The Most Insane Thing I've Ever Heard | Financial Audit Follow Up

0:00Modeling and acting is my passion. You know, it's something that I have a passion for. And I know passion doesn't pay the bills. If I had an emergency, if I had like an emergency, like God forbid, if something happened and I had an emergency, I probably wouldn't have enough funds to cover it. But you give yourself an 8 out of 10. Where did you learn this from? Is this like a TikTok thing? No, no. From Chase? Yes. From the one who wants to make money off of you for keeping your balance? Where'd the$3 ,000 go that you made this year so far? um the three thousand dollars i gave one thousand to my mom i gave why in our like in our culture okay here's a uh a character from a south african president speech that i just made up from chat gpt good evening it's absolute it's an absolute joy to stand before you tonight not because it's required by my job description but because there's nowhere else i'd rather be how'd you do the work My accent?

0:57What was one of the... My dams on distress? One of my lines. No, I played a slave. Oh. Adeline, welcome back to Financial Audit. Happy to have you on here for a follow-up. So, we uploaded you on May 4th, 2024. You're 18. Or you were 18 at the time. Are you still 18? Yes. Wow, when's your birthday? March 3rd. Okay, wow. So you just turned 18. at that time okay uh model actress student so you're trying to do a lot of things and you know it's interesting especially back then we had a lot of people who were kind of in really trying to get into the world of acting that's it's kind of difficult um especially when you're trying to balance that with school um the majority of your money came from instagram posting ad bands and you estimated that you made a thousand dollars this year which is impossible to live on but 18 at the same time you know it's not it's a different place in life i'll be honestly i'll be transparent we actually don't allow people like you to come on the show anymore people that are just like right out of high school because there's like nothing to even see um and people that really don't have a job but you know you were and we're happy to have you a part of our guest family and we're still gonna uh go through this just like normal uh but you know it's just an interesting thing because sometimes it's hard to deal with so um you know without a lot of things that have happened yet can you tell us give the guest give the audience give myself an update of where life is looking what it's what life has been like since then well um i ended up getting a job and i uh it's kind of like thank you i got my insurance license as well uh the job is basically signing people up for free health insurance it's with the ACA um so that is really yeah so that is really helped me like kind of start my journey to finance stability um and so i started budgeting more saving i invested um what's it called i invested a thousand dollars like at once because i mean that was you know what i had so i invested that and i did see a small like um return i think but the small yeah increase you know it wasn't anything too crazy a lot that i could like go buy a house but it was you know a little bit of an increase so yeah um i kind of was working on uh saving up not spending as recklessly as i was before um because i still live with my mom i'm not paying for anything so that was like a bonus like i did like strongly consider getting my own apartment but then i was kind of weighing pros the cons would it be worth it and it wasn't worth it so i decided you know stay with my mom to not pay by it just yet i kind of like save up that money that i am like jane what's our school situation currently um i graduated high school i don't at the time i was on the show i don't know if i graduated yet but i graduated high school yeah i graduated already and so now i'm just kind of working saving up before i throw myself back to you so what is the situation around modeling and acting oh um what's uh september i was able to do my very first trip that was not financed i was able to pay the full thing down yes how much um it was i think it was a little i think it was like 15 000 15 000 16 000 but this included the flight where'd you go milan italy why for what for milan fashion uh how much did you make um what's uh i think i made around 300 400 however however the purpose of me going to milan was not for was not for compensation it was to network those connections i got to work what everyone says for everything possibly but in this industry i think we touched on it a little bit last time but in this industry unless you're a supermodel you're not making a lot You have to invest a lot before you make up.

5:26No, I know, but I'm just trying to think about Focus of Life. $13 ,000, you said? Yeah, around that,$13 ,000. That's an insane amount of money. $13 ,000 could become easily over$100 ,000,$200 ,000 by the time you retire. I'm not saying we can't do stuff like this, but$13 ,000 for your current income. I mean, again, the last time you came on the show, you made like$1 ,000 at that time. What is your current income at the ACA? i'm not sure honestly i would have to how do you not know what you make oh okay when did you start i started working uh probably like two months ago at the job how do you not know what you make in two months what do you mean what's your hourly income oh that's what you're saying well first it's not based on hourly it's commission days and so oh yeah so um and i thought you were asking for like my annual salary so but i really don't know i have to calculate do you have a salary no no it's commission i get paid weekly and it honestly brings in but it can be anywhere from 300 to a thousand every week okay so if we averaged it out at like 600 would that feel right um i would say more like 500 okay so you make about two thousand a month yeah okay that's still hard to live on i mean that doesn't really get that you're under thirty thousand dollars a year on that case that's like you wouldn't be able to be independent on that i'm not expecting like crazy at 18 um but as we're just thinking about direction for life and what our plans are you said you want to kind of get some things under control before you throw back yourself back in school wait also you spent practically practically three-fourths of your annual income on one single trip like why don't we go to i i understand milan a huge thing but maybe we do smaller networking first and let's just to to make it make sense it's it's so expensive for where you are in life that is crazy so with this job um the more you grow the more you learn and the job the more money so yeah with this job like there's potential it's uncapped i'm i'm still kind of learning kind of beginning but the more i grow in the company the more money i can make um i know people in the same company that are making good good money so i'm learning from them networking growing building and so like i said this is the beginning to my finance stability of course there's still more things in the side and then as for the melange the melange for me was a hundred percent worth it like i said it's not just like from a financial standpoint as well as when i went it wasn't just for networking it wasn't just for modeling i also got to meet people and it was an amazing experience so i know it was an amazing experience and it feels worth it to you right now.

8:30I'm just trying to math it out. Let's just say it was a$5 ,000 European trip, which wouldn't actually be insane for a European trip. The price that you're saying is crazy, but let's just say$5 ,000 European trip. If we're talking about that, you know, one time, you know, I made money and before I start putting my head down, like I would have been okay with that. We're talking$13 ,000 when you make$20 ,000. That's insane. That's insane. It's that number specifically. You know, I would have encouraged you to go like a thousand model shows in New York city which you could afford but you know with 13 000 you could go there a million trillion times so okay but the credit card's like sorry really quick i was gonna say i did go to new york before i went to i'm sure you did because it was fashion eight got invited to new york milan a couple other shows but i kind of prioritized and so i did milan and work and new york i actually did make more money than i spent i spent like two hundred dollars for like a ticket and i was able to get a very very cheap air movie through the fight so honestly i made i think more than double more than double what i paid i made sir well that's great i mean i obviously encourage the making money but i'm okay with spending a little bit of money too depending on your financial situation if your financial situation is the same as last time then obviously i wouldn't encourage it because we had chase freedom rise 468 dollars a firm 1200 another firm that you couldn't figure out the balance of or discuss 1 ,600 for another firm owing to your mom, 700, owing to your uncle, 500 family, friends, 700, another firm, 226 uplift, 297, Amazon 83 price line, 167, um, that you had just paid off actually.

10:14And then something for a$793. So all of that together, if your financial situation, similar to that, well, I encourage$13 ,000 spent. No, of course not so let's take a look at where things are today okay i'm not seeing a debt at the top damn i paid it off so every single debt there is paid off yes that's incredible were paid well done when did you when did you pay everything off um i paid them all off at different times like i didn't do it all at once i paid it over time um so i it should say on the on the document the day that I paid off the last one or no? When it comes to getting your finances back on track like our reoccurring guests, every little step matters.

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12:39That's highcapitalize.com forward slash financial audit. Don't let your retirement money stay stuck in the past. Take charge of your future today. Big thanks to Capitalize for sponsoring this episode. Now, let's get back into it. Coming from your checking account, you mean? No, from the Affirm. I don't see. Maybe I'll see as we go through this. So in this checking account, let's see. We had a balance. It looks like at the start of$269. And we ended with$2 ,170. So that's great. Lots of transferring back and forth. Some Walmart stock. Are you buying that in here? in that checking account yeah but that was metastock why are you buying individualized stocks why are you buying like metastock metastock metastock what are we doing that was kind of me like experimenting and kind of why experiment why not just do what works did you take our investing class no i didn't i didn't see it no i looked in every damn time okay we're gonna get you connected with those classes take it take you just need to start we'll identify your investing profile and then what investing strategies are proven around that investing profile okay because you're 18 you literally have the best chance to retire as a multi-millionaire compared to anyone that's been on the show because you have time on your side but you need to do it right you need to start right and buying individual stocks might not be the play for that uh it's not very diversified and it's very risky um okay this is just transferring things classing acting class goal okay amazon what am i seeing here paid to date oh remaining okay yeah i saw that one paid off oh and then the asap tickets that one was paid off great okay very cool also there is uh no chance of get also there is no reason to get all our finances together if our house burns down and you die so change the battery on that smoke detector oh my god it is beeping on my ears i'm so sorry i think i've become like like death to your sake but yeah what are all these purchases with step com step.com isn't a chase account yeah step is um like it's a banking account that's helped me build credit it's yeah it's like i said oh can you sleep with that thing i honestly i can't hear but again i have earbuds in so like these are noise cash i can always it cash apping out a lot okay uh we locked your online access to protect you this is from something else what's this letter you sent me oh um my chase account i don't know if i should talk about it on here but my chase account got hacked uh yeah i mean i don't think that's necessarily bad to talk about unless uh i keep your keep if there's anything crazy definitely keep it secret but uh it got hacked okay so is chase dealing with this dealing with this with me you said your chase account got hacked yeah like they my account got hacked and i didn't have access to it because i i know that i have to send the documents and stuff so i wasn't able to log into my chase or anything i had to call them and so they emailed the statements instead or not you know um mailed the statements and that's what i was sending that's fine is chase dealing with the hack though oh yes yes yes there there are they have you have you locked your credit um my credit account is fine the one that was affected was my my checking well yeah but how'd they get in like maybe they know your social security number or something i would lock your credit i'll send you information on how to do that afterwards okay um this is locking your credit i them not being able to take out credit in your name yeah both of you can send me absolutely we will okay

16:44man dude nothing's labeled what's this amazon ASAP tickets those are some of the is this saying they're paid another page saying something's paying off okay well that's all I have okay so you're telling me all these credit cards the debt to what about the debt to the family oh the debt to the family I feel like that was a little bit of miscommunication um number one when i got my first paycheck i did like give my mom and my uncle both i gave them out of my paycheck but also when we like when i went back to talk to my uncle it wasn't something that was like literally you owe me x amount it was more like because i was giving my uncle money and it's not like it's not like okay i'm giving you 250 i expect you to pay me that at friday the two percent interest five percent and just whatever it's like hey i really need 200 can you give me 200 yes i'll send you 200 then i really need like 300 kids so it's not like like is everything settled yes yes okay okay perfect cool so how much is in this investing account because i didn't see that specifically was it was a thousand like i put a thousand into it and then it was like when i did end up taking it out um but it was like a thousand why did you take it out i mean honestly it didn't seem like it was gonna get more than that and i was thinking that you mean more than that if you're if you're if it okay if it wasn't what do you mean the s &p 500 has literally had its best decade this millennium if i'm not mistaken or which the s &p 500 in general and obviously again if you take the investing class so uh the s &p 500 is up almost like 30 or something crazy so that would have been like$300 a gain and then it would compound normally like 10 % if it followed historical norms so that$1 ,300 would gain 10 % then 10 % then 10 % then 10%.

18:40This is, it's a time thing. You can't take investments in and out. That needs to be your big thing. Now, first of all, what's in your savings? Do you have an emergency fund? I do have an emergency fund. How much? You don't need a screenshot, just how much is in your emergency fund? $409. $409? dollars yes for my emergency fund that's emergency like i can't yeah yeah and you spent 14 000 going to Milan when you don't have an emergency fund Milan you get an emergency fund first i need you to save up 10 000 hours as quick as you can that's your next thing you're focused on so listen you basically have no expenses and you make 2 000 a month so which was the kind of the target we were looking to get uh 2500 after taxes would have been ideal but even 2000 hours a month let's say obviously do that do that for the next five months call six months after expenses you know because you don't really have expenses right now i'm sure you have gas and stuff right but that's pretty much it my phone bill but it's yeah it's nothing major okay cool so let's just call it six seven months put everything into a high yield savings account get ten thousand dollars because that'll cover once you move out that'll help cover if like you get behind like you like lose a job or something you need to pay rent and living expenses and food and groceries it covers if a car breaks down it covers if you lose the car and you have to go get a cash car so there's a lot of different things that you need that 10 000 hours for and we don't go to milan until we get that we don't go on another trip until you have 10 000 hours this is a basic minimum safety net now once you have that you can budget in those fun things because here's the here's the fun part any income that comes in to you who doesn't have any needs right now basically just cover your little bit of needs put 20 % to investing.

20:22Once you've put 20 % to investing, you can put the rest of your money wherever you want. You can blow it on anything. I do not care. I need you to hit 20 % into investing and go through our investing class to understand what to do with it. So with that, you know, cause I, we don't give recommendations cause the legal things around certifications and stuff, uh, you know, just go through the investing class with that. Once you're hitting 20 % forever, you're going to retire a multimillionaire because you have time on your side. Your best wealth building tool is time, but you actually have to be in the market and take advantage of the compound growth and change the battery on the smoke detector.

21:02Okay. I got you. Well, I got me. I'll be stick. Yeah. That's what I do. You need to get that six month emergency fund, $10 ,000 in your case. It's either six months or$10 ,000, whatever one is higher. So for you, it's$10 ,000 and then 20 % to investing forever. until you're retired and you can blow your money on whatever else until you have needs. Once you have needs, we try to cap it at about 50%, but no matter what, you are investing 20%. So if you need more to your needs, let's say 60 % goes to needs, you're still investing 20%, but that only gives you 20 % for fun, but you don't take away to put more into fun from investing.

21:42You take it from trying to cut your needs, not in a dangerous way, but getting to places maybe more affordable. if it's apartment that's you know sucking the needs a little bit more okay or getting a cheaper phone bill whatever it is those are the things we start dealing with but we do not take from investing unless we have bad debt and no emergency fund you don't have bad debt anymore but you don't have an emergency fund so we're not investing yet we're putting it all into the emergency fund so that so is what you do okay go ahead repeat it so first step is going to be save up 10 000 in the emergency fund and then start and then start investing 20 yep 20 your income every paycheck 20 goes goes away to investing you should start with a roth ira roth ira write that down yeah i actually already there you go that's perfect that should get you close to max i think on a yearly basis just about okay any questions um no not really any questions but i did have like one quick comment uh someone had already told me about getting a roth ira account and so i was trying like i i looked it up on dp and i was trying to sign up but do you think it's better to go in person or is this something that i have to do no uh no you can do whatever you know it's easy as online it's really just opening an account and what that account does is it's a tax form at the end of the year essentially really um but you're going to be paying taxes on the money you're putting in but it allows to grow it tax-free so when you do take it out at starting at 59 and a half you're taking it out without having to pay any taxes so really it's just an account that kind of shields you from future taxes so it's super chill honestly fidelity is a great place to do it you can open one with them as well um so it's super easy takes like two seconds it's 18 all right listen you're still 18 times on your side take advantage of it do not this up okay you can create generational change

23:48okay and last time your hammer financial score let's see we had it at a one out of ten let's revisit budget you know honestly it wasn't fine you weren't blowing things too much at least on this last month of milan trip stupid but if it was that month it would have been different but just looking at this month it wasn't crazy money used to go to the emergency fund and it's not so we're going to deduct from there it's going to be six out of ten debt there's no debt 10 out of 10 well done emergency fund you know building blocks one out of 10 retirement building blocks well you actually removed everything from retirement right retirement you mean my uh investing my investing yeah zero out of ten real estate zero out of ten all right let's see

24:33you've moved up from a 1 to a 3.5 out of 10 well done you're on the right track get that emergency fund up literally if you had that emergency fund right now if you had the emergency fund right now you'd be at a 5.5 out of 10 you would have gone up two points so get that taken care of okay and change the battery