you're not even willing to do this i'm gonna have to convince you to work an extra 14 hours a week not 15 hours a week but okay let's say i'm even able to convince you to do that even if you do it takes 143 months months to have a fully funded emergency fund one of the most basic things you can do in life to be uh in a sound financial position and one of the most and actually paying off your cards 143 months also known as 12 years 12 years yeah that's hilarious that's crazy you're 35 35 not having a single paid for fund 35 finally getting on a credit card debt finally having an emergency fund assuming there's no economic issues nothing happens in the industry that you're in nothing happens in your life no injuries no nothing from jujitsu maybe you get you know you can't see anymore so you can't drive i don't know you never know what can happen it's a crazy thing you're talking about basically killing people so i know crazy things can happen man i that's unacceptable how is that acceptable to you the the extra work that's if you double your hours from right now double your hours from now it takes 12 years to pay off your debt and have a fully funded emergency fund you're not even willing to do that so how is this acceptable in any way whatsoever for your life i'm disgusted yeah i've been surviving so far so you're not yeah but people confuse that you're not you're putting it all on a credit card yeah you're kicking the can down the road you're not surviving you're literally putting your survival on a debt your debt is a survival and that comes back and it's going to take away that surviving yeah because you have to pay it back you're not surviving from your own life you're surviving on someone else's money the bank's money truest money Chase Freedom's money.

39:15So 12 years to double my workload. That's if you doubled your workload for 12 years and didn't have a single, you didn't pay for fun once in 12 years, which is impossible. Impossible. Obviously for you, beyond impossible. Yeah, for sure. Yeah, that's hilarious. Yeah, that's a lot. I don't really know what to say to that. Change something. are you not just who am i talking to right now i thought i was making more than that you're not setting aside money for taxes yeah now yes you're gonna deduct things you're gonna do this you're gonna do that and hopefully you're doing it all legally i don't know probably not close enough yeah i don't know if that works i don't know that was actually really sad and disappointing to me man you're 23 you have so much potential you don't understand with your income for the hours your work you have so much potential and you are throwing it all down the drain you're gonna look back you're gonna look back and you're gonna be so embarrassed and sad and upset at yourself and pissed off at yourself that you did this when you're gonna have almost nothing in retirement by the time you're 35 yeah you're gonna look back you're gonna have seen that you can have a couple hundred thousand dollars saved in retirement by then after count some compound growth with your income if you put in actual hours yeah so so i should double my work and just that's a minimum man yeah that's obviously not enough it takes 12 years if you double your work it takes 12 years to have a fully funded emergency fund to pay off two credit cards that doesn't even count in paying off the honda but the honda will be automatically paid off by then through minimum monthly payments yeah might take a little shorter because all of a sudden the honda payment goes away after five years but probably four from now whenever you got it you know but i'm three years in okay so maybe that accelerates it to 10 years that's 10 years of doubling your income yeah that's not enough no you need to triple your income yeah like easily what do you mean like that i wouldn't want to be in debt for 10 years for sure yeah but you're also not willing to work more than 15 hours a week this is the good case scenario where you double that yeah which one's more important to you like Worker debt?

41:28Probably debt. Okay. So you're working more than 15 hours a week? Yeah. I'll start looking for a new job. You're working more than 30 hours a week? I wouldn't say over 30. Buddy, it was 30. It was 30 that got you to 10 years, and you just said that was unacceptable. I don't know what else to do past 30 hours a week. What do you mean? I haven't worked that in so long. I don't know how that would be functioning. Be a f***ing adult. Yeah. And do it like the rest of us. That's true. We all got s*** to take care of. Why are you special? Why are you this magical being? Who are you going to fall back on?

42:05Yeah. The rest of us is society because you're choosing not to work? It's not fair. That's true. Yeah. So what would I need to make monthly to make this feasible within the next, like, five years? Oh, my gosh. I just forgot. I just forgot until this exact moment that you said that one card would be paid off by the end of this year Yeah That's not even possible because you're making less than you need to survive What was your plan? Your plan didn't exist It was a fantasy I thought that food would take care of most of it No, I don't even have going out to eat in your budget You can't afford it Yeah What kind of dream world are you living in, buddy?

42:42So how much would I need? To take care of it all in five years? Yeah Alright, let's see Okay, let's see. We're doing this very basic version, not assuming extra minimum monthly payments once they're paid off going towards some of the debt, but we're also not taking into account the interest that's occurring on the debt. We're going to just do general thing. You're actually going to go through our budgeting program, and that's going to give you a more accurate payoff. We have a payoff calculator, avalanche, or snowball. You're going to go through the program and build the actual best budget that you can.

43:15Okay. And while I do this math, by the way, let me thank you for being on the show yeah you're disappointing the f*** on me and I'm a little bit embarrassed I'll be honest for you but thanks for being on the show because it's an educational resource for many people out there and I really hope I hope this is what changes your life because the path you're going down is very destructive yeah I want you to be on the show and if you want to be on the show link in the description below you can apply you can get your hammer financial score down there for free as well by the way pretty fun okay I need to do this yeah Thanks for having me on because I didn't know how bad it was.

43:52Well, let's say, again, this is basic. Let's say your needs don't increase, but your minimum needs over the next five years, you'll need$162 ,955. Okay. I'm trying to think of how I want to do this math. Am I stupid? Am I being stupid? Is there like a radiation of stupidity at this table? Yeah, probably.

44:13Sorry, that was mean. It's kind of funny, though.

44:19Oh, I am an actual idiot. Okay, I get it. You'll need to throw an extra$358.90 a month towards the debt and eventually towards fully funding your emergency fund. And that, again, does not take care of the car. What's a fully funded emergency fund? That's six months? Six months of your living expenses, yeah. You need to bring in, post-setting money aside for taxes, minimum$3 ,073.90. Minimum. After taxes. After sending money aside for taxes. That's 30 % you said? You said 30 % for taxes? That's a good conservative number to put aside for taxes. I'm self-employed. Yeah. Guys, it's a new year and you need to make your money work for you.

45:11You can do exactly what I literally do right now and put my money in the best high yield savings account. So far, I get a 4.6 % yield on my money. And I also took advantage of the bonus of up to$250 when I signed up. You can start 2024 off amazing by doing the same by going to the link in the description below. This is not taking this. This is the perfect number to get there. But that's also five years of not literally going out to eat once, not getting a single cup of coffee once other than what's in your grocery bill. it's without having any paid for fund for five years that's without your income going up which means you can speed it up by your income going up yeah um but that also isn't taking account any rent increases you know rent is in a slump right now in austin but over the course of the next five years you never know where it goes rebound uh this is without utilities going up this is without the cost of food going up let's say we have another massive battle of inflation um you never really know sometimes when inflation hits you know we get a spike and then we trail and then we get a spike again.

46:09That has been seen all throughout history. We're on the trail down. I'm not saying it's going to happen again, but let's just say if it does, then these costs are going to increase. Yeah. But this is like the literal, like in the most basic way, the exact number that has to come in post taxes. Yeah. So like probably$4 ,000 is a good goal to shoot for monthly post tax? Yeah, basically. Yeah,$4 ,000. $3 ,996.07. Yeah. $4 ,000 a month. Yeah. So increase my money and stop spending you're not very far from that man yeah you're not very far from that that's for you doing it in five years why is again this is two credit cards in a six month emergency fund so much can happen in five years why am i even entertaining the idea that five years is acceptable for this this should be a two-year mission should be a year and a half mission you are young you have a lot of energy yeah you're fit you're healthy go out there and work like a mature individual that has something to take care of and you have something to take care of i need you to pay this off in a year and a half and you have a fully funded emergency fund by then which you are totally capable of totally capable of in a city like austin man yeah you're gonna be working long hours absolutely you're gonna be sacrificing for a year and a half but that sacrifice for a year and a half has given you decades and decades and decades and decades of your life for amazing prosperity and living that fun life that you want to live and having the ability to retire at some point yeah five years is unacceptable you find five years acceptable not acceptable but more realistic than the 12 years why is that realistic i've had people on the show with much worse situations who are able to get out of debt quicker and have paid off the amount of debt that you have by the time they've uh since they've been on the show we sent out a survey we're getting responses yeah you're just being a child yeah well compared to the 12 years that was initially well 12 years is beyond unacceptable that doesn't mean this is good uh i don't want to get shot i know being decapitated is worse doesn't mean i still want to get shot this five years is still really bad yeah just because it's better than 12 doesn't mean i find those something i want it to be by any means whatsoever yeah i still my goal still is by the end of the year yeah but how do you do that though you're how many hours are you willing to work a week oh it sounds like i need to work a lot more well no how many hours are you willing to work a week because that's what your main issue has been is not willing to work yeah probably an additional like 15 to 20 from where you are now yeah remember are you okay easy kill okay let's not say insulting things shall we um your brain yeah did it understand what i said what happened if you're only working an extra 15 hours a week yeah 12 years okay you just said you're only willing to work an extra 15 to 20 hours a week i i would find you said that is going to meet your goal by paying this off by the end of the year well i think everything past that that extra 15 would all be straight to the credit card though no it better be yeah but you said cap 20 yeah i still think 20 i i don't know what number we're going off of for hourly wage i'd be making i'm going off of your current oh so so that'd be like that'd be that'd be like six thousand dollars right what you told me you would get if you work those extra jobs that are offered that you decline oh okay okay yeah i would which is all that's available right in terms of your job for that job yeah i i would try to find a different job paying you'd have to get another similar yeah at least similar i'd try to shoot if i'm doing 15 hours a week extra from another job i try to shoot for another 2 000 a month you need to make 22 hours an hour you hit that fourth 40 hours a week 40 hours a week which isn't even not even what you want to do so what are we even doing what's the purpose of any of this what actually that's a great question that's a great question Thank you.